Around 90% of imported goods now come into Australia tariff-free, with cars, furniture and knitted goods among the remaining 10% of goods on which tariffs apply.
The federal government currently collects around $1.5 billion from tariffs, or just 0.3% of its total tax take, and the amount that it collects will fall further as new free trade agreements (FTAs) are implemented.
As part of a report released today regarding assistance to business, the Productivity Commission (PC) has estimated the decline in revenue from tariffs as a result of additional FTAs being put in place will see the cost of collecting tariffs on remaining goods increase to $4.81 for every dollar of tariff revenue raised.
