Portfolio — 27 May 2026

Assistant Minister Julian Hill moved the second reading of the Customs Tariff Amendment (Incorporation of Proposals) Bill (No. 1) 2026 in the House on 27 May, a bill that consolidates three distinct tariff proposals into a single legislative instrument [TA-260527-house-ef5cc5d1c124:s002]. The most commercially significant element repeals general duty rates across approximately 500 tariff classifications — covering foodstuffs, homewares, clothing, and personal hygiene items — and replaces them with a free rate, cutting the effective duty from five per cent to zero [TA-260527-house-ef5cc5d1c124:s002].

The government estimates that these reductions, taken together with comparable 2024 amendments, will streamline around $23 billion of trade and deliver roughly $157 million per year in compliance savings to Australian businesses [TA-260527-house-ef5cc5d1c124:s002]. The bill's remaining two measures are explicitly geopolitical in character. The 35 per cent additional customs duty on goods originating from Russia and Belarus is extended for a further 24 months, with Hill framing the measure as aligning Australia with like-minded countries in response to Russia's invasion of Ukraine [TA-260527-house-ef5cc5d1c124:s002].

Simultaneously, a temporary free rate for Ukrainian goods — excluding petroleum, fuel, tobacco, and alcohol — is prolonged for another 24 months to support Ukraine's continued participation in international trade [TA-260527-house-ef5cc5d1c124:s002]. Minor technical amendments round out the bill, adjusting preferential rates under the Peru–Australia Free Trade Agreement and removing spent phasing rates.

Taken as a whole, the bill reflects a dual-track approach: lowering trade barriers and reducing compliance burdens for domestic business on one hand, and deploying tariff instruments as a tool of foreign policy on the other. The sanctions extension and Ukrainian trade preference are the most consequential provisions by duration and foreign-policy signal, embedding Australia's Ukraine posture in domestic trade law for at least another two years.