House debates

Wednesday, 3 July 2024

Tariff Proposals

Customs Tariff Proposal (No. 1) 2024, Customs Tariff Proposal (No. 2) 2024

4:45 pm

Photo of Stephen JonesStephen Jones (Whitlam, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I move:

Customs Tariff Proposal (No. 1) 2024.

Customs Tariff Proposal (No. 2) 2024

Customs Tariff Proposal (No. 1) 2024 that I've tabled repeals the general rate of duty for 457 tariff classifications and replaces the rate with 'Free'. The free rate of duty will apply to goods imported on or after 1 July 2024. These alterations will cut compliance costs and make it easier to import a range of goods, including household items such as toothbrushes, washing machines and electric blankets and certain clothing and footwear. Eliminating customs duties for these goods will mean cheaper goods for Australians and less complicated compliance for Australian businesses. The 457 tariff classifications have been selected because, although they have a general rate of five per cent, the widespread use of tariff concessions and preferential rates mean that few, if any, importers pay the five per cent rate. Reducing the general rate of customs duty means importers will continue to be able to claim a free rate of customs duty without having to undertake the additional steps and paperwork required to claim concessional preferential rates of duty.

To ensure that Australia is meeting its commitments to free trade agreement partners, this proposal also includes alterations to schedule 14 of the Customs Tariff Act 1995. These alterations ensure that the preferential rates of customs duty for goods that are originating under the Regional Comprehensive Economic Partnership Agreement are not higher than the general rate of duty. Aside from schedule 3, schedule 14 is the only schedule to the Customs Tariff Act in which preferential customs duty rates have not already been incrementally reduced to free in respect of some of the 457 tariff headings and subheadings affected by this measure.

Customs Tariff Proposal (No. 2) 2024 proposes to amend section 18B of the Customs Act 1995 to extend concessional treatment of imported goods that are the produce or manufacture of Ukraine for a further 24 months. From 4 July 2022 these goods, other than petroleum, fuel, tobacco and alcohol products, have been able to claim a free rate of customs duty on import. This was due to end on 3 July this year. The goods will now be able to continue to access concessional treatment until 3 July 2026. The extension of concessional treatments supports Ukraine's continued participation in international trade and is a demonstration of Australia's continued and unwavering support for Ukraine and its people. The tariff relief is one part of Australia's package of defence, economic and humanitarian assistance to Ukraine.

Debate adjourned.


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