Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship, Customs and Multicultural Affairs) Share this | Hansard source

I move:

That this bill be now read a second time.

The Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 1) 2026, or the bill, amends the Customs Tariff Act 1995 to incorporate the measures in two customs tariff proposals moved in the House of Representatives in May this year and another proposal that was moved in August 2025. The bill also makes certain minor technical amendments to the Customs Tariff Act.

The first set of amendments repeals the general rates of duty for almost 500 tariff classifications and replaces these rates with 'free'. These tariff classifications were selected because the majority of importers utilise relevant tariff concessions or free trade agreement preferential rates, which in practice reduce the five per cent duty rate to a 'free' rate of duty.

Eliminating customs duty for these classifications will reduce business compliance costs and make it easier to import a range of goods, including foodstuffs, homewares, items of clothing and personal hygiene goods. Cumulatively, these amendments, together with similar amendments made in 2024, have reduced the customs duty rates for almost 1,000 tariff classifications.

The Albanese government has reduced to 'free' the general rates of customs duty for more tariff classifications than any other government in the last two decades. Reducing the duty rates for these additional tariff classifications helps to cut red tape and reduces compliance costs for Australian businesses. In fact, across the two measures, the customs duty rates for almost 1,000 tariff headings and subheadings permanently set to 'free' will streamline around $23 billion worth of trade and save business $157 million annually in compliance costs.

Amendments will also be made to the corresponding free trade agreement preferential rates to ensure they are not higher than the general rate of duty. This ensures that importers utilising free trade agreements are not disadvantaged by the unilateral reduction of the general rate.

These amendments are consistent with the alterations made by Customs Tariff Proposal (No. 1) 2026, which I moved in the House of Representatives on 14 May 2026.

While other countries are putting up trade barriers, we are tearing trade barriers down. We're reducing them. This government is reducing more customs duty rates to 'free' because we recognise that it delivers benefits to Australian businesses and to the Australian consumer.

The second set of amendments extends the temporary additional customs duty on goods that are the produce or manufacture of Russia and Belarus for a further 24 months. The temporary 35 per cent duty applies in addition to the general rate of customs duty that would ordinarily apply.

In applying this measure, Australia has joined with like-minded countries in response to Russia's illegal invasion of Ukraine, supported by Belarus. As Russia continues to violate the sovereignty and territorial integrity of Ukraine and undermine the rules based international order, this measure is necessary for Australia's essential security interests. Australia is committed to upholding these principles, which are necessary for Australia's international, regional and domestic stability and security.

These amendments are also consistent with the alterations made by Customs Tariff Proposal (No. 2) 2025, moved in the House of Representatives on 28 August 2025.

The third set of amendments extend the temporary 'free' rate of customs duty applied to goods that are the produce or manufacture of Ukraine for a further 24 months. The 'free' rate of duty applies to all Ukrainian goods, except for petroleum, fuel, tobacco and alcohol products.

The extension of the concessional treatment supports Ukraine's continued participation in international trade. The tariff concession is just one part of Australia's big package of defence, economic and humanitarian support and a sign of our ongoing and steadfast support for Ukraine and its people.

These amendments are consistent with the alterations made by Customs Tariff Proposal (No. 2) 2026, moved in the House of Representatives on 14 May 2026.

Finally, the bill also makes certain unglamorous but important technical amendments to schedule 6A of the act, which provide for preferential rates of customs duty for goods that are originating under the Peru-Australia Free Trade Agreement. The amendments remove spent phasing rates and as such do not alter the operation of the Customs Tariff Act.

I commend the bill to the House.

Debate adjourned.

See this speech in context