WORLD TRADE
ORGANIZATIONG/SCM/N/95/AUS
10 September 2003
(03-4708)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
AUSTRALIA
The following communication, dated 8 September 2003, has been received from the
Permanent Mission of Australia.
_______________
The following notification provides details on federal and state programmes for financial
years (FY) 2001/2002 and 2002/2003 (the fiscal year being from 1 July to 30 June).  In some cases, it
is arguable whether these programmes are specific within the meaning of the Agreement on Subsidies
and Countervailing Measures.  However, these have been included for the sake of transparency and
without prejudgement of the legal status, effects or the nature of the measures under the Agreements.
TABLE OF CONTENTS
FEDERAL PR OGRAMMES............................................................................................................. ...3
I. BOOKS ........................................................................................................................ ..............3
II. DAIRY ....................................................................................................................... ................4
III. INVEST AUSTRALIA ........................................................................................................... ..6
IV. PASSENGER MO TOR VEHI CLES ......................................................................................8
V. PHARMACEUT ICALS ...........................................................................................................9
VI. PIG MEAT .................................................................................................................... ..........10
VII. SHIPBUILDING............................................................................................................... ......11
VIII. SUGAR ..................................................................................................................... ...............13
IX. TEXTILE, CLOTHI NG & FOOTWEAR............................................................................14
X. WHEAT ........................................................................................................................ ...........15
SUB-FEDERAL PR OGRAMMES.....................................................................................................16
I. AUSTRALIAN CAPI TAL TERRI TORY............................................................................17
II. NEW SOUTH WALES...........................................................................................................18
III. NORTHERN TERRITORY ..................................................................................................20IV. QUEEN SLAND .................................................................................................................. .....21G/SCM/N/95/AUS
Page 2
V. SOUTH AUS TRALIA............................................................................................................23
VI. TASMANIA.................................................................................................................... .........24
VII. VICTORIA................................................................................................................... ...........25
VIII. WESTERN AUSTRALIA......................................................................................................26G/SCM/N/95/AUS
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FEDERAL PROGRAMMES
I. BOOKS
(a) Printing Industry Competitiveness Scheme
 1. Title of the Subsidy
 
 Printing Industry Competitiveness Scheme
 
2. Period covered by the notification
  
Financial year 2001/2002 and financial year 2002/2003.  The scheme ceased on 30 June 2003.
Claims for books printed up to midnight 30 June 2003 are eligible.
 
3. Policy objective and/or purpose of the subsidy
The scheme was designed to improve the competitiveness of the Australian book printing
industry and reduce the effect of negative assistance on the industry by compensating book printersfor the cost impact of duty on paper inputs.
4. Background and authority of the subsidy
The Scheme was approved and announced by the Minister for Industry, Science and
Resources on 16 December 1998.  The budget measures  for the Department of Industry, Science and
Resources, Budget Paper No. 2, 1999-2000, provided the authority for the scheme.
5. Form of the subsidy
Under the scheme, book printers were able to claim payment for a proportion of the cost of
paper used in the production of eligible books.  All paper used, whether actually imported or not, and
whether duty was actually paid or not, were eligible for compensation.
6. To whom the funding was provided
The bounty was paid to book printers for eligible book production.
7. Level of subsidy per unit
Four per cent of the paper purchase price for all paper used in the production of eligible
books.  The budget outlay for financial year 2001/2002 was $A2.178 million and for $A1.937 millionfor financial year 2002/2003.  The overall programme cost was $A6 million over three years.
8. Duration
The scheme commenced on 1 January 1999 and ceased to operate on 30 June 2003.
9. Statistical data permitting an assessment of the trade effects
The bulk of book production was destined for the domestic market.G/SCM/N/95/AUS
Page 4
(b) Book Production - Enhanced Printing Industry Competitiveness Scheme
1. Title of the subsidy
 
 Book Production - Enhanced Printing Industry Competitiveness Scheme (EPICS) Grants
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of subsidy
  
The scheme was designed to encourage the development of the Australian book production
industry by providing grants that encourage innovation, business development and skills formation.
 
4. Background and authority for the subsidy
 
 The Appropriation (Supplementary Measures)  Act (No.1) 1999 enacted in November 1999
provided authority for the scheme.  It is administered by AusIndustry.
 
5. Form of the subsidy
 
 Under the scheme, grants were awarded competitively on the basis of eligibility and merit
criteria of projects which best meet the objectives of the scheme and comply with the eligibility
criteria.
 
6. To whom the funding was provided
 
 Funding was available to firms involved in the book production process as well as to
associated industry, research and educational bo dies.  Approximately 104 book production firms have
qualified for assistance, with other firms in the supply/value chain benefiting from participation in the
projects awarded grants under the scheme.
 
7. Level of subsidy per unit
 
 The budget outlay for financial year 2001/2002 was $A13.107 million and A$11.885 million
for financial year 2002/2003.
 
8. Duration
 
 The scheme commenced from 1 July 2000 and is due to close on 30 June 2004.
 
9. Statistical data permitting an assessment of the trade effects
The bulk of book production was destined for the domestic market.
II. DAIRY
1. Title of the subsidy
Dairy Industry Adjustment Package (DIAP)
 G/SCM/N/95/AUS
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2. Period covered by the notification
Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
The DIAP is designed to facilitate adjustment in the dairy industry, as a result of complete
deregulation of the market milk sector.
 
4. Background and authority for the subsidy
The Commonwealth Government’s Dairy Indus try Adjustment Package was developed to
assist the dairy industry adjust from the previous State-regulated drinking milk arrangements to a
commercially focused system.
The DIAP was introduced from the beginning of the 2000/01 financial year as part of the
deregulation process.
Payments are administered to eligible dairy farmers by the Dairy Adjustment Authority
(DAA) which was established under the Commonwealth Government’s Dairy Industry Adjustment
Act 2000.
 
5. Form of the subsidy
The assistance is provided as a Government grant to eligible dairy producers.  There is no
obligation for dairy producers to continue in the industry.
The payment is based on market milk deliveries during 1998/99, and is paid quarterly over
eight years beginning with the 2000/2001 financial year.
 
6. To whom the funding is provided
The funding is provided to eligible dairy producers based on market milk deliveries during
the 1998/99 FY.
 
7. Level of subsidy per unit
 
 Year  Milk Production (million litres)  Support per litre (cents/litre)
 2001/2002  11,271  N/A
 2002/2003  10,142 (estimate)  N/A
 
 Cost per unit value has not been provided as the financial assistance is based on historical milk
production levels and is not related to production in the current or future years.  An assessment of cost
per unit is therefore an inappropriate measure of assistance in this case.
 
8. Duration
 
 From 8 July 2000 for a period of eight years.
 G/SCM/N/95/AUS
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9. Statistical data permitting an assessment of the trade effects
Year Milk Production
(million litres)Total product Specific
AMS (A$ million)
2001/2002 11,271 303.72
 2002/2003  10,142  209.71
Reference year:2000/200110,556 200.67
Producers are paid quarterly over the eight years beginning with the 2000/01 financial year.
 
 
III. INVEST AUSTRALIA
(a) Invest Australia:  investment incentives
1. Title of the subsidy
 
 Invest Australia:  Strategic Investment Incentives
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
  
The Australian Government will consider the provision of investment incentives to strategic
investment projects in limited and special circumstances where the project would generate significant
net economic and employment benefits for Australia.
 
4. Background and authority for the subsidy
 
 Invest Australia is the Government’s investment agency which was established in 1997 and is
located in the Department of Industry, Tourism a nd Resources.  The Strategic Investment Coordinator
advises the Australian Government Cabinet, through the Prime Minister, on the possible use of
incentives for strategic investment projects.  Incentives for major investment projects are considered
in limited and special circumstances and on a case by case basis, taking into account a published set ofcriteria.  The criteria include a requirement that the investment would not be likely to occur in
Australia without the incentive, is viable withou t subsidy, and provides significant net economic
benefits for Australia (see G/SCM/Q2/AUS/20 of 13 August 2001).  Funding is allocated through the
Budget Appropriation Bills in relevant years.
 
5. Form of the subsidy
 
 Incentives could include grants, tax relief or the provision of infrastructure services such as
roads, water supply, gas supply and power generation distribution.
 
6. To whom and how the subsidy is provided
 
 Three projects were provided in principle assistance during financial year 2001/2002.  The
projects related to energy generation infrastructure and establishment of a research foundation for a
sustainable minerals industry; energy generation and water infrastructure for a methanol plant and
research into synthetic gas technologies; and multi-user infrastructure including heat recovery, waterG/SCM/N/95/AUS
Page 7
recycling facilities and raw materials bulk handling facility related to an iron ore processing plant.
There were no new projects approved in principle for assistance during the financial year 2002/2003.
 
7. Level of subsidy per unit
 
 Assistance to the three projects for the financial years 2001/2002 and 2002/2003 amounted to
approximately A$45.6 million.
 
8. Duration of the subsidy
 
 The programme commenced in December 1997.  It as an ongoing programme.  The assistance
is only in limited and special circumstances for strategic investment projects.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
(b) Invest Australia:  Feasibility Study Fund
1. Title of the subsidy
 
 Invest Australia Feasibility Study Fund
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003
 
3. Policy objective and/or purpose of the subsidy
The Feasibility Study Fund was a service offered by Invest Australia to attract prospective
investors to establish or expand business operations in Australia.  The programme provided grants of
up to $100,000 to eligible companies, domestic or foreign, towards the conduct of feasibility or pre-
feasibility studies into new investment projects in Australia.  The objectives of the Fund were to:
• Increase the number of investments in Australia in new projects in value-adding,
manufacturing or service industries
• Encourage prospective domestic and foreign investors to critically assess the viability of new
business opportunities in Australia
• Produce feasibility studies on which investment  decisions can be based and funding sought
for a project
• Link the commonwealth government's investment attraction, promotion and facilitation
services with those of the State and Territory governments.
4. Background and authority for the subsidy
 
 The FSF programme originated in 1990 from a decision by Commonwealth and State Trade
and Industry Ministers.  The programme operated as a joint Commonwealth-State programme.  Invest
Australia was the administrative authority which assessed grant applications.
 
5. Form of the subsidy
 
 Grants.G/SCM/N/95/AUS
Page 8
 
6. To whom and how the subsidy is provided
 
 To be eligible, a company needed to demonstrate that the proposed study will assess the
commercial viability of a new private sector inve stment proposal in Australia; will be undertaken by
an independent consultant; and would be unlikely to proceed without government support.  The
company needed to demonstrate economic and industry benefits and commercial potential of the
project proceeding; the management capability to develop the project; and a financial and corporate
commitment to the project. The company mu st match the Commonwealth grant funding.
 
7. Level of subsidy per unit
 
 In financial year 2001/2002, a total of A$ 105,000 of grant payments was made to five
companies.  The nature of the projects under consideration related to eco-tourism, transport, minerals
processing and hydro-dynamic R&D capabilities.  No payments have been made since June 2002.
 
8. Duration of the subsidy
 
 The programme ceased on 30 June 2002.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
IV. PASSENGER MOTOR VEHICLES
1. Title of the subsidy
 
 Automotive Competitiveness and Investment Scheme (ACIS)
 
2. Period covered by the notification
  
Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 ACIS is to promote competitiveness and enc ourage investment, R&D and innovation in the
Australian automotive industry.
 
4. Background and authority for the subsidy
 
 ACIS Administration Act  1999 (No. 139, 1999); ACIS (Unearned Credit Liability) Act  1999
(No. 140, 1999); and Customs Tariff Amendment (ACIS Implementation) Act  1999 (No. 141, 1999)
establish the Automotive Competitiveness and Investment Scheme.  The administration/authority forthe allocation of benefits under the scheme is the Department of Industry, Tourism and Resources.
 
5. Form of the subsidy
 
 Participants receive duty credits which can be used to pay customs duty on certain eligible
imports.  Duty credits can also be sold or transferred to a third party.
 G/SCM/N/95/AUS
Page 9
6. To whom and how the subsidy is provided
 
 Participants may be motor vehicle producers (MVPs), automotive component producers,
automotive machine tools and tooling producers or  automotive service providers. For MVPs, duty
credits are earned on the basis of a percentage of eligible production;  and eligible investments inplant and equipment.
 
 For other participants, duty credits are earned on the basis of a percentage of eligible
investments in plant and equipment and eligible investments in research and development.
 
7. Level of subsidy per unit
Each participant’s total benefits under ACIS are limited to 5 per cent of its eligible sales for
the preceding year.
Payments made in financial year 2001/2002 were A$594.59 million.
Payments made in financial year 2002/2003 were A$569.137 million.
8. Duration of the subsidy
 
 1 January 2001 to 31 December 2015.  In December 2002, the Government announced a post-
2005 assistance package for the automotive industry which extends ACIS to 2015.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
V. PHARMACEUTICALS
1. Title of the subsidy
 
 Pharmaceutical Industry Investment Programme (PIIP)
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003
 
3. Policy objective and/or purpose of the subsidy
 
 The scheme is designed to compensate the pharmaceutical industry, in part, for the impact of
the Federal Government exercising its monopsony purchasing power under the Pharmaceutical
Benefits Scheme which suppresses pharmaceutical prices paid to suppliers.
 
4. Background and authority for the subsidy
 
 The scheme was approved by the Federal Government and announced by the Minister for
Industry, Science and Tourism in April 1997.  The programme is administered by the Pharmaceutical
Benefits Pricing Authority.
 G/SCM/N/95/AUS
Page 10
5. Form of the subsidy
 
 Participating companies are paid higher prices on nominated products supplied to the
Pharmaceutical Benefits Scheme in return for those companies meeting commitments to undertake
eligible activities in Australia, including production value added and research and development.
 
6. To whom the funding is provided
 
 Participating pharmaceutical companies
 
7. Level of subsidy per unit
 
 Payment is calculated at 20 per cent of eligible activity which is the difference between total
forecast activity in a given year and a defined base level of activity.  Benefits will amount to
$A300 million over the life of the scheme.  Budget outlays for the financial year 2001/2002 were
$A50.3 million and for the financial year 2002/2003 were A$64.7 million.
 
8. Duration
 
 The scheme will operate from 1 July 1999 until 30 June 2004.  On 13 May 2003 the
Government announced a new programme for pharmaceuticals R&D only (the Pharmaceuticals
Partnerships Programme (P3)), to commence on 1 July 2004.
 
9. Statistical data permitting an assessment of the trade effects
Unknown.
VI. PIG MEAT
1. Title of the subsidy
Pigmeat Processing Grants Programme
2. Period covered by this notification
Financial year 2000/2001 and financial year 2001/02.
3. Policy objective and or purpose of the subsidy
The programme’s objective was to assist pigmeat processors to upgrade their plants and
equipment and/or construct new works to ach ieve “best practice” processing standards.
4. Background and authority for the subsidy
The Programme was commissioned in July 1998 as  part of the Commonwealth Government’s
Pork Industry Restructure Strategy under the authority of a Cabinet decision.
5. Form of the Subsidy
The assistance was provided in the form of a Go vernment grant to eligible pigmeat processors.G/SCM/N/95/AUS
Page 11
6. Provision of the Subsidy
A maximum grant of 10 per cent of the associated  costs of new plants and/or equipment was
granted to processors whose applications  met the specified eligibility criteria.
7. Value of the Subsidy
Period Outlay (A$ million)
1 July 2000-30 June 2001 2.9
1 July 2001-30 June 2002 1.2
1 July 2002-30 June 2003 nil
Cost per unit value has not been provided as  the financial assistance was not related to
production in the current or future years.  An asse ssment of cost per unit is therefore an inappropriate
measure of assistance in this case.
8. Duration
The programme was introduced in 1998 and c oncluded in 2000/01, although a final payment
was made for an overdue programme in 2001/02.
9. Statistical data permitting an assessment of the trade effects
Year Production (kt) A ssistance (A$ million)
2000/01 365 2.9
2001/02 386 1.2
VII. SHIPBUILDING
(a) Shipbuilding Bounty
1. Title
 
 Shipbuilding bounty
 
2. Period covered by the notification
 
Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose
The bounty is designed to facilitate adjustment in the shipbuilding industry.  It is paid as a
bounty on production and enables shipbuilding firms to compete against heavily subsidised rivals.
4. Background and authority for the scheme
The Bounty (Ships) Amendment Act  (No. 14, 1999).  The programme is administered by
AusIndustry.G/SCM/N/95/AUS
Page 12
5. Form of the subsidy
Bounty on eligible production costs.
6. To whom the funding is provided
The bounty is paid to registered shipbuilders on eligible vessels (between 150 and 20,000
gross construction tons).
7. Level of subsidy per unit
The rate of bounty on eligible costs was 3 per cent.
8. Duration
The bounty terminated on 31 December 2000.  A phasing out arrangement applies to vessels
contracted for sale on or before 31 December 2000, and delivered on or before 31 December 2003.
9. Statistical data permitting an assessment of the trade effects
Bounty payments under the programme are as follows:
Source:  Parliamentary Budget Papers and ISR Annual Reports
(b) Shipbuilding Innovation Scheme
1. Title
 
 Shipbuilding Innovation Scheme
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and /or purpose
  
The Shipbuilding Innovation Scheme is designed to improve the competitiveness of the
Australian shipbuilding industry by encouraging investment in research, development and design.
 
4. Background and authority for the scheme
 
 The Bounty (Ships) Amendment Act  (No. 14, 1999).
 
5. Form of the subsidy
 
 Payment of a subsidy for eligible research and development expenditure.Year $ million
2000-01 13.5
2001-02 5.5
2002-03 13.3G/SCM/N/95/AUS
Page 13
 
6. To whom the funding is provided
 
 The Shipbuilding Innovation Scheme is available to firms engaged in the construction of
eligible vessels (between 150 and 20,000 gross construction tons).
 
7. Level of subsidy per unit
Shipbuilders are entitled to a benefit equivalent to 50 per cent of expenditure in eligible
innovation activities.  Payments under this scheme are not permitted to exceed 2 per cent of the total
eligible production costs of a bountiable vessel.
8. Duration
 
 
 
 
 
 The scheme will operate for the period 1 July 1999-30 June 2004.
 
9. Statistical data permitting an assessment of the trade effects
Not known.  The scheme is intended to enable Australian shipbuilders to adopt best practice
product and process technologies.
VIII.  SUGAR
1. Title of the subsidy
Sugar Industry Assistance Programme - Canegrowers
2. Period covered by this notification
Financial year 2000/2001 and financial year 2001/2002.
3. Policy objective and or purpose of the subsidy
Short term interest rate subsidy assistance to can egrowers facing financial hardship as a result of
a combination of adverse seasonal conditions, low wo rld sugar prices and sugar content levels, orange
rust and rat plagues over the last three years.
4. Background and authority for the subsidy
The subsidy was introduced in September 2000 under the authority of a Cabinet decision.
5. Form of the Subsidy
The assistance was provided in the form of a Government grant to producers.Year A$million
2000-01 7.8
2001-02 4.0
2002-03 8.7G/SCM/N/95/AUS
Page 14
6. Provision of the Subsidy
The assistance was provided as a Government grant to eligible sugar producers, and was
based on income and asset tests.
7. Value of the Subsidy
Period Outlay (A$ million)
1 July 2000-30 June 2001 16.3
1 July 2001-30 June 2002 9.0
Cost per unit value has not been provided as th e financial assistance is not related to production
in the current or future years.  An assessment of cost per unit is therefore an inappropriate measure of
assistance in this case.
8. Duration
The programme was introduced in September 2000 and concluded in June 2002.
9. Statistical data permitting an assessment of the trade effects
Year Production (kt) A ssistance (A$ million)
2000/01 4 162 16.3
2001/02 4 987 9.0
IX. TEXTILE, CLOTHING & FOOTWEAR
1. Title of the subsidy
 
 Textile, Clothing and Footwear Strategic Investment Programme (TCF (SIP) Scheme)
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003
 
3. Policy objective and/or purpose of the subsidy
  
The programme is designed to foster the development of sustainable, competitive TCF
industries in Australia by encouraging additional investment and innovation.
 
4. Background and authority for the subsidy
 
 Textile, Clothing and Footwear Strate gic Investment Programme Act 1999  (No. 182, 1999).
It is administered by the Department of Industry, Tourism and Resources.
 
5. Form of the subsidy
 
 The programme provides incentives in the form of grants to TCF entities.
 G/SCM/N/95/AUS
Page 15
6. To whom and how the subsidy is provided
 
 TCF entities must register for the Scheme.  Grants are in respect of new TCF plant/building
expenditure, TCF R&D, TCF production, second-hand TCF plant expenditure and in respect of TCF-
dependent communities.  They are limited to a percentage of eligible expenditure.
 
7. Level of subsidy per unit
 
 Benefits under the TCF (SIP) Scheme will be capped at $A678 million over five years.  Each
participant's total benefits under the TCF (SIP) Scheme in any one year will be limited to 5 per cent of
total eligible revenue in the 12 months preceding the claim year.
 
 The estimated budget outlay for the 2001/02 and 2002/03 financial years was
A$265.1 million.
 
8. Duration of the subsidy
 
 1 July 2000 to 30 June 2005.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
X. WHEAT
1. Title of the subsidy
Tasmanian Wheat Freight Subsidy
2. Period covered by this notification
Financial year 2001/2002 and financial year 2002/2003.
3. Policy objective and or purpose of the subsidy
The purpose of this subsidy is to compensate for the higher cost of shipping wheat to Tasmania.
4. Background and authority for the subsidy
The subsidy was introduced in 1989 following the deregulation of the Australian wheat market.
The Tasmanian subsidy was initially provided to a ssist Tasmanian cereal processors, end users and
consumers adjust to deregulation through improvements in storage and handling facilities.
Funding for the Tasmanian Wheat Freight Subs idy Scheme is provided annually through
Budgetary Appropriations Bill Number 2 .  The Minister for Agriculture, Fisheries and Forestry is
responsible for negotiating with the Tasmanian Government the terms and conditions of the assistance.
5. Form of the Subsidy
The assistance is provided in the form of a Government Grant to the Tasmanian Government.G/SCM/N/95/AUS
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6. Provision of the Subsidy
The Grant is provided on a quarterly basis to the Tasmanian Government by the
Commonwealth Government.  The Tasmanian Government  is responsible for administering the grants to
eligible interstate transporters.  Transporters ar e compensated for the approximate cost of shipping
wheat to Tasmania.
7. Value of the Subsidy
Period Outlay A$’000
1 July 2000-30 June 2001 1,200
1 July 2001-30 June 2002 1,200
1 July 2002-30 June 2003 1,200
Cost per unit value has not been provided as th e financial assistance is based on transportation
costs and not the quantity of wheat delivered to Tasman ia.  An assessment of cost per unit is therefore an
inappropriate measure of assistance in this case.
8. Duration
The programme was introduced in 1989 and is currently funded until 30 June 2005.  The
Australian Government is considering changes to the programme.
9. Statistical data permitting an assessment of the trade effects
(a) Statistics:
Year Volume (tons) Assistance (A$ million)
2000/01 50,000 1.2
2001/02 50,000 1.2
2002/03 50,000 1.2
(b) Trade effects:
The scheme only applies to the cost of wheat freight to Tasmania for domestic consumption
and not wheat for export.  As a result there is no trade effect.
SUB-FEDERAL PROGRAMMES
Each of the States/Territories provides an investment attraction/assistance programme (which
are marked with an * asterisk under the individual State/Territory entries) which is designed to attract
investment from and between the States.  The following is an estimate of the aggregated level of
funding for these programmes for the financial years 2001/2002 and 2002/2003 together with the
estimated number of firms assisted/investment packages offered.  Due to the nature of theseprogrammes (which may involve in some cases the provision of advisory facilitation services), the
funding levels reflect budget figures as opposed to actual grants paid.  The range of sectors assisted
under these programmes is described under the individual State/Territory entries.G/SCM/N/95/AUS
Page 17
Financial Year 2001/2001 2001/02 2002/03
$A millio n 117.389 129.442 132.133
No. of companies/
Packages offered 666 564 698
I. AUSTRALIAN CAPITAL TERRITORY
1. A.C.T. Business Incentive Fund (ACTBIF)*
1. Title of the subsidy
 
 A.C.T. Business Incentive Fund (ACTBIF)
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
  
ACTBIS was replaced by the ACT Business Incentive Fund (ACTBIF) in 2001.  ACTBIF
provides incentives to assist the development of  significant new business investment and employment
in the Australian Capital Territory.  Packages are designed to encourage businesses to relocate to theACT, expand an existing business activity or develop a new business activity.
 
4. Background and authority for the subsidy
 
 ACTBIS was established in 1995/96 by the ACT Government.  The ACTBIS/ACTBIF
programme is not specifically authorized under legislation.  It is an administrative function that
utilises discretionary powers contained within existing legislation.  For example, waivers are provided
for under the Financial Management Act and land grants under the Land (Planning and Environment)
Act.  It is administered by the ACT Chief Minister’s Department which determines the allocation of
assistance.
 
5. Form of the subsidy
 
 Assistance is generally provided through tax concessions, including payroll tax; provision of
land; and training and workforce development.  Other forms of assistance may be provided.  Eachcase is assessed on its merits.  Unlike ACTBIS, ACTBIF does not provide cash grants.
 
6. To whom and how the subsidy is provided
 
 Eligible companies are assessed against a set of evaluation criteria which includes suitability
of the industry to the ACT; soundness of the business case; contribution to the ACT economy.  There
must be no undue detriment to existing ACT businesses.
 
7. Level of subsidy per unit
 
 Assistance approved during financial year 2001/2002 and financial year 2002/03 was for cash
grants, payroll tax waivers and stamp duty waivers.  See above table for the aggregated Stateexpenditure and the estimated number of firms assisted for financial year 2001/2002 and financial
year 2002/2003.
 G/SCM/N/95/AUS
Page 18
8. Duration of the subsidy
 
 ACTBIS (the former programme) was established in the financial year 1995/1996.  ACTBIS
was established in 2001 and is an ongoing scheme.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
II. NEW SOUTH WALES
1. Industries Assistance Fund (IAF)*
1. Title of the subsidy
Industries Assistance Fund (IAF)
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 The IAF aims to promote economic development through assisting new firms to establish in
NSW; interstate or overseas firms to relocate in NSW; firms to expand or consolidate their operations
in NSW; and large-scale infrastructure projects.
 
4. Background and authority for the subsidy
 
 The IAF was established under the State Development and Industries Assistance Act  1966  as
the vehicle for payments of grants made by the Ministerial Corporation for Industry, the operations of
which are managed by the Minister (or the Minister’s delegate).
 
5. Form of the subsidy
 
 Financial assistance, which is considered in limited and special circumstances only, on a case-
by-case basis, may take the form of partial tax rebates; facility establishment costs; relocation costs;
contributions to infrastructure; skills training; or contribution to feasibility/studies.  The assistance is
in the form of partial rebates of state taxes and therefore is cost neutral in terms of the impact on state
revenue.
 
6. To whom and How the Subsidy is Provided
 
 Assistance is provided to eligible companies who will undertake new investments in New
South Wales.  To be eligible, an investment must provide significant net economic benefits (forexample, through substantial increases in employment and investment, and the introduction of new
technologies); be footloose; and be strategic to New South Wales.
 
7. Level of subsidy per unit
 
 Expenditure from the Fund assisted companies across a range of sectors, including
information technology, manufacturing, film, defence, ICT, finance and medical.  See above table forG/SCM/N/95/AUS
Page 19
the aggregated State expenditure and the estimated number of firms assisted for financial year
2001/2002 and financial year 2002/2003.
 
8. Duration of the subsidy
 
 The IAF is an ongoing programme.  The duration of IAF assistance to companies is agreed
between the project proponent and the Department of State & Regional Development.  It reflects in
part the lead and gestation times associated with the particular investment proposal, and is generally
for a period of up to five years.
 
9. Statistical data permitting an assessment of the trade effects
Statistical data is collected for the purpose of programme evaluation.  No trade data is
collected.
2. Regional Business Development Scheme
1. Title of the subsidy
 
 Regional Business Development Scheme
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
  
The Regional Business Development Scheme ( RBDS) is used by the NSW Department of
State and Regional Development to assist business start-ups, expansions or relocations in regional
New South Wales.  The Scheme provides assistance to help eligible companies offset initial
establishment costs that may prevent a viable regional business location being selected.
 
4. Background and authority for the subsidy
 
 There is no legislation under which assistance from the RBDS is granted; the RBDS operates
as an administrative function of the NSW Depa rtment of State and Regional Development.
 
5. Form of the subsidy
 
 Financial assistance may be granted as an establishment grant; a grant for the expansion of
existing premises/facilities; location feasibility analysis; business planning and technical consultancy
assistance; plant and equipment/key personnel remova l costs; skills training; contributions towards
infrastructure costs such as improving public road access to the site, etc; offsets to local government
charges; and/or as contribution to regional opportunities investigation, payroll and land taxes, or
stamp duty.
 
6. To whom and how the subsidy is provided
 
 Assistance is provided to eligible companies that  satisfy at least one of the following criteria:
potential for a substantial increase in employment; relocation from outside New South Wales orSydney; significant new investment in operations; setting up of a new industry/business operation;
and/or clear improvement in the competitiveness of an existing business.
 G/SCM/N/95/AUS
Page 20
7. Level of subsidy per unit
 
In 2001/2002 and 2002/2003 the NSW Department of  State and Regional Development was
involved in helping to secure 76 and 79 respectively regional projects under the Scheme.  The Scheme
assisted companies across a range of industry sectors, including manufacturing, agribusiness, foodprocessing and timber processing.  Aggregated state expenditure was A$5.574 million in financial
year 2001/2002 and A$3.891 million in financial year 2002/2003 respectively.
8. Duration of the subsidy
 
 The RBDS was introduced in 1989 and is an ongoing programme.  The duration of the RBDS
assistance to companies is agreed between the project proponent and the NSW Department of Stateand Regional Development, and will reflect in part the lead and gestation times associated with the
particular investment proposal.
 
9. Statistical data permitting an assessment of the trade effects
Statistical data is collected for the purpose of programme evaluation.  No trade data is
collected.
III. NORTHERN TERRITORY
1. Industry and Business Assistance*
1. Title of the subsidy
 
 Industry and Business Assistance
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
  
To support the growth and development of the Northern Territory's industrial and commercial
base through the provision of appropriate and prudent assistance to target industries.  To assist and
encourage the development, expansion and diversification of primary, secondary and tertiary
industries in the Northern Territory by providing grants to eligible new or expanding business.
 
4. Background and authority for the subsidy
 
 There is no legislation determining Industry and Business Assistance.  The programme is
administered, on a case-by-case basis, by the De partment of Business, Industry and Resource
Development.
 
5. Form of the subsidy
 
 Grants.
 
6. To whom and how the subsidy is provided
 
 Assistance eligibility is not restricted by sector, category or enterprise, although each proposal
must be of a commercially viable nature and have the ability to demonstrate potential growth andG/SCM/N/95/AUS
Page 21
benefit to the Northern Territory.  Assistance is generally available to businesses undertaking a
particular endeavour (i.e. a special project).
 
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for financial year 2001/2002 and financial year 2002/2003.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
IV. QUEENSLAND
1. Queensland Investment Incentives Scheme (QIIS)*
1. Title of the subsidy
 
 Queensland Investment Incentives Scheme
 
2. Period covered by the notification
  
Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 The objective of QIIS is to positively influence investment decisions by businesses where
there is a net economic benefit to the State and a demonstrated need for Government support to
overcome an impediment to a project's location or future development in Queensland.
 
4. Background and authority for the subsidy
 
 QIIS is administered by the Department of State Development on behalf of the Queensland
Government.  There is no legislative authority for this programme.  The scheme is funded as a special
budget line item for the Department.
 
5. Form of the subsidy
Financial incentives available include:
• Payroll Tax and land Tax Refunds
 
 Consideration may be given to refunding part of payroll and land taxes directly related to the
project, incurred and paid by the proponent over the first four years of operation.
 G/SCM/N/95/AUS
Page 22
• Stamp Duty Refund
 
 Consideration may be given to refunding in part or in full, Queensland Stamp Duty incurred
and paid by the proponent.  The stamp duty incurred must directly relate to the establishment
of the project.
 
• Establishment Grants
A grant may be offered to offset part of any establishment, relocation or training costs
associated with the project that is incurred and paid by the organisation.
Where an establishment grant is offered, an unconditional security acceptable to the Government
(normally an unconditional and irrevocable bank guarantee) is required for the amount of the grant.
6. To whom and how the subsidy is provided
 
 The scheme is a discretionary programme and companies are assessed after a rigorous level of
commercial evaluation and due diligence.
 
7. Level of subsidy per unit
 
See above table for the aggregated State expenditure and the estimated number of firms
assisted for the financial year 2001/2002 and financial year 2002/2003.  Major sectors receiving
assistance included agriculture, aviation, biotechnology, information technology/communications,food and meat, marine, metals processing, mining, timber, tourism and hospitality and textile clothing.
 
8. Duration of the subsidy
 
 Relevant contracts are currently planned through to 2008.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
2. Queensland Industry Development Scheme
1. Title of the subsidy
Queensland Industry Development Scheme
2. Period covered by the notification
 Financial year 2001/2002 and financial year 2002/2003.
3. Policy objective and/or purpose of the subsidy
To help businesses develop, expand and employ more people.
4. Background and authority for the subsidy
QIDS is administered by the Department of State Development on behalf of the Queensland
Government.  There is no direct legislative authority for this programme, however the schemeG/SCM/N/95/AUS
Page 23
operates in conjunction with the Industrial Development Act  (1963).  The scheme is funded as a
special budget line item for the Department.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Small to medium manufacturers.
7. Level of subsidy per unit
 The average grant in the financial year 2001/2002 was approximately $A20,000.  198 firms
were assisted in financial year 2001/2002.
8. Duration of the subsidy
QIDS commenced November 1998 and ran for 3.5 years (i.e. 30 June 2002).
9. Statistical data permitting an assessment of the trade effects
Major sectors receiving assistance in financial year 2001/2002 included agriculture, aviation,
biotechnology, information technology/communicati ons, food and meat, marine, metals processing,
mining, timber, tourism and hospitality and textile clothing.
V. SOUTH AUSTRALIA
1. Industry Investment and Attraction Fund*
 1. Title of the subsidy
 
 Industry Investment and Attraction Fund
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 The programme is aimed at encouraging investment to increase competitiveness and the
creation of employment.  Financial assistance and investment incentives are provided to encourage
further value added activity or to encourage firms to relocate to South Australia.
 
4. Background and authority for the subsidy
 
Industries Development Act 1941 .  The South Australian Cabinet (Executive Government)
approves assistance over A$4 million.  Below that amount, authority rests with the Minister for
Industry, Trade and Regional Development.  The Department of Business, Manufacturing and Trade
can administer assistance, within the scheme, up to the value of A$200,000.G/SCM/N/95/AUS
Page 24
5. Form of the subsidy
 
 Each applicant is assessed on a case-by-case basis and the total value and form of the
incentive package will be based on an assessment of the net economic benefits and the strategic
importance of the project to South Australia.  Assistance can take the form of grants, concessionalloans, tax holidays such as stamp duty and payroll tax exemptions.
 
6. To whom and how the subsidy is provided
Available to established firms seeking to establish in South Australia that have a reasonable
prospect of long term viability and who are involved in the goods and services sector (i.e. excluding
building, retailing, mining, tourism and agriculture).  The firms eligible for assistance are usuallymedium to large and complement the Government economic development priorities with the capacity
to contribute significantly to flow effects in th e economy.  The companies assisted in financial year
2001/2002 and financial year 2002/2003 were in a number of different industry sectors including,
automotive, ICT, defence, food and biotechnology.
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for financial year 2001/2002 and financial year 2002/2003.
 
8. Duration of the subsidy
 
 A shift in policy focus has been implemented such that the future calls on the IIAF will
decrease over future years.  In essence, there will be no (or limited) new projects and ongoing
commitments will be met.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
VI. TASMANIA
1. Investment Attraction Programme
 
 1. Title of the subsidy
  
Investment Attraction Programme
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 Aimed at attracting and retaining key investment projects to Tasmania, the programme
provides facilitation services and assistance in the form of site identification, selection, industrial
relations and employment advice and cost issues at various locations to new firms establishing inTasmania, companies relocating to Tasmania or to firms expanding and consolidating their operations
in Tasmania.
 G/SCM/N/95/AUS
Page 25
4. Background and authority for the subsidy
 
 The legislative basis is the Tasmanian Development Act 1983  with any funds expended under
the Investment Attraction Programme being appropriat ed under the budget of the Department of State
Development.
 
5. Form of the subsidy
 
 Assistance can take the form of grants, concessional loans, payroll tax exemptions, rental
assistance, reduced stamp duty, workforce training and development or feasibility/technical studies.
 
6. To whom and how the subsidy is provided
 
 Applications are assessed on a case-by-case basis.  Incentive packages are based on an
assessment of the net economic benefits (increases in employment, increase in investment and the
introduction of new technologies), the long-term viability of the project and the strategic importance
of the project to the State.
 
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for financial year 2001/2002 and financial year 2002/2003.  Industry sectors assisted includednatural gas, mining exploration and call centres.
 
8. Duration of the subsidy
 
 The investment attraction programme is ongoing.  Assistance to companies is time-specific,
agreed upon between the proponent and the Department of State Development.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
VII. VICTORIA
1. Investment Attraction Programme*
1. Title of the subsidy
 
 Investment Attraction Programme
 
2. Period covered by the notification
  
Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 The programme provides facilitation services for key investment projects and regional
headquarters, and seeks to attract additional in vestment for Victoria leading to the balanced
development of the State.  Investment facilitation and assistance includes site identification, selection,
industrial relations and employment advice and information on costs in different locations.  In very
limited circumstances, taxable grants may be provided.
 G/SCM/N/95/AUS
Page 26
4. Background and authority for the subsidy
 
 The Economic Development Act 1981 is the legislative basis; that Act was repealed on
27 April 1994.  Since this time, any funds expended under the Investment Attraction Programme have
been appropriated under the normal global budget  of the Department of Innovation, Industry and
Regional Development (formerly the Department of State and Regional Development).
 
5. Form of the subsidy
 
 Where financial assistance is provided, it is in the form of taxable grants to offset payroll and
land tax, provision of infrastructure and assistance with training.
 
6. To whom and how the subsidy is provided
 
 Where financial assistance is provided, companies must demonstrate a certain level of capital
expenditure.  Eligibility for the scheme is not limited to  any sector or category of enterprise or to any
region.
 
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for financial year 2001/2002 and financial year 2002/2003.
 
 The programme provided assistance to a number of industry sectors including automotive;
chemicals and plastic;  information technology and telecommunications;  engineering;  packaging;
food and related industries;  textiles, clothing and footwear;  medical and scientific;  forest products;
aviation;  and retail.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
VIII.  WESTERN AUSTRALIA
1. Industry Incentive Scheme*
1. Title of the subsidy
 
 Industry Incentive Scheme
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 The Industry Incentive Scheme aims to foster economic development in Western Australia by
facilitating major capital investment in new products or services of strategic importance to the State,G/SCM/N/95/AUS
Page 27
which would not otherwise occur due to identified impediments.  The preferred form of assistance is
assistance for the construction or development of common use public infrastructure.
 
4. Background and authority for the subsidy
 
 Departmental budget.  The scheme is admini stered by the Department of Industry and
Resources.
 
5. Form of the subsidy
 
 Possible components include capital establishment grants (interest-free convertible loans);
concessional or interest free loans; provision of public infrastructure necessary for the project; andprovision of land.
 
6. To whom and how the subsidy is provided
 
 Eligibility criteria for any project include: establishment or development of a business for the
manufacture of a new product (or new service); level of capital invested (minimum capital
establishment cost of $A2.5 million or a minimum of 25 direct, permanent, full time jobs created);
projects to be either in the manufacturing or services sector (primary agricultural production, fishing,
tourism, retail or the extractive component of mining are excluded); have appropriate equity funding
and be viable in the long term with net economic benefits to the State.
 
7. Level of subsidy per unit
 
 For financial year 2001/2002 and financial year 2002/2003, sectors assisted by the scheme
were transport and defence, food and the marine industry.  See above table for the aggregated Stateexpenditure and the estimated number of firms assisted in financial year 2001/2002 and financial year
2002/2003.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
2. Industry Relocation Scheme
1. Title of the subsidy
 
 Industry Relocation Scheme
 
2. Period covered by the notification
 
 Financial year 2001/2002 and financial year 2002/2003.
 
3. Policy objective and/or purpose of the subsidy
 
 The Industry Relocation Scheme aims to provide financial incentives to existing
manufacturing, value adding, advanced technology or service based industries to totally relocate
operations from Perth to a regional area as defined in the Regional Development Commission ActG/SCM/N/95/AUS
Page 28
(1993); or partially relocate operations from Perth to a regional area; or expand operations by
establishing a new regional facility as opposed to the expansion of their current Perth premises.
 
4. Background and authority for the subsidy
 
 There is no specific legislation.  The scheme is funded through budget appropriations
allocated to the Department of Local Government and Regional Development.
 
5. Form of the subsidy
 
 The incentive package which may be offered to an eligible project may comprise one or more
components tailored to suit both the specific requirements of the project proponents and theGovernment’s objectives with respect to the project.  Possible components include capital
establishment grants (interest-free convertible loans); concessional or interest-free loans; provision of
public infrastructure necessary for the project; provision of land either by way of a grant or a loan on a
concessional basis; provision of buildings either by way of a grant or a loan on a concessional basis;
or state tax rebates.
 
6. To whom and how the subsidy is provided
 
 Eligibility criteria for any project include: proponents must have an established business with
at least three full time employees and an annual turnover greater than $350,000; the project mustinvolve existing manufacture, value adding, advanced technology or service based businesses
(primary agricultural production, fishing, retail and the extractive component of mining are excluded);
the project should relate to the relocation or expansion of a Perth-based business; have appropriate
equity funding and be viable in the long term with net economic benefits to the State, including the
creation of employment opportunities in the chosen region.
 
7. Level of subsidy per unit
 
 During financial year 2001/2002 and financial year 2002/2003 no loans were approved.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Statistical data permitting an assessment of the trade effects
Not known.
__________