Customs Tariff Amendment (Incorporation of Proposals)

Current status

This bill is currently before Parliament.

Policy area

Budget, tax & economy

What does this bill do?

Importers of 497 product categories pay no general import duty from 1 July 2026, down from 5 per cent.

Why was it introduced?

The government said the 497 low-value import duties raised little revenue and made businesses complete paperwork to reach a zero rate already available through other arrangements. Together with 2024 changes, the removals cover almost 1,000 product categories, streamline about $23 billion in trade and are expected to save businesses $157 million each year. The government also said the Russia and Belarus duty responds to the invasion of Ukraine, while duty-free access helps Ukraine keep trading. It estimated the new tariff removals would reduce government receipts by $70.0 million over four years, while the Ukraine extension would reduce them by $2.0 million over two years.

Broader context

Australia already used the Customs Tariff Act 1995 to set import duties, but many low-value categories still carried nominal tariffs that added paperwork and compliance costs; more than 450 similar “nuisance” tariffs had been removed in 2024, while temporary Russia, Belarus and Ukraine measures needed updating. The bill incorporated tariff proposals by making about 500 categories permanently duty-free, aligning RCEP rates and extending the country measures, with the changes taking effect in stages through 2028.

Key criticism

Andrew Hastie (Liberal) said the government had not clearly explained how it chose the final list or assessed risks to local manufacturing. He said there was limited public detail about lost revenue, affected industries and business savings. He also warned that lower import costs might not reach shoppers at the checkout. Michael McCormack (National) called for a Senate inquiry to examine the bill's detail, timing, consultation and benefits.

Who supported it?

Julian Hill MP introduced this bill. Supportive speeches so far have come from Labor, Nationals, Liberal Party.

Introduced in House 27 May 2026

Passed House 24 June 2026

At second reading in Senate 25 June 2026

Not yet law —

Did it become law?

Not yet

Final passage

No final vote yet

The bill has not yet completed passage through Parliament.

Days since introduction

72 days

Updated 07 Aug 2026.

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

Importers of 497 product categories pay no general import duty from 1 July 2026, down from 5 per cent.
Importers using a major Asia-Pacific trade agreement get matching duty reductions, so its rates do not exceed the new general rates.
Importers of most Russian and Belarusian goods keep paying an extra 35 per cent duty until 24 October 2027.
Importers of most Ukrainian goods keep duty-free access until 3 July 2028, up from 3 July 2026.
Importers of certain Ukrainian alcohol, tobacco, fuel and other goods remain outside the full duty-free arrangement.
Importers of Peruvian goods face simpler rules from 1 January 2027. Outdated rate tables are removed without changing the duty payable.

Show source excerpts

1 Amendments of listed provisions—Schedule 3 (the rate or rates of duty in column 3) The headings or subheadings in Schedule 3 that are specified in the following table are amended by repealing each rate of duty in column 3 and substituting “Free”. Abolition of nuisance tariffs
Customs Tariff Amendment (Incorporation of Proposals) introduced text
Items 2 to 156 repeal the cells in column 3 of specified table items of Schedule 14 to the Customs Tariff Act and substitutes them with revised incremental phased customs duty rate reductions that apply to originating goods under the RCEP Agreement classified to the tariff heading or subheading in column 2 of that table item. The revised reductions retain the phasing rates that have commenced between 1 January 2022, the date that the RCEP Agreement entered into force, and 1 January 2026 (year 5) and inserts the reduction to the customs duty rate of ‘Free’ which occurs on 1 July 2026. This fo
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
Customs Tariff Act 1995 158 Paragraph 18A(5)(b) Omit “24 October 2025”, substitute “24 October 2027”.
Customs Tariff Amendment (Incorporation of Proposals) introduced text
Customs Tariff Act 1995 159 Paragraph 18B(1)(b) Omit “3 July 2026”, substitute “3 July 2028”.
Customs Tariff Amendment (Incorporation of Proposals) introduced text
However, this ‘Free’ rate of duty continues not to apply to goods classified under a tariff classification in Chapters 22 (Beverages, spirits and vinegar), 24 (Tobacco and manufactured tobacco substitutes etc.), 27 (Mineral fuels, mineral oils etc.), 29 (Organic chemicals), 34 (Soap etc.) or 38 (Miscellaneous chemical products) of Schedule 3 to the Customs Tariff Act for which a ‘Developing Country’ (DC) tariff rate is listed. The rate of duty for these goods would instead be calculated as the lower rate of either the ‘DC’ rate in column 3 of Schedule 3, or any concessional rate applying in
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum
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) introduced text

Context

Broader context for this bill

2024

More than 450 nuisance tariffs were abolished

The earlier reform removed low-revenue duties that imposed compliance burdens without materially protecting local producers.
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
28 Aug 2025

Extra tariffs on Russian and Belarusian goods were extended

Customs Tariff Proposal No. 2 of 2025, moved in the House on 28 August 2025, proposed extending the additional 35 per cent customs duty on most goods from Russia or Belarus - a measure first imposed in 2022 and incorporated by the bill.
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
14 May 2026

The government proposed removing about 500 nuisance tariffs

Proposal No. 1 of 2026 reduced the general duty on these tariff classifications to Free from 1 July 2026, so importers would no longer need concessions or preferential rates to avoid the duty.
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
27 May 2026

Julian Hill MP introduced the bill

The House of Representatives bill incorporated the tariff proposals into the Customs Tariff Act and added technical changes to record the new settings in legislation.
Hansard ↗
24 June 2026

House passes the bill

The House agreed to the bill at second and third reading, sending the tariff changes to the Senate for consideration.
Parliamentary timeline ↗
01 July 2026

About 500 tariff categories became duty-free

The general rate for the affected classifications was set to Free and RCEP-origin goods in those categories received the same duty-free treatment.
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
04 July 2026

Duty-free access for Ukrainian goods was extended

The reduced customs duties for certain goods made in Ukraine were continued for another two years, through 3 July 2028.
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗
24 October 2027 to 3 July 2028

The temporary country measures reach their final dates

The additional 35 per cent duty on most goods made in Russia or Belarus runs until 24 October 2027, while the Ukrainian tariff relief lasts through 3 July 2028.
Customs Tariff Amendment (Incorporation of Proposals) explanatory memorandum ↗

Legislative route

How did it move through Parliament?

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

Key criticism

The main case against this bill

The Coalition supported the bill. Hastie said low-revenue duties that create paperwork without protecting Australian industry should be removed, and he strongly supported continued relief for Ukrainian goods.

Unclear economic effects and consultation

Critics wanted clearer evidence about how the tariff removals would affect domestic industry, revenue and consumers, and closer scrutiny of the bill’s details and consultation process.

Raised by Coalition MPs Andrew Hastie and Michael McCormack Source ↗

Further sources

parlinfo.aph.gov.au ↗

Votes

Recorded votes

No recorded votes have been found yet for this bill.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Julian Hill

Australian Labor Party • MP 27 May 2026

Hill supports the bill because it will cut import compliance costs and trade barriers, extend penalties on Russian and Belarusian goods, and maintain tariff relief for Ukraine.

Read in Hansard ↗

Michael McCormack

National Party • MP 24 June 2026

McCormack says the coalition will support the bill, including its tariff removals and continued duty-free treatment for Ukrainian goods, but wants a Senate inquiry to scrutinise the details and consultation.

Read in Hansard ↗

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 maintains trade measures supporting Ukraine and penalising Russia and Belarus.

Read in Hansard ↗

Andrew Hastie

Liberal Party • MP 24 June 2026

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 effects on domestic industry, revenue and consumers.

Read in Hansard ↗

All speeches by bloc

Tania Lawrence ★ Lawrence supports the bill because it removes inefficient tariffs and red tape for businesses, reduces costs for households, and maintains trade measures supporting Ukraine and penalising Russia and Belarus.

“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 ↗
Julian Hill ★ Hill supports the bill because it will cut import compliance costs and trade barriers, extend penalties on Russian and Belarusian goods, and maintain tariff relief for Ukraine.

“I commend the bill to the House.”
Australian Labor Party • MP • 27 May 2026
Read the full speech in Hansard ↗
Tim Ayres Ayres supports the bill because it cuts import duties and business compliance costs, extends punitive tariffs on Russian and Belarusian goods, and maintains duty-free treatment for most Ukrainian goods.

“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 ↗

Michael McCormack ★ McCormack says the coalition will support the bill, including its tariff removals and continued duty-free treatment for Ukrainian goods, but wants a Senate inquiry to scrutinise the details and consultation.

“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 ↗
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 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

Key dates and decisions

All parliamentary events

Committee activity