Massive cut on 500 tariffs could save Aussies money and reduce household expenses

Australia is gearing up for a significant economic shift.

The government has announced that it will scrap nearly 500 tariffs on imported goods, a decision that promises to ease the financial strain on both businesses and consumers.

This is the largest change to the tariff system in over twenty years, and it's expected to have a tangible impact on the cost of living for many Australians.



Starting 1 July, a wide array of everyday items, including toothbrushes, dishwashers, washing machines, fridges, toasters, pyjamas, ballpoint pens, and even menstrual and sanitary products, may see a reduction in price.

This is because the tariffs—taxes imposed on imported goods—that currently add to the cost of these items will be abolished.

It's a change that's not just about saving a few cents here and there; it's about making the cost of living more manageable, especially at a time when every penny counts.

Treasurer Jim Chalmers highlighted that this tariff reform is expected to save businesses more than $30 million in compliance costs each year—a significant figure, considering that the administrative burden of managing tariffs can be both costly and time-consuming for businesses.



By reducing these expenses, companies can potentially pass on the savings to consumers, leading to lower prices for a variety of goods.

Moreover, the reform is set to streamline approximately $8.5 billion worth of annual trade.


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Australia is set to scrap nearly 500 tariffs on imported goods starting 1 July. Image source: Shutterstock.


'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,' Treasurer Chalmers said.

'This is meaningful economic reform that will deliver meaningful benefits to businesses of all sizes around Australia.'



It's worth noting that tariffs are currently only applied to a small fraction of imports, with nearly 90 per cent of goods entering Australia duty-free.

However, the remaining 10 per cent that are subject to a five per cent customs duty can add up, especially when considering the volume of trade involved.

For example, the government pointed out that washing machines, which see annual imports worth over $490 million, generate less than $140,000 in revenue from tariffs.

Similarly, toothbrush imports, worth more than $84 million, raise less than $22,000 in revenue.

Removing these tariffs is a strategic decision to reduce unnecessary costs without significantly impacting government revenue.



In addition to the economic benefits, there's also a social aspect to this reform.

The removal of tariffs on menstrual and sanitary products is a move that reportedly aligns with previous changes made to the Goods and Services Tax (GST) and represents a step towards gender equity in taxation.

It also acknowledges the essential nature of these products and removes an additional financial barrier to accessing them.

Trade Minister Don Farrell has emphasised the importance of trade to the Australian economy, with one in four jobs being trade-related and 27 per cent of the nation's economic output supported by trade.

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

The finalised list of all eliminated tariffs will be included in the May budget.
Key Takeaways
  • Australia is set to remove nearly 500 tariffs on imported goods.
  • This tariff elimination will streamline trade, reduce business costs by around $30m annually, and ultimately make everyday items cheaper for consumers.
  • Starting 1 July, the reforms will mean that tariffs will no longer apply to a range of goods, including toothbrushes, fridges, dishwashers, and menstrual and sanitary products.
  • The government said that these changes will boost productivity, reduce cost-of-living pressure on households, and provide significant economic benefits to businesses across Australia.
What are your thoughts on this latest news? Let us know in the comments below.
 
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It's a joke.... who buys washing machines etc so often? Maybe one every 10+ years?
What about getting prices of every day groceries down? And electricity and petrol? And make rental properties affordable again?
Rental properties indeed!
 
Here's a question. I don't see asked. When the country speeds toward Electric cars and the tax take on petrol goes to hell in a handbasket, where will the government replace their loss of petrol tax from? I can see mileage tax being introduced.
I was watching a YouTuber that my partner follows (because he was going to adopt another dog, wouldn’t watch it otherwise 😂) and he and his wife needed to drive from south London up to Wales. The Tesla he was driving didn’t even last the distance the company claimed it does. It fell about 100km short. Apparently it’s quite common for it to happen. Not to mention that the EV batteries supposedly only last about 5 years… this is producing more waste and more money into cars that we know nothing about yet the government supports the idea… fuel subsidies for‘normal’ cars would be the best way to go
 
will make sweet bugga all difference . Nothing like what some people want/need
 
Not one of those things mentioned do we buy weekly! We need weekly savings on essentials !
Every politician should be given a list of everyday items and an amount of money a normal family might have to do a weekly shop and see how well they can do . They have no idea !
 
I'm not in the habit of buying toothbrushes and washing machines each week, they are giving little back because the tariffs bring in so little money for government coffers.
 
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My thoughts are - should not be imported and wish we had more manufacturing at home.
 
Will the prices go dow on these items or will they stay the same price therefore giving more profit to the supermarkets? I did hear chopsticks was also among the goods to have their tariffs cut. In the article it does say "may see a reduction in price". If 90% of the goods that come into Australia are duty free, why do we get slugged so much for everything?
You make a good point....so that's something to take note on when l am interested in buying a particular product...Lets keep our eyes open.
 
Here's a question. I don't see asked. When the country speeds toward Electric cars and the tax take on petrol goes to hell in a handbasket, where will the government replace their loss of petrol tax from? I can see mileage tax being introduced.
You mean kilometreage
 
It is just “look at us aren’t we good”. How about doing something meaningful and cut the tax on petrol. Consumers use petrol more often than buying a toothbrush, washing machine etc.
 
"Free Stuff! Free Stuff! FREEEE STUFF!!!"
"Dtt dtt dtt dtt dttttt....."
"eh?... What's that, Skip?... You mean, it's not free?"
"Dttt dttt dtt dttttt dttttt!"
"Oh...Jeez....... I couldn't tell, with all that noise coming out of Canberra....." 1710291792186.png
 
  • Haha
Reactions: Julz62
won't make much differenceat all . What WILL MAKE A DIFFERENCE is dramatically CUTTING THE COST OF FOOD AND MEDICINES.---I , and probably many like me are already SKIPPING MEALS as food is way overpriced & is a bloody discrace in this ,so called ''LUCKY COUNTRY'' ha!--well it is for the filthy rich.
 
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Reactions: Julz62
May come down? Why only may come down, surely these items should come down and the government needs to make sure they do. I’m guessing something else will go up to compensate the government for the lost revenue. I bet the government don’t spruik about whatever goes up to compensate for the lost revenue either, it will be sneakily imposed on the public.
Nah.... what goes up stays up...
 
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Reactions: riskydave
Problem with this is the businesses have to actually drop the price's which I doubt will happen, they will just pocket more money. Can you see Coles or woollies adjusting hundreds of prices down down!!, don't think so!.
 

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