WORLD TRADE
ORGANIZATIONG/SCM/N/38/AUS
G/SCM/N/48/AUS
G/SCM/N/60/AUS
11 May 2000
(00-1938)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full and Updating Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the SCM Agreement
AUSTRALIA
The following communication, dated 10 May 2000, has been received from the Permanent
Mission of Australia.
_______________
The following notification provides details on federal programmes for fiscal years 1996/97 to
1998/99.  It serves as the new and full subsidies notification for federal programmes as well as theupdating notification for FY 1998/99.  The Shipbuilding Innovation Scheme, which was introduced
from 1 July 1999 and therefore outside the scope of the period covered by the notification, has been
included for the sake of clarification and in the context of the shipbuilding bounty.
The notification also provides a new and full notification relating to sub-federal programmes.
Data on budgeted expenditures for those sub-federal programmes that are ongoing have been provided
from financial year 1995/96 and onwards.
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
Page
I. FEDERAL PROGRAMMES...................................................................................................2
1. Bed Sheeting ................................................................................................................. .............2
2. Books........................................................................................................................ ..................2
3. Computers .................................................................................................................... .............4
4. Dairy........................................................................................................................ ...................4
5. Invest Australia............................................................................................................. ............6
6. Machine tools and robots ..................................................................................................... ....7G/SCM/N/38/AUS
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7. Printed Fabrics.............................................................................................................. ............7
8. Shipbuilding ................................................................................................................. .............7
9. Textile Yarns ................................................................................................................ .............9
10. Wheat ....................................................................................................................... ..................9
II. SUB-FEDERAL PROGRAMMES........................................................................................11
A. AUSTRALIAN CAPI TAL TERRI TORY................................................................................11
1. A.C.T. Business Incentive Scheme (ACTBIS)* ....................................................................11
B. NEW SOUT H WALES ............................................................................................................12
1. Industries Assistance Fund (IAF)*........................................................................................12
2. Regional Business Development Scheme ..............................................................................14
3. RB DS......................................................................................................................... ...............15
C. NORTHERN TE RRITOR Y .....................................................................................................15
1. Industry and Business Assistance*........................................................................................15
D. QUEEN SLAND ................................................................................................................... .....16
1. Queensland Investment Ince ntives Scheme (QIIS)*............................................................16
2. Queensland Industry Development Scheme.........................................................................18
E. SOUTH AUS TRALIA.............................................................................................................. 19
1. Industry Investment and Attraction Fund* .........................................................................19
F. TASMANIA ..................................................................................................................... ........20
1. Investment Attraction Programme* .....................................................................................20
G. VICT ORIA ..................................................................................................................... ..........21
1. Investment Attraction Programme* .....................................................................................21
H. WESTERN AUS TRALIA ........................................................................................................22
1. Industry Incentive Scheme*................................................................................................... 22
2. Industry Relocation Scheme ..................................................................................................2 3
I. FEDERAL PROGRAMMES
1. Bed Sheeting
The bounty on bed sheeting was terminated on 30 June 1995.  No payments were made after
FY 1995/96.
2. Books
As foreshadowed in G/SCM/N/25/AUS of 9 July 1997, the bounty on books terminated on
31 December 1997.  Payments under the bounty scheme made for FY 1996/97 were
A$ 13.242 million, for FY 1997/98 were A$ 7.410 million and for FY 1998/99 wereG/SCM/N/38/AUS
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A$ 0.345 million.  However, the Australian Government introduced a new Printing Industry
Competitiveness Scheme which came into effect on 1 January 1999.
1. Title of the subsidy
Printing Industry Competitiveness Scheme
2. Period covered by the notification
The new scheme was introduced from 1 January 1999.
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. Background and authority for the subsidy
The scheme was approved by the Government and announced by the Minister for Industry,
Science and Resources in a media release dated 16 December 1998.
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
4 per cent of the paper purchase price for all paper used in the production of eligible books.
8. Duration
The scheme will operate from the period 1 January 1999 until 30 June 2003.
9. Trade effects
The scheme will reduce input costs for book printers by offsetting the impact of tariffs on the
price of paper inputs.  Input costs are inflated by the tariff on paper, while competing imported books
are able to enter Australia tariff free.
It is likely that up to 700 book printing firms nationwide may qualify for assistance under the
new scheme.G/SCM/N/38/AUS
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3. Computers
The bounty on computers was terminated on 30 June 1997.  Payments in FY 1996/97 were
A$ 54.017 million, in FY 1997/98 A$ 48.897 million and in FY 1998/99 A$58.038 million.
4. Dairy
1. Title of the subsidy
Dairy Market Support Scheme
2. Period covered by the notification
1997/98-1998/99
3. Policy objective and/or purpose of the subsidy
The current arrangements for domestic dairy marketing aim to provide a secure framework
for further structural adjustment, investment and rationalisation within the Australian dairy industry to
the year 2000.
4. Background and authority for the subsidy
Under the Dairy Produce Act 1995 , Dairy Produce Levy (No.1) Amendment Act 1995 , Dairy
Produce Levy (No.2) Amendment Act 1995 , Dairy Produce Regulations (Amendment) no. 209  1995
and Dairy Produce Levy Regulations (Amendment) no. 210 1995  the domestic market support scheme
was introduced to replace the previous market support scheme active under the 1992 Dairy Plan.  The
Dairy Plan was terminated on 30 June 1995.
The previous set of dairy marketing arrangements, the 1992 Dairy Plan, was developed to
provide domestic support to the Australian dairy industry during its period of rationalisation and
restructure.  This market support was delivered through a market support payment (MSP) to
manufacturers upon export of dairy produce and was funded by a statutory levy on all milk produced.
The MSP was effectively recycled to manufacturing milk producers along with the consumer transfer
in the price paid by the manufacturer for milk to the producer.
These arrangements, as a producer financed export subsidy, were classified as an "export
subsidy" subject to reduction commitments under the WTO Agriculture Agreement which resulted in
a need to change the nature of the subsidy.  On 1 July 1995, new domestic market support
arrangements for the Australian dairy industry came into operation.  The new scheme is a clearlydefined, transparent domestic market support scheme which removed the subsidy on export dairy
products and creates a consumer transfer on domestic sales of dairy products.
Under these arrangements, assistance to manufacturing milk producers was generated through
a monetary transfer from domestic consumers.  Manufacturers, rather than producers, pay a levy onmilk used in the manufacture of dairy products.  Domestic support payments are paid direct to
producers of manufacturing milk by the Australian  Dairy Corporation (ADC).   Manufacturers will
continue to operate at world market prices for exported product.G/SCM/N/38/AUS
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5. Form of the subsidy
The subsidy takes the form of a direct payment to manufacturing milk producers.  Market
milk and manufacturing milk levies raised are paid  into the consolidated revenue of the Government
and are then appropriated to the Domestic Market Support Fund of the Australian Dairy Corporation
(ADC).  The scheme represents an income transfer to domestic milk producers from Australian
consumers.  No financial assistance is provided by the Government to industry.  The Government’s
role is to facilitate the operation of the industry funded scheme.
6. To whom and how is the subsidy provided
Support for manufacturing milk producers is obtained from two sources:
(a) an inter-sectoral transfer from market milk producers generated by a levy on market milk; and(b) through a transfer from Australian dairy product consumers.  This is generated by a levy paid
by manufacturers (ie processors not farmers) on all milk used in manufacturing dairy produce
which is sold on the domestic market.  Manufacturers recoup the levy through domestic
prices.
The ADC is the agent for the Government and is responsible for administering DMS payments.  The
ADC makes direct monthly payments from the Do mestic Market Support Fund to producers on the
basis of milk delivered for manufacturing purposes.  The calculation of levies and payments are based
on milk fat and protein content.  The manufacturing milk levy is imposed on all milk used in the
manufacture of dairy products in each month.
7. Subsidy per unit
Year Manufacturing Milk Production
(Ml)Support per litre
(cents/litre)
1996/97 7120 1.99438
1997/98 7518 1.77574
1998/99 8267 1.52653
8. Duration of the subsidy
The current arrangements are legislated to terminate on 30 June 2000.G/SCM/N/38/AUS
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9. Statistical information
(a) Statistics:
Year Total Milk
Production (ML)Total Product Specific
AMS (A$ million)*Total Dairy Exports
(A$ billion)
1994/95 8206 unavailable 1.440
1995/96 8716 151.72 1.692
1996/97 9040 144.19 1.779
1997/98 9440 131.62 1.937
1998/99 10194 119.71 2.257**
* Aggregate Measure of Support as calculated annually in Australia’s DS:1 Notification to theWTO Committee on Agriculture.
** ABARE provisional (ABARE, Australian Commodities December 1999).
Note: 1994/95 represents the last year in which the previous dairy arrangements were in place.(b) Trade Effects:
Levy paid on milk used in the manufacture of dairy products for export is rebated to the
manufacturer.  Exports take place at export parity price and do not benefit from the subsidy.  Australia
is essentially a price-taker on world markets and as such the consumer transfer to milk producers has
had no effect on trade.
5. Invest Australia
1. Title of the subsidy
Invest Australia:  investment incentives
2. Period covered by the notification
1997/98-1998/99
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 ofeligibility criteria.  The criteria include a requirement that the investment would not be likely to occurG/SCM/N/38/AUS
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in Australia without the incentive, is viable without subsidy, and provides significant net economic
benefits for Australia.
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
The focus is on major or high technology projects with strategic characteristics.  A dedicated
fund for investment incentives is not applicable/available.
7. Level of subsidy per unit
This is a new programme.  To date, two projects have been offered in principle incentives.
As of June 1999, no incentives have been paid.
8. Duration of the subsidy
The assistance is only to limited and special circumstances for strategic investment projects.
9. Trade effects
Not known.
6. Machine tools and robots
As advised in G/SCM/Q2/AUS/10 of 23 Apri l 1997, the bounty on machine tools and robots
was terminated on 30 June 1997.  However, there were some payments for activities made during
FY1996/97 (A$5.534 million), in FY 1997/98 (A$ 3.853 million) and in FY 1998/99
(A$ 0.25 million).
7. Printed Fabrics
The bounty on printed fabrics terminated on 30 June 1995. No payments have been made
during FY 1996/97 or since.
8. Shipbuilding
(a)  Shipbuilding Bounty
1. Title
Shipbuilding bounty
2. Period covered by the notification
1 July 1996-30 June 1999.G/SCM/N/38/AUS
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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 subsidized 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
Rates of bounty on eligible costs are as follows:
1 July 1996-30 June 1999 5%
1 July 1999-31 December 2000 3%
8. Duration
The bounty terminates on 31 December 2000.  A phasing out arrangement will apply to
vessels which are contracted for sale on or before 31 December 2000, and are delivered on or before
31 December 2003.
9. Statistical information
Bounty payments under the programme are as follows:
Year $million
1994-95 23.0
1995-96 23.7
1996-97 22.51997-98 19.1
1998-99 24.2
Source: Parliamentary Budget Papers and ISR Annual Reports
(b) Shipbuilding Innovation Scheme
1. Title
Shipbuilding Innovation SchemeG/SCM/N/38/AUS
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2. Period covered by the notification
1 July 1999-30 June 2004
3. Policy objective and /or purpose
The Shipbuilding Innovation Scheme is designed to improve the competitiveness of the
Australian shipbuilding industry by encouraging investment in research, development and design.
4. Background and authority for the scheme
The Bounty (Ships) Amendment Act (No. 14, 1999).
5. Form of the subsidy
Payment of a subsidy for eligible research and development expenditure.
6. To whom the funding is provided
The Shipbuilding Innovation Scheme is available to firms engaged in the construction of
eligible vessels (between 150 and 20,000 gross construction tons).
7. Level of subsidy per unit
Shipbuilders are entitled to a benefit equivalent to 50% of expenditure in eligible innovation
activities. Payments under this scheme are not permitted to exceed 2% of the total eligible production
costs of a bountiable vessel.
8. Duration
The scheme will operate for the period 1 July 1999-30 June 2004.
9. Trade effects
Not known. The scheme is intended to enable Australian shipbuilders to adopt best practice
product and process technologies.
9. Textile Yarns
The bounty on textile yarns was terminated on 30 June 1995.  Payments made in FY 1996/97
amounted to A$ 9,000.  There have been no payments after the 1996/97 financial years.
10. Wheat
1. Title of the subsidy
Tasmanian Wheat Freight Subsidy
2. Period covered by this notificationG/SCM/N/38/AUS
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1997/98-1998/99
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 assist Tasmanian cereal processors, endusers and consumers adjust to deregulation through improvements in storage and handling facilities.
Prior to deregulation the Government administered a scheme to equalise the price of wheat across
Australia.
By 1996 the nature of the scheme had moved from structural assistance to a freight subsidy
designed to equalise the price of wheat between Tasmania and mainland Australia.  As part of its
savings strategy in 1996/97, the Government decided to continue the subsidy but limited these
payments to the approximate cost of shipping wheat to Tasmania.  A$1.2 million was appropriated for
the programme in 1996/97 and each of the Forward Estimate years to 1998/99.
Funding for the Tasmanian Wheat Freight Subsidy Scheme is provided annually through
Budgetary Appropriations Bill Number 2 .  The Minister for Agriculture, Fisheries and Forestry is
responsible for negotiating with the Tasmanian Government the terms and conditions of the
assistance.
5. Form of the Subsidy
The assistance is provided in the form of a Government Grant to the Tasmanian Government.
6. Provision of the Subsidy
The Grant is provided on a quarterly basis to the Tasmanian Government by the
Commonwealth Government.  The Tasmanian Governme nt is responsible for administering the grants
to eligible interstate transporters.  Transporters are compensated for the approximate cost of shipping
wheat to Tasmania.
7. Value of the Subsidy
Period Outlay A$ ’000
1 July 1996-30 June 1997 1,200
1 July 1997-30 June 1998 1,200
1 July 1998-30 June 1999 1,200
Cost per unit value has not been provided as the financial assistance is based on transportation
costs and not the quantity of wheat delivered to Tasmania.  An assessment of cost per unit is therefore
an inappropriate measure of assistance in this case.G/SCM/N/38/AUS
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8. Duration
No funds have been allocated to the Tasmanian Wheat Freight Scheme beyond 1998/99 and it
is expected that adjustment assistance for deregulation will no longer be necessary beyond thisfinancial year.
9. Statistical Information
(a) Statistics:
Year Volume (tons) Assi stance (A$ million)
1994/95 86,549 2.2
1995/96 77,245 2.2
1996/97 44,196 1.2
1997/98 Unavailable 1.2
1998/99 Unavailable 1.2
(b) Trade effects:
The subsidy 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.
II. 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 years 1995/96 through to 1998/99 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 1995/96 1996/97 1997/98 1998/99
A$ million 140 63 56 72
No. of companies/
packages offered98 116 102 99
A. 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
1995/96-1998/99G/SCM/N/38/AUS
G/SCM/N/48/AUS
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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.
4. Background and authority for the subsidy
ACTBIS was established in 1995/96.  The ACTBIS programme is not specifically authorised
under legislation.  It is an administrative function that utilises discretionary powers contained withinexisting 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 between FY 1995/96 and FY  1997/98 was for cash grants, payroll tax
waivers, stamp duty waivers, and land discounts) and was utilized by companies to
31 December 1998.  Information Technology is the major area assisted (>50%) with the remainderspread 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 since 1995/96.
8. Duration of the subsidy
The programme is ongoing.
9. Trade effects
Not known.
B. NEW SOUTH WALES
1. Industries Assistance Fund (IAF)*
1. Title of the subsidy
Industries Assistance Fund (IAF)G/SCM/N/38/AUS
G/SCM/N/48/AUS
G/SCM/N/60/AUS
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2. Period covered by the notification
1995/96-1998/99
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, 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.
6. To whom and How the Subsidy is Provided
Assistance is provided to eligible companies who will undertake new investments in NSW.
To be eligible, an investment must provide signif icant 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, finance and call centres.  See above table for the aggregated State
expenditure and the estimated number of firms assisted since 1995/96.
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.Trade effects are not considered as a rationale for selecting companies for assistance.  The
predominant intent of the investor is to establish their operations in the Australian market.G/SCM/N/38/AUS
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2. Regional Business Development Scheme
1. Title of the subsidy
Regional Business Development Scheme
2. Period covered by the notification
1995/96-1998/99
3. Policy objective and/or purpose of the subsidy
The objectives of the Regional Business Development Scheme (RBDS) are to develop
sustainable regional enterprises and economies; boost employment and investment in regional NSW
by minimising initial cost impediments to viable firms; achieve balanced economic development
across the State; and implement business opportunities which add value to regional resources.
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 taxes
and 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
Total actual expenditure by financial year for regional assistance (including the Regional
Business Development Scheme) together with the estimated number of firms assisted since the
1995/96 financial year are provided in the table below:G/SCM/N/38/AUS
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Financial Year Actual Expenditure
(as per audited financial
statements)
$MEstimated Number of Firms
Assisted
(as per NSW Treasury Budget
Papers)
1995/96 10 100
1996/97 11 102
1997/98 10 127
1998/99 12 108
Expenditure from the fund has assisted companies across a range of sectors including foodtechnology, new agricultural products/derivatives, aquaculture, forestry, and wine production.
3. RBDS
1. 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.
2. Trade effects
The primary objective of this fund is to expand businesses in regional New South Wales and
create employment in those locations.  Trade effects are not considered as a rationale for selecting
companies for assistance.  The predominant intent of the investor is to establish or expand their
operations in the Australian market utilising skills and resources in regional locations.
C. NORTHERN TERRITORY
1. Industry and Business Assistance*
1. Title of the subsidy
Industry and Business Assistance
2. Period covered by the notification
1995/96-1998/99
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.G/SCM/N/38/AUS
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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).
7. Level of subsidy per unit
See above table for the aggregated State expenditure and the estimated number of firms
assisted since 1995/96.
8. Duration of the subsidy
The programme is ongoing.
9. Trade effects
Not known.
D. QUEENSLAND
1. Queensland Investment Incentives Scheme (QIIS)*
1. Title of the subsidy
Queensland Investment Incentives Scheme
2. Period covered by the notification
1995/96-1998/99
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.G/SCM/N/38/AUS
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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 organization.
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 since 1995/96.
8. Duration of the subsidy
The programme is ongoing.  Relevant contracts are currently supported through to 2004.
9. Trade effects
The following industry types have been provided with financial assistance:
• Traded services;
• Pharmaceuticals;
• Transport equipment; and
• Food industry.G/SCM/N/38/AUS
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2. Queensland Industry Development Scheme
1. Title of the subsidy
Queensland Industry Development Scheme
2. Period covered by the notification
1995/96-1998/99
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 scheme
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
Total budget for the Programme is $29m over 3.5 years.  A minimum of $5,000 to a
maximum of $50,000 is available per project.  The average grant in 1998/1999 was A$20,000.
QIDS Commitments as at 30 June 1999 (150 grants) 
$4,051,205
QIDS Payments as at 30 June 1999
$297,150
8. Duration of the subsidy
QIDS commenced November 1998 and will run for 3.5 years (i.e. July 2002).
9. Trade effects
QIDS approvals by major sectors for 1998/1999:
Manufacturing
Food 24
TCF 10
Wood and paper 6G/SCM/N/38/AUS
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Chemicals 10
Non-metallic mineral 3
Fabricated metal 9
Industrial machinery 34Other manufacturing 12
Agriculture 1
Mining  2
Services
Business Services 21
Education 3
Health Services 3
Cultural and recreation 3
Other services 9
E. SOUTH AUSTRALIA
1. Industry Investment and Attraction Fund*
1. Title of the subsidy
Industry Investment and Attraction Fund
2. Period covered by the notification
1995/96-1998/99
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 encouragefurther 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. excludingG/SCM/N/38/AUS
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building, 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.
7. Level of subsidy per unit
See above table for the aggregated State expenditure and the estimated number of firms
assisted since 1995/96.
8. Duration of the subsidy
The programme is ongoing.
9. Trade effects
Not known.
F. TASMANIA
1. Investment Attraction Programme*
1. Title of the subsidy
Investment Attraction Programme
2. Period covered by the notification
1995/96-1998/99
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, industrialrelations 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.
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.G/SCM/N/38/AUS
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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 since 1995/96.
8. 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.
9. Trade effects
Not known.
G. VICTORIA
1. Investment Attraction Programme*
1. Title of the subsidy
Investment Attraction Programme
2. Period covered by the notification
1995/96-1998/99
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 investment 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
Economic Development Act of 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 beenappropriated 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/38/AUS
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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 since 1995/96.
Since 1995/96, the programme has provided assi stance 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; and aviation.
8. Duration of the subsidy
The programme is ongoing.
9. Trade effects
Not known.
H. WESTERN AUSTRALIA
1. Industry Incentive Scheme*
1. Title of the subsidy
Industry Incentive Scheme
2. Period covered by the notification
1995/96-1998/99
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 budgetG/SCM/N/38/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 convertibleloans); 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 capitalestablishment cost of AUD 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
Sectors which have received benefits under this programme include the machinery, food,
other chemical products and textiles sectors.  See above table for the aggregated State expenditure and
the estimated number of firms assisted since 1995/96.
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
1997/98-1998/99
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 relocateoperations 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 budgetG/SCM/N/38/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 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 must involve
existing manufacture, value adding, advanced technology or service based businesses (primaryagricultural 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 eco nomic benefits to the State, including the creation
of employment opportunities in the chosen region.
7. Level of subsidy per unit
No payments have as yet been made under this scheme.
8. Duration of the subsidy
The programme is ongoing.
9. Trade effects
Not known.
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