Aussies set to get $120 million cost of living relief
Everyday items Australia imports are about to get much cheaper and deliver some much needed hip pocket relief for struggling Aussies.
Tariffs are set to be scrapped on a number of everyday items Australia imports, making them cheaper and delivering some much needed hip pocket relief to consumers.
The government is proposing to abolish around 500 “nuisance tariffs” in what it is claiming is the “biggest unilateral tariff reform in two decades”.
It said the move will ease cost of living pressures on Aussie families to the tune of more than $120 million over the next four years.
Among the items to have import tariffs scrapped are menstrual and sanitary items, whitegoods such as fridges, freezer, dishwashers, washing machines and dryers, toothbrushes, some toys, some tools, and some clothing and footwear.
Tariffs are only applied to a small number of imports, with nearly 90 per cent of imports entering Australia duty-free.
The tariffs currently take the form of a five per cent customs duty which raised just over $1 billion in revenue 2022-23, which accounted for less than one per cent of government revenue.
The change will also see tariffs removed on some imported foods such as certain types of mushrooms and nuts, bulgur wheat, maple syrup, asparagus, and some nut and seed oils.
“By abolishing hundreds of import tariffs, we’ll reduce red tape, boost productivity, ease the burden on small businesses and help to cut the cost of doing business,” Treasurer Jim Chalmers said.
“Tariff reform will provide a small amount of extra help with the cost-of-living challenge by making everyday items such as toothbrushes, tools, fridges, dishwashers and clothing just a little bit cheaper.”
Dr Chalmers said the tariffs were raising very little money as a series of loopholes had allowed most businesses to gain exemptions.
But the exemption process was unnecessarily costly for businesses, and that these compliance costs were being passed on to consumers in the form of higher prices.
Businesses will benefit from the change by saving more than $30 million in compliance costs each year.
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But shadow treasurer Angus Taylor said the reforms would do little to help Australians.
He said the $120 million saving to Australians over four years forecast by the government was the equivalent of just $1.10 per person per year.
The full list of abolished tariffs will be finalised and provided in the May budget and the changes will take effect on July 1.
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