By Tess Ikonomou in Canberra

Toothbrushes, sanitary products, washing machines and freezers may become cheaper as the government abolishes hundreds of nuisance tariffs.

Almost 500 nuisance tariffs will be scrapped in the new financial year, saving businesses more than $30 million in annual compliance costs.

In the single biggest reform in two decades, the Albanese government will eliminate 14 per cent of Australia’s tariffs on imported goods from July 1.

This includes hand tools, fridges, clothing and menstrual and sanitary products.

The change aims to make it easier to do business and boost productivity by cutting costs and reducing red tape.

The Productivity Commission defines nuisance tariffs as tariffs that raise little revenue, have negligible benefits for producers but impose compliance burdens on businesses.

Removing the tariffs will streamline $8.5 billion worth of trade and save business more than $30 million in compliance costs each year.

The full list of tariffs to be dumped will be finalised and revealed in the federal budget.

Consultation on the proposal is under way, with submissions closing in April.

Treasurer Jim Chalmers said the changes would ease the burden on small businesses and help to cut costs.

“This is meaningful economic reform that will deliver meaningful benefits to businesses of all sizes around Australia,” he said.

“These tariff reforms will be better for businesses, better for consumers and better for the economy.”

Australian Chamber of Commerce and Industry chief executive Andrew McKellar lauded the decision, saying it would reduce the cost of doing business and could lower costs for consumers.

“Removing these tariffs is an important step in simplifying the trade system and driving productivity,” he said.

“Ensuring our border systems are as efficient as possible is vital. It means Australian enterprises can spend more time on doing business rather than administering red tape.”

Trade Minister Don Farrell said one in four Australian jobs was trade-related.

“Trade that is simple, fast and cost-effective can boost Australia’s international competitiveness, help create jobs and reduce cost of living pressures,” he said.

Agriculture Minister Murray Watt said scrapping the tariffs was good for farmers and consumers.

Home Affairs Minister Clare O’Neil said the changes meant less complicated compliance for Australian businesses.