Now lawBusiness & Trade Introduced in the House of Representatives, 27 May 2026

About 500 small import taxes are now scrapped

This law locks in import tax changes the government had already started. It scraps hundreds of small import taxes. It keeps the extra tax on Russia and Belarus, and keeps Ukrainian goods tax-free.

Official name: Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 1) 2026

Who it affects

• Australian businesses that import goods: About 500 kinds of goods, from foods to air conditioners, now pay no general import tax. They need less paperwork.
• Importers of goods from Russia or Belarus: They keep paying an extra 35 per cent import tax for two more years.
• Ukrainian sellers and their Australian buyers: Most Ukrainian goods keep coming in tax-free for another two years.
• Importers using a big Asia-Pacific trade deal: Goods under this deal now also drop to zero tax. So they are not taxed more than other goods.

Quick tariff changes need backing

Australia charges a tax on some goods when they come into the country. It is called an import tax, or customs duty. The rates are set in the Customs Tariff Act 1995.

Sometimes the government needs an import tax change to start fast. It does this with a notice put before the House of Representatives. That is the house of Parliament where the government sits. The change starts straight away. Officers are protected by law while they collect the new rate.

A notice like this is only a stopgap. Parliament then has to pass a law to make the change stick. This law does that for three notices made between August 2025 and May 2026. It also tidies up some old rules.

About 500 tariffs scrapped

Most goods coming into Australia pay a general import tax of either 5 per cent or zero. In real life very few importers pay the 5 per cent. They usually get a lower rate through a free trade deal or a special tax break.

The government calls these nuisance taxes. It says they raise little money and do little to protect Australian makers. It says they make businesses fill in extra forms.

In the 2026-27 Budget the government said it would scrap the general import tax on about 500 kinds of goods. These range from foods to air conditioners. In 2024 it had already scrapped over 450 nuisance taxes.

From 1 July 2026, goods on that list pay no general import tax. Say you run a small shop that brings in kitchen goods. They come from a country with no trade deal with Australia. If those goods are on the list, you now pay no import tax at all.

Trade deal kept in step

Australia is part of a trade deal called the Regional Comprehensive Economic Partnership. It covers countries across Asia and the Pacific. It started on 1 January 2022.

Under this deal, import taxes on some goods were being cut a bit each year. Once the general rate became zero, some of these goods would have been taxed more than others. That would break Australia's promise to its trade partners.

So the law keeps the cuts made up to 1 January 2026. Then it drops those goods to zero on 1 July 2026. The government's example is tomato juice. It was going to reach zero in year 7 of the deal. Now it reaches zero in the middle of year 5.

Russian goods still taxed extra

Since 2022, Australia and other countries have charged extra import taxes on goods from Russia and Belarus. The government says this answers Russia's illegal invasion of Ukraine. It says it also protects Australia's safety.

Most goods made in Russia or Belarus pay an extra 35 per cent on top of the normal tax. This applies even if the goods are shipped through another country. It does not matter when they were made. Some special tax breaks still apply. Goods that left for Australia before 25 April 2022 are not caught.

The extra tax was due to end on 24 October 2025. This law stretches it to 24 October 2027. That takes it from 42 months to 66 months in total. A notice first made this change on 28 August 2025. So this part is backdated to 25 October 2025.

Ukrainian goods stay tax-free

Since 4 July 2022, most goods made in Ukraine have come into Australia with no import tax. The government says this helps Ukraine keep trading while it defends itself.

That break was due to end on 3 July 2026. This law stretches it to 3 July 2028. That takes it from 48 months to 72 months.

Some goods are left out. These are drinks and spirits, tobacco, fuels and oils, some chemicals, and soaps. They still pay a tax, so local makers of alcohol, fuel and tobacco are not undercut.

Old Peru rules cleared out

Australia has a free trade deal with Peru. It was signed in Canberra on 12 February 2018. Import taxes on some goods from Peru were cut step by step. All of them reached zero by January 2023.

The old step-down rates stayed in the law for four years. That is because importers can claim refunds for up to four years. That time is now up. From 1 January 2027 the law deletes those used-up rules. The goods still pay zero.

Start date

Each part starts on its own date. The changes to nuisance taxes and the Asia-Pacific deal start on 1 July 2026. The Russia and Belarus change is backdated to 25 October 2025. The Ukraine change starts on 4 July 2026. The Peru clean-up starts on 1 January 2027.

The bill was brought into the House of Representatives on 27 May 2026. It passed there on 24 June. The Senate, the other house of Parliament, passed it on 20 August 2026.

The Governor-General signed it into law on 26 August 2026. The Governor-General is the King's representative in Australia. It became Act No. 67 of 2026.

How they voted

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum

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