In contemporary Australia, when people return from travel overseas they have to fill in a customs declaration form, detailing certain items they want to bring into the country. When they arrive at the airport, they have to 'go through customs' and might have their suitcases checked for those items that have been declared (or contraband substances that have not). Up to a prescribed limit, some items are allowed into Australia 'duty free', but over that duty-free limit, travellers will have to pay to bring their goods into Australia.

When importers bring goods into Australia, they may have to pay customs duties (tariffs) which increase the prices of the foreign products and have the effect of making similar, Australian-made goods more competitive, protecting Australian manufacturers. Similarly, in Australia prior to Federation, colonial governments imposed tariffs on imports from other colonies.

Tariffs were a major source of income for colonial governments. Consequently trade between the colonies, together with the ideals of protectionists versus those of free traders, formed a topic of debate that raged for many years. Tariffs, paid on goods crossing colonial borders, were a source of tension between colonists. It was claimed that intercolonial tariffs made economic enemies of people from different colonies. Despite repeated attempts to resolve free-trade and protectionist differences, it seemed that only Federation was going to silence the squabbling.

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See also Outcomes – Tariffs