Tariff Abolition Boosts Economic Productivity
The Business Council of Australia has welcomed the Albanese Government’s plan to abolish a further 500 nuisance tariffs, describing the move as a practical reform that will ease pressure on businesses and support stronger economic outcomes.
Business Council Chief Executive Bran Black said the announcement delivers on a key recommendation from the BCA’s Better Regulation report and reflects the momentum built through this month’s Economic Reform Roundtable.
“This is a smart and sensible decision that will help clear away outdated barriers and make the economy work more efficiently,” Mr Black said.
“We commend Treasurer Jim Chalmers for continuing to act on common-sense reforms that reduce costs, support investment and improve Australia’s competitiveness.
“Removing low-value, high-cost tariffs is a great start and now we need to look at further reform to address productivity so we can increase real wages and lift living standards.”
Mr Black said the economic rationale for removing nuisance tariffs is clear.
“Analysis by the Productivity Commission shows that for every dollar collected in tariff revenue, the broader economy can lose up to around $1.60 – that’s a trade-off no modern economy can afford,” he said.
“This reform is something the Business Council has called for directly in our recent Better Regulation report, and we pushed hard for it in the room at the Economic Reform Roundtable last week.”
The Business Council also welcomed the Government’s ongoing consultation process and the broader effort to modernise Australia’s trade settings.
“We support the Government’s continued engagement with business, and this is a positive example of what can be achieved when there’s clear alignment around practical reform,” Mr Black said.
https://www.bca.com.au/abolishing_tariffs_a_good_step_towards_a_more_productive_economy