Australia will extend tariff relief to the Ukraine to demonstrate “unwavering support” for the European nation following Russia’s invasion.
Treasurer Jim Chalmers met with Ukrainian Minister of Finance Sergii Marchenko in the United States on April 18, where he discussed Australia’s continued support.
The duty exemption will be expanded by two years until July 3, 2026, for all goods that are manufactured and produced in Ukraine.
“Australia is committed to supporting Ukraine’s economy and its continued participation international trade as it deals with the ongoing, devastating effects of Russia’s invasion,” the ministers said.
“The tariff relief is one part of Australia’s package of defence, economic and humanitarian assistance to Ukraine. Australia’s overall support to Ukraine is valued at approximately $960 million, including $780 million in assistance for Ukraine’s Armed Forces.”
Mr. Chalmers told his Ukraine counterpart the tariff relief was a “demonstration of Australia’s continued and unwavering support for Ukraine.”
Ukraine’s finance minister also talked up the relationship between the two nations in a post to X (formerly known as Twitter) featuring a photo with Australia’s treasurer.
The discussions took place amid the G20 finance ministers and central bank governors meeting, and the International Monetary Fund spring meetings in Washington.
The foreign aid support includes $61 billion for Ukraine, $26 billion for Israel, and $8.12 billion for Taiwan and the Indo-Pacific to counter China.
Speaker Mike Johnson and House Republican leaders released the package on April 17, with the backing of the White House.
“I strongly support this package to get critical support to Israel and Ukraine, provide desperately needed humanitarian aid to Palestinians in Gaza, and bolster security and stability in the Indo-Pacific” U.S. President Joe Biden said.
Mr. Biden said Israel is facing unprecedented attacks from Iran, and Ukraine is facing “continued bombardment from Russia.”
However, President Donald Trump questioned the United States for providing more support to the Ukraine War than Europe in a post to Truth Social.
Chalmers Aiming For a Budget Surplus in May
Meanwhile, Mr. Chalmers indicated he is aiming for a surplus when he delivers the Federal Budget on May 14.“Our budget surplus in the year that we’re in now is still a high priority for us because it’s one of the ways that we put downward pressure on inflation. And it’s inflation which is putting all this cost of living pressure on families and pensioners right around Australia,” Mr. Chalmers said.
Opposition Wants Budget to Focus on Cost of Living
However, Liberal Party Shadow Treasurer Angus Taylor raised concerns about the cost of living crisis ahead of the budget during a radio interview with 5AA on April 17.He said the focus of the government needs to be making sure they are attacking and beating the cost of living crisis and the cost of doing business.
“Instead of raiding household budgets to support the government budget, the government needs to make sure we’ve got an economy where people can get ahead, where we’ve got sensible energy policies that bring down energy prices, where we’ve got sensible industrial relations which is good for employees and employers, we’re approving critical projects rather than clamming up all of the approval processes,” Mr. Taylor said.
In a separate interview with Sky News on April 19, Mr. Taylor claimed the Federal government is “spending money in ways that they shouldn’t,” particularly in an inflationary environment.
“We want to see a low inflation, lower interest rate, a high growth economy, but that is not where we’re at right now. And to put that in perspective, GDP per capita has stopped in this country, it’s going backwards,” he said.
“Three consecutive quarters, that is a family recession, people are experiencing a recession in this country on top of inflation that’s well above the target rate.”
