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. Â This is because of the multiplier effect of administrative charges down through the supply chain.
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