Access to refunds of indirect tax (including GST, fuel and alcohol taxes) under the Indirect Tax Concession Scheme (ITCS) has been extended. New access to refunds has been provided to the European Union, Italy and Chile relating to the construction and renovation of their current and future diplomatic missions and consular posts. Tuvalu will also have ITCS access extended to its High Commission, current and future consular posts and applicable accredited staff.
Source: Budget Paper No 2, p 13.
Building on the removal of 457 nuisance tariffs in July 2024, a second tranche of 497 nuisance tariffs will be abolished from 1 July 2026.
This measure will eliminate tariffs on a wide range of imported goods including wine glasses, tyres, air conditioners, margarine and bitumen.
This measure builds on the “Enhancing Productivity – abolishing nuisance tariffs” measure from the 2024–25 Budget.
Source: Budget Paper No 2, p 7.
The duty exemption for goods imported from Ukraine will be extended for a further 2 years to 3 July 2028.
The measure applies 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.
The measure builds on the 2023–24 MYEFO and 2024–25 Budget measures titled “Support for Ukraine – extending duty free access for goods imported from Ukraine”.
Source: Budget Paper No 2, p 9.
Funding will be provided, and measures will be introduced to combat the illicit tobacco market
Funding of $20.3 million will be provided by the government over 4 years from 2026–27 to combat the illicit tobacco market. It includes:
$14.0 million of additional funding in 2026–27 to boost state and territory compliance and enforcement capabilities to disrupt the illicit tobacco market, including transport, storage and disposal of seized illicit tobacco and e‑cigarettes
$5.2 million over 4 years from 2026–27 to undertake regular data collection, analysis and monitoring to understand nicotine and tobacco product use and markets
$1.1 million in 2026–27 to meet Australia’s international tobacco control obligations, including support for Pacific partners.
Through amendments to Treasury and Home Affairs portfolio legislation the government will strengthen and enhance law enforcement powers to investigate illicit tobacco‑related offending. These include increased monetary and imprisonment penalties for illicit tobacco offences, nationally consistent protective order power for restraining order applications, and expanded law enforcement powers to target proceeds of crime, unexplained wealth and tainted property.
This measure builds on the “Illicit Tobacco Compliance and Enforcement Package – direct and targeted enforcement to counter profits from illicit tobacco” measure from the 2025–26 Budget.
Source: Budget Paper No 2, p 115.