House debates
Wednesday, 24 June 2026
Bills
Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 1) 2026; Second Reading
11:50 am
Tania Lawrence (Hasluck, Australian Labor Party) | Link to this | Hansard source
I thank the member for ceding the floor to me for this occasion. I rise to speak in support of the Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 1) 2026. This is obviously a practical, targeted bill. It's not likely one that will grab any headlines, but it does some deeply important things—it makes life easier for Australian businesses, supports Australian households and ensures that our trade settings actually reflect both our economic interests and our values.
At its core, this legislation amends the Customs Tariff Act 1995 to effect a number of tariff changes already progressed through proposals considered by this House. What it means in plain terms is that we are modernising our tariff system. We're removing unnecessary red tape, aligning rates across agreements and ensuring our laws keep pace with the way in which we want to see trade work. That matters because, for communities like mine in Hasluck, trade policy isn't abstract. It shows up in the cost of living, it shows up in the viability of small businesses and it shows up in whether our local economy can grow and compete.
This modernisation of our tariff system is part of a broader agenda of the Albanese government—one that we've been pursuing by recognising that trade policy must be proactive, strategic and grounded in the realities of a changing global economy. We've seen that most clearly through the work of the Minister for Trade and Tourism, Minister Don Farrell, whose efforts to restore and expand Australia's trade relationships have delivered real benefits for Australian exporters and, importantly, for jobs in communities like mine in Hasluck. From rebuilding access to critical markets to advancing new trade opportunities, this government is determined to ensure that Australian businesses aren't left behind but, instead, are positioned to compete and succeed.
These agreements and renewed partnerships are not abstract achievements either. They do translate into opportunity. They mean stronger demand for Australian goods, more certainty for exporters and a more stable environment for investment. Across Western Australia, particularly in a growing electorate like mine in Hasluck, it matters for local jobs, for small and medium enterprises and for future growth.
Since coming to office in May 2022, the Albanese government has driven a renewed trade agenda, bringing into force the Australia-India Economic Cooperation and Trade Agreement, the Australia-United Kingdom Free Trade Agreement and more recently the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement while advancing, of course, the landmark free trade agreement with the European Union and strengthening our engagement through regional agreements like the Regional Comprehensive Economic Partnership. At the same time, we've secured new opportunities beyond traditional trade agreements, including Australia's association with the European Union's Horizon Europe program—the EU's flagship research and innovation fund of 93.5 billion euros—which gives Australian businesses, researchers and industries direct access to one of the most significant pools of global investment and collaboration seen anywhere in the world.
We're also seeing new opportunities emerge from our engagement with partners beyond our traditional markets. Our work with the EU in improving pathways for Australian participation in European funding programs and investment frameworks opens the door for Australian businesses, researchers and industry to access that significant pool of capital and collaboration. This is absolutely more than trade flows; it's about securing Australia's place in the next generation of global economic partnerships.
When we talk about aligning tariffs and our values, we're also talking about ensuring that our domestic settings complement the work that we're actually doing internationally, be it through these agreements, partnerships or strategic engagement. In that way, our businesses can fully take advantage of the opportunities. One of the most significant elements of this tariffs bill is the abolition of what we call 'nuisance tariffs'. These are tariffs that, on paper, sit at around five per cent but in practice are often avoided through concessions or free trade agreements. It means businesses are already spending time and money just to get to what is effectively a zero rate—in fact, I think it costs the government more than what they collect to administer.
This bill cuts through that inefficiency by permanently setting the duty rate to 'free' for around 500 tariff classifications. In doing so, it simplifies the system and it removes the need for businesses to navigate complex admin processes just to achieve an outcome that's already the norm. That might sound technical, but in Hasluck I hear from retailers and importers—we just had a recent delegation of distilleries head to Hong Kong, and they have gone to Singapore in the past. This matters because it reduces that admin burden they would otherwise face. Whether it's a family run business in Midland bringing in homewares, a beauty supplier in Ellenbrook sourcing personal products or a small distributor dealing in everyday goods, these businesses don't have compliance teams; they have owners who are already wearing 10 hats. They've told me consistently that time spent dealing with unnecessary paperwork is time they don't get to then spend on growing their business.
When we simplify tariffs, we're not just adjusting a schedule and legislation; we're freeing up time and reducing costs for real businesses in our community. We should also be clear about the economic intent. By removing these low-value, high-complexity tariffs, we are streamlining Australia's trade framework and reducing compliance burdens across the board. That aligns with what I've said in this place before—that good economic policy is not just about big announcements; it is about removing friction and making it easier for businesses to do business. That is exactly what this bill does.
The bill also addresses issues that go beyond economics and speaks directly to our geopolitical views. It extends the temporary additional duty applied to goods from Russia and Belarus. That measure was introduced in response to the invasion of Ukraine, and it remains part of the international community's broader response. As I say, it's not simply about tariffs; it's about standing with like-minded nations in defence of sovereignty and in support of the rules based international order. It sends a message. At the same time, the bill continues concessional tariff treatment for goods from Ukraine, extending duty-free access for a further period. That ensures Ukraine can continue to participate in international trade while under extraordinarily difficult circumstances.
For me and for many in Hasluck, these measures resonate deeply. Our community is diverse. It is multicultural. It includes families with strong connections to Europe, including those affected directly by the conflict in Ukraine. I will mention a lovely elderly woman who attends the Bassendean markets, for every session that is held. She stands there not with an elaborate stall but simply with a tiny trestle table, selling the gorgeous honey cake that is famous in Ukraine. She serves it up by slice and people eagerly purchase it. Every cent she raises from her little tiny stall goes directly back to the families in Ukraine. These gestures, from the very local level to businesses more broadly, all see the value we're speaking to through this bill. It reflects both our economic interests and our humanitarian values.
Finally, there are a number of technical amendments, particularly in relation to goods under agreements such as the Peru-Australia Free Trade Agreement. These changes remove provisions that have already fulfilled their purpose, ensuring that the legislation remains clear, streamlined and fit for purpose. This reflects a broader theme keeping our laws up to date and eliminating unnecessary complexity.
When I speak in this place, I often return to a simple principle— that we, as a government, should make things easier for people, not harder. For communities like mine in Hasluck, that principle matters, be it running a small business or dealing with cost-of-living pressures. This bill might deal in tariff schedules and technical amendments—I'm sure no-one is going to read these speeches—but it has a real impact that is tangible. It means fewer forms for small business, more opportunity for international oriented manufacturers in Hazelmere and fewer costs passed on to families at the checkout. It is a clearer, more efficient trade system that supports jobs and growth, and it's also a reminder that economic policy and international solidarity can, and should, sit side by side. I support the bill, which, as I said, is another way in which we are making life easier for all Australians.
11:59 am
Michael McCormack (Riverina, National Party) | Link to this | Hansard source
It is said that one in every four jobs in Australia is reliant on trade, and perhaps, if we really gave that a lot of thought, it would actually be a lot higher. Three million full-time equivalent Australian jobs, or thereabouts, rely on international trade. They're big numbers. Trade related activities underpin more than a third of national economic output and support international supply chains. You have many key sectors in this regard. You've got trade supported employment, including mining and resources. There we had the interesting situation in the parliament this week where the teals and One Nation were lining up to take away the situation where mining gets the diesel fuel rebate. They wanted to cap it.
Michael McCormack (Riverina, National Party) | Link to this | Hansard source
Yes, seriously. A hundred per cent, Member for O'Connor. Interesting that One Nation would, in fact, do just that. The teals and the Greens wanted to cap the Fuel Tax Credits Scheme for the most profitable mining companies. I don't need to tell you, Member for O'Connor, that the mining industry keeps the lights on. I don't need to tell you that the royalties and the taxes that mining pay keep a lot of state public schools operating and keep a lot of state public hospitals providing health services for Australians in Kalgoorlie, in Wagga Wagga and right across the nation. The mining industry is contributing about 9.9 per cent of the nation's gross domestic product—nearly 10 per cent. I was fascinated to hear Tania Constable's defence and full throated arguments in favour of what the mining industry is doing for this country and, indeed, why capping the Fuel Tax Credits Scheme is such a bad idea, questioning why the teals and Greens and One Nation—One Nation!—are getting in cahoots with one another to do this, or to attempt to do this.
Getting back onto key sectors driving trade supported jobs, there is agriculture. Our farming produce—food and fibre—is the best in the world. Our farmers are the best environmentalists on the planet. They're bedevilled often by those who simply do not understand the efforts they go to to make sure that their land and water is sustainable. If they soil the soil—pardon the pun—then, quite frankly, they're not going to have a future, so they make sure that they are doing the right thing by the dirt underneath their feet and by the water that flows and falls onto their ground.
We should be producing more. We're not going to be producing more to support our trade, to uphold bills such as the Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 1) 2026, if we continue to buy water out of the Murray-Darling Basin. Just last week, another 86 gigalitres were taken out of productive use. It cost the government $430 million at a time when national debt is heading, spiralling, plunging, lurching—call it what you like—towards a trillion dollars.
Education and tourism are crucial service based export sectors bringing international revenue. Logistics and ports—interestingly, the maritime supply chain, on its own, supports nearly 700,000 jobs across this nation. The coalition will support the passage of this bill through the House of Representatives, but we do think it needs more work and we do feel as though it should be referred to a Senate inquiry because, like with a lot of Labor bills, the devil is in the detail. And there are always elements of Labor bills brought forward that you simply can't trust—that you simply know don't pass the sniff test.
Interestingly, though, whilst I went through this particular piece of legislation—as I always do—I found that there was quite some consultation. That's almost rare for Labor. Stakeholder consultation—how interesting! Submissions made to stakeholders involved in the processes overseen by Treasury have been used as the central sources of stakeholder feedback on the measures at the core of this bill, and the list is interesting. There's the Business Council of Australia, looking after big business. There's the Australian Chamber of Commerce and Industry and the Australian Forest Products Association. Thank you. Well done. We need to consult more with our forestry people. Talking of sectors which get maligned, there's one of them. And it was interesting—I had a very productive meeting with Carlie Porteous from the southern Softwoods Working Group this morning about what we could and should be doing in this regard. There's Bridgestone, Nestle, Levi Strauss, Optical Distributors and Manufacturers Australia, Bicycle Industries Australia, We Ride Australia, Sosteneo Infrastructure Partners, Ecolift, Australian Oilseeds Federation and the Australian Music Association—and that's fair enough too, because we do produce some fine music. That's noting that Daryl Braithwaite is retiring from live performances. That's such a shame. We could all sing along to 'The Horses'—but moving right along. We do export a lot of music, and that's to be admired.
But then there are these two, interestingly. Wait for this one: the Australian Manufacturing Workers' Union. Of course they were consulted. But it gets better. They consulted the Construction, Forestry and Maritime Employees Union, the CFMEU. Why they were consulted, I'm not quite sure, although I suspect you're going to talk about maritime and forestry. Well, all well and good. However, interestingly, I also note a report by the ABC—one of the city based ABCs that One Nation wants to stop, but I digress—of Tuesday 16 June, where the second paragraph reads thus:
Criminal activity inside the construction Union …
That's the CFMEU. It goes on:
… had cost taxpayers in Victoria an estimated $15 billion, an investigation by Geoffrey Watson SC found in February.
I don't know why the government would really want to consult the CFMEU on what it claims to be necessary legislation, when the CFMEU are running around the state of Victoria—which is chaotic, by the way—and siphoning, for want of a better word, an estimated $15 billion through criminal activity inside the construction sector. It's no wonder that you can't get anything done or built in Victoria when you've got the union responsible doing those sorts of nefarious activities. It's no wonder. The only way that that's going to be nipped in the bud, although I think the bud is quite large, is to get Jess Wilson and Danny O'Brien from the Liberals and Nationals to lead a coalition government after November.
This bill is largely technical. We heard that from the member for Hasluck in her contribution. It's practical in nature. It incorporates into the Customs Tariff Act 1995 a number of tariff changes that have already been effected through customs tariff proposals. It gives effect from 1 July to the government's second tranche of so-called nuisance tariff removals. There are 497 of these. It follows a first tranche of tariff removals that occurred in 2024, when 457 of them were abolished. The government argues that these tariffs raise minimal revenue and apply to goods that already often enter Australia duty free under free trade arrangements or agreements or other forms of concessions. Secondly, and importantly, the bill extends Australia's duty-free treatment for goods produced or manufactured in Ukraine.
Ukraine was illegally and immorally invaded by Russia on 24 February 2022. A superpower such as Russia would have thought that it could just roll in to little Ukraine and take over within a matter of hours, if not days, if not weeks. There's something to be said for the spirit of Ukrainian people. There's something to be said for the geography of Ukraine. And there's something to be said for the fact that that dispute, that war, is ongoing, four long years after that intrusion. I want to pay tribute to His Excellency Vasyl Myroshnychenko, who is the Ukrainian Ambassador to Australia. I've had a number of discussions with him about providing access to coal of all things to help heat homes and fire up factories in Ukraine—they need every bit of help they can get—and access to the Bendigo built Bushmaster, which would provide them with the military might to repel the dastardly invasion by Russia. Interestingly, in recent times, we've seen a pact between Russia and North Korea. This is not good. The world is a troubled place at the moment. It truly is. We've got the Gazan situation, we've got Iran, we've got Ukraine, and we need strong leadership. We really do. We absolutely do. I wish Andy Burnham all the best if he is to take over from Sir Keir Starmer as the next United Kingdom prime minister, because, in Great Britain and Northern Ireland—and across Europe—we need strong leadership.
The Morrison government established this tariff relief in relation to Ukraine in 2022. The measure has since been extended, and I acknowledge the government for that. The current bill will continue the duty-free treatment for a further two years, to 3 July 2028. To complement this change, there will be simplification and Ukrainian tariff relief. Notwithstanding that, the instigation of a Senate inquiry should be able to extract significant and worthwhile information about the detail, the timing, the consultation and the benefits or otherwise behind the measures, all the measures, in this particular bill, especially in respect of the hundreds of new tariffs that have been selected for abolition from 1 July 2026—because you can't just take Labor on their word. We can't just roll over and say, 'All's well and good.' There has to be more clarity. Perhaps, if the Labor government weren't so inclined to rush to their union mates in the workers' union, the Manufacturing Workers' Union, and the CFMEU, there'd be a little bit more trust from this side. But there's not, and so we go forward. That's why a Senate inquiry is necessary. That's why there needs to be more detail eked out of the proposal before us.
All that aside, the passage of this bill will go through the House of Representatives. Everything always does if you've got a 50-plus seat majority. But with that majority comes responsibility. And, with that responsibility, it is hoped that, in the upper house, this is put before a Senate inquiry so the customs tariff amendment bill can be properly and appropriately scrutinised.
Question agreed to.
Bill read a second time.
Ordered that this bill be reported to the House without amendment.
Rick Wilson