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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We need stamp duty abolished. In a time we cant afford insurance why are we paying double tax? 10% gst and 10% stamp duty. Wasnt stamp duty to be abolished when we got gst?
And we have tariffs with GST on top, of course there is also import duty, death taxes etc etc etc.
 
I’ll be very surprised to see any price reduction on items, womens sanitary products were supposed to be tax free as it an essential item, yes the tax came off but company only put the prices up, it the word company’s have the POTENTIAL ato reduce prices on item , Believe it when I see it ……
 
And you seriously think the supermarkets will pass on these cuts in tarrif taxes etc.. nope… but it will certainly help boost their final line though..
 
But will businesses pass it on to consumers or will prices stay the same so that business can improve their own bottom line?
 
I'm going to save at least $15 a year. I'm so excited I might take a trip across the other side of town.
 
Anything that helps us to live better and
Manage our necessary expenses has to be a good step forward
 
Omg, homeless people don't need washing machines, etc. they need a home or even a room. Homeless people who have jobs, but can't afford a home. It took Airbus✈️Albo and his sleezy govt. only 2 years to destroy this amazing country. They are living millionaire lives, while the rest of us facing poverty and homelessness. They have to go, or a civil war will take place. Crime, no GP's in some regional states, ambulances waiting times, set non-Australian crimals free into Australian communities, CRIME CRIME ! bring in thousands of migrants, cost of living etc etc. 1710635051382.png
 
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.
It already happened in Victoria. They took it to court and it was deemed illegal. I think it was about 30 cents per kilometre. I know. NSW was about to do the same
 
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Wouldn’t it be so much better if we could manufacture these articles and didn’t have to import them at all.
 
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seems to me this helps bussinnesses and govt more than consumers why dont they cut the excices from fuel alchohol tobacco and the taxes on everything in daily use
the reason the govt doesnt is because of govt greed and no other reason
 
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Complete joke. The big companies won’t care. How about the government fixes the pension issues. How are politicians so stupid??
especially the aged pension which has beedn neglected by the now GOVT and the last GOVT
CPI
For aged %5.2 for the last twelve months \
WHO IS LYING
NOT THE PENSIONERS
 
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MAYBE OUR STATE GOVERMENT WILL DO AWAY WITH STAMP DUTY WHEN THEY WANT PENSIONER TO DOWN SIZE THEIR HOMES I AM AGE PENSIONER LIVING IN A 4 BEDROOM HOME YES ONE PERSON AND NOWAY WILL I GIVE STAMP DUTY TO GIVE THE FATCATS A RISE FOR SITTING ON THEIR ARSE
 
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The Dunce party won't cut much needed petrol tax AND has unleashed Australians to depend on only renewables ( when no wind, how will the wind turbines work) Power too high, yet won't build much need nuclear that will reduce most costs, yet now reduce taxes on toothnrishes etc. Yeah right now that toothbrush for toothless people is really a much needed commondity.........Dddd...
I actually agree with you!
 
We need stamp duty abolished. In a time we cant afford insurance why are we paying double tax? 10% gst and 10% stamp duty. Wasnt stamp duty to be abolished when we got gst?
historically pollies would rather cut off their hands than remove a tax.Both sides the same,Yes we were supposed to have taxes removed when we got GST but as usual the meek public said nothing( im only one person, what can I do?etc) the GST always was to be an extra tax.This gave the govt more money than they ever saw EVER. its up to us to vote responsibly, politics is not a football team to follow regardless of the performance, thats loyalty to the team, But politics IS about performance loyalty is misplaced, ...we certainly get the govt we deserve, We need to remind them they get elected on performance NOT who they once were
 
How often do we buy fridge, washing machine, toothbrush, toaster
and etc.!?
 
historically pollies would rather cut off their hands than remove a tax.Both sides the same,Yes we were supposed to have taxes removed when we got GST but as usual the meek public said nothing( im only one person, what can I do?etc) the GST always was to be an extra tax.This gave the govt more money than they ever saw EVER. its up to us to vote responsibly, politics is not a football team to follow regardless of the performance, thats loyalty to the team, But politics IS about performance loyalty is misplaced, ...we certainly get the govt we deserve, We need to remind them they get elected on performance NOT who they once were
Regio look at the breakdown how much insurance and taxes add up the bill?
 

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