Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship 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 and Other Measures) Bill 2024 amends the Customs Tariff Act 1995 to incorporate the measures in two customs tariff proposals moved in the House of Representatives in July this year. The bill also makes certain minor technical amendments to the Customs Tariff Act.

The first set of amendments in the bill are consistent with the alterations made by the Customs Tariff Proposal (No. 1) 2024, moved in the House of Representatives on 3 July 2024. These amendments repeal the general rates of duty for over 450 tariff classifications and replace the rates with 'free'.

These tariff classifications were selected because most importers were applying relevant tariff concessions or free trade agreement preferential rates, which effectively reduced 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 toothbrushes, electric blankets, washing machines and a range of clothing and footwear. This is the largest unilateral tariff reform in two decades. The 'free' rate of duty for these tariff classifications applied from 1 July 2024.

Amendments will also be made to the corresponding free trade agreement preferential rates to ensure that 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.

The second set of amendments are consistent with the alterations made by the Customs Tariff Proposal (No. 2) 2024, also moved in the House of Representatives on 3 July 2024.

These amendments extend the 'free' rate of customs duty applied to goods that are the produce or manufacture of Ukraine. As a result, goods from Ukraine will continue to benefit from a 'free' rate of duty until 3 July 2026. This 'free' rate of duty applies to all Ukrainian goods, except for excise-equivalent goods (being petroleum, fuel, tobacco and alcohol products).

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

The third set of amendments are technical amendments which repeal spent phasing rates and associated provisions. Phasing rates are customs duty rates that incrementally reduce to 'free' over a specified period of time.

A number of the phasing rates in schedules 3, 10 and 11 to the Customs Tariff Act have been incrementally reduced to 'free'. The increments are now redundant and no longer required in the text of the Customs Tariff Act. The repeal of these provisions will simplify the text without altering the operation of the act or the duty rates applied to any goods. I commend this bill to the chamber.

Debate adjourned.

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