This morning Freight & Trade Alliance (FTA) participated in a Productivity Initiative Workshop focused on Trade and "Nuisance Tariffs", convened by the Australian Border Force (ABF) alongside key industry stakeholders.
This engagement follows the release of the Productivity Commission's Trade and Assistance Review 2023–24 on 7 July 2025 and forms part of a broader government agenda, including the upcoming Productivity Roundtable to be chaired by Federal Treasurer Dr Jim Chalmers.
The Productivity Commission's review has reignited discussion around the removal of so-called nuisance tariffs – low-rate tariffs that contribute little revenue but impose unnecessary compliance costs and administrative burden on importers.
As a striking example, the report identifies:
315 tariff lines covering goods with a customs value of nearly $28 billion ($27,906,364,766), yet generating just $12.95 million in duty – an effective rate of 0.05%.
Significant reform has already taken place. As noted by the Treasurer in his 8 July press conference.
"We abolished almost 500 nuisance tariffs to get compliance costs down for business and to make sure the system works more efficiently and more effectively."
Dr Chalmers went on to say:
"Of course, the PC is going to argue that we go further and faster... I'm very enthusiastic about knocking off these nuisance tariffs where we can do that... That work is ongoing but a good contribution to the debate."
FTA supports this reform trajectory and welcomes the opportunity to contribute through forums such as the Productivity Initiative Workshop.
Feedback provided during the session centred around the practical impacts of residual tariffs, the costs associated with compliance, and opportunities to align trade settings with global best practice.
Further updates will be shared as outcomes from the Productivity Roundtable and related consultations progress.