Federal government moves to axe “nuisance tariffs”

THE federal government says a boost in business productivity will be a key benefit of its move to abolish 500 so-called ‘nuisance tariffs’.

Trade minister Don Farrell said it meant cheaper products for Australian consumers and reduced compliance costs.

Examples of products that could be cheaper include:

• Tyres with annual imports worth nearly $4 billion, raising less than $80,000 in revenue per year. Abolition is expected to save business more than $32 million in compliance costs annually.
• Televisions with annual imports worth more than $1.4 billion, raise less than $43,000 in revenue per year. Abolition is expected to save business more than $13 million in annual compliance costs.
• Wine glasses with annual imports worth over $42 million, raise less than $28,000 in revenue per year. Abolition is expected to save business more than $375,000 in annual compliance costs.
• Air conditioners with annual imports worth over $58 million, raise less than $100,000 in revenue per year. Abolition is expected save business over $504,000 in compliance costs each year.

“Treasury will consult on the proposed list of almost 500 additional tariffs to be abolished by the government,” Senator Farrell said, also stating that the government was strengthening protections for Australian businesses from unfair trade practices.

Responsibility for safeguards actions aimed at protecting Australian industry from sudden surges in imports is expected to move from the Productivity Commission to the Anti‑Dumping Commission.

“By accelerating the modernisation of Australia’s anti‑dumping regime, we’re ensuring it is fit for purpose in a modern global economy,” Senator Farrell said.

“These are common sense changes that will help to make our economy more prosperous, productive and resilient in the face of growing global uncertainty.

“We’re proud of the progress that we’ve been able to make unilaterally because tariffs push up compliance costs on business and risk pushing up prices for workers and families as well.”

He said the latest 500 nuisance tariffs were on top of the 457 tariffs already abolished by the government in July last year.

“With this reform, we’ll have removed around 1,000 tariffs over two years and streamlined approximately $23 billion worth of trade,” he said.

“These nuisance tariffs risk doing more harm than good.”

Senator Farrell spruiked the role of the Economic Reform Roundtable in bringing about this change, noting also “while other nations are putting up trade barriers, we’re tearing them down”.

A final list of agreed tariffs for removal is to be published in the next budget.