A List of Items That Are Set to Get Cheaper in Australia, Thanks to Tariff Reforms

A List of Items That Are Set to Get Cheaper in Australia, Thanks to Tariff Reforms

Another day, another instalment in the cost of living crisis. Except this time, it’s good news! The Australian government is moving to abolish a large amount of import tariffs in July, meaning the cost of almost 500 household items is about to go down.

Government set to abolish certain import tariffs

The news is set to be formally announced by Treasurer Jim Chalmers, but in the meantime, we have some idea of how it’s going to work and what items will be reduced.

“I can announce today that we will permanently abolish almost five hundred nuisance tariffs on a vast array of imports from July 1 this year,” Mr Chalmers said in recent speech. “…This is the biggest unilateral tariff reform in at least two decades. It will cut compliance costs, reduce red tape, make it easier to do business, and boost productivity.”

Import tariffs are taxes charged by the customs authority on items imported to the country. Certain trade agreements allow items imported into Australia from certain countries to be tax-free. In this reform, the government is targeting what it calls “nuisance tariffs”:

“As it stands, tariffs make these products more expensive, and cost more to administer. But these nuisance tariffs do nothing to protect Australian businesses and workers because they apply to goods that often arrive under a concessional rate. So only on a small portion of goods, or sometimes none, is the tariff actually paid,” Chalmers explained.

“This means the government and businesses spend more administering and complying with the tariff system than we receive in revenue.

Australian workers and businesses are not protected by these tariffs, but they still have to navigate the red tape involved and bear the compliance costs.”

What items will get cheaper?

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Imports tariff. Getty Images

Let’s skip to the good part – which items should see a cost cut? A full list of the import tariffs set for reform will be included in the federal budget on May 14, but some of the things that were outlined by the Treasurer were:

  • Toothbrushes
  • Hand tools
  • Fridges
  • Dishwashers
  • Clothing
  • Menstrual and sanitary products
  • Mushrooms
  • Chopsticks
  • Kitchen knives
  • Sleeping bags
  • Electric blankets
  • Puzzles
  • Art supplies: Paint brushes, Ball point pens, Crayons
  • Protective footwear
  • Pyjamas
  • Fishing reels
  • Toasters

The products that are targeted are those where the import rate is high, but the revenue earned from tariffs is low. For example, the government outlined that Australia imports over $660 million worth of fridge-freezers every year, but the revenue raised from tariffs is just $28,000.

Check back here in May to see what other items are set to get cheaper.

Lead Image Credit: iStock

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