Almost 500 tariffs will be abolished from July 1, saving Australian businesses an estimated $30m annually in compliance costs.
The move will eliminate 14% of all Australian tariffs and streamline $8.5 billion worth of trade each year.
Tariffs will be eliminated on a wide range of imported goods including toothbrushes, hand tools, fridges, dishwashers, clothing, and menstrual and sanitary products.
Federal Treasurer Jim Chalmers said while workers and businesses were not protected by these tariffs, they still have to navigate the red tape involved and bear the costs of complying with the tariff regime.
Mr Chalmers said after successive trade agreements, most goods are now imported duty free. This means that businesses spend time and money proving their imports are eligible for existing tariff preferences and concessions, a compliance cost they often pass on to consumers.
Examples of products subject to the removal of the five per cent customs duties include:
- Washing machines with annual imports worth over $490 million, raise less than $140,000 in revenue per year.
- Fridge freezers with annual imports worth over $668 million, raise less than $28,000 in revenue per year.
- Tyres for agricultural vehicles, tractors or other machines with annual imports worth over $102 million, raise less than $10,000 in revenue per year.
- Protective footwear with annual imports worth $160 million, raise less than $112,000 in revenue per year.
- Toothbrushes with annual imports worth over $84 million raise less than $22,000 in revenue per year.
- Menstrual and sanitary products with over $211 million worth of annual imports, raise less than $3 million in revenue per year.
- X ray film with over $160,000 in annual imports, raise less than $200 in revenue per year.
- Chamois leather with $100,000 in annual imports, raise less than $1000 in revenue per year.
- Pyjamas with almost $108 million in annual imports, raise less than $120,000 in revenue per year.
- Fishing reels with over $50 million in annual imports, raise less than $140,000 in revenue per year.
- Rollercoasters with over $16 million in annual imports, raise less than $40,000 in revenue per year.
- Dodgem cars with over $2 million in annual imports, raise less than $15,000 in revenue per year.
- Ballpoint pens with annual imports worth over $57 million, raise less than $95,000 in revenue per year.
- Toasters with annual imports worth over $49 million, raise less than $1000 in revenue per year.
- Electric blankets with annual imports worth over $31 million, raise less than $5000 in revenue per year.
- Bamboo chopsticks with over $3 million in annual imports, raise less than $3000 in revenue per year.
Mr Chalmers said the tariffs identified had been selected because their abolition would deliver benefits for businesses without adversely impacting Australian industries or constraining Australia in sensitive FTA negotiations.
A full list of tariffs to be abolished will be finalised and provided in the Federal Budget in May.
