WORLD TRADE
ORGANIZATIONG/SCM/N/71/AUS
4 December 2001
(01-6156)
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 3 December 2001, has been received from the
Permanent Mission of Australia.
_______________
The following notification provides details on federal programmes for fiscal year 2000/2001.
In some cases, it is arguable whether these prog rammes 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. SHIPBUILDING................................................................................................................ .....10
VII. TEXTILES, CLOTHI NG & FOOTWEAR..........................................................................12
VIII. WHEAT ..................................................................................................................... ..............13
SUB-FEDERAL PR OGRAMMES.....................................................................................................14
I. AUSTRALIAN CAPI TAL TERRI TORY............................................................................14
II. NEW SOUTH WALES...........................................................................................................15
III. NORTHERN TERRITORY ..................................................................................................18
IV. QUEEN SLAND .................................................................................................................. .....19G/SCM/N/71/AUS
Page 2
V. SOUTH AUS TRALIA............................................................................................................20
VI. TASMANIA.................................................................................................................... .........21
VII. VICTORIA................................................................................................................... ...........22
VIII. WESTERN AUSTRALIA......................................................................................................23G/SCM/N/71/AUS
Page 3
FEDERAL PROGRAMMES
I. BOOKS
(a) Printing Industry Competitiveness Scheme
 1. Title of the Subsidy
 
 Printing Industry Competitiveness Scheme
 
2. Period covered by the notification
  
FY 2000/2001
 
3. Policy objective and/or purpose of the subsidy
The scheme is designed to improve the competitiveness of the Australian book printing
industry and reduce the effect of negative assistance on the industry by compensating book printers
for the cost impact of duty on paper inputs.
4. Backgroun 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, provide the authority for the scheme.
5. Form of the subsidy
Under the scheme, book printers are 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, andwhether duty was actually paid or not, is eligible for compensation.
6. To whom the funding is provided
The bounty is 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 FY 2000/2001 was $A 1,814,707.
8.8. Duration
The scheme commenced on 1 January 1999 and will operate until 30 June 2003.
9. Trade effects
Currently 87 book printing firms have made claims under the scheme.  The bulk of book
production is destined for the domestic market.G/SCM/N/71/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
 
 FY 2000/2001
 
3. Policy objective and/or purpose of subsidy
  
The scheme is 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
provides authority for the scheme.
 
5. Form of the subsidy
 
 Under the scheme, grants will be awarded competitively on the basis of eligibility and merit
criteria of projects which best meet the objectives of the scheme and comply with the eligibilitycriteria.
 
6. To whom the funding is provided
 
 Funding is available to firms involved in the book production process as well as to associated
industry, research and educational bodies.  Approximately 100 book production firms may qualify 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 FY 2000/2001 was $A 5,852,131.
 
8. Duration
  
The scheme commenced from 1 July 2000 and is scheduled to terminate on 30 June 2004.
 
9. Trade effects
The bulk of book production is destined for the domestic market.
II. DAIRY
1. Title of the subsidy
Dairy Industry Adjustment Package (DIAP)
 G/SCM/N/71/AUS
Page 5
2. Period covered by the notification
FY 2000/2001
 
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 acommercially focused system.
The DIAP was introduced from the beginning of  the 2000/01 FY 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 will be paid quarterly
over the eight years beginning with the 2000/2001 FY.
 
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 (ML)  Support per litre (cents/l)
 2000/2001  10,556  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. Statistical information
 
Year Milk Production
(ML)Total product Specific
AMS (A$ million)Total Dairy Exports
(A$billion)
2000/2001 10,556 200.669 3.041G/SCM/N/71/AUS
Page 6
9. Duration
Producers will be paid quarterly over the eight years beginning with the 2000/01 FY.
 
2. Trade effects
Not known.
III. INVEST AUSTRALIA
(a) Invest Australia:  investment incentives
1. Title of the subsidy
 
 Invest Australia:  Strategic Investment Incentives
 
2. Period covered by the notification
 
 FY 2000/2001
 
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, Science and 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 of
criteria.  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/SC M/Q2/AUS/20 of 13 August 2001).
 
5. Form of the subsidy
 
 Incentives could include grants, tax relief or the provision of infrastructure services.
 
6. To whom and how the subsidy is provided
 
 Four projects were provided assistance during FY 2000/2001.  The projects related to:  the
establishment of an eBusiness innovation centre for education and training and IT skills development;
training and skills development of automotive industry employees and the exploration and application
of new technologies; and further research, development and commercialisation of the AustralianMagnesium technology process;  and development of spaceport infrastructure.
 
7. Level of subsidy per unit
 
 In principle assistance to the four projects amounted to approximately $9.71 million.
 G/SCM/N/71/AUS
Page 7
8. Duration of the subsidy
 
 The assistance is only to limited and special circumstances for strategic investment projects.
 
9. 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
 
 FY 2000/2001
 
3. Policy objective and/or purpose of the subsidy
The Feasibility Study Fund is one of the services offered by Invest Australia to attract
prospective investors to establish or expand business operations in Australia.  Invest Australia can
provide financial assistance in the form of a grant up to $100,000 to eligible companies, domestic or
foreign, towards the conduct of feasibility or pre-feasibility studies into new investment projects inAustralia.  The objectives of the Fund are 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 de cisions 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.  Since this date, the programme has operated as a joint Commonwealth-State
programme.
 
 There are administrative guidelines which govern the delivery of the programme.
 
5. Form of the subsidy
 
 Grants.
 
6. To whom and how the subsidy is provided
  
To be eligible, a company needs 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.  TheG/SCM/N/71/AUS
Page 8
company needs 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
 
 This is a new programme.  Grants of up to $100,000 are available.  In 2000/2001 Invest
Australia approved $272,500 in new grant funding for feasibility studies to five projects.  These
studies comprised investments in research and development, renewable energy, gas to liquids,
transport and resource processing industries.  Six additional studies (previously approved and in
development) involving grants of $290,000 have either been completed during 2000/2001 or are
nearing completion.
 
8. Duration of the subsidy
 
 The programme is expected to continue beyond June 2002, though this is yet to be formally
endorsed.
 
9. 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
 
 11 January 2001-30 June 2001.
 
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.
 
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.
 
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, dutyG/SCM/N/71/AUS
Page 9
credits are earned on the basis of a percentage of eligible production;  and eligible investments in
plant 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 to date (for 1 January 2001 - 30 June 2001) are $ A 240 million.
8. Duration of the subsidy
 
 1 January 2001 to 31 December 2005.
 
9. Trade effects
Not known.
V. PHARMACEUTICALS
1. Title of the subsidy
 
 Pharmaceutical Industry Investment Programme (PIIP)
 
2. Period covered by the notification
 
 FY 2000/2001
 
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.
 
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
 G/SCM/N/71/AUS
Page 10
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
$A 300 million over the life of the scheme.   B udget outlays for FY 2000/2001 were $A 33.4 million.
 
8. Duration
 
 The scheme will operate from 1 July 1999 until 30 June 2004.
 
9. Trade effects
Unknown.
VI. SHIPBUILDING
(a) Shipbuilding Bounty
1. Title
 
 Shipbuilding bounty
 
2. Period covered by the notification
 
FY 2000/2001
 
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)
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 will apply to
vessels contracted for sale on or before 31 December 2000, and delivered on or before
31 December 2003.G/SCM/N/71/AUS
Page 11
9. Statistical information
Bounty payments under the programme are as follows:
Year $million
1998-99 24.2
1999-00 18.5
2000-01 13.5
Source: Parliamentary Budget Papers and ISR Annual Reports
(b) Shipbuilding Innovation Scheme
1. Title
 
 Shipbuilding Innovation Scheme
 
2. Period covered by the notification
 
 FY 2000/2001
 
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.
 
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 totaleligible production costs of a bountiable vessel.
Year $million
1999-00 18.5
2000-01 7.8G/SCM/N/71/AUS
Page 12
8. Duration
 
 The scheme will operate for the period 1 July 1999-30 June 2004.
 
9. Trade effects
Not known.  The scheme is intended to enable Australian shipbuilders to adopt best practice
product and process technologies.
VII. TEXTILES, CLOTHING & FOOTWEAR
1. Title of the subsidy
 
 Textiles, Clothing and Footwear Strategi c Investment Programme (TCF SIP) Scheme
 
2. Period covered by the notification
 
 FY 2000/2001
 
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)
 
5. Form of the subsidy
 
 The programme provides incentives in the form of grants to TCF entities.
 
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 $A 678 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 2000/01 Financial Year was $9 million.
 
8. Duration of the subsidy
 
 1 July 2000 to 30 June 2005.
 
9. Trade effects
Not known.G/SCM/N/71/AUS
Page 13
VIII.  WHEAT
1. Title of the subsidy
Tasmanian Wheat Freight Subsidy
2. Period covered by this notification
FY 2000/2001
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.
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$’000
1 July 1998–30 June 1999 1,200
1 July 1999–30 June 2000 1,200
1 July 2000-30 June 2001 1,200
ost per unit value has not been provided as the financial assistance is based on transportation
costs and not the quantity of wheat delivered to Tasman ia.  An assessment of cost per unit is therefore an
inappropriate measure of assistance in this case.
8. Duration
Funds have been allocated to the Tasman ian Wheat Freight Scheme for the FY 2000/2001.G/SCM/N/71/AUS
Page 14
9. Statistical Information
(a) Statistics:
Year Volume (tons) Assistance (A$ million)
1998/99 Unavailable 1.2
1999/00 Unavailable 1.2
2000/01 50,000 1.2
(b) Trade effects:
he 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 offunding for these programmes for the financial year 2000/2001 together with the estimated number of
firms assisted/investment packages offered.  Due to the nature of these programmes (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.
Financial Year 2000/2001
$A million 117.389
No. of companies/
Packages offered 666
I. AUSTRALIAN CAPITAL TERRITORY
1. A.C.T. Business Incentive Scheme (ACTBIS)*
1. Title of the subsidy
 
 A.C.T. Business Incentive Scheme (ACTBIS)
 
2. Period covered by the notification
 
 FY 2000/2001
 
3. Policy objective and/or purpose of the subsidy
 
 ACTBIS provides incentives to assist the de velopment of significant new business investment
and employment in the Australian Capital Territory.  Packages are designed to encourage businesses
to relocate to the ACT, expand an existing business activity or develop a new business activity.
 G/SCM/N/71/AUS
Page 15
4. Background and authority for the subsidy
 
 ACTBIS was established in 1995/96.  The ACTBIS 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.
 
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.  Each
case is assessed on its merits.
 
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 FY 2000/2001 was for cash grants, payroll tax waivers and stamp
duty waivers.  Information Technology continued as the major area assisted with the remainder spread
between a diverse range of industries from advanced technology manufacturing through to winery
projects.  See above table for the aggregated State expenditure and the estimated number of firms
assisted for FY 2000/2001.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. 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
 
 FY 2000/2001
 
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.
 G/SCM/N/71/AUS
Page 16
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, may take
the form of contributions to taxes; facility esta blishment costs; relocation costs; contributions to
infrastructure; skills training; or contribution to feasibility/technical skills.  The assistance is in the
form of partial rebates of state taxes and hence is cost neutral in terms of the impact on state revenue.
 
6. To whom and How the Subsidy is Provided
 
 ssistance is provided to eligible companies wh o will undertake new investments in NSW.  To
be eligible, an investment must provide significant net economic benefits (for example, through
substantial increases in employment and investme nt, and the introduction of new technologies); be
footloose; and be strategic to NSW.
 
7. Level of subsidy per unit
 
 Expenditure from the fund has assisted companies across a range of sectors including
information technology, manufacturing, film, defence, ICT, finance and medical.  See above table for
the aggregated State expenditure and the estimated number of firms assisted for FY 2000/2001.
 
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. Trade effects
The primary objective of this fund is to attract investment to the State in strategic areas.
2. Regional Business Development Scheme
1- Title of the subsidy
 
 Regional Business Development Scheme
 
2. Period covered by the notification
  
FY 2000/2001
 
3. Policy objective and/or purpose of the subsidy
 
 The Regional Business Development Scheme ( RBDS) is the key to the NEW Department of
State and Regional Development’s investment approach of assisting business start-ups, expansions orrelocations in regional New South Wales.  The Scheme assists companies to offset the initial cost that
may prevent a viable regional business location being selected.G/SCM/N/71/AUS
Page 17
 
4. Background and authority for the subsidy
 
 There is no legislation under which assistance from the RBDS is granted; the RBDS operates
as a departmental function of the NSW Department 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; offset to local government
charges; contribution to regional opportunities investigation; contributions to payroll and land taxesand stamp duty.
 
6. To whom and how the subsidy is provided
 
 Assistance is provided to eligible companies who satisfy at least one of the following criteria:
potential for a substantial increase in employment; relocation from outside NSW or Sydney;
significant new investment in operations; settin g up of a new industry/business operation; clear
improvement in the competitiveness of an existing business.
 
7. Level of subsidy per unit
 
In 2000/2001 the Department of State and Regional Development was involved in helping to
secure 126 regional projects in New South Wales under its programmes, including the Regional
Business Development Scheme.  These projects represent a  capital investment of nearly $357m,
which are expected to create or retain some 3,424 jobs in regional and rural New South Wales overthe life of the projects.
 
 In 2000/2001, the Scheme has assisted companies across a range of sectors including
manufacturing, aquaculture, timber processing, wine production, tourism,
telecommunications/Information Technology agricultural produce, horticulture and foodprocessing/food technology.
 
8. Duration of the subsidy
 
 The RBDS is an ongoing programme.  The duration of the RBDS assistance to companies is
agreed between the project proponent and the Department of State and Regional Development, and
will reflect in part the lead and gestation times associated with the particular investment proposal.
 
9. Trade effects
The primary objective of this fund is to expand businesses in regional New South Wales and
create employment in those locations.  The predominant intent of the investor is to establish or expandtheir operations in the Australian market utilizing skills and resources in regional locations.G/SCM/N/71/AUS
Page 18
III. NORTHERN TERRITORY
1. Industry and Business Assistance*
1. Title of the subsidy
 
 Industry and Business Assistance
 
2. Period covered by the notification
 
 FY 2000/2001
 
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 by the Department of Industries and Business.
 
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 and
benefit to the Northern Territory.  Assistance is generally available to businesses undertaking a
particular endeavour (i.e. a special project).
 
 Sectors assisted during FY 2000/2001 included business services, mining,
manufacturing/engineering, tourism, cultural and regional development,  aquaculture and forestry.
 
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for FY 2000/2001.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Trade effects
Not known.G/SCM/N/71/AUS
Page 19
IV. QUEENSLAND
1. Queensland Investment Incentives Scheme (QIIS)*
1. Title of the subsidy
 
 Queensland Investment Incentives Scheme
 
2. Period covered by the notification
 
 FY 2000/2001
 
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.
 
• 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.
 G/SCM/N/71/AUS
Page 20
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for FY 2000/2001.
 
8. Duration of the subsidy
 
 Relevant contracts are currently planned through to 2008.
 
9. Trade effects
Major sectors receiving assistance in FY 2000/2001 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
 
 FY 2000/2001
 
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
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, concessional
loans, 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. excludingbuilding, retailing, mining, tourism and agriculture).  The firms eligible for assistance are usually
medium to large and complement the Government economic development priorities with the capacity
to contribute significantly to flow effects in the economy.  The companies assisted  FY 2000/2001
were in a number of different industry sectors including:G/SCM/N/71/AUS
Page 21
- Automotive
- ICT
- Back office
- Defence
- Food
- Biotechnology
7. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for FY 2000/2001.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Trade effects
Not known.
VI. TASMANIA
1. Investment Attraction Programme
 
 1. Title of the subsidy
  
Investment Attraction Programme
 
2. Period covered by the notification
 
 FY 2000/2001
 
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 in
Tasmania, companies relocating to Tasmania or to firms expanding and consolidating their operations
in Tasmania.
 
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.
 
4. 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.
 G/SCM/N/71/AUS
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5. 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.
 
6. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted for FY 2000/2001.  Industry sectors assisted included natural gas, mining exploration and call
centres.
 
7. Duration of the subsidy
 
 The investment attraction programme is ongoing.  Assistance to companies are time-specific,
agreed upon between the proponent and the Department of State Development.
 
8. Trade effects
Not known.
VII. VICTORIA
1. Investment Attraction Programme*
1. Title of the subsidy
 
 Investment Attraction Programme
 
2. Period covered by the notification
 
 FY 2000/2001
 
2. 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.
 
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 havebeen appropriated under the normal global budget of the Department of State & 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.G/SCM/N/71/AUS
Page 23
 
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 FY 2000/2001.
 
 The programme has 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. 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
 
 FY 2000/2001
 
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,which would not otherwise occur due to identified impediments.  An incentive may be offered to a
strategically important project which would not occur due to an identified impediment and for which
the wider economic benefits of the investment outweigh the costs to government.  The preferred form
of assistance is assistance for the construction or development of public infrastructure.
 
4. Background and authority for the subsidy
 
 Departmental budget
 G/SCM/N/71/AUS
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5. Form of the subsidy
 
 Incentives are usually provided as direct financial assistance in the form of a capital grant or
concessional loan.  Possible components include capital establishment grants (interest-free convertible
loans); concessional or interest free loans; provision of public infrastructure necessary for the project;
and provision 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 $A 2.5 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 FY 2000/2001, sectors assisted by the scheme were transport and defence, food and the
marine industry.  See above table for the aggregated State expenditure and the estimated number of
firms assisted in FY 2000/2001.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Trade effects
Not known.
2. Industry Relocation Scheme
1. Title of the subsidy
 
 Industry Relocation Scheme
 
2. Period covered by the notification
  
FY 2000/2001
 
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 Act
(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
 
 Departmental budget
 G/SCM/N/71/AUS
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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 the
Government’s objectives with respect to the project.  Possible components include capital
establishment grants (interest-free convertible loans); concessional or interest-free loans; provision ofpublic 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 must
involve 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 thecreation of employment opportunities in the chosen region.
 
7. Level of subsidy per unit
 
 Two loans were approved valued at $A 307,000 of which $A 228,000 was provided during
FY 2000/2001.
 
8. Duration of the subsidy
 
 The programme is ongoing.
 
9. Trade effects
Not known.
__________