The tariff war developing between USA and China seems to be hotting up.
As if Australia is trying to get in on the act, the new budget biosecurity levy, a broad-based tariff on all imports, looks very much like Australia’s first salvo in the global tariff war.
This is a tax on everything: building products, cement, fertiliser, fuel, cars and household goods, whether they present a biosecurity risk or not. These items are essential to day to day life.
And it’s not even efficient revenue collection – everyone ends up worse off!
Australian consumers will pay at least twice as much as the Government collects, through this inefficient and broadly targeted new tax. This is because of the multiplier effect of administrative charges down through the supply chain.
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