From chopsticks to rollercoasters: Here are some of the items Federal Govt are taking the tax axe to

Dan Jervis-Bardy
The Nightly
2 Min Read
Toothbrushes, shoes, sanitary items and even bamboo chopsticks could get a little bit cheaper as the Federal Government takes the axe to hundreds of ‘nuisance’ tariffs.
Toothbrushes, shoes, sanitary items and even bamboo chopsticks could get a little bit cheaper as the Federal Government takes the axe to hundreds of ‘nuisance’ tariffs. Credit: MICK TSIKAS/AAPIMAGE

Toothbrushes, shoes, sanitary items and even bamboo chopsticks could get a little bit cheaper as the Federal Government takes the axe to hundreds of “nuisance” tariffs.

Carnies will also be rejoicing, with the cost of dodgem cars and rollercoasters poised to fall under a reform the Government argues will make it easier and cheaper to do business.

Treasurer Jim Chalmers will on Monday announce plans to abolish almost 500 import tariffs from July 1.

Sign up to The Nightly's newsletters.

Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.

Email Us
By continuing you agree to our Terms and Privacy Policy.

The hit list — which wipes out 14 per cent of Australia’s tariffs in one fell swoop — applies to common items like toothbrushes, sanitary products, and shoes as well as household appliances like washing machines, fridges, toasters, and hand tools.

It also features some less common items, like Chamois leather, fishing reels as well as carnival rides.

Axing the tariffs will save businesses an estimated $30 million in compliance costs each year, with the Federal Government optimistic that this will translate to lower prices for customers.

“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,” Dr Chalmers said.

“These tariffs impose a regulatory burden on Australian businesses and raise the costs of imported goods, but they do little to protect our workers and businesses because they apply to goods that are mostly already eligible for duty-free importation.”

“Tariff reform will also help with the cost-of-living challenge by making everyday items such as toothbrushes, tools, fridges, dishwashers, and clothing just a little bit cheaper.

“These tariff reforms will be better for businesses, better for consumers and better for the economy.”

The tariffs raise a relatively small amount of money for the Commonwealth, and the hassle for businesses is considered greater than any benefit to the budget.

For example, more than $490 million worth of washing machines are imported each year – but the tariff raises just $140,000.

Just $40,000 is raised from the more than $16 million in imported rollercoasters each year.

According to the Government, the mass tariff cull will streamline an estimated $8.5 billion worth of annual trade.

“With one in four Australian jobs trade-related, and 27 per cent of Australia’s economic output supported by trade, the importance of trade to Australia’s national wellbeing cannot be overstated,” Trade Minister Don Farrell said.

“Trade that is simple, fast, and cost-effective can boost Australia’s international competitiveness, help create jobs, and reduce cost of living pressures.”

Agriculture Minister Murray Watt said scrapping the tariffs was “good for Aussie farmers and good for Aussie customers”.

The full list of tariffs will be revealed when Dr Chalmers hands down the Federal Budget in May.

Comments

Latest Edition

The front page of The Nightly for 15-04-2024

Latest Edition

Edition Edition 15 April 202415 April 2024

Justice Lee finds Lehrmann ‘hell-bent on having sex’ with Higgins and ‘didn’t care if she knew what was going on’