The Australian Government will abolish the 3 per cent tariff on business inputs with no domestic substitutes imported under the tariff concession scheme effective from 11May2005, at a cost to revenue of $1.3 billion over five years.
Through sustained responsible fiscal management, the Government can completely remove the 3percent tariff.
Up until now, relief from the 3percent tariff was provided as free trade agreements were negotiated. This meant imports from the United States, Thailand and Singapore were not subject to the tariff.
Removing the tariff for all imports will reduce business costs and improve the international competitiveness of Australian business. This will help drive productivity improvements in the Australian economy, encourage investment and help underpin sustainable economic growth.
Goods, subject to a Tariff Concession Order, which are entered for home consumption before 11May2005 will attract the three per cent duty, while those entered for home consumption on and after 11May2005 will attract the free rate of duty.