Australia is scrapping “nuisance” tariffs on 500 items from July 1, which will see consumers pay less for toothbrushes, shoes, feminine hygiene products and even bamboo chopsticks.
Electrical appliances are also getting cheaper, with washing machines, toasters, electric blankets and fridge-freezers also on the list.
Treasurer Jim Chalmers, Trade Secretary Don Farrell, Agriculture Secretary Murray Watt and Home Secretary Clare O’Neil announced the biggest unilateral tariff cut in two decades on Monday.
The scrapping of tariffs on 500 items means 14 per cent of Australia’s total import duties will disappear with inflation still on the high side – but it will not affect goods from China.
“Customs reform will also provide a little extra help with the cost of living challenge by making everyday items like toothbrushes, tools, fridges, dishwashers and clothes just a little bit cheaper,” said Dr. Chalmers.
Australia is scrapping “nuisance” tariffs on 500 items from July 1, which will see consumers pay less for toothbrushes, shoes, feminine hygiene products and even bamboo chopsticks
The government noted that the removal of tariff barriers would not dramatically hit its revenue pool, with annual toothbrush imports of US$84 million generating less than US$22,000 in import duties per year.
Imports of women’s menstrual and hygiene products worth more than $211 million a year generate only $3 million in revenue.
This also comes five years after GST was removed from tampons and sanitary napkins.
Imports of bamboo chopsticks worth more than US$3 million raised only US$3,000 per year in revenue.
Imported toasters worth more than $49 million raised less than $1,000 for taxpayers, while the $31 million import of electric blankets brought in just $5,000.
Washing machine imports of $490 million raised less than $140,000, while refrigerator-freezer imports of $668 million raised less than $28,000.
Imports of $160 million worth of protective footwear raised less than $112,000 a year, but clothing and footwear prices rose just 0.4 percent over the past year.
The abolition of the tariff will not affect goods from China, with everything from Australia’s biggest trading partner exempted from import duties since 2019 following a 2015 free trade agreement.
Imports of $160 million worth of protective footwear raised less than $112,000 a year, but clothing and footwear prices rose just 0.4 percent over the past year
Australia also has free trade agreements with the United States, Thailand, Malaysia, Korea, Japan, India, Chile, Singapore, the United Kingdom and Peru.
Free trade agreements are still being negotiated with the EU, the United Arab Emirates and India – an existing signatory.
“The tariffs identified have been selected because their elimination will provide benefits to businesses without adversely affecting Australian industries or restricting Australia in sensitive free trade negotiations,” the government said.
The tariff reductions are the most significant since 2005, when import duties on cars fell to 10 per cent. from 15 per cent They fell to just five percent in 2010, just 22 years after falling from 57.5 percent.
The Ministry of Finance is accepting submissions until April 1.
Dr. Chalmers said removing tariffs would make Australia more productive by saving businesses $30 million in compliance costs.
The productivity level fell by 0.4 per cent. last year.
“By eliminating hundreds of import tariffs, we will reduce red tape, increase productivity, ease the burden on small businesses and help reduce the cost of doing business,” he said.
“This is meaningful economic reform that will deliver meaningful benefits to businesses of all sizes across Australia.”