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Customs Tariff Amendment (Incorporation of Proposals)

Current status

This bill became law on Aug 26th, 2026.

Policy area

Budget, tax & economy

What does this bill do?

Importers of almost 500 product groups pay no general import duty from 1 July 2026, down from 5 per cent in most cases.

Why was it introduced?

The government said the removed duties raised little money, offered local producers little benefit and created paperwork for businesses. It estimated that removing them would cut customs revenue by $70.0 million over four years from 2026-27. Extending Ukraine's duty relief was expected to cost $2.0 million over two years, while extending the Russia and Belarus duty would raise a negligible amount.

Broader context

Australia already had a tariff system that relied heavily on concessions and free-trade-agreement rates, and a 2024 reform had removed more than 450 low-value “nuisance” tariffs; however, almost 500 classifications still imposed paperwork costs, while temporary Russia–Belarus and Ukraine measures and spent Peru–Australia tariff entries needed updating. The Government responded through tariff proposals and this bill, introduced by Julian Hill MP, to make the remaining classifications duty-free, align preferential rates, preserve the country-specific settings, and remove obsolete entries as the changes took effect.

Key criticism

Andrew Hastie (Liberal) said the government had not clearly explained how it chose the final list or assessed effects on Australian manufacturing. He said there was limited public detail about lost revenue, affected industries and businesses' expected paperwork savings. He also warned that lower import costs might not reach shoppers at the checkout.

Who supported it?

Julian Hill MP introduced this bill. It passed on the voices.

Introduced in House 27 May 2026
Passed House 24 June 2026
Passed Senate 20 Aug 2026
Became law 26 Aug 2026

Did it become law?

Yes

Became law 26 Aug 2026

Final passage

Passed without a counted vote

1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.

Passage speed

91 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. Importers of almost 500 product groups pay no general import duty from 1 July 2026, down from 5 per cent in most cases.

  2. Importers using the Regional Comprehensive Economic Partnership, a regional trade agreement, keep rates no higher than the new general rates.

  3. Importers of most Russian and Belarusian goods keep paying an extra 35 per cent duty until 24 October 2027, up from 24 October 2025.

  4. Importers of most Ukrainian goods continue paying no duty until 3 July 2028, up from 3 July 2026.

  5. Importers of Ukrainian alcohol, tobacco, fuel and some related products remain outside the full duty-free arrangement.

  6. Importers of affected Peruvian goods see outdated rate tables removed from 1 January 2027. Their existing duty-free treatment does not change.

Show source excerpts
  1. (a) goods imported into Australia on or after 1 July 2026; and (b) goods imported into Australia before 1 July 2026, where the time for working out the rate of import duty on the goods had not occurred before the commencement of this item.
    Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026
  2. From 1 July of year 5: Free 156 Schedule 14 (cell at table item 1689, column 3) Repeal the cell, substitute: From 1 July of year 5: Free
    Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026
  3. Customs Tariff Act 1995 158 Paragraph 18A(5)(b) Omit “24 October 2025”, substitute “24 October 2027”.
    Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026
  4. Customs Tariff Act 1995 159 Paragraph 18B(1)(b) Omit “3 July 2026”, substitute “3 July 2028”.
    Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026
  5. the ‘Free’ rate of customs duty for goods that are the produce or manufacture of Ukraine; and the reduced rate for goods classified under a tariff classification in Chapter 22, 24, 27, 29, 34 or 38 of Schedule 3 to the Customs Tariff Act for which a ‘Developing Country’ tariff rate is listed; are extended to cover goods imported into Australia during the period of 72 months beginning on 4 July 2022; being an increase from 48 months to 72 months. The amendment extends the ‘Free’ rate of customs duty for goods that are the produce or manufacture of Ukraine, except for excise equivalent goods s
    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
  6. Customs Tariff Act 1995 160 Paragraph 16(1)(la) (note) Repeal the note. 161 Subsections 16(2AA) and (2AB) Repeal the subsections. 162 Schedule 6A (table items 1, 2, 130 to 132, 141 to 143 and 152 to 405) Repeal the items.
    Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026

Context

Broader context for this bill

Australia already had a tariff system that relied heavily on concessions and free-trade-agreement rates, and a 2024 reform had removed more than 450 low-value “nuisance” tariffs; however, almost 500 classifications still imposed paperwork costs, while temporary Russia–Belarus and Ukraine measures and spent Peru–Australia tariff entries needed updating. The Government responded through tariff proposals and this bill, introduced by Julian Hill MP, to make the remaining classifications duty-free, align preferential rates, preserve the country-specific settings, and remove obsolete entries as the changes took effect.

  1. 2024

    Australia removes more than 450 nuisance tariffs

    The reform removed tariffs that raised little revenue but added compliance work, leaving another large group for later action.

    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
  2. 25 Oct 2025

    Extra tariffs on Russian and Belarusian goods continue

    An additional 35 per cent duty on goods made in Russia or Belarus took effect through an earlier tariff proposal and was later incorporated by this bill.

    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
  3. 14 May 2026

    2026 tariff proposals begin taking effect

    The proposals started the changes later incorporated by the bill, including tariff reductions for almost 500 classifications and extended duty-free access for eligible Ukrainian goods.

    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
  4. 27 May 2026

    Julian Hill MP introduces the bill

    Julian Hill MP introduced the bill in the House of Representatives to incorporate the tariff proposals and make related technical amendments.

    Parliamentary timeline ↗
  5. 01 July 2026

    Almost 500 tariff classifications become duty-free

    The new free general rate removed compliance costs for importers of goods including food, homewares and clothing, while preferential rates were adjusted so they did not exceed it.

    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
  6. 20 Aug 2026

    Parliament passes the bill

    Both houses passed the bill in the same form, formally incorporating changes that had already taken effect through tariff proposals.

    Parliamentary timeline ↗
  7. 26 Aug 2026

    Royal Assent turns the bill into an Act

    Royal Assent completed the process confirming the tariff changes in Australian law.

    Parliamentary timeline ↗
  8. 01 Jan 2027

    Obsolete Peru–Australia tariff entries are removed

    Spent phased entries for goods covered by the Peru–Australia Free Trade Agreement are removed because those goods already attract zero duty.

    Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 27 May 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 27 May 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Legal and Constitutional Affairs review 27 May 2026

Referred to Committee (27/05/2026): Senate Legal and Constitutional Affairs Legislation Committee; Committee report (22/06/2026)

Report tabled 22 Jun 2026

APH bill page notes
Second reading debate 24 June 2026

The bill reached this recorded parliamentary step.

Sent to Federation Chamber for debate 24 June 2026

The bill reached this recorded parliamentary step. For this bill, the Federation Chamber reported back later the same day and the House then completed its remaining formal steps that day.

Referred to Federation Chamber

Federation Chamber debate 24 June 2026

The bill reached this recorded parliamentary step.

Second reading debate

House second reading agreed 24 June 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber without amendment 24 June 2026

The bill reached this recorded parliamentary step. The official House record shows the referral out and return both happened on the same day, before the House moved to its final formal votes.

Reported from Federation Chamber

House third reading agreed 24 June 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 25 June 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 25 June 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 20 Aug 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 20 Aug 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 20 Aug 2026

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 26 Aug 2026

The Governor-General gave Royal Assent, turning the bill into an Act.

Key criticism

The main case against this bill

Andrew Hastie (Liberal) said the government had not clearly explained how it chose the final list or assessed effects on Australian manufacturing. He said there was limited public detail about lost revenue, affected industries and businesses' expected paperwork savings. He also warned that lower import costs might not reach shoppers at the checkout.

Hastie said the Coalition supported the bill, including simpler tariffs and continued relief for Ukrainian goods. He said the concerns did not justify blocking it.

Dumped timber imports

Tariff removal could leave Australian timber producers more exposed to cheaper, inferior dumped imports unless stronger industry protections are introduced.

Raised by One Nation, through Senator Hanson’s second-reading proposal Source ↗

Unclear economic effects

The bill did not provide enough clarity about how the tariff changes would affect domestic industries, government revenue and prices paid by consumers, prompting calls for further Senate scrutiny.

Raised by Coalition speakers Michael McCormack and Andrew Hastie Source ↗

Further sources

parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

24 June 2026

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

20 Aug 2026

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.

Senate

Defeated

Protect Australian timber and require origin labels

Aye 28 No 35

Defeated 28 to 35. Support came from Liberal, Nationals, One Nation, Liberal Party, and minor parties and independents. Opposition came from Labor and Greens.

20 Aug 2026

The Senate rejected the proposed amendment.

Party Recorded votes Aye / No
Labor 0 / 26
Liberal 19 / 0
Greens 0 / 9
Nationals 4 / 0
One Nation 3 / 0
Independent 1 / 0
Liberal Party 1 / 0
Carried

Protect Australian timber and require origin labels

The record says the One Nation proposal sponsored by Pauline Hanson was carried without a counted vote. It called for protection from dumped timber imports and labels showing where timber came from.

Carried on voices

The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.

Hansard record ↗

These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Julian Hill

Australian Labor Party • MP 27 May 2026

Hill supports the bill, saying it will cut import red tape and business compliance costs, extend trade support for Ukraine, and maintain additional duties on Russian and Belarusian goods in response to the invasion of Ukraine.

Read in Hansard ↗
Lead supporting voice Supports

Michael McCormack

National Party • MP 24 June 2026

McCormack says the coalition will support the bill because its largely technical tariff changes include continued duty-free treatment for Ukrainian goods, but argues it needs further scrutiny through a Senate inquiry.

Read in Hansard ↗
Lead voice Supports

Tim Ayres

Australian Labor Party • Senator 25 June 2026

Ayres supports the bill, arguing that it will cut import costs and red tape, maintain additional duties on Russian and Belarusian goods, and extend tariff relief for Ukraine.

Read in Hansard ↗
Lead voice Supports

Tania Lawrence

Australian Labor Party • MP 24 June 2026

Lawrence supports the bill because it removes inefficient tariffs and red tape for businesses, reduces costs for households, and aligns Australia's trade settings with its support for Ukraine.

Read in Hansard ↗

All speeches by bloc

Labor

3 speakers · 3 support

  1. Tim Ayres ★ Ayres supports the bill, arguing that it will cut import costs and red tape, maintain additional duties on Russian and Belarusian goods, and extend tariff relief for Ukraine.
    “While other countries are putting up trade barriers, we are tearing them down. 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.”

    Australian Labor Party • Senator • 25 June 2026

    Read the full speech in Hansard ↗
  2. Tania Lawrence ★ Lawrence supports the bill because it removes inefficient tariffs and red tape for businesses, reduces costs for households, and aligns Australia's trade settings with its support for Ukraine.
    “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.”

    Australian Labor Party • MP • 24 June 2026

    Read the full speech in Hansard ↗
  3. Julian Hill ★ Hill supports the bill, saying it will cut import red tape and business compliance costs, extend trade support for Ukraine, and maintain additional duties on Russian and Belarusian goods in response to the invasion of Ukraine.
    “I commend the bill to the House.”

    Australian Labor Party • MP • 27 May 2026

    Read the full speech in Hansard ↗

Coalition

2 speakers · 2 support

  1. Michael McCormack ★ McCormack says the coalition will support the bill because its largely technical tariff changes include continued duty-free treatment for Ukrainian goods, but argues it needs further scrutiny through a Senate inquiry.
    “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.”

    National Party • MP • 24 June 2026

    Read the full speech in Hansard ↗
  2. Andrew Hastie Hastie says the coalition will support the bill because it removes low-yield tariffs, reduces compliance burdens and extends tariff relief for Ukraine, while calling for greater clarity about the effects on domestic industry, revenue and consumers.
    “In essence, this bill is largely technical, but it gives effect to sensible objectives. It simplifies aspects of Australia's tariff system, removes low yield nuisance tariffs, reduces unnecessary compliance burdens and extends Australia's tariff relief for Ukraine. The coalition will therefore support the passage of the bill through the House. However, we say that the government should also better account for the detail behind it, particularly in relation to any recent consultation; the treatment of domestic industry concerns, especially in relation to advanced manufacturing; and the accuracy of any claims around the overall economic benefits. With that, I thank the House.”

    Liberal Party • MP • 24 June 2026

    Read the full speech in Hansard ↗

Record

Full record

Full chat