In brief
The 2026-27 Federal Budget measures regarding the Trusted Trader Program and removal of nuisance tariffs are intended to “remove barriers to trade”.
In depth
The 2026-27 Federal Budget measures regarding the Trusted Trader Program and removal of nuisance tariffs are intended to “remove barriers to trade”. The Government acknowledges that Australia’s tariff system and cross-border trade environment are “complex, and has imposed compliance costs on businesses, put upward pressure on consumer prices and is a drag on productivity growth.”
Abolishing more nuisance tariffs
The Government will abolish an additional 497 nuisance tariffs from 1 July 2026. This builds on the removal of 457 nuisance tariffs in July 2024. The Government states that this is intended to “streamline around AUD 23 billion worth of trade”. The Government will consult on abolishing additional tariffs to cut costs for Australian businesses.
The Government states this measure will eliminate tariffs on a wide range of imported goods including wine glasses, tyres, air conditioners, margarine and bitumen. This measure is estimated to decrease receipts by AUD 70 million over the five years from 2025–26.
Support for Ukraine – extending duty free access for goods imported from Ukraine
The Government continue to apply, for a further two years, a ‘free’ rate of duty to all goods that Ukraine produces or manufactures, except for excise-equivalent goods, such as certain alcohol, fuel, tobacco and petroleum products, which will remain subject to excise-equivalent customs duty.
Trusted Trader Program – expansion
The Government is also providing AUD 7.6 million over four years to expand the Australian Trusted Trader Program, which it says is intended to “reduce red tape at the border and provide faster access to markets for more trusted importers and exporters”. The Government considers this will simplify trade and ease regulatory burdens for more Australian businesses, strengthening competitiveness and enhancing productivity.
The Approved Exporter Scheme will be available to accredited Australian Trusted Trader exporters as an opt-in scheme, obviating the need to obtain Certificates of Origin to take advantage of tariff reductions under the ASEAN-Australia-New Zealand Free Trade Area and the Regional Comprehensive Economic Partnership Agreement.
A copy of the Federal Budget papers can be found here.
Charlie Berro, Associate, Jeremy Hyman, Head of Communications, and Sky Friend, Business Development Consultant, have contributed to this legal update.