RESTRICTED  
  
WT/TPR/S/396  
15 January 2020  
(20-0418) Page: 1/152 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
AUSTRALIA  
This report, prepared for the eighth Trade Policy Review of Australia, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World 
Trade Organization), sought clarification from Australia on its trade policies and practices.  
 
Any technical questions arising from this rep ort may be addressed to Mr. Cato Adrian (tel.: 022 739 
5469), Mr. Usman  Ali Khilji, (tel.:  022 739 6936), Ms  Fatima Chaudhri (tel.:  022 739 6384).  
 
Document WT/TPR/G/396 contains the policy statement submitted by Australia.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Australia. This report was drafted in 
English.  
  WT/TPR/S/ 396 • Australia  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRON MENT  ................................ ................................ ........................  11 
1.1   Main Features of the Economy  ................................ ................................ .....................  11 
1.2   Recent Economic Developments  ................................ ................................ ...................  13 
1.2.1    Monetary and exchange rate policy  ................................ ................................ ............ 14 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 14 
1.2.3    Structural issues  ................................ ................................ ................................ ......16 
1.2.4    Balance of payments  ................................ ................................ ................................ 16 
1.3   Developments in Trade and Investment  ................................ ................................ ........  19 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 19 
1.3.2    Trends and patterns in foreign direct investment (FDI)  ................................ ................. 22 
2   TRADE AND INVEST MENT REGIMES ................................ ................................ ...........  25 
2.1   General Framework  ................................ ................................ ................................ .... 25 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........  26 
2.3   Trade Agreements and Arrangements  ................................ ................................ ...........  27 
2.3.1    WTO ................................ ................................ ................................ ...................... 27 
2.3.2    Regional and p referential agreements  ................................ ................................ ........ 28 
2.3.2.1    Regional trade agreements (RTAs)  ................................ ................................ .......... 28 
2.3.2.2    Preferential trade agreements  ................................ ................................ ................ 30 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 30 
2.4   Investment Regime  ................................ ................................ ................................ .... 30 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ........................  38 
3.1   Measures Directly Affecting Imports  ................................ ................................ ..............  38 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 38 
3.1.1.1    Documentation requirements and trade facilitation measures  ................................ .....38 
3.1.1.2    Customs valuation  ................................ ................................ ................................ 39 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 40 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 40 
3.1.3.1    Bound tariff  ................................ ................................ ................................ .......... 40 
3.1.3.2    Applied MFN tariff  ................................ ................................ ................................ .41 
3.1.3.3    Tariff rate quotas (TRQs)  ................................ ................................ ....................... 44 
3.1.4    Tariff preferences  ................................ ................................ ................................ ....44 
3.1.4.1    Tariff concessions and other schemes  ................................ ................................ ......45 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 46 
3.1.5.1    Import processing fees  ................................ ................................ .......................... 46 
3.1.5.2    Goods and Services Tax (GST)  ................................ ................................ ............... 47 
3.1.5.3    Luxury car tax  ................................ ................................ ................................ ......48 
3.1.5.4    Wine equalization tax  ................................ ................................ ............................ 48 
3.1.5.5    Excise duties  ................................ ................................ ................................ ........ 48 WT/TPR/S/ 396 • Australia  
 
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  3.1.5.6    Other charges and levies  ................................ ................................ ....................... 49 
3.1.5.7    Taxes applied at sub -federal level  ................................ ................................ ........... 50 
3.1.6    Import prohibitions, restrictions, and licensing  ................................ ............................ 50 
3.1.7    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 56 
3.2   Measures Directly Affecting Exports  ................................ ................................ ..............  59 
3.2.1    Customs procedures and requirements  ................................ ................................ .......59 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 59 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 60 
3.2.4    Export support and promotion  ................................ ................................ ................... 62 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..64 
3.3   Measures Affecting Production and Trade  ................................ ................................ ....... 65 
3.3.1    Incentives  ................................ ................................ ................................ ............... 65 
3.3.2    Standards and other technical requirements  ................................ ............................... 68 
3.3.2. 1   Standards and technical regulations  ................................ ................................ ........ 68 
3.3.2. 2   Conformity assessment and international cooperation  ................................ ............... 69 
3.3.2. 3   Transparency  ................................ ................................ ................................ .......70 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....70 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 74 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 78 
3.3.6    Government procurement  ................................ ................................ ......................... 80 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 83 
3.3.7.1    Overview  ................................ ................................ ................................ ............. 83 
3.3.7.2    Global IP initiatives  ................................ ................................ ............................... 84 
3.3.7.3    Innovation and SME policies  ................................ ................................ ................... 85 
3.3.7.4    Institutional and registration issues  ................................ ................................ ......... 86 
3.3.7.5    Industrial property  ................................ ................................ ................................ 86 
3.3.7.5.1    Patents  ................................ ................................ ................................ ............. 86 
3.3.7.5.2    Trade marks  ................................ ................................ ................................ ......88 
3.3.7.5.3    Industrial designs  ................................ ................................ ............................... 89 
3.3.7.5.4    Protection of plant varieties  ................................ ................................ ................. 90 
3.3.7.5.5    Geographical indications  ................................ ................................ ..................... 91 
3.3.7.5.6    Undisclosed information and trade secrets  ................................ ............................. 92 
3.3.7.5.7    Circuit layouts ................................ ................................ ................................ ....92 
3.3.7.5.8    Copyright  ................................ ................................ ................................ .......... 92 
3.3.7.6    Parallel importation  ................................ ................................ ............................... 93 
3.3.7.7    Enforcement  ................................ ................................ ................................ ......... 94 
3.3.7.8    Border measures  ................................ ................................ ................................ ..95 
3.3.7.9    Standing Committee on Indigenous Affairs  ................................ ............................... 96 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ .....................  97 
4.1   Agriculture and Fisheries  ................................ ................................ .............................  97 WT/TPR/S/ 396 • Australia  
 
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  4.1.1    Agriculture  ................................ ................................ ................................ .............. 97 
4.1.1.1    Main features  ................................ ................................ ................................ .......97 
4.1.1.2    Trade measures  ................................ ................................ ................................ ....99 
4.1.1.2.1    Imports  ................................ ................................ ................................ ............ 99 
4.1.1.2.2    Exports  ................................ ................................ ................................ ............. 99 
4.1.1.2.3    Food aid  ................................ ................................ ................................ ..........  100 
4.1.1.3    Domestic programmes  ................................ ................................ .........................  100 
4.1.1.4    Levels of support  ................................ ................................ ................................  103 
4.1.2    Fisheries  ................................ ................................ ................................ ...............  105 
4.1.2.1    General ................................ ................................ ................................ .............  105 
4.1.2.2    Commercial fisheries  ................................ ................................ ...........................  107 
4.1.2.3    Aquaculture  ................................ ................................ ................................ ........  108 
4.1.2.4    Fish processing and wholesale distribution  ................................ .............................  108 
4.2   Mining and Energy  ................................ ................................ ................................ .... 109 
4.2.1    Mining  ................................ ................................ ................................ ..................  109 
4.2.2    Energy  ................................ ................................ ................................ .................  110 
4.3   Manufacturin g ................................ ................................ ................................ ..........  112 
4.3.1    Automotive  ................................ ................................ ................................ ...........  115 
4.3.2    Textiles, clothing and footwear (TCF)  ................................ ................................ ....... 117 
4.4   Services  ................................ ................................ ................................ ..................  118 
4.4.1    Financial services  ................................ ................................ ................................ ... 118 
4.4.1.1    Banking sector  ................................ ................................ ................................ .... 118 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  123 
4.4.2    Communications  ................................ ................................ ................................ .... 125 
4.4.2.1    Telecommunications  ................................ ................................ ............................  125 
4.4.2.2   Television broadcasting and film production  ................................ ...........................  127 
4.4.3    Transport  ................................ ................................ ................................ ..............  128 
4.4.3.1    Maritime transport  ................................ ................................ ..............................  130 
4.4.3.2    Air transport  ................................ ................................ ................................ ....... 131 
4.4.4    Tourism  ................................ ................................ ................................ ................  133 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 134  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main HS Sections, 2013 and 2018  ................................ .......... 20 
Chart 1.2 Merchandise trade by main origin and destination, 2013 and 2018  ............................. 21 
Chart 2.1 Approvals by country, 2014/15 to 2017/18  ................................ ............................. 35 
Chart 3.1 Frequency distribution of MFN tariff rates, 2019  ................................ ....................... 42 
Chart 3.2 Anti -dumping actions, 1995 -2018 ................................ ................................ .......... 57 
Chart 4.1 Exports and imports of agricultural products, 2007 -17 ................................ .............. 98 
Chart 4.2 Green Box support, 2000/01 -2017/18  ................................ ................................ .. 104 WT/TPR/S/ 396 • Australia  
 
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  Chart 4.3 Wild catch commercial fisheries, 2001/02 -2013/14  ................................ ................  107 
Chart 4.4 Aquaculture production by value  ................................ ................................ ..........  109 
Chart 4.5 Value added and employment distribution in the man ufacturing sector, 2017/18  ....... 113 
 
TABLES  
 
Table 1.1 Selected economic indicators, 2012/13 -2018/19  ................................ ...................... 11 
Table 1.2 Commonwealth government fiscal balance, 2012 -19 ................................ ................ 15 
Table 1.3 Balance of Payments, 2012 -19 ................................ ................................ .............. 17 
Table 1.4 Trade in services, 2012 -19 ................................ ................................ .................... 18 
Table 1.5 Foreign investment by economic sector, 2013 -18 ................................ ..................... 22 
Table 1.6 Direct investment by main partner countries, 2013 -18 ................................ ............. 23 
Table 2.1 Applications decided, 2013/14 to 2017/18  ................................ .............................. 34 
Table 2.2 Total investment approvals, by industry sector, 2017/18  ................................ .......... 35 
Table 2.3 Surcharges for foreign i nvestors 2016/17  ................................ ............................... 36 
Table 2.4 Foreign investment -related treaties and agreements in force  ................................ .....37 
Table 3.1 Structure of the consolidated tariff schedule, in the HS07 nomenclature at the  
six-digit level  ................................ ................................ ................................ ..................... 41 
Table 3.2 Structure of the tariff schedule, 2014 and 2019  ................................ ....................... 42 
Table 3.3 Summary analysis of MFN tariff, 2019  ................................ ................................ ....43 
Table 3.4 Analysis of prefer ential tariffs (with countries that have negotiated trade 
agreements), 2019  ................................ ................................ ................................ ............ 45 
Table 3.5 Import processing charges  ................................ ................................ .................... 47 
Table 3.6 State and territory taxes on selected items, 2017/18  ................................ ............... 50 
Table 3.7 Imports subject to prohibition or non -automatic licensing, 2019  ................................ 51 
Table 3.8 Anti -dumping duties imposed, 2015 -April 2019 ................................ ........................ 57 
Table 3.9 Anti -dumping duties terminated, 2015 -April 2019  ................................ .................... 58 
Table 3.10 Countervailing duties imposed, 2015 -19 ................................ ............................... 59 
Table 3.11 Exports subject to licensing or other restrictions, 2019  ................................ ........... 60 
Table 3.12 Profi le of EMDG applicants and recipients, by grant year, 2012/13 to 2017/18  ........... 63 
Table 3.13 Structure of the Commonwealth government tax revenue, 2012/13 -2017/18  ............ 66 
Table 3.14 Competition policy implementation, 2014 -18 ................................ ......................... 76 
Table 3.15 Commonwealth comp anies, 2019  ................................ ................................ ......... 79 
Table 3.16 Historical values and number of contracts, 2013 -18 ................................ ............... 82 
Table 3.17 Procurement contracts, 2013 -18 ................................ ................................ .......... 83 
Table 3.18 Procurement method, 2013 -18 ................................ ................................ ............ 83 
Table 3.19 Estimated SME participation by value threshold, 2017 -18 ................................ ........ 83 
Table 4.1 Gross value of production for selected agricultural commodities, 2013 -18 ................... 97 
Table 4.2 Budgetary assistance to primary production, 2011 -18 ................................ ............  105 
Table 4.3 Installed power -generating capacity, 2010 -18 ................................ .......................  111 
Table 4.4 Budgetary assistance to manufactur ing, 2014/15 -2017/18  ................................ ...... 115 WT/TPR/S/ 396 • Australia  
 
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  Table 4.5 Structure of the financial system, 2019 ................................ ................................ . 118 
Table 4.6 Financial soundness indicators for the banking sector, 2014 -19 (Q1)  ........................  121 
 
BOXES  
 
Box 4.1 Government drought assistance  ................................ ................................ .............  101 
Box 4.2 State drought assistance programmes (June -December 2018)  ................................ ... 102 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS sections and main chapters, 2012 -18 ..........................  134 
Table A1.2 Merchandise imports by HS sections and main HS chapters, 2012 -18 .....................  136 
Table A1.3 Merchandise exports by trading partner, 2012 -18 ................................ ................  138 
Table A1.4 Merchandise imp orts by trading partner, 2012 -18 ................................ ................  139 
 
 
Table A2.1 Notifications under WTO agreements, 1 January 2015-18 November 2019  ..............  140 
Table A2.2 RTAs in force, 2019  ................................ ................................ ..........................  143 
Table A2.3 Selected bilateral treaties relating to trade and investment  ................................ ... 147 
 
 
Table A3.1 Non -agricultural subsidies notified to the WTO, 2016/17 and 2018/19  ....................  148 
 
  WT/TPR/S/ 396 • Australia  
 
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  SUMMARY  
1.  The resilience of the Australian economy has facilitated nearly 30 years of uninterrupted growth. 
During the last decade, the economy adjusted to the global financial crisis, a large terms -of-trade 
shock, and the end of a mining investment boom. The economy is  diversified, with flexible labour 
and product markets, and is supported by strong institutional arrangements, robust regulatory 
frameworks, prudent macroeconomic policies, a flexible exchange rate regime, and a liberalized 
capital account. Real GDP grew b y 1.9% in 2018/19, below the average annual increase of 2.6% 
between 2012/13 and 2017/18.  
2.  Private consumption has recently been slowing due to subdued wage growth, reflecting ongoing 
spare labour capacity, and the reversal of a property boom setting in sin ce mid -2017. The authorities 
have been resorting to economic stimuli in the form of lower tax rates, higher public consumption, 
and increased outlays on research and development. In an improved fiscal environment where the 
federal budget swung from deficit s to a slight surplus, the Government increased infrastructure 
spending to the tune of 0.5% of GDP per year. The Reserve Bank of Australia lowered its cash rate 
to a record low of 0.75% to boost growth. The economy was also aided by a depreciation of the 
Australian dollar relative to most major world currencies.  
3.  Although the current account has been in deficit for many years, the deficit has narrowed as the 
goods balance has been in surplus since 2016/17. In 2018, Asian markets absorbed more than 84% 
of Aus tralia's exports. Mineral products account for nearly 60% of merchandise exports. The deficit 
in trade in services also declined due to a sustained increase in travel receipts, tourism and 
education -related exports. About 62% of Australia's imports are sou rced in  Asian countries.  
4.  Net flows of foreign direct investment (FDI) into Australia averaged AUD 60 billion per year in 
the period under review. About one third of the current FDI stock, estimated at AUD 968 billion in 
2018, is in mining and quarrying. In vestors from the EU -28, the United States and Japan account 
for more than 56% of the FDI stock. Proposed investments (above certain thresholds) are screened 
on a case -by-case basis by the Foreign Investments Review Board to ensure that the investments 
are consistent with domestic requirements and in the national interest. Applications are rarely turned 
down, as most national interest concerns are addressed through appropriate mitigation measures. 
Foreign investors currently own more than 13% of Australia's agricultural land. Pre -approval is 
required for foreign ownership in residential real estate and vacant commercial land. Australia's 
states introduced land taxes and stamp duty surcharges, to reduce the demand for Australian 
dwellings and residential land among non -resident investors. Foreign investment in airports, civil 
aviation, marine transport and telecommunications is subject to equity caps.  
5.  Australia was an original contracting party to the GATT, and is a founding Member of the WTO. 
Its trade policy is anchored in a broad understanding that international trade and investment are 
critical to the economy, providing jobs and prosperity. The Government assigns importance to an 
open international economy to guard against protectionism, and international ru les to counter unfair 
trade actions and resolve disputes. Australia seeks trade agreements that improve market access 
and investment opportunities, and stimulate the competitiveness of Australian firms. During the 
period under review, important new RTAs en tered into force, namely the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP) and free trade agreements (FTAs) with 
Japan and China. In addition, agreements with Hong Kong, China; Peru; and Indonesia, as well as 
the Pacific Agr eement on Closer Economic Relations Plus (Pacer Plus), were signed but are not yet 
in force. Further FTAs are under negotiation with the European Union, the Gulf Cooperation Council, 
and India. Australia is participating in the efforts to form the Pacific Alliance Free Trade Agreement 
and the Regional Comprehensive Economic Partnership. In the WTO, Australia participates actively 
in initiatives and negotiations across the board.  
6.  Since its last review, Australia has ratified the WTO Trade Facilitation Agreem ent with full 
implementation of commitments across all categories. It is also implementing the expansion of the 
Information Technology Agreement which covers 201 additional products, and it joined the 
plurilateral Agreement on Government Procurement in 201 9. It maintained a strong record regarding 
notifications, providing about 200 notifications to the WTO since early 2015. Australia was a 
respondent in one new dispute settlement case, and a complainant in two new cases, in the period 
under review.  WT/TPR/S/ 396 • Australia  
 
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  7.  Nearly a ll trade transactions are processed through the single window Integrated Cargo System. 
Since 2016, an Australian Trusted Trader (ATT) programme has been implemented, with an 
increasing number of participants. The Government concluded mutual recognition arr angements 
allowing ATT businesses access to trade facilitation benefits in eight trading partners. The authorities 
estimate the ATT programme to generate benefits totalling AUD 3.5 billion in nominal terms over 
the period 2015 -25. 
8.  About 5% of the tariff li nes in Australia's schedule of concessions and commitments on non -
agricultural goods are unbound for import tariffs and "other duties and charges". The simple average 
bound tariff is 10.7% for non -agricultural products, with high bound rates for textiles a nd clothing, 
and significantly lower bound tariffs on agricultural products, where the simple average is 3.4%. 
Australia's average applied MFN tariff declined by 0.5 percentage points from 2014 to 2019, reflecting 
its participation in the ITA expansion as well as unilateral tariff cuts on textiles, clothing and footwear 
articles in 2015. The current average applied tariff (2.5%) is lower for agricultural products (1.4%) 
than for other goods (3.7%). The MFN tariff structure is very simple, as almost all good s face a tariff 
rate of either zero or 5% ad valorem . Australia's bilateral FTAs with Chile, China, Malaysia, New 
Zealand, Singapore, Thailand and the United States provide for duty -free and quota -free access for 
all their goods into the Australian market,  on par with the access granted to LDCs and South Pacific 
Forum island countries under Australia's unilateral preference schemes. Extensive tariff reductions 
are also accorded to other preferential partners. In addition, the Customs Tariff Act, 1995 outlin es a 
general system of tariff concessions, which is complemented by individual Tariff Concession Orders. 
Australia's MFN tariff rate quota system for cheese and curd remains in place.  
9.  Australia's system of indirect taxation includes a general Goods and Ser vices Tax (GST) of 10%, 
a luxury car tax, a wine equalization tax, and excise duties on alcoholic beverages, tobacco and 
tobacco products, and fuel and petroleum products. A number of changes to the GST regime took 
place in the period under review, includi ng its extension to digital products and services supplied 
cross-border to consumers in Australia. The application of GST to cross -border transactions between 
businesses was also modified to ensure that non -resident suppliers are not drawn unnecessarily in to 
the GST system. Excise duty rates are indexed, and adjustments are normally carried out twice a 
year. The tobacco tax was raised an additional 12.5% in September 2019, and a further 12.5% 
increase should come into force on 1 September 2020. Australia's states and territories also collect 
a number of duties and taxes, but, except for motor vehicles, insurance and gambling, most of these 
have little or no bearing on trade.  
10.  Australia is an active user of anti -dumping and countervailing measures by internati onal 
comparison. It has imposed 37 new anti -dumping measures since 2014, while 21 measures  were 
terminated. At the end of 2018, 83 anti -dumping measures were in force, up from 23 in June 2010. 
Steel products account for more than 50% of the measures in for ce. Six new countervailing measures 
came into force in the period under review, with 15 in total in place at the end of 2018. No safeguard 
measures are in force, and no investigations were conducted in the period under review.  
11.  Australia prohibits or restr icts the importation and/or exportation of certain goods, or establishes 
conditional measures that reflect measures applicable to the domestic production of identical, similar 
or like goods, public health or safety concerns, community protection, or Austra lia's participation in 
international agreements or arrangements to regulate trade in particular products. Australia also 
applies economic sanctions, whether mandated by the United Nations Security Council as a matter 
of international law or Australia -specific sanctions, that affect transactions with certain countries or 
entities. Efforts to consolidate and streamline export -related requirements for agricultural 
commodities and food products are ongoing, with the aim of having a new legal regime in place by 
1 April 2020.  
12.  The entry into force of the Biosecurity Act (in 2015), two basic implementing regulations and a 
host of related legal instruments constitute a major recent development in the area of sanitary and 
phytosanitary measures in Australia. The legis lation provides for risk analysis to be conducted 
through a regulated process (Biosecurity Import Risk Analysis) for goods in the review of existing 
trade, and in response to requests regarding products that have never been imported into Australia, 
or have  not previously been imported from a particular country or region. As before, imports are not 
permitted unless the estimated biosecurity risks are "very low" (or lower).  
13.  The Imported Food Control Act was amended in 2018 to strengthen the safety system for 
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  risks, and incident response. The revised Act increases importers' accountability for food safety and 
the sourcing of safe food. Food standards applicable are embod ied in the Australia New Zealand Food 
Standards Code. A revised version of the Code was introduced on 1 March 2016, principally to clarify 
the requirements applicable to the labelling of food. A new country of origin labelling system, 
introduced on 1 July 2016, has been mandatory for "priority food" since 1 July 2018.  
14.  A specific trade concern (STC) raised by many members in the WTO Committee on Technical 
Barriers to Trade regarding Australia's tobacco plain packaging regime was last discussed there in 
Novem ber 2014. In the WTO Committee on Sanitary and Phytosanitary Measures, a member raised 
two new STCs in October 2015, but these have not been on the agenda since then.  
15.  In addition to broad efforts to simplify and streamline the regulatory regime, especially  for small 
businesses, the corporate tax rate was reduced from 30.0% to 27.5% for certain businesses. Initially 
applicable to businesses with an aggregated annual turnover of below AUD 2 million, the lower tax 
rate now applies to businesses with an annual turnover of below AUD 50 million, and additional tax 
concessions came into force for smaller businesses. In addition, production assistance is provided 
through grants, concessional loans and tariff concessions. According to the Productivity Commission, 
about 70% of the measured budgetary assistance was directed towards support to research and 
development and small businesses in 2017/18.  
16.  The Government has been moving towards the provision of project finance as a form of industry 
assistance, notably the Nort hern Australia Infrastructure Facility (AUD 5 billion), the Defence Export 
Strategy (USD 3 billion), the National Infrastructure Loan Facility (AUD 2 billion) and, most recently, 
the Australian Infrastructure Financing Facility for the Pacific (AIFFP) (AUD  2 billion) and the 
Australian Business Securitisation Fund. Export Finance Australia has a central role in administering 
the Defence Export Strategy, which is financed under the National Interest Account if it is unable to 
use its Commercial Account, and the AIFFP, which is delivered through the National Interest Account. 
In telecommunications, the Government is undertaking major investments in infrastructure through 
the AUD 49 billion rollout of a broadband access network (NBN Co.), and is leading efforts  to improve 
mobile coverage and competition through the Mobile Black Spot Program.  
17.  The Harper Review, a comprehensive review of Australia's competition laws and policy initiated 
in 2014, resulted in 56 recommendations regarding policy, law and institutions . In response, the 
Government introduced a package of legislation to simplify and strengthen the regime, allowing 
better targeting of anti -competitive behaviour, while also supporting pro -competitive behaviour. The 
Commonwealth Government, as an operationa l entity, includes a certain number of statutory 
corporations, companies,  and trusts. The state and territory governments also maintain a number 
of enterprises that provide a range of services. No privatizations were carried out at the 
Commonwealth level in the period under review. At the state and territory level, a number of 
significant transactions (e.g. long -term leases of infrastructure) were finalized.  
18.  Following ratification of Australia's accession to the WTO Agreement on Governme nt 
Procurement, the Agreement entered into force for Australia on 5 May 2019. Australia's FTAs also 
provide non -discrimination clauses, and set goals to eliminate preferential treatment and ensure 
transparency in tendering processes. The combined value of the contracts published through the 
Government's procurement information system, AusTender, amounted to AUD 71.1 billion in 
2017/18. Overall, 95% of the contracts (by volume) were awarded to businesses with an Australian 
address, including overseas supplie rs operating within Australia.  
19.  Australia considers intellectual property (IP) integral to its international trade policy and of 
increasing importance to the economy, as it seeks to transform from a reliance on mining and other 
natural resources to an econo my based on innovation and entrepreneurship. Legislation 
implementing the Protocol amending the WTO TRIPS Agreement entered into force in January 2017. 
Australia participates in 18 IP treaties administered by the World Intellectual Property Organization, 
and IP chapters are included in new RTAs/FTAs. A public inquiry into Australia's IP system, completed 
in 2016, produced a number of recommendations addressing, inter alia , the needs of SMEs within 
the system. The Government formulated its legislative respon se in a staged manner, presenting its 
proposed changes to Parliament in two parts. The first package was enacted in July 2018, and the 
second was introduced into Parliament in July 2019.  WT/TPR/S/ 396 • Australia  
 
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  20.  Agriculture makes a significant contribution to the economy, and repr esents around 14% of 
total merchandise exports. Support to the sector is limited, as Australia does not provide market 
price support. Current programmes target risk management, environmental conservation, and the 
provision of general services. Resource con straints, in particular access to water, remain a major 
challenge. Among many assistance measures taken recently in response to severe drought 
conditions, the Future Drought Fund (an initial credit of AUD 3.9 billion) is intended to provide a 
secure and co ntinuous revenue stream for drought -related measures. The Government signed a new 
agreement with state and territory governments in December 2018 to form a joint approach on 
drought preparedness, response and recovery, with measures across all jurisdiction s, to strengthen 
risk management practices and enhance long -term preparedness and resilience.  
21.  In the energy sector, the Government released a white paper in 2015 focusing on measures to 
enhance competition, thereby improving consumer choice and exerting do wnward pressure on 
prices, more effective use of energy, and encouraging investment in innovation and energy resource 
development. The National Energy Productivity Plan 2015 -30 targets a 40% improvement in energy 
productivity by the end of the period. Natu ral gas represents more than 25% of the present total 
primary energy supply. Noting a potential supply shortage by 2022, the Government introduced a 
gas security mechanism that may involve export restrictions on LNG.  
22.  Manufacturing, which accounts for nearl y 6% of GDP and 7.4% of employment, experienced 
declining competitiveness due to high costs for energy and other inputs, and tighter credit conditions. 
However, certain indicators show a manufacturing expansion since 2016. Various government 
programmes pro vide support at different stages of a firm's lifecycle. Among the stated objectives 
are the transition of businesses to high -value, high -growth activities; the promotion of innovation 
and advanced manufacturing; and the development of collaborative busines s networks (hubs) for 
SMEs.  
23.  Services account for more than 72% of GDP. Among the key services sectors are real estate; 
construction; finance and insurance; health care and social assistance; wholesale and retail trade; 
and professional, scientific and tech nical services. Australia's banking system is highly concentrated, 
as the four largest banks represent nearly 80% of the sector's assets. Profitability was good in recent 
years, and the banks are well -capitalized. Profitability in general (non -life) insura nce is more volatile, 
and that in life insurance has been declining. During the period under review, nearly all Australian 
banks sold, or announced plans to sell, their life insurance businesses to large global insurance 
specialists. The Government establi shed a Royal Commission to investigate alleged misconduct in 
banks and other financial services entities in 2017. The Commission's final report, issued in February 
2019, included 24 recommendations relating to institutions and individuals, and charged regu lators 
with the responsibility for not having done enough to prevent dishonest conduct.  
24.  Policies regarding the audiovisual sector include a regulatory regime that applies Australian 
content quotas, including sub -quotas for children's content, documentaries  and drama. Tax 
incentives are provided for the production of films and television programmes, in the form of 
producer, location and post, digital and visual effects offsets. The tax offsets accorded to the screen 
industry totalled AUD 313 million in 2016/ 17. 
25.  Recent strategies regarding the transportation sector include the National Transport Technology 
Action Plan (2016 -19), the National Road Safety Action Plan (2018 -20), and the National Freight and 
Supply Chain. The Government also requested the Producti vity Commission to assess the economic 
impact of reforms on transport regulation, and to recommend further reforms to achieve a more 
integrated national market for transport services. The Government plans to invest AUD  100 billion 
over ten years in new and  upgraded transportation infrastructure.  
26.  Tourism is a sector of growing economic importance, and source of employment, particularly in 
regional Australia. Tourism 2020 , a national strategy partnership between the G overnment and the 
industry , aims at doubli ng overnight expenditures  to between AUD 115 billion and AUD 140 billion 
by 2020 . It is supported by several supply -side targets , to enable the industry to achieve this goal.  
Efforts to attract more foreign visitors include investment in new technologies t o upgrade Australia's 
visa system. An industry -led Beyond Tourism 2020 Steering Committee  prepared a report to be the 
basis for the next strategy (Tourism 2030).  
 WT/TPR/S/ 396 • Australia  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Australia is a developed country, which is well integrated into the world economy. Its economy 
has been growing for nearly three decades, during which it had to adjust to the global financial crisis, 
a large terms -of-trade shock, and the mining investment boom running its course. This is indicative 
of the economy's resilience. It managed to navigate these shocks due to an open, diversified 
economy with a flexible exchange rate regime, liberalized capital account, and flexible labo ur and 
product markets . The se were support ed by prudent  macroeconomic policies, strong institutional 
arrangements , and robust regulatory frameworks. According to the Government, Australia  continue s 
to pursue policies to boost potential growth, and remain s firmly committed to open tr ade, investment 
and immigration. During the period under review, the ratio of total merchandise and services trade 
(sum of exports and imports) to GDP rose from 42.5% to 45.7% in 2018/19, depicting increased 
openness.  
1.2.  The economy is dominated by the servic es sector, whose share remained constant during the 
review period. Services account for over 72% of GDP. The shares of manufacturing (5.6%  in 
2018/19 ) and construction (7.5%  in 2018/19 ) declined during the review period, while that of mining 
(9.5%) rose. A griculture's contribution to GDP hovered around 3% (Table  1.1). 
Table 1.1 Selected economic indicators, 2012/13 -2018/19  
 
2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  
GDP (current AUD billion)  1,536 .3 1,598 .5 1,624 .4 1,662 .3 1,764 .5 1,848 .7 1,946 .2 
GDP (current USD billion)  1,577 .5 1,468 3 1,359 .4 1,210 .6 1,331 .2 1,433 .3 1,392 .3 
Real GDP growth (% change)  2.6 2.6 2.3 2.8 2.3 2.9 1.9 
GDP per capita (USD)  68,812  63,030  57,511  50,480  54,593  57,864  55,303  
Gross Value Added  by 
economic sector  
(% of current GDP)         
Agriculture, forestry and fishing  2.3 2.2 2.4 2.4 2.7 2.6 2.2 
Mining  7.7 8.4 6.6 5.8 7.6 8.2 9.5 
Manufacturing  6.6 6.4 6.3 6.1 5.8 5.8 5.6 
Electricity, gas, water and waste 
services  2.8 2.7 2.6 2.5 2.5 2.5 2.6 
Construction  8.0 8.1 8.1 7.9 7.6 7.5 7.5 
Wholesale trade  4.2 4.0 4.0 4.0 3.9 3.9 3.6 
Retail trade  4.5 4.4 4.4 4.4 4.3 4.3 4.2 
Accommodation and food services  2.3 2.3 2.4 2.4 2.3 2.3 2.3 
Transport, postal and 
warehousing  4.9 4.7 4.8 4.8 4.7 4.6 4.6 
Information media and 
telecommunications  2.8 2.7 2.7 2.6 2.5 2.4 2.2 
Financial and insurance services  8.0 8.0 8.5 8.8 8.7 8.9 9.0 
Rental, hiring and real estate 
services  2.7 2.8 2.9 3.0 3.0 3.0 3.0 
Professional, scientific and 
technical services  6.8 6.5 6.6 6.5 6.7 6.8 6.6 
Administrative and support 
services  3.1 3.1 3.3 3.2 3.2 3.2 3.4 
Public administration and safety  5.2 5.2 5.2 5.5 5.3 5.0 4.9 
Education and training  4.6 4.7 4.8 4.9 4.7 4.7 4.7 
Health care and social assistance  6.3 6.3 6.7 6.8 6.8 6.9 7.1 
Arts and recreation services  0.8 0.8 0.8 0.8 0.8 0.8 0.8 
Other services  1.8 1.8 1.8 1.8 1.8 1.7 1.7 
Ownership of dwellings  8.4 8.4 8.5 8.6 8.4 8.2 8.0 
All industries  93.7 93.5 93.3 93.0 93.2 93.4 93.4 
Taxes less subsidies on products  6.3 6.5 6.7 7.0 6.8 6.8 .. 
Statistical discrepancy  0.0 0.0 0.0 0.0 0.0 -0.1 .. WT/TPR/S/ 396 • Australia  
 
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2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  
Real GDP by expenditure (% 
change, based on chained 
AUD million)         
Final consumption expenditure  1.4 2.2 2.4 3.1 3.0 3.0 2.6 
General government  0.3 1.5 2.4 4.3 5.0 3.7 4.5 
Households  1.8 2.4 2.3 2.8 2.4 2.8 1.9 
Gross fixed capital formation  3.0 -1.8 -3.2 -3.4 -0.2 5.0 -1.1 
Private  4.3 -1.1 -2.6 -5.3 -3.1 5.5 -2.1 
Public  -2.3 -4.9 -6.1 5.9 12.7 3.0 2.9 
Domestic final demand  1.8 1.1 0.9 1.4 2.2 3.5 1.7 
Changes in inventories  -98.1 -3,148.7  -134.9  1.8 58.8 10.0 -102.2  
Gross national expenditure  1.5 0.9 1.1 1.4 2.2 3.5 1.5 
Exports of goods and services  5.3 6.0 6.8 6.8 5.5 4.1 3.5 
Imports of goods and services  0.3 -2.3 1.0 -0.1 4.7 7.1 -0.1 
Unemployment rate (%)  5.4 5.9 6.1 5.9 5.7 5.5 5.1 
Labour participation rate (%)  65.1 64.7 64.8 65.1 64.8 65.5 65.7 
Employment by sector  
(% of total employment)a        
Agriculture, forestry and fishing  2.6 2.8 2.6 2.6 2.6 2.6 .. 
Mining  2.3 2.1 1.9 1.8 1.8 1.9 .. 
Manufacturing  8.1 8.0 7.6 7.6 7.2 7.4 .. 
Electricity, gas, water and waste 
services  1.3 1.3 1.2 1.2 1.1 1.2 .. 
Construction  8.8 8.9 8.7 8.8 9.3 9.3 .. 
Services  76.9 76.9 78.0 78.0 78.0 77.5 .. 
Wholesale trade 3.7 3.3 3.3 3.1 3.0 3.0 .. 
Retail trade 10.7 10.7 10.6 10.4 10.3 10.1 .. 
Accommodation and food 
services  6.8 6.7 7.0 7.1 7.2 7.1 .. 
Transport, postal and 
warehousing  5.2 5.1 5.2 5.2 5.2 5.1 .. 
Information media and 
telecommunications  1.8 1.8 1.8 1.7 1.8 1.8 .. 
Financial and insurance 
services  3.6 3.6 3.6 3.6 3.5 3.5 .. 
Rental, hiring and real estate 
services  1.7 1.9 1.8 1.8 1.7 1.7 .. 
Professional, scientific and 
technical services  7.9 8.0 8.5 8.5 8.2 8.4 .. 
Administrative and support 
services  3.4 3.3 3.5 3.6 3.4 3.3 .. 
Public administration and 
safety 6.5 6.3 6.2 6.3 6.2 6.2 .. 
Education and training  7.8 7.9 8.0 8.0 8.2 8.2 .. 
Health care and social 
assistance  12.0 12.2 12.7 12.9 13.2 13.3 .. 
Arts and recreation services  1.8 1.8 1.9 1.9 1.9 2.0 .. 
Other services  4.0 4.2 4.1 4.0 4.1 3.8 .. 
Productivity         
Labour productivity (% change)  2.4 2.8 1.3 1.7 1.3 0.4 .. 
Capital productivity (% change)  -2.1 -0.8 -0.3 0.5 0.2 0.7 .. 
Multifactor productivity (% 
change)  0.4 1.3 0.6 1.2 0.9 0.5 .. 
Prices and interest rates         
Inflation ( Consumer Price Index 
(CPI) end of period, %  change)  2.4 3 1.5 1 1.9 2.1 1.6 
Inflation (CPI period average, 
% change)  2.3 2.7 1.7 1.4 1.7 1.9 1.6 
90-day bank bill (end of period)  2.80 2.70 2.15 1.99 1.72 2.07 1.29 
90-day bank bill (period average)  3.15 2.64 2.51 2.19 1.77 1.82 1.85 
Memorandum:         
Exports of goods and 
services/GDP (%) (at current 
market prices)  20.0 21.0 20.0 19.2 21.2 21.8 24.1 WT/TPR/S/ 396 • Australia  
 
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2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  
Imports of goods and 
services/GDP (%) (at current 
market prices)  21.3 21.5 21.5 21.5 20.6 21.4 21.6 
Exchange rate (USD/AUD, fiscal 
year average)  1.027  0.919  0.837  0.728  0.754  0.775  0.715  
Real effective exchange rate 
(% change)  1.4 -9.2 -3.9 -6.6 5.0 -1.0 -4.6 
Net foreign debt (USD million)  830,894  808,510  801,153  746,978  728,278  798,458  .. 
.. Not available.  
a Based on calendar year; 2012/13 should read 2013, etc.  
Source:  Australian Bureau of Statistics, National accounts (5206.0), Labour force (6202.0 and 
6291.0.55.003), Productivity (5204.0), Prices (6401.0), Balance of payments (5302.0), Exchange 
rate (5368.0); Reserve Bank of Australia; and the International Monetary Fu nd (IMF). 
1.2  Recent Economic Developments  
1.3.  During the period under review, real GDP expanded by an average annual rate of nearly 2.5%, 
which is below projected potential growth rates.1 Furthermore, the growth rate tapered off in 
2018/19 (Table 1.1). The Reserv e Bank of Australia (RBA) estimates of " year-ended GDP growth are 
2.5% over 2019, 2.75% over 2020 and around 3% over 2021".2 Over the past few years, the 
economy has been adjusting to the end of the mining and commodity boom, coupled with the legacy 
of the  global financial crisis. As a result, unemployment, fiscal deficits and public debt rose. However, 
the unemployment rate declined since 2015/16, and the fiscal balance also improved, turning into 
a slight surplus in 2018/19. The collapse of commodity pric es in 2011 resulted in cost -cutting and 
curtailed plans for new investment in the private sector. T he accommodative monetary policy to 
support the economy incentivized borrowing, which resulted in high real estate prices and mortgage 
debt. At their peak, housing prices had risen by 70% in the past decade at the national level, and 
nearly doubled in Sydney and Melbourne.3 
1.4.  Housing prices started declining from mid -2017, due to tightening credit supply, increased 
supply of dwellings, and a fall in domestic an d foreign demand. However, the ratio of house prices 
to income and the ratio of mortgage debt to household income remain high. Furthermore, despite 
strong employment growth and unemployment trending down, under -employment remains 
relatively high. Meanwhile , wages growth remains subdued, reflecting ongoing spare capacity in the 
economy, weaker non -labour income, and stronger household tax payments. Meanwhile, labour 
force participation increased to record highs, largely reflecting increased participation by females 
and older workers. Subdued growth in household income contributed to subdued consumption 
expenditure, which slowed GDP growth. Furthermore, tepid GDP growth, despite high labour market 
participation rates, implies weak labour productivity growth. T otal factor productivity showed a small 
increase, due to increased infrastructure investment and higher spending on research and 
development (R&D).  
1.5.  In response to the weak expansion in the economy, the authorities took a number of measures 
to stimulate dem and and economic activity, with monetary policy, in particular, targeted at boosting 
broad economic activity. On the monetary policy side, the RBA lowered its cash rate to 0.75%, its 
lowest ever level (Section 1.2.2). In contrast, over the review period, p ublic consumption spending 
increased, namely in the form of increased infrastructure investment, which should also help raise 
productivity. Other measures undertaken include lowered tax rates and increased spending on R&D 
(Section 1.2.3 ). 
1.6.   According to the IMF, "downside risks to economic growth have increased, with a less 
favourable global risk picture, the housing market downturn, and uncertainties about domestic 
demand".4 Australia's reliance on exports (both goods and services) to China  leave it exposed to 
risks relating to the current trade tensions between the United States and China. Additionally, the 
Australian economy is also likely to be affected by economic restructuring in China. Australia's 
                                                
1 Pre-election Economic and Fiscal Outlook 2019 . Viewed at:  https://treasury.gov.au/publication/2019 -
pefo. 
2 RBA, Statement on Monetary Policy , August 2019 . 
3 IMF Country Report No . 19/55 . 
4 IMF Country Report No. 19/55.  WT/TPR/S/ 396 • Australia  
 
- 14 - 
 
  reliance on natural resource exports a lso leaves it highly exposed to changes in global commodity 
prices.  
1.7.  On the domestic front, risks emanate from the housing market and its impact on consumption 
and consumer confidence. According to the authorities, "these risks include an excessive moderati on 
in credit flows, possibly from banks overreacting to the banking royal commission and the housing 
correction, unexpected strong caution by market participants in response to the correction, or from 
the interaction with other negative surprises shocks in  the context of high levels of household debt"5, 
all of which could adversely affect consumption and weaken growth.  
1.2.1   Monetary and exchange rate policy  
1.8.  Monetary policy is the remit of the RBA. "In determining monetary policy, the Bank has a duty 
to contribut e to the stability of the currency, full employment, and the economic prosperity and 
welfare of the Australian people. To achieve these statutory objectives, the Bank has an 'inflation 
target' and seeks to keep annual consumer price inflation in the econom y to 2% –3%, on average, 
over the medium term".6 Against this background, the RBA pursued an accommodative monetary 
policy stance during the period under review. The cash rate7 was on hold, at 1.5%, from August 
2016 to June 2019, which was considered approp riate with respect to progressing "… towards full 
employment, including through reducing under -employment, and for inflation to return gradually 
toward the mid -point of the target".8 However, recent data on wages, prices, output and 
unemployment pointed to wards spare capacity in the economy. Consequently, the RBA lowered its 
cash rate in its June, July and October board meetings to a new low of 0.75%. According to the RBA, 
"the Board took the decision to lower interest rates further today to support employm ent and income 
growth and to provide greater confidence that inflation will be consistent with the medium -term 
target. The economy still has spare capacity and lower interest rates will help make inroads into 
that".9 Furthermore, the RBA is of the view tha t an extended period of low interest rates will be 
required to reach full employment and achieve the inflation target, and it is prepared to ease 
monetary policy further to achieve these objectives.10 
1.9.  Both underlying and headline inflation remain low, refle cting modest wage growth and 
continued strong retail competition. Headline  inflation increased marginally to 0.4% in the 
June quarter of 2019, but was 1.6% for the year, below the RBA target range of 2% -3%. Underlying 
inflation was below the target range f or the last three years. Housing -related inflation was a 
significant contributor to the low inflation outcomes. In addition, low growth in prices of administered 
items also weighed in negatively on inflation. Higher prices for some retail goods, affected b y the 
drought or the pass -through of exchange rate  depreciation, only partly offset the decline in prices.  
1.10.   Australia has a freely -floating exchange rate regime. During the period under review, the 
Australian dollar depreciated by over 4.5% on a Real Effect ive Exchange Rate (REER) basis; against 
the US dollar. The nominal depreciation amounted to over 22%.  The depreciation partly reflects 
declining Commonwealth government bond yields relative to those in major markets, as market 
participants lowered their ex pectations for monetary policy in Australia. Furthermore, a declining 
REER would imply that Australian exports are less expensive, and should thus increase.  
1.2.2   Fiscal policy  
1.11.   The Government's fiscal policy stance has been supportive of its economic objectives,  through 
increased infrastructure spending. Despite the increased spending, the fiscal balance improved from 
a deficit of 2.7% of GDP in 2013/14 to a slight surplus of 0.1% in 2018/19 (Table 1.2). The 
turnaround in the fiscal balance was underpinned by str ong revenue growth, which is reflective of 
                                                
5 IMF Country Report No . 19/55 . 
6 RBA, Monetary Policy . Viewed at: https://www.rba.gov.au/monetary -policy/ . 
7 Monetary policy decisions are expressed in terms of a target for the cash rate, which is the overnight 
money market interest rate.  
8 IMF Country Report No. 19/55.  
9 RBA, Statement by Philip Lowe, Governor: Monetary Policy Decision . Viewed at:  
https://www.rba.gov.au/media -releases/2019/mr -19-27.html . 
10 RBA, An Economic Update . Viewed at:  https://www.rba.gov.au/speeches/2019/pdf/sp -gov-2019-09-
24.pdf . WT/TPR/S/ 396 • Australia  
 
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  the economy's improving cyclical position, stronger terms of trade and, until recently, the housing 
boom.11 
Table 1.2 Commonwealth government fiscal balance, 2012 -19 
(% of current GDP)   
2012/13  2013/14  2014/15  2015/16  2016/17a 2017/18a 2018/19a 
Revenue  24.1 23.7 23.9 24.2 23.4 24.0 25.5 
Taxation revenue  21.8 21.8 21.9 22.2 21.9 22.5 23.6 
Sales of goods and services  1.4 1.1 1.0 1.0 0.5 0.6 0.7 
Interest income  0.3 0.3 0.3 0.3 0.2 0.2 0.2 
Dividend income  0.1 0.2 0.2 0.2 0.2 0.2 0.4 
Other  0.5 0.4 0.5 0.6 0.5 0.5 0.5 
Expenses  25.6 25.8 26.4 26.6 25.5 25.1 25.0 
Gross operating expenses  8.1 7.7 7.8 8.3 7.7 7.7 8.4 
Wages and salariesb 1.4 1.4 1.4 1.4 1.1 1.1 1.1 
Superannuation  0.6 0.4 0.5 0.5 0.5 0.2 0.5 
Depreciation and 
amortization  0.5 0.5 0.5 0.6 0.5 0.5 0.4 
Supply of goods and 
services  5.2 4.9 5.1 5.4 5.2 5.5 6.0 
Other operating expenses  0.4 0.4 0.4 0.4 0.3 0.3 0.3 
Superannuation interest 
expense  0.4 0.5 0.6 0.5 0.5 0.6 0.5 
Interest expenses  0.9 1.0 1.0 1.0 1.0 1.0 0.9 
Current transfers  15.6 15.9 16.4 16.2 15.7 15.2 14.7 
Current grants  7.2 7.3 7.7 7.5 7.6 7.5 7.6 
Subsidy expenses  0.8 0.8 0.8 0.7 0.7 0.7 0.6 
Personal benefits  7.6 7.8 8.0 7.9 7.4 7.1 6.4 
Capital transfers  0.6 0.8 0.5 0.5 0.7 0.7 0.6 
Net operating balance  -1.5 -2.1 -2.5 -2.4 -2.2 -1.1 0.4 
Net acquisition of 
non-financial assets  0.3 0.6 0.3 0.5 0.1 0.0 0.3 
Fiscal balance (net 
lending/borrowing)  -1.8 -2.7 -2.9 -2.8 -2.3 -1.1 0.1 
a Estimates.  
b Other employee -related expenses are reported under other operating expenses. Total employee 
expenses equal wages and salaries plus other operating expenses.  
Source:  Australian Government, Department of Finance, Commonwealth Consolidated Financial Statements, 
several years.  
1.12.   On the expenditure front, in addition to increased infrastructure spending, the Government 
increased spending on education, healthcare and aged care.  It stated that the  increase was primarily 
driven by demo graphic factors, including the ageing of the population, higher demand for health 
services , and significant investment in pre -school education . However, expenditures as a proportion 
of GDP declined from 25.8% in 2013/14 to 25.0% in 2018/19. The decline can  mainly be attributed 
to a fall in the share of personal benefits, and wages and salaries. The decline in personal benefits 
was driven by government policies , aimed at targeting eligibility and supporting individuals from 
welfare to work , and lower demand for personal benefit payments due to a stronger labour market . 
1.13.   Going forward, it would appear that the focus of fiscal policy would be to achieve  a balanced 
budget (or surpluses) in the federal budget "over the cycle ", which is Australia's br oad (and 
longstanding) fiscal aspiration . By implication , this means fiscal policy will, in the absence of shocks, 
aim to lower public debt. To achieve this, proposals have typically envisaged deficit reduction 
averaging around  0.5%  of GDP a year , over a four-year budget horizon.  Once a balanced (or surplus) 
budget is achieved, policymakers would need to choose  between buffer building (i.e. gross public 
debt reduction) and fiscal space (less debt reduction means more room to lower tax  burdens, to 
accommodat e spending pressures , or for targeted expansion in public services and investment).  The 
official viewpoint is that "the Australian Government continues to maintain a responsible fiscal 
stance, while implementing its plan to lift potential growth by boostin g productivity through lower 
                                                
11 IMF Country Report No . 19/55 . WT/TPR/S/ 396 • Australia  
 
- 16 - 
 
  taxes, targeted spending and investment in infrastructure. Consistent with the  Government 's 
commitment to responsible budget repair, the fiscal position is projected to return to surplus in 
2019-20 and build surpluses exceeding  1% of GDP in the medium term. The Government is focused 
on containing recurrent spending, with average real payments growth now the lowest in 50 years ".12 
Furthermore, " Australian authorities consider that, given the current point in the cycle and as a sma ll 
open economy, it is important to preserve fiscal space as a buffer to deal with significant adverse 
shocks should they materialize ".13 
1.2.3   Structural issues  
1.14.   Australia 's multi -factor productivity growth increased over the past few years, but it is still  
below that of some peers.  Thus, to lift productivity and longer -term growth, sustained structural 
policy efforts  are required. The Government's structural policy agenda addresses  areas highlighted 
by the Productivity Commission and the Organisation for Economic Cooperation and Development 
(OECD ). These include financial sector regulation (Section  4.4.1), energy policy (Section  4.2.2 ), 
addressing infrastructure gaps, strengthening innovation and R&D capacity, tax reform, and 
reducing the gender gap in the labour force.  
1.15.   The Government has increased infrastructure spending to the tune of 0.5% of GDP per year, 
and expects to sustain this for the next three years. However, according to the IMF, t here is scope 
to further increase infrastructure spending to stimulate productivity.  The closing of the infrastructure 
gap could potentially raise GDP by 1% in the medium term.  The IMF notes that "t here is an average 
forecasted annual infrastruct ure gap of roughly 0.35 % of GDP through 2040 for basic infrastructure 
(roads, rail, water, ports), and an additional gap in social infrastructure (schools, hospitals, prisons), 
likely of a lesser magnitude ".14 
1.16.   The Government  has been encouraging innovation through the National Innovation and 
Science Agenda , which resulted in increased R&D funding by the Government in areas  such as 
financial support for innovative business, research -business collaboration, skills, government 
procurement , and data policy. Furthermore, initiatives to encourage innovation are ongoing. The 
2018-19 Budget announced an AUD 2.4 billion investment in research, science and technology 
capabilities . This had been highlighted in the Australia 2030: Prosperity through Innovation report . 
The Budget also announced  reform  of intellectual property legislation , following the Productivity 
Commission 's Shifting the Dial: 5 -Year Productivity Review from 2017.  Additionally, the Budget also 
detailed reforms of the R&D Tax Incentive , which focuses on prompting new R&D activity, while also 
improving integrity and program me administration . 
1.17.   Tax reform also aims to support productivity and inclusive growth , which motivated the 
Government to undertake reforms. Recent measures implemented include p ersonal income tax 
reductions  (announced in the FY2018/19 budget and approved by Parliament ). The se cuts will be 
phased in over seven years . The pension tax was reformed , including reduced tax concessions that 
mainly  benefit higher -income earners.  Implementation of t he company tax reform, which reduce s 
the statutory corporate income tax (CIT) rate gradually from 30 % to 25% for some  companies, was 
initiated . The CIT for SMEs has already been cut to 27.5% , and is due to reach 25% in 2021 -22 (the 
standard rate is 30%).  The 2018 -19 Budget also include s measures to address tax avoidance and 
evasion ("tax integrity") in relation to the black economy and multinationals. Stronger enforcement 
against  illicit tobacco  trade , an economy -wide cash -payment limit , and the establishment of a 
taskforce to strengthen information -sharing across agencies are among the measures proposed.  
However, value added tax (the Goods and Services Tax, GST)  reform was emphasized  by the IMF 
and the OECD  as, at 10% , GST is among the lowest in the OECD , and a range of goods and services 
are exempt.  
1.2.4   Balance of payments  
1.18.   During the period under review, Australia ran a current account deficit, which depicts a gap 
between gross national savings and gross investment. Such a  gap is not unusual for a resource -rich 
economy with a sparse population, whereby investment needs are not met by domestic savings.  
                                                
12 IMF Country Report No . 19/55 . 
13 IMF Country Report No . 19/55 . 
14 IMF Country Report No . 19/55 . WT/TPR/S/ 396 • Australia  
 
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  1.19.   In the aftermath of the fall in commodity prices, the current account deficit rose to nearly 
AUD 78 billion in 2015/16 (4.7%  of GDP), due mainly to a trade (goods) deficit, on account of 
declining export receipts. The deficit has since declined to around AUD 12 billion in 2018/19 (0.6% 
of GDP) (Table 1.3).  
Table 1.3 Balance of Paym ents, 2012 -19 
(AUD million)   
2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  
Current account  -60,403  -50,797  -59,761  -77,938  -38,821  -51,259  -12,002  
Goods and services balance  -19,912  -6,835  -24,770  -37,775  10,851  7,566  50,183  
Credits  306,588  336,322  324,674  319,721  373,740  403,326  469,891  
Debits  -326,500  -343,157  -349,444  -357,496  -362,889  -395,760  -419,708  
Goods balance  -2,447  10,035  -13,255  -27,534  13,631  12,853  53,912  
Credits  248,880  273,820  255,464  244,029  291,464  315,257  373,104  
Debits  -251,327  -263,785  -268,719  -271,563  -277,833  -302,404  -319,192  
Services balance  -17,465  -16,870  -11,515  -10,241  -2,780  -5,287  -3,729  
Credits  57,708  62,502  69,210  75,692  82,276  88,069  96,787  
Debits  -75,173  -79,372  -80,725  -85,933  -85,056  -93,356  -100,516  
Primary income  -38,213  -41,828  -33,210  -39,297  -47,949  -57,765  -60,907  
Credits  46,583  49,069  53,158  52,177  54,816  58,943  69,742  
Debits  -84,796  -90,898  -86,368  -91,474  -102,765  -116,708  -130,648  
Secondary income  -2,278  -2,134  -1,781  -866 -1,723  -1,060  -1,278  
Credits  7,497  8,114  8,573  8,884  8,898  9,155  9,425  
Debits  -9,775  -10,248  -10,354  -9,750  -10,621  -10,215  -10,703  
Capital and financial 
account  58,121  49,289  60,936  79,266  39,013  57,500  23,592  
Capital account  -453 -355 -519 -669 -439 -680 -771 
Acquisitions/disposals of 
non-produced non -financial 
assets  -94 44 12 26 141 169 40 
Credits  0 48 20 37 380 222 70 
Debits  -94 -4 -8 -11 -239 -53 -30 
Capital transfers  -359 -399 -531 -695 -580 -849 -811 
Credits  0 0 0 0 0 0 0 
Debits  -359 -399 -531 -695 -580 -849 -811 
Financial account  58,574  49,644  61,455  79,935  39,452  58,180  24,363  
Direct investment  55,623  55,701  40,186  61,924  65,093  61,773  68,774  
Assets  -4,560  1,906  -40,843  599 4,034  -20,617  9,532  
Liabilities  60,183  53,795  81,029  61,325  61,059  82,390  59,242  
Portfolio investment  21,443  40,279  47,623  -35,283  18,179  13,959  -81,878  
Assets  -45,516  -54,118  -48,376  -66,534  -41,392  -109,649  -61,073  
Liabilities  66,959  94,397  95,998  31,251  59,571  123,608  -20,806  
Financial derivatives  -4,471  -18,650  4,930  -4,211  -1,280  -11,282  -8,447  
Assets  38,702  84,591  70,095  95,239  115,898  76,554  75,397  
Liabilities  -43,172  -103,241  -65,165  -99,451  -117,178  -87,836  -83,844  
Other investment  -13,210  -16,955  -33,406  55,111  -22,910  -15,222  42,128  
Assets  -24,759  -64,675  -48,034  -2,024  -15,572  -4,209  35,452  
Liabilities  11,549  47,720  14,628  57,135  -7,338  -11,013  6,676  
Reserve assets  -811 -10,730  2,122  2,394  -19,630  8,952  3,785  
Net errors and omissions  2,282  1,508  -1,174  -1,328  -192 -6,242  -11,590  
Source:  Australian Bureau of Statistics, Balance of payments and international investment position (5302.0).  
1.20.   A key driver of the recent improvement in the current account is the turnaround in the goo ds 
balance, which is in a surplus. Rising exports were fuelled by increased demand in key export 
markets, higher global commodity prices and, to a certain extent, a depreciation of the Australian 
dollar. Additionally, export growth was also helped by lique fied natural gas exports coming online. 
In contrast, import growth slowed, reflecting higher import prices from the depreciating Australian 
dollar, and softer domestic demand.  WT/TPR/S/ 396 • Australia  
 
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  1.21.   In line with the goods balance, the services balance also improved significantly, from a deficit 
of nearly AUD 17 billion in 2013/14 (1.1% of GDP) to AUD 3.7 billion in 2018/19 (0.2% of GDP). 
The improvement in the services balance came about due to a sustained increase in travel receipts 
and tourism -related services (Tab le 1.4). Also, according to the RBA, "[i] ncreasing enrolments of 
overseas students and visitor arrivals should continue to support growth in service exports over the 
next couple of years. The importance of travel services to Australia's export base has inc reased 
considerably over the past two decades, from around half of total service exports in the early 2000s 
to around two -thirds more recently, with most of the increase driven by education -related travel 
exports ".15 
Table 1.4 Trade in services, 2012 -19 
(AUD million)   
2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  
Services credits  57,708  62,502  69,210  75,692  82,276  88,069  96,787  
Manufacturing services on 
physical inputs owned by others  1 28 10 17 21 5 0 
Maintenance and repair services 
n.i.e. 57 88 64 72 61 44 47 
Transport  6,084  6,465  6,634  6,931  7,533  7,542  7,789  
Passenger  2,374  2,390  2,442  2,742  2,833  2,936  3,097  
Freight  360 322 241 285 296 271 281 
Other  2,269  2,530  2,657  2,694  2,884  2,828  2,866  
Postal and courier  1,081  1,223  1,294  1,210  1,520  1,507  1,545  
Travel  34,666  37,981  42,531  47,730  52,780  56,595  62,937  
Business  2,829  2,679  3,035  2,916  3,059  2,661  2,966  
Personal  31,837  35,302  39,496  44,814  49,721  53,934  59,971  
Construction  32 151 170 163 393 726 903 
Insurance and pension services  472 530 535 557 519 553 616 
Financial services  2,841  3,284  3,956  3,897  3,961  4,569  4,915  
Charges for the use of intellectual 
property n.i.e.  827 825 1,021  1,064  1,257  1,167  1,364  
Telecommunications, computer 
and information services  2,283  2,465  2,890  3,243  3,332  4,219  5,009  
Telecommunication  378 387 391 461 403 396 399 
Computer and information 
services  1,905  2,078  2,499  2,782  2,929  3,823  4,610  
Other business services  8,824  8,905  9,387  9,971  10,350  10,442  10,920  
Personal, cultural and 
recreational services  700 814 998 983 959 1,076  1,133  
Government goods and services 
n.i.e. 921 966 1,014  1,064  1,110  1,131  1,154  
Gross inward insurance premiums 
receivable  1,325  1,451  1,481  1,519  1,488  1,556  1,712  
Gross inward insurance claims 
payable  -860 -921 -1,053  -1,015  -1,048  -999 -1,234  
Tourism -related services  37,040  40,371  44,973  50,472  55,613  59,531  66,034  
Services debits  -75,173  -79,372  -80,725  -85,933  -85,056  -93,356  -100,516  
Manufacturing services on 
physical inputs owned by others  0 0 0 0 0 0 0 
Maintenance and repair services 
n.i.e. -607 -789 -424 -554 -741 -614 -1,205  
Transport  -16,837  -16,756  -16,952  -17,406  -16,355  -17,511  -18,664  
Passenger  -7,070  -6,328  -6,320  -6,453  -6,789  -7,139  -7,499  
Freight  -9,132  -9,734  -9,906  -9,866  -8,429  -9,428  -10,109  
Other  -556 -597 -632 -985 -1,030  -831 -935 
Postal and courier  -79 -97 -94 -102 -107 -113 -121 
Travel  -34,860  -37,570  -37,389  -40,552  -42,293  -47,245  -50,705  
Business  -4,076  -3,877  -3,789  -3,781  -4,176  -4,208  -4,160  
Personal  -30,784  -33,693  -33,600  -36,771  -38,117  -43,037  -46,545  
Construction  0 0 0 0 0 0 0 
Insurance and pension services  -654 -717 -742 -767 -695 -716 -734 
                                                
15 RBA, Statement on Monetary Policy, August 2019 . WT/TPR/S/ 396 • Australia  
 
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2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  
Financial services  -1,685  -2,218  -2,866  -2,811  -2,838  -2,691  -2,638  
Charges for the use of intellectual 
property n.i.e.  -4,076  -4,204  -4,489  -4,760  -4,301  -4,625  -4,818  
Telecommunications, computer 
and information services  -2,193  -2,868  -3,148  -3,587  -3,559  -4,253  -4,716  
Telecommunication  -327 -366 -559 -706 -800 -978 -975 
Computer and information 
services  -1,866  -2,502  -2,589  -2,881  -2,759  -3,275  -3,741  
Other business services  -11,447  -11,434  -11,689  -12,225  -11,062  -12,005  -13,410  
Personal, cultural and 
recreational services  -1,792  -1,667  -1,892  -2,042  -1,857  -2,123  -1,880  
Government goods and services 
n.i.e. -1,022  -1,149  -1,134  -1,229  -1,355  -1,573  -1,746  
Gross inward insurance premiums 
receivable  -737 -719 -732 -721 -716 -714 -717 
Gross inward insurance claims 
payable  456 437 462 435 473 416 459 
Tourism -related services  -41,930  -43,898  -43,709  -47,005  -49,082  -54,384  -58,204  
Source:  Australian Bureau of Statistics, International trade in goods and services (5368.0).  
1.22.   The net income deficit rose in recent years. This is because the average yield that Australia 
pays on its net foreign liabilities increased by more than the yield it receives on net foreign assets, 
reflecting , for example , largely increa sed dividend payments to non -residents on account of 
increased profitability of the mining sector .16 
1.23.   With respect to the financial account, net direct investment flows have been robust since 
2015/16. However, net portfolio flows were volatile during the rev iew period. There was a significant 
outflow of portfolio investment in 2018/19. The main driver was "Short -term debt by deposit -taking 
institutions " (i.e. banks) , where there was a net withdrawal of nearly AUD 43 billion in the first half 
of 2019. Plausibl e explanations for the net outflow include: s hort-term debt issued by banks 
matured, and was paid back ; expectations about the exchange rate for the Australian dollar  declining 
may have encouraged foreign investors to lend less to Australian residents ; and perceptions about 
a change in government.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.24.   Measured in US dollars, merchandise exports declined from USD 252.9 billion in 2013 to 
USD 187.5  billion in 2015, before rising to USD 257.4 billion in 2018. Over the same period, 
merchandise imports followed the same trend. As per balance -of-payments data , total merchandise 
trade (sum of exports and imports) declined from the equivalent of 33.6% of GDP in 2013/14 to 
31% in 2015/16, before rebounding to 33.4% in 2017/18.  
1.25.   Services exports rose from AUD 62.5 billion in 2013/14 to AUD 88.2 billion in 2017/18. 
Services imports also rose during the same period, from AUD 79.3 billion to AUD 93.4 billion. Total 
trade in services (sum of exports and imports) as a share of GDP rose from 8.9% to 9.8%.  
1.26.   Australia has a highly concentrated export base, with mineral produ cts accounting for nearly 
60% of merchandise exports (Chart 1.1 and Table A1.1). The share of such products in total exports 
declined to less than 50% in 2015, before increasing again. The decline was due to falling 
international commodity prices. These ha ve since recovered, reflecting stronger terms of trade. 
Increased mineral exports also reflect new resource exports, such as liquified natural gas. Reflecting 
this growth in resource exports, the relative share of agricultural exports has been declining si nce 
2015. Toward the latter part of the review period , drought conditions also ha d some effect on 
agricultural production , particularly on some crops.  
                                                
16 RBA, A Balance of Payments . Viewed at: https://www.rba.gov.au/speeches/2019/sp -dg-2019-08-
27.html . WT/TPR/S/ 396 • Australia  
 
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  Chart 1.1 Merchandise trade by main HS Sections, 2013 and 2018  
 
Note:  US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).  
Source:  WTO Secretariat calculations, based on data from the Australian Government, Department of Foreign 
Affairs and Trade, trade statistical pivo t tables.  
1.27.   Imports are diversified. Machinery and electrical equipment continue to be the largest import 
category, followed by vehicles and transport equipment, and mineral products (Chart 1.1 and 
Table  A1.2). The shares of both machinery and electrical equipment, and vehicles and transport 
equipment in total imports rose. In contrast, the share of mineral products declined. Slower import 
growth can be attributed, in part, to a depreciating Australian dollar. Subdued private expenditure 
and investment added to this over the last year . 
Chart 1.1
Merchandise trade by main HS sections, 2013 and 2018
2013 2018
(a)    Exports
Total: USD 253.7 billion
(b)    Imports
Total: USD 233.4 billion Total: USD 227.6 billion
Source:   WTO Secretariat calculations, based on data from the Australian Government, Department of Foreign 
Affairs and Trade, Trade statistical pivot tables.Total: USD 257.7 billionBase metals
5.1%Other
12.9%
Prepared 
foodstuffs
3.7%Other
12.8%
Chemicals
8.6%Base metals
4.7%Machinery & 
electrical equipment
3.1%
Base 
metals
5.6%Mineral 
products
17.8%
Textiles
3.6%
Machinery & 
electrical equipment
24.6%Other
14.8%
Chemicals
8.3%
Base 
metals
5.2%Plastics
4.2%
Machinery & 
electrical equipment
25.3%Other
16.1%
Optical & 
precision 
instruments
4.0%Prepared 
foodstuffs
4.2%Mineral 
products
14.0%
Textiles
4.2%Mineral 
products
57.2%Mineral 
products
58.2%Machinery & electrical 
equipment
3.4%
Optical & 
precision 
instruments
3.7%Pearls, 
precious 
stones & 
metals
6.3%
Plastics
4.0%Chemicals
5.6%Live 
animals
5.7% Vegetable 
products
3.8%Vegetable 
products
5.5%
Chemicals
4.7%Pearls, precious 
stones & metals
6.2%
Vehicles & 
transport 
equipment
14.7%Vehicles & 
transport 
equipment
13.6%Live 
animals
5.0%
Note:   US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).WT/TPR/S/ 396 • Australia  
 
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  1.28.   China continues to be the largest destination for Australian exports, followed by Japan and 
the Republic of Korea (Chart 1. 2 and Table A1. 3). All three are significant importers o f mineral 
products. During the period under review, the share of China rose, as did that of India, while those 
of Japan and the Republic of Korea declined. Furthermore, the share of Asia as a whole also rose, to 
over 84% in 2018, making Australia highly de pendent on the Asian market and economy.  
Chart 1.2 Merchandise trade by main origin and destination, 2013 and 2018  
 
Note:  US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).  
Source:  WTO Secretariat calculations, based on data from the Australian Government, Department of Foreign 
Affairs and Trade, trade statistical pivot tables.  
Chart 1.2
Merchandise trade by main origin ad destination, 2013 and 2018
2013 2018
(a)    Exports
Total: USD 253.7 billion
(b)    Imports
Total: USD 233.4 billion Total: USD 227.6 billion
Source:   WTO Secretariat calculations, based on data from the Australian Government, Department of Foreign 
Affairs and Trade, Trade statistical pivot tables.Total: USD 257.7 billionChina
33.1%Others
5.9%
Hong Kong, 
China
4.1%
Japan
18.1%
United 
States
11.3%Americas
5.3%
China
34.4%Others
6.3%
Other Asia
15.5%Americas
5.0%
Other Asia
14.3%
Malaysia
3.9%Other 
Americas
2.9%
Japan
7.9%EU-28
18.1%Singapore
3.8%
China
19.6%Other 
Asia
13.2%Others
6.9%
Korea, Rep. of
4.4%United 
States
11.1%
Other 
Americas
6.8%
EU-28
18.3%
Japan
7.5%Other Asia
12.7%Others
4.1%
Americas
14.2%Americas
13.7%
Other Europe
1.7%Other Europe
1.7%Asia
59.2%Asia
62.2%
Thailand
4.9%Chinese, Taipei
3.1%
India
4.9%India
3.6%
Singapore
5.4%Japan
16.3%Korea, 
Rep. of
7.5%Hong Kong, China
3.0%Europe
5.7%
Asia
83.4%Europe
5.8%
Asia
84.2%
Europe
20.0%Europe
19.8%Chinese, 
Taipei
2.8%
Korea, Rep. of
7.1%
Korea, 
Rep. of
4.4%
China
24.6%Thailand
4.7%Malaysia
4.3%
Note:   US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).WT/TPR/S/ 396 • Australia  
 
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  1.29.   The main sources of Australian imports in 2018 were China, EU -28, the United States, and 
Japan (Chart 1. 2 and Table A1. 4). During the period under review, the shares of China and EU -28 
increased. The shares of the United States showed a slight decline. The share of Asia as a whole also 
rose. 
1.3.2   Trends and patterns in foreign direct investment (FD I) 
1.30.   Due to the relatively liberal investment regime, competitive markets , and a high incidence of 
natural resources, Australia attracts significant FDI. During the period under review, net inward flows 
of FDI to Australia averaged around AUD 60 billion a ye ar, ranging from AUD 37.6 billion in 2015 to 
AUD 80.9 billion in 2018.17 Consequently, the stock of FDI rose from AUD 710 billion in 2014 to 
around AUD 968 billion in 2018. Mining and quarrying make up over a third of the FDI stock 
(Table  1.5). Other signif icant recipients of FDI are manufacturing, financial and insurance activities , 
and real estate activities. Major investors are EU -28, the United  States , and Japan which , 
cumulatively , are responsible for over 56% of the FDI stock (Table 1.6).  
Table 1.5 Foreign investment by economic sector, 2013 -18 
(AUD million)   
2013  2014  2015  2016  2017  2018  
In Australia        
Total  642,780  710,233  774,416  837,673  883,840  967,505  
Agriculture, forestry and fishing  1,680  1,544  3,209  3,279  3,569  3,163  
Mining and quarrying  243,707  295,842  313,831  336,247  343,609  365,516  
Manufacturing  88,598  86,341  90,528  94,697  101,795  107,651  
Electricity, gas, steam and air conditioning 
supply; and water supply, sewerage, waste 
management and remediation activities  11,820  12,814  15,926  15,834  20,385  21,677  
Construction  16,698  18,942  17,511  20,188  24,368  22,447  
Wholesale and retail trade;  and repair of 
motor vehicles and motor cycles  55,375  58,683  52,851  53,762  54,673  56,667  
Accommodation and food service activities  6,655  8,138  7,242  6,973  6,799  8,745  
Transportation and storage  12,282  13,576  21,171  24,843  19,969  19,493  
Information and communication  27,344  25,027  26,435  25,136  25,458  26,891  
Financial and insurance activities  63,926  50,915  63,713  66,059  73,849  107,529  
Real estate activities  33,729  46,815  58,102  75,623  90,831  102,851  
Professional, scientific and technical 
activities  3,750  3,786  4,521  5,400  6,633  6,484  
Administrative and support service 
activities  2,429  1,832  1,555  3,773  4,071  4,652  
Public administration; and activities of 
households and of extraterritorial 
organizations  np np np np np 839 
Education  - - np np np np 
Human health and social work activities  2,044  3,641  1,778  3,526  3,978  3,933  
Arts, entertainment and recreation  240 232 np np np np 
Other service activities  np np np 303 np np 
Unallocated  72,082  81,681  95,219  97,556  101,792  108,187  
Abroad        
Total  -515,470  -569,577  -568,575  -597,045  -635,860  -695,644  
Agriculture, forestry and fishing  np np np np np np 
Mining and quarrying  -143,354  -156,718  -114,644  -126,293  -130,239  -149,011  
Manufacturing  -67,845  -80,108  -96,181  -95,316  -113,662  -144,378  
Electricity, gas, steam and air conditioning 
supply; and water supply, sewerage, waste 
management and remediation activities  -8,112  -7,579  -4,803  -4,663  -5,008  -5,967  
Construction  -12,319  -10,874  -8,796  -8,976  -9,893  -7,975  
Wholesale and retail trade; and repair of 
motor vehicles and motor cycles  -5,236  -5,471  -6,150  -7,354  -5,934  -7,375  
                                                
17 These numbers are based on ABS 5352 FDI inflows rather than  the change in stock ( which includes 
revaluations).  
 WT/TPR/S/ 396 • Australia  
 
- 23 - 
 
   
2013  2014  2015  2016  2017  2018  
Accommodation and food service activities  np np -86 -81 -165 -81 
Transportation and storage  -2,738  -3,028  -4,089  -4,041  -3,669  -3,475  
Information and communication  -2,427  -2,395  -3,194  -1,880  -2,577  -2,970  
Financial and insurance activities  -147,826  -154,484  -164,940  -170,313  -175,798  -168,956  
Real estate activities  -9,710  -12,317  -16,071  -16,562  -18,919  -20,104  
Professional, scientific and technical 
activities  np np -2,904  -2,860  -2,469  -2,564  
Administrative and support service 
activities  -2,284  np np np np -3,401  
Public administration; and activities of 
households and of extraterritorial 
organizations  - - - - - - 
Education  - - np np np np 
Human health and social work activities  np -6,811  -5,868  -6,346  -6,003  -6,875  
Arts, entertainment and recreation  np np np np np np 
Other service activities  - - - - - np 
Unallocated  np np np np np np 
np Not available for publication.  
- Nil or rounded to zero.  
Note:  Economic sectors are defined ac cording to the Australian and New Zealand Standard Industrial 
Classification (ANZIC).  
Source:  Austral ian Bureau of Statistics, International investment position, supplementary statistics (5352.0).  
1.31.   Australia is also a large overseas investor. In 2018, the stock of overseas FDI was 
AUD 695.6  billion. Main sectors invested in are financial and insurance services, mining a nd 
quarrying, and manufacturing (Table 1.5). The main countries invested in are EU -28, the 
United  States, and New Zealand (Table 1.6).  
Table 1.6 Direct investment by main partner countries, 2013 -18 
(AUD millio n)  
2013  2014  2015  2016  2017  2018  
Inward stock        
All countries  642,780  710,233  774,416  837,673  883,840  967,505  
EU-28 148,608  155,175  156,385  175,098  197,969  225,669  
United States  152,375  163,665  183,912  194,518  193,511  214,291  
Japan  67,843  77,659  91,923  97,370  97,118  105,898  
United Kingdom  79,280  78,581  64,912  74,718  87,137  98,747  
Netherlands  29,694  40,103  48,033  51,518  56,009  49,262  
China (excludes special administrative 
regions ( SARs) and Chinese  Taipei)  23,364  31,863  35,724  38,693  38,376  40,105  
Bermuda  10,008  41,063  35,728  34,979  38,300  39,780  
Canada  16,944  22,697  24,802  27,824  32,175  36,928  
France  5,530  5,732  6,392  6,120  6,479  28,741  
Singapore  23,331  27,893  29,161  23,289  25,988  28,025  
Germany  13,477  15,785  16,997  19,543  24,008  24,299  
British Virgin Islands  np np 21,476  21,470  20,753  21,928  
Hong Kong (SAR of China)  7,934  9,622  12,553  13,640  15,807  16,350  
Malaysia  9,135  9,571  10,849  12,271  13,389  13,941  
Switzerland  18,993  7,931  9,087  9,252  9,401  10,144  
Luxembourg  2,864  2,938  2,799  6,347  9,430  8,918  
New Zealand  5,119  5,103  5,595  5,915  5,723  6,551  
Thailand  4,641  4,559  5,619  4,657  5,440  5,821  
Belgium  4,756  4,029  5,009  5,563  5,265  5,380  
Korea, Republic of  2,939  3,162  3,178  4,367  4,580  5,189  
Outward stock        
All countries  -515,470  -569,577  -568,575  -597,045  -635,860  -695,644  
EU-28 -96,447  -107,566  -116,475  -111,100  -123,113  -163,579  WT/TPR/S/ 396 • Australia  
 
- 24 - 
 
   
2013  2014  2015  2016  2017  2018  
United States  -124,540  -133,366  -108,645  -120,675  -127,611  -120,659  
United Kingdom  -70,119  -77,940  -85,966  -79,438  -89,216  -118,658  
New Zealand  -47,691  -60,208  -59,438  -66,386  -62,470  -56,401  
Canada  -28,350  -12,116  -7,895  -8,146  -10,509  -33,814  
Singapore  -10,518  -13,120  -18,721  -20,108  -20,192  -24,437  
Papua New Guinea  -16,396  np np -16,021  -16,060  -14,624  
China (excludes SARs and Chinese 
Taipei)  np -12,567  -13,893  -13,368  -13,322  -13,540  
Netherlands  -7,342  -8,531  -7,600  -8,079  -6,851  -7,709  
Malaysia  -5,878  -6,253  -5,504  -5,579  -5,922  -6,001  
Hong Kong (SAR of China)  -4,274  -5,097  -4,969  -4,464  -4,296  -5,168  
Brazil  -7,294  np -4,138  -4,446  np -4,546  
France  -1,089  np -2,185  -2,619  -2,410  -3,156  
Indonesia  -7,500  -5,308  -5,553  -6,241  -7,547  -2,283  
Chile -2,132  -1,485  np -1,602  -1,615  -1,827  
India -1,318  -1,530  -1,610  -1,759  -1,849  -1,619  
Thailand  -690 -628 -1,490  -1,749  -1,749  -1,386  
Japan  -476 -470 np np -886 -1,313  
South Africa  -1,032  -815 -1,168  -1,210  -2,778  -1,266  
Korea, Republic of  -714 -676 np -815 -858 -1,159  
np Not available for publication but included in totals where applicable, unless otherwise indicated.  
Source:  Australian Bureau of Statistics, International investment position, supplementary statistics (5352.0).  
 WT/TPR/S/ 396 • Australia  
 
- 25 - 
 
  2  TRADE AND INVESTMENT  REGIMES  
2.1  General Framework  
2.1.  Australia's constitutional and institutional framework remains unchanged since its previous 
Trade Policy R eview  in 2015 . The main focus of the Government has continued to be the development 
of an enabling environment with less burdensome regulations for ci tizens and businesses, reforms 
to cut government expenditure, achieving a budget surplus, and the provision of efficient and 
effective government services.  
2.2.  The Commonwealth of Australia was formed in 1901, when six partly self -governing British 
colonies un ited to become states of a nation.1 The rules of government were included in the 
Australian Constitution, which specified how the Commonwealth Government would operate and 
what issues it could pass laws on.  Powers are divided between the Commonwealth feder al 
Government and the six state governments . In addition to the states, Australia has  several 
territories, two of which are self -governing, but over which the Commonwealth retains ultimate 
power. Each state has its own constitution and government. The stat es and territories remain 
responsible for a number of trade -related policies, such as standardization, government 
procurement, and enterprises in public ownership . Legislative state powers include agriculture, 
education, health, law enforcement, and variou s services. States may also provide bounties 
(subsidies) or impose taxes on mining activities. The Commonwealth has exclusive power concerning 
all other bounties and support measures. In case of inconsistencies between Commonwealth and 
state legislation, t he former prevails to ensure uniformity throughout the Commonwealth.  
2.3.  At the Commonwealth level, l egislative power is vested in Parliament, compris ing a  151-
member House of Representatives (lower house) and a 76-member Senate (upper house). Elections 
for th e House of Representatives and half of the Senate (40 seats) were last held on 18 May 2019. 
The Houses of Parliament have equal power to introduce and amend bills , except for "money" and 
taxation bills  (may only be introduced in the House of Representatives ). Parliament, inter alia , has 
exclusive power to impose and alter customs duties. Bills that have been passed by both Houses 
and received assent from the Governor -General become law. Certain members of the legislature 
(called ministers) are  also members of the executive, with special responsibilities for certain areas 
of the law . 
2.4.  Executive power is vested in the Head of State, represented by the Governor -General, who is 
appointed by the British monarch.2 The Governor -General appoints the Pri me Minister who, by 
convention, is the leader of the party or coalition of parties that has the majority of seats in the 
House of Representatives. The Governor -General appoints the Ministers of State  on the advice of 
the Prime Minister. The Prime Minister and Ministers are accountable to Parliament.  
2.5.  Federal j udicial power is vested in the High Court of Australia, which is the final court of appeal, 
and in the Federal Court, the Family Court, the Federal Magistrates' Court of Australia , and other 
courts. Eac h state or territory has a court hierarchy of its own, with the jurisdictions of each court 
varying from state to state and territory to territory. All states and territories have a Supreme Court; 
decisions of the High Court are binding on all Australian c ourts.  
2.6.  Since 1992, the Council of Australian Governments (COAG) has manage d matters of national 
significance or matters that need co -ordinated action.3 It has facilitated consultation, cooperation, 
and policy co -ordination between the Commonwealth, states,  and territories, with a view to avoiding 
potential inconsistencies in several policy areas. The COAG usually meets twice a year. However, it 
may be convened more frequently if needed. It may also settle issues out -of-session by 
correspondence.  The outcome s of COAG meetings are published  in communiqués at the end of each 
gathering . Where formal agreements are reached, these may be embodied in intergovernmental 
agreements, including National Agreements and National Partnership Agreements . 
                                                
1 Austral ian Government , How Government Works . Viewed at: https://www.australia.gov.au/about -
government/how -government -works . 
2 Australian Government , How Government Works . Viewed at : https://www.australia.gov.au/about -
government/how -government -works . 
3 COAG . Viewed at: https://www.coag.gov.au/about -coag. WT/TPR/S/ 396 • Australia  
 
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  2.7.  During the review p eriod, the COAG initiated, developed, and monitored the implementation 
of policy reforms of national significance , and concluded (i) an Intergovernmental Agreement on 
Competition and Productivity -Enhancing Reforms to build future productivity, growth and j obs, 
committing the  governments to work together to build a more productive and well -functioning 
economy, recogni zing that flexible approaches are required to ensure Australians in regional and 
remote areas share the benefits of increased competition4; and (ii) an Intergovernmental Agreement 
on Biosecurity  to support a collective government approach to biosecurity, covering areas such as 
trade, agriculture, forestry, fisheries, tourism, the environment, social amenities, and human 
health.5 The p arties agree d to prioriti ze reforms at their discretion to remove unnecessary regulatory 
barriers to competition , boost innovation to provide better outcomes for individuals in the delivery 
of human services , promote efficient investment in and use of infrastructure , and advance other 
productivity -enhancing reforms across the economy.6 
2.2  Trade Policy Formulation and Objectives  
2.8.  Trade policy in Australia  is founded on a broad understanding that i nternational trade and 
investment is critical to the economy, providing jobs and prosperity.  Emphasis has been given to 
trade agreements that can improve market access across all areas of trade , goods, services and 
investment , and help to maintain and stimulate the competitiveness of Australian firms .7 The 
Government  also places importance on an open international economy to guard against 
protectionism, and promotes international rules that counter unfair trade actions and help resolve 
disputes.8 Furthermore, t he new Economic and Commercial Diplomacy Agenda , launched in 
November 2018, promotes an open global economy, support ing businesses seeking commercial 
opportunities, advanc ing Australia's  political and economic interests, and strengthen ing their 
international competitiveness.9 The Agenda focuse s on five key pillar s of activity: promoting 
investment; addressing non -tariff barriers; supporting and facilitating business; advocating for the 
global rules -based trade system ; and increasing science, technology and innovation links . The 
2018/19 Budget provide s AUD 15 milli on over four years to increase support for Australian business 
overseas, including strengthening the economic and commercial diplomacy agenda.  
2.9.  The Minister for Trade , Tourism and Investment  and the Department of Foreign Affairs and 
Trade (DFAT) maintain re sponsibility for bilateral, regional, and multilateral trade policy , as well as 
administrative responsibility for all treaties. The DFAT provides foreign, trade and development 
policy advice to the Government , and wor ks with other government agencies to en sure that 
Australia 's pursuit of its global, regional and bilateral interests is coordinated effectively . The 
Treasurer and Attorney -General hold authority , along with the DFAT, with respect to bilateral 
investment treaties and investment protection and promotion agreements . The Australian Trade and 
Investment Commission (Austrade) is the trade and investment promotion agency supporting 
businesses. Other agencies that are involved i n international trade policy and trade relations include 
the Departments of Home Affairs; Agriculture  and Water Resources;  Industry, Innovation and 
Science;  Infrastructure , Transport , Cities and Regional Development; the Environment and Energy; 
Communications and the Arts; Health; and the Treasury.  
2.10.   The trade polic y formulation and evaluation structure continues to be  very transparent , and 
involve s interactions between the executive branches of government, advisory bodies, businesses, 
non-governmental organizations (NGOs), and other stakeholders. The Productivity Co mmission (PC) 
remains the Government's independent research and advisory body on a range of economic, social 
and environmental issues . Its advice to the G overnment, together with the information and analysis 
on which it is based, are open to public scrutin y. 
                                                
4 COAG, COAG meeting Communiqué, 9 December 2016 . Viewed at: https://www.coag.gov.au/meeting -
outcomes/coag -meeting -communiqu%C3%A9 -9-december -2016. 
5 COAG, Intergovernmental Agreement on Biosecurity . Viewed at: 
https://www.coag.gov.au/sites/default/files/agreements/iga -biosecurity_0.pdf . 
6 COAG, Intergovernmental  Agreement on Competition and Productivity – Enhancing Reforms . Viewed 
at: https://www.coag.gov.au/sites/default/files/agreements/IGA -productivity -reforms.pdf . 
7 DFAT , Trade and investment . Viewed at: https://dfat.gov.au/trade/Pages/trade -and-investment.aspx . 
8 Australian Government , 2017 Foreign Policy White Paper . Viewed at: 
https://www.fpwhitepaper.gov.au/ . 
9 DFAT, Australia's economic and commercial diplomacy . Viewed at: 
https://dfat.gov.au/trade/engage/economic -diplomacy/Pages/economic -and-commercia l-diplomacy.aspx . WT/TPR/S/ 396 • Australia  
 
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  2.11.   The executive branch of Government has the power to enter into trade and other treaties 
under  Section 61 of the Constitution.10 Decisions to engage in negotiation at the multilateral  level 
are taken at ministerial level and , in many cases , by the Cabinet . The discussions and decisions 
includ e the  determination of objectives , negotiating positions , parameters within which the 
Australian delegation may operate ; and the final decision to sign and ratify  concluded agreements . 
2.12.   According to the authorities, Parliament examines all proposed treaty actions through the 
Joint Standing Committee on Treaties. Major treaty actions are tabled in Parliament , with a National 
Interest Analysis that explains the impact of the proposed treaty  action on the national interest , and 
a Regulation Impact Statement for treaties that affect business or restrict competition.  Consultation 
with state and territory governments occur at different levels, including through the Commonwealth -
State -Territory S tanding Committee on Treaties (SCOT), which consists of representatives from the 
Premier's or Chief Minister's departments in every state and territory. The SCOT is chaired by a 
senior official from the Department of the Prime Minister and Cabinet , and inc ludes representatives 
from the DFAT and the Attorney General's Department. Industry and other interested groups are 
consulted through a wide range of processes (from standing bodies to informal methods). Treaties 
may also be subject to consideration by oth er parliamentary committees, such as the Foreign Affairs, 
Defence and Trade References Committee.  
2.13.   Australian trade laws mainly take the form of statutes and implementing regulations .11 
Regulations are published in Commonwealth of Australia Gazettes , while s tatutes are printed 
separately .12 Similar arrangements hold for state and territory governments.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.14.   Australia  was an original GATT contracting party, and has been a Member of the WTO since 
its founding in 1995 . It grants a t least most -favoured -nation (MFN) treatment to all trading partners. 
During the period under review, Australia ratified the WTO Trade Facilitation Agreement (on 9 June 
2015), with 100% implementation of commitments to date , across all categories .13 Moreove r, 
Australia joined the plurilateral WTO Agreement on Government Procurement, submitting its 
instrument of accession to the WTO Secretariat on 5 April  2019.14 Furthermore, i n 2015 , it agreed 
to expand coverage to 201 more products in the Information Technology Agreement (ITA) .15 
2.15.   Australia has maintained a strong record  regarding notifications to the WTO . From 1 January 
2015 to 15 November  2019, it provided nearly 200 notifications in re lation to the  Agreement on 
Agriculture  (36 notifications), the  Agreement on Subsidies and Countervailing Measures (18), the 
Agreement on Sanitary and Phytosanitary Measures  (134), the Agreement on Technical Barriers to 
Trade (13), the Agreement on Import L icensing Procedures (9)  and the General Agreement on Trade 
in Services ( 8). The notifications submitted during  the review period are listed in Table A2.1.  
2.16.   Since 2015, Australia has been a respondent in one new dispute settlement case and a 
complainant in two new cases.16 In addition, Australia has reserved its third party rights in 20 cases . 
                                                
10 DFAT, Treaty making process . Viewed at: https://dfat.gov.au/international -relations/treaties/treaty -
making -proce ss/pages/treaty -making -process.aspx . 
11 Federal Register of Legislation . Viewed at: https://www.legislation.gov.au/ . 
12 These gazettes are the Government Notices Gazette ; the Australian Public Service Gazette; the  
Government Purchasing  Gazette ; the Business Gazette;  the Australian Securities and Investments Commission  
Gazette; the Tariff Concessions Gazette; the Chemical Gazette; the Australian Pesticides and Veterinary  
Medicines Authority Gazette; and the Food Standards Gazette.  
13 WTO documents G/TFA/W/9; G/TFA/N/AUS/2; and G/TFA/N/AUS/1; and the Trade Facilitation 
Agreement Database. Viewed at: https://www.tfadatabase.org/members/australia . 
14 WTO, Australia ratifies WTO procurement pact . Viewed at: 
https://www.wto.org/english/news_e/news19_e/gpro_05apr19_e.htm . 
15 The ITA was concluded at the Singapore Ministerial C onference in December 1996.  
16 Australia is a respondent  in Anti-Dumping Measures on A4 Copy Paper (DS529 ) and a complainant in 
Measures Governing the Sale of Wine (DS537) and Measures Concerning Sugar and Sugarcane (DS580 ). In 
addition, it is a respondent to the tobacco plain packaging cases (DS441, DS435). WTO. Viewed at: 
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds529_e.htm , WT/TPR/S/ 396 • Australia  
 
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  2.3.2   Regional and preferential agreements  
2.3.2.1   Regional trade agreements (RTAs)  
2.17.   At the end of 2018, Australia had 12  RTAs in force with a total of 19 economies, i.e. Brunei 
Darussalam ; Canada ; Cambodia ; Chile; China; Indonesia ; Japan; Korea , Rep. of ; Lao P eople's 
Democratic Republic;  Malaysia ; Mexico; Myanmar ; New Zealand ; Papua New Guinea ; the 
Philippines ; Singapore ; Thailand ; the United States ; and Viet Nam. With New Zealand, Thailand, 
Singapore and Malaysia, Australia has  reciprocal commitments under the Agreement Establishing 
the ASEAN -Australia -New Zealand  Free Trade Area  (AANZFTA) as well as under bilateral 
agreements . Australia has commitme nts under the Comprehensive and Progressive Agreement for 
Trans -Pacific Partnership (CPTPP) and under bilateral agreements  with Japan, New Zealand, and 
Singapore.  It also has bilateral agreements with Chile and Malaysia, but these countries have yet to 
ratify the CPTPP. A mendments to the Singapore -Australia Free Trade Agreement entered into force 
on 1 December 2017. The main features of the RTAs, and details of the status of their consideration 
by the WTO Committee on Regional Trade Agreements, are enumerat ed in Table A2.2. All the 
agreements  were notified to the WTO  by Australia.17 
2.18.   Three new RTAs entered into force since December 2014; the CPTPP between Brunei 
Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet  Nam, 
which will enter into force for Brunei Darussalam, Chile, Malaysia and Peru 60 days after they 
complete their respective ratification processes ; and two bilateral RTAs, with Japan and China. 
Furthermore, four new RTAs were signed in this period, although they were not yet in force as at 
August 2019, i.e. with Hong Kong, China; Peru; Indonesia; and the Pacific Agreement on Closer 
Economic Relations Plus.18 
2.19.   FTAs involving Australia under negotiation as at May 2019 comprise the Australia -European 
Union Free Trade A greement, the Australia –Gulf Cooperation Council FTA (with Bahrain, Kuwait, 
Oman, Qatar, Saudi Arabia , and the United Arab Emirates ), the Australia –India Comprehensive 
Economic Cooperation Agreement, the Pacific Alliance Free Trade Agreement (with Chile, C olombia, 
Mexico , and Peru ); and the Regional Comprehensive Economic Partnership (between ten ASEAN 
member States and countries having  FTAs with ASEAN , i.e. Australia ; China ; India; Japan ; Korea , 
Republic of ; and New Zealand )19. In addition, Australia is involved in the negotiations to reach an 
Environmental Goods Agreement20, and a plurilateral Trade in Services Agreement  (TiSA).21 
2.20.   The Japan -Australia Economic Partnership Agreement (JAEPA) entered into force in January 
2015.22 For Australia's ex ports to Japan, the JAEPA involves the gradual reduction and elimination 
of tariffs on most agricultural items, notably for beef, wine (the elimination of the original 15% tariff 
on bottled wine by 1  April 2021, and the immediate elimination of the tariff on bulk wine), dairy 
                                                
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds537_e.htm  and 
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds580_e.htm . 
17 Australia also has a partial scope bilateral trade agreement with Canada (CANATA ) (1960), which was 
referenced in the WTO Secretariat's TPR Report on Australia (2015) ( WT/TPR/S/312 Rev 1). The agreement's 
provisions have been eroded by subsequent tariff reductions, achieved by negotiation in the WTO, and has now 
been superseded by the CPTPP (with Canada as a party).  
18 The negotiations on the Australia -Hong Kong Free Trade Agreement were signed on 15 November 
2018; the Peru -Australia Free Trade Agreement on10  November 2017; the Indonesia -Australia Comprehensive 
Economic Partnership Agreement on  31 August 2018; and the Pacific Agreement on Closer Economic Rela tions 
Plus on  20 April 2017. DFAT , Australia's free trade agreements (FTAs) . Viewed at: 
https://dfat.gov.au/trade/agreements/Pages/trade -agreements.aspx . 
19 DFAT , FTAs under ne gotiation . Viewed at: 
https://dfat.gov.au/trade/agreements/negotiations/Pages/ftas -under -negotiation.aspx . 
20 DFAT, Trade and the environment . Viewed at: 
https://dfat.gov.au/trade/organisations/wto/negotiations/ega/Pages/trade -and-the-
environment.aspx#environmental -goods . 
21 The 23 TiSA parties , as at May 2019, comprise d Australia ; Canada ; Chile; Chinese Taipei ; Colombia ; 
Costa Rica ; European Union (representing its member States) ; Hong Kong, China; Iceland ; Israel ; Japan ; 
Liechtenstein ; Mauritius ; Mexico ; New Zealand ; Norway ; Pakistan ; Panama ; Peru; Korea , Republic of ; 
Switzerland ; Turkey ; and United States . DFAT, Trade in Services Agreement (TiSA) . Viewed at:  
https://dfat.gov.au/trade/agreements/negotiations/tisa/Pages/trade -in-services -agreement.aspx . 
22 According to the Australian authorities, agricultural enterprises in particular , such as producers of 
shelled almonds,  fresh table grapes , oranges , asparagus, f resh/chilled and frozen beef , and frozen shrimp and 
prawns , have benefited from the substantial tariff cuts secured under the JAEPA . WT/TPR/S/ 396 • Australia  
 
- 29 - 
 
  (duty -free quotas for some Australian cheese, and new opportunities for ice -cream and frozen 
yoghurt), and seafood (tariffs on tuna and Atlantic salmon to be phased out by 1 April 2024).23 
Tariffs on beef and dairy will be reduced but n ot fully eliminated. In the energy and manufacturing 
sectors, the JAEPA included the immediate elimination of tariffs for coke and semi coke of coal, non -
crude petroleum oils, aluminium hydroxide and titanium dioxide; the phased elimination of tariffs 
for unwrought nickel and ferro -manganese; and the immediate elimination of tariffs on paints, key 
plastic products, and pearl jewellery.  The JAEPA also provides Australian services exporters  (e.g. 
law firms, and education, telecommunication, and innovative and  creative industries) with significant 
opportunities in the Japanese market. According to the authorities, for Japanese investments in 
Australia, the Agreement raised the screening threshold for private investment in non -sensitive 
sectors to AUD 1,154 mill ion.24 Australia's tariffs on imports from Japan will be eliminated when the 
Agreement is fully implemented. This includes a 5% tariff on passenger and goods motor vehicles, 
electronics, and white goods made in Japan.25 For some of Australia's sensitive sect ors (auto parts, 
steel, copper, plastics, chemicals, and clothing, textiles, and footwear), the 5% tariff will be phased 
out over eight years.  
2.21.   The China -Australia Free Trade Agreement (ChAFTA) entered into force in  December 2015 . It 
covers  a range of key Australian business interests  in the Chinese market , including  agricultural 
goods (dairy, beef, wine, and wool); natural resources, energy and manufactured products  (iron 
ore, gold, crude petroleum oils and liquefied natural gas, coking coal, thermal coal , refined copper 
and alloys, aluminium oxide, unwrought zinc, unwrought aluminium, unwrought nickel and titanium 
dioxide, pharmaceuticals, car parts and engines, plastic products, and opals and other precious 
stones ); and services (legal, education , telecommunications , financial , tourism , health and aged 
care).26 Almost all Australia n goods will enjoy duty -free entry  in China upon  full implementation of 
the ChAFTA.27 At the time of  entry into force  of the ChAFTA , more than  85% of Australia 's goods 
export s to China (by value) entered China duty free . The percentage is set to increase to 93% by 
2019, and 97.9 % when the Agreement is fully implemented. All Australian import tariffs on Chinese 
goods were eliminated progressively.28 According to the authorities,  regarding the screening of 
Chinese investments by Australia's Foreign Investment Review Board (FIRB), a threshold of AUD 
1,154 million applies to private company investments except in sensitive sectors (i.e. defence, media 
and telecommunications), as well  as for agricultural land (AUD 15 million) and agribusiness 
enterprises (AUD 58 million).29 The FIRB will continue to screen all investment by Chinese state -
owned enterprises, regardless of value. The Agreement provides for the inclusion of an Investor 
State Dispute Settlement mechanism to promote investor confidence.  
2.22.   The CPTPP, signed by 11 countries in March 2018, sets up a free trade area for  goods and 
services .30 It establishes a Commission to oversee its implementation  among the CPTPP parties . The 
CPTPP incorporates, by reference, the provisions of the Trans -Pacific Partnership (TPP) Agreement 
(signed but not yet in force), except for a limited set of suspended provisions. According to the 
authorities, the current 11 parties have a shared vision of the CPTPP as a platform open to others 
to join if they meet its standards. The CPTPP ensures that the substantial market access package 
secured in the original TPP is maintained, as well as its commitments on the regulation of foreign 
investment.  
                                                
23 DFAT , JAEPA outcomes at a glance . Viewed at: https://dfat.gov.au/trade/agreements/in -
force/jaepa/fact -sheets/Pages/jaepa -fact-sheet -outcomes -at-a-glance.aspx . 
24 FIRB. Viewed at: http://firb.gov.au/exemption -thresholds/monetary -thresholds/ . 
25 DFAT, JAEPA outcomes at a glance . Viewed at: https://dfat.gov.au/trade/agreements/in -
force/jaepa/fact -sheets/Pages/jaepa -fact-sheet -outcomes -at-a-glance.aspx . 
26 DFAT , ChAFTA outcomes at a glance . Viewed at: https://dfat.gov.au/trade/agreements/in -
force/chafta/fact -sheets/Pages/chafta -outcomes -at-a-glance.aspx . 
27 DFAT, ChAFTA outcomes at a glance . Viewed at: https://dfat.gov.au/trade/agreements/in -
force/chafta/fact -sheets/Pages/cha fta-outcomes -at-a-glance.aspx . 
28 According to the authorities, from 1 January 2019 onwards, there were no Australian import tariffs on 
Chinese goods. Further information viewed at: https://dfat.gov.au/trade/agreements/in -force/chafta/official -
documents/Documents/chafta -explanatory -schedule -of-chinese -tariff-commitments -non-official.pd f. 
29 FIRB. Viewed at: http://firb.gov.au/exemption -thresholds/monetary -thresholds/ . 
30 As at August 2019, the CPTPP was only in force for 7  of the 11 members . Brunei Da russalam, Ch ile, 
Malaysia  and Peru  have not yet ratified it . WT/TPR/S/ 396 • Australia  
 
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  2.3.2.2   Preferent ial trade agreements  
2.23.   Australia offers non -reciprocal trade preferences under the Australian System of Tariff 
Preferences (ASTP) to developing countries, least developed countries (LDCs) and Forum Island 
economies (the latter  based on the South Pacific Regi onal Trade and Economic Cooperation 
Agreement).31 As a result of the removal of the MFN specific duty on imported used vehicles , through 
the amendment of the Customs Tariff Act , 1995, since 1 January  2018, LDCs and Forum Island 
countries now effectively rec eive the same duty -free and quota -free treatment for all tariff lines . 
2.24.   The ASTP currently comprises five preference categories, i.e. LDCs, Forum Island countries, 
developing countries, developing country status, and developing country category T.32 These 
economies enjoy  preferential access to the Australian market. Australia provides an online version 
of its current tariff classification, containing the lists of preference countries and products, and the 
applicable rates of duty.33 As at 1 July 2019, 56  devel oping countr y members  were entitled to "DC" 
rates of duty on 3,1 71 tariff lines , amounting to  a 5% margin of preference over the MFN rate when 
the MFN rate is 5% or higher. Where the applied MFN rate is less than 5%, the preferential rate is 
0%. Around 110 developing countr y members are entitled to "DCS" rates of duty on 8 30 tariff lines , 
and Category T countries are eligible for preferential tariffs , "DCT" rates,  on 190 tariff lines. The 
developing countr y members  eligible for these different duty rates ar e listed in Schedule 1 of the 
Customs Tariff.34 
2.25.   On average, trade under the ASTP amounted to AUD 2.9 billion annually between 2016 and 
2018. The authorities estimate that  the beneficiaries saved about AUD 105 million in duty in each of 
those years.35 An es timated AUD 445 million  in customs duty was foregone between January 2015 
and January 2019 as a result of Australia's non -reciprocal preference schemes.  
2.3.3   Other agreements and arrangements  
2.26.   Australia continues to pursue regional trade and investment liberalization through the Asia 
Pacific Economic Cooperation Forum (APEC). Under the Bogor Declaration, APEC members made a 
voluntary commitment to achieve free and open trade and investment by 2020 (2010 for developed 
economies), through unilateral, regio nal and multilateral liberalization. Each year, the 21 member 
economies present Individual Action Plans that set out measures, taken or intended, to achieve this 
goal. In November 2018, APEC ministers focused on driving economic prosperity through new 
opportunities , inclusive and beneficial to the region , with emphasis on digitalization.36 
2.4  Investment Regime  
2.27.   Australia continues to perform well in various international rankings relating to the business, 
trade and investment environment. It came in 18th among 1 90 economies  in the World Bank's Doing 
Business Report 2020 (10th out of 189 economies in 2015) , and ranked in the top 10 for starting a 
business  and enforcing contracts .37 In the World Economic Forum's 2018 Global Competitiveness 
Index, Australia scored 14th among 140 economies, up from 22nd among 144 economies in 2015 .38 
                                                
31 The Forum Island economies comprise the Cook Islands, Fiji, Kiribati, the Marshall Islands, the 
Federated States of Micronesia, Nauru, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu , and 
Vanuatu.  
32 Category T countries include: Chinese Taipei; Hong Kong, China; Singapore; and Korea,  Republic of.  
33 Australian Border Force, classes of countries and places in relation to which special rates apply , 
Current Tariff Classification . Viewed a t: https://www.abf.gov.au/importing -exporting -and-manufacturing/tariff -
classification/current -tariff. 
34 Australian Border Force, Current Tarif f Classification. Viewed at: https://www.abf.gov.au/importing -
exporting -and-manufacturing/tariff -classification/current -tariff/sche dule-1. 
35 UNCTAD, Generalized System of Preferences: Handbook on the Scheme of Australia, 2018 . Viewed at: 
https://unctad.org/en/PublicationsLibrary/itcdtsbmisc56rev1_en.pdf . 
36 APEC, 2018 APEC Ministerial Meeting . Viewed at: https://www.apec.org/Meeting -Papers/Annual -
Ministerial -Meetings/2018/2018_amm . 
37 World Bank, Doing Business 20 19. Viewed at: 
http://www.doingbusiness.org/content/dam/doingBusiness/country/a/australia/AUS.pdf . 
38 World Economic Forum, 2018 Global Competitiveness Index . Viewe d at: 
http://reports.weforum.org/global -competitiveness -report -2018/country -economy -profiles/#economy=AUS . WT/TPR/S/ 396 • Australia  
 
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  It shared top spot with 31 other countries for macroeconomic stability , and obtained a near -perfect 
score for health . It also obtained a high score for the breadth and depth of its financia l system.  
2.28.   The Government has continue d its commitment to a deregulation agenda , remov ing barriers 
to competition, innovation and growth, reducing red tape further while also seeking improve d 
regulator y performance .39 Commonwealth government initiatives continue to promote regulatory 
quality through , for example, the Regulatory Impact Analysis (RIA), required for every policy 
proposal designed to introduce or abolish a regulation40; the Commonwealth Regulatory Burden 
Measure, used by policy -makers to measure compliance costs of regulatory proposals on businesses, 
individuals and community organizations; and the Regulator Performance Framework, designed to 
assist Commonwealth regulators in minimizing the impact on those being regulated while stil l 
achieving their set goals.41 The Government reports regularly on  the implementation of regulatory 
reforms and the administration of  the RIA.  
2.29.   Government agencies continue to lower stakeholder costs in complying with Commonwealth 
regulations, with businesse s being the main beneficiaries of these reforms.  Between  September 
2013 and June 2017, the Government implemented more than  1,500 decisions , estimated to yield 
net regulatory cost reductions of some  AUD 5.2 billion.  In particular, d ecisions taken  between 
1 January 2016 and 30 June 2017  reportedly lowered compliance costs for businesses by 
approximately AUD 800 million per year, or around 70 % of the reported net savings .42 
2.30.   The Australian Taxation Office (ATO), which o ffers guidance to assist taxpayers to unde rstand 
their obligation s, rights and entitlements , reviewed its Public Advice and Guidance during the review 
period.43 The review supported simpler and clearer guidance to taxpayers on how to comply with 
taxation ( e.g. G oods and Services Tax, and income tax) .44 In 2017, the ATO updated its public 
rulings, and withdrew rulings that are no longer relevant. It also improved the navigation and 
usability of the ATO website. According to government estimates, these measures are expected to 
yield annual sa vings for around 2 million businesses amounting to AUD 136.6 million.45 
2.31.   Since January 2016, the ATO has also coordinated eight  Small Business Fix -it Squad s. The 
teams bring together small business owners, tax professionals, and federal, state and local 
government agencies and intermediaries to develop solutions to problems faced by small business 
owners . The programme aims to  work with small business es and governments at all levels to reshape 
the service offered . The Squads targeted a range of small business  concerns , including  the start -up 
of small business es by  young adults , the structuring of a business , the taking on of an employee , 
the selling or winding up  of a small business , and making it easier to report and pay business activity 
statements.  Accordin g to the authorities , the Squads have lowered compliance costs by 
AUD 140 million per year.46 
                                                
39 The Government's Deregulation Agenda is now administered by the Department of Jobs and Small 
Business, due to an Administrative Arrangements Order introduced on 20 December 2017. Previously, the 
Agenda (previously known as the Regulatory Reform Agenda) w as administered by the Department of the 
Prime Minister and Cabinet.  
40 The Office of Best Practice Regulation (OBPR) in the Department of the Prime Minister and Cabinet is 
charged with administering the RIA requirements. The OBPR also conducts training and  provides guidance to 
assist agencies in preparing Regulation Impact Statements , and fulfils other regulatory review and reform 
obligations . 
41 Australian Government, Department of Employment, Skills, Small and Family Business, Deregulation 
Agenda . Viewed a t: https://www.jobs.gov.au/deregulation -agenda . 
42 Australian Government, Annual Regulatory Reform Report, 1 January 2016 –30 June 2017 . Viewed at: 
https://docs.jobs.gov.au/system/files/doc/other/annual_regulatory_reform_report_1_january_2016 -
30_june_2017 -final.pdf . 
43 Australian Taxation Office, ATO advice and guidance . Viewed at: https://www.ato.gov.au/general/ato -
advice -and-guidance/ . 
44 Australian Government, Annual Regulatory Reform Report 1 January 2016 –30 June 2017 . Viewed at: 
https://docs.jobs.gov.au/system/files/doc/other/annual_regulatory_reform_report_1_january_2016 -
30_june_2017 -final.pdf . 
45 Australian Governm ent, Annual Regulatory Reform Report 1 January 2016 –30 June 2017 . Viewed at: 
https://docs.jobs.gov.au/system/files/doc/oth er/annual_regulatory_reform_report_1_january_2016 -
30_june_2017 -final.pdf . 
46 Australian Government, Annual Regulatory Reform Report 1 January 2016 –30 June 2017 . Viewed at: 
https://docs.jobs.gov.au/system/files/doc/other/annual_regulatory_reform_report_1_january_2016 -
30_june_2017 -final.pdf . WT/TPR/S/ 396 • Australia  
 
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  2.32.   Launched in 2016, the National Business Simplification Initiative (NBSI) is a Commonwealth 
agreement between the Australian, state and territory governments  to mak e it simpler to do 
business in Australia.47 The purpose of the NBSI is to allow businesses to cut costs and thereby 
enable them to focus on job creation, product development, and new market opportunities.  Through 
this Initiative, the Government seeks to eas e doing business with government, to streamline 
regulations and its services, make it easier to get government contracts and improve procurement 
processes so that businesses of all sizes may compete, and remove barriers to business growth and 
innovation.  The Initiative  launched the Business Registration Service , which made it easier to 
register a business online.48 Online registration has shortened the average time taken to register a 
business from more than one  hour to less than 15 minutes.49 
2.33.   The Government is also supporting growth, higher wages and jobs through the Ten Year 
Enterprise Tax Plan, involving gradual reductions in the corporate tax rate to a more competitive 
level internationally.50 Several components, including a cut in the company tax rate for businesses 
with a turnover less than AUD 50 million (to 25% by 2026 -27), and an increase in the small business 
turnover threshold (from AUD 2 million to AUD 10 million per annum), have now been legislated. In 
addition, the Government extended an instant as set write -off clause (AUD 20,000) for a further 
12 months to 30 June 2018 for businesses with an annual turnover of less than AUD 10 million. 
Further down the line, the Government intends to extend the corporate tax cut to all businesses, 
and it has introd uced legislation to do so.51 
2.34.   According to the authorities, Australia continues to support innovation by investing in 
innovation enablers , such as education, science and research; infrastructure; incentives for business 
investment; and the removal of regulat ory obstacles. Support for innovation included, inter alia , the 
National Innovation and Science Agenda, which was announced in 2015, and delivered AUD 1 billion 
in innovation investment over an initial four -year period. The Agenda seeks to facilitate busin ess 
operations and collaboration between industry, researchers and government; improve access to 
investment and capital; and make it easier for Australian businesses to succeed internationally. The 
Government invested approximately AUD 9.6 billion in scien ce, research and innovation in 2018 /19. 
In 2017 /18, it invested AUD 2.9 billion to support business sector research and development.  
2.35.   The foreign investment framework, and the factors that drive national interest concerns 
evolved over the review period. The  framework is principally based on the Foreign Acquisitions and 
Takeovers Act , 1975, the Foreign Acquisitions and Takeovers Fees Imposition Act , 2015, and the 
Register of Foreign Ownership of Water or Agricultural Land Act , 2015.  Australia encourage s foreign 
investment that is not contrary  to its national interest , and applies a screening process whereby 
foreign investment proposals are evaluated against the national interest criteria on a case ‑by‑case 
basis. According to the authorities, t his flexible approach is preferred to rigid laws that might 
otherwise prohibit valuable investments.52 
2.36.   Changes in the foreign investment regime since 2015  have covered areas such as  residential 
real estate , agricultural land , critical infrastructure , and natio nal security. The Security of Critical 
Infrastructure Act, 2018 entered into force, and a Critical Infrastructure Centre was established to 
facilitate  a coordinated and comprehensive approach to assess and manag e national security risks 
related to critical  infrastructure .53 Other specific changes in the foreign investment framework 
includ e increased scrutiny of agricultural investments and the implement ation of a register for 
foreign ownership of agricultural land , higher screening thresholds for developed c ommercial 
property, and application fees and new penalties for non -compliant investors (all in December 2015). 
                                                
47 Australian Government, Department of Innovation, Industry and Science, Simplifying business . 
Viewed at: https://www.industry.gov.au/strategies -for-the-future/simplifyin g-business . 
48 Australian Government, Business Registration Service. Viewed at: https://register.business.gov.au/ . 
49 Australian Government, Department of Innovation, Industry and Science, Simplifying busines s. 
Viewed at: https://www.industry.gov.au/strategies -for-the-future/simplifying -business . 
50 2017 Growth Strategy - Australia . Viewed at: 
https://www.bundesfinanzministerium.de/Content/DE/Downloads/G20 -
Dokumente/Hamburg_Wachstumsstrategien/AUS -Growth -Strategy.pdf?__blob=publicationFile&v=4 . 
51 2017 Growth Strategy - Australia . Viewed at: 
https://www.bundesfinanzministerium.de/Content/DE/Downloads/G20 -
Dokumente/Hamburg_Wachstumsstrategien/AUS -Growth -Strategy.pdf?__blob=publicationFile&v=4 . 
52 FIRB. Viewed at: https://firb.gov.au/resou rces/policy -documents/ . 
53 The Government recognises eight critical infrastructure sectors , namely  banking and finance , 
Commonwealth government , communications , energy , food and grocery , health , transport , and water.  WT/TPR/S/ 396 • Australia  
 
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  Asset sales by state and territory governments to private investors were brought within the 
screening framework  in March 2016 . A package of amend ments, announced in the 2017/18 Budget, 
led to the introduction of business exemption certificates, stronger rules for foreign investments in 
residential real estate, the establishment of a foreign ownership of water entitlements registe r, the 
requirement for the sale processes involving foreign purchases of agricultural land  to be open and 
transparent54, and an announcement that future sales of electricity transmission and distribution 
assets, a s well as  some generation assets, may incur  ownership restrictions or conditions for foreign 
buyer s. 
2.37.   According to the authorities, these changes were shaped by public and political concerns about 
foreign investment, but also by calls for further clarity and certainty from foreign investors. 
Complia nce efforts were strengthened to meet public expectations and to respon d to intelligence 
and national security needs . This is most pronounced  in residential real estate.  
2.38.   Proposals for foreign investment are sent to the FIRB , which analyses them and makes 
recommendations  to the Treasurer within set time -frames . The Treasurer may  approve  a proposal,  
approve it with conditions , or reject it. The screening process  under the Foreign Acquisitions and 
Takeovers Act , 1975 involves prior government approval before p rivate foreign investors may 
acquire a substantial interest (upwards of 15%) in a corporation, or assume control of an Australian 
business valued above AUD 266 million. Moreover, all foreign government -owned entities must 
obtain approval from the Australia n Government for proposals involving a direct interest in an 
Australian entity or business, and any investment in land.55 However, as a result of RTA/FTA 
commitments, private investors from Canad a, Chile, Chin a, Japan, Mexic o, New Zealand, Singapore, 
the Re public of  Korea , the United States , and any country for which CPTPP-11 subsequently comes 
into force , have a higher threshold  for acquisitions in non -sensitive (AUD 1,154 million ) and sensitive 
(AUD  266 million ) businesses. S ensitive businesses include med ia, telecommunications , transport , 
defence and military related industries and activities , encryption and securities technologies and 
communications systems , the extraction of uranium or plutonium , and the operation of nuclear 
facilities.  
2.39.   Regarding f oreign investment in agricultural land and businesses , the Government assesses 
applications according to the following criteria56: quality and availability of Australia's agricultural 
resources (including water), land access and use, agricultural  production and productivity, Australia's 
capacity to remain a reliable supplier of agricultural produce, biodiversity, and employment and 
prosperity in Australia's local and regional communities. According to the authorities, the screening 
threshold for i nvestments in agribusiness is AUD 1,154 million  for investors from  Chile, New Zealand 
and the United States , and AUD  58 million  for all other investors . The screening threshold for foreign 
purchases of agricultural land was lowered from AUD 252 million to AUD 15 million  in March 2015. 
The third and latest report from the agricultural land register, released in December 2018, indicated 
that foreign investors currently hold 13.4% of Australian agricultural land (by area).57 
2.40.   Foreign persons must seek pre-approv al before acquir ing an interest in residential  land or 
vacant commercial land.  According to the authorities, the aim is to increase Australia 's housing stock 
by channelling foreign investment into new dwellings while limiting foreign investment in establis hed 
dwellings. Non -resident foreign persons are generally prohibited from purchasing established 
dwellings in Australia. However, foreign persons who are temporary residents may apply to purchase 
an established dwelling to use as a residence while liv ing in Australia . New dwellings or vacant 
residential land  purchases have no  pre-set limitations on the number of properties that a foreign 
person may acquire . However, standard conditions typically require construction to be completed 
within four years . Since December 2015, the Treasurer has forced disposals of approximately 70 
properties for non -compliance with the foreign investment residential rules. In the 2017 -18 financial 
                                                
54 Foreign investors may only acquire agricultural land where there has been an open and transparent 
sales process, requiring agricultural land to be offered for sale publicly , and marketed widely.  
55 The m eaning of direct interest is prescribed in Section 16 of the Foreign Acquisitions and Takeovers 
Regulation , 2015. Viewed at : https://www.legislation.gov.au/Details/F2018C00016 . 
56 Parliament of Australia, Australia's foreign investment policy . Viewed at: 
www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook44p/
AustForeignInvest . 
57 FIRB, Register of Foreign Ownership of Agricultural Land  - Report of registrations as at 30 June 2018 . 
Viewed at:  https://firb.gov.au/about -firb/publications/register -foreign -ownership -agricultural -land-report -
registrations -30-june-1. WT/TPR/S/ 396 • Australia  
 
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  year, the ATO issued 429 infringement notices, accompanied by fines totalling almost  
AUD 2.2 million.58 
2.41.   Other requirements and/or limits on foreign investment exist for the banking sector, airports, 
the shipping industry, and telecommunications.59 Foreign ownership in the banking sector must be 
consistent with the Banking Act, 1959, the Financial Sector (Shareholdings) Act, 1998 and the 
national banking policy. The Airports Act, 1996 caps foreign ownership of some airports at 49%. The 
Shipping Regi stration Act, 1981 requires a ship to be majority Australian -owned if it is to be 
registered in Australia, unless it is designated as chartered by an Australian operator. In the 
telecommunications sector, aggregate foreign ownership of Telstra is limited t o 35%, and individual 
foreign investors are only allowed a maximum share of 5%.60 
2.42.   The vast majority of the applications referred to the FIRB were approved in the period under 
review, as only 13 applications were rejected, and 3 were declined (Table 2.1). In  value terms, 
applications worth AUD 968 billion were approved between 2013/14 and 2017/18. T he investor 
States with the largest accumulated  investment proposals were the United States , China , the 
United  Kingdom , Singapore,  and Canada  (Chart 2.1) .61 Excludi ng residential real estate, proposed 
investments are rarely rejected,  according to the authorities. The number of outright rejections are 
few because national interest concerns may be addressed with appropriate mitigation measures in 
sensitive cases.  
Table  2.1 Applications decided, 2013/14 to 2017/18  
Outcome  2013/14  2014/15  2015/16  2016/17  2017/18   
No. AUD 
billion  No. AUD 
billion  No. AUD 
billion  No. AUD 
billion  No. AUD 
billion  
Approved 
unconditionallya 12,307  125.3  21,355  125.7  26,954  97.0 8,607  53.8 6,301  40.1 
Approved with 
conditionsa 11,795  42.1 16,598  66.2 14,491  150.8  5,750  143.9  4,844  123.0  
Total approved  24,102  167.4  37,953  191.9  41,445  247.9  14,357  197.7  11,145  163.1  
Rejected  3 2.2 .. .. 5 0.0 3 20.0 2 0.1 
Declined  .. .. .. .. .. .. .. .. 3 3.0 
Total decided  24,105  169.6  37,953  191.9  41,450  247.9  14,360  217.7  11,150  166.1  
.. Not available.  
a Since  2017/18, residential land approvals have included a condition to register on the Residential Land 
Register. Where this is the only condition of the approval, for reporting purposes, the approval is 
classified as approved without condition.  
Note:  Totals ma y not add due to rounding. '0.0' indicates a figure of less than AUD 50 million.  
 
Source:  FIRB 2019, Annual Reports 2016 -17 and 2017 -18. Viewed at: www.firb.gov.au . 
2.43.   Applications for investment in residential real estate dominate the approval process in sheer 
number in any given year (Table 2.2). However, measured in value of the proposed investments, 
the services sector was the most important destination for foreign i nvestment in Australia in 2017/18 
(AUD 63.2 billion), followed by commercial real estate (AUD 39.5 billion).62 
                                                
58 FIRB, 2017-18 Annual Report . Viewed at:  https://firb.gov.au/about -firb/publications/2017 -18-annual -
report . 
59 Parliament , Australia's foreign investment policy . Viewed at: 
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamen tary_Library/pubs/BriefingB
ook44p/AustForeignInvest . 
60 Telstra is Australia's leading provider of mobile phones, mobile devices, home phones and broadband 
Internet.  
61 FIRB,  Annual Report 2017 -18. Viewed at: https://cdn.tspace.gov.au/uploads/sites/79/2019/02/FIRB -
2017-18-Annual -Report -final.pdf . 
62 According to the authorities, the services sector approvals data is typically affected by large one -off 
transa ctions. In June 2018, the Paris -based commercial real estate company, Unibail -Rodamco, merged with 
the Australian -based shopping centre operator, Westfield Corporation, for a proposed investment value of over 
AUD 28 billion. Further information accessible in the FIRB Annual Report 2017 -18. Viewed at: 
https://firb.gov.au/sites/firb.gov.au/files/2019/02/FIRB -2017-18-Annual -Report -final.pdf . WT/TPR/S/ 396 • Australia  
 
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  Chart 2.1 Approvals by country, 2014/15 to 2017/18  
 
Source:  Treasury, proposed investment approval s, information provided by the authorities.  
Table 2.2 Total investment approvals, by industry sector, 2017/18  
Industry  Proposed investment  
(AUD billion)  Number of approvals  
Agriculture, forestry, and fishing  7.9 201 
Finance and insurance  6.0 37 
Manufacturing, electricity, and gas  16.6 95 
Mineral exploration and development  17.4 115 
Services  63.2 185 
Real estate – commercial  39.5 391 
Real estate – residential  12.5 10,036  
Total  163.1  11,060  
Source:  Foreign Investment Review Board (2019), Annual Report 2017 -18. Viewed at: 
https://firb.gov.au/sites/firb.gov.au/files/2019/02/FIRB -2017-18-Annual-Report -final.pdf ? 
2.44.   According to the authorities , a number of changes to land tax rates and thresholds were made 
during the review period. Foreign investors who want to buy or invest in residential property in 
Victoria (VIC), New South Wales (NSW), Queens land (QLD), South Australia (SA) , Western Australia 
(WA) and Tasmania (TAS) are required to pay a stamp duty surcharge.  The surcharge only applies 
to acquisitions of residential land that are liable to a stamp duty (Table 2.3). 
2.45.   Australia has bilateral inve stment promotion and protection agreements (IPPAs) or bilateral 
investment treaties (BITs) with 19 economies (Table 2. 4). No n ew agreements have come  into force  
since the last Review. Three BITs were terminated (India, 2017; Mexico 2018; and Vietnam, 2019) .63 
Australia's BIT with India was unilaterally terminated by India on 23 March 2017.64 Australia and 
Mexico agreed to terminate the Australia -Mexico BIT, and Aus tralia and Vietnam agreed to terminate 
the Australia -Vietnam BIT, subject to transitional arrangements upon entry into force of the CPTPP. 
                                                
63 DFAT, Australia's bilateral investment treaties . Viewed at: 
https://dfat.gov.au/trade/investment/Pages/australias -bilateral -investment -treaties.aspx . 
64 Accor ding to the authorities, the provisions of the Australia -India BIT will continue to apply to 
investments made on or before 22 March 2017 for a period of 15 years from the date of termination of the BIT. 
Investments made on or after 23 March 2017 will not b e covered by the BIT.  
01020304050
2014/15 2015/16 2016/17 2017/18
United States China United Kingdom Canada SingaporeChart 2.1  Approvals by country, 2014/15 to 2017/18
USD billion
Source:  Treasury, Proposed investment approvals.WT/TPR/S/ 396 • Australia  
 
- 36 - 
 
  The IPPAs/BITs grant MFN treatment for foreign investment, provide nationalization/expropriation 
guarantees, and esta blish dispute settlement mechanisms . 
2.46.   Double taxation avoidance (DTA) treaties, based on the OECD Model Tax Convention on 
Income and Capital, are in force with several countries (Table 2. 4). One new DT A (with Germany)  
entered into force during  the review pe riod.65 Australia also signed several tax information exchange 
agreements (TIEAs ) (Table 2. 4). The most recent were signed in 2013 with  Brunei (entered into 
force in 2016) and Guatemala (in force since 2018).66 
Table 2.3 Surcharges for foreign investors 2016/17  
State  Tax Surcharge  From  Comments  
NSW Transfer 
(stamp) duty  4% 21/6/16 -20/6/17  Investors (including foreign persons) were 
not eligible for 12 month s' deferral of 
transfer (stamp) duty for off -the-plan 
purchases . 
 Land tax  8% 1/7/17  Based on a purchase price of AUD 800,000, 
extra charges in the first year of around 
AUD 80,000 from 1  January 2018, 
compared with around AUD 42,000 before 
1 July 2017 . 
VIC  Land transfer 
(stamp) duty  3% 
 
7%  1/7/15 -30/6/2015  
 
1/7/2016  Land tax is known as the absentee owner 
surcharge.  Based on a purchase price of 
AUD 800,000, extra charges in the first 
year of AUD 57,000 from 1  January 2017 . 
 Land tax  1.5%  1/1/17   
QLD Stamp duty  3%  1/10/16 -30/6/18  Known as the additional foreign acquirer 
duty. Based on a purchase price of AUD 
800,000, extra charges in the first year of 
AUD 24,000. An absentee surcharge of 
1.5% is also applicable since 1 July 2017, 
but also applies to persons not defined as 
foreign.  
  7% 1/7/18  Surcharge was increased to 7%  
SA Stamp duty  7% 1/1/18  Known as the additional foreign acquirer 
duty. Based on a purchase price of 
AUD 800,000, extra charges in the first 
year of AUD 56,000.  
ACT Land tax  0.75%  1/7/18  Announced in February 2018. A n additional 
charge applies to the unimproved value of 
residential property.  
TAS Stamp duty  3% 1/7/18  Foreign Investor Duty Surcharge is an 
additional amount of duty charged to 
foreign persons acquiring residential 
property. A n additional 0.5% charge is 
applicable to agricultural land.  
Source:  Information provided by the authorities.  
2.47.   Australia observes the notification and transparency provisions of the OECD Code on 
Liberalization of Capital Movements , and subscribes to the OECD Declaration on International 
Investment and Multinational Enterprises , and  the OECD Guidelines for Multinational Enterprises. 
Australia  is a signatory to the United Nations Convention on the Recognition and Enforcement of 
Foreign Arbitral Awards (New York Convention) , and a member  of the International Centre for the 
Settlement of Investment Disputes.  
                                                
65 The Treasury , Income Tax Treaties . Viewed at: https://treasury.gov.au/tax -treaties/income -tax-
treaties . 
66 The Treasury , Tax Information Exchange Agreements . Viewed at: https://treasury.gov.au/tax -
treaties/tax -information -exchange -agreements . WT/TPR/S/ 396 • Australia  
 
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  Table 2.4 Foreign investment -related treaties and agreements in force  
(Year of entry into force)  IPPAs
/BITS  Argentina (1997); C hile (1999); China (1988) Czech  Republic  (1994); Egypt  (2002); Hong  Kong, 
China (1993); Hungary (1992); Indonesia (1993); Lao,  PDR (1995); Lithuania  (2002); 
Pakistan  (1998); Papua  New Guinea  (1991); Peru (1997); Philippines (1995); Poland  (1992); 
Romania  (1994); Sri Lanka  (2007); Turkey (2010); and Uruguay (2003) . DTAs  Argentina (1999); Austria (1988); Belgium (1979a); Canada  (1981a); Chile (2013); China  (1990); 
Czech Republic (1995); Denmark (1981); Fiji  (1990); Finland (2007); France  (2009); Germany 
(2015); Hungary (1992); India  (1991a); Indonesia (1992); Ireland  (1983); Italy (1985); Japan 
(2008); Kiribati  (1991); Korea,  Republic of  (1984); Malaysia (1981a); Malta (1985); Mexico  (2003); 
Netherlands  (1976a); New  Zealand (2010); Norway  (2007); Papua  New Guinea (1989); Philippines 
(1980); Poland (1992); Romania  (2001); Russian Federation (2003); Singapore  (1969a); Slovak  
Republic  (1999); South  Africa  (1999a); Spain  (1992); Sri Lanka (1991); Sweden  (1981); 
Switzerland (2014); Chines e Taipei  (1996); Thailand (1989); Turkey  (2013); United Kingdom 
(2003); United  States  (2003); and Viet  Nam (1992a). TIEAs  Andorra (2012); Anguilla (2011); Antigua and Barbuda  (2009); Aruba (2011); Bahamas  (2011); 
Bahrain, Kingdom of (2012); Belize  (2011); Bermuda (2007); British  Virgin Islands (2009/2010); 
Brunei Darussalam (2013); Cayman Islands  (2011); Cook  Islands  (2011); Costa  Rica (2013); 
Dominica  (2011); Gibraltar (2010); Grenada (2012); Guatemala (2013); Guernsey  (2010/2011); 
Isle of Man (2009/2010); Jersey (2010); Liberia  (2012); Lichtenstein  (2012); Macao, China (2011); 
Marshall Islands (2011); Mauritius  (2011/2013); Monaco  (2011); Montserrat (2011); 
Netherlands  Antilles  (2008); Samoa (2011/2012); San  Marino (2011); St.  Kitts and Nevis  (2011); 
St. Lucia (2011); St.  Vincent and the  Grenadines (2011); Turks  and Caicos Islands (2011); and 
Vanuatu  (2011).  
a These DTAs were subsequently amended.  
Source:  DFAT , Australian Treaties Database . Viewed at: www.dfat.gov.au/treaties/ .WT/TPR/S/ 396 • Australia  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting I mports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.1.1   Documentation requirements and trade facilitation measures  
3.1.  Goods arriving in Australia from overseas must be cleared by the Australian Border Force (ABF) 
and the Department of Agriculture before they c an enter the Australian market. Commercial entities 
importing goods into Australia provide their 11 -digit Australian business number (ABN) upon formal 
entry of the merchandise. The ABN is issued by the Australian Business Register, and is used to 
facilitat e interaction with government and community institutions, including further registration for 
tax purposes, etc. ABNs may also be issued to non -resident entities carrying out business in Australia 
or who, in the conduct of their enterprise, make sales conne cted with Australia.1 
3.2.  A Full Import Declaration (FID) must be presented for imports valued at more than AUD  1,000.2 
The FID requires essential information about the cargo and its owner, supplier, value, transportation 
details, and community protection info rmation (as necessary).3 Import permits, if needed from a 
permit issuing agency, must be quoted on the declaration.4 Nearly all  import transactions (excluding 
the majority of international mail items) are processed electronically through the Integrated Cargo 
System (ICS), a single window application for coordinated customs and quarantine clearance. 
Information may be keyed in by t he importers themselves, a licensed customs broker acting on their 
behalf, or, in limited circumstances, provided manually at an ABF counter. The ICS is based on active 
industry compliance to ensure accurate risk assessment and swift movement of low -risk g oods, while 
sophisticated risk management technology was incorporated to allow officers of the ABF to target 
high-risk cargo and prohibited items. Industry users communicate with the ICS via one of two online 
platforms; Cargo Interactive or the Electronic Data Interchange.5 The ICS allows registered industry 
users to track the movement of their goods (for legitimate purposes). The ABF developed various 
manuals and guides to allow industry users to access the ICS as efficiently as possible. The 
compliance area of the ABF performs regular audit checks to ensure that the information provided 
in the import declaration matches the accompanying documentation and the characteristics of the 
physical cargo . Commercial documents related to declared cargo must be retai ned for a minimum 
of five years.  
3.3.  In 2015, Parliament amended the Customs Act, 1901 through the Customs Amendment 
(Australian Trusted Trader Programme) Act, 2015. The latter was supplemented by the Customs 
(Australian Trusted Trader Programme) Rule, 2015.6 Implementation of the Australian Trusted 
Trader (ATT) programme began as a 12 -month pilot scheme in July 2015. The programme moved 
to full implementation from July 2016 onwards, and has almost 500  accredited members at present. 
The ATT programme operates i n line with the World Customs Organization SAFE Framework of 
Standards for Authorized Economic Operator (AEO) programmes, and the specifics were designed 
with the participation of industry.  
                                                
1 Non-residents must submit either their Australian tax file number or their identit y documents, together 
with a statement of their activ ities in Australia , when applying for an ABN.  
2 Self Assessed Clearance (SAC) Declarations are used for low -value consignments that do not contain 
tobacco, alcohol, or prohibited or restricted items. A s hort-form SAC declaration, which must be lodged 
electronically, is used for low -value consignments of tobacco, alcohol and goods that are subject to quarantine 
conditions.  
3 Supporting  documentation , such as invoice s, bills of lading and other papers , need only be presented if 
specifically requested by the ABF . 
4 Hard copy (original) permits must be provided to ABF at the time of import for some goods, e.g. tablet 
presses, polychlorinated biphenyls/terphenyls, and plastic explosives.  
5 The C argo Interac tive facility has no bulk lodgement functionality, and works best for low -volume 
reporters. The Electronic Data Interchange allows electronic messaging from reporters using their own 
software.  
6 Customs Amendment (Australian Trusted Trader Programme) Act, 2015. Viewed at: 
https://www.legislation.gov.au/Details/C2015A00073 ; and Customs (Australian Trusted Trader Programme) 
Rule, 2015. Viewed at: https://www.legislation.gov.au/Details/F2017C00608 . WT/TPR/S/ 396 • Australia  
 
- 39 - 
 
  3.4.  The ATT programme is administered by the Department for Home Affai rs in conjunction with 
the ABF. An industry advisory group, comprising Trusted Traders and government officials, meets 
three times per year to assess the functioning of the programme and how to enhance it.  
3.5.  Businesses eligible to be an ATT begin their appli cation process by creating an ImmiAccount, 
available from the ATT webpage.7 Once they have this, they complete and submit the online ATT 
application form, which is assessed by an ABF officer in the ATT team. If the business meets the 
initial requirements, a site validation is conducted to verify the statements made in the written 
application, confirm processes and assess the entity against the Rule and the SAFE Framework. If 
the assessing ABF officer considers the business meets the criteria in the Rule and  the SAFE 
Framework, a delegate of the Comptroller -General of Customs will offer it a legal agreement in 
recognition of its supply chain security and trade compliance. The application, and participation in 
the programme, are free of charge.  
3.6.  An ATT is consi dered a low -risk business, and is given priority treatment at the border, i.e. 
faster processing and fewer interventions. Priority treatment is also provided for issues such as 
advance rulings (customs classification, valuation, rules of origin, etc.), rev iews, refunds and duty 
drawback. The ABF appoints one of its officers as an account manager for the ATT, acting as a single 
point of contact for any matter that may arise. Other benefits include reduced processing charges, 
as a single import declaration ma y be lodged for multiple cargo reports, and the consolidation of 
customs duty payments into a single monthly settlement for ATTs that have a similar arrangement 
with the Australian Tax Office for the payment of Goods and Services Tax. ATTs also have access  to 
streamlined origin documentation requirements for imports from China; Chile; Japan; Korea, 
Republic of; Malaysia; Singapore; and Thailand.  
3.7.  As at 2 August 2019, 495 ATTs had been accredited, and a further 195  applications were in 
various stages of proce ssing. A target was set to achieve 1,000  ATTs by 2020, thereby covering 
30% of Australia's trade by volume (and 50% by value).8 The Government concluded Mutual 
Recognition Arrangements (MRAs) that allow ATT businesses access to trade facilitation benefits 
(such as priority processing) in eight trading partners.9 The Government is pursuing the conclusion 
of further MRAs . The authorities estimate the ATT programme to generate benefits totalling 
AUD 3.5 billion in nominal terms over the period 2015 -25, of whic h AUD 2.8 billion is expected to 
be derived from streamlined and expedited treatment in MRA partners.  
3.8.  Australia ratified the WTO Trade Facilitation Agreement (TFA) on 9 June 2015. As a developed 
WTO Member, it has been bound by all commitments in the Agreement since its entry into force on 
22 February 2017. Australia notified its TFA enquiry points, its contact point for the exchange of 
information, measures on the use of customs brokers, links to relevant legislation and procedures, 
and a link to a de scription of its single window in early 2018, and a revised notification in May 2019.10 
Australia sponsors a number of trade facilitation projects administered by multilateral, regional and 
various other partners, disbursing a total of AUD 189 million in 20 16/17 and nearly AUD 160 million 
in 2017/18.11 
3.9.  Australia has been conducting an annual Time Release Study (TRS) for imported cargo  since 
2010. The reports analyse data on border clearance times for a sample period, to determine average 
clearance times for d ifferent types of cargo arriving in Australia. The TRS has consistently shown 
that customs procedures are not an impediment to cargo release times. The TRS2016, covering both 
2015 and 2016, was published on 1 April 2019.12 
3.1.1.2   Customs valuation  
3.10.   Sections 154 to 161L (Division 2 of Part VIII) of the Customs Act, 1901 lay down the basic 
provisions for the valuation of imported goods for customs purposes. Australia's legislation 
                                                
7 The ImmiAccount provides a single -entry point into the Department of Home Affairs' online services.  
8 WTO document G/TFA/W/9, 27 September 2018.  
9 The partners with whom MRAs have be en concluded so far are Canada; China; Hong Kong, China; 
Japan; Korea, Republic of; New Zealand; Singapore; and Chinese Taipei.  
10 WTO documents G/TFA/N/AUS/1, 8 January  2018; and G/TFA/N/AUS/1/Rev.1, 20 May 2019.  
11 WTO documents G/TFA/N/AUS/2, 19 April 201 8; and G/TFA/N/AUS/3, 14 June 2019.  
12 Department of Home Affairs, Time Release Study, 2016 . Viewed at: 
www.homeaffairs.gov.au/research -and-stats/files/time -release -study -2016.pdf . WT/TPR/S/ 396 • Australia  
 
- 40 - 
 
  establishes the hierarchy of valuation methods, consistent with the Agreement on Impleme ntation 
of Article VII of the GATT 1994 (the WTO Customs Valuation Agreement). In 1995, Australia notified 
the WTO that its customs valuation legislation, notified in the context of the Tokyo Round, remained 
valid under the WTO Customs Valuation Agreement.13 It subsequently notified minor amendments 
to its customs valuation legislation in 2002.14 No notifications have been submitted since then. There 
were no changes to Australia's customs valuation legislation in the period under review.  
3.11.   The transaction value  method is used in nearly all cases. Instances where other methods are 
used typically involve situations where no previous sale occurred or the good is of a unique nature 
(e.g. endangered species or rare antique car). Overseas freight and insurance charges  and post-
importation expenses are not included in the valuation base.  Commissions, royalties and licensing 
fees, packing costs , and "production assist costs", i.e. any goods, materials and certain services 
provided by the importer for use in the productio n of the imported goods, are added to the valuation 
base. The import value in Australian dollars is calculated by using the official exchange rate 
determined by the Reserve Bank of Australia  on the day of exportation. Australia does not resort to 
mandatory  preshipment inspection to determine value.  
3.1.2   Rules of origin  
3.12.   Australia's non -preferential rules of origin remain unaltered since the previous Review. 
Australia provided a notification of its preferential rules of origin for LDCs in 2017, in fulfilment of 
the obligations laid down in Paragraph 4.3 of the Nairobi Ministerial Decision adopted in 2015.15 The 
notification was updated in 2019.16 However, as far as Australia is concerned, these unilateral 
preferential rules of origin were last amended in 2003.  
3.13.   The RT As/FTAs to which Australia is a party establish rules of origin that are based on wholly 
obtained or entirely produced criteria or, for goods that contain inputs of third -party origin, 
product -specific rules that generally require a change in tariff headin g, alternate rules including 
qualifying value content, production process rules (e.g. for chemicals, plastics, or textiles), or 
de minimis  rules. The two bilateral FTAs (with Japan and China) that entered into force during the 
period under review and the C PTPP contain detailed rules of origin provisions.17 
3.14.   In the CPTPP, the rules of origin are set out in Chapter 3, and detailed product -specific rules 
of origin are laid down in Annex 3 -D. Additional detailed rules apply to textiles and apparel products. 
The C PTPP, like Australia's FTAs with Japan; Korea, Republic of; and Singapore (the latter since it 
was updated in 2017), has no prescribed format for certification of origin. A certificate of origin may 
be provided by the importer, exporter, producer, or any o ther party in the supply chain as long as 
it is in writing (including in electronic form) and conforms with a set of minimum data requirements.  
3.15.   Upon request from importers, the ABF may provide formal rulings on origin matters (Origin 
Advance Rulings). The rulings determine the eligibility of goods to claim preferential treatment under 
a unilateral preference scheme or a regional or bilateral preferential agreement.  
3.1.3   Tariffs  
3.1.3.1   Bound tariff  
3.16.   The most recent update of Australia's schedule of concessi ons and commitments on goods 
(Schedule I) took effect on 12 August 2015, following the approval of HS2007 nomenclature 
                                                
13 WTO document G/VAL/N/1/AUS/1, 28 August 1995. Details of the national legislatio n were provided 
in document G/VAL/1/Add.14, and its supplements 1 to 4, and replies to the checklist of issues were circulated 
in document G/VAL/2/Rev.1/Add.12 and its supplement 1.  
14 WTO document G/VAL/N/1/AUS/2, 19 December 2002.  
15 WTO document G/RO/LDC/ N/AUS/1, 12 September 2017.  
16 WTO document G/RO/LDC/N/AUS/1/ Rev.1, 13 S eptember 2019.  
17 The factual presentations of the bilateral agreements prepared by the WTO Secretariat were 
circulated in documents WT/REG361/1/Rev.1, 28 April 2016 (JAEPA), and WT/REG369/1/Rev.1, 
14 November  2016 (ChAFTA).  WT/TPR/S/ 396 • Australia  
 
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  changes.18 Like many other WTO Members, Australia remains under waiver to implement changes 
stemming from HS2012.  
3.17.   In its present version, Schedule I contains 5,050 tariff lines at the six -digit level. The simple 
average bound tariff is 9.8% (Table 3.1). The average bound rate is currently slightly lower than in 
2014, as a result of Australia's participation in the expansion of the WTO Inform ation Technology 
Agreement (ITA), where the bound rate is to be reduced to zero on an additional 182 tariff  lines.19 
For agricultural products, where all tariff lines are bound, the bound rates average 3.4%, with a 
maximum bound rate of 29% (for potatoes). For industrial products, the bound rates range from 
zero to 55%. The highest bound rates predominantly concern textiles and clothing articles, resulting 
in average bound rates of 18.2% for textiles and 41.4% for clothing. Australia also has a significant 
number of non -agricultural products on which the tariff is unbound. At the six -digit level, 145 tariff 
lines are wholly unbound, while an additional 71 tariff lines are partially unbound, i.e. the six -digit 
product categories include both bound and unbound items.20 
Table 3.1 Structure of the consolidated tariff schedule, in the HS07 nomenclature at the 
six-digit level  
 
Bound tariff HS07  
Total number of tariff lines  5,050  
Non-ad valorem  tariffs (% of all tariff lines)  3.4 
Non-ad valorem  with no ad valorem  equivalents ( AVEs) (% of all tariff 
lines)  3.4 
Lines subject to tariff quotas (% of all tariff lines)  0.1 
Duty-free tariff lines (% of all tariff lines)  20.4 
Dutiable lines tariff average rate (%)  12.4 
Simple average tariff (%)  9.8 
WTO agriculture  3.4 
WTO non -agriculture (incl. petroleum)  10.7 
Overall standard deviation  10.9 
Bound tariff lines (% of all tariff lines)  95.7 
Source:  WTO Secretariat calculations, based on the WTO's consolidated tariff schedules ( CTS) database . 
3.18.   On all tariff lines where Australia has bound its import tariff, it has also bound at zero its other 
duties and charges (ODCs) within the meaning of Article II.1 (b) of the GATT. Thus, including ex -
items, for nearly 5% of the tariff lines representing non -agricultural goods (WTO definition), 
Australia's tariffs and ODCs are both unbound.  
3.1.3.2   Applied MFN tariff  
3.19.   The Combined Australian Customs Tariff Nomenclature and Sta tistical Classification  currently 
in force, commonly known as the "Working Tariff", follows the HS2017 nomenclature. It contains 
6,474 tariff lines at the eight -digit level. The tariff structure is very simple. Nearly 50% of the tariff 
lines are duty free on an MFN basis, while slightly more than half carry an MFN rate of 5% ad valorem  
(Chart 3.1). A very limited number of items, 20 tariff lines in total, are either subject to an MFN rate 
of duty of 4% ad valorem  (11 lines), specific duty (cheese and curd),  or alternate rates of duty (fruit 
juices).  
3.20.   The very simple tariff structure with low rates of duty leads to a simple average tariff rate of 
2.5% since 1 July 2019, with a somewhat lower average for agricultural products (1.4%) than the 
2.7% simple average  rate for non -agricultural goods (Table 3.2). The applied average tariff declined 
by 0.5 percentage points from 2014 to 2019, reflecting Australia's implementation of new zero -duty 
commitments under the ITA expansion on approximately 100 tariff lines, and unilateral reductions 
                                                
18 WT/LET/1071, 9 September 2015.  
19 Participants to the ITA Expansion approved Australia's new schedule on 9 December 2015. The 
reductions in the bound rates are taking place between 1 January 2017 and 1 July 2021, as detailed in WTO 
document G/MA/W/117/Add.2, 28 January 2016 and the staging matrix (G/MA /TAR/RS/455, 
22 February  2017).  
20 In terms of number of unbound tariff lines, the most prominent item is cotton yarn. Furthermore, the 
unbound lines cover certain plastics, appliances, machinery and parts, and some textile and apparel items, etc.  WT/TPR/S/ 396 • Australia  
 
- 42 - 
 
  (from 10% to 5%) in the tariff on textile, clothing and footwear items on 1  January  2015.21 As noted 
above, Australia's maximum applied tariff is 5% ad valorem , although the AUD 1,220/tonne duty on 
out-of-quota imports of cheese and cu rd leads to an estimated AVE duty of around 20% for all except 
one of the tariff lines in question (Table 3.3). Overall, it may be noted that, while Australia's present 
tariffs are zero or very low, the comparatively high bound rates leave considerable sco pe for Australia 
to raise its import duties, should it ever wish to do so in the future.  
Chart 3.1 Frequency distribution of MFN tariff rates, 2019  
 
a The number of ad valorem  lines is 6,465 , out of  a total number of 6,474 lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.2 Structure of the tariff schedule, 2014 and 2019  
 2014  2019  
Total number of tariff lin es 6,185  6,474  
Non-ad valorem  tariffs (% of all tariff lines)  0.3 0.1 
Non-ad valorem  with no AVEs (% of all tariff  lines)  0.0 0.0 
Lines subject to tariff quotas (% of all tariff  lines)  0.0 0.1 
Duty-free tariff lines (% of all tariff lines)  47.6 49.4 
Dutiable lines tariff average rate (%)  5.7 5.0 
Simple average tariff (%)  3.0 2.5 
WTO agriculture  1.4 1.4 
WTO non -agriculture (incl. petroleum)  3.3 2.7 
Domestic tariff "peaks" (% of all tariff lines)a 3.9 0.1 
International tariff "peaks" (% of all tariff  lines)b 0.2 0.1 
Overall standard deviation  6.4 2.5 
Nuisance applied rates (% of tariff lines)c 0.0 0.0 
Bound tariff lines (% of all tariff lines)  96.6 96.9 
a Domestic tariff peaks are defined as whose exceeding three times the overall average applied rate.  
b International tariff peaks are defined as those exceeding 15%.  
c Nuisance rates are greater than 0% but inferior or equal to 2%.  
Note:  Estimated AVEs for nine tariff lines are included in the tariff averages.  
Source:  WTO Secretariat  calculations, based on data provided by the authorities.  
                                                
21 In addi tion, Australia unilaterally eliminated the specific duty (AUD 12,000) on used passenger motor 
vehicles on 1 January 2018.  
(49.4%)
(0.2%)(50.3%)
(0.1%) (0.1%)
0102030405060708090100
05001,0001,5002,0002,5003,0003,500
Duty free 4.0 5.0 Specific duty Alternate dutyChart 3.1
Frequency distribution of MFN tariff rates, 2019
Number of tariff linesa%
Cumulative per cent
Number of lines (% of total)
a             The number of ad valorem lines is 6,465 on a total number of 6,474 lines.
Source:    WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/ 396 • Australia  
 
- 43 - 
 
  Table 3.3 Summary analysis of MFN tariff, 2019  
Description  MFN 
Final bound 
rangea (%) No. of 
lines  Average 
(%) Range (%)  Coefficient 
of variation  
Total  6,474  2.5 0 - 21.9 1.0 0 - 55 
HS 01 -24 1,037  1.1 0 - 21.9 2.1 0 - 29 
HS 25 -97 5,437  2.8 0 - 5 0.9 0 - 55 
By WTO category       
WTO agriculture  850 1.4 0 - 21.9 1.8 0 - 29 
 - Animals and products thereof  111 0.4 0 - 5 3.6 0 - 16 
 - Dairy products  23 4.1 0 - 21.9 1.9 0 - 21.9 
 - Fruit, vegetables and plants  227 1.5 0 - 5 1.5 0 - 29 
 - Coffee and tea  24 1.0 0 - 5 1.9 0 - 17 
 - Cereals and preparations  95 1.2 0 - 5 1.7 0 - 13.5 
 - Oil seeds, fats and oils and 
their products  84 1.5 0 - 5 1.5 0 - 14 
 - Sugars and confectionary  18 1.8 0 - 5 1.3 1 - 15 
 - Beverages, spirits and tobacco  118 3.3 0 - 5 0.7 0 - 25 
 - Cotton  5 0.0 0 - 0 .. 0 - 2 
 - Other agricultural products 
n.e.s.  145 0.4 0 - 5 3.5 0 - 17 
WTO non-agriculture (incl. 
petroleum)  5,624  2.7 0 - 5 0.9 0 - 55 
 - WTO non-agriculture 
(excl.  petroleum)  5,572  2.7 0 - 5 0.9 0 - 55 
 - - Fish and fishery products  260 0.0 0 - 5 16.1 0 - 10 
 - - Minerals and metals  959 2.8 0 - 5 0.9 0 - 45 
 - - Chemicals and photographic 
supplies  1,038  1.8 0 - 5 1.3 0 - 25 
 - - Wood, pulp, paper and 
furniture  494 3.6 0 - 5 0.6 0 - 25 
 - - Textiles  676 4.1 0 - 5 0.5 0 - 55 
 - - Clothing  258 4.5 0 - 5 0.3 0 - 55 
 - - Leather, rubber, footwear 
and travel goods  191 4.1 0 - 5 0.5 0 - 45 
 - - Non-electric machinery  667 2.7 0 - 5 0.9 0 - 47.5 
 - - Electric machinery  322 2.4 0 - 5 1.0 0 - 45 
 - - Transport equipment  260 3.7 0 - 5 0.6 0 - 40 
 - - Non-agriculture articles 
n.e.s.  447 1.4 0 - 5 1.6 0 - 40 
 - Petroleum  52 0.0 0 - 0 .. 0 - 0 
By ISIC sectorb      
Agriculture and fisheries  405 0.3 0 - 5 4.2 0 - 25 
Mining  100 0.5 0 - 5 3.2 0 - 27.5 
Manufacturing  5,969  2.7 0 - 21.9 0.9 0 - 55 
By HS section       
01 Live animals and prod. 374 0.3 0 - 21.9 8.2 0 - 21.9 
02 Vegetable products  321 0.7 0 - 5 2.4 0 - 29 
03 Fats and oils 49 1.8 0 - 5 1.3 0 - 9.5 
04 Prepared food , etc. 293 2.6 0 - 5 1.0 0 - 25 
05 Minerals  198 0.4 0 - 5 3.6 0 - 27.5 
06 Chemical and prod. 964 1.3 0 - 5 1.7 0 - 17 
07 Plastics and rubber  239 4.4 0 - 5 0.4 0 - 27.5 
08 Hides and skins 92 3.4 0 - 5 0.7 0 - 37 
09 Wood and articles  179 3.2 0 - 5 0.8 0 - 15 
10 Pulp, paper , etc. 285 3.7 0 - 5 0.6 0 - 12 
11 Textile and articles  920 4.1 0 - 5 0.5 0 - 55 
12 Footwear, headgear  60 2.5 0 - 5 1.0 0 - 45 
13 Articles of stone  167 3.4 0 - 5 0.7 0 - 42.5 
14 Precious stones, etc.  53 1.0 0 - 5 2.0 0 - 45 WT/TPR/S/ 396 • Australia  
 
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  Description  MFN 
Final bound 
rangea (%) No. of 
lines  Average 
(%) Range (%)  Coefficient 
of variation  
15 Base metals and prod. 583 3.5 0 - 5 0.6 0 - 42.5 
16 Machinery  1,000  2.5 0 - 5 1.0 0 - 47.5 
17 Transport equipment  272 3.6 0 - 5 0.6 0 - 40 
18 Precision equipment  240 0.8 0 - 5 2.3 0 - 21 
19 Arms and ammunition  19 1.6 0 - 5 1.5 0 - 15 
20 Miscellaneous manufacture  159 3.5 0 - 5 0.7 0 - 35 
21 Works of art, etc.  7 0.0 0 - 0 .. 0 - 3 
By stage of processing       
First stage of processing  794 0.4 0 - 5 3.4 0 - 27.5 
Semi-processed products  2,076  2.8 0 - 5 0.9 0 - 45 
Fully processed products  3,604  2.9 0 - 21.9 0.9 0 - 55 
a Bound rates are provided in HS07 classification at the 6 -digit level, and applied rates in HS17; 
therefore , there is a difference between the number of lines included in the calculation.  
b ISIC (Rev.2) classificati on, excluding electricity (1 line).  
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
3.21.   Customs duties accounted for 3.74% of the Commonwealth Government's total tax receipts 
(cash) in 2017/18.  
3.1.3.3   Tariff rate quotas (TRQs)  
3.22.   Australia has a WTO TRQ on cheese and curd, amounting to 11,500 tonnes per year. In -quota 
imports are subject to an import duty of AUD 96 per tonne; the MFN rate on out -of-quota imports 
is AUD 1,220 per tonne. Importers obtain their quotas upon application  to Customs. The allocation 
is based on historic performance over the previous 23 months. New importers may only obtain a 
quota by transfer from an existing holder. Quota fill rates have been at, or very close to, 100% in 
recent years.22 
3.23.   The South Pacific F orum island countries, LDCs, and preferential partners covered by 
Australia's RTAs/FTAs are exempted from the TRQ on cheese and curd. Imports from developing 
countries of cheeses covered by the TRQ may be accorded a 5% rebate on the MFN tariff rate of 
AUD 1,220/tonne.  
3.24.   A WTO TRQ on unmanufactured tobacco of 11,844 tonnes per year has never been 
implemented. The ABF collects excise equivalent customs duty on imported tobacco and tobacco 
products (Section 3.1.5.5).  
3.1.4   Tariff preferences  
3.25.   Australia's unilateral pre ference schemes for LDCs and the South Pacific Forum island 
countries, together with the extensive zero -duty regime applied on an MFN basis, imply that these 
trading partners enjoy duty -free and quota -free access to the Australian market for all their expo rts. 
The bilateral FTAs that Australia concluded with Chile (ACIFTA), China (ChAFTA), Malaysia (MAFTA), 
New Zealand (ANZCERTA), Singapore (SAFTA), Thailand (TAFTA), and the United States (AUSFTA) 
also provide the same level of duty -free quota -free access f or all goods into Australia. Although the 
tariff preferences accorded to other members of the Association of Southeast Asian Nations (ASEAN) 
or within the CPTPP do not extend the same duty -free treatment across the board for all products, 
the number of ite ms on which tariffs remain for these countries are very limited, and the average 
tariffs are negligible (Table  3.4). 
                                                
22 WTO documents G/AG/N/AUS/107, 3 March  2017 (covering the financial year 2015/16); 
G/AG/N/AUS/114, 30 May 2018 (FY 2016/17); and G/A G/N/AUS/122, 28 January 2019 (FY 2017/18).  WT/TPR/S/ 396 • Australia  
 
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  Table 3.4 Analysis of preferential tariffs (with countries that have negotiated trade 
agreements), 2019  
 
Number of 
preferential 
linesa  WTO categories  
Total  Agricultural products  Non-agricultural 
products (excluding 
petroleum)  
Average 
(%) Duty -free 
lines  
(%) Average 
(%) Duty -free 
lines  
(%) Average 
(%) Duty -free 
lines  
(%) 
MFN  
2.5 49.4 1.4 72.6 2.7 45.4 
LDCs 3,277  0.0 100.0  0.0 100.0  0.0 100.0  
GSP-DCb 3,171  0.1 98.4 0.1 99.4 0.1 98.2 
GSP-DCSc 830 2.3 52.4 1.1 76.0 2.5 48.4 
GSP-DCTd 215 2.4 52.4 1.2 76.0 2.6 48.4 
Canada (CANATA)  555 2.1 57.2 1.3 75.5 2.3 54.0 
ACIFTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
ChAFTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
CPTPP  3,079  0.2 93.6 0.0 99.9 0.2 92.6 
Forum Islands  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
JAEPA  3,277  0.0 99.1 0.0 100.0  0.0 99.0 
Korea, Rep. of 
(KAFTA)  3,277  0.0 99.5 0.0 100.0  0.0 99.4 
MAFTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
Malaysia (MATA)  834 2.3 52.5 1.1 76.0 2.5 48.5 
ANZCERTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
Papua New 
Guinea  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
SAFTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
TAFTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
AUSFTA  3,277  0.0 100.0  0.0 100.0  0.0 100.0  
ASEAN:         
Brunei 
Darussalam  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Cambodia  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Indonesia  3,110  0.1 96.9 0.0 99.8 0.2 96.4 
Lao, PDR 3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Malaysia  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Myanmar  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
New Zealand  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Philippines  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Singapore  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
Thailand  3,072  0.2 96.4 0.0 99.8 0.2 95.9 
Viet Nam  3,119  0.1 97.0 0.0 99.8 0.2 96.6 
a The number of preferential lines includes only lines where the rates are lower than the 
corresponding MFN applied rate. The 2019 MFN tariff consists of 6,474 tariff lines , of which 3,197 
bear a duty -free rate.  
b GSP scheme for 56 developing countries.  
c GSP scheme for 110 developing countries.  
d GSP scheme for Chinese Taipei; Hong Kong, China; Korea , the Republic of; and Singapore.  
Note:  In cases where the preferential tariff is higher than the MFN tariff, the MFN tariff is used to calculate 
the averages.  
Source:  WTO Secretariat calculations, based on data provi ded by the authorities.  
3.1.4.1   Tariff concessions and other schemes  
3.26.   Schedule 4 of the Customs Tariff Act, 1995 sets out the type of goods and users eligible for 
concessional rates of import duty. In 2010, an inter -ministerial review concluded that Schedule 4 
was complex and difficult to use. The tariff concession regime should, therefore, be simplified. The 
Customs Tariff Amendment (Schedule 4) Act, 2012 accordingly legislated a new Schedule 4, in effect 
from 1 March 2013, while leaving the scope of  the concessions and the duty rates unaltered. The 
current guidelines to the new Schedule 4 were published in November 2015.23 
3.27.   Schedule 4 enumerates 55 items on which tariff concessions are available. A number of them 
arise from Australia's implementation o f international agreements, e.g. the UNESCO Agreement on 
                                                
23 ABF Guidelines to Schedule 4 of the Customs Tariff Act 1995 Concessional Rates of Duty, November 
2015. Viewed at: https://www.abf.gov.au/tariff -classification -subsite/files/guidelines -schedule -4.pdf. WT/TPR/S/ 396 • Australia  
 
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  the Importation of Educational, Scientific and Cultural Materials (Florence Agreement) and the 1976 
Protocol to the Agreement (Nairobi). Among the concessions that provide notable assistance to 
indus tries are Items 32 (Textiles, clothing and footwear); 34 (Aircraft parts, materials and test 
equipment); 41 (Goods for use in space projects); 42 (Robots); and 44 (Capital equipment for major 
projects – Enhanced Project By -law Scheme (EBPS)). The EBPS, adm inistered by the AusIndustry 
Division of the Department of Industry and Science, provides for duty -free imports of eligible goods 
to be used in major projects in mining, resource processing, agriculture, food processing, food 
packaging, manufacturing, and industries supplying gas, water and energy. The AusIndustry Division 
also administers the Certain Inputs to Manufacture (CIM) programme, whereby certain inputs enter 
duty-free when they have a "substantial and demonstrable performance advantage" in produci ng a 
specific end -product over substitutable goods made in Australia. The CIM programme is implemented 
through Item 46, covering raw materials and intermediate goods (essentially chemicals, plastics and 
paper) and Item 47, dealing with metal materials and goods used in the packaging of food.24 The 
ABF undertook a series of outreach activities relating to Items 34 and 44. These centred on providing 
education to industry to ensure the appropriate use of the concessions. Entities were provided 
clarification aro und the Schedule 4 Guidelines, and were encouraged to disclose any errors 
voluntarily.  
3.28.   Domestic manufacturing industries may also seek duty relief for specific inputs under Item  50, 
a revenue concession system known as the Tariff Concession Scheme (TCS), b ased on individual 
Tariff Concession Orders (TCOs). The TCS is administered by the ABF. TCOs are available where no 
Australian manufacturer is known to exist for goods that are substitutable for the imported goods in 
question. More than 15,000 TCOs are cur rently in effect, and approximately 60  new orders are issued 
every month. Once issued, the TCO is applicable to all importers of the product(s) covered, not just 
the importer that lodged the application. The Comptroller -General of Customs may determine tha t 
a TCO is no longer needed if it has not been quoted in any import declaration for two years. An 
Australian manufacturer may also contest a TCO, and request its revocation. About 700 TCOs are 
revoked on average each year. Changes, including proposed actio ns, in the TCS are announced in 
the Commonwealth of Australia Tariff Concessions Gazette, a publication issued weekly.25 
3.29.   Unless otherwise prohibited, the payment of customs duty may be deferred by storing the 
imported goods in licensed warehouses. Goods sto red in this manner, commonly referred to as 
"underbond" goods, remain under Customs control until the goods are released for home 
consumption, and the customs duty due is paid or, alternatively, the goods are exported.  
3.1.5   Other charges affecting imports  
3.1.5.1   Impor t processing fees  
3.30.   Following a government review of import charges and licence fees, legislation enforcing new 
arrangements came into force on 1 January 2016. The stated aim of the overhaul of the import 
processing charges was to ensure charges that are bas ed on cost recovery, efficient, and do not 
result in cross -subsidization of the services covered. The Import Processing Charges Act, 2001 was 
amended through the Import Processing Charges Amendment Act, 2015. The latter established 
ranges for the new appli cable fees, which allow the fees to be adjusted without a corresponding 
amendment of the 2001 Act (Table 3.5). The current fees have remained unaltered since 1 January 
2016.  
3.31.   Furthermore, the warehouse goods declaration fee and other charges related to brok erage, 
depot and warehouse licences were changed further to the Customs Amendment (Fees and Charges) 
Act, 2015, and the Customs Depot Licensing Charges Amendment Act, 2015 modified the fees for 
broker, depot and warehouse licences.26 Finally, the Customs an d Other Legislation Amendment Act, 
                                                
24 Government, Concessions to improve Australian industry competitiveness.  Viewed at: 
https://www.business.gov.au/assistance/certain -inputs -to-manufacture . 
25 The Gazette may be issued more frequently if needed. ABF, Tariff Concessions Gazette.  Viewed at: 
https://www.abf.gov.au/importing -exporting -and-manufacturing/tariff -concessions -system/tariff -concession -
order/gazette . 
26 Import Processing Charges Amendment Act, 2015. Viewed at: 
https://www.legislation.gov.au/Details/C2015A00148 ; Customs Amendment (Fees and Charges) Act, 2015. 
Viewed at: https://www.legislation.gov.au/Details/C2015A00141 ; and Customs Depot Licensing Charges 
Amendment Act, 2015. Viewed at: https://www.legislation .gov.au/Details/C2015A00140 . WT/TPR/S/ 396 • Australia  
 
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  2017 stipulates that goods imported under a Status of Forces Agreement are exempt from the import 
processing charge.27 
Table 3.5 Import processing charges  
(AUD)  
Item  Lodgement 
type Consignment 
value  Cargo 
channel  Fee in 
2015  Fee from 
1/1/2016  Established 
range  Communication of 
Import Declaration 
(N10) Warehouse 
Declaration (N20)  Electronic  1,000  or less  Sea/air/post  0.00 0.00  
1,000 .01 to 
10,000  Air/post  40.20  50.00  50 to 75  
Sea 50.00  
More than 10,000  Air/post  122.10  152.00  152 to 228  
Sea 152.60  
Documentary  1,000 .01 to 
10,000  Air/post  48.85  90.00  90 to 135  
Sea 65.75  
More than 10,000  Air/post  122.10  192.00  192 to 288  
Sea 152.60  Warehoused 
goods (N30)  
Electronic   n.a. 23.20  23.00   
Documentary   n.a. 60.00  63.00   
n.a. Not applicable.  
Source:  Department of Immigration and Border Protection, Notice No. 2015/44; and the Import Processing 
Charges Amendment Act, 2015.  
3.1.5.2   Goods and Services Tax (GST)  
3.32.   Australia levies value -added tax in the form of a GST at the general rate of 10% on goods 
and services. Most basic foods, certain educational services, and products and services related to 
health, medical and care activities are tax exem pt (GST -free).28 Exported goods are generally not 
subject to GST, and the supply of a service is GST -free if the recipient is outside Australia. Except 
for the provision of taxi travel, businesses with an annual GST turnover of less than AUD 75,000 do 
not need to register for payment of GST.29  
3.33.   Certain changes in the legislation related to the GST took place since the last Review. Effective 
1 October 2016, the application of GST in cross -border transactions between businesses was 
modified to ensure that non -resident suppliers are not drawn unnecessarily into Australia's GST 
system, thus reducing the compliance costs for some non -resident suppliers. The purchaser, rather 
than the seller, was made responsible ("reverse charge") for the remittance of GST on taxab le 
supplies of gold, silver and platinum from 1 April 2017. Simultaneously, the GST Act was amended 
to ensure that goods containing gold, silver or platinum may not be considered second -hand goods 
for GST purposes. On 1 July 2017, the scope of the GST was extended to digital products and 
services, such as architectural and legal services, supplied cross -border to consumers in Australia. 
Overseas platforms allowing Australian consumers to download films, music, apps, games, e -books, 
etc. are thus now require d to register for payment of GST with the Australian Taxation Office (ATO), 
and collect, report and remit the GST on all such sales to Australian customers. On the same date, 
the GST treatment of digital currencies (e.g.  Bitcoin) also became aligned with t he GST treatment 
of money. On 28 March  2018, GST legislation was amended to require purchasers of new residential 
premises and potential residential land to withhold an amount of the contract price and remit it to 
the ATO (rather than entrusting it to prop erty developers) and on 1 July 2018, a tax loophole was 
closed on imports of low -value goods by Australian consumers. There were no changes to the border 
clearance process for the AUD 1,000 threshold. Customs duties, taxes and other charges continue 
to be assessed at the border, as applicable.  
                                                
27 Customs and Other Legislation Amendment Act , 2017. Viewed  at: 
https://www.legislation.gov.au/Details/C2017A00019 . 
28 Menstrual products were added to the list of GST -free items on 1 January 2019.  
29 The annual threshold amounts to AUD 150,000 for non -profit organizations.  WT/TPR/S/ 396 • Australia  
 
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  3.1.5.3   Luxury car tax  
3.34.   Introduced in 2000, Australia levies a luxury car tax (LCT) on passenger motor vehicles with 
a value including GST (and customs duties) exceeding AUD 75,526 for fuel -efficient vehicles, and 
AUD 67,525 f or other vehicles, in financial year 2019/20.30 The tax is imposed at a rate of 33% on 
the amount above the luxury car threshold. In general, the value of the car includes the value of 
any parts, accessories or attachments supplied at the time of importatio n or sale of the car. The tax 
is also applied to second -hand motor vehicles, including on cars where the LCT has already been 
paid, but only if the car has increased in value. Subsection 25(2) of the New Tax System (Luxury 
Car Tax) Act, 1999 exempts commer cial vehicles not designed for the principal purpose of 
transporting passengers, emergency vehicles, vehicles specifically fitted for the transportation of 
disabled persons in wheelchairs, and motor homes and campervans from the LCT. Since 2017, 
certain pu blic institutions, such as museums, galleries and libraries, have also been exempted from 
the payment of LCT on cars imported or acquired as collectors' pieces or works of art for the sole 
purpose of public display.31 
3.1.5.4   Wine equalization tax  
3.35.   The taxation of w ine differs from the taxation of other alcoholic beverages. According to the 
New Tax System (Wine Equalization Tax) Act, 1999, a flat rate of 29% ad valorem  is applied to the 
wholesale value of wines, including imported wine, with a minimum alcohol content  of 1.15% 
(volume of ethyl alcohol), i.e. grape wine, grape wine products, fruit wines and vegetable wines, 
cider and perry, mead, and sake. Provisions governing the tax rebate for domestic wine producers 
were tightened, as amendments to the Act received R oyal Assent on 23 August 2017. The eligibility 
criteria for the rebate were tightened, the link between rebate claims and actual tax payments was 
strengthened, and an associated producer test now applies at any time during the financial year. In 
addition, the annual cap  on the producer rebate was reduced from AUD  500,000 to AUD 350,000 
with effect from 1 July 2018.  
3.1.5.5   Excise duties  
3.36.   Alcohol and alcoholic beverages (other than wine), tobacco, fuel and petroleum products 
manufactured in Australia are subject to e xcise duty. Domestic businesses producing, manufacturing 
or storing such goods are required to hold an excise licence.32 Beer and spirits are taxed according 
to their alcoholic strength, as the tax rate is expressed in Australian dollars per litre of (pure)  
alcohol.33 The tax rates are indexed twice a year, normally on or around 1 February and 1 August. 
Regarding the taxation of beer, the lowest rates apply to beer produced for non -commercial purposes 
using commercial facilities or equipment (AUD 3.04 or 3.51  per litre of alcohol).34 The tax structure 
also distinguishes between the alcoholic strength of beers (less than 3%, 3% -3.5%, and over 3.5%), 
the size of the beer container, and the type of distribution (pump or pressurized gas delivery 
system), resulting in tax rates that range from AUD 8.66 to AUD 50.40 per litre of alcohol since 
1 July 2019.35 For spirits and other excisable beverages exceeding 10% by volume of alcohol, the 
tax rate amounted to AUD 85.36 per litre of alcohol as at 4 February 2019, with a lower rate 
applicable to brandy (AUD 79.72).36 
                                                
30 The threshold values for "other cars" are indexed, and have thus been adjusted upward each year in 
recent years, from, e.g. AUD 61,884 in FY 2014/15 and AUD 57,180 in FY 2009/10. For fuel -efficient cars, the 
value threshold was increased from AUD 75,375 to its current level in FY 2016/17. A car is defined as fuel 
efficient when its fuel consumption does not exceed seven litres per 100  km as a c ombined rating under the 
vehicle standards in force under Section 7 of the Motor Vehicle Standards Act, 1989.  
31 The public institution must be endorsed by the Commissioner of Taxation as a deductible gift 
recipient.  
32 The initial licence is valid for two years plus the period remaining until the next 30 September. 
Renewed licences are valid for three years.  
33 For example, if the tax rate for beer of 5% alcohol volume is AUD 50.40 (per litre of alcohol), the 
excise duty  on one litre of such beer will amount to AUD 2.52.  
34 ATO, Excise rates for alcohol . Viewed at: https://www.ato.gov.au/business/exci se-and-excise -
equivalent -goods/alcohol -excise/excise -rates-for-alcohol/ . 
35 On 1 July 2019, concessional rates of excise were extended to draught beer dispersed by pump or 
pressurized gas and supplied in kegs or containers of 8 litres or more. The cap on th e excise refund scheme for 
eligible domestic producers was also increased to AUD 100,000 per financial year from the same date.  
36 The excise rate on brandy was lowered, to support local grape production. Imported brandy is subject 
to the same excise equiva lent rate and conditions.  WT/TPR/S/ 396 • Australia  
 
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  3.37.   Licences to grow tobacco are strictly regulated, and are rarely granted. Currently, no -one is 
licensed to grow tobacco for personal or commercial use, and there is no tobacco manufacture in 
Australia. The sale of snuff is banned. Tobacco and other tobacco products are subject to excise 
duty, at rates adjusted in March and September each year based on the evolution of average weekly 
ordinary time earnings. In addition, tobacco excises were slated to be increased by 12.5% on 
1 September 2019 and a further 12.5% on 1 September 2020. The excise duties in force in July  2019 
amounted to AUD 0.81775 per stick for tobacco in stick form (e.g.  cigarettes and cigars) and 
AUD 1,090.33 per kg of tobacco content for other toba cco and tobacco products. The excise regime 
for roll -your-own tobacco (and other products such as cigars) was changed in the period under 
review to ensure comparable tax treatment with manufactured cigarettes. The adjustment to the 
higher tax rates is bein g phased in through four annual changes; the first increase took effect on 
1 September 2017. Until 1 July 2019, tobacco excises were payable upon entry into the market for 
home consumption, i.e. as the goods were taken out of bonded warehouses. After that date, the 
timing was brought forward to the time of importation or manufacture. Tobacco goods may still be 
stored in licensed warehouses, but only after duty has been paid.  
3.38.   Fuel and petroleum products produced or manufactured in Australia are subject to ex cise 
duties. The excise regime extends to crude oil and condensate; petroleum fuels such as petrol and 
diesel; gaseous fuels; biofuels; solvents; lubricants; and recycled fuel and fuel products. The duty 
rates are expressed as specific amounts per litre, k ilolitre or kilogram, including for gaseous fuels. 
Except for aviation fuels, the duty rates are adjusted twice a year to mirror movements in the 
consumer price index, normally on (or around) 1  February and 1 August.37 Detailed information 
about the rates i n force is available on the ATO website.38 
3.39.   Introduced in 2001, the Product Stewardship for Oil programme encourages oil recycling.39 A 
levy is collected from importers and domestic producers of petroleum -based oils and their synthetic 
equivalents. Exported o il is not levied, and levied oil incorporated in products subsequently exported 
may be subject to drawback arrangements. The levy has amounted to AUD 0.085 per litre (or 
kilogram for greases) since 1 July 2014.40 The revenue generated by the levy is used to  offset the 
costs of oil recyclers by granting them a benefit. The recycler must undertake the final processing 
stage, and use, or sell, the output for its end use.41 The amount of benefit paid (per litre or kilogram) 
depends on the type of recycled output (eight end -product categories).42 In 2018/19, the levies 
collected under the programme totalled AUD 49.97 million, and total benefits paid out under the 
programme amounted to AUD 72.66 million (for 368 claims to 25 recipients).  
3.40.   Imported alcohol (except wine ), tobacco, fuel and petroleum products (including liquefied 
natural gas, liquefied petroleum gas, and compressed natural gas) are designated as "excise 
equivalent goods" (EEGs) subject to customs duty at rates equivalent to domestically produced 
goods. If  the payment of customs duty is pending, the goods are considered underbond, and stored 
in licensed warehouses. EEGs may be used in the manufacture of excisable goods.  
3.1.5.6   Other charges and levies  
3.41.   Many primary products are subject to excise levies (paid by the  producer) when destined for 
the domestic market, or customs charges if the commodities are exported or imported. These levies 
are collected to fund five main purposes. Levies and charges funding for research and development 
(R&D), and marketing are distri buted to 15 commodity -based R&D corporations. Levies and charges 
for national residue surveys are paid to the Department of Agriculture. Levies and charges for 
biosecurity activities or emergency response purposes are directed to Plant Health Australia (PH A) 
or Animal Health Australia (AHA). PHA and AHA invest in biosecurity activities and emergency 
responses with industry through a deed arrangement. These arrangements are made at the request 
                                                
37 Automatic indexation of fuel excise was reintroduced on 1 July 2015.  
38 The rates in force in 2019 can be consulted at: https://www.ato.gov.au/business/excise -and-excise -
equivalent -goods/fuel -excise/excise -rates-for-fuel/. 
39 The Product Stewardship (Oil) Act, Act No. 102 of 2000, as amended, and the Product Stewardship 
(Oil) Regulations, 2000 set out the general fr amework for the levy -benefit system.  
40 The levy amounted to AUD 0.05449 per litre/kg prior to that date.  
41 The benefit is not paid for the stockpiling of recycled oil.  
42 ATO, Product stewardship for oil program . Viewed at: https://www.ato.gov.au/Business/Fuel -
schemes/Product -stewardship -for-oil-program/ ; and Australian Government, Product stewardship benefits.  
Viewed at: https://www.environment.gov.au/protection/used -oil-recycling/product -stewardship -oil-
program/benefits . WT/TPR/S/ 396 • Australia  
 
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  of agricultural, forestry and fisheries industries to fund shared  industry priorities. The Department 
of Agriculture collects, administers and disburses the levies and charges on behalf of primary 
industries, and co -invests in R&D activities by providing matching funding. In 2017/18, the 
Department disbursed AUD 839.8 m illion in levies, charges and Commonwealth matching payments 
to the 18 levy recipient bodies.  
3.42.   For commodities destined for the domestic market, the excise levies are imposed in 
accordance with the Primary Industries (Excise) Levies Act, 1999, the Primary I ndustries (Excise) 
Levies Regulations, 1999, the National Residue Survey (excise) Levy Act, 1998, and the Horse 
Disease Response Levy Act, 2011, and subordinate legislation. Customs charges are imposed under 
the Primary Industries Customs Charges Act, 1999  and the National Residue Survey (Customs) Levy 
Act, 1998, and subordinate legislation. The basic reporting and collection arrangements for the 
producer levies are laid down in the Primary Industries Levies and Charges Collection Act, 1991, and 
the Horse D isease Response Levy Collection Act, 2011, and their subordinate legislation. As levies 
and charges are imposed by the Government at the request of primary industry commodity sectors, 
those sectors are responsible for consultation and demonstrating majorit y industry support for each 
levy or charge proposal.  
3.1.5.7   Taxes applied at sub -federal level  
3.43.   Australia's states and territories collect of a number of duties and taxes that have little or no 
relationship with trade, such as payroll taxes, stamp duties, taxes on land and property, and taxes 
to finance local emergency services or waste disposal. Taxes on property are also an important 
source of financing for local governments. In the period under review, several states increased taxes 
levied on foreign inv estments in land or residential property (Section 2.4). Taxes and duties on 
goods and services that are, or may be, tradable include taxes on motor vehicles (registration, 
license duty, transfers, etc.); gambling and betting, including on the Internet; and  stamp duty on 
insurance policies (Table 3.6). The NSW Treasury compiles an annual overview of taxes collected at 
the level of states and territories, to facilitate interstate comparisons.43 
Table 3.6 State and  territory taxes on selected items, 2017/18  
(Revenue in AUD million)  
State or territory  Motor vehicle taxes  Total  taxes  on 
gambling  Total taxes on 
insurance  
New South Wales  3,576 2,350  2,508  
Queensland  2,313  1,190 944 
Southern Australia  648 395 460 
Tasmania  188 89 110 
Victoria  2,479  1,851  1,299  
Western Australia  1,360  258 645 
Australian Capital Territory  165 51 43 
Northern Territory  74 83 46 
Source:  Australian Bureau of Statistics (ABS) (Taxation Revenue – Cat. 5506).  
3.1.6   Import prohibitions, restrictions, and licensing  
3.44.   As Australia's frontline border law enforcement agency, the ABF assists in the implementation 
of various pieces of legislation that prohibit outright the importation of certain goods, restrict certain 
imports, and subject importation to the fulfilment of specific conditions. On its website, the ABF 
identifies approximately 60 instances of "prohibited" imports (Table 3.7). Many of these restrictions 
or conditional measures reflect concerns related to public health an d safety, measures affecting the 
domestic production and marketing of identical, similar or like goods, or stem from Australia's 
participation in international agreements and arrangements to regulate trade in particular products, 
such as chemical weapons, radioactive and nuclear materials, hazardous waste, ozone -depleting 
substances and synthetic greenhouse gases, cultural heritage goods, or the cross -border movement 
of endangered animals and plant species ( Convention on International Trade in Endangered Sp ecies 
                                                
43 The most recent NSW Treasury paper, published in December 2017, provides an overview of taxes 
applicable on 31 October 2016. NSW Treasury, Interstate Comparison of Taxes 2016 -17. Viewed at: 
https://www.treasury.nsw.gov.au/sites/default/files/2017 -12/TRP17 -
01%20Interstate%20Comparison%20of%20Taxes%202016 -17%20 -web.pdf . WT/TPR/S/ 396 • Australia  
 
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  - CITES). The conditions applicable to CITES -related imports are distinct from biosafety and 
quarantine regulations enforced as sanitary and phytosanitary measures (Section 3.3.3).  
Table 3.7 Imports subject to prohibition or non -automatic licensing, 2019  
Item  Justification  Measure  
Anabolic or androgenic 
substances (steroids)  Public health or safety 
concerns  Permission required from the Office of Drug 
Control  
Antibiotics  Public health or safety 
concerns  Permission required from the Office of Drug 
Control  
ANZAC goods (including 
related advertising materials)  National symbol  Prohibited unless written permission has 
been granted by the Minister for Veter ans' 
Affairs or an authorized officer  
Asbestos  Public health or safety 
concerns  Prohibited, unless the circumstances satisfy 
exemption or exception criteria under the 
Work Health and Safety Act , 2011 
Body armour and extendable 
batons  Community protection  Prohibited. Permission may be granted by the 
Minister for Home Affairs or an authorized 
person , or state or territory police  
Cat and dog fur products  Animal welfare  Permission may be obtained from the 
Minister for Home Affairs or an authorized 
officer  
Ceramic ware (glazed)  Public health or safety 
concerns  Imports must be accompanied by a testing 
certificate from the National Measurement 
Institute or a testing agency approved by the 
National Association of Testing Authorities 
Australia. Goods mu st comply with the 
methods of testing and permissible levels of 
metal release  
Chemical weapons, chemicals 
and their precursors  International commitment 
(Convention on the 
Prohibition of the 
Development, Production, 
Stockpiling, and Use of 
Chemical Weapons  and 
their Destruction)  Written permission from the Foreign Minister 
or the Australian Safeguards and 
Non-Proliferation Office required by the A BF 
at the time of import  
Competition and Consumer 
Act goods (e.g. glucomannan, 
certain seat accessories and 
sun visors, certain toys, 
certain water ski releases, gas 
masks containing asbestos, 
candles/candlewicks 
containing lead, oral snuff and 
chewing tobacco (more than 
1.5 kg))  Consumer protection  Permission to import goods prohibited  under 
the 2010 Act must be  addressed to the 
Australian Competition and Consumer 
Commission, Consumer Product Safety 
Branch  
Regulation 4U of the Customs 
(Prohibited Imports) 
Regulations, 1956 prohibits 
the importation of goods that 
are: 
- subject to a ban pursuant to 
the Competitio n and 
Consumer Act; and  
- listed in Schedule 12 of the 
Customs (Prohibited Imports) 
Regulations, 1956  Consumer protection  Permission to import these goods must be 
obtained in writing from the Minister 
pursuant to the requirements in Regulation 
4U of the Customs (Prohibited Imports) 
Regulations, 1956  
Goods banned pursuant to the 
Competition and Consumer 
Act and not listed in Schedule 
12 of the Customs (Prohibited 
Imports) Regulations, 1956  Consumer protection  Ban notices under the Competition and 
Consumer Act prohibit the supply of goods in 
Australia; they do not prohibit the 
importation of the goods  
Cosmetics (containing toxic 
materials, i.e. lead and lead 
compounds exceeding 
250 mg/kg)  Public health or safety 
concerns  Prohibited. Written permiss ion required from 
the Minister for Home Affairs or an 
authorized person  
Credit cards (counterfeit)  Community protection  Prohibited. Written permission needed from 
the minister administering the Australian 
Federal Police Act, 1979  WT/TPR/S/ 396 • Australia  
 
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  Item  Justification  Measure  
Cultural heritage goods 
(general)  International commitments 
(UNESCO)  If required by the country of origin, imports 
must be accompanied by an appropriate 
export permit. Illegal imports may be seized 
and returned to the country of origin, and the 
importer risks prosecution  
Cultural heritage goods from 
Papua  New Guinea (PNG)  International commitments  Permission to export or remove goods from 
PNG, granted by the Trustees of the PNG 
Public Museum and Art Gallery, must be 
presented to the A BF upon importation  
Dog collars (protrusion)  Animal welfare  Prohibited. Permission granted in very limited 
circumstances by the Minister for Home 
Affairs or an authorized person  
Dangerous dog breeds (and 
related advertising matter)  Public health or safety 
concerns  Prohibited absolutely  
Drugs and narcotics (listed in 
Schedule 4 of the Customs 
(Prohibited Imports) 
Regulations)  Public health or safety 
concerns, international 
commitments ( the Single 
Convention on Narcotic 
Drugs , 1961, the 
Convention on 
Psychotropic Substances , 
1971, and the  Convention 
Against Illicit Traffic in 
Narcotic Drugs and 
Psychotropic Substances , 
1988)  Prohibited; limited quantities for personal use  
are exempted . Controlled drugs imported by 
other means require permission from the 
Office for Drug Control  
Endangered  animal and plant 
species  International commitment 
(CITES)  Importation of CITES -listed species generally 
require an export permit from the country of 
origin and an import permit issued by the 
Department of the Environment and Energy. 
For live animals and plants, the Department 
of Agriculture administers further regulations 
and restrictions  
Erasers (novelty - toxic 
materials)  Public health or safety 
concerns  Concerns erasers resembling food (in scent 
and appearance) containing excess amounts 
of toxic compounds. Written permission 
required from the Minister for Home Affairs 
or an authorized person  
Explosives, plastic  Community protection  Prohibited unless permission has been 
granted by the Minister for Home Affairs or 
an authorized person. Permission for 
unmarked plastic explosives granted in 
limited circumstances  
Firearms and firearms parts, 
accessories and ammunition  Community protection  Prohibited unless permission has been 
granted by the Minister for Home Affairs, an 
authorized person, or (in som e cases) state 
or territory police  
Fish, fresh, smoked, 
preserved in airtight 
containers, or frozen  Protection of Australian 
species in Australian 
fishing zones  Prohibited, but import permit may be issued 
by the minister administering the Fisheries 
Manag ement Act , 1991. Except in emergency 
circumstances, foreign fishing vessels must 
obtain a port permit prior to entry at an 
Australian port  
Fly swatters/mosquito bats 
(electronic)  Community protection  Prohibited. Permission may be granted by the 
Minister for Home Affairs or an authorized 
person. B attery -powered insect zappers (6V 
or less) with the electrified grid shielded to 
prevent contact by a person do not require 
permission   
Goods bearing the image of 
an Australian state or territory 
flag, c oat of arms or seal  National symbol  Design approval required from the 
Department of Premier and Cabinet or the 
Chief Minister's Department of the relevant 
state or territory. For approved designs, 
written permission to import must be 
obtained from the Mini ster for Home Affairs 
or an authorized person  WT/TPR/S/ 396 • Australia  
 
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  Item  Justification  Measure  
Goods bearing the image of 
the Australian Arms, Flag or 
Seal of the Commonwealth  National symbol  Designs require written approval by the 
Commonwealth Flag Officer at the 
Department of the Prime Minister and 
Cabinet  
Growth hormones and 
substances , of human or 
animal origin  Public health or safety 
concerns  Permission to import must be obtained from 
the Office of Drug Control. Limited exemption 
applicable to goods carried by passengers for 
personal use  
Hazardo us waste  International commitments 
(Basel Convention, and 
OECD Council 
Decision  C(92)39)  Imports prohibited under the Hazardous 
Waste (Regulations of Imports and Exports) 
Act, 1989 unless a permit has been granted 
by the Minister for the Environment or an 
authorized person  
Ice pipes Community protection  Prohibited unless permission has been 
granted by the Minister for Home Affairs or 
an authorized person  
Imitation firearms  Community protection  Prohibited unless permission has been 
granted by the relevant state or territory 
police  
Incandescent lamps  Energy saving  Prohibited unless permission has been 
granted by the Minister for the Environment 
and Energy or an autho rized person in the 
Department of the Environment and Energy. 
Retrospective permits will not be issued  
Kava Public health or safety 
concerns  The Office of Drug Control only issues 
permits for scientific or medical purposes. 
Passengers (aged 18 or above) m ay carry up 
to 2 kg of kava in root or dried powder form 
in their accompanied luggage  
Knives and daggers  Community protection  Prohibited. Depending on the type of 
weapon, permission may be granted by the 
relevant state or territory  police or by the 
Department of Home Affairs  
Laser pointers  Community protection  Prohibited if >1mW. Permission may be 
granted by the relevant state or territory 
police or by the Department of Home Affairs  
Lighters (disposable, novelty 
or refillable)  Public health or saf ety 
concerns  Passengers (18 years or older) may bring up 
to 5 lighters upon entry into Australia without 
prior permission. Other imports require a 
certificate of compliance (American Standard) 
or written permission from the Minister for 
Home Affairs or an authorized person  
Money boxes (novelty - toxic 
materials)  Public health or safety 
concerns  Permission required from the Minister for 
Home Affairs or an authorized person to 
import money boxes coated with a material 
containing more than 90 mg/kg of lead  
New psychoactive substances 
and serious drug alternatives  Public health or safety 
concerns  Prohibited unless restricted under other 
import controls (e.g. food, therapeutic goods, 
agricultural and veterinary chemicals)  
Ozone -depleting 
substances/synthetic 
greenhouse gases (ODS/SGG)  Environmental 
conservation/international 
commitment (Montreal 
and Kyoto Protocols)  Importation of certain ODS s and SGG s is 
prohibited unless a licence has been granted 
by an authorized person at the Department 
of the Environment and Energy, as a 
delegate of the responsible Minister. The 
licence requirement does not apply in certain 
circumstances  
Paintball markers (includi ng 
parts and accessories)  Community protection  Prohibited unless permission has been 
granted by the relevant state or territory 
police  
Pencils or paintbrushes (toxic 
materials)  Public health or safety 
concerns  Written permission required from the Minister  
for Home Affairs or an authorized person for 
items containing excess amounts of toxic 
compounds  
Pepper and oleoresin 
capsicum spray  Community protection  Prohibited unless permission has been 
granted by the Minister for Home Affairs or 
an authorized perso n WT/TPR/S/ 396 • Australia  
 
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  Item  Justification  Measure  
Pesticides and other 
hazardous chemicals  Public health or safety 
concerns  Permission to import organochlorine 
chemicals may be granted by the Minister for 
Agriculture if certain conditions are met  
Polychlorinated biphenyls, 
terphenyls, and polyphenyls  International commitments 
(Rotterdam and Stockholm 
Conventions ) Prohibited unless permission has been 
obtained from the Minister for Home Affairs 
or an authorized person  
Pornography and 
objectionable material  Community protection  Including, bu t not limited to material that 
may be refused classification under the 
National Classification Code and the 
Classification (Publications, Films and 
Computer Games) Act , 1995. The Director of 
the Classification Board may grant 
permission to import objection able goods in 
strictly limited circumstances  
Precursor substances  Public health or safety 
concerns/international 
commitments  Precursor substances of drugs listed in 
Schedule 4 of the Customs (Prohibited 
Imports) Regulations , 1956 may not be 
imported without import permission from the 
Office of Drug Control  
Radioactive substances  Community 
protection/international 
commitments  Prohibited. Licensing and permit 
requirements are administered by the 
Australian Radiation Protection and Nuclear 
Safety Agency  
Rough diamonds (Kimberley 
Process Certification Scheme 
(KPCS))  International commitments  Prohibited unless the diamonds are 
transported in a tamper -proof container, 
exported from a country participating in the 
KPCS, and accompanied by a valid KP 
certificat e 
Sanctioned countries/entities  Sanctions imposed by the 
United Nations Security 
Council and /or Australian 
autonomous sanctions  Permits to trade sanctioned goods with 
sanctioned countries are administered by the 
DFAT 
Security -sensitive ammonium 
nitrate  Public health or safety 
concerns  Prohibited unless permission has been 
granted by the relevant state or territory 
authority  
Signal jammers/signal 
jamming devices  Community protection  Prohibited (importation and domestic use)  
Soft air (BB) firearm s Community protection  Prohibited unless permission has been 
granted by a relevant police representative  
Suicide devices  Community protection  Prohibited. Permission not granted under any 
circumstances  
Tablet presses  Public health or safety 
concerns  Prohibited unless permission has been 
granted by the Minister for Home Affairs or 
an authorized person  
Therapeutic drugs, substances 
and goods  Public health or safety 
concerns  Permit requirements administered by the 
Office of Drug Control. Goods may need to be 
included in the Australian Register of 
Therapeutic Goods  
Tobacco (except for cigars 
and up to 1.5 kg of smokeless 
tobacco)  Domestic regulation  and 
community protection  Prohibited unless permission has been 
granted by the Minister for Home A ffairs or 
an authorized person  
Tobacco - chewing and oral 
snuff Domestic regulation  and 
community protection  Prior permission from the Australian 
Competition and Consumer Commission 
required for imports exceeding 1.5 kg  
Tobacco – unmanufactured 
leaf and tobacco refuse  Domestic regulation  and 
community protection  Prior permission required from the A TO, 
Excise and EEG Licensing Group  
Toothfish  Protected under 
international instrument 
through the Commission 
for the Conservation of 
Antarctic Marine Living 
Resources, to protect 
against illegal poaching  Permit may be granted by an authorized 
officer from the Australian Fisheries 
Management Authority  
Toys (toxic materials)  Public health and safety 
concerns  Toys coated with material cont aining excess 
amounts of toxic compounds require written 
permission from the Minister for Home Affairs 
or an authori zed person  WT/TPR/S/ 396 • Australia  
 
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  Item  Justification  Measure  
Viable material derived from 
human embryo clones   Prohibited unless permission has been 
granted by the Minister for Health or an  
authorized person at the National Health and 
Medical Research Council  
Warfare goods and other 
weapons  Community protection  Prohibited unless permission has been 
granted by the Minister for Home Affairs, an 
authorized person or , in some cases , state or 
territory police  
Woolpacks  Domestic regulation  Imports require permission from the Minister 
of Agriculture or an authorized person, or an 
original test certificate stating that the 
unused woolpack conforms to the Australian 
Wool Exchange Standard as described in the 
Customs (Prohibited Imports) 
Regulations , 1956  
Source:  WTO (2015); WTO document G/LIC/N/3/AUS/10, 20 September 2018; information provided by the 
authorities; and the ABF, Prohibited Goods . Viewed at: https://www.abf.gov.au/importing -exporting -
and-manufacturing/prohibited -goods/list -of-items# . 
3.45.   The measures imposed on a wide range of restricted imports are detailed in the Customs 
(Prohibited Imports) Regulations, 1956, established under the Customs Act, 1901.44 According to 
the regulations currently in force, an absolute prohibition on importation (Schedule 1) relates only 
to specific dangerous dog breeds (and related advertising materi als). Schedule 2 lists goods that are 
prohibited to import unless written permission has been granted by the responsible minister or an 
authorized person, e.g. cosmetics and toys that include toxic materials in quantities that exceed 
established tolerances . Other schedules to the regulations concern the compliance with specified 
conditions, restrictions or requirements for certain imported goods (Schedule 3) or the enforcement 
of provisions relating to drugs; firearms, weapons and weapon parts; glazed ceram ic ware; certain 
organochlorine chemicals; chemical compounds; and ODSs (Schedules 4 to 13). In some instances, 
when non -automatic licensing is applied, a two -step procedure is followed, whereby the prospective 
importer first requests authorization to be a cknowledged as a legal importer of the goods in question, 
and subsequently files applications for import permits for individual consignments of the said goods. 
The regulations oblige entities and persons to obtain import permits from the relevant permit -issuing 
authority prior to importation, so that all relevant documents may be presented to the ABF at the 
time of clearance through Customs. In 2009, the Australian Customs Service introduced some 
flexibility, by allowing additional time to importers/owners genuinely not aware of the need to, or 
unable to, obtain the required permission in advance.45 In such instances, Customs may detain the 
goods for up to 30  days while permission is sought. However, Customs will seize the goods in 
accordance with the Customs  Act, should the request be refused or no permission be sought.  
3.46.   Further to the Charter of the United Nations Act, 1945, Australia implements sanctions 
approved by the United Nations Security Council (UNSC) as a matter of international law. In addition, 
Australia may implement sanctions autonomously towards specific countries/territories, or in respect 
of transactions with specific individuals or businesses. As at early June 2019, sanctions mandated 
by the United Nations concerned multilateral decisions take n with respect to the Central African 
Republic; counter -terrorism; the Democratic Republic of the Congo; Guinea -Bissau; Iraq; ISIL 
(Da'esh) and Al -Qaida; Lebanon; Mali; Somalia; South Sudan; Sudan; the Taliban; and Yemen. For 
three countries – the Democrat ic People's Republic of Korea, Iran and Libya – the UNSC sanctions 
were supplemented by Australian autonomous sanctions. Furthermore, Australian autonomous 
sanctions were in place concerning persons and entities from the Former Federal Republic of 
Yugoslav ia, Myanmar, the Russian Federation/Ukraine, Syria, and Zimbabwe.  
3.47.   Permits, administered by the DFAT, are needed to trade goods between Australia and a 
sanctioned country or entity. Registered users may submit applications through the Online Sanctions 
Admin istration System. The DFAT maintains a regularly updated Consolidated List of all persons and 
entities that are subject to targeted financial sanctions or travel bans under Australian sanctions 
                                                
44 Regularly updated  regulations are available a t: https://www.legislation.gov.au/Series/F1996B03651 . 
45 Australian Government, Australian Customs Service Notice No. 2009/03, Introduction of the Post 
Import Permission Scheme . Viewed at: https://www.abf.gov.au/help -and-support -
subsite/CustomsNotices/2009 -03.pdf . WT/TPR/S/ 396 • Australia  
 
- 56 - 
 
  legislation, i.e. the UN Charter Act and its sets of regulatio ns, the Autonomous Sanctions Act, 2011, 
and the Autonomous Sanctions Regulations, 2011.46 
3.48.   Australia replies to the WTO questionnaire on import licensing procedures on a regular basis.47 
The 2018 submission provided details of many of the restrictions on item s enumerated in Table 3. 7. 
In addition, information was provided on the licensing procedures employed to administer Australia's 
annual tariff quota on cheese and curd; import approvals for new and used motor vehicles; imports 
into Antarctica, the Heard Isl and and the McDonald Islands; and the regulation of genetically 
modified organisms (GMOs) in Australia. In most cases, a licence is necessary for commercial 
dealings with a GMO.  
3.1.7   Anti-dumping, countervailing, and safeguard measures  
3.49.   The Anti -Dumping Commissi on investigates formal claims that Australian industries have been 
materially injured by dumped or subsidized imports. Its Commissioner, which leads and directs the 
work, reports directly to the Minister for Industry, Science, and Technology. The Commissio n 
conducts its investigations on the basis of the Customs Act, 1901, the Customs Tariff (Anti -Dumping) 
Act, 1975, the Customs Tariff (Anti -Dumping) Regulation, 2013, the Customs (International 
Obligations) Regulation, 2015, and the Customs Amendment (Anti -Dumping Measures) Act, 2017.48 
The Anti -Dumping Commission developed a detailed manual that sets out the requirements for 
applications, and the factors the Commission will consider in examining claims of injurious dumping 
or actionable injurious subsidy. Th e manual is updated occasionally as necessary.49 
3.50.   Although the principal features of Australia's anti -dumping and countervailing system remain 
unchanged since 2015, certain legislative changes took place during the period under review.  The 
Customs Amendment (Anti-dumping Measures) Act (No. 1), 2015, passed by Parliament on 13  May 
2015, introduced the possibility to submit dumping and countervailing applications by email. Other 
changes included stricter enforcement of deadlines for submissions to conform with the standard 
investigation/inquiry period of 155 days, "cumulative assessment" of injury when two or more 
countries are subject to an investigation, confirmation that third -country sales do not need to be 
considered before constructing normal values, and a mendments relevant to accelerated reviews. A 
provision to counter circumvention of Australian anti -dumping or countervailing measures was 
inserted in the Customs Regulations, 1926, through the Customs Amendment (Anti -Dumping 
Improvements) Regulation, 2015.  Two ministerial directions were also issued to the Anti -Dumping 
Commission in 2015, covering extensions of time for interested parties to respond and 
non-cooperation, and the issuance of preliminary affirmative determinations 60 days after the 
initiation of an investigation (or a status report if no preliminary affirmative determination is made).  
3.51.   Established in 2013, a six -member Anti -Dumping Review Panel (ADRP) may, upon request, 
review certain decisions of the Minister or the Commissioner of the Anti -Dumping Commission. The 
Customs Amendment (Anti -dumping Measures) Act (No. 1), 2015 revised the criteria for review 
applications and, inter alia , authorized the Minister to set a fee for the handling of such reviews. 
However, Parliament subsequently disallowe d the legislative instrument prescribing the fee, and no 
fee has been charged for applications to the ADRP since 2 March 2016.50 The Customs Amendment 
(Anti-Dumping Measures) Act, 2017 addressed attempts by exporters to have the rate of 
anti-dumping duty re duced by exporting low volumes of goods, or not exporting, in the period 
examined for the purpose of the review.51 
                                                
46 DFAT, The Consolidated List.  Viewed  at: https://dfat.gov.au/international -
relations/security/sanctions/Pages/consolidated -list.aspx#list . 
47 The most recent replies w ere circulated in WTO document G/LIC/N/3/AUS/10 on 20 September 2018. 
In 2017, Australia also provided a notification pursuant to the Decision on Notification Procedures for 
Quantitative Restrictions (G/L/59/Rev1) (WTO document G/MA/QR/N/AUS/3, 10 August 2017).  
48 The Cus toms Regulations, 1926 were updated shortly after this amendment, and the anti -dumping 
regulations were moved to the Customs (International Obligations) Regulation, 2015.  
49 Targeted updates of the  Dumping a nd Subsidy Manual were completed in April 2017 and  April 2018. 
Anti-Dumping Commission , Dumping and Subsidy Manual, November 2018 . Viewed at: 
https://www.industry.gov.au/sites/default/files/2019 -05/adc_dumping_and_subsidy_manual.pdf . 
50 The application fee was set at AUD 10,000 for governments  and large enterprises (more than 200 
full-time employees), and AUD 1,000 for other applicants.  
51 WTO document G/ADP/N/1/AUS/2/Suppl.17 , G/SCM/N/1/AUS/2/Suppl.15, 25  January 2018.  WT/TPR/S/ 396 • Australia  
 
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  3.52.   The ADRP affirms or revokes the decision of the Commissioner or, for ministerial decisions, 
issue a recommendation that the Minister should af firm the challenged decision, set it aside, or 
replace it with a new decision. The ADRP finalized 13 reports on decisions examined by it 2015, 12 
in 2016, 16 in 2017, and 17 in 2018. As at June 2019, one additional case was finalized early in the 
year, and  five cases were before it.  
3.53.   Australia is a relatively frequent user of anti -dumping procedures by international comparison. 
In the period 1995 -2018, it initiated 344 anti -dumping investigations and imposed a total of 156 
anti-dumping measures, making it th e 6th most active WTO Member in the launch of investigations.52 
Although the number of investigations has been lower in recent years compared with the peak in 
the late 1990s, a higher proportion of cases currently conclude with the finding of dumping and 
material injury (Chart 3.2).  
Chart 3.2 Anti-dumping actions, 1995 -2018  
 
Source:  WTO Secretariat.  
3.54.   Since the end of 2014, Australia has imposed 37 new anti -dumping measures (Table 3.8) and 
terminated (i.e. revoked or expired) 21 anti -dumping measures (Table 3.9).53 At the end of 2018, 
83 anti-dumping measures were in force, compared with 23 measures in June 2010.54 Steel products 
accounted for more than 50% of measures in force.  
Table 3.8 Anti-dumping duties imposed, 2015 -April 2019  
Tariff line(s)  Product description  Country of export  Date 
imposed  
7324.10  Deep drawn stainless steel sinks  China  26.03.2015  
2804.61.00; 2804.69.00  Silicon metal  China  03.06.2015  
7213.91.00; 7227.90.90  Rod in coils  Indonesia and 
Chinese  Taipei  17.06.2015  
7306.30.00; 7306.50.00; 
7306.61.00; 7306.69.00  Hollow structural sections  Thailand  20.08.2015  
7213.10.00; 7214.20.00; 
7227.90.90; 7228.30.90  Steel reinforcing bar  Korea, Republic of;  
Singapore ; Spain ; and 
Chinese Taipei  19.11.2015  
2002.10.00  Tomatoes  Italy 11.02.2016  
                                                
52 Australia ranks 8th among W TO Members in terms of the number of measures i mposed.  
53 One measure affecting exporters in, e.g. four countries is counted as four measures.  
54 Productivity Commission, Trade and Assistance Review 2017 -18, page 74.  
05101520253035404550
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Anti-dumping initiations Anti-dumping measuresChart 3.2  Australia's anti -dumping actions, 1995 -2018
(Number of actions)
Source:   WTO Secretariat.WT/TPR/S/ 396 • Australia  
 
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  Tariff line(s)  Product description  Country of export  Date 
imposed  
7214.20.00; 7228.30.90: 
7213.10.00; 7227.90.10; 
7227.90.90; 7228.30.10; 
7228.60.10  Steel reinforcing bar  China  13.04.2016  
7213.91.00; 7227.90.90  Rod in coils  China  22.04.2016  
7215.90.00; 7215.50.90; 
7222.30.00; 7228.30.10; 
7228.60.10; 7228.60.90  Chrome -plated steel bars  Romania  07.09.2016  
7325.91.00; 7326.11.00; 
7326.90.90  Grinding balls  China  09.09.2016  
4802.56.10  A4 copy paper  Brazil, China, Indonesia 
and Thailand  19.04.2017  
8309.90.00  Resealable can end closures  Malaysia, Philippines and 
Singapore  24.03.2017  
7604.10.00; 7604.21.00; 
7604.29.00; 7608.10.00; 
7608.20.00; 7610.10.00; 
7610.90.00  Aluminium extrusions  Malaysia and Viet  Nam 27.06.2017  
7210.49.00; 7212.30.00; 
7225.92.00; 7226.99.00  Zinc-coated (galvanized) steel  India, Malaysia and 
Viet Nam 16.08.2017  
9032.89.80  Cooling tower water treatment 
controllers  United States  28.07.2017  
7312.10.00  Certain wire rope South Africa  18.12.2017  
7213.10.00; 7214.20.00; 
7227.90.10; 7227.90.90; 
7228.30.10; 7228.30.90; 
7228.60.10  Steel reinforcing bar  Greece, Indonesia, 
Spain, Chinese Taipei 
and Thailand  07.03.2018  
4802.56.10  A4 copy paper  Finland ; Korea , Republic 
of; Russian Federation ; 
and Slovak Republic  10.04.2019  
Source:  Anti-Dumping Commission.  
Table 3.9 Anti-dumping duties terminated, 2015 -April 2019  
Tariff line(s)  Product description  Country of export  Date 
terminated  
2836.30.00  Sodium hydrogen carbonate 
(sodium bicarbonate)  China  19.02.2015  
3824.40.00  Silicone emulsion concrete  
admixtures  United States  13.04.2015  
2003.10.00  Preserved mushrooms  China  04.05.2015  
8504.22.00; 8504.23.00  Power transformers  Viet Nam  19.11.2015  
3904.10.00  Polyvinyl chloride homopolymer 
resin Japan ; Korea , Republic 
of; and United States  01.01.2016  
2710.11.80; 2710.19.80  
3824.90.20; 3824.90.30  
2710.91.80; 2710.99.80  Biodiesel  United States  19.04.2016  
7213.91.00; 7227.90.90  Rod in coils  Indonesia  17.06.2015  
7208.25.00; 7208.26.00  
7208.27.00; 7208.36.00  
7208.37.00; 7208.38.00  
7208.39.00; 7208.53.00  
7208.54.00; 7208.90.00  
7211.14.00; 7211.19.00  Hot-rolled coil steel  Japan ; Korea , Republic 
of; and Malaysia  20.12.2017  
7208.40.00; 7208.51.00  
7208.52.00; 7225.40.00  Hot-rolled plate steel  China ; Indonesia ; Japan ; 
and Korea , Republic of  19.12.2018  
8708.70.91; 8708.70.99  
8716.90.00  Aluminium road wheels  China  22.11.2018  
7210.61.00  Aluminium zinc -coated steel  Korea , Republic of  05.08.2018  
0806.20.00  Dried currants  Greece  14.01.2019  
2002.10.00  Tomatoes, prepared and 
preserved  Italy 16.04.2019  
7308.20.00; 7308.90.00  
8502.31.00  Wind towers  Korea , Republic of  16.04.2019  
Source:  Anti-Dumping Commission.  WT/TPR/S/ 396 • Australia  
 
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  3.55.   Due to the close relationship between Australia and New Zealand and a joint competition 
framework between the two countries, imports from New Zealand covered by the ANZCERTA are not 
subject to anti -dumping action in Austral ia. However, countervailing duty actions may still be taken.  
3.56.   In the WTO, Australia ranks 4th among the Members that impose countervailing measures , 
with a total of 15 measures notified at the end of 201 8. Six new measures came  into effect in the 
period und er review  (Table 3.10). No new countervailing duties have been imposed since 
August  2017. However, three investigations were initiated in 2018.  
3.57.   The Productivity Commission is Australia's investigating authority for the imposition of 
safeguard measures. No investigations were conducted in the period under review. At the end of 
2013, Australia notified the WTO that the Commission had conducted two inquiries relating to 
imports of certain processed fruit products and canned tomatoes, and had concluded that the  
imposition of safeguard measures were not warranted.55 
Table 3.10 Countervailing duties imposed, 2015 -19 
Tariff line(s)  Product description  Country of 
export  Date imposed  
7324.10  Deep drawn stainless steel si nks China  26.03.2015  
2804.61.00; 2804.69.00  Silicon metal  China  03.06.2015  
7325.91.00; 7326.11.00; 
7326.90.90  Grinding balls  China  09.11.2016  
4802.56.10  A4 copy paper  China  19.04.2017  
7604.10.00; 7604.21.00; 
7604.29.00; 7608.10.00; 
7608.20.00; 7610.10.00; 
7610.90.00  Aluminium extrusions  Malaysia  27.06.2017  
7210.49.00; 7212.30.00; 
7225.92.00; 7226.99.00  Zinc-coated (galvanized) steel  India 16.08.2017  
Source:  Anti-Dumping Commission.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.58.   In general, an export declaration must be completed for exports of goods valued at more than 
AUD 2,000. Goods that require an export permit must be declared regardless of their value. 
Declarations may be lodged electronically in  the ICS, or presented in hard copy (Form B957) to an 
ABF office. The declaration is submitted together with evidence -of-identity documents. The ABF does 
not charge any fees for the processing of export declarations. It verifies that the transaction does 
not involve the export of prohibited goods, and that appropriate approval has been obtained for the 
exportation of restricted goods. For agricultural goods , in particular , a number of controls are in 
place to ensure that exported commodities meet the exigen cies of overseas markets. The 
Department of Agriculture established an Export Documentation System to generate export 
documents, such as export permits and certificates and related documents required by importing 
countries, notably for dairy, eggs, grains,  horticulture, meat, inedible meat products, seafood, skins 
and hides, and wool.  
3.2.2   Taxes, charges, and levies  
3.59.   Australia does not, as a general rule, apply export duties on goods shipped from Australia. 
However, as noted in Section 3.1.5.6, levies are imposed  on many primary products, and on 
commodities that are exported, to fund research and marketing activities, etc. Fees charged by the 
Department of Agriculture for services rendered follow the Department's charging guidelines, and 
are established on a cost -recovery basis. The Department of Agriculture implemented a remission 
programme between 2015 and 2017 to reduce accumulated reserves.56 This programme has now 
                                                
55 WTO documents G/SG/N/9/AUS/3; and G/SG/N/9/AUS/4, 6 January 2014.  
56 The programme reduced, for example, the cost of electronically lodged export certificates from 
AUD 49 to AUD 12.  WT/TPR/S/ 396 • Australia  
 
- 60 - 
 
  ceased. The Department is currently reviewing all export certification charges, and expects to 
implement new prices towards the end of 2020.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.60.   Australia's export controls reflect a number of factors, notably international commitments it 
undertook regarding the non -proliferation of nuclear materials, sal es of military and dual -use goods 
and technologies, counter -terrorism measures, cultural heritage, and the protection of endangered 
animals and plants (Table 3.11). In addition, as mentioned above, various agricultural and food 
products are subject to cont rols and certification to meet requirements in importing markets.  
Table 3.11 Exports subject to licensing or other restrictions, 2019  
Item  Justification  Measure  
Asbestos and certain goods 
containing asbestos  Community 
protection  Asbestos, and certain goods containing asbestos, 
require export permission granted by the minister 
responsible for the Work Health and Safety Act, 2011  
Australian native animals 
and plant species  Animal welfare  An export permit from the Department of the 
Environment and Energy is required, except for items 
detailed on the List of Exempt Native Specimens . The 
exemption d oes not extend to live native animals and 
plants  
Biological agents  Community 
protection  A full listing of controlled agents and equipment is 
included on the  Defence and Strategic Goods List   
Cat and dog fur products  Animal welfare  Prohibited unless permission has been obtained from 
the Minister for Home Affairs or an authorized officer  
Certain chemical compounds  Community 
protection  The Defence and Strategic Goods List  enumerates 
controlled chemicals and related equipment. The 
Defence Export Controls website  provides additional 
information on the export of certain chemical 
compounds  
Credit cards – counterfeit  Community 
protection  Written permission must be obtained from the Minister 
for Home Affairs or an authorized person  
Cultural heritage goods  International 
commitments 
(UNESCO)  The National Cultural Heritage Control List details 
objects that cannot be exported (Class  A) and objects 
for which export permits may be issued (Class  B)  
Defence and strategic goods  Community 
protection  Goods on the Defence and Strategic Goods List  may not 
be exported unless permission has been granted by the 
Minister for Defence or an authorized person. The 
Department of Defence administers export  permits for 
the listed goods (see the Defence Export Controls  
website)  
Endangered animal and 
plant species  International 
commitment 
(CITES)  CITES -listed species generally require an export permit 
issued by the Department of the Environment and 
Energy. Further regulations or restrictions, administered 
by the Department for Agriculture, apply to exports of 
live animals and plants  
Explosives, plastic  Community 
protection  Permission is required from the Department of Defence 
to export plastic explosives  
Firearms and firearms parts, 
accessories and ammunition  Community 
protection  Certain firearms and related goods are listed on the 
Defence and Strategic Goods List and require an export 
permit from the Department of Defence prior to 
exportation or a restricted goods permit issued by the 
ABF 
Hazardous waste  International 
commitments 
(Basel 
Convention, and 
OECD Council 
Decision C(92)39)  Prohibited unless permission has been issued by the 
Minister for the Environment or an authorized person. 
The type of permit depends on the country of 
destination  
Human body fluids, organs 
and other tissue  Public health or 
safety concerns  Permis sion may be granted by the Therapeutic Goods 
Administration. Human remains may be exported 
without a permit  
Nuclear material  Community 
protection  Export permits for nuclear material are administered by 
the Department of Industry, Innovation and Science  WT/TPR/S/ 396 • Australia  
 
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  Item  Justification  Measure  
Ozone depleting 
substances (ODSs) /synthetic 
greenhouse gases (SGGs)  International 
commitments  Exportation of certain ODS s and SGG s is prohibited 
unless a licence has been granted by an authorized 
person at the Department of the Environment and 
Energy, as a delegate of the responsible minister. The 
licence requirement does not apply in certain 
circumstances  
Pesticides and other 
hazar dous chemicals  Public health or 
safety concerns  Permission may be granted by the Minister for 
Agriculture, or an authorized person, if certain 
conditions are met  
Pornography and 
objectionable material  Community 
protection  Including, but no t limited to , material that may be 
refused classification under the National Classification 
Code and the Classification (Publications, Films and 
Computer Games) Act , 1995. The Director of the 
Classification Board may grant permission to export 
objectionable  goods in strictly limited circumstances  
Precursor substances  Public health and 
safety concerns  Precursor substances listed in Schedule 9 of the 
Customs (Prohibited Exports) Regulations , 1958 may 
not be exported without export permission from the 
Office of Drug Control  
Prescription medicines  Public health and 
safety concerns  Prescription medicines subsidized under the 
Pharmaceutical Benefits Scheme may not be exported, 
except for reasonable amounts for personal use 
Radioactive substances  Community 
protection  High-activity radioactive sources prohibited from export 
are listed in Schedule 7A of the Customs (Prohibited 
Exports) Regulations , 1958 
Rough diamonds ( Kimberley 
Process Certification Scheme 
(KPCS)) International 
commitments  Prohibited unless the diamonds are transported in a 
tamper -proof container, exported from a country 
participating in the KPCS, and accompanied by a valid 
KP certificate  
Sanctioned 
countries/entities  Sanctions 
imposed by the 
UNSC and/or 
Australian 
autonomous 
sanctions  Permits to trade sanctioned goods with sanctioned 
countries are administered by the DFAT 
Security Sensitive 
Ammonium Nitrate (SSAN)  Community 
protection  Prohibited unless permission has been granted by the 
relevant state or territory authority. Some forms of 
SSAN may also require export permission from the 
Department of Defence  
Suicide devices  Public health and 
safety concerns  Permission to export devices and documents relating to 
suicide will not be granted under any circumstances  
Toothfish  Protected under 
international 
instrument 
through the 
Commission for 
the Conservation 
of Antarctic 
Marine Living 
Resources, to 
protect against 
illegal poaching  Prohibited unless permission has been granted by an 
authorized officer from the Australian Fisheries 
Management Authority  
Viable material derived from 
human embryo clones   Prohibited unless permission has been granted by the 
Minister for Health or an authorized person at the 
National Health and Medical Research Council  
Wine and brandy  To assist 
operators meet 
international 
regulatory 
requirements, 
under Wine 
Australia 
Regulations  Requests to export consignments of over 100 litres of 
wine, brandy, grape spirit and wine -derived products 
must be addressed to Wine Australia  
Source:  Information provided by the authorities; and ABF, Prohibited Goods . Viewed at: 
https://www.abf.gov.au/importing -exporting -and-manufacturing/prohibited -goods/list -of-items# . WT/TPR/S/ 396 • Australia  
 
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  3.61.   Australia is a member of  the Nuclear Suppliers Group, th e Missile Technology Control Regime, 
the Australia Group, and the Wassenaar Arrangement. The relevant export control regulations are 
administered by the Department of Defence. Goods, software and technology that are regulated 
when exported, supplied, broke red or published are enumerated on the Defence and Strategic Goods 
List (DSGL).57 A permit is normally required for export items included on the DSGL. The DSGL reflects 
Australia's membership in the international non -proliferation and export control regimes , as well as 
Australia -specific restrictions on exports of explosives and firearms.  
3.62.   As with imports, Australia applies economic sanctions, whether mandated by the UNSC or 
additional Australia -specific sanctions, that affect export transactions with certain  countries or 
entities. Measures include restrictions on exports of goods and services, targeted financial sanctions, 
and travel bans.58 
3.63.   An initiative to consolidate and streamline export -related requirements for agricultural 
commodities and food products i s currently underway. A review conducted in 2015 of the existing 
legal framework, i.e. the Export Control Act, 1982, the Australian Meat and Live -stock Industry Act, 
1997, and various orders and regulations, found scope for improvement. Discussions are mov ing 
forward on the basis of the Export Control Bill, 2017 and draft Export Control Rules. The aim is to 
have a new legal regime in place by 1 April 2020.  
3.2.4   Export support and promotion  
3.64.   The Export Market Development Grants (EMDG) scheme provides support to bu sinesses with 
an annual turnover of less than AUD 50 million, by partly reimbursing their expenses on export 
promotion. The scheme is administered by Austrade and based on the Export Market Development 
Grants Act, 1997, last amended in 2016, and the Export  Market Development Grants Regulations, 
2018.59 Activities eligible for support include participation in trade fairs abroad, digital advertising, 
airfares, visa fees, marketing collateral, and fees paid to marketing consultants. Exporters may file 
claims fo r reimbursement themselves, or use a consultant to prepare their applications. Most grants 
are paid in the year following the financial year in which the expenditures occurred.  
3.65.   The reimbursement under the EMDG scheme amounts to 50% of the eligible expenses  above 
AUD 5,000, as long as the expenses total at least AUD 15,000. The maximum grant value is 
AUD 150,000, subject to available funds. An eligible recipient may receive up to eight grants. After 
two or more grants have been received, the applicants are e ither subject to an export performance 
test (Option A) or "Australian Net Benefit" requirements (Option B).  
3.66.   The annual funding of the scheme has been held at AUD 137.9 million since 2014, while 
payments have been made to an increasing number of recipients (Table  3.12). The grants paid in 
2018/19 totalled AUD 134 million, and were allocated to 3,928 recipients. In April 2019, the 
Government announced that an additional AUD 60 million would be made available over a period of 
three years, thus leading to a tot al appropriation of AUD 157.9 million for the EMDG scheme in the 
2019/20 budget, the highest appropriation in almost ten years.  
3.67.   The Trade and Export Concession Scheme (Tradex)  is administered by AusIndustry -Support 
for Business, further to the Tradex Schem e Act, 1999. The Scheme provides exporters an up -front 
exemption from customs duties and GST on goods imported into Australia and exported within 
one year (unless an extension has been approved).60 The goods must either be exported in the same 
condition as they were imported, treated or processed before exportation, or incorporated in other 
goods that are subsequently exported. Beneficiaries must hold a Tradex order before importing the 
goods. Applications for a Tradex order are submitted to the local AusInd ustry office, using a 
prescribed form, and are normally processed within a few days. In 2018/19, 1,201 Tradex orders 
were issued, and the total revenue foregone amounted to AUD 157,171.  
                                                
57 Australian Government, Defence and Strategic Goods List 2019 . Viewed at: 
https://www.legisla tion.gov.au/Details/F2019L00424 .  
58 DFAT, Sanctions regimes . Viewed at: https://dfat.gov.au/international -
relations/security/sanctions/sanctions -regimes/Pages/sanctions -regimes.aspx .  
59 The new EMDG Regul ations, issued on 2 March 2018, replaced the EMDG Regulations, 2008 as from 
1 July 2018.  
60 Tradex may not be used to import excisable goods, such as alcohol, tobacco and petroleum products.  WT/TPR/S/ 396 • Australia  
 
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  3.68.   Tradex is an alternative to the normal duty drawback arrangements admi nistered by the ABF 
under the Customs Act, 1901,  whereby customs duties may be refunded after goods have been 
exported, whether in unaltered form or treated, processed or incorporated into other goods. Duty 
drawback may be claimed from the day that the goo ds are exported, or within four years from that 
date.61 Drawback may only be claimed by the legal owner of the goods at the time of exportation 
(or a person assigned by the legal owner). It may not be claimed if the goods have been put to use 
in Australia, e.g. industrial machinery, or if the value of the goods has declined to less than 25% of 
the value at the time of importation. The GST may not be refunded through the duty drawback 
scheme. More than AUD 435 million in drawbacks were approved over the 2017/ 18 and 2018/19 
financial years. The largest claimants during this period were from the alcohol, tobacco and jewellery 
industry sectors.  
Table 3.12 Profile of EMDG applicants and recipients, by grant year, 2012 /13 to 2017/18  
 
2012/13 
grant year  2013/14 
grant  year 2014/15 
grant year  2015/16 
grant year  2016/17 
grant  year 2017/18 
grant year  
Total grant applicants  2,715  3,195  3,321  3,539  3,771  4,019  
Assessed eligible grant 
demand (AUD million)  106.6  143.6  142.2  143.1  160.7  175.1  
First-time grant applicants  842 971 1,192  1,260  1,433  1,499  
Total grant recipients  2,332  2,943  2,969  2,999  3,383  3,741  
First-time grant recipients  632 793 912 891 1,119  1,276  
Value of grants 
(AUD million)  106.6  130.3  126.5  122.7  115.3  123.5  
Average grant (AUD)  45,708  44,270  42,607  40,921  34,086  33,022  
Median grant (AUD)  30,862  33,499  32,560  32,202  32,804  31,871  
Recipients from rural and 
regional areasa 478 441 515 485 582 681 
Value of exports generated 
by grant recipients  
(AUD billion)  2.8 3.9 3.6 3.8 3.8 3.7 
Employees of recipients  59,227  62,931  59,790  57,183  66,498  69,208  
a The classification system used in classifying grant recipients as "rural and regional" changed in the 
2014/15 grant year to include any areas outside capital cities (whereas previously, large cities 
outside the capital cities were not classified as "rural and regional").  
Source:  Australian Trade and Investment Commission.  
3.69.   The TradeStart network aims at assisting small and medium -sized exporters to achieve 
long-term success in international markets . It is an extension of Austrade's own offices and 
programmes. It is delivered in partnership with state, territory and local governments, industry 
associations and chambers of com merce, and thus combines local assistance with direct access to 
Austrade's services and overseas network. In mid -2019, the network included 34 TradeStart 
advisers, located in offices across Australia. Austrade currently has 79 offices in countries and 
territories overseas.  
3.70.   The Landing Pads programme was introduced to provide a cost -effective option for market -
ready startups and scale -ups to land and expand in major global innovation hubs. In the five landing 
pads established to date (San Francisco, Tel Aviv , Shanghai, Berlin and Singapore), enterprises are 
offered 90 -day residency in a co -working space to facilitate in -market business development, 
introduction to investors and mentor networks, and strategic partnership opportunities; business 
services and in -market learning from local and international experts; access to a curated community 
that supports Australian entrepreneurs; and post -residency assistance to promote the continued 
growth of the enterprise.62 As at 5 September 2019, 254 companies had accesse d Landing Pads 
(173 in the up -to-90-day programme and 81 in bootcamps). Boot -camps are sector -focused 
delegations delivered in collaboration with Australian ecosystem partners, which bring start -ups to 
Landing Pads for shorter intensive programmes that com bine educational and market -testing 
elements.  
                                                
61 A 12-month time -limit from the day of export applies to tobacco and tobacco products.  
62 Australian Trade and Investment Commission, About Landing Pads . Viewed at: 
https://www.austrade.gov.au/LandingPads/about -landing -pads. WT/TPR/S/ 396 • Australia  
 
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  3.2.5   Export finance, insurance, and guarantees  
3.71.   Export Finance Australia, until 1 July 2019 known as the Export Finance and Insurance 
Corporation (Efic), is the wholly owned export credit agency of the Government. Th e agency is 
defined as a corporate Commonwealth entity under the Public Governance, Performance and 
Accountability (PGPA) Act, 2013, and reports to the Minister for Trade, Tourism and Investment 
(Trade Minister). Export Finance Australia works closely with  banks, other financial institutions and 
partners such as the DFAT and Austrade, to provide financing for Australian exports and overseas 
infrastructure development, including loans, bonds, guarantees, and insurance against non -payment 
arising from commerc ial or political risks.63 It provides financial solutions, on commercial market -
based terms, to small and medium -sized enterprises (SMEs), sovereigns and large businesses across 
a range of industries, where normal commercial sources of finance are unavailab le (referred to as 
the "market gap"). The Government guarantees the debt of Export Finance Australia. However, this 
guarantee has never been called.  
3.72.   The legal basis for Export Finance Australia remains the Efic Act, 1991.64 In addition, as a 
corporate Commo nwealth entity governed by the PGPA Act, its key priorities and objectives are 
detailed in a Statement of Expectations issued by the Trade Minister (Section 34). The most recent 
of these was published on 3 April 2019. The scope of the agency's operations h as been enlarged in 
recent years.  
3.73.   The Efic Act was amended in March 2015 to allow for direct lending to exporters of all goods, 
not only "capital goods" as legislated previously. The aim was to better facilitate, in particular, 
smaller businesses' access t o Export Finance Australia's services in a more cost -effective manner. A 
competitive neutrality provision was also inserted in the Act (Schedule 2) to ensure that the 
enhanced lending flexibility would not bring Export Finance Australia into direct competi tion with the 
private market.65 
3.74.   The Efic Act was amended again in September 2017, to expand Export Finance Australia's 
business opportunities to include financing of tourism services provided by persons not ordinarily 
resident in Australia, online businesse s with customers outside Australia, exports of intellectual 
property and related rights, and investment outside Australia when a benefit flows back (directly or 
indirectly) to Australia.66 
3.75.   In April 2019, Parliament passed legislation amending the Efic Act t o provide Export Finance 
Australia with new powers to finance overseas infrastructure development, and providing it with an 
additional AUD 1 billion in callable capital.67 The changes enable Export Finance Australia to finance 
more and larger projects that have a broad national benefit for Australia. The Government directed 
Export Finance Australia to focus particularly on the infrastructure needs of Pacific island countries 
(including Timor -Leste), and more broadly in the Indo -Pacific region.  
3.76.   Export Finance  Australia operations are conducted under the Commercial Account or the 
National Interest Account. The agency retains all margins and commissions for activities under the 
Commercial Account, but also carries all risks and losses. Its total gross exposures under its 
Commercial Account amounted to AUD 1,973 million as at 30 September 2019, of which 
AUD 1,252  million related to export finance loans, AUD 250 million to medium -term insurance, 
AUD 389 million to guarantees, and AUD 82 million to bonds. In the mos t recent financial year for 
which information is available (2018/19), Export Finance Australia provided funding to 
                                                
63 Export Finance Austr alia also provides its financial expertise and back -office assistance to other 
government agencies. It concluded Service Level Agreements with the Northern Australia Infrastructure 
Facility, the National Housing Finance and Investment Corporation, the Indi genous Entrepreneurs Capital 
Scheme and, more recently, the Australian Infrastructure Financing Facility for the Pacific.  
64 The text of the law as amended and in force since 15 September 2017 is available at: 
https://www.legislation.gov.au/Details/C2019C00169 . 
65 The Export Finance and Insurance Corporation Amendment (Direct Lending and Other Measures) 
Act, 2015, No. 18, 2015. Viewed at:  https://www.legislation.gov.au/Details/C2015A00018 . 
66 The Export Finance and Insurance Corporation Amendment (Support for Commonwealth Entities) Act , 
2017, No. 100, 2017. Viewed at:  https://www.legislation.gov.au/Details/C2017A00100 . 
67 The Efic Amendment (Support for Infrastructure Financing) Bill, 2019.  WT/TPR/S/ 396 • Australia  
 
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  107 businesses for a total amount of AUD 378 million. SMEs accounted for 92% of all transactions.68 
Operations on the Commercial Account are f inancially self -sustained. The Commercial Account 
reported a post -tax profit of AUD 25.8 million in 2018/19, and its accumulated profits since 1991 
total over AUD 600 million. Export Finance Australia's loans and rescheduled debts are largely 
denominated i n foreign currencies, primarily in US dollars.  
3.77.   The agency may refer particularly large projects, or new business that would increase 
significantly its existing exposure in certain countries, to the Trade Minister for consideration under 
the National Intere st Account. The Trade Minister may also direct the agency to support projects 
that s/he considers to be in the national interest under this Account. This can include transactions 
under the Australian Infrastructure Financing Facility for the Pacific (AIFFP ) and the Defence Export 
Facility. The Government assumes all risks and carries all losses related to this Account, but also 
receives all income from these transactions. Export Finance Australia's exposure under the National 
Interest Account totalled AUD 5 34 million as at 30  June 2019, and concerned almost exclusively 
positions with three countries.69 Export Finance Australia provided one facility under this Account in 
2018/19, and more transactions are expected to be financed in the next year.  
3.78.   Export Financ e Australia has a central role in administering the Defence Export Facility of the 
Australian Government, a programme launched as part of the Government's Defence Export 
Strategy in January 2018. This programme may provide financing totalling USD 3 billion  over a 
ten-year period. The Facility enables Export Finance Australia to refer applications for such financing 
to the Trade Minister for consideration under the National Interest Account when it is unable to use 
the Commercial Account for the transaction (in whole or in part).  
3.79.   Export Finance Australia also has a central role in administering the AIFFP, an AUD 2 billion 
development -focused infrastructure -financing facility for the Pacific region and Timor -Leste. Like the 
Defence Export Facility, AIFFP financing is delivered through Export Finance Australia's National 
Interest Account.  
3.80.   The Efic Act requires certain export transactions to include Australian content or benefits 
accruing to Australia, to qualify for financing from Export Finance Australia. The Statement of 
Expectations also requires that there is significant Australian content and/or benefit attributable to 
domestic and overseas resource projects supported by Export Finance Australia. Under the 
Australian benefit policy applied by Export Fin ance Australia, the assessment of national 
content/benefit in a proposed project can include factors such as Australian content or inputs, 
Australian (including SME) participation in supply chains, access to new markets for Australian 
businesses, more Aust ralian jobs, payments or dividends, or other financial proceeds from overseas 
to Australia. Export Finance Australia conducts its own due diligence (including seeking 
representations from applicants) to verify these requirements. Such assessments are rando mly and 
periodically audited to verify data and ensure compliance with relevant obligations.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.81.   The 2017 Tax Expenditures Statement lists 289 tax expenses , and provides an estimate of 
the dollar value or orde r of magnitude of the benefit to taxpayers.70 The capital gains (main residence 
exemption – discount component) taxpayers were the main recipients of tax expenditures.71 The 
total Commonwealth government tax revenue amounted to  AUD 427 .2 billion in 2017/18  
(Table  3.13). The goods and services tax (GST) was the main indirect tax component (15%), 
followed by excise taxes (5.5%).  
                                                
68 Efic launched an online portal (EficDirect) to facilitate the provision of unsecured Small Business 
Export Loans in 2015/16. The portal is open to businesses with an annual turnover of between AUD 250,000 
and AUD 10 million that have been trading for at l east two years.  
69 These were the financing of a liquefied natural gas project in Papua New Guinea (AUD 259.6 million), 
and rescheduled debt exposures to Iraq and Indonesia.  
70 In the 2017 Tax Expenditure Statement , 143 estimates were not available out of 28 9 expenditures.  
71 The Treasury, Tax Expenditures Statement, 2017 . Viewed at: 
https://treasury.gov.au/sites/default/files/2019 -03/2017 -TES.pdf . WT/TPR/S/ 396 • Australia  
 
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  Table 3.13 Structure of the Commonwealth government tax revenue, 2012/13 -2017/18  
(AUD million and %)   
2012/13  2013/14  2014/15  2015/16  2016/17  2017/18  
Total Commonwealth 
government tax revenue  337,338  350,230  355,232  369,257  388,576  427,237  
 
(% of total)  
Taxes on income  71.7 70.9 72.8 71.8 72.4 73.1 
Income taxes levied on 
individuals  48.2 48.6 51.6 52.0 51.2 49.8 
Personal income tax  44.1 44.4 47.4 46.9 46.3 45.3 
Government health insurance 
levy 2.9 2.9 3.0 3.9 3.9 3.7 
Fringe benefits tax  1.2 1.2 1.2 1.2 1.0 0.9 
Income taxes levied on 
enterprises  23.0 21.9 20.7 19.3 20.7 22.9 
Company income tax  20.8 20.1 19.1 17.4 18.6 20.3 
Income tax paid by 
superannuation funds  2.2 1.8 1.7 1.8 2.1 2.6 
Income taxes levied on 
non-residents  0.4 0.4 0.5 0.5 0.5 0.5 
Dividend withholding tax  0.1 0.1 0.1 0.1 0.1 0.1 
Interest withholding tax  0.4 0.4 0.4 0.4 0.4 0.4 
Taxes on employers ' payroll 
and labour force  0.2 0.2 0.2 0.2 0.2 0.3 
Taxes on property  0.0 0.0 0.0 0.0 0.0 0.0 
Taxes on the provision of 
goods and services  25.1 25.8 26.0 26.3 25.7 24.9 
General taxes (sales taxes)  0.3 0.4 0.4 0.4 0.4 0.4 
GST 14.5 15.2 15.6 16.0 15.8 15.0 
Excises and levies  7.8 7.5 6.9 6.1 5.8 5.5 
Crude oil and liquefied 
petroleum gas  5.3 5.1 5.0 4.9 4.7 4.5 
Other excises  2.3 2.3 1.7 1.0 0.9 0.8 
Agricultural production 
taxes  0.1 0.1 0.1 0.1 0.1 0.1 
Levies on statutory 
corporations  0.1 0.1 0.1 0.1 0.1 0.1 
Taxes on international trade  2.4 2.7 3.1 3.8 3.7 3.7 
Taxes on financial and capital 
transactions  0.0 0.0 0.0 0.0 0.0 0.4 
Taxes on the use of goods 
and performance of activities  3.0 3.0 1.0 1.7 1.8 1.7 
Taxes received from public 
corporations  0.6 0.5 0.1 0.1 0.2 0.2 
Taxes received from other levels 
of government  0.0 0.0 0.0 0.0 0.0 0.0 
Source:  Australian Bureau of Statistics, 5506.0: Taxation statistics, Australia, 2017 -18. Viewed at: 
https://www.abs.gov.au/AUSSTATS/abs@.n sf/ViewContent?readform&view=ProductsbyCatalogue&A
ction=Expand&Num=6.4 . 
3.82.   In November 2016, the Government commissioned an independent review into the operation 
of the petroleum resource rent tax (PRRT). On 2 November 2018, the Treasurer released the 
Government 's final response to the review , and announced key changes to the PRRT. The first 
tranche of changes have been implemented, in particular the removal of onshore projects from the 
PRRT regime and a reduction in uplift rates that apply to certain c ategories of carried -forward 
expenditure from 1 July 2019, while respecting existing investments.  
3.83.   Corporate tax rates were changed for small and medium sized businesses in the period under 
review. The Tax Laws Amendment (Small Business Measures No. 1) Act , 2015 lowered the tax rate 
for small business entities from 30 % to 28.5 %, affecting companies with an aggregated annual 
turnover of below AUD 2 million.  In 2017, the Government introduced the Treasury Laws 
Amendment (Enterprise Tax Plan Base Rate Entities)  Bill. Under this Bill, only corporate entities who 
meet the aggregated turnover threshold and have no more than 80% base rate entity passive 
income are eligible for the lower corporate tax rate. The date of effect is from the 2017 /18 income 
year, and the Bill received Royal Assent on 31 August 2018 . WT/TPR/S/ 396 • Australia  
 
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  3.84.   The Treasury Laws Amendment (Enterprise Tax Plan) Act , 2017 implemented tax cuts for 
companies with an aggregate annual turnover of below AUD 50 million . The Act reduced t he tax rate 
for companies with an aggre gate annual turnover of less than AUD 10 million to 27.5 % in 2016 /17. 
The turnover threshold to qualify for the lower tax rate was raised to AUD 25 million in 2017 /18 and 
AUD 50 million in 2018 /19. In addition, under the Act, t he unincorporated small business tax 
discount rate was made available to businesses with an aggregate annual turnover of less than 
AUD 5 million  (up from AUD 2 million ), and was increased from 5 % to 8% (up to a cap of AUD 1,000) 
in 2016/17. Furthermore, t he Act also increased the small business entity turnover threshold from 
AUD 2 million to AUD 10 million, giving these businesses access to a range of tax concessions . The 
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act , 2018 amended the  tax law 
to specify that only businesses that are not passive investment companies qualify for the lower 
company tax rate.  
3.85.   Australia provides production assistance in the form of grants, concessional loans, tariff 
concessions and other tax incentives. Its  most recent  notification to the WTO Committee on 
Subsidies and Countervailing Measures listed 38 federal programmes  (Table A3.1).72 Support under 
the notified non-agricultural schemes are mainly delivered by means of grants. Other forms of 
non-agricultural  subsidies include funding agreements; concessional loans; tax waivers ; duty 
concessions; payroll tax rebate s; rental assistance ; and vouchers . Support was provided to 
environmental protection ; innovation; manufacturing; passenger motor vehicles; regional 
development; aluminium; textiles, clothing and footwear; and vocational training. The Government 
also listed 95 programmes at state and territory level . Australia maintains sunset clauses for several 
incentives notified to the WTO. Some of these programmes will terminate on a specific date or were 
concluded during the period under review . 
3.86.   According to the Productivity Commission, tariff and budgetary assistance to industry was 
around AUD 14.4 billion in gross value terms  in 2017 /18, comprising AUD 2.3 billion in gross tariff 
assistance, AUD 4.8 billion in budgetary outlays, and AUD 7.3 billion in tax concessions .73 Support 
for R&D and small business represent ed over 70 % of measured budgetary assistance . Initiatives 
targeting small business, such as capital gains tax discounts, simplified depreciation rules , and lower 
company tax rates , represented around 38 % (AUD 4.6 billion) of measured budgetary assistance. 
Business R&D support accounted for  just under 34 % of budgetary assistance. The majority is i n the 
form of the demand -driven R&D Tax Incentive ( AUD 2.8 billion) , and the remainder is for funding 
for research institutions, including rural research. Industry -specific assistance, such as a range of 
selective grants and concessions for the automotive,  film, ethanol and finance industries, represents 
the third largest group of measured assistance.  
3.87.   Some budgetary measures provide d financial assistance directly to firms  in 2017/18 , such as 
the Automotive Transformation Scheme ( AUD 86.6 million) and the R&D Tax Incentive 
(AUD 2.8 billion), while other measures indirectly  benefit ed industr ies via intermediate 
organi zations , such as the Rural Research and Development Corporations ( AUD 320 million) and the  
Commonwealth Scientific and In dustrial Research Organisation  (AUD 547 million).  
3.88.   In its most recent annual reviews, the Productivity Commission noted a move towards the 
government provision of project finance as a form of industry assistance. Important new 
developments include the AUD 5  billion Northern Australia Infrastructure Facility  (NAIF) ; the Defence 
Export Strategy (AUD 4 billion), including a facility administered by Export Finance Australia; the 
National Water Infrastructure Loan Facility (AUD 2 billion); and, in 2019, the Austr alian Business 
Securitisation Fund . In making investment decisions, the NAIF Board must ensure that the returns 
cover the administrative and borrowing costs of the Commonwealth Government; the loans are 
expected to be repaid. As at 12 November 2019, 14 inv estment decisions and 1 conditional approval 
made by the NAIF are forecast to generate AUD 3.7 billion in public benefit for Northern Australia , 
which includes a forecast of in excess of 4,300 jobs (in construction during operations).  
                                                
72 WTO document G/SCM/N/ 343/AUS/Rev.1 , 14 October 2019. 
73 Productivity Commission, Trade and Assistance Review 2017 -18. Viewed at: 
https://www.pc.gov.au/research/ongoing/trade -assistance/2017 -18. WT/TPR/S/ 396 • Australia  
 
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  3.3.2   Standards and other t echnical requirements  
3.89.   The Mutual Recognition Agreement (MRA)  Act, 1992 allows goods sold in one state or territory 
to be sold in another without needing to meet further requirements.  Several g overnment agencies 
are responsible for monitoring and regulating  the safety of different types of products. Product safety 
regulation for general consumer products is a shared responsibility between the Australian 
Competition and Consumer Commission (ACCC )74 and the states and territories  agencies, such as  
Australian Capital Territory Fair Trading (Department of Justice and Community Safety, Office of 
Regulatory Services); Consumer Affairs Victoria (Department of Justice); New South Wales Fair 
Trading; Queensland Fair Trading; South Australia Consumer and B usiness Services; Tasmania 
Consumer Affairs and Fair Trading (Department of Justice); and Western Australia Consumer 
Protection (Department of Commerce).  
3.90.   Australia 's peak standards and conformance organi zations are the National Measurement 
Institute , responsible for biological, chemical, legal, physical and trade measurement; Standards 
Australia , an independent, not-for-profit national standards development body ; the National 
Association of Testing Authorities Australia (NATA) , an independent, not -for-profit national 
accreditor of conformity assessment bodies involved in te sting and calibration and other areas ; and 
the Joint Accreditation System of Australia and New Zealand (JAS -ANZ), a bi -national government 
accreditor of certification bodies, inspection bodies and validation and veri fication bodies.  
3.91.   The current five-year memoranda of understanding (M oUs) between  the Commonwealth 
Government ( the lead agency for which is the Department of Industry,  Innovation and  Science 
(DIIS) ) and Standards Australia and the NATA  were signed in November 2018 and August 2018,  
respectively. The MoUs frame the Government's policy relationship with the organi zations . The MOU 
with Standards Australia requires the development of new or amended standards , and the setting 
of priorities to be transparent , ensuring the primary decision criterion is of net benefit to the 
community .75 The MoU stipulates that Standards Australia has a policy of adopting international 
standards wherever possible , which is in line with the Code of Good Practice  for the Preparatio n, 
Adoption and Application of Standards  of the WTO Technical Barriers to Trade (TBT) Agreement 
(Annex 3) . In addition, the MoU with the NATA indicates that the NATA will prepare, publish and, 
where appropriate, review its procedures, accreditation criteri a and key performance indicators to 
ensure that these conform with Australia's obligations in the WTO TBT Agreement.76 
3.3.2.1   Standards and technical regulations  
3.92.   As at  November 2019, Standards Australia had published approximately 5,400 Australian 
Standards . In addition,  approximately one third of Standards Australia 's catalogue is reference d in 
Commonwealth, state and territory regulation s. Mandatory product safety requirements, often based 
on these standards (including some on labelling) , affected 42  consumer items.77 These requirements 
apply to the Commonwealth territory upon imposition , decided by the  relevant  Australian 
government  minister.  When considering whether to introduce a technical regulation, the 
Commonwealth Government conducts  research and consults with industry and consumer 
representatives to develop a regulation impact statement (RIS). The RIS weighs up evidence of 
current market forces influencing the product and market; causes of potential dangers; options for 
reducing the risk for consumers; and the potential economic and social impact of regulatory and 
non-regulatory measures.78 
                                                
74 The ACCC p erforms its product safety work in line with t he priorities set annually . 
75 Memorandum of Understanding between the Commonwealth of Australia, as represented by the 
Department of Industry, Innovation and Science, and Standards Australia. Viewed at: 
https://www.industry.gov.au/sites/default/files/2018 -12/standards -australia -memorandum -of-understanding -
13-november -2018.pdf . 
76 Memorandum of Understanding between the Commonwealth of Australia, as represented by the 
Department of Industry, Innovation and Science, and  National Association of Testing Authorities, Australia . 
Viewed at:  
https://www.nata.com.au/phocadownload/government/MOU_Commonwealth_of_Australia_and_NATA.pdf .  
77 ACCC, Mandatory standards . Viewed at: https:/ /www.productsafety.gov.au/product -safety -
laws/safety -standards -bans/mandatory -standards . 
78 ACCC, About mandatory standards.  Viewed at: https://www.productsafety.gov.au/product -safety -
laws/safety -standards -bans/mandatory -standards/about -mandatory -standards . WT/TPR/S/ 396 • Australia  
 
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  3.93.   The ACCC annually conducts safety audits on products where there are indications of non -
compliance with specific regulations. The audits include a national series of surveys to determine 
the level of compliance in the market (including online suppliers). Audits are also conducted on 
unsafe goods that are not subject to any specific mandatory requirement.  Between July  2019 and 
June 2020, 20 products were prioriti zed to undergo surveillance and testing .79 The ACCC carries out 
the audits and, if a non -compliant product is identified, suppliers are required to remove these 
products from sale, and conduct a voluntary recall. In serious instances, the ACCC m ay take 
immediate enforcement action by issuing Infringement Notices or court action with penalties of up 
to AUD  1.1 million. Each supplier in the supply chain is responsible for compliance and ensuring 
products are safe and fit for purpose, regardless of where they may be in the supply chain, or 
whether they are domestic or overseas manufacturers, suppliers or distributors. According to the 
authorities, between 2015 and 2019 , the ACCC, together with state and territory counterparts, 
removed millions of products from sale across 198 product types for breaches of, or suspected non -
compliance with, mandatory standards and bans.  
3.94.   The Government adopted the principle that, if a system, service or product has been approved 
under a trusted international standard or  risk assessment, Australian regulators should not impose 
any additional requirements unless it can be demonstrated that there is a good reason to do so. The 
principle has been acknowledged in the Regulatory Reform Agenda and the National Innovation and 
Science Agenda. The principle is also consistent with Australia's obligations under the WTO TBT 
Agreement. To abide by this, policy officers who use standards or risk assessments in support of 
policies or programmes should select an appropriate international  version where possible. The Best 
Practice Guide to Using Standards and Risk Assessments in Policy and Regulation assists policy 
officers assess which standards or risk assessments to use to support their policy and programmes.80 
According to the authoritie s, aligning with international standards improves Australian access to 
overseas markets; reduces costs and delays for businesses; and increases the supply of reliable 
products into the Australian market.  
3.95.   In the absence of a suitable international standard,  national standards are developed, with 
transparency and consensus being two key require ments. As at November 2019, approximately 40%  
of Australian Standards  were identical to, or slightly modified adoptions of , international standards.  
3.3.2.2   Conformity assessme nt and international cooperation  
3.96.   NATA and JAS -ANZ accreditation helps to ensure that laboratories, facilities and conformity 
assessment bodies (e.g. certifiers and inspectors) have the technical capacity to perform their duties, 
which includes their abilit y to meet relevant international standards, and suitable levels of 
impartiality and competence. This provides domestic and international confidence in the safety and 
reliability of Australian goods, services and systems. The NATA is also Australia 's compliance 
monitoring authority for the OECD Principles of Good Laboratory Practice. In June 2019, there were 
3,337 NATA -accredited laboratories and facilities. There were also over 130 JAS -ANZ-accredited 
conformity assessment bodies, 145 accredited sche mes, and more than 140,000 active certificates 
carrying JAS -ANZ accreditation.  
3.97.   The NATA and the JAS-ANZ are guided by  international standards , including: ISO/IEC 
17011:2017 (Conformity assessment — Requirements for accreditation bodies); ISO 9001 (Quality 
Management Systems); ISO 14001 (Environmental Management); AS/NZS 4801 (Safety 
Management Systems) and ISO 22000 (Food Safety Management); ISO/IEC 17025 (Testing and 
Calibration); ISO/IEC 17020 (Inspection); ISO/IEC 17034 (Reference Materials Producers); I SO 
17043 (Proficiency Testing Providers); and ISO 15189 (Medical Testing).  
                                                
79 Products include aquatic toys; balloon -blowing kits; bean bags; bicycle helmets; child restraints for 
use in motor v ehicles; convertible tricycles; cosmetics and toiletries; cots (household); DEHP in children's 
plastic items; disposable cigarette lighters; hot water bottles; mini jelly cups containing konjac; miniature 
motorbikes with unsafe design features; portable sw imming pools; recovery straps for motor vehicles; toys 
containing lead and other elements; toys (projectile); toys for children up to and including 36 months of age; 
undeclared knives or cutters in stationery sets; and yo -yo water balls.  
80 DIIS, Best Pract ice Guide to Using Standards and Risk Assessments in Policy and Regulation . Viewed 
at: https://www.industry.gov.au/sites/default/files/2019 -03/best -practice -guide -to-using -standards -and-risk-
assessments -in-policy -and-regulation.pdf . WT/TPR/S/ 396 • Australia  
 
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  3.98.   The Government  has MRAs with  the Australian states and territories  (Mutual Recognition Act , 
1992), New Zealand  (Trans -Tasman Mutual Recognition Act , 1997), the European Union (1999,  
amended 2013), the European Free Trade Association (EFTA) (2000, currently being updated), and 
Singapore  (2001). It also signed an MRA with the United Kingdom, which will enter into force once 
it departs the European Union .81 
3.99.   Australia is a party to the MR As within the Asia -Pacific Economic Cooperation  for Conformity 
Assessment of Telecommunications Equipment (1999); Conformity Assessment of Electrical and 
Electronic Equipment (1999); and Conformity Assessment of Foods and Food Products (1997). The 
NATA and  the JAS-ANZ have developed a network of multilateral recognition arrangements (MLA s) 
and MRAs through international and regional fora. The NATA is an inaugural signatory to the 
International Laboratory Accreditation Cooperation MRA; and JAS -ANZ is a signa tory to the 
International Accreditation Forum MLA. Both  the NATA and the JAS-ANZ are signatories to the Asia 
Pacific Accreditation Cooperation (APAC) MRA. The APAC was formed on 1 January 2019 from the 
amalgamation of the Asia Pacific Accreditation Coopera tion (APLAC) and the Pacific Accreditation 
Cooperation (PAC). The NATA and the JAS-ANZ had previously been signatories to the APLAC and 
the PAC, respectively.  
3.3.2.3   Transparency  
3.100.   Notices of technical regulations are generally published in the Australia Government Gazette , 
and on websites of agencies  such as the Food Standards Australia New Zealand .82 In addition , 
standards and conformity assessment procedures are notified widely by e-mail alerts , in-house 
journals and other relevant Commonwealth , state, a nd territory government publications. Notices 
on some standards are also published in Standards Australia's monthly e -publication.83 Furthermore, 
information on conformity assessment procedures is published  on the NATA website and in NATA 
News.84  
3.101.   Between January 2015 and November 2019, Australia made 12 notifications under the 
WTO TBT Agreement. The majority of the notifications were under Articles 2.9.2 (proposed technical 
regulations), 2.10.1 (technical regulation urgency), 5.6.2 (proposed conformity asses sment 
procedure) and 5.7.1 (urgent measure) . In most cases , the submission all owed for a comment period 
of 60  days or more . During the review period , one specific trade concern was raised in the TBT 
Committee involv ing Australia's plain packaging measure.  
3.3.3   Sanitary and phytosanitary requirements  
3.102.   The main development in the area of sanitary and phytosanitary measures in Australia in 
the period under review was the entry into force of the Biosecurity Act, 2015, replacing the 
Quarantine Act, 1908, on 16 June 20 16.85 The new biosecurity legislation is co -administered by the 
ministers responsible for agriculture and health, and includes a variety of regulations, determinations 
and legal instruments that, for example, lay down specific conditions for the importation  and 
exportation of various commodities.86 According to the authorities, the Act provides a modern 
regulatory framework, reduces duplication, and enables more efficient and effective risk assessment 
to prevent pests and diseases from crossing Australia's bo rder. The Act is flexible by design to 
respond to changes in technology, biosecurity challenges, and the need for more adaptability to 
increasing passenger traffic and trade. As at November 2019, 117 legal instruments related to 
biosecurity had been issued , in addition to the Act itself and the two basic regulations (the Biosecurity 
Regulations, 2016 and the Biosecurity (Human Health) Regulations, 2016). Most of these legal 
                                                
81 DIIS,  Reducing techni cal barriers to trade . Viewed at: https://www.industry.gov.au/regulations -and-
standards/reducing -technical -barriers -to-trade. 
82 Australian Government, Australian Government Gazettes . Viewed at: 
https://www.australia.gov.au/about -government/publications/australian -government -gazettes . 
83 Standards Australia. Viewed at: https://www.standards.org.au/news/archive/july -2019. 
84 NATA . Viewed at: https://www.nata.com.au/media -and-events/newsletters . 
85 Australia notified its draft biosecurity legislation to the WTO in 2012. See WTO document 
G/SPS/N/AUS/298, 9 July 2012 and its addenda 1 to 3, supplemented by WTO document 
G/SPS/N/AUS/298/Add.4, 2 December  2014.  
86 The Biosecurity Regulations, 2016 are administered by the Department of Agriculture, while the 
Biosecurity (Human Health) Regulations, 2016 are administered by the Department of Health.  WT/TPR/S/ 396 • Australia  
 
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  instruments were determinations of first point of entry, i.e.  goods that may, or may  not, enter a 
specific location in Australia.  
3.103.   The Biosecurity Act, 2015 was amended in 2018, as the Biosecurity Legislation Amendment 
(Miscellaneous Measures) Bill, 2018 received Royal Assent on 31 August 2018. In addition to various 
technical revisions, t he main purposes of the amendments were to introduce new arrangements 
regarding the collection of information on the monitoring of, control of, and response to, biosecurity 
risks within Australia; to clarify the terms "commercial -in-confidence information"  and "human 
remains"; and to clarify that Australia's National Focal Point may disclose protected information to 
other member States of the World Health Organization under the International Health Regulations, 
2005. The amended Act also repealed the  Quaran tine (Validation of Fees) Act, 1985 .87 
3.104.   Australia's states and territories maintain their own legislation, and take measures to 
minimize the spread of pests and diseases that threaten livestock or crop production. The 
requirements may affect interstate trade as well as the intrastate/territory movement of animals 
and animal products, plants and plant products, and materials of quarantine concern. For example, 
based on its Plant Biosecurity Act, 2010, Victoria established zones to prevent the s pread or entry 
of certain pests and diseases, affecting the movement of fruit (Queensland fruit fly); grapes, 
grapevine material, agricultural equipment and soil (Grape Phylloxera); potatoes, potato plant 
material, agricultural equipment and soil (Potato c yst nematode); and chestnut blight host materials. 
Governed by its Livestock Disease Control Act, 1994, Victoria applies entry requirements to cattle, 
sheep, goats, pigs, deer, poultry and bees from other states and territories in Australia.88 Diseased 
livestock may, with few exceptions, only enter Victoria if a licence has been issued by the Chief 
Veterinary Officer, and all transportation of livestock must meet Australian animal welfare standards. 
Farms in Victoria running certain livestock species are req uired to have a Property Identification 
Code.89 Importation orders, i.e. restrictions on entry from other parts of Australia to prevent the 
spread of disease or pest, have been issued in relation to cucumber green mottle mosaic virus, 
pyriform scale, and to mato potato psyllid.  
3.105.   The Imported Food Control Act, 1992 and the Imported Food Control Regulations, 1993 
govern food entering Australia.90 The Act was amended in 2018, through the Imported Food Control 
Amendment Act, 2018, to strengthen the safety system fo r imported food. It affects the operation 
of the risk -based Imported Food Inspection Scheme, as it increases the importers' accountability for 
food safety and the sourcing of safe food. It also strengthens the monitoring and management of 
new and emerging food safety risks, and incident response. For certain imported food, the 
Department of Agriculture requires evidence of through -chain controls, to demonstrate that food 
safety hazards were effectively managed during production. The Department has a whole s ystem 
agreement (Food Safety Recognition Agreement) in place with the United States since April 2017, 
and it has a number of government -to-government certification arrangements with other countries 
for certain imported food. In all, 16 certification arrang ements are in place with national competent 
authorities, covering a range of high -risk foods such as seafood, beef and raw milk cheese.  
3.106.   The Biosecurity Act, 2015 and the Biosecurity Regulation, 2016 mandate the Department of 
Agriculture to review existing trade and to undertake risk analysis in response to requests to import 
goods that have never been imported into Australia, or have not previously been imported from a 
particular country or region. The risk analysis may be conducted through a regulated proc ess 
provided for in the legislation (Biosecurity Import Risk Analysis – BIRA) or through a non -regulated 
procedure (e.g. a scientific review of existing policy and import conditions, a pest -specific 
assessment, a weed risk assessment, or a biological contr ol agent assessment). If the identified 
biosecurity risks exceed the appropriate level of protection (ALOP) for Australia, goods may not be 
imported unless the proposed risk management measures reduce the risks to an acceptable level. 
Australia's risk asse ssment method has been used since 2001, and includes a risk estimation matrix 
                                                
87 Australian Government, Biosecurity Act, 2015, as amended  (730 pages) . Viewed at: 
https://www.legislation.gov.au/Details/C2019C00097/Download . 
88 Prescribed certificates completed by the owners certifying the health of their animals, vendor 
declarations and health statements must be provided to the receiver of the livestock, and the records must be 
kept for a specified period of time. Agriculture Victoria, Interstate livestock movements.  Viewed  at: 
http://agriculture.vic.gov.au/agriculture/livestock/interstate -livestock -movements . 
89 These are farms raising cattle, sheep, goats, pigs, camelids, deer, horses, poultry (more than 
50 animals), emus or ostriches (more than 10).  
90 The Act gives effect to the operation of the Imported Food Inspection Scheme, a risk -based border 
inspection an d analysis programme.  WT/TPR/S/ 396 • Australia  
 
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  that follows international principles consistent with World Organisation for Animal Health (OIE) and 
International Plant Protection Convention risk management standards. Australi a's ALOP is only 
considered achieved when the estimated risk is at or below "very low".  
3.107.   A BIRA for a good or class of goods may be initiated by the Director of Biosecurity if s/he 
believes that the criteria for the BIRA have been met, or upon instruction f rom the Minister of 
Agriculture. The Director of Biosecurity may choose to commence a BIRA, for example, upon the 
request of the government of an exporting country or of institutions and traders proposing to import 
plants, animals or other goods in circums tances where import conditions have not been established 
previously. The Director of Biosecurity must (i) outline opportunities for consultation, and prepare 
and publish an issues paper on the Department of Agriculture website when announcing the 
commencem ent of the BIRA; (ii) prepare and publish a draft BIRA report on the website, and allow 
for a public submission period of a minimum of 60 calendar days; (iii) prepare and publish on the 
website the provisional BIRA report, which must include any informatio n or submissions received, 
inputs from the scientific advisory group (where provided), and findings, including economic 
consequences, associated with the entry, establishment or spread of pest and diseases included in 
the class of goods under review; and ( iv) progress the provisional BIRA report as it becomes the 
final BIRA report, unless the Inspector General of Biosecurity is requested to review the process 
used to conduct the BIRA within 30 days of publication of the provisional report. Unless specific 
circumstances apply, the BIRA report must be finalized within 30 months from the date of publication 
of the notice that the BIRA is commencing.  
3.108.   When importing into Australia, importers of plant, animal, mineral and biological products 
are responsible for co mpliance with conditions set by the Department of Agriculture. They may use 
the Biosecurity Import Conditions (BICON) system to determine whether: a commodity is permitted 
to be imported; importation is subject to specific conditions; supporting documentat ion is required; 
the commodity must undergo treatment; or an import permit is needed. Most import permits are 
issued within 20 working days of receipt, provided the application has been completed correctly and 
the required fees have been paid in full.91 Australia's biosecurity system is based on the Biosecurity 
Act, 2015, and information on biosecurity conditions may also be obtained through BICON. Fresh 
beef can now be imported from Japan (in addition to New Zealand and Vanuatu), subject to import 
permit co nditions.  
3.109.   The Department of Agriculture is seeking to optimise voluntary compliance with biosecurity 
requirements, where possible. The regulatory tools available under the Biosecurity Act to manage 
compliance include infringement notices (as an alternative  to court resolution) for low -level 
contraventions and offences, enforceable undertakings, injunctions, and civil penalties. Infringement 
notices may be issued under Part 5 of the Regulatory Powers (Standard Provisions) Act, 2014, to 
persons contravening t he strict liability offence (4) and civil penalty (48) provisions of the Biosecurity 
Act.92 In 2018, the Department of Agriculture announced its intention to utilize infringement notices 
more broadly, including in relation to international cargo and mail an d, in August 2019, that it was 
adopting a less tolerant attitude towards non -compliance.93 
3.110.   Food standards applicable in Australia (and New Zealand) are developed by Food Standards 
Australia New Zealand (FSANZ), an Australian agency established under the Foo d Standards 
Australia New Zealand Act, 1991. The results of the work of the FSANZ are embodied in the Australia 
New Zealand Food Standards Code. In addition, it collaborates with industry to develop codes of 
conduct. In Australia, it develops standards for  food safety, labelling, composition and contaminants; 
establishes maximum residue limits; and performs a range of other functions, such as the 
coordination of recall systems and the provision of risk assessment advice.94 Compliance with the 
                                                
91 Importers may apply, track and manage their permit processes online through their BICON -registered 
user accounts.  
92 The four strict liability offences are detailed in Sections 188(1), 221(3), 301(4) and 556(4) of the 
Biosecurity Act . The penalties payable under infringement notices amount to 60 penalty units (AUD 12,600) for 
businesses, 12 (AUD 2,520) for individuals, and 2 (AUD 420) for passengers at international airports.  
93 Import Industry Advice Notices 106 -2018 and 138 -2019. Vie wed at: 
http://www.agriculture.gov.au/import/industry -advice/2018/106 -2018; and 
http://www .agriculture.gov.au/import/industry -advice/2019/138 -2019. 
94 The role of the FSANZ with respect to New Zealand is limited to the development of standards for 
labelling, composition, and contaminants.  WT/TPR/S/ 396 • Australia  
 
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  Code is monitor ed by the authorities of the states and territories, while the Department of Agriculture 
is responsible for the inspection and sampling of imported food.  
3.111.   The Australia New Zealand Food Standards Code may be amended, inter alia , at the request 
of stakeholde rs. Applications to amend the Code are forwarded to the FSANZ, which must make an 
administrative assessment of the application within 15 business days. The assessment determines 
whether the application meets the requirements of the Application Handbook (Pa rt 3) and the 
procedure (i.e. general, high -level health claim, minor, major, or urgent) under which it should be 
considered. Accepted applications are incorporated into the FSANZ Work Plan, and the agency has 
fixed time -lines to finalize its formal propos als, depending on the procedure chosen (3 to 12 months). 
Fees apply if the applicant derives "an exclusive capturable commercial benefit" from the 
amendment, or if s/he would like to expedite the process. Non -payment prompts the automatic 
rejection of the application. A revised version of the Australia New Zealand Food Standards Code 
was introduced on 1 March 2016. The principal purpose was to clarify the requirements applicable 
to the labelling of food.  
3.112.   Australia introduced a new country of origin labellin g system on 1 July 2016 that became 
mandatory for "priority food" from 1 July 2018.95 The new system is enforced by the Australian 
Competition and Consumer Commission. The labelling requirements include a country of origin 
statement and a prescribed logo/ma rk and bar chart. Food with all ingredients grown, produced or 
made in Australia carry a prescribed kangaroo logo. For imported food or food ingredients, the 
marking should include a text and bar chart indicating the proportion of Australian ingredients by  
ingoing weight.  
3.113.   In Australia, activities with genetically modified (GM) crops are regulated in accordance with 
the Commonwealth Gene Technology Act, 2000, the Gene Technology Regulations, 2001, and 
corresponding state and territory legislation. In additio n, the Commonwealth, states and territories 
governments signed an intergovernmental Gene Technology Agreement to ensure a consistent 
national scheme in 2001. Key elements of the Act are the establishment of the Gene Technology 
Regulator and committees prov iding expert advice to the Regulator, a process to assess risks 
associated with genetically modified organisms (GMOs), and the creation of a database of all GMOs 
approved in Australia. GMOs may be authorized for release for a limited time under specified 
conditions or without a time -limit (commercial release). All releases are assigned a licence number. 
As at September 2019, the database maintained by the Office of the Gene Technology Regulator 
comprised 17 current authorizations for the commercial release of GM crop plants.96 
3.114.   Regarding compliance with transparency obligations under the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measures (SPS Agreement), Australia's SPS contact point 
is located within the Department of Agriculture; it serves as the national enquiry point and the 
national notification authority. Between January 2015 and 19 November 2019, Australia provided 
218 notifications (including addenda and corrigenda) to the WTO related to the SPS Agreement. On 
average, Australia receives approximately 12 queries per year from other WTO Members, ranging 
from requests for further information on notifications to comments regarding specific trade concerns 
for these. These queries are processed by providing an acknowled gement and a confirmation of 
receipt to the WTO Member, before coordinating a response through the appropriate channels to 
address the concern or question. Two new specific trade concerns (STCs) were raised in the WTO 
Committee on Sanitary and Phytosanitar y Measures, regarding measures maintained by Australia 
during the period under review.97 One STC, raised by Australia regarding a measure maintained by 
Turkey, was last on the agenda of the SPS Committee in March 2015.98 
                                                
95 The standard marks may be applied voluntarily to non -priority food.  
96 Office of the Gene Technology Regulator, Table of authorisations for commercial releases of GM 
plants.  Viewed at: http://www.ogtr.gov.au/internet/ogtr/publishin g.nsf/Content/cr -1. 
97 Both STCs were brought up in the Committee by Chile in October 2015, and concerned sales of 
avocados (undue delays in the start of risk analysis) and chicken meat (undue delays in the approval process). 
An STC raised by India for the first time in 2014 (Australia's non -acceptance of OIE categorization for BSE) was 
brought up again in July 2015. None of these STCs have been discussed again in the SPS Committee since 
2015.  
98 The STC regarding requirements for the importation of sheep mea t was initially raised in 2012.  WT/TPR/S/ 396 • Australia  
 
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  3.3.4   Competition policy and price controls  
Legislation  
3.115.   Competition policy is governed by the Competition and Consumer Act, 2010 (CCA).99 Part 
IV of the Act prohibits cartels and other anti -competitive agreements, concerted practices that 
substantially lessen competition, misuse of market power, exc lusive dealings, and resale price 
maintenance and mergers that substantially lessen competition. Part IIIA of the Act concerns third -
party access to services of facilities of national significance, such as electricity grids and gas 
pipelines. Industry code s (franchising, oil, and horticulture) are covered under Part IVB of the Act. 
Price surveillance of certain goods is addressed in Part VIIA, while competition in the 
telecommunications sector and the telecommunications access regime are covered under Part XIB 
and XIC of the Act, respectively. Schedule 2 of the CCA contains the Australian Consumer Law, 
covering  consumer protection, unfair practices, conditions and warranties, product safety and 
information, and product liability.  
3.116.   In 2014, the Government comm issioned a "root and branch " review of competition laws and 
policy , to ensure it continues to experience long -term productivity growth. The Harper Review issued 
its final report in March 2015, which contained 56 recommendations on competition policy, law , and 
institutions. Its conclusion was that , while the concepts, prohibitions and structure of the  CCA are 
sound, some provisions are unnecessarily complex, imposing costs on the economy and burdens on 
business, as well as inhibiting the adaptability of the laws to changing circumstances.  
3.117.   The Government released its response i n November 2015 . It supported 40 recommendations 
in full or in principle and 5 recommendations in part . Furthermore, it  remained open to the remaining 
11 recommendations , subject to further review and consultation.  
3.118.   As a result, the CCA was amended in 2017 (Competition and Consumer Amendment 
(Competition Policy Review) Act, 2017). A salient modification was the change in th e definition of 
competition to now include competition from goods and services that are capable of importation, in 
addition to those actually imported.  Price-signalling provisions were repealed .100 With a view to 
better targeting anti -competitive behaviour, provisions of the Act on cartel conduct were simplified. 
These include confining  applications to cartel conduct affecting competition in Australian markets , 
and altering  the scope of joint venture exceptions to more appropriately exempt legitimate joint 
ventures.  
3.119.   The amendment enhances  Section  45 of the Act  to now prohibit concerted practices that 
have the purpose, effect or likely effect of substantially lessening competition .101 Third-line forcing  
is only prohibited  where it has the purpose, effect or likel y effect of substantially lessening 
competition.  
3.120.   The Act now permits  corporation s or person s to notify , as opposed to seek approval from, 
the Australian Competition and Consumer Commission ( ACCC ) of resale price maintenance . The 
Harper Review  recommended m aintaining a per se  prohibition on resale price maintenance,  coupled 
with a system of notification.  
3.121.   The National Access Regime  was also amended  to ensure it better addresses the economic 
problem of an enduring lack of effective competition in markets for n ationally significant 
infrastructure services.  The amendments clarify declaration criteria, and the scope of determinations 
that may be made by the ACCC, and extend s the powers of the relevant minister in relation to 
                                                
99 Competition and Consumer Act , 2010. Viewed at: 
https://www.legislation.gov.au/Details/C2017C00375 . 
100 The CC A originally prohibited anti-competitive disclosure of pricing. Provisions applied to only a 
single industry (banking) , and no cases were ever brought. The Harper Review noted that public disclosure of 
pricing was normally not harmful to competition , and that other sections of th e act (i.e. Section  45) could 
address anti -competitive price signalling. As such , these  provisions were deemed not fit for purpose , and 
should be repealed . 
101 Concerted practices are forms of cooperation falling short of a contract, arrangement or 
understan ding. It may be established in the absence of any direct conduct , for example where firms 
communicate through an intermediary.  WT/TPR/S/ 396 • Australia  
 
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  certifications.  Various streamlining amendments  were also made, including those pertaining to the 
merger authorization process.  
3.122.   Other changes to the legislative framework included the Competition and Cons umer 
Amendment (Payment Surcharges) Act , 2016, which creates  a framework to ban surcharges 
imposed on certain  payment methods that exceed the cost of acceptance for those payment 
methods . It also  provides the ACCC additional powers to gather information an d issue infringement 
notices enforcing the ban on these surcharges.  The p ermitted surcharge is to be set in most cases 
by the Reserve Bank of Australia (RBA) , or by regulation if necessary . 
3.123.   The Competition and Consumer Amendment (Misuse of Market Power) Ac t, 2017 amended 
the CCA to strengthen the prohibition of the misuse of market power by corporations, and to better 
target anti -competitive conduct by corporations with a substantial degree of market power. The 
Harper Review found that previous misuse of ma rket power provisions were unfit for purpose, were 
unnecessarily complex, and imposed costs on the economy and burdens on business. The new test 
focuses on whether a corporation with a substantial degree of market power engages in conduct 
with the purpose , effect or likely effect  of substantially lessening competition in that market, or any 
other markets in which the corporation directly or indirectly supplies or acquires goods or services. 
The new provision entails a more nuanced balancing of pro -competiti ve and anti -competitive factors, 
which is more flexible. It is also more focused on protecting competition rather than individual 
competitors.  The strengthening of misuse of market power provisions  also resulted in the repeal of 
telecommunications -specific  provisions, now deemed unnecessary.  
3.124.   The Treasury Laws Amendment (2018  Measures No.  5) Act , 2019 was enacted in 
February  2019. The amendment repealed Section  51(3) of the CCA, which removed the exemption 
for conditional licensing or assignment of intellect ual property rights from prohibitions on restrictive 
trade practices.  
3.125.   With respect to consumer protection , the Treasury Laws Amendment (2018 Measures No.  3) 
Act, 2018 increased the maximum penalties for civil and criminal offences under the Australian 
Consumer Law, to provide a stronger deterrent for non -compliant conduct. Under the provisions of 
the L aw, penalties  increased for body corporates from AUD 1.1 million to t he greater of: 
AUD 10 million, or three times the value of the benefit obtained from the offence (if this can be 
determined), or 10 % of the annual turnover (if the value of the benefit cannot be determined). For 
persons other than body corporates, the maxi mum penalty more than doubled  from AUD 220,000 
to AUD 500,000.  Additionally, the Treasury Laws Amendment (Australian Consumer Law Review) 
Act, 2018 implemented several measures arising from the 2017 review of the Law.  These are focused 
on the consumer prot ections relating to consumer guarantees, unsolicited consumer agreements, 
product safety, false billing, unconscionable conduct, pricing , and unfair contract terms.  
3.126.   There continues to be exemptions to the  CCA. Most of these are at state and territorial lev els 
of government , where they seem difficult to reform.102 They include specific postal m ail delivery 
services and cargo -liner shipping  conferences  at the national level, and agricultural marketing 
boards, taxi services and pharmacies at state or territory l evel. Several deal with marketing 
arrangements for agricultural products , by authorizing either th e operation of monopolies or joint 
action , ostensibly to equalize bargaining power between producers and processors.  
3.127.   Administering the CCA is the responsibility of the ACCC and the Australian Energy Regulator 
(AER) . The ACCC is an independent statutory authority , focused "on taking action that most 
promotes the proper functioning of Australian markets, protects competiti on, improves consumer 
                                                
102 Some 12 Commonwealth and 69 state and territory acts permit conduct that would normally 
contravene the CCA. Such conduct may be  permitted if it is specifically authorized under those acts, which  
cover, inter alia, farm produce, poultry meat, the sugar industry, grain marketing, rice marketing, tobacco 
products, wine grape marketing, liquor, the coal industry,  the gas industry, ele ctricity, and financial, banking, 
gambling, health, insurance, postal, transport, water supply, and state -owned enterprise activities. ACCC , 
Exceptions under Commonwealth, state & territory legislation.  Viewed at:  http://www.accc.gov.au/about -
us/australian -competition -consumer -commission/legislation/exceptions -under -commonwealth -state-territory -
legislation ; Authorisation. Viewed at:  https://www.accc.gov.au/business/exemptions/authorisation ; Industry 
associations . Viewed at:  https://www.ac cc.gov.au/business/industry -associations -professional -
services/industry -associations ; and in its annual report .  WT/TPR/S/ 396 • Australia  
 
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  welfare and stops conduct that is anti -competitive or harmful to consumers ".103 The AER  is 
responsible for  "promoting efficient investment in, and efficient operation and use of, energy services 
for the long -term interests of consumers with respect to price, quality, safety, reliability and 
security ".104 Additionally, t he National Competition Council, also an independent authority, assesses 
whether third -party access should be granted to major infrastructure under the CCA access 
provisions , with subsequent regulation of that access conducted by the ACCC or other state -based 
regulators.  
Enforcement  
3.128.   As the competition regulator, the ACCC works to enhance the welfare of Australians by 
maintaining and promoting competition. The ACCC's annually revised Compliance and Enforcement 
Policy105 sets out priorities for the year , and recently focused on , inter alia , competition issues in the 
financial services sector , competition and consumer issues in the provision of energy as an essential 
service , the misuse of market power , and cartel conduct anti -competitive agreements and practices.  
During the period under review, the ACCC completed  152 competition investigations , and the 
Australian courts imposed a total of AUD  52 million in fines and penalties  in competition cases 
(excluding cartels) brought by the ACCC  (Table  3.14). 
3.129.   Cartels are of particular concern, as such action " involves businesses agreeing with their 
competitors to fix prices, rig bids, share markets or restrict supply of products and ser vices. By 
conspiring to control markets in these ways, a cartel protects and rewards its inefficient members 
while penalizing honest, innovative and well -run companies ".106 In this regard, during the review 
period, the courts imposed fines/penalties of AUD 1 41.4 million for cartel conduct, including 
AUD 46 million in penalties imposed on Yazaki Corporation. This was the highest penalty ever 
handed down under the CCA. Additionally, the ACCC received 39 application proffers for cartel 
immunity (Table 3.14). 
3.130.   The ACCC also reviews mergers and acquisitions to determine if they are likely to 
substantially reduce  competition.  Merger parties can seek "informal " clearance from the ACCC, which 
decides whether such  an action is likely to substantially lessen competition.  The 2017 amendments 
to the CCA changed the first -instance decision -maker and the test for authori zing proposed 
acquisitions (referred to as "merger authori zation"). The merger authori zation process provides an 
alternative clearance option to the informal merger review process. Now, applications for merger 
authori zation are made to the ACCC rather than to the Australian Competition Tribunal . Under the 
new provisions, authori zation can be granted where the acquisition will not be likely to substantially 
lessen competition or, alternatively, where it results in public benefits that outweigh any detriments.  
During the period under review, 1,210 mergers were considered by the ACCC, of which 140 were 
subject to public or confidential reviews ( Table 3. 14). 
Table 3.14 Competition policy implementation, 2014 -18 
 
2014/15  2015/16  2016/17  2017/18  
Cartel immunity applications      
Approaches  28 17 .. 13 
First in approaches  18 12 11 12 
Approaches resulting in no marker  10 5 3 1 
Immunity application proffers  13 11 6 9 
Proffers not resulting in conditional immunity  2 4 1 3 
Civil conditional immunity granted  2 9 9 1 
Criminal conditional immunity granted by the 
Commonwealth Director of Public Prosecutions  on an 
ACCC recommendation  .. .. 0 3 
Total penalties and/or fines imposed (AUD million)  8.3 27.1 24.5 81.5 
                                                
103 ACCC, About the ACCC . Viewed at: https://www.accc.gov.au/about -us/australian -competition -
consumer -commission/about -the-accc. 
104 ACCC, About the ACCC . Viewed at: https://www.accc.gov.au/about -us/australian -competition -
consumer -commission/about -the-accc. 
105 ACCC, Compliance & enforcement policy & priorities . Viewe d at: https://www.accc.gov.au/about -
us/australian -competition -consumer -commission/compliance -enforcement -policy -priorities . 
106 Annual report of the Australian Competition and Consumer Commission and the Australian Energy 
Regulator  2017/18. Viewed at: https://www.accc.gov.au/publications/accc -aer-annual -report . WT/TPR/S/ 396 • Australia  
 
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2014/15  2015/16  2016/17  2017/18  
Competition investigations      
Number of in -depth competition investigations 
completed  40 41 43 28 
Number of competition enforcement interventions or 
market studies (court proceedings commenced, S. 87B 
undertakings accepted, or publication s of studies 
relating to competition in markets)  10 3 12 8 
Total penalties  and/or fines imposed (AUD million)  0 18.02 0 34.1 
Merger reviews      
Number of merger matters considered (externally 
driven)  322 319 288 281 
Number assessed as not requiring a public or 
confidential review  278 287 253 252 
Number subject to public review  42 31 33 28 
Number opposed  0 2 0 1 
Number subject to confidential review  2 1 2 1 
Number opposed  0 1 2 1 
Non-compliance with the Australian Consumer 
Law (ACL)      
Number of in -depth ACL investigations completed  80 126 98 80 
Number of ACL enforcement interventions or market 
studies (court proceeding s commenced, S. 87B 
undertakings accepted, infringement notices issued, or 
publication s of studies relating to consumer or small 
business issues in markets)  43 48 48 56 
Number of new or revised business compliance 
resources (published guidance)  12 17 26 16 
Number of surveys and audits for CCA compliance, 
including in relation to product safety regulations  37 40 54 57 
Total of fines and penalties imposed under the ACL 
(AUD million)  20.41  13.83  17.02  48.65  
Infrastructure regulation      
Number of major regulatory decisions  6 7 6 1 
Number of annual monitoring reports  10 7 7 6 
Number of investigations into potential breaches of 
rules 12 15 19 17 
Energy regulation      
Number of completed revenue decisions for electricity 
networks and gas pipelines  8 11 3 8 
Number of annual benchmarking reports on electricity 
networks  2 2 2 2 
Number of electricity distribution annual pricing (tariff) 
proposals and annual gas tariff variations approved  24 23 25 27 
Number of annual reports on compliance in, and 
performance of, retail energy markets  2 2 2 2 
Number of quarterly reports on compliance in 
wholesale electricity and gas markets  4 4 4 4 
Number of targeted reviews of compliance with the 
national energy rules  4 4 3 7 
.. Not available.  
Source:  Various annual reports of the ACCC and the AER. Viewed at: https://www.accc.gov.au/publications/ 
accc-aer-annual -report . 
3.131.   The ACCC is responsible for enforcing the Australian Consumer Law ( ACL). The ACL prohibits 
conduct that could  have a negative impact on consumers and small business. During the period 
under review, the ACCC conducted 384 in -depth investigations into non -compliance with the ACL , 
and imposed AUD 99.1  million in fines and/or penalties (Table  3.14). 
3.132.   The ACCC regulates national infrastructure industries , and has a  price oversight role in some 
markets where competition is limited. It does this by regulating acces s to bottleneck infrastructure 
and setting prices for wholesale monopoly services. The ACCC  monitor s and report s on the price and 
quality of goods and services in these monopoly markets and, where relevant, business compliance 
with industry -specific laws. In this regard, it took 20 major regulatory decisions between 2014/15 
and 2017/18, and conducted 63 investigations into potential breaches of rules (Table 3.14). WT/TPR/S/ 396 • Australia  
 
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  3.133.   The AER aims at ensur ing consumers pay no more than necessary for a safe, reliable and 
secure supply of energy. It endeavo urs to provide effective network regulation for natural monopoly 
infrastructure elements in energy networks ; build consumer confidence in retail energy markets and 
support efficient wholesale energy markets through its complianc e and enforcement regime ; and 
monitor and report on the effectiveness of competition and the monitoring and enforcing compliance 
by participants in the competitive sections of the market. Between 2014/15 and 2017/18 , the AER 
completed 40  revenue decisions for electricity networks and gas pipelines , and completed 18 
targeted reviews regarding  compliance with the national energy rules  (Table 3.14). Furthermore, in 
October 2017, the Commonwealth  Government passed the Competition and Consumer Amendmen t 
(Abolition of Limited Merits Review) Bill , 2017, which removes access to the limited merits review 
regim e for reviewable regulatory decisions under the national energy laws.  
Price surveillance  
3.134.   The CCA  provides for price surveillance . Three forms of price  surveillance are available: price 
inquiries, directed to the ACCC by portfolio ministers to undertake a public inquiry; price notification, 
where the portfolio minister requires specific companies to notify the ACCC of a proposed price 
increase; and price  monitoring, where the portfolio minister directs the ACCC to monitor the prices, 
costs, and profits of companies and government agencies relating to specific goods and services. 
Price surveillance may be conducted informally or formally. Under the formal system, penalties may 
be applied for non -compliance. The ACCC conducts formal price surveillance on aviation and airport 
services and facilities, fuel, electricity, telecommunications, postal services, and container 
stevedoring.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.135.   Public enterprises, owned by governments at the Commonwealth, state and territory level, 
were an important part of the economy until the late 1980s. At the time, key infrastructure supplying 
electricity, water, gas and commun ication services were organized as public monopolies. In addition, 
within their boundaries at the state and territory level, the engagement of the public sector also 
extended to banking, finance and transportation. Before reforms were undertaken in the 199 0s, 
government business enterprises (GBEs) accounted for an estimated 10% of GDP and 16% of capital 
stock.107 
3.136.   As an operational entity, the Commonwealth Government currently encompasses 190 
different entities. The organizational structures include department s of state, office holders, 
statutory authorities (including statutory corporations), companies, and trusts. The Commonwealth 
public sector is generally divided in three categories, i.e.  the general government sector, public non -
financial corporations, and  public financial corporations, and includes 71 corporate Commonwealth 
entities and 18 Commonwealth companies.108 The public financial corporations sector comprises four 
government -controlled corporations and quasi -corporations ; the Australian Reinsurance Po ol 
Corporation , the Coal Mining Industry (Long Service Leave Funding) Corp oration , Export Finance 
Australia,  and the R BA. 
3.137.   The Public Governance, Performance and Accountability Act, 2013 (the PGPA Act) created a 
new framework for governance, accountability, performance and use of resources for corporate and 
non-corporate Commonwealth entities.109 The framework is completed by rules made by the Finance 
Minister under the Act. Section 5 of the PGPA Rule, 2014 prescribes nine GBEs, two of which are  
corporate Commonwealth entities (the Australian Postal Corporation, and Defence Housing Australia) 
and seven of which are Commonwealth companies (Table 3.15).110 The Commonwealth companies 
are all enterprises involved in the management or development of civ il or military infrastructure 
                                                
107 OECD (1998) , Reforming Public Enterprises – Case Studies Australia , Marsden, J., Marsden, Jacobs 
and Associates.  
108 Though not a legal document, the Department of Finance publishes a flipchart of Commonwealth 
entities and companies. The most recen t flipchart, as at 2 September 2019, listed 190 bodies, of which 101 
were non -corporate Commonwealth entities. Viewed at: https://www.finance.gov.au/government/managing -
commonwealth -resources/structure -australian -government -public -sector/pgpa -act-flipchart -list. 
109 The PGPA Act replaced the Commonwealth Authorities and Companies Act, 1997 and the Financia l 
Management and Accountability Act, 1997.  
110 Australian Government, PGPA Rule, 2014  (current as at 1 July 2019). Viewed at: 
https://www.legislation.gov.au/Details/F2019C00550 .  WT/TPR/S/ 396 • Australia  
 
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  and/or related services. Two of the companies – Australian Naval Infrastructure Pty Ltd and WSA Co 
Limited – were recently established, and are in the early stages of their construction projects.  
Table 3.15 Commonwealth companies, 2019  
Name  Purpose/business  Total assets 
2017/18 
(AUD million)  Net profit (loss) 
in 2017/18  
(AUD million)  Workforce  
ASC Pty Limited  Shipbuilding, naval defence  539 32.0 2,400  
Australian Rail Track 
Corporation Limited  Managing interstate rail 
network  4,830  54.2 >1,300  
Moorebank Intermodal 
Company Limited  Development of an 
intermodal freight terminal in 
Sydney  321 (61.5)  6,800  
NBN Co Limited  Development of the 
(wholesale) broadband 
access network  28,203  (4,780)  6,823  
Australian Naval 
Infrastructure Pty Ltd  New infrastructure at 
Osborne n aval shipyard  611 (3.8) 17 
WSA Co. Limited  Airport construction  
(in West Sydney)  58 (280)  81 
Snowy Hydro Limiteda Energy gene ration and risk 
management  3,420  210.2  1,886  
a The Commonwealth Government announced in 2017 that it intended to purchase the shares held by 
New South Wales and Victoria in Snowy Hydro. On 29 June 2018, the New South Wales Government 
received AUD 4.1 billion for its 58% shareholding, and the Victorian Government received 
AUD 2.0 billion for its 29% shareholding.  
Source:  Annual Reports 2017 -18 of the companies concerned.  
3.138.   The relationship between the Commonwealth  Government an d its GBEs resembles that of a 
holding company and its subsidiaries. Management autonomy is balanced with regular reporting to 
the shareholders (i.e. the shareholder minister), GBE boards are held accountable to the 
shareholders, and shareholders accountab le to Parliament and the public. The GBEs are required to 
prepare a Statement of Corporate Intent (or a Corporate Plan) in consultation with their shareholder 
minister, focusing on the GBE's purpose, corporate outlook, and management expectations with 
regards to future financial and non -financial performance.  
3.139.   The state and territory governments also maintain a number of enterprises that provide a 
range of services, such as energy and water; transport and communication, including ports; financial 
services; h ousing schemes; employment; lotteries and wagering; culture and sports; and health 
services. These enterprises may be established as statutory corporations, i.e. through legislation for 
a public purpose, or they may be companies under corporate law, with t he state or territory 
government holding a controlling interest. Information provided to the Secretariat during 2019 
indicated the presence of one GBE, a monopoly control body (but not a body corporate) for 
thoroughbred, harness and greyhound racing, one c ommercialized business unit for residential urban 
and industrial development, one trading entity (but not a monopoly), and six water entities with 
government ownership in Queensland; 88 general government sector entities, 25 non -financial 
corporations and six public financial corporations in New South Wales; 79 general government sector 
entities, 11  public non -financial corporations, and six public financial corporations in South Australia; 
six GBEs, eight state -owned companies, and two "other" entities in Tasmania; 184 general 
government entities, 70 public non -financial corporations, and six public financial corporations in 
Victoria; 29 public financial and non -financial corporations in Western Australia; six public 
trading/non -financial corporations in th e Australian Capital Territory; and four corporations wholly 
owned by the Northern Territory Government.  
3.140.   Privatizations at the Commonwealth level have generally been carried out either as trade 
sales, i.e. tenders of companies such as Sydney Airports Corpo ration Limited, or public floats in 
which shares in the privatized companies were sold to institutional and retail investors prior to, or 
in conjunction with, the listing on a securities exchange (e.g. Telstra and the Commonwealth Bank). 
The most recent go vernment privatization was Medibank Private, a private health insurance provider, 
carried out via an initial public offering on the Australian Stock Exchange in 2014.  WT/TPR/S/ 396 • Australia  
 
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  3.141.   At the state level, several privatizations were undertaken by the New South Wales  
governm ent in the period under review, notably the leasing for 99 years of its electricity network 
assets in Transgrid (100%), AusGrid and Endeavour Energy (each 50.4%), generating combined 
proceeds of AUD 34.1 billion.111 The Victoria government sold the Port of M elbourne on a 50 -year 
lease in 2016, raising AUD 9.7 billion. In South Australia, the Motor Accident Commission was wound 
up in July 2019 , having  ceased to be the sole provider of compulsory third -party insurance in 2016 . 
The Land Titles Office was commerc ialized under a 40 -year lease in 2017.  The government of 
Western Australia launched an auction for the privatization of Landgate, its land registry, in early 
2019, and is slated to receive AUD 1.41 billion upfront for the 40 -year lease. In 2019, the Queens land 
government announced its decision to transition privately operated Arthur Gorrie and Southern 
Queensland Correctional Centres to public operation.  
3.142.   Australia notifies the WTO on a regular basis of enterprises it considers to be state -trading 
enterprise s, according to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the Understanding 
on the Interpretation of Article XVII. In the period under review, Australia submitted 
two notifications, providing information on the activities of the Rice Marketing Board for the State of 
New South Wales in the years 2014/15 and 2015/16.112 The vesting powers of the Board have been 
extended until 30 June 2022. The Board's exclusive rights are limited to the exportation of rice grown 
in New South Wales. Rice grown and ex ported from other Australian states is not subject to similar 
statutory restrictions.113 
3.3.6   Government procurement  
Legislative framework  
3.143.   Public procurement takes place at both the federal (Commonwealth) level and at the 
state/territory level. At the Commonwealth level, the Public Governance, Performance and 
Accountability Act , 2013 (PGPA Act ) and the Public Governance, Performance and Accountability 
Rule, 2014 (PGPA Rule ) govern procurement of both corporate and non -corporate Commonwealth 
entities.114 Additionally, the requirements for procurement are detailed in the Commonwealth 
Procurement Rules (CPRs), which are issued by the Minister of Finance under the PGPA Act. The 
CPRs were amended in 2019, and apply to any new procurement undertaken since 20 April 2019. 
The basic tenets of the CPRs remain unchanged, namely  whether a procurement will deliver the best 
value for money  (the CPR states this to be "the core rule "); equal treatment of all potential suppliers 
so as to encourage competition , efficiency, effectiveness and ethical accountability and transparency 
in the procurement process; and establishing systems to identify,  analy se, allocate and treat 
procurement risk.  Furthermore, o fficials should ensure that the procurement method is conducted 
by open tender or , when circumstances justify it, limited tender.  The amended rules make changes 
to accommodate the  Government Proc urement (Judicial Review) Act , 2018115, international law 
obligations, and the introduction of targets for procuring from SMEs . Additionally, with a view to 
encouraging good tax behaviour, the Government recently agreed to a new  Procurement Connected 
Policy . Since  1 July 2019, businesses tendering for government contracts above AUD 4 million are 
required to demonstrate that they have a satisfactory tax record. This is to ensure that suppliers are 
not able to make more competitive bids at the procurement point because they have saved costs by 
not complying with their key tax obligations.  
3.144.   With regards to SMEs , officials are  required to consider  the benefits of doing business with 
competitive SMEs;  barriers to entry , such as the cost of preparati on of submissions , that may 
prevent SMEs from competing;  SME capabilities and their commitment to local or regional markets; 
and the potential benefits of having a larger, more competitive supplier base.  A target of 10% of 
                                                
111 Under the COAG National Partnership Agreement on Asset Recycling, the Commonwealth 
Government provides incentive payments to state and territory governments equal to 15% of the proceeds 
(from sales or leases) that they reinvest in new infrastructure.  
112 WTO document G/STR/N/16/AUS, 29 July 2016, and its Supplement  G/STR/N/16/AUS/Suppl.1, 
1 August 2017.  
113 New South Wales typically accounts for 99% of all rice grown in Australia.  
114 Non-corporate Commonweal th entities include departments and agencies, while corporate entities 
cover statutory corporations and Commonwealth companies.  
115 The Government Procurement (Judicial Review) Act , 2018 establishes a regime under which the 
conduct of Commonwealth agencies i n procurement processes may be challenged in the Federal Court of 
Australia and the Federal Circuit Court, based on failures to comply with the  CPRs,  or proposed conduct that 
would breach the CPRs.  WT/TPR/S/ 396 • Australia  
 
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  procurement from SMEs is in place  for non-corporate Commonwealth entities . Furthermore, under 
the 2019 CPRs, non-corporate Commonwealth entities have a target of procuring 35% of contracts 
by volume , with a value of up to AUD 20 million , from SMEs.  
3.145.   At the state/territory and local governm ent levels, legislation regulates public procurement, 
and tends to employ whole -of-government purchasing agreements more frequently.116 In most 
states/territories , there is a central body which sets policy and undertakes procurement. Policies are 
like those at the Commonwealth  level. Most states/territories also issue procurement directives , 
addressing similar issues to the Commonwealth  rules. State governments esta blish the legislative 
framework for local government procurement. Each local government body also set s procurement 
rules, which are applied accordingly.  
3.146.   Other laws and policies which a pply to public  procurement are the Freedom of Information 
Act, 1982, which provides the  right to access information in the Government 's possession, the 
Auditor  General Act , 1997, which  gives the Auditor  General powers to audit government contract 
performance , and t he Public Works Committee Act , 1969, which  allows parliamentary  committee 
scrutiny of proposed public works programmes. In addition, l aws prohibiting the bribery of public 
officials and policies for accepting gifts and declaring gifts or hospitality  and t he Lobbying Code of 
Conduct, which reflects government policy fo r dealing with lobbyists , also apply.  
3.147.   CPRs are divided in two parts. Division 1 applies to all procurements for non -corporate 
entities regardless of value , and for corporates above a certain threshold . Division 2 has enhanced 
rules for  procurements that ar e at or above the relevant threshold s (unless an exception applies).117 
For non -corporate entities, excluding construction services, the procurement threshold is 
AUD 80,000; for corporate entities, excluding construction services, it is AUD 400,000; and for 
construction services, it is AUD 7.5 million. For states/territories, the financial threshold for a 
contract usually determines the applicable procurement method.  
3.148.   It is generally a requirement for relevant entities to procure suppliers through a competitive 
tendering regime , as pe r the above procurement thresholds. The two main procurement methods 
are open tender , which involves publishing an open approach to market (on AusTender) , and inviting 
bids. This includes multi -stage procurements, provided the first stage is an open approa ch to market. 
Limited tender  involves a relevant entity approaching one or more potential suppliers to make 
submissions when the process does not meet the rules for open tender. Entities must only conduct 
a limited tender at,  or above , the relevant procure ment threshold in limited circumstances , and 
certain reporting requirements apply.  
3.149.   In tenders issued by Commonwealth  government agencies, other principles must be adhered 
to, such as the  Indigenous Procurement Policy , the Workplace Gender Equality Procurem ent 
Principles , and the supporting User Guide.  The Indigenous Procurement Policy, which commenced 
on 1 July 2015, requires Commonwealth  entities to award 3% of contracts to indigenous businesses 
by 2020. Interim targets apply each year since 2015–16.118 The Workplace Gender Equality 
Procurement Principles and User Guide require Australian non -public sector employers with 100 or 
more employees  to provide  a letter of compliance with respect to  their obligations under the 
Workplace Gender Equality Act , 2012. Additionally, under the Australian Industry Participation (AIP) 
National Framework, successful tenderers for Commonwealth government procurements of AUD 20 
million or more may be required to prepare and implement an A IP plan. This outlines how the 
successful tenderer will provide industry with full, fair and reasonable opportunity to participate in 
the project. AIP plans do not mandate the use of Australian industry, but rather aim to provide it 
with the opportunity to demonstrate its capabilities so it can be  considered in purchasing decisions . 
3.150.   The National Public Private Partnership (PPP) Policy Framework requires all governments to 
apply the National PPP Guidelines to the procurement of PPP projects. In instances where capital 
expenditure exceeds AUD 50 million, evaluation of a PPP as a potential procurement method will be 
                                                
116 A whole -of-government contract (WoG) is a type of approv ed collaborative contract. WoGs establish 
supply agreements with approved suppliers for selected common goods or services purchased across 
government.  
117 The Division 2 rules require a higher level of transparency , such as  stronger requirements to conduct 
open tenders and to follow certain rules in conducting the procurement.  
118 The interim targets as outlined in the Indigenous Procurement Policy are 2015 /16: 0.5%, 2016 /17: 
1.5%, 2017 /18: 2%, and 2018/19: 2.5%.  WT/TPR/S/ 396 • Australia  
 
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  initiated . The Guidelines focus on gaining valu e for money through whole -of-life costing, managing 
risk, and protecting the public interest.  
3.151.   Australia 's free trade agreements  (FTAs)  contain a non -discrimination  clause  between 
Australian and foreign suppliers regarding  government  procurement, and also set goals to eliminate 
preferential treatment and to commit to provide transparency within the tendering process . These 
principles are incorporated in the  CPRs which prohibit discrimination, which would otherwise favour 
local suppliers.  
3.152.   Australia acceded to  the WTO's Agreement on Government Procurement (GPA), submitting 
its instrument of accession to the WTO Secretariat on 5 April 2019, and the  GPA took effect for 
Australia on 5 May 2019.  Australia notified its procurement thresholds to the WTO119 and its coverage 
schedules under the GPA .120 The Government Procurement (Judicial Review) Act , 2018 was passed 
by Parliament in October 2018. The Act  provides the statutory basis to assert non -compliance with, 
or to make a complaint about, conduct governed by the CPRs.  
Procurement activity  
3.153.   Public procurement data is based on the Commonwealth Government 's procurement 
information system , AusTender . The contract values on AusTender represent the total maximum 
value of each contract over its life, including where contracts span multiple years. AusTender data 
does not  reflect annual expenditure.  In 2017 /18, 73,458 contracts were published on AusTender , 
with a combined value of AUD 71.1 billion  (equal to 3.8% of GDP), compared with 66,047 contracts, 
with a value of AUD 48.9 billion, in 2013/14 (3.1% of GDP) ( Table 3.16). 
Table 3.16 Historical values and numbe r of contracts, 2013 -18 
Year Value (AUD b illion ) Number of contracts  
2013/14 48.9 66,047  
2014/15 59.5 69,236  
2015/16 56.9 70,338  
2016/17 47.4 64,092  
2017/18 71.1 73,458  
Source:  Information provided by the authorities . 
3.154.   In 2017/18, nearly 95% of the contracts  by volume (69,611) were less than AUD 1 million , 
while 333 high -value contracts accounted for over  71% of the total value of contracts awarded , at 
AUD 50.6 billion.  Businesses with an Australian address, which  includes overseas suppliers that are 
operating within Australia, accounted for 95% of the contracts (by volume ) awarded in 2017 /18. 
Top procurement categories by value were c ommercial and military and private vehicles and their 
accessories and components  (37.8%), m anagement and business professionals and administrative 
services  (15.1%), e ngineering and research - and technology -based services  (6.4%), d efence and 
law enforcement , and security and safety equipment and supplies  (6.3%), healthcare services  
(5.8%), building and construction and maintenance services  (5.4%), and i nformation technology 
broadcasting and telecommunications  (5.3%). 
3.155.   During the period under review, the ratio of goods and services contracts varied. In 2017/18, 
55% of the contracts awarded by value were for goods, while services accounted for 45% 
(Table  3.17). Furthermore, the allocation between the procurement methods a lso varied during the 
review period (Table 3.18). 
                                                
119 WTO document GPA/THR/AUS/1, 13 June 2019.  
120 WTO,  Coverage schedules . Viewed at: https://www.wto.org/english/tratop_e/gproc_e/gp_app_ 
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  Table 3.17 Procurement contracts, 2013 -18 
Ratio of goods and services contracts  Total  Goods  Services  
2017/18  Value (AUD million)  71,127.3  39,346.1  31,781.2  
% 100 55 45 
Number of contracts  73,458  23,092  50,366  
% 100 31 69 
2016/17  Value (AUD million)  47,354.7  20,417.8  26,936.9  
% 100 43 57 
Number of contracts  64,092  22,593  41,499  
% 100 35 65 
2015/16  Value (AUD million)  56,912.3  24,460.2  32,452.2  
% 100 43 57 
Number of contracts  70,338  26,520  43,818  
% 100 38 62 
2014/15  Value (AUD million)  59,447.0  20,097.8  39,349.2  
% 100 34 66 
Number of contracts  69,236  26,444  42,792  
% 100 38 62 
2013/14  Value (AUD million)  48,921.1  18,886.4  30,034.7  
% 100 39 61 
Number of contracts  66,047  24,822  41,225  
% 100 38 62 
Source:  Information provided by the authorities.  
Table 3.18 Procurement method, 2013 -18 
Financial year  Number of contracts  Total value (AUD billion)  
Limited  Open  Prequalified  Limited  Open  Prequalified  
2013/14  8,441  11,229  1,600  19.6 18.1 7.6 
2014/15  9,508  12,572  1,641  17.0 34.3 8.9 
2015/16  9,547  15,680  1,240  33.1 23.8 3.1 
2016/17  8,948  13,934  1,447  18.8 21.8 5.3 
2017/18  9,368  17,097  1,710  36.0 21.1 12.8 
Source:  Information provided by the authorities.  
3.156.   Under the Government's policy to support SMEs in procurement, SMEs were awarded 18.2% 
(by value) and 52.7% (by volume) of all procurement contracts announced in 2017/18. Furthermore, 
they obtained nearly 40% (by value) of the procurement contracts below th e AUD 20 million 
threshold (Table 3.19). 
Table 3.19 Estimated SME participation by value threshold, 2017 -18 
Threshold  Value 
(AUD million ) % of value 
threshold  Number of 
contracts  % of number 
threshold  
AUD 10,000 to AUD 200,000  1,592.3  52.6 31,143  54.1 
AUD 200,000 to AUD 1 million  2,417.8  50.1 6,277  51.9 
AUD 1 million to AUD 20 million  8,179.2  39.8 38,669  52.9 
Source:  Information provided by the authorities.  
3.157.   Due to different methodologies and procurement rules, an exact figure for procurement by 
states and territories is not available. However, the authorities estimate the figure to be 
approximately the same as that for procurement by the Commonwealth.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.158.   Australia considers intellectual property (IP) to be integral to its international trade policy , 
and as being of increasing importance to the economy. IP plays an important role in Australia's effort 
to transition to a more innovative, entrepreneurial econ omy. In 2019, Australia ranked 22nd out of 
129 economies on the Global Innovation Index, which is based on effectiveness and the WT/TPR/S/ 396 • Australia  
 
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  administrative process, and ranked in the top ten for its regulatory environment.121 Government 
statistics indicate that applicat ions for all IP rights continued to grow in 2018 , with growth in 
applications for domestic patents and design rights of around 9%.122 In addition, Australia's 
attractiveness to the global business community continued to increase , as non -resident applications  
for trademarks grew by around 11%.  
3.159.   In 2017/18, Australia's IP stocks were valued at AUD 246.9 billion, with estimated 
expenditure on IP products in Australia of AUD  37.4 billion.123 Its reported trade in IP, measured by 
royalties and payments for IP not rec orded elsewhere, was worth AUD  1.4 billion (exports) and 
AUD 6.3 billion (imports).124 Australia is a net exporter of IP to non - OECD countries. According to 
the authorities, IP imports and exports support the development of Australian industries such as the  
mining, services, innovation and technology, and creative industries.  
3.160.   During the review period, Australia strengthened its international commitments to the 
protection of IP by concluding free trade agreements with Peru and Hong Kong, China, both of which 
contain provisions regarding the protection of IP rights and key principles, such as transparency.  In 
addition, the China -Australia Free Trade Agreement (ChAFTA) and the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP) entered into force for Australia , and 
include chapters on IP.125 In each case, Australia considers that the IP chapters are consistent with 
its existing IP regime.126 
3.161.   Australia accepted the Protocol amending the TRIPS Agreement (TRIPS Protocol) , and the 
implementing l egislation came into effect on 23 January 2017, with the entry into force of the TRIPS 
Protocol.  
3.162.   Australia participates in 18  out of the 26 treaties administered by the World Intellectual 
Property Organization ( WIPO ).127 It ratified the WIPO Marrakesh Treaty  to Facilitate Access to 
Published Works for Persons who are Blind, Visually Impaired, or Otherwise Print Disabled on 
10 December 2015. Its implementing legislation came into effect on 22 December 2017.  
3.3.7.2   Global IP initiatives  
3.163.   During the review period, the G overnment introduced a number of initiatives aimed at 
assisting Australian businesses to secure, commerciali ze and protect their IP in overseas markets. 
In December 2015, the Government announced the National Innovation and Science Agenda, which 
commits AU D 1.1 billion over four years for 24 innovation -related initiatives.128 Its overarching aim 
is to support the transition of Australia from an economy based on mining and resources to one 
based on innovation and entrepreneurship. One of these initiatives, the  Global Innovation Strategy, 
is designed to advance international collaboration , and encourage Australians to leverage 
entrepreneurial expertise in key locations overseas. It provides grants aimed at encouraging 
business -research collaborations with overse as partners , and facilitating the establishment of 
Australian start -ups in key international locations.129 
                                                
121 Global Innovation Index . Viewed at: https://www.globalinnovationindex.org/analysis -indicator . 
122 IP Australia, Australian Intellectual Property Report 2019 . Viewed at: 
https://www.ipaustralia.gov.au/sites/default/files/reports_publications/ip_report_2019.pdf . 
123 DFAT, ABS National Accounts for 2017 -2018, 5.204.0, cited  in DFAT information. Viewe d at: 
https://dfat.gov.au/trade/organisations/wto/intellectual -property/pages/intellectual -property.aspx . 
124 DFAT, ABS, International Trade in Goods and Services, August 2018 5368, cited in DFAT information. 
Viewed at: https://dfat.gov.au/trade/organisatio ns/wto/intellectual -property/pages/intellectual -property.aspx . 
125 ChAFTA CH 11; and CPTPP CH 18.  
126 DFAT, Summary of ChAFTA chapters and annexes . Viewed at: 
https://dfat.gov.au/trade/agreements/in -force/chafta/official -documents/Pages/chafta -summary -of-chapters -
and-annexes.aspx ; DFAT, CPTPP: Intellectual Property . Viewe d at: https://dfat.gov.au/trade/agreements/in -
force/cptpp/outcomes -documents/Pages/cptpp -intellectual -property.aspx .  
127 WIPO , WIPO -Administered Treaties - Australia . Viewed at:  
https://www.wipo.int/treaties/en/ShowResults.jsp?country_id=10C . 
128 DIIS, National Innovation and Science Agenda report . Viewed at:  
https://www.industry.gov.au/strategies -for-the-future/boosting -innovation -and-science . 
129 Global Innovation Strategy. Viewed at: 
https://publications.industry.gov.au/publications/globalinnovationstrategy/index.html . WT/TPR/S/ 396 • Australia  
 
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  3.164.   The IP Summit, an event held by IP Australia in 2018 and 2019, provided Australian 
businesses (and in particular, SMEs) with information on how to acce ss grants, funding and support, 
commerciali ze their inventions, expand into key overseas regions , and protect their IP rights.130 In 
April 2017, the Export Finance and Insurance Corporation (E fic), in collaboration with IP Australia , 
released a white paper on "protecting IP overseas", which helps SMEs understand the IP challenges 
they are likely to face.131 IP Australia also provides jurisdiction -specific information regarding the 
protection of IP in various markets, via its website.132 Between 1  December  2018 and 30 June 2019, 
IP Australia offered free trial Patent Landscape Reports with every international search, to assist 
Australian businesses to determine whether to seek patent protection overseas.133 In 2016, Australia 
appointed its first IP Counsellor to China. The Counsellor's role involves supporting Australian 
businesses to navigate Chinese IP systems and engaging with the Chinese Government on IP 
policy.134 
3.3.7.3   Innovation and SME policies  
3.165.   Since the las t review, Australia has introduced several measures aimed at boosting 
innovation and assisting Australian businesses, in particular SMEs and start -ups, to develop and 
commerciali ze IP. A number of these measures seek to address perceived barriers to collab oration 
between Australian businesses and the public sector.135 For example, Source IP provides an online 
platform for public sector patent holders to signal their licensing intent and promote their key areas 
of technology.136 It aims to make it easier for sma ll business to access innovation and technology 
generated by the public research sector. The IP Toolkit is another initiative , aimed at facilitating 
collaboration between business and public research organi zations.137 It provides tools and model 
contracts fo r the use and management of IP in public -private collaborations.  
3.166.   During the review period, the Productivity Commission (PC) completed a public enquiry into 
Australia's IP system, publishing its final report in December 2016.138 The PC report made a number 
of recommendations aimed at providing an appropriate balance between access to ideas and 
products, and encouraging innovation, investment and the production of creative works, with the 
overarching objective of maximi zing community wellbeing. A number of thes e recommendations are 
aimed at supporting the needs of SMEs within the IP system.139 The Government decided to 
implement its legislative response to the PC recommendations in a staged manner. Part 1 of its 
response was enacted on 24 August 2018.140 The Governm ent introduced Part  2 into Parliament on 
25 July 2019.141 
3.167.   In the TRIPS Council, Australia shared information and its national experiences in the 
implementation of policies to streamline IP in the economy: public -private collaboration on 
innovation142; IP and n ew businesses143; inclusive innovation with SMEs, collaboration, growth and 
                                                
130 IP Summit 2019. Viewed at:  https://ipsummit.ipaustralia.gov.au/ . 
131 IP Australia, Protecting your IP overseas – a specialist whitepaper . Viewed at: 
https://www.ipaustralia.gov.au/about -us/news -and-community/blog/ protecting -your-ip-overseas -specialist -
whitepaper . 
132 See IP Australia, Taking your IP Global . Viewed at: https://www.ipaustralia.gov.au/understanding -
ip/taking -your-ip-global . 
133 IP Australia, Free patent analytics to support your international patent application.  Viewed at:  
https://www.ipaustralia.gov.au/about -us/news -and-community/news/trial -provide -key-insights -support -your-
international -patent . 
134 IP Australia, IP Counsellor to China . Viewed at:  https://www.ipaustralia.gov.au/ip -counsellor -china . 
135 For discussion of these barriers see, Parliament, Australian Government Funding Arrangements for 
non-NHMRC Research . Viewed at: 
https://www.aph.gov.au/Parliamentary_Business/Committ ees/House/Employment_Education_and_Training/Fu
ndingResearch/Report . 
136 IP Australia, About Source IP. Viewe d at: https://sourceip.ipaustralia.gov.au/about . 
137 IP Australia, IP Toolkit.  Viewed at: https://www.ipaustralia.gov.au/tools -resources/ip -toolkit . 
138 PC, Intellectual Property Arrangements . Viewed at: 
https://www.pc.gov.au/inquiries/completed/intellectual -property/report . 
139 See, for example, recommendations 8.1, 19.2  
140 Intellectual Property Laws Amendment (Productivity  Commission Response Part 1 and Other 
Measures) Act, 2018  (Cth).  
141 Intellectual Property Laws Amendment Bill (Productivity Commission Response Part 2 and Other 
Measures) Bill , 2019 (Cth).  
142 WTO document IP/C/M/91/Add.1, 2 April 2019.  
143 WTO document IP/C/M/ 90/Add.1, 15 January 2019.  WT/TPR/S/ 396 • Australia  
 
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  trade144; regional innovation policies145; and sustainable resource and low -emission technology 
strategies .146 
3.3.7.4   Institutional and registration issues  
3.168.   IP Australia, under the DIIS, is responsible for the administration of patents, trade marks, 
designs and plant breeders ' rights. It operates independently , and recovers more than 95% of its 
costs by charging fees for services rendered.147 IP Australia advise s the DFAT on issues relating to 
patents, trade marks, designs and plant breeders ' rights during negotiations of free trade 
agreements, as well as in the design and implementation of development cooperation programmes 
to promote a harmonized global IP syst em. 
3.169.   The Advisory Council on Intellectual Property and the Plant Breeders' Rights Advisory 
Committee were abolished in 2015 and 2018 , respectively. However, in 2018 , IP Australia 
established the Plant Breeders ' Rights Consultation Group. This Group joined I P Australia 's existing 
Patents Consultation Group and Trade Marks and Designs Consultation Group and , together , these 
three consultation groups cover key IP rights areas.148 These consultation groups enable stakeholder 
consultation, discussion and information exchange on issues relating to the Australian IP rights 
system which could impact on policy, practice and legislation in Australia. These consultation groups 
support IP Australia in the delivery of new and improved services that are responsive to stakeholder 
needs and that build trust within the industry. In addition, the Department of the Communications 
and the Arts has responsibility for administration and policy in rel ation to the Copyright Act , 1968 
and the Circuit Layouts Act , 1989.  
3.170.   Australia and New Zealand established a single regulatory framework for patent attorneys, 
which came into effect on 24 February 2017.149 The regime is intended to provide efficiencies in the  
registration of patent attorneys , and encourage consistency across jurisdictions. It  forms part of the 
Single Economic Market (SEM) agenda, which aims to provide a seamless trans -Tasman business 
environment.  
3.171.   IP Australia has agreements with the IP offices  of Korea , Republic of; New Zealand ; the 
United  States ; and Thailand, among others, to act as an International Searching Authority and 
International Preliminary Examining Authority for Patent Cooperation Treaty (PCT) applications filed 
in the receiving off ices of those countries.150 In the Asia -Pacific region, IP Australia holds a 
comprehensive online patent examination training programme for overseas IP offices, known as the 
Regional Patent Examination Training program me. 
3.3.7.5   Industrial property  
3.3.7.5.1   Patents  
3.172.   The Pate nts Act , 1990, last amended in 2018, provides protection for standard patents and 
innovation patents, with terms of 20 years (up to 25 years for eligible pharmaceuticals) and 8 years , 
respectively. Several amendments were made to the Patents Act during the  review period. The 
Intellectual Property Laws Amendment Act , 2015 (IPLA 2015) amended the Patents Act to give effect 
to Australia's obligations under the TRIPS Protocol. The amendments enable Australian medicine 
producers to apply to the Australian Federa l Court for a compulsory licence to manufacture and 
                                                
144 WTO documents IP/C/M/88/Add.1, 12 April 2018; IP/C/M/87/Add.1, 7 February 2018; 
IP/C/M/86/Add.1, 12  September  2017; and IP/C/M/85/Add.1, 7 June 2017.  
145 WTO document IP/C/M/83/Add.1, 30 January 2017.  
146 WTO document IP/C/M/82/Add .1, 1 September 2016.  
147 IP Australia recovered 98% of its costs in 2015 -16 – see DIIS, IP Australia, Cost Recovery 
Implementation Statement 2016 -17. Viewed at: 
https://www.ipaustralia.gov.au/sites/default/files/reports_publications/cost_recovery_implementation_stateme
nt_-_ip_australia_ -_2016 -2017.pdf . 
148 IP Australia , Consultation Groups . Viewed at: https://www.ipaustralia.gov.au/about -us/doing -
business -us/consultation -groups . 
149 IP Australia , Consultation Groups . Viewed at: https://www.ipaustralia.gov.au/about -us/doing -
business -us/consultation -groups . 
150 IP Australia, Global engagement . Viewed at: https://www.ipaustralia.gov.au/about -us/global -
engagement . WT/TPR/S/ 396 • Australia  
 
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  export patented pharmaceuticals to eligible importing countries.151 The IPLA 2015 also established 
a single trans -Tasman patent attorney regime for Australia and New Zealand, as part of the original 
broader  SEM agenda.  
3.173.   The Intellectual Property Laws Amendment (Productivity Commission Response Part 1 and 
Other Measures) Act 2018 (IPLA 2018) implemented Part 1 of the Australian Government's response 
to the PC Report. The Act removed a requirement for patentees  who receive a patent term extension 
to provide the Department of Health with information regarding the costs of  R&D. The original policy 
objective of this requirement was to provide data for the Government to use , to determine whether 
patent term extensio ns were serving their purpose in incentivising local R&D. However, it was often 
not complied with, and alternative sources of data are now available that can provide the same type 
of information.152 The IPLA 2018 also introduced a number of administrative an d technical 
amendments intended to streamline and align the administration of Australia's IP systems.  
3.174.   Part 2 of the Government's PC response proposes substantial amendments to the Patents 
Act. These include the introduction of an objects clause , to clarify  its underlying purpose and ensure 
it remains adaptable and fit  for purpose; the improvement and clarification of Crown -use provisions; 
and the amendment of the test for grant of a domestic compulsory licence (see below). The 
Government introduced Part  2 into Parliament on 25 July 2019.153 
3.175.   The Government also proposes to abolish the innovation patent system in Part 2 of the its 
PC response. The innovation patent was introduced as a second -tier patent in 2001 , and was 
intended to promote innovation by SMEs. Th e PC, in its report, found that the majority of SMEs who 
use the innovation patent system do not obtain value from it, and that the system imposes significant 
costs on third  parties and the broader Australian community by creating a proliferation of low -
quality, low -value patents.154 The Government considers that more targeted assistance, as described 
above, will better achieve its objective of stimulating SME innovation, without the costs of the 
innovation patent system.  
3.176.   The PC report found that, despite sub stantial reforms to the Patents Act in 2012, Australia 
still applies a less rigorous test for obviousness than the European Patent Office, and that a robust 
case exists for raising the inventive step threshold further to reduce the proliferation of low -quality 
patents.155 In its official response, the Government supported the PC's recommendations, but 
decided to undertake further analysis and consultation before introducing such measures.156 The 
Government has not given a timeframe for when this will occur.  
3.177.   In D'Arcy v Myriad Genetics Inc157, the Australian High Court clarified the test of 
patentability, finding that the BRCA1 gene subject of Myriad's patent application was not patentable 
as such because it was a naturally occurring phenomenon which lacked the qua lity of inventiveness 
necessary to qualify as a manner of new manufacture. The majority found that the test for manner 
of manufacture established by previous judicial authority158 was not intended as an exhaustive verbal 
formula, that it should be approached  on a case -by-case basis, and that purposive or policy factors 
– such as the potential chilling effect on downstream innovation of the recognition of a new class of 
patentable subject matter – may play a part in its application to new classes of technology .159 
3.178.   Since 1980 , there are two ways to apply for a standard patent in Australia: either directly 
with IP Australia, or through an international filing system under the PCT. In 2018, IP Australia 
                                                
151 Patents Act, 1990 (Cth), Chapter 12, Part III.  
152 IPLA 2018 Explanatory Memorandum, p. 28.  
153 Intellectual Property Laws Amendment Bill (Productivity Commission Response Part 2 and O ther 
Measures) Bill , 2019 (Cth).  
154 Intellectual Property Arrangements – Productivity Commission Inquiry Report , Australian 
Government Productivity Commission, No. 78, 23 September 2016, Overview & Recommendations, pg. 17.  
155 PC, Intellectual Property Arrangements , pg. 15. Viewed at: 
https://www.pc.gov.au/inquiries/completed/intellectual -property/report . 
156 IP Australia, Amend the level of inventive step . Viewed at: https://www.ipaustralia.gov.au/policy -
register/amend -level-inventive -step. 
157 [2015] HCA 35 . 
158 National Research Development Corporation v Commissioner of Paten ts [1959] HCA 67.  
159 [2015] HCA 35 , at [5], [20], [24], [26], [28].  WT/TPR/S/ 396 • Australia  
 
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  received 29,957 standard patent applications, an increase of ov er 3% compared with 2017.160 Of 
these, 91% were filed by non -residents, with the United States, Japan, Germany and the 
United  Kingdom the top f our sources of patent filings. With 3,663 patent applications, up 8% from 
2017, medical technology was the leading field in 2018. Applications for biotechnology and 
pharmaceuticals also grew strongly. Civil engineering, by contrast, saw a sharp decline. These  trends 
are consistent with global changes, such as an ageing population and the consequent growing 
demand for medical goods and services, as well as technology life cycles.  
3.179.   The Federal Court of Australia may order the granting of a compulsory licence if i t is satisfied 
that the applicant has tried for a reasonable period, without success, to obtain authorization from 
the patentee, the reasonable requirements of the public have not been met in relation to the 
invention, and the patentee has not given a sati sfactory reason for failing to exploit the patent.161 
Compulsory licences may also be made available where the Court is satisfied that the patentee is 
engaging in restrictive trade practices in contravention of Australian competition law.162 To date, a 
compuls ory licence has never been granted in Australia , and applications for compulsory licences 
are seldom made.163 
3.180.   Following a number of reviews into compulsory licensing,164 the Government proposes to 
amend the compulsory licensing provisions to replace the "reaso nable requirements of the public 
test" – which is currently defined by reference to the interests of Australian trade or industry165 – 
with a "public interest" test. This intend s to provide clarity and ensure that the provisions serve their 
original objectiv e of promoting community -wide welfare.  
3.181.   The Government considers that world -wide high -quality IP examination based on 
internationally  agreed standards is in the interests of Australian businesses, and has , accordingly, 
committed to improving the quality of its patent examination.166 As part of this commitment, 
IP Australia provides a comprehensive, flexible training program me for patent examiners - the 
Self-paced Training for Examiners of Patents program me. A number of the Government 's legislative 
responses to  the PC Report are also directed to improving the quality of Australian patents.167 
3.3.7.5.2   Trade marks  
3.182.   The Trade Marks Act , 1995, last amended in 2018, provides for the registration of trade 
marks, collective trademarks, certification trademarks and defensive trade marks. Under the Act, 
registered trademarks are protected for ten years and can be renewed indefinitely upon payment of 
the appropriate renewal fee. The IPLA 2018 amended the Trade Marks Act to clarify and broaden 
the circumstances in which the parallel im portation of trade marked goods does not infringe a 
registered trade mark. The aim of the amendments was to better meet the objective of facilitating 
the parallel importation of goods into Australia to the benefit of consumers by limiting the strategic 
use of restrictions by registered trade mark owners.168 The IPLA 2018 also reduced the period from 
five years to three  years before a new trademark registration can be challenged for non -use, in order 
                                                
160 IP Australia,  IP Report 2019 – Patents . Viewe d at: https://www.ipaustralia.gov.au/ip -report -2019-
patents . 
161 Patents Act, 1990 (Cth), Section 133.  
162 See Patents Act, 1990 (Cth), Section 133(2)(b); Competition and Consumer Act, 2010 (Cth), 
Chapter  IV. 
163 IP Australia, Public Consultation: Compulsory Licensing of Patents , August 2017 . Viewed at: 
https://www.ipaustralia.gov.au/sites/g/files/net856/f/compulsory_licensing_of_patents.docx . 
164 See, for example, Productivity Commission Inquiry Report,  2013, Compulsory Licensing of Patents ; 
IP Australia, Public Consultation: Compulsory Licensing of Patents  (August 2017).  
165 Patents Act, s 135.  
166 IP Australia , User account . Viewed at:  https://www.ipaustralia.gov.au/about -us/news -and-
community/news/improving -quality -patent -examination -globally . 
167 See Intellectual Property Arrangements – Productivity Commission Inquiry Report , Austral ian 
Government Productivity Commission, No. 78, 23 September 2016, Overview & Recommendations, in 
particular recommendations 7.2, 8.1; see also Australian Government Response to the Productivity 
Commission Inquiry into Intellectual Property Arrangements , August 2017, responses 7.2 and 8.1.  
168 Explanatory Memorandum to the Intellectual Property Laws Amendment (Productivity Commission 
Response Part 1 and Other Measures) Bill , 2018, pg. 13. Viewed at: 
https://parlinfo.aph.gov.au/parlInfo/download/legislation/ems/r6080_ems_74977042 -bfb1-4233-be9c-
b93118431f48/upload_pdf/668425.pdf;fileType=ap plication%2Fpdf . WT/TPR/S/ 396 • Australia  
 
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  to better align Australia's non -use provisions with internat ional standards and as a measure to help 
prevent cluttering of the trade mark register.169 
3.183.   In Cantarella Bros v Modena Trading170, the High Court of Australia held that the capability 
of a foreign word to distinguish relevant goods and services must be assesse d by determining the 
ordinary meaning of the word to its target audience, being ordinary purchasers, consumers and 
traders of the goods. The High Court found the words Oro and Cinque Stelle (meaning "gold" and 
"five stars" in Italian, respectively) were in herently adapted to distinguish coffee and related 
products.  
3.184.   Trade mark applications can be lodged in Australia , either directly or through WIPO's Madrid 
system. In 2018, applications grew by 4% , to a record high of 79,490. As in 2017, this growth was 
entirely due to an increase in filings by non -residents, which increased by 11%. Resident applications 
fell by less than 1%. Total direct applications increased by 1%, while Madrid applications continued 
their strong growth, with an increase of 13%. The Madrid  share of total applications is now at its 
highest ever level, at 22%. The share of non -resident applications increased from 32% in 2009 to 
42% in 2018. The United States, China, the United Kingdom and Germany are the largest sources 
of non -resident applic ations.171 Applications concentrated on the following Nice classes: 
technological and electrical apparatus (Class 9); advertising (Class 35); education, training and 
entertainment (Class  41); scientific and technological services  (Class 42); and clothing, fo otwear 
and headgear (Class 25).  
3.3.7.5.3   Industrial designs  
3.185.   The Designs Act , 2003, last amended in 2018, provides for an initial registration of five years 
from the filing date of the application , and for a single renewal for a further five years, i.e. a 
maximum te rm of ten years. The IPLA 2015 and IPLA 2018 repealed unnecessary document 
retention provisions, streamlined the Designs Act , and aligned it with Australia's other IP systems. 
Part 2 of the Government's response to the PC Report proposes to improve and cla rify the operation 
of the Designs Act. The Government introduced Part  2 into Parliament on 25 July 2019.172 
3.186.   In May 2015, the Advisory Council on Intellectual Property (ACIP) released its report on its 
review of the designs system, which made various recommen dations aimed at improving the 
effectiveness and efficiency of the designs regime.173 The Government accepted a number of these 
recommendations, including the introduction of a grace period and a prior user defence. Subject to 
other priorities, it anticipate s introducing a bill implementing the recommendations no later than 
2020.174 
3.187.   At the recommendation of the ACIP, IP Australia undertook an economic analysis of the cost 
and benefits of Australia joining the Hague Convention for designs.175 By joining the Hague 
Agreement, Australia would need to extend the term of protection for designs from 10 to at least 15 
years. In December 2018, IP Australia estimated that the net present cost to Australia of joining the 
Hague Agreement would be between AUD  17.9 million and AUD 87.3 million over ten years (with 
AUD 43.1 million being the best estimate).176 IP Australia will continue to monitor the Hague 
                                                
169 IP Australia, IP Report 2019, Trade marks: is Australia’s register cluttered . Viewed at: 
https://www.ipaustralia.gov.au/ip -report -2019-trade -marks -australias -register -cluttered . 
170 [2014] HCA 48.  
171 IP Australia, IP Report 2019 – Trade marks . Viewed at: https://www.ipaustralia.gov.au/ip -report -
2019-trade-marks . 
172 Intellectual Property Laws Amendment Bill (Productivity Commission Response Part 2 and Other 
Measures) Bill , 2019 (Cth).  
173 ACIP, Review of the Designs System , March 2015 . Viewed at: 
https://www.ipaustralia.gov.au/sites/g/files/net856/f/acip_designs_final_report.pdf . 
174 IP Australia , Introduce grace period for designs and a prior user defence . Viewed at: 
https://www.ipaustralia.gov.au/policy -register/introduce -6-month -grace -period -designs -and-prior-user-
defence ; and  Policy register. Viewed at:  https://w ww.ipaustralia.gov.au/policy -register . 
175 IP Australia, The Hague Agreement Concerning the International Registration of Industrial Designs: A 
cost-benefit analysis for Australia , March 2018 . Viewed at: 
https://www.ipaustralia.gov.au/sites/default/files/2018 -03-27_hague_agreement_economic_analysis_report_ -
_for_consultation_v3.pdf . 
176 IP Australia, IP Australia's resp onse: Public consultation on the Hague Agreement: A cost -benefit 
analysis for Australia, December 2018 . Viewed at: 
https://www.ipaustralia.gov.au/sites /default/files/hague_economic_analysis_ -_final_2.pdf . WT/TPR/S/ 396 • Australia  
 
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  Agreement landscape, including the impact of recent and future members such as Canada and China. 
It has stated that the econom ic analysis is only one piece of evidence , and does not preclude a 
decision to join the Hague Agreement based on other policy considerations.177 
3.188.   In 2018, IP Australia received a record 7,816 applications for registered designs. 
Non-residents accounted for 60% of total design applications in 2018. The United States remains 
the largest source of non -resident applications, followed by China and the United Kingdom. The 
highest number of design applications were filed under the following Locarno cl asses: means of 
transport or hoisting (Class 12), which encompasses all land, sea, air and space vehicles including 
their component parts and accessories; and articles of clothing and haberdashery (Class 2).178 
3.3.7.5.4   Protection of plant varieties  
3.189.   The Plant Breeder s' Rights (PBR) Act , 1994 provides exclusive rights over new varieties of 
plants that are distinguishable, uniform and stable. The PBR Act also extends protection in some 
circumstances to recently exploited varieties, essentially derived varieties, dependa nt varieties and 
harvested material. PBRs last for 25 years in the case of trees and vines, and 20 years for any other 
variety.179 
3.190.   The IPLA 2015 extended the jurisdiction of the Federal Circuit Court (a lower court of Federal 
jurisdiction) to include PBR mat ters, in order to provide farmers, nursery owners and others who 
work with PBRs with a simpler and more cost -effective means of enforcing their rights. The IPLA 
2018 made several changes to strengthen enforcement procedures under the PBR Act. These include  
giving courts the power to award additional damages (bringing the PBRs in line with other IP rights) 
and allowing an exclusive licensee of a PBR to bring proceedings for infringement.  
3.191.   Under the PBR Act, where a PBR is granted in relation to an initial variety, and a second 
variety has only minor changes compared with the initial variety, the owner of the initial variety may 
seek a declaration that the second variety is an Essential Deri ved Variety (EDV). If an EDV 
declaration is made, the owner of the second variety may not exercise any exclusive rights in that 
variety without the consent of the owner of the initial variety. In practice, this usually results in a 
licence agreement betwee n the two owners. The EDV provisions give effect to Australia's obligations 
under Article 14(5) of International Convention for the Protection of New Varieties of Plants , 1991, 
and aim to reduce the incentive for free -riding on the efforts of original bree ding, without limiting 
the scope for follow -on innovation. The IPLA 2018 amended the PBR Act to fix a loophole in the EDV 
provisions, ensuring that EDV declarations are available even where the second variety is not the 
subject of a granted PBR or a PBR ap plication.  
3.192.   Enforcement of PBRs is generally the responsibility of the rights holder through civil 
procedures, and Customs has no seizure powers at the border. However, PBR owners may seek an 
injunction from a court requiring Customs to suspend the release  of a specific consignment 
containing suspected infringing goods.  
3.193.   In 2018, 384 PBR applications were filed, an increase of 12%, returning to their 2016 level. 
In the same year, 222 applications were registered, a fall of 9%, from 245 in the previous year. Two 
plant groups, ornamentals and fruit crops, were the strongest performers in both applications and 
registrations. Fruit crops comprised 39% of applications and 18% of registrations. Ornamental plant 
varieties accounted for 28% of applications and 48% of  registrations. Non -resident applications 
accounted for 57% of total applications in 2018. The United States was the largest source, filing 
almost a quarter of the applications, followed by the Netherlands.180 
                                                
177 IP Australia , IP Australia's response to public consultation on the Hague Agreement . Viewed at: 
https://www.ipaustralia.gov.au/about -us/public -consultations/ip -australias -response -public -consultation -
hague -agreement . 
178 IP Australia , IP Report 2019, Designs . Viewed at: https://www.ipaustralia.gov.au/ip -report -2019-
designs . 
179 Plant Breeders ' Rights Act , 1994 (Cth), Section 22.  
180 IP Australia , IP Report 2019, Plant Breeder's Rights . Viewed at: https://www.ipaustralia.gov.au/ip -
report -2019-plant-breeders -rights . WT/TPR/S/ 396 • Australia  
 
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  3.3.7.5.5   Geographical indications  
3.194.   Geographical indication s (GIs) are protected through the Trade Marks Act, which allows for 
the registration of GIs as certification trade marks (CTMs), provided that certain criteria are met. 
The period of trade mark protection of GIs is ten years from the filing date, renewable  indefinitely if 
fees are duly paid. If a GI is not renewed, it will lapse and protection will cease.181 The Australia New 
Zealand Food Standards Code also contains prohibitions on infringement of GIs for spirits.182 
Protection is also provided through labelli ng legislation, such as the Commerce Trade Descriptions 
Act, 1905, which prohibits the use of false trade descriptions on labelling.  
3.195.   In addition, the Wine Australia Act, 2013 establishes  a separate framework for both 
Australian and foreign wine GIs. Under this legislation, Wine Australia (formerly the Australian Grape 
and Wine Authority) maintains a Register of Protected Names and other Terms, which contains a list 
of GIs and traditional wine terms that are protected under Australian law.183 The Register curr ently 
includes over 100 Australian and more than 2,000 European wine GIs, including terms recognized 
through the 2008 Agreement between Australia and the European Community on Trade in Wine.184 
3.196.   Wine Australia's Geographical Indications Committee determines a pplications for the 
registration of new Australian and foreign wine GIs. The Wine Act, together with the Wine 
Regulations, set out the criteria for the determination of new wine GIs, including the grounds for 
objection by third parties, as well as the circ umstances in which GIs may be omitted from the 
Register. A person may object to an application for the registration of a wine GI on the basis of 
pre-existing trade mark rights, or on the grounds that the name of the GI was already in common 
use as the comm on name of a type or style of wine or as the name of a variety of grapes.185 A 
person may apply for the omission of a pre -existing GI from the Register on the grounds that the GI 
is not in use in Australia, that the GI is no longer required (for Australian G Is only) or that the GI is 
not protected in its country of origin and not in use in Australia.186 
3.197.   The Wine Regulations were introduced in 2018 to replace the Australian Grape and Wine 
Authority Regulations, 1981. They clarify the test for determination of a wine GI, without changing 
its substance. The Wine Regulations also introduced an exemption from the false description 
provisions under the Wine Act for the use of certain grape variety names that are also GIs.187  
3.198.   GIs may also receive protection under Austra lian Consumer Law188, which prevents 
misleading and deceptive practices, and under the common law of passing off.  
3.199.   In 2018, Australia commenced negotiations with the European Union regarding a proposed 
free trade agreement, the objectives of which include add ressing the protection of GIs in a mutually 
acceptable way.189 In the context of these negotiations, the Government established a public 
objections procedure concerning a list of terms proposed by the European Union for protection as 
GIs in Australia190, again st a background of concern expressed by some industry sectors about the 
potential impact of increased GI protection.191 
                                                
181 IP Australia , Geographical indications . Viewed at:  https://www.ipaustralia.gov.au/trade -
marks/understanding -trade-marks/types -trade-marks/certification -trade -mark/geographical . 
182 Australia New Zealand Food Standards Co de – Standard 2.7.5.4.  
183 Wine Australia, Register of Protected GIs and Other Terms. Viewed at:  
https://www.wineaustralia.com/labelling/register -of-protected -gis-and-other -terms . 
184 DFAT, Registration of geographical indications in Australia . Viewed at: 
https://dfat.gov.au/trade/organisations/w to/intellectual -property/Pages/ip -geographical -indications.aspx . 
185 Wine Act, Section 40RB , Wine Regulations, Part 7, Division 2.  
186 Wine Act, Division 4A, Wine Regulations, Part 8, Divisions 2 and 3.  
187 Wine Regulations, Section 30.  
188 Competition and Consumer Act, 2010, Schedule 2, Section 18.  
189 DFAT Australia -European Union Free Trade Agreement: Objectives . Viewed at: 
https://dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/australia -european -union -fta-objectives.aspx .  
190 DFAT, List of EU FTA Geographical Indications.  Viewed at: 
https://dfat.gov.au/trade/agreements/negotiations/aeufta/public -objections -gis/pages/list -of-european -union -
geographic -indications -gis.aspx . 
191 Weekly Times, Government urged to resist EU plan to enforce geographic indications , Peter Hempill, 
19 February 2019. Viewed at: https://www.weeklytimesnow.com.au/agribusiness/dairy/government -urged -to-
resist -eu-plan-to-enforce -geographic -indicators/news -story/ed4c39ad8e5a069ebd5e62380606f2 65. WT/TPR/S/ 396 • Australia  
 
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  3.3.7.5.6   Undisclosed information and trade secrets  
3.200.   During the review period, no changes were made to the law in relation to undisclosed 
information  and trade secrets, which are protected under common law and by equity.  
3.3.7.5.7   Circuit layouts  
3.201.   The Circuit Layouts Act remains the main law for the protection of layout designs 
(topographies) of integrated circuits. A layout design is protected for 10 years from its first 
commercial exploitation, and if not exploited, 10 years from when it was made, i.e. maximum 
protection of 20 years. The Circuit Layout Amendment Regulations, 2003 contain the list of eligible 
countries to which Australia extends reciprocal protec tion of circuit layouts designs. They were last 
amended in 2008 to ensure that eligible foreign countries are Members of the WTO. This mechanism 
enables the Regulations to self -update each time a new Member joins the WTO. No changes to the 
Australian circu it layouts regime took place during the review period.  
3.3.7.5.8   Copyright  
3.202.   The Copyright Act, 1968, last amended in 2018, protects original dramatic, musical and 
artistic works, as well as sound recordings, films, television and sound broadcasts, and published 
editions of works. Copyright for literary, dramatic, musical and artistic works generally lasts for the 
author's life plus 70 years, or, if the identity of the author is not known, 70 years from the first 
publication of the work. Copyright for films and sound r ecordings lasts 70 years from their 
publication, whereas copyright in a television or sound broadcast lasts for 50 years from the date of 
the broadcast.192 Copyright is granted automatically where the substantive requirements are 
fulfilled.  
3.203.   A 2018 survey cha rted the changes in digital content consumption since 2015, with a 
significant rise in content streaming for music, television and cinematic works against a smaller drop 
in downloaded consumption.193 The same survey showed a rise in the consumption of exclus ively 
lawful digital content from 57% in 2015 to 67% in 2018. The report observes that quality, 
convenience and price are the key differentiating factors which motivate consumers to use paid 
services rather than consume unlawful content.  
3.204.   During the review period, the Government introduced key reforms to reduce online copyright 
infringement. The Copyright Amendment (Online Infringement) Act, 2015 (CAA 2015) amended the 
Copyright Act to enable copyright owners to apply to the Federal Court of Australia for a "blocking 
injunction" - an order requiring a Carriage Service Provider (CSP) to block access to an online location 
outside Australia that has a primary purpose of infringing copyright or facilitating the infringement 
of copyright. The Copyright Amendment ( Online Infringement) Act 2018 (CAA 2018) strengthened 
the blocking injunction provisions, extending them to websites which have the primary effect of 
infringing or facilitating the infringement of copyright, making injunctions available against search 
engine providers, introducing a rebuttable presumption that the online location is outside Australia, 
and providing a mechanism for copyright owners and CSPs to subsequently agree to block other 
related domains. These amendments respond to specific concerns ra ised by copyright owners, and 
address the difficulties in taking direct enforcement action against entities operating outside 
Australia. Since the enactment of the CAA 2015, blocking injunctions have been granted on a number 
of occasions, including in rela tion to the "Pirate Bay" website.194 
3.205.   The Copyright Amendment (Disability Access and Other Measures) Act, 2017 improved 
access to copyright materials for libraries, archives and educational institutions, as well as persons 
with disabilities and those assistin g them, implementing Australia's obligations under the Marrakesh 
Treaty. In addition, the Copyright Amendment (Service Providers) Act, 2018 extended safe harbour 
defences in the Copyright Act to a broad range of service providers in the disability, educati onal and 
                                                
192 Copyright in published editions lasts for 25 years from the date of publication.  
193 Department of Communications and the Arts, New online copyright research released. Viewed at: 
https://www.communications.gov.au/departmental -news/new -online -copyright -research -released -2018. 
194 See Roadshow Films Pty Ltd v Telstra Corporation [2016] FCA 1503 (Pirate bay); Roadshow Films Pty 
Ltd v Telstra Corporation Limited [2017] FCA 965; Foxtel Management Pty Limited v TPS Internet Pty Ltd 
[2017] FCA 1041; and Roadshow Films Limited v Telstra Corporation Limited [2018] FCA 582 . WT/TPR/S/ 396 • Australia  
 
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  cultural sectors, limiting the remedies that are available against them for online copyright 
infringement provided certain criteria are met.195 
3.206.   The Copyright (International Protection) Amendment Regulations, 2018 (CAR 2018) updated 
the protection pr ovided to foreign countries under Australia's copyright law, in accordance with its 
treaty obligations and its commitment to protecting international sound recordings and broadcasts. 
CAR 2018 extends protection under the Copyright Act to Malaysian encoded broadcasts, pursuant 
to Australia's obligations under the Malaysia -Australia FTA. In addition, it extends protection for 
secondary uses of sound recordings (i.e. the rights to broadcast and communicate to the public) to 
recordings from 32 other countries196, which were determined upon review to provide reciprocal 
protection.197 
3.207.   The Copyright Act provides "fair dealing" exceptions to infringement for certain prescribed 
purposes, including research or study, criticism or review, parody or satire, and reporting ne ws.198 
A broader, principles -based fair -use exception was recommended by the PC in its 2016 report.199 In 
its official response to the report, the Government noted the recommendation, and resolved to 
publicly consult on more flexible copyright exceptions, stat ing its intention to create a modernized 
copyright exceptions framework that keeps pace with technological advances and is flexible to adapt 
to future changes.  
3.208.   In 2018, the Government undertook public consultations on options for modernizing 
Australian cop yright law. A discussion paper, focusing on flexible exceptions, contracting out of 
copyright exceptions, and access to orphan works, was released in March 2018.200 The Government 
is continuing to consider copyright reform measures.  
3.209.   During the review period,  the Government also reviewed the extent to which Australia's 
Voluntary Code of Conduct for Copyright Collecting Societies promotes fair and efficient outcomes 
for copyright owners and users.201 The Code was introduced in 2002 to regulate the behaviour of 
Australia's copyright collecting societies, and provide protections for their members and licensees. 
The Government released its final report in April 2019.202 It found that the Code had a positive effect 
on the conduct and operation of collecting societies, a nd recommended some incremental changes 
to increase clarity and transparency and strengthen the Code's governance arrangements.  
3.3.7.6   Parallel importation  
3.210.   The Government considers that parallel imports increase competition, ultimately benefitting 
consumers and t he market.203  
3.211.   The Trade Marks Act provides a defence for the parallel importation of trade marked goods. 
After a number of Court decisions narrowly interpreted the scope of the defence,204 the defence was 
clarified and broadened by the IPLA 2018.205 The previous defence was limited in its scope and 
                                                
195 Copyright Act, Part V, Division 2AA . 
196 See Schedule 3 of CAR 2018 for a list of these countries . 
197 In particular, the Rome Convention and the WIPO Performances and Phonograms Treaty . 
198 See Copyright Act Part III, Division 3 . 
199 Intellectual Property Arrangements – Productivity Commission Inquiry Re port, Australian 
Government Productivity Commission, No. 78, 23 September 2016, Overview and Recommendations, pg. 9 . 
200 Department of Communications and the Arts, New online copyright research released. Viewed at:  
https://www.communications.gov.au/file/34991/download?token=AseAjJWg . 
201 Department of Communications and the Arts, Review of the Code of Conduct for Copyright Collecting 
Societies. Viewed at: https://www.communications.gov.au/departmental -news/review -code-conduct -copyright -
collecting -societies -0. 
202 Department of Communications and the Arts, Review of the Code of Conduct for Copyright Collecting 
Societies. Viewed at: https://www.co mmunications.gov.au/departmental -news/review -code-conduct -copyright -
collecting -societies -0. 
203 See IPLA 2018, Explanatory Memorandum, pg. 2 . 
204 See, for example, Paul's Retail Pty Ltd v Lonsdale Australia Limited [2012] FCAFC 130, Paul's Retail 
Pty Ltd  v Spo rte Leisure Ptd Ltd [2012] FCAFC 51 . 
205 The Trade Marks Act now provides a defence to the importation of trade marked goods where a 
reasonable person, after making reasonable enquiries, would have concluded that the trade mark had been 
applied to the goods by the registered owner, an authorized or permitted user of the register owner, a person 
with significant influence over the trade mark owner, or an associated entity of any of the above - see Trade 
Marks Act, Section 122A . WT/TPR/S/ 396 • Australia  
 
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  clarity, and this permitted the use of various corporate or contractual arrangements that subvert the 
policy intent of allowing parallel imports. The amendments limit the ability of trade mark owners to 
circumvent the defence, and are intended to ensure that it better meets its objective of facilitating 
parallel importation to the benefit of consumers. Where there is some commercial, corporate or 
contractual relationship of control or influence between the registered owner of the trade mark in 
Australia and the party that put the goods on the market, then the goods would be considered 
genuine parallel imports and the importer would be able to benefit from the defence.206 
3.212.   The Copyright Act also permits parallel  importation of most kinds of protected subject 
matter, notable exceptions being books and films. A number of government reviews recommended 
the repeal of parallel importation prohibitions for books, including, most recently, the PC report in 
2016.207 Accord ing to the authorities, the Government has consulted with the book industry. The 
industry has driven reforms that have resulted in Australian books being more competitively priced 
and supplied to Australian consumers within reduced time -frames of 14 days o r less. These 
developments are being monitored by the Government.  
3.213.   In relation to patents and designs, the general principle is that the legitimate purchase of 
patent or design -protected goods confers upon the purchaser an implied licence to deal with the 
goods as s/he sees fit. However, this licence may be restricted by certain conditions attached to the 
sale.208 In practice, this means that parallel importation of designs and patents may easily be 
prevented by rights owners who label or package products  in a way that places purchasers on notice 
that the products must not be imported into Australia.209 In addition, where a purchaser acquires 
products from a person who does not have the right to sell them in Australia – such as a licensee in 
another country – the purchaser likewise will not be entitled to an implied licence to sell the goods 
in Australia; the generally accepted position is that the person cannot acquire a greater right to deal 
in the products than that which the seller possessed.210 These pract ices are based on practitioner 
reports, as there has been little judicial consideration of the international exhaustion of patent and 
design rights in Australia.  
3.3.7.7   Enforcement  
3.214.   In Australia, IP right (IPR) holders may enforce their IPRs against infringers by civil action. 
IP matters are usually brought before the Federal Court of Australia, and may also be brought before 
the state and territory Supreme Courts. In its 2016 report, the PC noted that Australia's IP 
enforcement arrangements compare well internatio nally. However, it found that there is room for 
improvement in facilitating access to IP enforcement options for innovative and creative SMEs, which 
are particularly affected by the time and cost of entering into legal proceedings.211 On 1 July 2018, 
the Fed eral Circuit Court launched the Intellectual Property National Pilot Scheme, which aims to 
provide an efficient, low -cost forum for the enforcement of IPRs, particularly for SMEs.212 
                                                
206 Explanatory Memorandum to the Intellectual Property Laws Amendment (Productivity Commission 
Response Part 1 and Other Measures) Bill , 2018, pp. 13 -14. Viewed at: 
https://parlinfo.aph.gov.au/parlInfo/download/legislation/ems/r6080_ems_74977042 -bfb1-4233-be9c-
b93118431f48/upload_pdf/668425.pdf;fileType=application%2Fpdf . 
207 Intellectual Property Arrangements – Producti vity Commission Inquiry Report , Australian 
Government Productivity Commission, No. 78, 23 September 2016, Overview & Recommendations, pg. 11 . 
208 National Phonograph v Menck [1911] AC 336 . 
209 AIPPI, Exhaustion of IPRs in cases of recycling and repair of goods . Viewed at: 
https://aippi.org/download/commitees/205/GR205australia.pdf . 
210 AIPPI, Exhaustion of IPRs in cases of recycling and repair of goods . Viewed at: 
https://aippi.org/download/commitees/205/GR205australia.pdf . 
211 See Intellectual Property Arrangements – Productivity Commission Inquiry Report , Australian 
Government Productivity Commission, No. 78, 23 September 2016, Overview and Recommendations, pp. 24 
and 41; and Australian Government Response  to the Productivity Commission Inquiry into Intellectual Property 
Arrangements , August 2017, pg. 24.  
212 Federal Circuit Practice Note No. 1 of 2018 "Intellect ual Property". Viewe d at: 
http://www.federalcircuitcourt.gov.au/wps/wcm/connect/fccweb/gfl/intellectual -property/pd/ . WT/TPR/S/ 396 • Australia  
 
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  3.215.   During the review period some changes were made in IPR enforcement. The IPL A 2018 
introduced protection against unjustified threats of infringement proceedings in the PBR Act, and 
introduced additional damages for unjustified threats of infringement proceedings in the Patents Act, 
1990, the Trade Marks Act, 1990, the Designs Act,  2003, and the PBR Act. The threatened person 
may seek a declaration that the threat is unjustified and an injunction restraining the person making 
the threat from continuing to make such threats. In certain circumstances, damages may also be 
recoverable. The recipient of unjustified threats of trade mark, patent, design or plant breeder's 
rights infringement can now claim additional damages above compensation for loss sustained as a 
result of the threats. The Act also amends the PBR Act to provide a defini tion of exclusive licensee, 
and to allow exclusive licensees to take infringement actions.213 In addition, a new section was added 
to the Trade Marks Act, 1995, which introduces that mere notification of the existence of a registered 
trade mark does not cons titute a threat to bring an action. The same amendment does not apply 
under the patents, designs or plant breeder's rights legislation.  
3.216.   During the review period, key reforms were introduced to make it easier for copyright owners 
to enforce their rights in an online context. A  2018 survey conducted by the Department of 
Communications and the Arts observed a 10% increase in lawfully consumed digital content across 
music, movies, video games and TV programmes, collectively, since 2015, when the reforms were 
introduced.214 
3.217.   Under the Trade Marks Act, the Copyright Act and the PBR Act, counterfeiting and piracy 
constitute criminal offences. The Federal Police and state and territory police agencies have the 
authority to undertake criminal investigations relating to IP matters, with prosecutions conducted 
by the relevant state or Commonwealth or state/territory office of the Department of Public 
Prosecutions. Under the Trade Marks Act, counterfeiting carries a penalty of up to five years' 
imprisonment or a fine up to AUD 115,500. The infringement offence under the PBR Act carries a 
penalty of AUD 105,000.  
3.3.7.8   Border measures  
3.218.   The Australian Border Force (ABF) of the Department of Immigration and Border Protection 
administers border enforcement measures for trade marks and c opyrights. Upon acceptance of a 
Notice of Objection lodged by the IPR owner, the ABF may seize and hold imported goods that 
infringe, or appear to infringe, copyrights or trade marks. The importer must then make a claim for 
release of the seized goods with in ten working days, without which the goods will be forfeited. If the 
importer does make a claim for release, the objector has ten working days to either commence legal 
action, or consent to the release of the goods.215 The IPLA 2018 amended the Copyright A ct and the 
Trade Mark Act to provide the ABF with more flexibility on how seizure notices are issued, and what 
information is to be included on those notices.216 
                                                
213 IP Australia, Intellectual Pr operty Laws Amendment (Productivity Commission Response Part 1 and 
Other Measures) Act, 2018 . Viewed at: https://www.ipaustralia.gov.au/about -us/legislation/ip -
legislation/intellectual -property -laws-amendment -productivity -commission -response -part-1-and-other -
measures -act. 
214 Department of Communications and the Arts, Consumer survey on online copyright infringement 
2018 – Report . Viewed at:  https://www.communications.gov.au/documents/consumer -survey -online -
copyright -infringement -2018-report . 
215 For further information, see, Tr ade Marks Act, Part 13; Copyright Act, Part V, Division 7; and ABF, 
How to import . Viewed at: https://www.abf.gov.au /importing -exporting -and-manufacturing/importing/how -to-
import/types -of-imports/intellectual -property . 
216 Inter alia , the amendments provide the ABF discretion to withhold the address of the objector  in a 
notice of seizure, where goods are seized pursuant t o a notice of objection.  WT/TPR/S/ 396 • Australia  
 
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  3.3.7.9   Standing Committee on Indigenous Affairs  
3.219.   In August 2017, the Standing Committe e on Indigenous Affairs adopted an inquiry into the 
growing presence of inauthentic Aboriginal and Torres Strait Islander "style" art and craft products 
and merchandise for sale across Australia, publishing its final report in December 2018. The report 
made a number of recommendations to restrict the prevalence of these inauthentic products, 
including that IP Australia develop a certification trade mark scheme for authentic First Nations art 
and craft , and that the Government begin consultation to develop s tand-alone legislation protecting 
Indigenous Cultural Intellectual Property (including traditional knowledge and cultural 
expressions).217 The Australian Competition and Consumer Commission (ACCC) has enforced the 
Australian Consumer Law in a number of cases  relating to the sale of inauthentic indigenous art and 
craft products.218
                                                
217 Report on the impact of inauthentic art and craft in the style of First Nations peoples, House of 
Representatives Standing Committee on Indigenous Affairs, December 2018. Viewed at:  
https://www.aph.gov.au/Parliamentary_Business/Committees/House/Indigenous_Affairs/The_growing_presenc
e_of_inauthentic_Aboriginal_and_Torres_Strait_Islander_style_art_and_craft/Report . 
218 ACCC , Court finds that Birubi Art misled consumers over fake Indigenous Australian art , pp. 53 -54. 
Viewed at: https://www.accc.gov.au/media -release/court -finds-that-birubi -art-misled -consumers -over-fake-
indigenous -australian -art. WT/TPR/S/ 396 • Australia  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture and Fisheries  
4.1.1   Agriculture  
4.1.1.1   Main features  
4.1.  Agricultural holdings occupy and manage approximately 371 million hectares (ha) of land in 
Australia, or j ust over 48% of the country's total landmass. Most of the agricultural land is used for 
grazing (312 million ha), while crop production occupies roughly 30 million ha. Nearly 50 million ha 
of it is under foreign ownership. An increasing amount is being set  aside for conservation or 
protection purposes. About 18% of Australia's land area is currently managed for conservation.1 The 
land management policy includes a focus on flexible approaches to grazing management, to reduce 
erosion and increase productivity , diminishing the use of agricultural chemicals, and more optimal 
use of fertilizer. Water usage is influenced by significant differences in regional climatic conditions. 
Irrigation is particularly important in the Murray Darling Basin. In relation to clim ate change, 
Australia's primary industries reduced their greenhouse gas emissions by 63% between 1996 and 
2016.  
4.2.  In 2015/16, Australia had 85,681 agricultural businesses, primarily organized as partnerships 
(44%) or individual businesses/sole traders (33%),  rather than trusts (14%) or companies (9%).2 
The agricultural sector provided direct employment for 304,200 people (3% of the national 
workforce), including more than 70% working full time. Taking account of the food and fibre 
industries and other element s of the agricultural supply chain, it is estimated that agriculture 
provides more than 1.6 million jobs. In 2016/17, measured at farm gate, the gross value of 
agricultural production amounted to AUD 60 billion.  
4.3.  Australia's agricultural sector produces a w ide variety of commodities. Ranked by gross value, 
the most important are cattle and calves, wheat, milk, and wool (Table 4.1).  Furthermore, the annual 
production value normally exceeds AUD 1 billion also for crops such as fruit and nuts, vegetables, 
barley, canola, cut flowers and the like, cotton and sugar, and livestock items such as lamb, poultry, 
pork, and sheep and sheep meat.  
Table 4.1 Gross value of production for selected agricultural commodities, 2013 -18 
(AUD million)  
  2013 /14 2014 /15 2015 /16 2016 /17 2017 /18 
Oilseeds  
Canola  2,129 1,782  1,476  2,412  2,099  
Soybean  17.0 22.0 22.5 24.2 22.9 
Sunflower seed  11.8 23.0 16.4 19.2 18.4 
Crops  
Wheat  7,998  7,124  6,170  7,366  5,695  
Corn (maize)  116 163 130 140 131 
Barley  2,453  2,417  2,277  2,658  2,281 
Grain sor ghum 384 666 492 237 391 
Oats 268 300 398 547 272 
Tritical e  32.4 36.7 31.6 26.7 20.4 
Rice 279 273 115 252 246 
Industrial crops  
Cotton  2,004  1,184  1,530  1,934  2,796  
Sugar cane (cut for crushing)  1,226  1,305  1,283  1,624  1,319  
Wine grap es 672 765 881 971 942 
Pulses  
Chickpeas  222 315 685 1,669  650 
Field peas  143 120 92 136.4 94 
Lupins  216 160 236 285 120 
                                                
1 National Farmers' Federation, Food, Fibre & Forestry Facts, 2017 edition . Viewed at: 
https://www.nff.org.au/farm -facts.html . 
2 These figures cover farms with an estimated value of agricultural operati ons of AUD 40,000 or more 
each year.  WT/TPR/S/ 396 • Australia  
 
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    2013 /14 2014 /15 2015 /16 2016 /17 2017 /18 
Livestock (slaughterings)  
Cattle and calvesa 
(includes dairy cattle)  7,495  10,175  11,536  10,940  10,752  
Sheepa 513 650 535 615 769 
Lambsa 1,943  2,401  2,477  2,717  2,943  
Pigsa 1,081  1,149  1,353  1,342  1,146  
Poultry ( hens and chickens, turkey)  2,344  2,610  2,748  2,729  2,683 
Goat 80.5 120.2 167 189 138 
Livestock (live exports)  
Cattleb 1,049  1,356  1,551  1,199  1,268  
Sheepc 185 245 228 233 259 
Goat 9.9 9.6 10.3 4.7 4.9 
Livestock products  
Eggs for consumption  695 725 783 820 828 
Wool 2,530  2,676  2,965  3,458  4,481 
Milkd 4,729  4,722  4,282  3,695  4,270 
a Excludes skin and hide values . 
b Includes all bovine for feeder/slaughter, breeding and dairy purposes . 
c Includes animals exported for breeding purpose . 
d Milk intake by factories and valued at the farm gate . 
Source:  Government, Department of Agriculture, Agricult ural Commodities September 2019. 
https://www.agriculture.gov.au/abares/research -topics/agricultural -commodities/sep -2019. 
4.4.  Agricultural business is stron gly export oriented. About 77% of the production is exported. In 
2018, farm exports reached nearly AUD 49 billion, or 14% of total merchandise exports. Although 
Australia may be outranked in terms of production by more populous nations, as a world exporter , 
it normally ranks first for sheep and goat meat, second for wool and rapeseed, third for beef and 
sugar, and fifth for cotton. It also accounts for 6% of world trade in dairy products, behind New 
Zealand, the European Union, and the United States. A favo urable sanitary situation allows Australia 
to be an important exporter of live animals. Although food imports, mainly of processed products, 
are growing steadily (Chart 4.1), they still do not account for more than 15% of the food 
consumption of Australian  households.  
Chart 4.1 Exports and imports of agricultural products, 2007 -17 
(USD billion)  
 
Note:  WTO agricultural definition.  
Source:  WTO Secretariat calculations, based on UNSD Comtrade database.  
4.5.  Although p roductivity growth varies considerably across farms, industries and regions, overall 
productivity growth in Australia's agriculture has averaged 2.7% per year over the last 30 years. 
0510152025303540
2007 2008 2009 2010 2011 2012 2013  2014  2015  2016  2017
Exports ImportsChart 4.1 Exports and imports of agricultural products, 2007 -17
(USD billion)
Source:  WTO Secretariat calculations, based on UNSD Comtrade database.Note:     WTO agricultural definition.WT/TPR/S/ 396 • Australia  
 
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  Agricultural research is funded in part by the Government, through the Fe deral Department of 
Agriculture, and in part by the farmers themselves, through rural R&D corporations.  
4.1.1.2   Trade measures  
4.1.1.2.1   Imports  
4.6.  Australia 's applied MFN tariffs on agricultural products (WTO definition) averaged 1.4% in 
2019, the same as in  2014.  In general, tariff protection is negligible in the agricultural sector ; 73%  
of the tariff line items enter duty free. The specific duty together wit h the tariff quota regime on 
cheese and curd (Section 3.1.3.3.) provide some import protection for the dairy industry, but this 
protection was eliminated for some trading partners. The 5% rate of MFN import duty prevails on 
some agricultural items, notably  sugars, oils and fats, and on certain vegetables, fruit, nuts and 
beverages.  
4.7.  Australia reserved the right to apply the Special Agricultural Safeguard (SSG) on imports from 
other WTO Members of cheese and curd, unmanufactured tobacco and tobacco refuse.3 However, it 
has not resorted to SSGs since the inception of the WTO.  
4.8.  Agricultural imports are subject to strict sanitary and phytosanitary (SPS) measures, including 
quarantine measures, to preserve Australia's favourable status with regard to pests and di seases. 
The SPS arrangements in force imply that agricultural products from certain regions across the globe 
are subject to import restrictions.  
4.1.1.2.2   Exports  
4.9.  The Export Control Act , 19824 sets out the responsibilities and powers of the Department of 
Agriculture  regarding  agricultur al export s. It identifies commodities the Department is in charge of 
controlling, i.e.  live animals, meat and meat products, dairy products, egg and egg products, fresh 
fruit and vegetables, grains and seeds, hay and straw, organic pro duce, plants and plant products, 
and fish and fish products. Among Australia's trading partners, some have specific requirements that 
agricultural exporters must take account of in their supply chain arrangements. For example, the 
European Union establishe d an accreditation system (the European Union Cattle Accreditation 
System) to ensure that cattle intended for EU markets have not been treated with hormone growth 
promotants; and the Export Supply Chain Assurance System was established to deliver animal 
welfare outcomes.  
4.10.   The Department of Agriculture also administers 33 tariff quotas related to agricultural exports. 
These cover sales to the European Union of dairy products, high -quality beef and grain -fed beef, 
sheep meat and goat meat, and beef and dairy p roducts exported to the United States. Since 
1 January 2015, exports to Japan of apple juice, bovine offal, honey, orange juice, pork, poultry, 
and preserved meats also take place under tariff quota arrangements.  
4.11.   As noted in Section 3.1.5.6, Australia impo ses approximately 100 different agricultural levies 
on a commodity -by-commodity basis, including on commodities that are exported. These levies and 
charges, together with matching Commonwealth payments, are directed to 18 levy recipient bodies, 
and are inv ested in research, marketing activities, biosecurity programmes, national emergency 
plant and animal pest and disease responses, and residue testing. The Commonwealth matches 
industry expenditure on R&D activities up to the lowest of three caps, in accorda nce with the relevant 
legislation. These caps are (i) total levies paid to an R&D corporation (RDC); (ii) half of the RDC's 
eligible expenditure on R&D; or (iii) 0.5% of the levied industries' gross value of production. The 
latter two caps are most commonl y relevant.  
4.12.   Australia exports rice to approximately 60 countries. These export sales were valued at 
AUD 245 million in 2016/17. Nearly all the rice is produced on 412 farms, located in two regions 
within the state of New South Wales.  Rice is the only agric ultural product in Australia subject to 
single desk arrangements and exempted from competition policy . Export paddy rice in 
New South  Wales is divested from the producers and becomes the property of the Rice Marketing 
                                                
3 These products comprise ten tariff lines at the six -digit level (in HS2007).  
4 New legislation to replace the Export Control Act is currently being drafted.  WT/TPR/S/ 396 • Australia  
 
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  Board for the state of New South Wales , established in 1928. The primary function of the Board is 
to obtain the best possible monetary return for rice growers. The Board licenses authorized buyers, 
as defined under the Rice Marketing Act, 1983, to purchase rice from farmers. It granted Ricegro wers 
Limited Trading (SunRice) the sole right to export rice, and will therefore not approve a new 
authorized buyer unless it is satisfied that the rice is intended exclusively for the domestic market.5 
4.13.   As a result of the goods schedule Australia negotiated through the Uruguay Round, Australia 
had export subsidy commitments for various dairy products (butter and butter oil, cheese, skim milk 
powder, and other milk products) and pears. However, Australia eliminated its entitlements to 
agricultural e xport subsidies with effect from 22 May 2017. It is thus no longer in a position to 
provide such subsidies.  
4.1.1.2.3   Food aid  
4.14.   Australia untied its food aid in 2005. Since then, it has been providing cash contributions to 
international agencies instead of physical food aid. In 2017/18, it provided AUD 84.7 million in food 
assistance to LDCs and net food -importing developing countries. All funding was provided as cash -
based support to the UN World Food Programme (WFP) for emergency relief. The WFP decides wh at 
commodities to purchase with Australia's contribution.  
4.1.1.3   Domestic programmes  
4.15.   The Government released a white paper, setting out a roadmap of practical actions for the 
benefit of the agricultural sector, on 4 July 2015.6 Most of these programmes are now co ming to a 
close. The Agricultural Competitiveness White Paper was presented as an AUD 4 billion investment 
in Australian farmers, with initiatives and commitments within five priority areas of action. Under 
the heading "A fairer go for farm businesses" , initiatives included further streamlining of approvals 
of agricultural and veterinary chemicals (with a budgetary allocation of AUD 20.4 million), improved 
country of origin labelling for food, and action to cut red tape (in line with the rest of the economy ). 
The tax system for farm businesses would become more flexible, allowing farmers to opt back into 
income tax averaging after ten years, a doubling of the ceiling for Farm Management Deposits (to 
AUD 800,000), and accelerated depreciation for fencing. The  "Building the infrastructure of the 21st 
century"  chapter outlines investment in future water security, through an AUD 500 million National 
Water Infrastructure Fund, and a top -up of AUD 60 million in the Mobile Black Spot Programme to 
improve mobile cove rage across regional Australia. Farmers would also benefit from the roll -out of 
the National Broadband Network, an AUD 29.5 billion strategy to improve nationwide access to 
technology.  
4.16.   Priority areas within "Strengthening our approach to drought and risk m anagement"  include 
preparatory measures such as immediate tax deductions for new water facilities, budgetary 
allocations for farm insurance advice and risk assessment grants (AUD 29.9 million over four years), 
and improved weather forecasts. For drought -stricken farmers, concessional loans are to be made 
available (up to AUD 250 million per year for 11 years), the case management of the Farm Household 
Allowance is to be expanded, and the Farm Management Deposits may be accessed without loss of 
tax concessio ns.7 In addition, AUD 35 million is set aside for local infrastructure projects, and 
AUD 25.8 million (over four years) to manage pest animals and weeds in drought -affected areas.  
4.17.   Access to the most advanced technologies and practices is the focus of "Farming smarter ", 
which includes an extension of the Rural R&D for Profit Programme until 2021/22 (at an additional 
cost of AUD 100 million), AUD 50 million to boost the emergency pest and disease eradication 
capability, AUD 50 million for improved tools and c ontrol methods against pest animals and weeds, 
and prioritizing levy funds in areas that improve farm gate returns. The Government also supports 
environmental projects and conservation management, through the National Landcare Programme 
(AUD 1 billion) and  the Green Army (AUD 700 million). Access to labour and enhanced training is 
facilitated through the Industry Skills Fund and more flexible visa programmes.  
                                                
5 By August 2019, the Marketing Board had licensed 12 author ized buyers, including SunRice.  
6 Government, Agricultural Competitiveness White Paper. Viewed at: 
https://agwhitepaper.agriculture.gov.au/ . 
7 The Farm Household Allowance p rovides income support to farmers and farmers' partners in financial 
distress. The maximum total fortnightly payment per recipient amounted to AUD 584.20 in December 2017.  WT/TPR/S/ 396 • Australia  
 
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  4.18.   The final chapter in the white paper, "Accessing premium markets" , focuses on international 
trade. Initiatives include AUD 200 million to fund biosecurity surveillance and analysis, 
AUD 12.4 million to modernize Australia's food traceability systems for exports, and AUD 30.8 million 
to break down technical barriers to trade in overseas markets and emplo y additional agricultural 
trade experts.  
4.19.   In its most recent notification to the WTO Committee on Subsidies and Countervailing 
Measures, Australia listed three federal programmes directed towards the agricultural sector in 
financial years 2017/18 and 2018/1 9.8 The programmes comprised pest animal and weed 
management in drought -affected areas, the Farm Household Allowance, and the Managing Farm 
Risk programme. The latter involves a one -off rebate to eligible farm businesses that seek 
independent and professio nal advice when applying for a new insurance policy covering drought 
management and other production or market risks. The rebate amounts to 50% of the costs for 
seeking advice (up to AUD 2,500). Total expenditures under this programme were AUD 277,000 in 
2018/19. Two programmes related to water management were notified under the heading 
environmental programmes.  
4.20.   The current drought policy in Australia is based on a 1992 policy document of the Government 
as well as a formal cooperation framework between the Government and state and territory 
governments. The 1992 National Drought Policy aims at farmers and rural communities adopting 
self-reliant approaches to managing climate variability, the maintenance and protection of the 
resource base during periods of c limatic stress, and the early recovery of agricultural and rural 
industries consistent with long -term sustainable levels. Starting in June 2018, the Government 
announced a series of measures to support farmers in drought -affected areas. These measures 
(Box 4.1) were complemented by additional support from state governments (Box 4.2).  
Box 4.1 Government drought assistance  
Government drought assistance measures ( as at September  2019) 
Measure  Nature and recipient a ssistance  
Future Drought Fund  Initial credit of AUD 3.9 billion for the Future Drought Fund (earnings to be 
reinvested until the balance reaches AUD 5 billion, expected in 2028/29), 
with up to AUD 100 million a year to be drawn down for drought -resilience 
projects  
On-farm emergency water 
infrastructure rebate scheme  AUD 50 million to provide rebates for emergency on -farm water 
infrastructure expenses to help farmers buy and upgrade on -farm water 
infrastructure for livestock watering and permanent plantings  
Farm Household Allowance  Provides farming families experiencing financial hardship with assistance, 
through planning and training for long -term financial improvements as well 
as income support for up to four years  
Rural Financial Coun selling  Rural Financial Counsellors provide support to farmers, helping them to 
identify financial and business options, assisting with negotiations, and 
providing referrals and helpful information on available support  
Communities Combatting 
Pests and Wee d Impacts 
During Drought  AUD 15 million in 2018/19 for 48 pest and weed management and wild 
dog exclusion fencing projects in drought -affected Local Government Areas  
Drought Communities 
Programme  AUD 110 million to 110 Local Government Areas to provide i mmediate 
economic stimulus in drought -affected communities by funding targeted 
local infrastructure projects and drought -relief activities  
National Water Infrastructure 
Development Fund  AUD 3.3 billion in funding through the National Water Infrastructure 
Development Fund (AUD 1.3 billion) and the National Water Infrastructure 
Loan Facility (AUD 2 billion) to build dams, weirs and pipelines  
Foundation for Rural and 
Regional Renewal  AUD 1 5 million to the Foundation for Rural and Regional Renewal to deliver 
grants to not -for-profit and community groups across drought -affected 
regions  
Taxation measures including 
Farm Management Deposits  Several taxation concessions available to help farmers  to better manage 
their cash flows and invest in the profitability and resilience of their farms  
                                                
8 WTO document G/SCM/N/ 343/AUS, 14 October 2019 . WT/TPR/S/ 396 • Australia  
 
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  Great Artesian Basin  AUD 36.9 million over six years to improve water security and drought 
resilience in the Great Artesian Basin  
Regional Investment 
Corpora tion The Government established the Regional Investment Corporation in 2018 
to deliver nationally -consistent concessional loans to farmers  
Regional weather and climate 
guides to help with on -farm 
decision -making  AUD 28 million over four years for addition al weather radars in QLD and 
NSW, and AUD 2.7 million to develop Regional Climate and Weather 
Guides for farmers  
FarmHub  Online guide to connect farmers with services and support during 
hardship, such as drought  
Mental health support  AUD 29.4 million for mental health support initiatives, to help farmers and 
communities deal with the anxiety, stress and uncertainty of drought 
conditions  
Country Women's Association 
(CWA) of Australia Grant  AUD 5 million one -off ad hoc  grant to the CWA  for financial assistance to 
farmers and farming families suffering hardship due to drought  
National Drought Map  Online tool that brings together population data and information on 
drought conditions, to assist with analysis, decision -making, planning and  
reporting  
Source:  Department of Agriculture.  
Box 4.2 State drought assistance programmes (June -December 2018)  
New South Wales  
Animal Welfare Transport 
Subsidy  50% of costs , up to a maximum of AU D 20,000 p .a. 
Donated fodder transport  100% of costs , up to AU D 5 per km up to 1 ,500 km 
Drought Transport 
Subsidy  50% of the cost , up to a maximum of AUD 5 per km and up to 1 ,500 km per 
journey, up to a total of AUD 40,000 over 18  months  
Farm Business Skills 
Professional 
Development Program  Workshops designed to help farmers become more resilient and better prepared 
for future droughts  
Fee and permit waivers  Bee Site Permit waiver; Class 1 Agricultural Vehicle Registration waiver; certain 
grazing permit waivers; Heavy Vehicle Access Permits fee waiver; NSW Local 
Land Services Rates; Water Licences financial assistance; Wild Dog Fence 
waiver  
Drought Assistance  Fund One-off AUD 50,000 interest -free loan for up to seven years , with no 
repayments in the first two years , to assist new farmers experiencing drought 
hardship to implement systems to enhance sustainability ; can include 
infrastructure , and purchasing fod der and water  
Farm Innovation Fund  AUD 1 billion  (originally AUD 150 million) for loans up to AUD 1 million,  at 2.5% 
per year for up to 20 years. Is intended to improve permanent farm 
infrastructure, ensure long -term productivity and sustainable land use , and aid 
in meeting changes to seasonal conditions  
Queensland  
Drought Relief Assistance 
Scheme  Up to AUD 40,000 subsidies per farm for transporting water, transporting fodder 
and returning stock from agistment  
Victoria  
Improving access to 
emergency water supply 
points (EWSPs)  AUD 1 million of funding for the network of EWSPs for stock and domestic 
purposes during dry seasonal conditions  
On-farm drought 
infrastructure support 
grants  Expanded funding to AUD 18.2 million , for grants of up to AUD 5,000 to provide 
dollar -for-dollar assistance in implementing on -farm infrastructure that improve 
drought management  WT/TPR/S/ 396 • Australia  
 
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  Farm Business 
Assistance program me AUD 5.6 million of funding, which aims to provide immediate financial relief and 
alleviate some cost-of-living pressures  
Farm Support Fund  AUD 1 million of funding to provide discretionary support for those who may not 
be eligible for the Farm Business Assistance program me 
Source:  Productivity Commission, Trade and Assistance Review - 2017-18. 
www.pc.gov.au/research/ongoing/trade -assistance/2017 -18. 
4.21.   The Council of Australian Governments signed a new National Drought Agreement (NDA) on 
12 December 2018.9 The N DA sets out a joint approach on drought preparedness, response and 
recovery , with measures across all jurisdictions aiming at  stronger  risk management practices  and 
enhanced  long-term preparedness and resilience .10 An important element of the NDA is the Fut ure 
Drought Fund, which is being set up with an initial credit of AUD 3.9 billion to provide a secure and 
continuous revenue stream for drought -related measures.11 As from 1 July 2020, AUD 100 million 
will be made available each year to support farmers and rural communities in preparing for future 
droughts. The Government is committed to the development of a rolling four -year high -level 
framework (the Drought Resilience Funding Plan) to ensure a coherent and consistent approach in 
the funding of drought -resilience projects.  
4.22.   The Department of Agriculture administers some grants and financial assistance programmes 
to boost productivity and exports in the agricultural sector. These include a competitive grants 
programme for strategic research (Rural R&D for Prof it); science and innovation awards targeting 
young scientists, researchers and innovators; grants for the development of new or improved control 
tools and technologies to reduce the impact of harmful pest animals and weeds; grants for 
sustainable agricultu re projects under the National Landcare Program; grants to generate sufficient 
data to support applications to the Australian Pesticides and Veterinary Medicines Authority for 
agricultural and veterinary chemicals uses; and a funding package for small expo rters in the dairy, 
eggs, horticultural, grain and meat sectors. Some funding is provided to promote agricultural 
cooperation between Australia and China. Certain programmes exhausted their funding and were 
not extended or renewed in the period under revie w, notably the Leadership in Agricultural Industries 
Fund and the Innovation Grants scheme, where all projects were to be completed by 30 June 2016. 
Filling the Research Gap, a component of the Carbon Farming Futures programme, was utilized to 
fund 88  projects worth AUD  74 million.  
4.23.   The Government continues to finance a certain number of concessional loan schemes. A recent 
addition to this system is the Regional Investment Corporation (RIC), established under the Regional 
Investment Corporation Act, 2018. Th e RIC administers the delivery of farm business loans within a 
total frame of AUD 2 billion, and national water infrastructure loans to eligible state and territory 
government projects (up to AUD 2 billion in total). As at August 2019, the loans provided t o farmers 
through the RIC at concessional rates were for farm investments (up to AUD 2  million), drought 
loans (up to AUD 2 million), and AgRebuild loans (up to AUD 5 million), following severe flooding in 
North and Far North Queensland in early 2019.12 
4.1.1.4   Levels of support  
4.24.   Australia notifies its expenditures on agricultural programmes to the WTO Committee on 
Agriculture on a regular basis. The latest such notification, covering the period 1 July 2017 to 
30 June 2018, was circulated in October 2019.13 Nearly all  the notified support concerns measures 
falling within the Green Box, in particular general services and environmental programmes 
(Chart  4.2). At times, natural disaster relief has also been an important component of Australia's 
Green Box support in the pa st, but such payments have been insignificant since the Exceptional 
Circumstances programmes ended in 2013.  
                                                
9 The new NDA replaced the 2013 Intergovernmental Agreement o n National Drought Program Reform . 
The end date for the new Agreement is 30 June 2024.  
10 Department of Agriculture National Drought Agreement . Viewed at: http://www.agriculture.gov.au/ag -
farm-food/drought/drought -policy/national -drought -agreement . 
11 The Parliament passed the Future Drought Fund Act, 2019 on 24 July 2019. Earnings are to be 
reinvested until the balance of the Fund reaches AUD 5 billion  (expected in 2028/29).  
12 The variable interest rate l oans offered through the RIC for farm investment and drought projects 
were priced at 3.11% p.a. in August 2019.  
13 WTO documents G/AG/N/AUS/129; and G/AG/N/AUS/130, 9 October 2019.  WT/TPR/S/ 396 • Australia  
 
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  4.25.   Australia's schedule of concessions and commitments on goods establishes a ceiling on total 
Amber Box support, of AUD 471.86 million per year in exc ess of the generally applicable 5% 
de minimis  level. Australia's AMS payments were minimal in 2017/18. According to the notification, 
its non -product -specific AMS amounted to AUD 91.5 million in that period, equivalent to 0.15% of 
the total value of its agricultural production. In addition, minor pro duct-specific payments to the 
wine sector in Victoria equalled 0.07% of the values of production in that sector.  
4.26.   The low level of support to agriculture in Australia is also confirmed by OECD calculations. As 
Australia no longer uses measures that provide market price support, and domestic prices for the 
main agricultural outputs consequently are at parity with world prices, the limited support provided 
directly to producers was estimated by the OECD to represent some 2.2% of gross farm receipts 
during 2016 -18, which was well below the OECD average (about 10%).14 Current support 
programmes target risk management, environmental conservation, and provision of general 
services. Total support to agriculture amounts to approximately 0.2% of GDP.  
Chart 4.2 Green Box support, 2000/01 -2017/18  
(AUD million)  
 
Note:  Other programmes include decoupled income support; structural adjustments; regional assistance 
programmes; and other support.  
Source:  WTO notifications.  
4.27.   According to the OECD, total factor productivity (TFP) growth in Australia's agriculture sector 
averaged 2% per year during 2006 -15, which was well above the world average (1.5%) during that 
period. TFP growth was spurred on by continued str uctural adjustment and rapid uptake of new 
technologies and practices. However, productivity growth is increasingly being constrained by water 
availability, which may be exacerbated by climate change.  
4.28.   The OECD notes that resource constraints, particularly  access to water, remain the greatest 
challenge to Australia's agricultural sector. Recent water reforms have been a step in the right 
direction, as pricing mechanisms are being employed to reflect the scarcity of water to producers. 
The OECD welcomes the more unified approach towards drought management embodied in the NDA 
as a tool to end sometimes -contradictory incentives provided until recently. However, it is also noted 
                                                
14 OECD, Agricultural Policy Monitoring and Evaluation 2019 . Viewed at: https://www.oecd -
ilibrary.org/docserver/39bfe6f3 -
en.pdf?expires=1565866449&id=id&accname=ocid195767&checksum=9FD323F3660FD7BFFEE31678414CD683 . 
05001,0001,5002,0002,5003,000
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18
General services Payments for relief from natural disasters
Environmental programmes Income, insurance and income safety-net programme
Other programmesChart 4.2  Green Box support, 2000/01 -2017/18
Source: WTO notifications.(AUD million)
Note: Other programmes include decoupled income support; structural adjustaments; regional assistance programmes; and other 
support.WT/TPR/S/ 396 • Australia  
 
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  that, while it is widely accepted that Australian agriculture is affected by a chang ing climate, its 
contribution to emissions that drive climate change is relatively overlooked in terms of policy 
response.  
4.29.   Australia's Productivity Commission estimates assistance to agriculture using the same format 
and methodology as it uses to calculate  assistance provided to other sectors, i.e. mining, 
manufacturing, and services. In 2017/18, the budgetary assistance to primary production amounted 
to nearly AUD 1.9 billion, or nearly 16% of the total budgetary assistance to all industries 
(Table  4.2). A lmost 54% of the estimated budgetary assistance to primary production was provided 
in the form of tax concessions, primarily through the Farm Management Deposits scheme and 
income tax averaging provisions. The estimates of the Productivity Commission do no t include 
assistance that may be provided by state and territory governments.  
Table 4.2 Budgetary assistance to primary production, 2011 -18 
(AUD million (nominal))  
Industry grouping  2011 /12 2012 /13 2013 /14 2014/15 2015 /16 2016 /17 2017 /18 
Share in total 
budgetary assistance 
(%)        
Dairy cattle farming  5.0 4.1 4.6 5.3 5.5 3.9 3.7 
Grain, sheep, and 
beef cattle farming  42.7 42.3 46.0 43.2 45.0 45.6 51.4 
Horticulture and 
fruit growing  8.8 10.5 10.2 9.0 10.4 10.6 12.0 
Other crop farming  6.1 7.6 7.8 5.9 6.5 6.0 6.0 
Other livestock 
farming  4.3 3.7 3.3 3.7 4.1 3.7 3.6 
Fisheries  4.3 5.7 5.7 6.0 6.2 5.6 5.2 
Forestry and 
logging  4.7 3.7 2.1 2.0 2.0 2.0 2.1 
Other primary 
production  1.4 2.2 2.3 1.9 1.9 1.9 1.6 
Unallocated primary 
productiona 22.8 20.1 18.0 23.0 18.3 20.7 14.4 
Total outlays 
(AUD million)  946.6  757.0  812.7  878.6  803.9  894.9  874.3  
Total tax expenditure 
(AUD million)  606.5  488.6  507.2  516.9  583.0  738.1  1,018.0  
Total budgetary 
assistance 
(AUD million)  1,553.1  1,245.6  1,319.9  1,395.5  1,386.9  1,633.0  1,892.3  
Share of total 
budgetary assistance 
to GDP (%)  0.1 0.1 0.1 0.1 0.1 0.1 .. 
.. Not available.  
a Unallocated includes general programmes where details of beneficiaries are unknown.  
Source:  Productivity Commission, Trade and Assistance Review 201 7-18. 
www.pc.gov.au/research/ongoing/trade -assistance/2017 -18. 
4.1.2   Fisheries  
4.1.2.1   General  
4.30.   Australia's 200 -mile Fishing Zone (AFZ) is the third largest in the world, and is larger than 
Australia's land area. However, biological productivity in the marine territory is rela tively low, due 
to the generally shallow waters of the continental shelf and the scarcity of nutrient -rich currents. 
Regulatory responsibilities affecting the fisheries sector fall within eight jurisdictions, each of which 
develop their own policies with r espect to resource management, research, reporting, and 
environmental standards. Generally, state and territory governments regulate on -land facilities and 
marine fisheries within three nautical miles of the coastline (low water mark), while the Government  WT/TPR/S/ 396 • Australia  
 
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  holds jurisdiction between the three -mile internal limit and the 200 -mile outer limit of the AFZ. Since 
1979, cross -jurisdictional issues, including the management of migrating fish stocks, have been 
regulated under the Offshore Constitutional Settlement (OCS). At present, 59 separate agreements 
exist under the OCS to regulate the harvesting of cross -jurisdictional fish stocks.15 The sustainability 
of Australia's fisheries has improved markedly over the last ten years. The 2018 Status of Australian 
Fish Sto cks Reports showed that, of the 120 species made up of 406 separate stocks, no more than 
7% of Australia's fish stocks (29 stocks in all) were depleted.16 These reports are used by the 
Government as the foundation for reporting on the Sustainable Developmen t Goals – Indicator 
14.4.1 Proportion of fish stocks within biologically sustainable levels.17 
4.31.   At the Commonwealth level, three separate institutions are entrusted with the formulation of 
policy and international negotiations, fisheries management and fishe ries research, based on the 
Fisheries Management Act, 1991, the Fisheries Administration Act, 1991, and related regulations. 
The Department of Agriculture is responsible for the setting of regulatory policies for fishing in 
Commonwealth waters, operational ized by the Australian Fisheries Management Authority  (AFMA), 
a statutory authority governed by an independent Commission. Further, around 80% of fisheries are 
assessed under the Environment Protection and Biodiversity Conservation Act, 1999, which 
promote s the ecologically sustainable management of fisheries and provides for the assessment of 
environmental performance. The Fisheries Research and Development Corporation (FRDC), a 
statutory corporation of the Government accountable to Parliament through the Minister for 
Agriculture, is the national fisheries -related R&D agency. The FRDC is funded jointly by the 
Government and the commercial fishing and aquaculture industries. External stakeholders can also 
invest in FRDC projects where they perceive a strateg ic benefit. In 2017/18, the FRDC invested 
AUD 26 million in total in 493 active projects. The corresponding figures for 2018/19 were 
AUD 29.8 million and 491 projects. In most projects, the FRDC involves end -users in project designs.  
4.32.   According to the 2018/ 19 Labour Force Survey, commercial fisheries and aquaculture 
industries employed approximately 12,500 people, of which 72% were working full time. 
Employment was somewhat higher in commercial fishing (6,751) than in aquaculture (5,765). 
Although employment  may fluctuate substantially in both subsectors, the trend towards a larger fish 
farming sector has been continuing. Fish processing and fish wholesaling is estimated to provide the 
equivalent of an additional 4,000 full -time jobs.  
4.33.   The gross production value of Australia's wild -caught and farmed fish and seafood amounted 
to AUD 3.21 billion in 2017/18, an increase of 16% in real terms relative to 2007/08. Over the 
ten-year period, the trend was for wild -capture fisheries to increase in real va lue terms, as a result 
of higher prices received for crustacean species and an increased focus by management on fostering 
economic -based target settings in fisheries management (Chart 4.3), and the aquaculture industry 
experienced significant growth. Farme d salmonids have become the most valuable line of production, 
and now account for approximately 27% of the sector's total output (in value terms). Australia 
continues to be the world's leading source of wild -caught abalone, which is complemented by 
signifi cant quantities of farmed abalone.  
4.34.   Domestic consumption of seafood is varied, but principally consists of canned tuna, prawns, 
salmon, squid, and crumbed and battered fish. The consumption of salmon has increased markedly 
in recent years, which has facilit ated the expansion of locally farmed salmon, and the maintenance 
of significant imports. Australia has been a net importer of seafood, both in value and volume terms, 
since 2007. Approximately 70% of the consumption is estimated to be covered by imports at  present. 
Australia's exports are dominated by high -value species, in particular rock lobster (live, fresh, dried, 
salted, or in brine), abalone, and southern bluefin tuna (frozen). Major imported items are tuna, 
skipjack and bonito (prepared or preserved) , together with frozen shrimp and prawns. Australia's 
trading partners for fish and seafood, imports as well as exports, are, for the most part, located in 
East and South East Asia, driven by new free trade agreements.  
                                                
15 In an inquiry report published in December 2016, the Productivity Commi ssion identified 26 fish 
stocks for which stakeholders had expressed concerns about duplicative or inconsistent management 
arrangements between the jurisdictions involved. Southern rock lobster and southern bluefin tuna were the 
most important species affe cted, commercially.  
16 Fisheries Research and Development Corporation, Key results . Viewed at: 
http://fish.gov.au/reports/key -results . 
17 The Government's Reporting Platform on the SDG Indicators. Viewed  at: 
https://www.sdgdata.gov.au/goals/life -below -water/14.4.1 . WT/TPR/S/ 396 • Australia  
 
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  Chart 4.3 Wild catch commercial fisheries, 2001/02 -2013/14  
Index of employmenta, value of catchb and pricesc 
 
a Average of quarters for each financial year for the fishing, hunting and trapping sub -industry 
grouping. ABS employment data  is based on survey data, and estimates for disaggregated groups 
can suffer from volatility.  
b Value of catch in 2013/14 prices . 
c Average price per kg in 2013/14 prices . 
Source:  Government, Marine Fisheries and Aquaculture, Productivity Commission Inquiry  Report N o. 81, 19 
December 2016.  www.pc.gov.au/inquiries/completed/fisheries -aquaculture/report . 
4.1.2.2   Commercial fisheries  
4.35.   The AFZ spans approximately 165 commercial wild -capture fisheries, with about 600 species 
being caught and traded commercially. The commercial wild -catch sector targets high -value species 
such as tuna, abalone, rock lobster and prawns. These species account for approximately two thirds 
of the value of wild -caught production at present. Resource management systems have gained 
ground over the last 15 years. Input and output controls in various forms, e.g. limitations on vessel 
size, restrictions on the use of equipment, or time spent fishing, and individual t ransferable quotas 
have been the principal instruments used. Some jurisdictions employ input and output control -based 
entitlements that are leased or sold to fishers, and allow these to be traded in full or in part. Output 
controls, i.e. specific limits on  the amount or weight of fish that may be caught, have become 
increasingly favoured, and individual transferable quota systems currently apply to about one 
quarter of the fisheries in Australia.  
4.36.   Australia is a party to numerous regional and bilateral treat ies, conventions and agreements 
for the establishment of joint bodies, for the sustainable management of shared fish resources, and 
for the combat of illegal, unreported and unregulated fishing. These include the establishment of the 
Western and Central Pa cific Fisheries Commission, the South Pacific Forum Fisheries Agency, and 
the Indian Ocean Tuna Commission, the Convention for the Conservation of Southern Bluefin Tuna, 
the Convention on the Conservation and Management of High Seas Fishery Resources in th e 
South  Pacific Ocean, the Southern Indian Ocean Fisheries Agreement, the Convention on the 
Conservation of Antarctic Marine Living Resources, the Treaty on Fisheries between the Governments 
of Certain Pacific Island States and the Government of the United  States of America (1988), and the 
Niue Treaty on Cooperation in Fisheries Surveillance and Law Enforcement in the South Pacific 
Region. Australia also concluded two  Memoranda of Understanding, one with Indonesia regarding 
the operations of Indonesian trad itional fishermen in the AFZ and the continental shelf, and the other 
with New Zealand regarding the conservation and management of orange roughy on the South 
Tasman Rise.  
20406080100120
Value of catch Employment PricesChart 4.3  Wild catch commercial fisheries, 2001/02 -2013/14
Index of employmenta, value of catchband pricesc
Source:  Government, Marine Fisheries and Aquaculture, Productivity Commission Inquiry Report No. 81, 19 
December 2016.a  Average of quarters for each financial year for the fishing, hunting and trapping sub industry 
grouping. ABS employment data is based on survey data, and estimates for disaggregated groups can 
suffer from volatility.
b  Value of catch in 2013/14 prices.
c  Average price per kg in 2013/14 prices.
Index 2001-02=100WT/TPR/S/ 396 • Australia  
 
- 108 - 
 
  4.37.   For domestic compliance, the AFMA uses a risk -based approach that enables the agency  to 
target its resources where these are most in need and most effective. The approach involves a series 
of steps, starting with the identification and assessment of risks, followed by the design of 
appropriate measures to mitigate these risks.18 The AFMA a lso provides staff to a National 
Surveillance Response unit tasked with detecting and deterring illegal fishing. The unit works 
primarily within the Australian Maritime Border Operations Centre as part of Australia's Maritime 
Border Command. Strong enforce ment measures have led to a significant decline in apprehensions 
of foreign fishing vessels, falling from 367 in 2005/06 to a low of 5 in 201 8/19. 
4.1.2.3   Aquaculture  
4.38.   The Government regulates national issues that also affect the aquaculture sector, such as 
disease control, quality aspects, labelling, and trade. State and territory governments are principally 
responsible for the management and regulation of the marine -based aquaculture, whereas local 
governments review applications for land -based aquaculture projects. Production sites require 
access to publicly owned land and water that may also be of interest to other users, and a licensing 
system is in place to mitigate these concerns and the sector's impact on the environment. Most 
jurisdictions do not regu late aquaculture through dedicated legislation. Regulation does not appear 
to be a significant constraining factor in the aquaculture industry.  
4.39.   The main farmed species in Australia are Atlantic salmon, tuna, oysters, prawns, and 
barramundi (Chart  4.4). Two  states (Tasmania and South Australia) account for about three quarters 
of the total production value. Tasmanian farmed salmon as well as prawns, barramundi, abalone 
and edible oysters have been the principal contributors to the sector's growth over the pa st ten 
years. The expansion of aquaculture to commercially viable production of further "new" species faces 
a number of technical and biological challenges, with the raising of healthy fish and seafood in a 
controlled and constrained environment.  
4.1.2.4   Fish proc essing and wholesale distribution  
4.40.   The majority of seafood produced in Australia is sold fresh or frozen, and thus is subject to 
minimal processing, i.e. basic filleting, chilling, freezing or packaging. Much of the imported fish is 
either brought in canned  (e.g. tuna), or is frozen and subsequently thawed. The high -value species 
that Australia exports, in particular rock lobster, is, for the most part, transported fresh by air.  
4.41.   The number of seafood -processing businesses in Australia declined from 306 in 20 08 to 229  in 
2018. Most of these are small, employing less than 20 people.  
4.42.   Businesses handling seafood must be licensed or accredited, and are regulated by state and 
territory governments. The fish markets in Australia's major cities play a prominent role in the 
wholesale distribution of seafood, propped up by past government regulation. The Sydney Fish 
Market held a monopoly on the marketing of seafood in Sydney until 1997, and various fishermen's 
cooperatives were exclusive buyers and distributors elsewhe re along the coast of New South Wales. 
Since then, fishers have been able to sell their catch to any licensed buyer in New South Wales. 
Marketing arrangements were also liberalized in Queensland in the 1990s.  
                                                
18 The approach is described in the National Compliance and Enforcement Policy 2017 . Viewed at: 
https://www.afma.gov.au/sites/default/files/uploads/2017/07/2017 -National -Compliance -and-Enforcement -
Policy -with-signed -page.pdf . WT/TPR/S/ 396 • Australia  
 
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  Chart 4.4 Aquaculture production by value  
Total value of production : AUD 1,347 million (2016/17).  
 
Source:  Department of Agriculture, Australian fisheries and aquaculture statistics 2017 . 
4.2  Mining and Energy  
4.2.1   Mining  
4.43.   Australia is one of the world's largest producers and exporters of mining commodities. It is 
one of the world's top five producers of some 17 commodities such as gold, bauxite, iron ore, zinc, 
lead, and coal. As such, mining constituted nearly 9% of Australia's GDP and employed around 2%  
of the total workforce in 2017/18. Mineral products accounted for over 58% of merchandise exports 
in 2018, with coal, iron ore and aluminium constituting 40% of the total. 
4.44.   During the period under review, the share of mineral exports rose from 57.2% in 201 3 to 
58.2% in 2018 ; the share declined to less than 50% in 2015 due to falling global commodity prices. 
The recovery is based on the firming -up of prices and increased demand. The main markets for 
mineral exports are China, Japan and the Republic of Korea.  Going forward, the sector , and indeed 
the Australian economy , remains susceptible to global price trends and sustained growth in Asia , 
particularly China.  
4.45.   The mining sector continues to be the largest recipient of foreign direct investment  (FDI) . 
During t he review period, the stock of investment in the sector rose from AUD 243.7 billion in 2013 
to AUD  365.5 billion in 2018, which represents approximately 38% of the total FDI stock . Latest 
FIRB approvals data show the United States (AUD 4.8 billion), China (AUD 3.8 billion), and the 
United Kingdom (AUD 1.3 billion) were the top three investors in  the sector  in 2017/18.19 
4.46.   The Constitution stipulates that mineral and petroleum resources are owned either by the 
Commonwealth Government, or the state and territory governments. As such , exploration and 
development of these resources by companies requires licences and permits gra nted by 
Government.  
4.47.   The Offshore Petroleum and Greenhouse Gas Storage Act , 2006 and maritime boundary 
treaties with neighbouring countries provide the regulatory framework for a ll offshore petroleum 
exploration, production and greenhouse gas activities in Commonwealth waters (those areas more 
than three nautical miles from the territorial sea baseline and within the Commonwealth Petroleum 
Jurisdiction Boundary). The National Offshore Petroleum Titles Administrator  provides advice and 
                                                
19 Information provided by authorities.  
Salmonids
56%
Tuna
9%Edible oyster
8%Prawns
6%Pearl oyster
5%Barramundi
3%Abalone
3%Others
10%Chart 4.4  Aquaculture production by value
Source: Department of Agriculture, Australian fisheries and aquaculture statistics 2017.Total value of production AUD 1,347 million (2016/17).WT/TPR/S/ 396 • Australia  
 
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  recommendations to the Joint Authorities, the decision -maker for the granting of petroleum titles 
that underpin petroleum exploration and developme nt—exploration permits, retention leases and 
production licen ces. The Joint Authority for each state and the Northern Territory comprise the 
responsible Commonwealth minister and the relevant state or Northern Territory minister. The 
National Offshore Petroleum Safety and Environmental Management Authority  ensures that 
exploration and development activities are compliant with the relevant regulations.  
4.48.   State and territory governments are responsible for  the onshore exploration and development 
of non -renewable resources. Licences, titles and permits are administered under the relevant state 
or territory legislation relating to minerals and petroleum. The legislation varies between 
jurisdictions, but is si milar in content and administration, and is based on a two -stage process of 
exploration permit and production licence.20 Development of renewable resources is similarly 
governed by state and territory planning and development legislation , and is administere d by the 
relevant departments and agencies.  
4.49.   Foreign investment in the sector is governed by the Foreign Acquisitions and Takeovers Act , 
1975, the Foreign Acquisitions and Takeovers Fees Imposition Act , 2015, and the Register of Foreign 
Ownership of Water o r Agricultural Land Act , 2015. Under the provisions of the law, Australia applies 
a screening process , whereby foreign investment proposals are evaluated against the national 
interest criteria on a case ‑by‑case basis.  Under the current foreign investment f ramework, a mining 
or production tenement is considered to be Australian land ; as such , the threshold for such 
acquisitions is AUD 0. A higher screening threshold of AUD 1,154 million applies to privately owned 
investors from Chile, New Zealand , and the Un ited States.  
4.50.   On 1 December 2015, new foreign investment laws came into force. The new regime features , 
inter alia , stronger compliance and enforcement provisions, and higher screening thresholds for 
certain types of investment. Significant changes relevant  to the mining and energy sector include 
an increase , from 15% to 20% , of what constitutes a substantial interest. In the case of investment 
in sensitive businesses, the AUD 2 66 million threshold for screening is also applicable to FTA 
partners.21 
4.51.   Prior approval is required for the foreign acquisition of vacant commercial lan d. With respect 
to developed commercial land, FTA investors are required to obtain approval if the value of the 
interest is greater than AUD 1, 154 million, while the threshold for prior approval for all other foreign 
investors increased to AUD 2 66 million from the AUD 55 million that applied under the old law. There 
is also a new lower threshold of AUD 5 8 million that applies to sensitive land acquisitions. Sensitive 
land includes , inter alia , mines and critical infrastructure.  
4.52.   Acquisitions by foreign gover nment investors still require prior approval, regardless of value 
or type of investment. A foreign private investor will now only be deemed to be a foreign government 
investor if a government entity  (alone or together with one or more associates ) 22 has at least a 20% 
stake in the private investor (15% under the old regime).23 
4.2.2   Energy  
4.53.   Total energy production is approximately three times the total primary energy supply (TPES) . 
Consequently, Australia is one of the world's leading energy exporters.24 The TPES is dominated by 
                                                
20 For further details regarding investment in the minerals and petroleum sector in Australia, see 
Minerals and Petroleum in Australia, A Guide for Investors.  Viewed at: 
https://d28rz98at9flks.cloudfront.net/110628/110628_investors_guide.pdf . 
21 Sensitive businesses include media, telecommunications, transport, defence and military -related 
industries , and the extraction of uranium or plutonium or the operation of nuclear facilities.  
22 Paragraph 6(1)(l) of the Foreign Acquisitions and Takeovers Act , 1975 defines  "associate " to 
specifically provide that , for a foreign government investor, their associate s include any other person that is a 
foreign government in relation to that country (or part of a foreign country); any other person that is a 
separate government entity in relation to that country (or any part of that country); and any other foreign 
gover nment investor from the same country (o r any part of that country).   
23 The definition of a foreign government investor is not limited to departments of state and agencies, 
but includes sovereign wealth funds , and extends to a private entity in which a fore ign government entity has 
at least  a 20% inter est. 
24 The TPES is the sum of production and imports minus  exports and storage changes . WT/TPR/S/ 396 • Australia  
 
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  fossil fuels, with coal and oil being responsible for about 39% and 30%, respectively, followed by 
natural gas whose share is over 25%. Hydro energy, wind, solar and biofuels make up the rest.  
4.54.   Transport and industry are responsible for 40% and  35% of total final energy consumption 
(TFC) , respectively, with residential and commercial users accounting for the rest. The transport 
sector is almost entirely dependent on oil. The industrial sector is also a large consumer of oil , using 
it as both fue l in mining and feedstock in industrial processes. Natural gas , which  is mainly consumed 
in the industrial and residential sectors , is the second largest fuel in TFC after oil . Electricity  accounts 
for most of the energy consumption in the commercial and r esidential sectors.  
4.55.   Coal is the principal source of electricity generation , followed by natural gas and renewable 
sources . Coal accounted for 36% of installed capacity and 60% of generation in 2016. However, 
since 2010, the share of coal in installed capac ity has declined , while those of wind and solar have 
increased significantly (Table  4.3). 
Table 4.3 Installed power -generating capacity, 2010 -18 
(GW)   
2010  2011  2012  2013  2014  2015  2016  2017  2018  
Coal 29.68  29.90  29.90  28.91  28.97  28.17  27.23  25.15  24.95  
Natural gas  15.86  13.59  14.21  14.38  14.71  14.70  13.87  14.77  14.77  
Other fuelsa 4.03 6.56 6.28 6.89 7.02 6.84 6.69 6.41 6.85 
Hydrob 8.27 8.27 8.27 8.27 8.27 8.27 8.27 8.27 8.27 
Wind 1.86 2.13 2.56 3.22 3.80 4.23 4.33 4.82 4.82 
Solar 1.09 2.47 3.80 4.57 5.29 5.95 6.69 7.35 9.24 
Total capacity  60.80  62.92  65.01  66.23  68.06  68.16  67.53  66.76  68.90  
a Other fuels includes liquid fuels and refinery gas, liquid/ gas and solid/liquid gas combined plants, 
and biofuels.  
b Hydro includes pumped hydro storage capacity.  
Source:  Department of the Environment and Energy . 
4.56.   Australia is divided into two major electricity systems and wholesale markets. The National 
Electricity Market (NEM), with 54 GW of installed generation , is the wholesale electricity market for 
southern and eastern Australia. The wholesale electricity market in Western Australia has installed 
capacity of 5.8 GW for the South -West Interconnected System (SWIS). Additionally, there i s the 
North West Interconnected System (NWIS), an inland and isolated system dedicated to the mining 
industry, which does not have a wholesale market. The NWIS and SWIS are not physically connected 
to each other or to the NEM.  
Regulation and policy  
4.57.   Since 2 016, responsibility for energy matters lies with the Department of the Environment 
and Energy , which, in addition to energy and environmental legislation, is also responsible for energy 
security.25 The Australian Energy Regulator  (AER), which is a constitue nt part of the Australian 
Competition and Consumer Commission (ACCC), is responsible for promoting competition, fair 
trading , and regulating national infrastructure  in the energy sector (gas and electricity). The National 
Competition Council, a research an d advisory body, regulates third -party access to services provided 
by monopoly infrastructure.  
4.58.   The Council of Australian Governments (COAG) Energy Council coordinates between states, 
territories and the Commonwealth Government on energy policy. It supports  national rule -making 
under the National Electricity Law, the National Gas Law, and the National Energy Retail Law, among 
others.26 The national electricity and gas markets are administered by the AER, which oversees the 
wholesale/retail energy markets and the federal economic regulation of energy networks ; the 
Australian Energy Market Commission, which is the policy advisor and  rule maker for the NEM ; and 
the Australian Energy Market Operator (AEMO) , which  operates Australia 's largest gas and el ectricity 
                                                
25 Previously, the Department of Industry, Innovation and Science was responsible for energy matters.  
26 National refers to the interconnected NEM, which  encompasses  Queensland, New South Wales  
(including the Australian Capital Territory), Victoria, South Australia, and Tasmania . WT/TPR/S/ 396 • Australia  
 
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  markets and power systems.27 The AEMO is majority owned by the Government (60%) ; however, it 
is funded through fees. In June 2017, the COAG Energy Council created the Energy Security Board, 
which is tasked with foster ing coordinated r eforms  across  the NEM regarding reliability, security and 
emission reduction policies.  
4.59.   In April 2015, the Government detailed its energy strategy in the Energy White Paper (EWP). 
The Government 's vision for the energy sector is focused on  greater competition in energy markets , 
to improve consumer choice and to put downward pressure on prices ; to use energy more 
productive ly to lower costs with a view to improv ing energy use and stimulate economic growth ; 
and to encourage investment in innovation and energy resources dev elopment and to allow jobs and 
exports to grow.28 Following up on the EWP, the Government instituted the National Energy 
Productivity Plan 2015 -30, which targets a 40% improvement in energy productivity by 2030.29 
Additionally, under the Paris Agreement, Aus tralia increased its international climate change 
ambitions , and aims to reduce greenhouse gas emissions by 26% , to 28% below 2005 levels , by 
2030. However, the EWP does not incorporate the Government 's climate change pledge.  
4.60.   According to the International  Energy Agency, "energy prices have remained continuously 
high against low levels of competition in gas and electricity markets and low consumer choice, 
pointing to structural challenges. Concerns have been raised that gas supplies may reach a shortage 
in the east coast market as liquefied natural gas ( LNG) exports ramp up to 2022, further pushing 
up power prices".30 In response, the Commonwealth Government introduced a gas security 
mechanism in July 2017, involving possible LNG export restrictions.  
4.61.   The 2015 Review of Governance Arrangements for Australian Energy Markets (the Vertigan 
Review) and the 2017  Independent Review into the Future Security of the NEM (the Finkel Review) 
both stressed the need for institutional reform , and provid ed recommendations for streamlining and 
improving NEM governance.31 Furthermore, in 2017, the ACCC initiated the gas market inquiry 2017 -
20; seven interim reports have since been issued. Issues highlighted in the interim reports include , 
inter alia : inabili ty of market participants to gain access to pipeline capacity at reasonable prices, 
certain pipelines being contractually congested , and monopoly pricing by many major pipelines. The 
Commonwealth Government is amending the competition laws with a view to i mproving competition, 
and the ACCC is conducting several inquiries into electricity and gas prices, including the review by 
the AER of potential generator market power.  
4.3  Manufacturing  
4.62.   In 2017/18, m anufacturing accounted for 5.8% of GDP and 7.4% of employmen t in Australia. 
The principal contributors to the sector's value added are food processing; primary metals and metal 
products, including fabricated metal products; and machinery and equipment (Chart 4.5). Together, 
these industries also account for more th an 50% of manufacturing employment. Value added per 
employee is well above the sector's average in primary metals/metal production and in basic 
chemicals/chemicals products, but below average in fabricated metal production and food 
processing. Manufacturin g represented about one third of Australia's merchandise exports in 2018. 
Notable items were basic metals (29% of manufacturing exports); food beverages and tobacco 
(26%); chemicals, petroleum, coal, rubber and plastic products (21%); and fabricated metal 
products, machinery and equipment (18%). The competitiveness of the manufacturing sector has 
been in decline due to high energy input costs, high costs for other inputs (due to drought, and high 
                                                
27 The AEMO operates ten gas hubs , the NEM,  the Wholesale Electricity Market , and the power system in 
Western Australia.  
28 For further detail of the strategy, see Energy White Paper 2015 . Viewed at: 
https://apo.org.au/sites/default/files/resource -files/2015/04/apo -nid54017 -1214596.pdf . 
29 For further details of the National Energy Productivity Plan (NEPP) 2015 -2030, see 
http://www.coagenergycouncil.gov.au/publications/national -energy -productivity -plan-2015-2030. 
30 International Energy Agency: Australia 2018 Review . 
31 Department of the Environment and Energy, Independent Review into the Future Security of the 
National Electricity Market. Viewed at: https://www.energy.gov.au/government -priorities/energy -
markets/independent -review -future -security -national -electricity -market ; and COAG Energy Council, Review of 
Governance Arrangements for Australian Energy Markets – Final Report.  Viewed at: 
http://www.coagenergycouncil.gov.au/publications/review -governance -arrangements -australian -energy -
markets -final-report . WT/TPR/S/ 396 • Australia  
 
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  commodity prices) , and tighter credit conditions.32 However, m ulti-factor productivity gains in 
manufacturing were  3.8% in 2017 /18, its strongest annual growth since 2001 /02.33 In addition, 
after five years of decline in gross value added ( GVA), manufacturing recorded GVA growth of 3.1% 
in 2017 /18. The increase in GVA  was mainly driven by food, beverage and tobacco industries.  
Chart 4.5 Value added and employment distribution in the manufacturing sector,  
2017/18  
 
Source:  Australian Bureau of Statistics, Industry Overview. Viewed at:  https://www.abs.gov.au/Industry -
Overview . 
4.63.   According to the Australian Industry Group (Ai Group), m anufacturing experienced 
rebalancing i n terms of its products, technologies and supply chains , in response to long -term 
domestic  and global structural shifts. As at 2019, Ai Group 's Performance of Manufacturing Index 
showed a manufacturing expansion since 2016.34 According to the Group, t his re cent growth was 
most evident in food, beverages and groceries manufacturing and in sectors connected to their 
supply chains (such as specialist food -processing equipment and packaging ) and in locally 
manufactured building materials.  In addition, h igh-skill and technology -intensive goods exports 
more than doubled over the past two decades. Furthermore, according to the Group, a cross a range 
of sectors and product categories, Australian manufacturers continue to be quick and flexible when 
selling into global supply chains.  
4.64.   A range of government program mes provide support to Australian manufacturers at different 
stages of a firm 's lifecycle, including advice on start -up and growth, funding for innovation, and 
connections to research institutes to enhance R&D. These program mes include the recently opened 
AUD 50 million Manufacturing Modernisation Fund, which builds on other governme nt investments 
in manufacturing growth and competitiveness including: the AUD 100 million Advanced 
Manufacturing Fund; the Industry Growth Centres Initiative, particularly the Advanced 
Manufacturing Growth Centre; the Entrepreneurs ' Programme; the Cooperat ive Research Centres 
(CRC) Program, including the Innovative Manufacturing CRC; the R&D Tax Incentive; and the 
Commonwealth Scientific and Industrial Research Organisation . 
4.65.   The Department of Industry, Innovation and Science developed policies and programme s to 
assist businesses across Australia to build their capability, innovate, and grow in new and changing 
                                                
32 Ai Group, Australian Manufacturing in 2019 , Local and Global Opportunities . Viewed at:  
https://cdn.aigroup.com.au/Economic_Indicators/Economic_Outlook/Australian_Manufacturing_in_2019.pdf . 
33 Australian Bureau of Statistics, Market Sector Productivity – Hours Worked Basis . Viewed at: 
https://www.abs.gov.au/ausstats/abs@.nsf/0/E95A0098761C9EC9CA25807D00172D73?Opendocument . 
34 The Ai Group Australian Performance of Manufactu ring Index (Australian PMI®) recovered by 
2.5 points to 52.5 points in January 2019 (seasonally adjusted) from a revised result of 50.0  points in 
December 2018 (previously estimated at 49.5 points, seasonally adjusted). Results above 50  points indicate 
expansion , with higher results indicating a stronger expansion . 
Food prod.
20%
Machinery & 
equipment
12%
Primary metal & 
metal prod.
10%
Fabricated 
metal prod.
9%Basic chemical & 
chemical prod.
8%Transport 
equipment
8%Non-
metallic 
mineral 
prod.
6%O thers
27%Chart 4.y  Value added and employment distribution in the manufacturing sector, 2017/18
Value added Employment
Food prod.
26%
Machinery & 
equipment
11%
P rimary metal 
& metal prod.
5%
Fabricated 
metal prod.
13%Basic chemical 
& chemical 
prod.
5%Transport 
equipment
9%Non-metallic 
mineral prod.
5%Wood prod.
5%Polymer prod. & 
rubber prod.
4%O thers
17%
Source:    Australian Bureau of Statistics.WT/TPR/S/ 396 • Australia  
 
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  markets. Under the 2016/17 Department of Industry, Innovation and Science Corporate Plan, 
(cover ing 2016/17 to 2019 /2020), the Government intends to t ransition businesses and 
manufacturers to high -value, high -growth activities. It aims at achieving these goals through the 
Growth Fund, including the Automotive Diversification Programme and the Next Generation 
Manufacturing Investment Programme; the Manuf acturing Transition Programme and the 
Automotive Transformation Scheme; the Victorian Innovation and Investment Fund – Ford 
assistance, including the Geelong Region Innovation and Investment Fund and Melbourne's North 
Innovation and Investment Fund; and th e Tasmanian Jobs and Investment Fund.35 
4.66.   In addition, the Department  of Industry, Innovation and Science  flagship programme includes 
the Industry Growth Centres Initiative. The Initiative is part of the Government's industry policy to 
boost Australia's produ ctivity and competitiveness. A key component of it is the Advanced 
Manufacturing Growth Centre (AMGC). Its goal is to drive innovation, productivity and 
competitiveness across the manufacturing industry.  The Government established the Centre in a 
long-term partnership with key industry leaders , and is provid ing AUD 100 million over four years 
from 201 7/18 to boost innovation, skills and employment in advanced manufacturing .36 According 
to the authorities, advanced manufacturing aims at creatively diversifying focus across different 
stages of the manufacturing process, both before and after goods are produced. Most commonly, 
this involves contributing innovative products, components or services within global supply chains. 
It is intended that advanced manufacturing has impacts for both urban and regional areas.  The 
AMGC established collaboration hubs in 3D printing, advanced materials and industry 4.0  
(see below) , to leverage off the research base in these areas and encourage stronger coll aboration 
with industry. The AMGC  also works closely with the Innovative Manufacturing Cooperative Research 
Centre to accelerate Australia's rapid transition into high -value, high knowledge -based 
manufacturing.  
4.67.   The SME Export Hubs Initiative is funded for four years from 2018 /19, with the intention of 
assisting  Australian businesses , including in the manufacturing sector, to grow, export and increase 
local and regional jobs , by supporting the development of collaborative business networks (hubs). 
The Initia tive was allocated AUD 20 million , and is supporting export hubs in priority growth centre 
sectors such as advanced manufacturing.  
4.68.   The Australian Trade  and Investment  Commission ( Austrade ) also plays an important role in 
supporting the resilience of Austra lian manufacturing , through identi fying export opportunities and 
supporting SME entry into new markets and sectors.  Austrade proactively identifies potential 
opportunities for Australian companies who have advanced manufacturing supply capabilities, and 
technological expertise. It works closely with Australian companies involved with developing new 
generation technologies and those who may need investment to commerciali ze and market their 
innovative product offering s. Austrade often leverages international events to showcase to a global 
audience Australian research and innovation, and a workforce developing products and solutions. 
Austrade also plays an important role in helping Australian companies make  business connections 
and grow their international networks to further develop and export their products and services.  
4.69.   Industry 4.0 is one of the Australian industr ies response to the global opportunities arising 
from digital technologies . The initiative focuses on the opportunities  arising in manufacturing from 
investment s in digital technologies and from the integration of these new technologies into a range 
of manufacturing processes and supply chains . The Government provided AUD 6 million in 2018 /19 
to establish Industry 4.0 test labs to p repare businesses to transition to the smart factories of the 
future. Test  labs are being established at the University of Queensland, the University of Western 
Australia, the University of South Australia, Swinburne University of Technology, the Universit y of 
Technology Sydney , and the University of Tasmania . This pilot program me is a result of the principles 
and framework explored by the Government's Industry 4.0 Taskforce for the adoption of Industry 
4.0 in Australia.  
4.70.   In 2019, Australia's average applied  MFN tariff on manufactur ed goods was  2.7% (3.3% in 
2014)  (Table A3.1).  According to the Productivity Commission , the manufacturing sector received 
around 30% of net combined (tariff and budgetary) assistance  in 2017/18 . By value, the main 
                                                
35 Department of Industry, Innovation and Science. Activity 2.3: Economic transition. Viewed at: 
https://www.industry.gov.au/data -and-publications/corporate -plan-2016-17/performance/activities/activity -
23-economic -transition . 
36 AMGC. Viewed at: https://www.amgc.org.a u/. WT/TPR/S/ 396 • Australia  
 
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  recipients of ta riff assistance on outputs were food, beverages and tobacco ( AUD 620 million), metal 
and fabricated metal products ( AUD 260 million), petroleum, coal, chemical and rubber products 
(AUD 205 million), motor vehicles and parts ( AUD 191 million) , and t extiles, leather, clothing and 
footwear  (AUD 35 million). However, the overall tariff assistance for the sector fell from 
AUD 2.2 billion in 2014 /15 to AUD 1 .2 billion  in 2017 /18, largely reflecting the uptake of tariff 
concessions available under Australi a's trade agreements , reductions in tariff assistance to the 
textiles, clothing, footwear and leather industry, and changing trade  activities . 
4.71.   Budgetary assistance for manufacturing decreased from AUD  1.8 billion in 2014/15 to 
AUD 1.5 billion in 2017/18 (T able 4.4). In 2017/18, the main recipient of budgetary assistance was 
other machinery and equipment (17.6%), followed by petroleum, coal, chemicals, and rubber 
(16.1%). The motor vehicles and parts industries ' share of budgetary assistance in the sector 
gradually declined during the review period , from 19.8% in 2014/15 to 9.8% in 2017/18. In addition, 
the budgetary share also decreased for the textiles, clothing and footwear sector , from 3.1% in 
2014/15 to 2.3% in 2017/18.  
Table 4.4 Budgetary assistance to manufacturing, 2014/15 -2017/18  
Industry grouping  2014/15  2015/16  2016/17  2017/18  
Share in total budgetary assistance (%)      
Food, beverages and tobacco  9.7 8.9 7.7 8.6 
Textile, clothing and footwear  3.1 3.0 2.2 2.3 
Wood and paper products  1.1 1.0 1.7 1.6 
Printing, publishing, and media  2.9 3.6 4.0 4.4 
Petroleum, coal, chemicals, and rubber  17.8 14.0 13.8 16.1 
Non-metallic mineral products  1.5 1.4 1.5 1.6 
Metal product manufacturing  14.4 12.4 15.4 13.3 
Motor vehicle and parts  19.8 17.8 14.7 9.8 
Other transport equipment  1.7 2.5 2.1 2.4 
Other machinery and equipment  13.3 14.5 15.4 17.6 
Other manufacturing  1.3 1.3 1.7 2.1 
Unallocated manufacturinga 13.4 19.4 20.0 20.3 
Total outlays (AUD  million)  1,293.3  1,177.3  1,118.5  980.5  
Total tax expenditure (AUD  million)  486.6  505.1  505.8  492.1  
Total budgetary assistance (AUD  million)  1,779.9  1,682.4  1,624.3  1,472.6  
Share of total budgetary assistance to GDP (%)  0.1 0.1 0.1 0.1 
a Unallocated includes budgetary measures where details of beneficiaries are unknown.  
Source:  Productivity Commission, Trade & Assistance Review 2017 -18. Viewed at: 
https://www.pc.gov.au/research/ongoing/trade -assistance/2017 -18. 
4.3.1   Automotive  
4.72.   The automotive industry was in transition during the review period. The decline in demand 
for locally made vehicles resulted in a reduction in production volumes. The motor vehic le share in 
total exports decreased from 1.5% in 2015 to 0.6% in 2018. However, according to the authorities, 
the sector continues to be an important part of economic prosperity. The Government is providing 
assistance for the transition of the sector, its workers and businesses. According to the authorities, 
the future of manufacturing lies in value -adding activities, from product concept, R&D, design and 
production to distribution and after sales service.37 The Government has policies and programmes 
in plac e to enable the automotive industry to adapt to new technologies, expand into new markets, 
and connect to global opportunities.  
4.73.   In 2013 and 2014, three auto manufacturers in Australia announced the decision to end 
manufacturing of motor vehicles in 2016 (F ord) and 2017 (Toyota and Holden). However, all three 
                                                
37 Australian Government response to the Senate Economics References Committee Report, 
September  2017. Viewed at: 
https://www.industry.gov.au/sites/default/files/July%202018/document/pdf/au stralian -government -response -
to-future -of-australias -automotive -industry -senate -inquiry.pdf . WT/TPR/S/ 396 • Australia  
 
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  intend to maintain an Australian presence through other related automotive industry activities, such 
as national sales and distribution, engineering services and design/product development.  
4.74.   The Governme nt established a Growth Fund (AUD 155 million) in 2013/14 to support regions 
most affected by the closure of the car manufacturing industries. The Fund assists workers to 
transition to new jobs, and automotive supply -chain firms to diversify into new produ cts and 
markets, and accelerates new private sector investment in manufacturing. The Fund comprises 
elements such as the Next Generation Manufacturing Investment Programme (NGMIP), funded by 
the Government; the Skills and Training Initiative, funded by Toy ota and Holden; the Automotive 
Industry Structural Adjustment Programme (AISAP); and the Automotive Diversification Programme 
(ADP).38 
4.75.   The NGMIP (AUD 90  million) focuses on accelerating private sector investment in high -value 
manufacturing in Victoria and S outh Australia, covering vehicle manufacturing wind -down.39 Grants 
are available from AUD 500,000 to a maximum of AUD 2.5 million, for up to one third of eligible 
project costs. The Skills and Training Initiative provides access to tailored support services  to assist 
employees' transition to a new career, their own business or retirement. The AUD 30 million Initiative 
was open until the end of 2018. Similarly, the AISAP supports workers who have lost their jobs in 
the automotive manufacturing industry, inclu ding component suppliers. The Government allocated 
AUD 15 million to this Programme. The objective of the ADP (AUD 20 million) is to assist automotive 
supply chain companies to diversify out of the domestic motor vehicle manufacturing sector through 
invest ment in capital equipment and, thereby, retain manufacturing capability in Australia.  
4.76.   Following the 2013/14 Growth Fund, the Government introduced the Advanced Manufacturing 
Fund in 2017 with an allocation of AUD 100 million. The Advanced Manufacturing Fun d aims to boost 
innovation, skills and employment in advanced manufacturing. It will help car -related businesses 
move into other industries, and fund tertiary engineering courses and research into manufacturing 
techniques. Furthermore, it intends to assist  motor vehicle and parts manufacturers shift their 
onshore operations away from assembly towards design.  
4.77.   The Government also introduced a variety of other initiatives that support the automotive 
industry, such as the Automotive Transformation Scheme (ATS),  launched in January 2011. The ATS 
is a legislated entitlement scheme that provides assistance to registered participants for the 
production of motor vehicles and engines. It aims to encourage competitive investment, innovation 
and economic sustainability in the automotive industry. The continuation of the ATS, as legislated 
to 2020, will support an orderly transition of the automotive manufacturing sector post -2017. Firms 
that undertake eligible ATS activities, including in the export side of their busines ses, may continue 
to apply for funding during this period. In addition, the Manufacturing Transition Programme (MTP), 
launched in July 2015, aims to move firms away from low -tech commodity -style production to 
advanced manufacturing. According to the author ities, the MTP is part of the Government's broader 
strategy to enhance Australia's competitive strengths and build its industry's most productive 
sectors.  MTP grants are available for up to 25% of eligible costs for projects with a minimum 
investment of AUD 4 million.  
4.78.   The Victorian Innovation and Investment Fund – Ford Assistance  was developed by the 
Government in April 2014 after consultation with Victorian industry groups, automotive businesses, 
unions, and the community.  The Fund was allo cated AUD 46.5 million, and was to secure new 
opportunities for the sector up to and beyond 2017.  
4.79.   The Tasmanian Jobs and Investment Fund provides local government agencies, not for profit 
organizations and companies in the Tasmanian region with matched fun ding, to the limit of available 
funds (AUD 27.25 million), for projects that help diversify the regional economy, stimulate economic 
growth, and deliver sustainable employment in the region. One of the main investment sectors of 
the Fund is manufacturing.  
                                                
38 Australian Government response to the Senate Economics References Committee Report, 
September  2017. Viewed at: 
https://www.industry.gov.au/sites/default/files/July%202018/document/pdf/australian -government -response -
to-future -of-austra lias-automotive -industry -senate -inquiry.pdf . 
39 Australian Government, Investment in manufacturing operations in South Australia or Victoria . 
Viewed at:  https://www.business.gov.au/assistance/next -generation -manufacturing -investment -programme . WT/TPR/S/ 396 • Australia  
 
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  4.80.   The average MFN applied tariff on motor vehicles and related products (3.7%) remains higher 
than the average rate for the manufacturing sector, although it is much lower than in 2015. Net 
tariff assistance also decreased from AUD 167.4 million in 2014/15 t o AUD 117.9 million in 2017/18. 
In 2017/18, budgetary assistance was directed to the Automotive Transformation Scheme (allocated 
to motor vehicles and parts) (AUD 87 million), the Automotive Diversification Programme 
(AUD  1.7 million), Encouraging Innovati on in Advanced Manufacturing (AUD 1.6 million), and the 
Toyota Major Facelift Vehicle and Supplier Grant (AUD 700,000) . 
4.3.2   Textiles, clothing and footwear (TCF)  
4.81.   According to the authorities, the TCF share in GDP and employment in 2018 were 0.1% and 
0.3%, resp ectively. The share of exports of TCF in the total value of merchandise exports was 0.4% 
in 2018, with a value of AUD 1.4 billion. There were over 25,200 businesses operating in the TCF 
sector at the end of June 2016, with nearly 85% located in New South W ales, Victoria and 
Queensland. The sector is largely made up of small businesses, with nearly 60% non -employing and 
a further 39% employing less than 20 people.40 
4.82.   TCF plays a substantial role across the economy, including in design, education, fibre 
product ion, services, research, and technology. According to the authorities, the industry is 
continually diversifying, and Australia's position shifted to an innovator of smart textiles, high quality 
fibres, leading design education, and unique fabric developmen t. Government organizations, such 
as the Commonwealth Scientific and Industrial Research Organisation, are at the forefront of this. 
Therefore, traditional TCF manufacturers in Australia have been off -shoring the production of 
commodity goods or moving in to the manufacture of specialized value -added goods that are 
differentiated by design or innovation.41 Advanced applications for TCF products include smart 
protective textiles for the military and emergency services, textile composites for aerospace and 
marine applications, medical textiles including tissue -engineering scaffolds, filtration textiles for 
water and energy applications, fibrous materials such as components of mobile phones and batteries 
and large -scale applications in infrastructure, mining, ag riculture, aquaculture and horticulture.42 
The Government provides various types of assistance to the sector, including the Clothing and 
Household Textile Building Programme (AUD 21.2 million in 2015/16).43 
4.83.   Key industry stakeholders in the sector include the  Australian Fashion Council, the Australian 
Hide, Skin and Leather Exports Association, the Dry Cleaning Institute of Australia, the Food, Fibre 
and Timber Industries Training Council, the Laundry Association of Australia, the Specialised Textiles 
Associat ion, the Technical Textiles and Nonwoven Textiles Association, the Council of Textile and 
Fashion Industries of Australia Limited, and the Millinery Association of Australia Inc.44 
4.84.   The average MFN applied tariff for clothing (4.5% in 2019) is much lower tha n in 2014 (8.4%). 
The reduction was much less pronounced for textiles (4.3% vs. 4.1%). During the review period, 
TCF activities benefited from government support, as reflected in several assistance indicators. 
However, the effective rates of combined assis tance for the industry decreased from 3.2% in 
2014/15 to 1.5% in 2017/18, following the reduction of remaining TCF tariffs from 10% to 5% in 
2015. The effective assistance for the TCF industry is now around the manufacturing average. In 
addition, the estim ated value of net tariff assistance also decreased (19.3% in 2017/18), following 
reductions in tariffs on TCF items.  
                                                
40 Australian Industry and Skills Committee, Textiles, Clothing and Footwear . Viewed at: 
https://nationalindustryinsights.aisc.net.au/industries/manufacturing -and-related -services/textiles -clothing -
and-footwear . 
41 IBSA Manufacturing, Textiles, Clothing and Footwear Industry Referen ce Committee, April 2018 . 
Viewed at: https://ibsa.org.au/wp -content/uploads/2018/04/MST -2018-Skills-Forecast_draft -public.pdf . 
42 IBSA Manufacturing, Textiles, Clothing and Footwear Industry Reference Committee, April 2018 . 
Viewed at: https://ibsa.org.au/wp -content/uploads/2018/04/MST -2018-Skills-Forecast_draft -public.pdf . 
43 Productivity Commission , Annual Report Series,  Trade and Assi stance Review 2017 -18. Viewed at: 
https://www.pc.gov.au/research/ongoing/trade -assistance/2017 -18/trade -assistance -review -2017-18.pdf . 
44 IBSA Manufacturing, Textiles, Clothing and Footwear Industry Reference Committee , April 2018 . 
Viewed at:  https://ibsa.org.au/wp -content/uploads/2018/04/MS T-2018-Skills-Forecast_draft -public.pdf . WT/TPR/S/ 396 • Australia  
 
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  4.4  Services  
4.4.1   Financial services  
4.85.   Australia has a well -integrated, developed and deep financial sector, which has considerable 
bearing on the reg ional financial sector and architecture. It comprises authorized deposit  taking 
institutions, responsible for approximately  60% of the sector's total assets; pension funds (27%); 
investment funds (5%); insurance (5%); and finance companies (2%). Specialize d credit institutions 
make up the rest ( Table 4.5).  
4.86.   Total financial sector assets are roughly four times Australia's annual GDP, while the sector's 
direct contribution to GDP was nearly 9 % and it employ ed 3.5 % of the workforce  in 2017/18 . 
Table 4.5 Structure of the financial system, 2019  
 Numbera Assets  
(AUD billion)  Assets  
(USD billion)  % of GDP  
Authorized -deposit taking institutions  148 4,864  3,411  250 
Major domestic banks  4 3,665  2,570  188 
Other domestic banks  35 479 336 25 
Foreign subsidiaries and foreign 
branches  54 664 465 34 
Superannuation funds  190b 2,870c 2,013  147 
Insurance companies  125 329 231 17 
Credit unions and building societies, 
and other authorized deposit taking 
institutions  47 56 39 3 
Total  463 8,063  5,654  414 
Memorandum      
Nominal GDP (AUD billion)  1,946     
Exchange rate (AUD per USD)d 1.426     
a Number of licensed institutions.  
b Figure does not include the number of small A ustralian Prudential Regulation Authority (APRA)  funds 
and self -managed superannuation funds. If these were included the number would be 601,709.  
c Total size of the superannuation system (includ ing small APRA funds and self -managed 
superannuation funds).  
d RBA monthly exchange rate as at 28 June 2019.  
Source:  Information provided by the RBA.  
4.4.1.1   Banking sector  
Legislation and supervision  
4.87.   The main laws governing the banking sector are the Banking Act , 1959 and the Banking 
Regulation 201645, which repealed the Banking Regulations , 1966. The new Regulation consolidates 
the Banking Regulations , 1966 and the  Banking (Unclaimed Moneys) Regulations 1993  into a single 
Regulation; redundant provisio ns such as those relating to dates that have passed , were repealed; 
it repealed spent or redundant associated regulations, including those due to sunset in the next two 
years; and changes to language were incorporated, so as to make it more current and con sistent 
throughout the Regulation.  
4.88.   Regulatory powers are shared among four agencies. The Australian Prudential Regulation 
Authority (APRA), which was established under the Australian Prudential Regulation Authority Act , 
1998, is responsible for the prudential regulation and supervision of authorized deposit -taking 
institutions (ADIs), as well as life and general insurance companies (including reinsurers and friendly 
societies) and the superannuation (retirement savings) industry ( other than self -managed 
superannuation funds). Under the Law, the APRA must balance the objectives of financial safety , 
efficiency, competition, contestability and competitive neutrality and, in balancing these objectives, 
                                                
45 Australian Government, Banking Regulation 2016 . Viewed at: 
https://www.legislation.gov.au/Details/F2016L01901/Explanatory%20Statement/Text . WT/TPR/S/ 396 • Australia  
 
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  promote financial system stabilit y. Furthermore, under the provisions of the Banking Act, the APRA 
is required to exercise its powers and functions for the protection of depositors. It entitles the APRA 
to manage or respond to circumstances in which the ability of an ADI to meet its oblig ations may be 
threatened. The legislation provides the APRA with a wide range of enforcement and crisis 
management powers to deal with institutions engaging in unsafe and unsound practices . These 
include powers to enforce compliance with prudential requirements to investigate and obtain 
information, a nd a range of resolution powers.  The Financial Sector Legislation Amendment (Crisis 
Resolution Powers and Other Measures) Act 2018 enhanced the APRA's crisis resolution powers and 
more clearly  define d its mandate regarding resolution planning. The APRA now has formal direction 
powers related to resolution planning and removing barriers to the resolvability of regulated entities 
or groups. It can now direct institutions to make changes to their systems, business practices, or 
operations , in order to make them more resolvable. As such , the APRA is the lead resolution authority 
with respect to the institutions it regulates. Additionally, it envisages developing a formal prudential 
framework for res olution planning. In this regard it plans to start consultations in 2019 , and 
envisages developing a formal prudential framework for resolution planning over 2020.  The APRA is 
also mandated to administer the Financia l Claims Scheme  if an APRA -regulated institution fails.  
4.89.   The APRA is the licensing authority for the financial sector. There are no restrictions on the 
number or size of operations of foreign banks in the Australian market , and foreign -owned 
subsidiaries ar e subject to the same legislative and prudential requirements as locally  owned ADIs. 
The Financial Sector (Shareholdings) Act , 1998 operates in parallel with this process , and requires 
that any investor, foreign or domestic, wishing to acquire an interest of 15% or more in a financial 
institution must notify and seek the Treasurer's approval. The Treasurer reviews whether 
applications are in the national interest , on a case -by-case basis, taking into account all relevant 
considerations, such as prudential r equirements and the impact on the economy and competition. 
With a view to encouraging competition, the APRA introduced a phased or restricted licensing regime 
in 2018. The new regime, which is geared towards smaller players and startups, allows new entrant s 
two years to develop the resources and capabilities which would allow them to become fully -licensed 
ADIs. The approach has phased -in regulatory obligations , reflecting the restricted range of permitted 
activities. The APRA also put limitations on the size and operations of these restricted licensees , to 
reduce possible financial stability risks . It also requires that such institutions formulate an exit 
strategy (with resolution funds) to ensure they can smoothly exit the market if necessary without 
causing financial stability concerns.  
4.90.   The RBA serves as the lender of last resort , and is responsible for ensuring the stability of the 
financial system. In its role as the as the central bank,  it is responsible for mitigating the risk of 
financial shocks tha t may have systemic consequences , and for responding if a financial crisis does 
occur. The RBA is also mandated to ensure that the payment system is safe and sound. A New 
Payments Platform was launched in February 2018. It provides an open access infrastru cture for 
fast payments in Australia. It enables households, businesses, and government agencies to make 
simply addressed payments, with near real -time fund availability to the recipient, on a 24/7 basis.  
4.91.   Use of public funds for guarantees in ADI resolutio n and crisis management require the 
approval of the Treasurer and the Minister for Finance. Furthermore, for the activation of the 
Financial Claims Scheme (FCS)46 and the Financial System Stability Special Account under Section 
70C of the Banking Act , 1959, the approval of the Treasurer and the Finance Minister is needed. The 
Treasurer is also responsible for approving applications to hold significant ownership stakes in ADIs 
(this power was delegated to the APRA for ADIs with under AUD  1 billion in assets).  Additionally, the 
Treasury provides advice to the Government on policy and possible reforms that promote a sound 
financial system, including on financial distress management arrangements.  
4.92.   Monitoring, regulating and enforcing co mpany and financial services laws, and ensuring and 
promoting market integrity and consumer protection in the financial services sector and the 
                                                
46 The FCS is an Australian government scheme that provides protection to deposits  up to a limit of 
AUD 250,000 for each  account holder  at each bank, building society and credit union that is  incorporated in 
Australia and authori zed by  the APRA . Under the FCS, protection of up to AUD 5 ,000 per policy with  general 
insurers  is also provided if one of these financial institutions  fails. The FCS can only come into effect if it is 
activated by the Government when an institution  fails. Once activated, the  FCS will be administered by the 
APRA . The FCS was established by Parliament in 2008.  WT/TPR/S/ 396 • Australia  
 
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  payments system are the responsibility of the Australian Securities and Investments Commission 
(ASIC).  
4.93.   Coordination a mong the above agencies with respect to crisis preparedness in the financial 
services sector is the responsibility of the Council of Financial Regulators ( CFR). The CFR is an 
advisory body which is chaired by the Governor of the RBA and comprises represent atives from the 
RBA, the Treasury, the APRA and the ASIC. It provides advice and non -binding recommendations to 
the Government on financial sector (stability) matters; and provides input to deliberations of 
member agencies on some policy issues. The CFR do es not have any independent legal powers or 
standing or any regulatory functions.  
4.94.   A special MoU between the CFR members sets out the objectives and processes that deal with 
stresses in the financial system, including the CFR acting as coordinating forum fo r responses to any 
financial crisis.  
4.95.   The CFR also has a number of working groups, which undertake more detailed policy 
development work, including the CFR Crisis Management Working Group (CMWG), which is the 
first point of contact in a crisis. The CMWG is responsible for, inter alia , developing the Financial 
Market Infrastructures ( FMI) crisis management toolkit and setting up the FMI crisis communication 
arrangements.  
Structure and performance  
4.96.   The banking system ( ADIs) is highly concentrated, with the four  largest banks representing 
nearly 80% of the subsectors assets ( Table 4. 5); as such , these are deemed domestic systemically 
important banks (D -SIBs) in Australia47, the implication being that in the event of a failure of any 
one of these banks the impact o n the financial system and the overall economy would be severe.  
4.97.   The banking sector appears to be in good health, with banks being well -capitalized. The 
regulatory capital to risk weighted assets ratio was 1 5% in June 2019, compared with 11.4% in 
2010, and was significantly higher than the 8% prudential requirement (excluding the conservation 
buffer of 3.5% for D -SIBs and 2.5% for other banks).48 The high level of concentration resulted in 
relatively strong profitability , particularly for D -SIBs, but also for the  sector as a whole, because of 
the pricing power that the large banks wield. Banks continue to be liquid , with the liquidity coverage 
ratio being in excess of 135%. Average non -performing loans are less than 1%, depicting high asset 
quality (Table  4.6). Additionally, the APRA applies  leverage ratio requirements in line with the Basel 
III implementation of 1 January 2022. A minimum leverage ratio of 3.5 % will apply to internal 
ratings -based ( IRB) ADIs.  Furthermore, the APRA publicly stated that, in the interim, it continues to 
expect IRB ADIs to report a leverage ratio well above this level.  However, banks remain vulnerable 
due to their high exposure to residential and commercial real estate, with residential mortgages 
accounting for over half of ban k lending. After a period of rapid growth, the housing -market appears 
to be cooling. The IMF estimates  that prices were overvalued by between 5 % and 15% , as at Q3 
2017, which would imply expectations of a soft landing. However, risks of a hard landing rema in, 
due to an overshoot in the price correction. The housing loan market is mainly made up of variable 
rate mortgages, which makes borrowers more sensitive to interest rate fluctuations. However,  
financial products related to variable rate mortgages allowe d many mortgage holders to accumulate 
a substantial buffer of advance payments ("mortgage prepayments"), making them less sensitive to 
immediate shifts in interest rates. Furthermore, indebtedness is concentrated in middle - and high -
income households, rath er than low -income households, which implies greater ability to withstand 
financial shocks.49 As such, direct risk to the financial sector from mortgage defaults, triggered by a 
collapse in the housing market or interest rates hikes, is limited by the autho rities. Additionally, risk 
of financial stress from the large number of mortgages with interest -only phases that are due to be 
                                                
47 Designation as D -SIBs follows the Basel Committee's principles based minimum framework for D -
SIBs. These include indicators such as size, interconnectedness, substitutability/financial institution 
infrastructure and complexity.  For further information see  Information Paper on "Domestic systemically 
important banks in Australia ". Viewed at: https://www.apra.gov.au/news -and-publications/apra -releases -
framework -for-domestic -systemically -important -banks -australia . 
48 D-SIBs are subject to a 1 % surcharge, which i s part of their  capital conservation buffer of 3.5 %. 
49 Household debt and over indebtedness in Australia. Viewed at:  
https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/6523.0~2015 -
16~Feature%20Article~Household%20Debt%20and%20Over -indebtedness%20(Feature%20Article)~101 . WT/TPR/S/ 396 • Australia  
 
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  converted to principal -plus-interest repayment is also considered to be limited.50 According to the 
authorities, r isks associated with interest -only lending moderated in recent years following APRA 
measures to reduce the flow of interest -only lending,  by introducing a 30% limit on interest -only 
loans  as well as  other steps to strengthen lending standards.  
Table 4.6 Financial soundness indicators for the banking sector, 2014 -19 (Q1)  
 
2014  2015  2016  2017  2018  2019  
(Q1)  
Capital adequacy        
Regulatory capital to risk -weighted assets  12.2 13.8 13.6 14.5 14.8 14.7 
Regulatory tier 1 capital to risk -weighted 
assets  10.6 11.8 11.4 12.4 12.6 12.7 
Asset quality        
Non-performing loans to total gross loans  1.0 0.9 1.0 0.9 0.9 1.0 
Total provisions to non -performing loans  54.9 48.9 48.9 43.4 .. .. 
Sectoral composition of loans        
Households: housing loans  63.3 62.3 62.5 62.9 .. .. 
Non-financial corporates  27.7 28.0 28.3 28.0 .. .. 
Inter-bank loans  3.6 4.3 4.2 4.5 .. .. 
General government  0.3 0.3 0.3 0.2 0.2 0.2 
Other  5.2 5.1 4.7 4.4   
Profitability        
Net income (y ear-on-year % change)  -6.7 -1.6 -1.2 1.9 .. .. 
Return on assets  1.4 1.4 0.8 1.2 1.3 0.9 
Return on equity  22.9 23.8 12.0 16.7 19.4 12.9 
Interest margin to gross income  65.9 59.4 82.5 71.3 64.9 77.0 
Non-interest expenses to gross income  47.1 42.8 53.8 47.5 44.7 54.6 
Liquidity        
Liquid assets to total assets  16.5 17.0 17.6 17.8 18.0 17.5 
Liquid assets to short term liabilities  40.2 39.7 41.2 40.1 41.9 41.2 
Loans to deposits  114.9  118.9  118.2  114.6  .. .. 
Liquidity coverage ratio  .. 125.1  132.9  124.8  .. .. 
Exchange rate exposure        
Foreign -currency -denominated liabilities 
to total liabilities  21.1 23.3 21.8 20.1 21.8 20.4 
Other        
Large exposure to capital  99.2 82.0 83.3 76.5 79.3 .. 
Housing index  117.6  129.0  137.1  149.8  .. .. 
.. Not available.  
Source:  APRA, and IMF F inancial Soundness Indicators  database.  
4.98.   Wholesale funding continues to be responsible for about one  third of total bank liabilities, of 
which nearly two  thirds is from international sources, making domestic banks susceptible to shocks 
in the global financial markets. However, according to the authorities, the majority of wholesa le 
funding is in the form of stable, long -term debt, which coupled with very strong capital levels, the 
liquidity coverage ratio and the net stable funding ratio, contribute to resilience of the sector.  
4.99.   The authorities are cognizant of the above risks , and have been taking measures to mitigate 
them. The APRA adopted increased capital targets to be achieved by 2020. Specifically, the D -SIBs 
need to achieve Common Equity Tier 1 capital ratios of around 10.5%, which are around 5 
percentage points higher than international peer institutions. In addition to the higher capital targets, 
the APRA has been implementing reforms to make the financial system more resilient. These 
included, inter alia : implementing Basel III liquidity standards, reinforcing sound mortg age lending 
standards, improving governance and accountability, and strengthening crisis management and 
preparedness. Additionally, a cross -industry risk management standard, a governance and risk 
management framework for conglomerates, and a phased approa ch to licensing were also 
implemented. Specialist risk and supervision teams within the APRA were restructured, bringing 
together specialists in statistics, industry analysis, and risk, to develop a new risk and data analytics 
function.  
4.100.   Market concentratio n, and the quality and price of financial services were areas of concern. 
A bank levy was introduced in 2017 on banks with over AUD  100 billion in total liabilities. The levy 
                                                
50 OECD, Economic Surveys Australia 2018 . WT/TPR/S/ 396 • Australia  
 
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  reduces the largest banks' funding cost advantage , and provides a more level play ing field for smaller 
banks.51 The Productivity Commission's inquiry on competition in the Australian financial system was 
completed in June 2018. The main conclusion was that , "While some of the major banks argued that 
they do not, individually, exercise m arket power, they have been able to insulate themselves from 
competition and sustain returns despite the massive system -wide shock of the global financial crisis. 
There is evidence that they have sustained prices above competitive levels, offered inferior quality 
products to some groups of customers (particularly those customers unlikely to change providers), 
subsumed much of the broker industry and taken action that would inhibit the expansion of smaller 
competitors in some markets. All are indicators of t he use of market power to the detriment of 
consumers ".52 The authorities stated that a number of the recommendations made in the 
Productivity Commission report ha ve already been implemented or are at an advanced stage of 
development, including implementing open banking as part of the broader Consumer Data Right, 
mandating comprehensive credit reporting to give new entrants and smaller lenders access to a 
deeper, richer set of data, enabling them to better serve customers and assess borrowing capacity. 
In add ition, work is underway to increase interest rate transparency in the mortgage market after 
the ACCC 's inquiry into residential mortgage pricing in 2018 . The Government also legislated a 
streamlined application for new entrants to the banking sector to obt ain a banking licence , and 
relaxed Financial Sector (Shareholding) Act , 1998 ownership requirements.  
4.101.   In 2017 , the Government established a Royal Commission to investigate misconduct of 
banks and other financial services entities. The Commission's interim r eport was issued in 
September  2018, and the final report in February 2019. The interim report revealed that some 
misconduct by financial services entities was known to regulators . The report focused on two areas: 
why did the misconduct take place, and what  can be done to ensure it doesn't happen again . The 
final report made 24  recommendations relating to institutions and individuals about dishonest 
misconduct , and charged the regulators with the responsibility for not acting.53 
4.102.   According to the RBA, "the recommendations made in the Final Report of the Royal 
Commission will require further changes to legislative frameworks and to how regulators and 
financial inst itutions operate. These recommendations include: addressing conflicts of interests in 
mortgage broking and financial advice; simplifying laws by removing numerous exceptions to ensure 
that the intended behavior is clear to all; placing the onus on financia l institutions to strengthen 
culture and governance practices, including by designing and regularly reviewing remuneration 
arrangements to ensure they provide the right incentives; and strengthening how regulators respond 
to misconduct and are held account able for their performance. Changes are clearly needed to 
improve the financial system. Changes should reduce the risk of future misconduct, ensure the 
quality of financial  services provided in Australia meets community expectations, and protect the 
reputa tion of Australian banks among international creditors ".54 
4.103.   While noting that the Australian financial system is fundamentally sound and has been further 
strengthened, the IMF's 2018 Financial Sector Assessment Program (FSAP) Review of Australia also 
highlig hted some of the above issues , and made several recommendations to improve current 
arrangements.  According to the FSAP, the household sector posed challenges, mainly due to high 
real estate valuations coupled with high household leveraging. The concentrate d nature of the 
banking system, banks' reliance on offshore wholesale funding, and developing a resolution 
framework for financial market infrastructures were other areas of concern.  
4.104.   The IMF recommendations for improvement included: "a more comprehensive a ssessment 
of banks' risk management and governance frameworks on a periodic basis; use of formal corrective 
actions where necessary; and for APRA to continuously develop its resources and skills to match the 
evolution in banking services and risks – partic ularly in specialized areas such as information 
technology (IT), cyber risk and 'fintech'. In terms of insurance, the  IMF recommended further 
improvements to supervisory data systems to facilitate supervisory risk analysis of larger insurers, 
                                                
51 The levy rate is 0.015 %, paid quarterly, on relevant banks ' liabilities (subject to some exclusions). In 
2018/19, the bank levy contributed AUD 1.56 billion  to general revenue.  
52 Productivity Commission 2018, Competition in the Australian Financial System , Report No. 89, 
Canberra . 
53 Final Report, Royal Commission into Misconduct in the Banking, Superannuation and Financial 
Services Industry . Viewed at: https://static.tr easury.gov.au/uploads/sites/1/2019/02/fsrc -volume1.pdf . 
54 RBA, Financial Stability Review , April 2019 . Viewed at: 
https://www.rba.gov.au/publication s/fsr/2019/apr/pdf/financial -stability -review -2019-04.pdf . WT/TPR/S/ 396 • Australia  
 
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  and further e nhancing coordination between APRA and the Australian Securities and Investments 
Commission (ASIC) in assessing insurance companies ".55 
4.105.   The IMF also raised concerns regarding transparency in the CFR's activities, and 
recommended that increased transparency and formalization could further strengthen collaboration, 
and boost confidence in the regulatory agencies, so that they would be better positioned to tackle 
emerging systemic risks.  
4.4.1.2   Insurance  
Legislation and supervision  
4.106.   The main laws governing the insuranc e sector are the Insurance Act 1973 for general 
insurance; the Life Insurance Act , 1995 for life insurance; and the Private Health Insurance Act  2007 
for private health insurance.56 
4.107.   As with the banking sector, the APRA is responsible for the prudential regulation of life, 
general and private health insurers (including reinsurers), and the ASIC is responsible for market 
conduct regulation and supervision, promoting market integrity and consumer protection across the 
financial services sector (excluding private health insurers). The RBA is responsible for financial 
system stability and the payments system. The APRA is also the licensing authority for both life and 
general insurance companies, including reinsurance comp anies.57 
4.108.   Private health insurance companies were regulated by the Private Health Insurance 
Administration Council (PHIAC). However, in the 2014 -15 Budget, the Commonwealth Government 
announced the closure of the PHIAC; its prudential regulation functions we re transferred to the APRA 
in 2015, and its remaining functions were assumed by Australian Department of Health on 1 July 
2015.  
4.109.   Under the provisions of the law, a single entity cannot write both life insurance and general 
insurance. A foreign entity can on ly insure local assets under specific circumstances, such as high 
value insureds; atypical risks; and risks that cannot reasonably be placed in Australia.  
4.110.   Australia permits full foreign ownership of private general and life insurance companies. 
Foreign gen eral insurance companies may establish in Australia as branches or subsidiaries; there 
are no restrictions on the number or size of either. Foreign life insurance companies may only 
establish as subsidiaries but not branches. An exception to this rule  exists for eligible foreign life 
insurance companies from the United States; New Zealand; Japan; and the Republic of Korea under 
their respective RTAs. There are no restrictions on the number and size of foreign -owned life 
insurance companies.  
4.111.   Under the Insura nce Act , a general insurer is required to maintain assets in Australia of a 
value  that is at least equal to the total amount of its liabilities in Australia. Additionally, the capital 
held must be more than the prudential capital requirement. For a branch insurer, the assets in  
Australia must exceed the liabilities in Australia by at least the amount of its minimum capital 
requirement. For life insurers, the Life Insurance Act (LIA) requires a life insurer to establish 
statutory funds  relating solely to the  life insurance business of the company or to a particular part 
of that business. The LIA also prohibits the mortgage or charging of any assets of a statutory fund, 
controls the movement of assets in and out of a statutory fund, provides a definition of re stricted 
investments (which relates to related -party dealings) , and requires the reporting of such restricted 
investments.  
4.112.   According to the IMF's 2018 FSAP, "in response to the Financial Services Inquiry in 2015, 
the Government committed to  introduce produ ct design and distribution obligations. These would 
impose requirements related to  product design, product distribution, review of product performance, 
distribution strategies, conduct  at point of sale, and would allow ASIC to take regulatory actions to 
                                                
55 RBA, Financial Stability Review , April 2019 . Viewed at: 
https://www.rba.gov.au/publications/fsr/2019/apr/pdf/financial -stability -review -2019-04.pdf . 
56 These Acts may be viewed at : http://www.comlaw.gov.au . 
57 Public insurance companies (i.e. those which provide compulsory insurance under state or territorial 
legislation ) are licensed by and regulated at the state level.  WT/TPR/S/ 396 • Australia  
 
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  remedy deficiencies. It would also  grant ASIC new product intervention powers, which would enable 
ASIC to intervene in relation to the  product feature, the types of consumers that can access the 
product, or the circumstances in which  consumers access the pro duct. Draft legislation was released 
for public consultation in December  2017".58 These commitments were legislated through the 
Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) , 
which  passed into law in early 2019.  
Structure and performance  
4.113.   The insurance subsector consists of life, general (non -life) and health insurance. It accounts 
for around 5% of the total financial sector's assets ( Table 4. 5). The life insurance sector is dominant , 
accounting for approximately 65% of the sectors assets, while general insurance is responsible for 
around 3 5%. As with the banking sector , the insurance industry is also characterized by a high level 
of concentration. The five  largest life and general in surers account for more than 80% and 75% of 
the market share  in terms of respective total assets. The industry is suffering from low growth and 
declining life premiums. Life insurance premiums decreased about 1% since 2013, and general 
insurance premiums g rew only 2 %-3% annually since 2013, which is slower than general economic 
growth. Consequently, penetration ratios for both life and general insurance were less than 3% in 
2017.  
4.114.   Between 2013 and 2017, both life and general insurers enjoyed relatively stabl e profits. 
Return on Equity (ROE) of the life insurance sector ranged between 9 % and 15%. However, since 
then, profitability has been on a downward trend. The industry registered a loss in the second half 
of 2018, due to weak investment returns and write -offs. As a result, the life insurance sector's 
average solvency coverage ratio declined from 200% in 2017 to around 180% in 2019. However, 
compared with the regulatory minimum solvency coverage ratio of 100% for both life and general 
insurers, "the high -level capital adequacy ratios indicate that the overall insurance sector is relatively 
resilient against a plausible adverse scenario ".59 Expected changes in the industry , resulting from  
the results and findings of the Royal Commission60 and the Parliamentary Inquiry into the life 
insurance industry , will add further pressure on profitability. Changes envisaged include a 
recommended ban on unsolicited selling of life insurance , the review of life insurance commissions, 
and legislation to require insurance within superannuation funds to be offered on an opt -in basis for 
inactive accounts. According  to the RBA, "these recommendations compound persistent structural 
issues affecting profitabili ty, including historical underpricing of policies, loose product definitions, 
overly generous benefits and rising claims, particularly for mental health. The latter has particularly 
weighed on individual disability income insurance, which accounts for much  of the recent decline in 
profit. This has been an area of heightened focus for APRA and is the subject of a thematic review ".61 
4.115.   Profitability in the general insurance category exhibits more volatility. ROE of the sector 
ranged from 9% to 19% between 2013  and 20 17. Furthermore, in 2018 , profits continued their 
upward trend. The increase in profits is on account of stronger underwriting results, which partly 
made up for the decline in investment returns. Profits were also generated due to increases in 
insuran ce premiums in some consumer and commercial categories. As a result, the industry average 
solvency coverage remained constant , at around 180%.  
4.116.   During the review period, the ownership structure in the insurance industry changed. Almost 
all Australian banks sold, or announced the sale of, their life insurance businesses to large global 
insurance specialists.62 The changes reflect, inter alia, lower returns in the life insurance business 
compared with other  financial services, and the simplification of their bu siness models by some of 
the major banks. The new owners have underwriting expertise, scale , and strong financial resources , 
which would imply more and better diversification, the capacity to make investments to upgrade  
                                                
58 IMF, Australia Financial Sector Assessment Program: IMF Country Report 19/50 . 
59 IMF, Australia Financial Sector Assessment Program: IMF Country Report 19/50 . 
60 Final Report, Royal Commission into Misconduct in the Banking, Superannuation and Financial 
Services Industry . Viewed at : https://static.treasury.gov.au/uploads/sites/1/2019/02/fsrc -volume1.pdf . 
61 RBA, Financial Stability Review , April 2019 . Viewed at: 
https://www.rba.gov.au/publications/fsr/2019/apr/pdf/financial -stability -review -2019-04.pdf . 
62 OnePath life (2nd largest life) which belonged to the ANZ group was acquired by Zurich Financial  
Group (Switzerland). Colonial Mutual Life (4th largest life) , which belonged to the CBA group , was acquired by 
the AIA group  (Hong Kong , China ). MLC (6th largest life) , which belonged to NAB , was acquired by Nippon Life 
(Japan), with 80 % of MLC shares held by Nippon Life and 20 % retained by NAB.  WT/TPR/S/ 396 • Australia  
 
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  capability , and access to further sp ecialized insurance and wealth management skills within these  
acquiring entities.  
4.117.   In its 2018 FSAP, the IMF noted that there were "signs of increasing risk -taking by some 
large and complex insurers, including (i) the creation of  potentially risky offshore vehicles, such as 
captive reinsurance and investment vehicles; (ii) an increase  in the holdings of foreign bonds due to 
a shortage of domestic fixed income instruments to hedge  duration exposure; (iii) offerings of new 
investment products, some of which us e derivatives, securities  lending, etc., without clear regulation 
(for example, in relation to embedded leverage, risk  concentration and disclosure) by either APRA 
or ASIC; and (iv) introduction and increasing sales of  annuities with minimum investment guarantees 
and specified maturities ".63 Remedial action suggested by the IMF included increased monitoring 
and prudential supervision of group risks. In this respect, the IMF advocated imposing a robust risk 
management framework in product design  and sales materials, increasing the ASIC's enforcement 
powers , including imposition of significantly higher penalties, and greater use of existing powers 
such as licen ce suspension orders. The IMF also encouraged further strengthening of APRA -ASIC 
coordin ation.  
4.118.   The Royal Commission inquiry also found a number of serious misconduct issues in the 
insurance industry, including the fact that the largest life insurance group  admitted to misleading 
the ASIC about charging customers for advice they never received . 
4.4.2   Communications  
4.4.2.1   Telecommunications  
4.119.   Information , media and telecommunications services accounted for 2.4% of GDP and 1.8% 
of total employment in 2017/18 (Table 1. 1). Australia was ranked 1 4th out of 1 76 economies in the 
International Telecommunications Unions' 201 7 Information and Communications Technology 
Development Index, moving up two places from the previous year.64 The telecommunications 
industry generated AUD 44 billion  in total revenue in 2018.65 
4.120.   According to the authorities, the o ngoing shift to mobile telephone services continued; 
34.84  million mobile active subscriptions  were in operation  in June 2018 , up 4% from 33.57 million 
in 2017.66 In addition, a s at June 2018 , 83% (approximately 1 6 million) of Australian adults had a 
smartp hone. The percentage of those who had a mobile phone of any kind remained relatively 
steady , at 96% (approximately 18. 6 million). The declining trend in fixed -line phone services also 
continued, d ecreasing  by 4.3% to 8.09 million units. In 2018, 41.7 milli on Internet subscri ptions  
were registered , up 4% from the previous year . According to the authorities, t he increase reflects 
continued growth in National Broadband Network -related services and mobile Internet services.  In 
addition, i mprovements to the 4G m obile network saw combined 3G and 4G coverage reaching 
99.4% of the population.  
4.121.   Telstra , Optus  and Vodafone  are the main carriers operat ing in the mobile phone network , 
and their respective market share s remained largely stable  in 2017/18 ( Telstra 53.6 %, Optus  
29.2%, and Vodafone  17.2%). According to the authorities, m obile carriers are rolling out advanced 
4G infrastructure in the 700 MHz and 850 MHz spectrum bands , and t he 5G mobile network is 
expected to be activated in 2019.  
4.122.   The main laws governing th e sector are the Telecommunications Act , 1997, the Competition 
and Consumer Act , 2010, and the Telecommunications (Consumer Protection and Service Standards) 
Act, 1999, the National Broadband Network Companies Act , 2011, and the Radiocommunications 
Act, 1992. In 2018,  the Government introduced a range of standards and record -keeping rules to 
enhance current consumer protections. The new complaints -handling rules were designed to improve 
the consumer  complaints procedures managed by Carriers and Carriage Ser vice Providers . The rules 
                                                
63 IMF, Australia Financial Sector Assessment Program: IMF Country Report 19/50 . 
64 ITU, ICT Development Index 2017 . Viewed at: https://www.itu.int/net4/ITU -D/idi/2017/index.html . 
65 Australian Communications and Media Authority . Viewed at:  https://www.acma.gov.au/ -
/media/Research -and-Analysis/Report/pdf/Communications -report -2017-18-pdf.pdf?la=en . 
66 Australian Communications and Media Authority. Viewed at: https://www.acma.gov.au/ -
/media/Research -and-Analysis/Report/pdf/Communications -report -2017-18-pdf.pdf?la=en . WT/TPR/S/ 396 • Australia  
 
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  are set out in the Telecommunications (Consumer Complaints Handling) Industry Standard , 2018 
and the Telecommunications (Consumer Complaints) Record -Keeping Rules , 2018.  
4.123.   The Australian Competition and Consumer Commission ( ACCC) ha s the primary 
responsibility to ensure that individuals and businesses comply with Australian competition, fair 
trading, and consumer protection laws . It also promotes fair trade in markets , to benefit consumers, 
businesses, and the community , and regulate s national infrastructure services.  In 2018, the 
ACCC  launched a public inquiry , examining whether the current r egulation of voice and Short 
Message Service (SMS) Mobile Terminating Access Service ( MTAS ) should be revoked, extended or 
varied , after it expire d in June 2019.  In 2019, the ACCC announced that it will extend its regulation 
of Australia 's MTAS for voice s ervices for another five years . However , it will not do the same for 
SMS services.67 
4.124.   In 2017, t he Government provided funding to the ACCC to implement the Measuring 
Broadband Australia Program. The four -year Program monitors and reports on the performance o f 
national broadband, to provide consumers with accurate and independent information about 
broadband speeds. The report s aim at increasing transparency and encourag ing greater 
performance -based competition and Internet performance.  According to the authorities, t he Program 
report ed on eight Retail Service Providers groups and contribut ed to competition and consumer 
outcomes in broadband markets.68 
4.125.   The Australian Communications and Media Authority (ACMA) is the independent statutory 
authority tasked with ensuring that media and communications legislation, related regulations, and 
numerous derived standards and codes of practice operate effectively and efficiently . The ACMA 's 
regulatory functions are set out in the Australian Communicat ions and Media Authority Act , 2005. 
The ACMA is responsible for the regulation of broadcasting, radiocommunications, 
telecommunications and some online content . 
4.126.   NBN Co is mandated by the Government to design, build and operate Australia 's wholesale 
broadba nd access network.  It is owned by the Commonwealth of Australia as a Government Business 
Enterprise, incorporated under the Corporations Act , 2001, and is operated in accordance with the 
Public Governance, Performance and Accountability Act , 2013. Since its establishment  in 2009 , the 
Government has presented NBN Co's  mandate through a Statement of Expectations (SoE) , which is 
supplemented from time to time by policy directives and correspondence. NBN Co' s current 
objectives are set out in the 2016 SoE.  According to the authorities, NBN Co  is replacing and 
upgrading the existing fixed -line phone and Internet network infrastructure.  
4.127.   During the review period , the Government made significant investments in the 
communications infrastructure. The Government commit ted AUD 49 billion total equity and debt 
funding towards  the NBN rollout. In August 201 9, 5.9 million homes and businesses were connected 
to a plan over the  NBN access network , compared with 4.3 million in August 2018 .69 
4.128.   The Government 's Mobile Black Spot Program aims at improv ing mobile coverage and 
competition across especially regional and remote areas of Australia . The Government 's commitment 
to the Program (AUD 380 million  in total) is supported by contributions from mobile carriers , state 
and local governments, businesses , and community organi zations , with a total investment of more 
than AUD 7.6 billion. The P rogram funds  the delivery of 1,047 base stations across the country and , 
as at October 2019, over 750 sites ha d been switched  on. In April 2018, the Priority Locations Round 
was announced by the Government , which identified 125 locations that would receive improved 
mobile coverage. According to the authorities, t otal funding of AUD 82.8 million was invested in this 
Round, includ ing AUD 45.6 million in Commonwealth funding and AUD 37.2 million in contributions 
from mobile carriers.  The first live base station from this Round was activated in June 2018. A fourth 
round of the program me was launched in June 2018, with AUD 25 million allocated toward improving 
                                                
67 Australian Competitio n and Consumer Commission , Regulation of wholesale mobile voice services 
should continue . Viewed at: https://www.accc.gov.au/media -release/r egulation -of-wholesale -mobile -voice-
services -should -continue . 
68 Australian Competition and Consumer Commission , Measuring Broadband Australia program . Viewed 
at: https://www.accc.gov.au/regulated -infrastructure/communications/monitoring -reporting/measuring -
broadband -australia -program . 
69 NBN, How we're tracking: October 2019 . Viewed at: https://www1.nbnco.com.au/corporate -
information/about -nbn-co/updates/dashboard -august -2019. WT/TPR/S/ 396 • Australia  
 
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  mobile coverage in regional and remote communities.  The Government is also developing a new 
Universal Service Guarantee (USG), which will ensure all Australians have access to voice  and 
broadband services.  Under the USG, the NBN will be the default network for the supply of broadband 
services nationally , and will also support the supply of voice services in NBN Co 's fixed -line and fixed 
wireless footprints. The Government proposed statutory infrastructure provider legislation to lock in 
this role for NBN Co, and for other providers who are the network providers in an area.  The USG 
incorporates the existing Universal Service Obligation for voice, to ensure that voice services 
continue to be available from Telstra where they cannot be supported by the NBN, particularly in 
NBN Co 's satellite footprint.   
4.129.   In March 2019, the Government committed to a AUD 220 million Stronger Regional Digital 
Connectivity Package, which includes AUD 160 million for additional rounds of the Mobile Black Spot 
Program; and AUD 60 million for the Regional Connectivity Program (including a AUD 53 million 
competitive grants programme to address local telecommunications priorities in regional areas; a 
Digital Te ch Hub to improve digital literacy; and measures to develop the USG).  
4.130.   The Government is also developing a new Regional Connectivity Program to complement its 
investments in the NBN and the Mobile Black Spot Program. The Regional Connectivity Program is 
being developed to enable a broad range of projects to address local telecommunications priorities 
to maximi ze economic opportunities and region -wide benefits for regional, rural and remote 
Australians. The Government is in the process of designing the Progra m, and expects to call for 
applications early in 2020. A Digital Technology Hub is also being developed as part of this package , 
to provide independent and factual information about the choices of digital technologies and 
applications.  
4.131.   In June 2018, 11 int ernational submarine cables were connecting Australia to the rest of the 
world , across three protection zones, two located off the Sydney coast and one off the Perth coast. 
In addition, there were three domestic submarine cables. New submarine cable infras tructure 
investments were confirmed, with the Government awarding a contract to build an international 
submarine cable between Sydney, Port Moresby in Papua New Guinea , and Honiara in the Solomon 
Islands. The project is expected to be completed in late 201 9. 
4.4.2.2   Television broadcasting and film production  
4.132.   According to the authorities, Australians spend most of  their viewing time watching 
broadcast television . However, this share continues to decrease , driven by younger Australians ' 
demand for online content, in cluding online subscriptions and user -generated content.  
4.133.   In 2017, t he Broadcasting Legislation Amendment (Broadcasting Reform) Act , 2017 repealed 
two media diversity and control rules in the Broadcasting Services Act , 1992. It repealed the 75 % 
audience rea ch rule, which prevented an entity from controlling television services that reach in 
excess of 75 % of the population . It also repealed the two out of three -control rule, which prevented 
an entity from controlling more than two of the three regulated forms of media (commercial radio, 
commercial television and associated newspapers) within a commercial radio licence area.  
4.134.   The Classification  (Publications, Films and Computer Games) Act , 1995 is jurisdiction -
neutral . The same fee to obtain a classification applies , regardless of the country of origin of a film, 
computer game or publication. The Act was amended in 2014 to allow for the use of s elf-classification 
tools, which enable faster and lower cost classifications rather than having to submit content to the 
Australian Classification Board. The two classification tools approved to date for use in Australia, the 
International Age Rating Coali tion (IARC) Tool (in 2015) for online and mobile computer games and 
the Netflix Tool (in 2016) for online films and series streamlined by Netflix in Australia, allow for 
classified content to be made available in a timely and efficient manner. During the 2 018/19 financial 
year, the IARC Tool made over 317,000 decisions , and the Netflix Tool made over 1,900 decisions.  
4.135.   According to the authorities, i n 2018, new restrictions related to gambling advertising during 
broadcasts of live sporting events came into ef fect. The ACMA negotiated with broadcast industry 
bodies to develop the new restrictions, which were included in updated broadcasting industry Codes 
of Practice. It also worked with the online streaming sector to prepare parallel rules for live streamed 
sporting events.  WT/TPR/S/ 396 • Australia  
 
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  4.136.   Under the Commercial Broadcasting Tax Act , 2017, broadcasters pay a price for the 
spectrum they use to deliver broadcasting services. According to the authorities, t his amounts to 
approximately AUD 43 million per annum. Broadcasting licences  are issued by the ACMA to authorize 
the transmission of television and radio programmes to the public. As at June 2018, the number of 
active licences in Australia were 343 commercial broadcasting (radio and television) licences; 2,835 
subscription televis ion licences; and 464 community radio and television licences.  
4.137.   The regulatory regime governing the screen industry includes Australian content quotas, and 
sub-quotas for children 's content, documentaries and Australian drama. These quotas apply to free -
to-air broadcasters and pay television , and ensure a minimum amount of Australian screen content 
is produced and broadcast ed. 
4.138.   According to the Department of Communications and the Arts, the Government provided 
over AUD 313 million to the screen industry in 20 16/17 through tax offsets. Direct government 
funding to the screen industry is administered by Screen Australi a. It also supports the sector in 
business development, story and talent development, administration of co -productions, and 
distribution and marke ting support.  According to Screen Producers Australia, government funding 
and tax incentives cover 58% of feature film production funding; 21% of commercial television 
production funding; and 25% of online and subscription video on demand production fundin g.70 
4.139.   There are three different tax incentives to produce films and television programmes in 
Australia. They include the producer offset, the location offset, and the post, digital and visual effects 
(PDV) offset. These tax offsets are uncapped in most circu mstances, but only one type of offset can 
be claimed for any given production. The producer offset provides a refundable tax offset of 40 % of 
qualifying Australian production expenditure (QAPE) on feature films with a first release in a cinema, 
and 20 % of QAPE on all other non -feature productions , such as television program mes. For all three 
offsets, only production companies that are permanently resident in Australia or with a permanent 
establishment there  are eligible to apply. In addition, only eligible QAPE can be claimed under each 
offset.  In addition, the producer offset can only be claimed for eligible QAPE.  The location offset 
provides a rebate to produce large -scale film and television productions in Australia, generally by 
foreign production compan ies. The current rate of the location offset is 16.5%. The QAPE level must 
be at least AUD 15 million to access the location offset. The PDV offset provides a 30% rebate on 
PDV work done in Australia, regardless of where the production was shot. The QAPE t hreshold for 
accessing the PDV offset is AUD 500,000. Eligible formats for the PDV offset are the same as those 
for the location offset.  
4.4.3   Transport  
4.140.   Transport, postal, and warehousing services accounted for 4.6% of GDP and 5.1% of total 
employment in 2017/18  (Table 1.1 ). Australia has 877,651.1 km of roads (2018) and 33,221 route 
km of open railway (2018), in addition to aviation and port infrastructure.71 
4.141.   The Department of Infrastructure, Transport, Cities and Regional Development provides 
strategic policy advice to assist the Government to shape the framework underpinning road, rail, 
maritime and aviation transport. Other government agencies involved in th e sector include the 
Australian Competition and Consumer Commission ( ACCC); Airservices Australia; the Australian 
Maritime Safety Authority; the Australian Transport Safety Bureau; the Civil Aviation Safety 
Authority; the National Transport Commission; Inf rastructure Australia; the Australian Rail Track 
Corporation; and the International Air Services Commission.  
4.142.   The ACCC monitors the performance of the four largest airports and the container 
stevedoring industry; assesses notifications of proposed price inc reases at Sydney airport (in relation 
                                                
70 Standing Committee on Communications and the Arts. Report on the inquiry into the Australi an film 
and television industry, December 2017 . Viewed at: 
https://www.aph.gov.au/~/media/02%20Parliamentary%20Business/24%20Committees/243%20Reps%20Co
mmittees/Communications%20and%20the%20Arts/45p/Australian%20Film%20and%20TV/Final%20Report.pd
f?la=en . 
71 Department of Infrastructure, Transport, Cities and Regional Development, Australian Infrastructure 
Statistics – Yearbook 2018 . Viewed at: https://www.bitre.gov.au/publications/2018/yearbook_2018.aspx . WT/TPR/S/ 396 • Australia  
 
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  to air services) and from Airservices Australia72; investigates complaints relating to international 
liner cargo shipping conference arrangements; reviews access undertakings put forward by owners 
and operators of infra structure facilities; and regulates rail services.  
4.143.   The National Transport Technology Action Plan (2016 -19) outlines national priorities for 
implementing new transport technologies. The measures were developed through discussions 
between the Government and industry. The Plan is a three -year programme, and focuses on issues 
that can be addressed in the short term.73 
4.144.   The National Road Safety Action Plan (2018 –20) is intended to support the implementation 
of the National Road Safety Strategy (NRSS) (2011 –20). It  details priority national actions to be 
taken by governments over the final three years of the NRSS, from 2018 to 2020. The Plan was 
developed by Commonwealth, state and territory transport agencies, and supports the broader 
ten-year agenda of the NRSS by  ensuring that national efforts in the final three years of the NRSS 
are focused on strategically important initiatives.74 
4.145.   The Building Better Regions Fund (2016) (AUD 641 million) supports the Government's 
commitment to create jobs, drive economic growth, and build stronger regional communities.75 The 
Fund invests in projects located in eligible areas outside the major cities of Sydney, Melbourne, 
Brisbane, Perth, Adelaide, and Canberra. Grant funding is available through two funding streams, 
the Infrastruct ure Projects Stream (supports projects that involve construction of new infrastructure, 
or the upgrade or extension of existing infrastructure); and the Community Investments Stream 
(funds community development activities including, but not limited to, new  or expanded local events, 
strategic regional plans, and leadership and capability -building activities).  
4.146.   The Government is investing AUD 100 billion over ten years from 2019/20 in transport 
infrastructure, through its infrastructure plan, of which a substa ntial component is under the 
Infrastructure Investment Program.  The Government also invested AUD 2.9 billion over ten years in 
the Western Sydney Infrastructure Plan. According to the authorities, the plan involves road and 
transport linkages that will cap italize on the economic gains from developing an airport at Badgerys 
Creek.76 In 2019, the Government developed a National Freight and Supply Chain. The strategy was 
developed with extensive input from industry, and focuses on smarter and targeted infrastru cture; 
supply chain efficiency; better planning, coordination and regulation; and efficient freight location 
and performance data.  
4.147.   The Government requested the Productivity Commission to assess the economic impact of 
reforms to transport regulation, agreed  to by the Council of Australian Governments in 2008/09. 
These reforms relate to heavy vehicle safety and productivity, rail safety, and maritime safety. The 
Government also asked the Commission to recommend further reforms towards a more integrated 
                                                
72 Airservices Australia provides air traffic control and aviation fire -fighting and rescue services to 
airports and airlines.  
73 Action items include : (i) d evelop national operational guidelines to support the on -road use of 
automated vehicles; (ii) establis h a regulatory framework for testing automated vehicles; (iii) u ndertake 
priority trials and research of Intelligent Transport Systems; (iv) d evelop a connected vehicle (Cooperative ITS) 
infrastructure road map; (v) publish a connected vehicle (Cooperative  ITS) statement of intent on standards 
and deployment models; (vi) d evelop a nationally agreed deployment plan for the security management of 
connected and automated vehicles; (vii) i nvestigate options to provide enhanced geo -positioning information to 
the land transport sector; (viii) i mprove the availability of open data in the transport sector; (ix) e xplore 
options to increase the uptake of telematics and other technologies for regulatory and revenue collection 
purposes; (x) evaluate low –cost technologie s to improve safety at rail level crossings; (xi) e xplore how data 
from telematics and other intelligent transport systems can be used to optimi ze operations and planning for 
port precincts and intermodal terminals; (xii) investigate options for interopera ble public transport ticketing; 
(xiii) i nvestigate the costs, benefits, and possible deployment models for Automatic Crash Notification; and 
(xiv) e xplore the merits of adopting new safety and traffic management technologies . 
74 National Road Safety  Strateg y, National Road Safety Action Plan 2018 -2020. Viewed at: 
https://www.roadsafety.gov.au/action -plan/2018 -2020/ . 
75 The Department of Infrastructure, Transport, Cities and Regional Developm ent, National Stronger 
Regions Fund . Viewed at:  https://www.regional.gov.au/regional/programs/national -stronger -regions -
fund.aspx . 
76 The Department of Infrastructure, Transport, Cities and Regional Development , Western Sydney 
Infrastructure Plan . Viewed at: https://www.infrastructure.gov.au/infrastructure/western_sydney/ . WT/TPR/S/ 396 • Australia  
 
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  nation al market for transport services.  The Commission will seek further information and feedback, 
following the expected release of a draft report in November 2019.  
4.4.3.1   Maritime transport  
4.148.   In 2015/16 (latest figures available), almost 1.6 billion tonnes of cargo mov ed across 
Australian ports.77 International exports represented 87.3%, and imports represented 6.2% of this 
cargo. The value of exports by sea was AUD 218.9 billion in 2015/16. In 2015/16, there were 116 
vessels in the trading fleet, with a total deadweight  tonnage of 5.1 million tonnes and total gross 
tonnage of 3.7 million.  Australia is currently capable of accommodating container ships up to a 
maximum of approximately 8,000 TEU to 10,000 TEU.78 The five largest container ports in Australia 
are Melbourne, S ydney, Brisbane, Fremantle and Adelaide.  
4.149.   The framework for maritime safety is established under the Navigation Act, 2012 and the 
Marine Safety Domestic Commercial Vessel National Law Act, 2012. The Government regulates the 
security of maritime transport th rough the Maritime Transport and Offshore Facilities Security Act, 
2003 and the Maritime Transport and Offshore Facilities Security Regulations, 2003. In 2017, the 
Government introduced the Coastal Trading (Revitalising Australian Shipping) Amendment Bill,  
2017. According to the authorities, the Bill aims at creating a simpler and more flexible coastal 
shipping industry that carries an increased share of freight.  
4.150.   The private sector is a major player in port operations and investment, with the regulatory 
framework set by the Government. According to the authorities, the Department of Infrastructure, 
Transport, Cities and Regional Development supports an efficient, safe and environmentally friendly 
maritime transport system, including an effective regulatory f ramework for shipping, and 
environmental and safety regulations. The Department's Maritime and Shipping Branch consults with 
industry on a range of policy measures, including amendments to liability and insurance standards 
for the maritime industry, and ta x incentive operations for certain Australian operations. The Branch 
is also responsible for the regulation of coastal trading. It oversees a range of legislation, giving 
effect to Australia's maritime safety and marine environmental protection obligations  under various 
international treaties and conventions. In addition, it oversees the development of Australian policy 
positions in the International Maritime Organization. In 2018, the Government announced that the 
Australian Maritime Safety Authority will be the sole service provider under the National System for 
Domestic Commercial Vessel Safety.79 States and the Northern Territory accordingly ceased 
delivering services and charges.  
4.151.   Charges incurred at Australian ports (except private ports) are determined by the port's 
authorities and independent port service providers. The ACCC is required by the Government to 
monitor prices, costs and profits of container stevedores at the international container ports in 
Adelaide, Brisbane, Burnie, Fremantle, Melbourne and Sydney. The level of charges on imported and 
exported goods may vary depending on the services required, such as screening and testing.  
4.152.   During the review period, the Government continued to provide funds to the national system 
delivering safe ty benefits for commercial boating, fishing and tourism operations across Australia. 
In addition, in response to the concerns of the domestic commercial vessel industries regarding the 
cumulative impact of costs and charges on these industries, the Governm ent provided AUD 10 million 
in funding for the national system, increasing its total contribution to AUD 65 million over ten years, 
and increasing total funding by all governments to AUD 112.4 million.80 
4.153.   A range of tax incentives may be available in respect of operations associated with the 
shipping industry. The incentives are designed to encourage investment in the industry, and to 
encourage the development of sustainable employment and skills opportunit ies for Australian 
                                                
77 Bureau of Infrastructure, Transport and Regional Economics , Statistical Report, Australian sea freight 
2015-16. Viewed at: https://www.bitre.gov.au/publications/2018/files/asf _2015_16.pdf . 
78 Container volumes are typically measured in 20-foot equivalent units (TEU). It is based on the length 
of a standard sized container.  
79 The Department of Infrastructure, Transport, Cities and Regional Development , Policy statement by 
the Dep uty Prime Minister on arrangements from 1 July 2018 for the National System for Domestic Commercial 
Vessel Safety . Viewed at: https://www.infrastructure.gov.au/maritime/safety/ns dcvs.aspx . 
80 The Department of Infrastructure, Transport, Cities and Regional Development , Policy statement by 
the Deputy Prime Minister on arrangements from 1 July 2018 for the National System for Domestic Commercial 
Vessel Safety . Viewed at:  https://www.infrastructure.gov.au/maritime/safety/nsdcvs.aspx . WT/TPR/S/ 396 • Australia  
 
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  seafarers. The incentives include the Shipping Exempt Income Tax incentive for Australian operators 
of Australian -registered eligible vessels on qualifying shipping income; accelerated depreciation and 
roll-over relief for Australian cor porate owners of Australian -registered eligible vessels; the Seafarer 
Tax Offset for Australian corporate employers who employ eligible Australian seafarers on overseas 
voyages performed by Australian -registered eligible vessels; and the exemption from the  royalty 
withholding tax for foreign owners of eligible vessels leased under a bareboat or demise charter to 
an Australian resident company.  
4.4.3.2   Air transport  
4.154.   As at 2019, Australia has 349 airports with paved runways, 14 of which serve international 
flights. D uring 2018/19, there were 42.1 million international passenger movements and 
121.0  million passengers on domestic flights. Sydney airport was the busiest in the country, with 
44.4 million passengers in 2017/18.81 A total of 63  airlines offered international  services to and from 
Australia in 2018/19. Flag carrier Qantas and its low -cost arm Jetstar together carried 26% of 
scheduled international passengers. Singapore Airlines had the next largest share, with 8.2%, 
followed by Emirates, with 7.3%, and Air New Zealand, with 6.8%.  
4.155.   Over 80% of airfreight is carried in the cargo hold of passenger aircraft, and the remainder 
is carried by dedicated freighters. According to the authorities, a record high for airfreight trade was 
recorded in 2017/18, when 1.15 million  tonnes of international freight (valued at AUD 109 billion) 
passed through Australia. Sydney airport handled more than 45% of all freight imports and exports 
in 2017/18, in both volume and value terms. Melbourne Airport accounted for 28% of the total 
freight volume (17% of the total value).82 
4.156.   The Aviation Policy Group agencies comprise the Department of Infrastructure, Transport, 
Cities and Regional Development, the Department of Defence (represented by the Royal Australian 
Air Force), the Civil Aviation Sa fety Authority (CASA), and Airservices Australia (Airservices). The 
agencies have complementary but different roles in policy development, regulation and service 
delivery in the airspace and air traffic management system.  
4.157.   The Department of Infrastructure, Transport, Cities and Regional Development manages the 
policy and regulatory framework for Australian airports and the aviation industry. It also manages 
the administration of the Government's interests in privatized airports under the Airports Act, 1996, 
and provides policy advice on the efficient management of airspace, and on aircraft noise and 
emissions. The Aviation and Airports Division of the Department of Infrastructure, Transport, Cities 
and Regional Development manages the relationship between the  Government and the CASA, 
Airservices) and Australia's airlines. It also manages Australia's participation in the work of the 
International Civil Aviation Organisation, and provides the secretariat for the International Air 
Services Commission.  
4.158.   In 2018, th e Airports Amendment Act, 2018 was introduced to streamline certain 
administrative arrangements relating to master plans and major development plans to offer a more 
flexible, proportionate, efficiency -based regulatory approach.  
4.159.   The Australian Airspace Poli cy Statement (AAPS) provides guidance to the CASA, as the 
airspace regulator, on the administration of airspace. The functions and exercise of powers of the 
CASA in relation to the administration and regulation of airspace are set out in the Airspace Act, 
2007 and the Airspace Regulations, 2007. The current AAPS came into effect in 2018, and several 
changes were made to the previous AAPS, including an additional principle requiring the 
consideration of cost implications for all airspace users, and an additi onal clause concerning the 
operation of remotely piloted aircraft systems and very high -altitude aircraft.  
4.160.   In 2015, following a recommendation by the Productivity Commission, the Department of 
Infrastructure, Transport, Cities and Regional Development comm issioned an independent review of 
federally leased airports' consultative arrangements. According to the authorities, the review found 
                                                
81 Department of Infrastructure, Regional Development and Cities , Key Australian infrastructure 
statistics 2018 . Viewed at: https://www.bitre.gov.au/publications/2018/files/infrastructure -statistics -yearbook -
2018-booklet.pdf . 
82 Infrastructure Partner ships Australia  2019 International Airfreight Indicator . Viewed at: 
https://infrastructure.org.au/wp -content/uploads/2019/03/2019 -International -Airfreight -Indicator -digital.pdf . WT/TPR/S/ 396 • Australia  
 
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  that the Community Aviation Consultation Groups and the Planning Coordination Forums are 
generally well -supported by thei r participants, and the groups are considered effective in meeting 
their stated aims. However, the review also recognized that one size does not fit all, in relation to 
airport consultative arrangements, and the final report made recommendations that encou raged 
flexibility in airports' approaches to community consultation. In 2016, the Department broadened 
its expectations relating to federally leased airports' consultative arrangements. According to the 
authorities, airports are now expected to tailor thei r consultation activities to suit the specific needs 
of their stakeholders.  
4.161.   As an International Civil Aviation Organization contracting State, Australia has an aviation 
State Safety Program, which demonstrates its aviation safety management systems approac h to risk 
management. This policy statement confirms that government aviation agencies will adopt a 
common approach to risk management in relation to the assessment of airspace and air traffic 
management. The Government established the Commonwealth Risk Ma nagement Policy and the 
Public Governance, Performance and Accountability Act, 2013. This resulted in the establishment of 
a consistent approach to risk management, based on the best practice approach outlined in the 
Australian and New Zealand Risk Managem ent Standards.  
4.162.   The Government provides targeted support and funding for the air transport industry, such 
as the Regional Aviation Access Programme (RAAP). The Programme provides funding to the 
aerodrome infrastructure, and air services to remote areas wher e they are not commercially viable. 
In addition, the Remote Airstrip Upgrade Program, part of the Government's RAAP, provides funding 
for upgrades to remote airstrips in isolated communities. Furthermore, the Remote Air Services 
Subsidy Scheme, also part o f the RAAP, subsidizes a regular weekly air transport service for the 
carriage of passengers and goods, such as educational materials, medicines, fresh foods and other 
urgent supplies, to communities in remote and isolated areas of Australia.  
4.163.   The Airservic es Australia Enroute Charges Payment Scheme supports air operators providing 
commercial passenger and aeromedical services to regional and remote locations. The scheme 
provides assistance based on the reimbursement of enroute air navigation charges levied by 
Airservices. Other government -funded upgrade projects include AUD  10.1 million in 2019 for 34 
access and safety projects, compared with AUD 7.0 million in 2018 for 31 projects and 
AUD 11.8 million for 91 projects in 2017.  
4.164.   The Government owns 21 airports , operated by private sector entities under leases with the 
Government. The remaining airports are owned by local and state governments. Airports can also 
be privately owned. The Department of Infrastructure, Transport, Cities and Regional Development 
regulates issues of ownership and control at the leased federal airports, through restrictions provided 
under the Airports Act, 1996 and the associated regulations.  There are restrictions on ownership at 
leased federal airports. Under the Airports Act, 1996, t he limit on foreign ownership of airport -
operator companies is 49%. In addition, the limit on airline ownership of airport -operator companies 
is 5%. Furthermore, a 15% limit exists on cross -ownership between paired airport -operator 
companies (Sydney and Pe rth, Sydney and Brisbane, and Sydney and Melbourne).  
4.165.   All international flights operate under bilateral air services agreements, which are negotiated 
by the Department of Infrastructure, Transport, Cities and Regional Development Air Services 
Negotiations T eam. Australia currently has air services agreements/arrangements with more than 
100 countries.83 During the review period, 22 agreements were either signed or under negotiation.84 
                                                
83 Department of Infrastructure, Transport, Cities and Regional Development , Australia's Air Services 
Agreements/Arrangements . Viewed at: https://www.infrastructure.gov.au/aviation/international/agreements. 
aspx. 
84 Agreements under negotiation during the review period include those with Azerbaijan, Bahamas, 
Colombia, Cyprus, Denmark, Ethiopia, Guyana, Kazakhstan, Kiribati , Morocco, Namibia, Norway, Peru, Qatar, 
Rwanda, Saudi Arabia, Seychelles, Sweden, and Timor -Leste. Agreements were signed with Hungary, Israel, 
and Mauritius.  WT/TPR/S/ 396 • Australia  
 
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  4.4.4   Tourism  
4.166.   Tourism 's contribution  to GDP and employment in 2017/18 was 3.1% and 4.9% , 
respectively .85 There was a gradual increase in the number of Australian businesses in tourism -
related industries (288,614 in 201 6/17). The sector g enerat ed AUD 31.4 billion  spent in Australia  in 
2017/18.86 Growth was driven mainly by domestic visitors , due to the lower Australian dollar. In 
addition, the lower exchange rate also made Australian tourism attractive among international 
visitors. In 2018/19, Australia received 9.3 million  international visitors (a 3% increase from the 
previous year ), spending a total of AUD  30.8 billion.87  
4.167.   According to the authorities, i n 2018 /19, 44 cents from every  tourism dollar  spent in 
Australia went to  regional areas, representing an injection of AUD 58 billion into regional 
communities. Around one  third of to urism -related businesses and more than half of the tourism 
workforce is in regional Australia. In addition, t ourism accounts for nearly 8% of employment  in 
regional Australia . 
4.168.   Tourism Australia is the government agency responsible for attracting internatio nal visitors 
to Australia, both for leisure and business events.  The organi zation is active in 15 key markets , and 
activities include advertising, public relations  and media program mes, trade shows and industry 
program mes, consumer promotions, online commu nications , and consumer research.  The Australian 
Trade and Investment Commission (Austrade) is the government agency with responsibility for 
tourism policy. Austrade 's mission is to promote Australian exports and international education, 
strengthen the tourism sector, and attract investment into Australia.  
4.169.   Tourism 2020 is a national strategy partnership between the G overnment and industry . The 
strategy aims at doubling overnight expenditures  to between AUD 115 billion and AUD 140 billion 
by 2020 . It is supported by several supply -side targets to enable the industry to achieve this goal. 
Progress towards the  Tourism 2020 targets is tracked  regularly by the Government and, in 2017/18, 
overnight expenditure  was AUD 110 billion.   
4.170.   In 2018, the Government esta blished the  industry -led Beyond Tourism 2020 Steering 
Committee , to shape the next long -term tourism strategy  which will  commence in January 2021.  
The Committee submitted its  report to the Government  in December  2018, calling for a strategy to 
increase visitor numbers, trip length and expenditure for all visitors, encourage regional dispersal , 
and empower the tourism industry to thrive in the digital world. This report forms the basis for work 
on the Tourism 2030 strategy, which is led by Austrade , Tourism Australia and state and territory 
governments. Tourism ministers were to  consider the direction of the Tourism 2030 strategy at their 
meeting in October 2019 .  
4.171.   According to the authorities, the Department of Home Affairs is investing in new technologies 
to moderni ze the visa system. This includes a global processing platform , which will contribute to 
faster and more consistent visa outcomes, simplification of existing  visa arrangements , and more 
efficient detection of individuals posing a security, law enforcement or immigration risk, while also 
speeding up the flow of legitima te travellers.  
4.172.   The Tourism Major Project Facilitation (TMPF) service was  specifically  developed for tourism 
investments. The TMPF service  within Austrade  provides investors with a central contact person in 
the Government to help guide them through both Aus tralian and state or territory government 
approval  processes. The TMPF service work s in cooperation with Australian, state and territory 
government agencies to pro cess approvals in a streamlined and efficient manner.  Similarly, the 
Regional Tourism Infrast ructure Investment Attraction Strategy is a five -year ( 2016-21) plan 
between Austrade and Tourism Australia to work with state, territory and local governments to 
create an environment conducive to attracting FDI into the regional tourism infrastructure.88  
 
                                                
85 Austrade, Economic Research and Industry Reports . Viewed at: https://www.tra.gov.au/Economic -
analysis/tourism -industry . 
86 Combined value of total international visitor and total domestic visitor expenditures . 
87 Expenditures of international visitors in Australia include inter national pre -paid airfares and packages . 
88 For the purpose of this strategy, a region is any area outside Australia 's main cities and the Gold 
Coast.  WT/TPR/S/ 396 • Australia  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS sections and main chapters, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total exports  256,653  253,714  240,086  187,963  192,280  231,029  257,748    
(% of total exports)  
1 - Live animals; animal products  4.6 5.0 6.4 7.6 6.5 5.8 5.7  
02. Meat and edible meat offal  2.9 3.3 4.3 5.2 4.2 3.9 3.9  
04. Dairy produce; birds' eggs; 
natural honey; edible products 
of animal origin  0.9 0.9 1.0 1.0 0.9 0.8 0.7 
 
01. Live animals  0.4 0.4 0.6 0.8 0.7 0.5 0.5 
2 - Vegetable products  5.5 5.5 5.1 6.2 5.3 5.6 3.8  
10. Cereals  3.4 3.2 3.1 3.4 2.6 2.8 1.9  
12. Oil seeds and oleaginous 
fruits; miscellaneous grains, 
seeds and fruit 1.1 1.2 0.9 1.0 0.8 0.9 0.6 
 
08. Edible fruit and nuts; peel of 
citrus fruit or melons  0.3 0.4 0.4 0.7 0.7 0.6 0.6 
3 - Animal or vegetable fats and 
oils; prepared edible fats  0.2 0.3 0.3 0.3 0.3 0.3 0.2 
4 - Prepared foodstuffs; beverages, 
spirits and vinegar; tobacco  2.3 2.3 2.3 3.0 3.5 3.3 2.8 
 
22. Beverages, spirits and vinegar  0.8 0.8 0.8 1.0 1.0 1.0 1.0  
21. Miscellaneous edible 
preparations  0.2 0.2 0.3 0.5 0.6 0.7 0.5 
 
17. Sugars and sugar 
confectionery  0.6 0.6 0.6 0.7 0.9 0.8 0.5 
5 - Mineral products  55.6 57.2 56.3 49.9 51.4 55.2 58.2  
27. Mineral fuels, mineral oils and 
products of their distillation  28.4 25.8 26.5 24.9 26.2 30.2 35.5 
 
26. Ores, slag and ash  27.0 31.3 29.6 24.7 24.9 24.5 22.1 
6 - Products of the chemical or allied 
industries  5.1 4.7 4.5 5.1 5.0 4.9 5.6 
 
28. Inorganic chemicals; organic 
or inorganic compounds of 
precious metals  2.3 2.4 2.4 2.9 2.4 2.7 3.2 
 
30. Pharmaceutical products.  1.7 1.3 1.1 0.9 1.2 1.1 1.2  
33. Essential oils and resinoids; 
perfumery, cosmetic or toilet 
preparations  0.2 0.2 0.2 0.3 0.3 0.3 0.3 
7 - Plastics and articles thereof; 
rubber and articles thereof  0.5 0.4 0.5 0.5 0.5 0.5 0.4 
8 - Raw hides and skins, leather, 
furskins and articles thereof; 
travel goods, handbags; articles 
of animal gut  0.4 0.5 0.5 0.5 0.4 0.4 0.3 
9 - Wood and articles of wood; wood 
charcoal; cork and articles of 
cork 0.4 0.4 0.5 0.7 0.7 0.7 0.7 
10 - Pulp of wood or of other fibrous 
cellulosic material; paper and 
paperboard and articles thereof  0.5 0.5 0.5 0.6 0.6 0.5 0.5 
11 - Textiles and textile articles  2.3 2.2 1.8 1.8 2.0 2.1 2.0  
51. Wool, fine or coarse animal 
hair and woven fabric  1.0 1.0 0.9 1.2 1.2 1.2 1.1 
 
52. Cotton  1.1 1.0 0.8 0.4 0.6 0.7 0.7 
12 - Footwear, headgear, umbrellas; 
prepared feathers and articles; 
artificial flowers  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
13 - Articles of stone, plaster, 
cement, etc.; ceramic 
products; glass and glassware  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
14 - Natural or cultured pearls, 
precious or semi -precious 
stones, precious metals  7.1 6.3 5.9 6.7 8.2 6.6 6.2 
15 - Base metals and articles of 
base metal  5.4 5.1 5.4 5.3 4.6 4.4 4.7 
 
76. Aluminium and articles 
thereof  1.7 1.6 1.7 1.8 1.5 1.3 1.5 
 
74. Copper and articles thereof  1.5 1.5 1.6 1.5 1.3 1.1 1.1 WT/TPR/S/ 396 • Australia  
 
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  Description  2012  2013  2014  2015  2016  2017  2018  
16 - Machinery and mechanical 
appliances; electrical 
equipment; television image 
and sound recorders  3.5 3.4 3.5 4.1 3.9 3.3 3.1 
 
84. Nuclear reactors, boilers, 
machinery and mechanical 
appliances  2.4 2.3 2.4 2.7 2.5 2.0 1.9 
 
85. Electrical machinery and 
equipment; sound recorders 
and reproducers  1.1 1.1 1.1 1.4 1.4 1.3 1.2 
17 - Vehicles, aircraft, vessels and 
associated transport equipment  1.9 1.9 2.0 2.3 2.1 1.6 1.4 
 
88. Aircraft, spacecraft, and parts 
thereof  0.5 0.5 0.6 0.7 0.8 0.6 0.6 
18 - Optical, photographic, 
precision, medical or surgical 
instruments; clocks and 
watche s; musical instruments  1.1 1.1 1.2 1.5 1.5 1.4 1.3 
 
90. Optical, photographic, 
cinematographic, measuring, 
precision, medical or surgical 
instruments and apparatus  1.1 1.1 1.2 1.5 1.5 1.3 1.2 
19 - Arms an d ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured 
articles  0.2 0.2 0.2 0.3 0.3 0.2 0.2 
21 - Works of art, collectors' pieces 
and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Othersa 3.2 2.9 2.7 3.1 3.0 3.0 2.8 
a Includes the trade value of products included in the Confidential Commodity List.  
Note:  US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).  
Source:  WTO Secretariat calculations, based on data from the Department of Foreign Affairs and Trade, 
Trade statistical pivot tables.  
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  Table A1. 2 Merchandise imports by HS sections and main HS  chapters, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total  250,554  233,450  228,229  201,125  189,229  221,049  227,617    
(% of total imports)  
1 - Live animals; animal products  0.9 1.0 1.1 1.1 1.2 1.2 1.2  
04. Dairy produce; birds' 
eggs; natural honey; 
edible products of animal 
origin  0.3 0.3 0.3 0.4 0.4 0.5 0.5 
 
03. Fish and crustaceans, 
molluscs and other 
aquatic invertebrates  0.3 0.4 0.4 0.4 0.4 0.4 0.4 
 
02. Meat and edible meat offal  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
2 - Vegetable products  0.9 1.0 1.1 1.2 1.2 1.1 1.1  
08. Edible fruit and nuts; peel 
of citrus fruit or melons  0.3 0.3 0.4 0.4 0.4 0.4 0.3 
 
09. Coffee, tea, maté and 
spices  0.2 0.3 0.3 0.3 0.3 0.3 0.3 
3 - Animal or vegetable fats and 
oils; prepared edible fats  0.2 0.2 0.3 0.3 0.3 0.3 0.3 
4 - Prepared foodstuffs; 
beverages, spirits and 
vinegar; tobacco  3.2 3.7 3.9 4.2 4.6 4.0 4.2 
 
21. Miscellaneous edible 
preparations  0.7 0.8 0.8 0.9 1.0 0.7 0.8 
 
22. Beverages, spirits and 
vinegar  0.7 0.8 0.8 0.9 0.9 0.8 0.8 
 
19. Preparations of cereals, 
flour, starch or milk  0.3 0.4 0.5 0.5 0.6 0.6 0.6 
5 - Mineral products  17.3 17.8 16.2 11.3 9.8 10.9 14.0  
27. Mineral fuels, mineral oils 
and products of their 
distillation  16.9 17.5 15.7 10.8 9.3 10.3 13.4 
6 - Products of the chemical or 
allied industries  8.8 8.6 8.5 8.7 9.4 8.3 8.3 
 
30. Pharmaceutical products  4.1 4.0 3.7 3.6 4.1 3.6 3.6  
29. Organic chemicals  1.2 1.0 1.0 1.1 1.2 1.0 1.0  
33. Essential oils and 
resinoids; perfumery, 
cosmetic or toilet 
preparations  0.6 0.7 0.7 0.8 0.9 0.8 0.9 
7 - Plastics and articles thereof; 
rubber and articles thereof  3.9 4.0 4.0 4.1 4.3 4.0 4.2 
 
39. Plastics and articles 
thereof  2.1 2.4 2.5 2.7 2.8 2.6 2.8 
 
40. Rubber and articles 
thereof  1.8 1.6 1.5 1.4 1.4 1.4 1.4 
8 - Raw hides and skins, leather, 
furskins and articles thereof; 
travel goods, handbags; 
articles of animal gut  0.5 0.6 0.6 0.7 0.7 0.6 0.7 
 
42. Articles of leather; travel 
goods, handbags; articles 
of animal gut  0.4 0.5 0.5 0.6 0.6 0.6 0.7 
9 - Wood and articles of wood; 
wood charcoal; cork and 
articles of cork  0.6 0.6 0.7 0.8 0.8 0.8 0.9 
10 - Pulp of wood or of other 
fibrous cellulosic material; 
paper and paperboard and 
articles thereof  1.5 1.5 1.5 1.6 1.6 1.4 1.4 
 
48. Paper and paperboard; 
articles of paper pulp, of 
paper or of paperboard  1.0 1.0 1.1 1.1 1.1 0.9 1.0 
11 - Textiles and textile articles  3.3 3.6 3.9 4.4 4.6 4.1 4.2  
62. Articles of apparel and 
clothing accessories, not 
knitted or crocheted  1.2 1.3 1.3 1.5 1.6 1.4 1.5 
 
61. Articles of apparel and 
clothing accessories, 
knitted or crocheted  1.1 1.2 1.3 1.5 1.6 1.4 1.4 WT/TPR/S/ 396 • Australia  
 
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  Description  2012  2013  2014  2015  2016  2017  2018   
63. Other made up textile 
articles  0.5 0.5 0.6 0.6 0.7 0.6 0.6 
12 - Footwear, headgear, 
umbrellas; prepared 
feathers and articles; 
artificial flowers  0.7 0.8 0.8 1.0 1.0 0.9 0.9 
 
64. Footwear, gaiters and the 
like; parts of such articles  0.6 0.7 0.7 0.8 0.9 0.8 0.8 
13 - Articles of stone, plaster, 
cement, etc.; ceramic 
products; glass and 
glassware  0.8 0.9 1.0 1.1 1.2 1.1 1.1 
14 - Natural or cultured pearls, 
precious or semi -precious 
stones, precious metals  3.3 3.0 2.6 2.7 4.0 3.0 2.9 
15 - Base metals and articles of 
base metal  5.5 5.6 5.8 6.4 5.0 4.6 5.2 
 
73. Articles of iron or steel  2.6 2.9 2.9 3.4 2.2 1.9 2.2  
76. Aluminium and articles 
thereof  0.5 0.6 0.6 0.7 0.8 0.8 0.9 
16 - Machinery and mechanical 
appliances; electrical 
equipment; television image 
and sound recorders  25.2 24.6 24.8 26.2 25.1 23.4 25.3 
 
84. Nuclear reactors, boilers, 
machinery and 
mechanical appliances  15.4 14.8 15.1 15.9 14.4 13.0 14.0 
 
85. Electrical machinery and 
equipment; sound 
recorders and reproducers  9.8 9.7 9.8 10.3 10.7 10.3 11.3 
17 - Vehicles, aircraft, vessels 
and associated transport 
equipment  14.4 13.6 12.8 13.6 15.6 21.1 14.7 
 
87. Vehicles other than 
railway or tramway 
rolling -stock, parts and 
accessories  12.8 12.5 11.5 12.4 13.8 13.3 13.2 
18 - Optical, photographic, 
precision, medical or 
surgical instruments; clocks 
and watche s; musical 
instruments  3.5 3.7 3.9 4.2 4.5 3.8 4.0 
 
90. Optical, photographic, 
cinematographic, 
measuring, precision, 
medical or surgical 
instruments and 
apparatus  3.3 3.4 3.6 3.8 4.1 3.5 3.7 
19 - Arms an d ammunition  0.2 0.2 0.2 0.2 0.2 0.2 0.1 
20 - Miscellaneous manufactured 
articles  2.9 3.1 3.3 3.7 3.8 3.4 3.6 
 
94. Furniture; bedding, 
mattresses, mattress 
supports, cushions and 
similar stuffed furnishings  1.7 1.8 1.9 2.2 2.3 2.0 2.1 
 
95. Toys, games and sports 
requisites; parts and 
accessories thereof  0.9 1.0 1.1 1.1 1.2 1.1 1.1 
21 - Works of art, collectors' 
pieces and antiques  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Other  2.3 2.0 2.8 2.7 1.0 1.8 1.9 
Note:  US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).  
Source:  WTO Secretariat calculations, based on data from the Department of Foreign Affairs and Trade, 
Trade statistical pivot tables.  
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  Table A1. 3 Merchandise exports by trading partner, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total exports  256,653  253,714  240,086  187,963  192,280  231,029  257,748   
(% of total exports)  
Americas  5.6 5.0 5.8 7.4 6.5 5.6 5.3 
United States  3.8 3.7 4.5 5.7 4.8 4.1 3.9 
Other America  1.9 1.3 1.3 1.7 1.7 1.5 1.4 
Canada  0.7 0.5 0.5 0.6 0.7 0.5 0.6 
Brazil  0.4 0.3 0.4 0.5 0.4 0.5 0.4 
Argentina  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Chile 0.2 0.1 0.1 0.1 0.2 0.1 0.1 
Mexico  0.4 0.2 0.2 0.2 0.2 0.1 0.1 
Europe  7.5 5.7 5.1 5.7 8.6 6.9 5.8 
EU-28 6.9 5.0 4.6 5.2 7.8 5.8 5.1 
United Kingdom  2.7 1.5 1.4 1.5 3.9 2.0 1.5 
Netherlands  1.2 0.9 0.8 0.9 1.0 1.0 1.1 
Germany  0.8 0.7 0.6 0.7 0.9 0.8 0.8 
France  0.4 0.5 0.4 0.4 0.5 0.5 0.5 
Belgium  0.7 0.5 0.4 0.5 0.4 0.4 0.3 
EFTA 0.3 0.4 0.3 0.3 0.5 0.6 0.5 
Switzerland  0.3 0.3 0.2 0.3 0.4 0.5 0.3 
Other Europe  0.3 0.4 0.2 0.2 0.2 0.5 0.1 
Turkey  0.3 0.4 0.2 0.2 0.2 0.5 0.1 
Commonwealth of 
Independent States  0.4 0.3 0.3 0.3 0.2 0.2 0.2 
Russian Federation  0.3 0.3 0.2 0.2 0.2 0.2 0.2 
Africa  1.4 1.4 1.2 1.3 1.0 1.2 1.1 
South Africa  0.6 0.5 0.5 0.5 0.4 0.5 0.5 
Mozambique  0.1 0.2 0.2 0.2 0.1 0.2 0.2 
Egypt  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Middle East  2.7 3.3 3.3 3.8 3.0 2.7 2.6 
United Arab 
Emirates  0.8 1.0 1.1 1.3 1.1 1.1 1.1 
Bahrain, Kingdom 
of 0.1 0.3 0.3 0.4 0.3 0.3 0.4 
Qatar  0.2 0.2 0.2 0.3 0.2 0.2 0.3 
Asia 81.5 83.4 83.0 80.6 79.7 82.6 84.2 
China  27.5 33.1 31.2 30.3 31.8 33.2 34.4 
Japan  19.3 18.1 18.1 16.1 14.0 14.9 16.3 
Other Asia  34.7 32.3 33.6 34.2 33.9 34.4 33.5 
Korea, Republic of  8.0 7.5 7.7 7.3 7.1 7.0 7.1 
India 4.9 3.6 3.3 4.2 4.4 5.3 4.9 
Chinese Taipei  3.2 2.8 2.7 2.6 3.0 3.0 3.1 
Hong Kong, China  3.0 4.1 3.7 3.6 3.9 4.0 3.0 
Singapore  2.9 2.1 3.2 2.8 2.1 2.2 2.9 
New Zealand  3.0 2.8 3.1 3.4 3.4 3.0 2.8 
Malaysia  2.0 2.1 2.3 2.3 2.1 2.0 2.2 
Indonesia  2.0 2.0 2.1 2.2 2.3 2.3 2.0 
Thailand  2.0 1.9 1.9 1.7 1.4 1.5 1.9 
Viet Nam  0.7 0.8 1.2 1.4 1.5 1.5 1.5 
Other  0.8 0.9 1.3 0.9 0.9 1.0 0.8 
Note:  US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).  
Source:  WTO Secretariat calculations, based on data from the Department of Foreign Affairs and Trade, 
Trade statistical pivot tables.  
  WT/TPR/S/ 396 • Australia  
 
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  Table A1. 4 Merchandise imports by trading partner, 2012 -18 
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  
Total imports  250,554  233,450  228,229  201,125  189,229  221,049  227,617   
(% of total imports)  
Americas  15.9 14.2 14.3 15.4 14.7 13.6 13.7 
United States  12.9 11.3 11.5 12.5 11.8 10.9 11.1 
Other America  3.0 2.9 2.8 2.9 2.9 2.7 2.7 
Mexico  0.8 0.9 0.8 0.9 1.0 1.0 1.0 
Canada  1.0 0.9 0.9 0.9 0.8 0.7 0.7 
Brazil  0.3 0.2 0.2 0.2 0.3 0.3 0.3 
Argentina  0.3 0.3 0.3 0.3 0.3 0.3 0.2 
Chile 0.5 0.4 0.4 0.3 0.2 0.2 0.2 
Peru 0.0 0.1 0.1 0.1 0.1 0.1 0.1 
Europe  19.5 19.8 19.7 19.0 21.1 18.9 20.0 
EU-28 17.9 18.1 18.0 17.4 19.3 17.4 18.3 
Germany  4.6 4.8 4.8 4.7 5.3 4.8 4.9 
United Kingdom  2.8 2.6 2.4 2.7 2.8 2.4 2.4 
Italy 2.2 2.4 2.4 2.2 2.3 2.2 2.3 
France  1.9 2.0 1.9 1.7 1.8 1.7 1.7 
Netherlands  0.8 0.7 0.8 0.8 0.9 0.8 1.0 
EFTA 1.3 1.4 1.3 1.3 1.4 1.2 1.3 
Switzerland  1.2 1.2 1.1 1.2 1.2 1.1 1.2 
Norway  0.1 0.2 0.2 0.1 0.1 0.1 0.1 
Other Europe  0.2 0.3 0.3 0.3 0.4 0.3 0.4 
Turkey  0.2 0.3 0.3 0.3 0.4 0.3 0.3 
Commonwealth of 
Independent States  0.4 0.6 0.6 0.1 0.1 0.2 0.1 
Russian Federation  0.4 0.4 0.5 0.1 0.1 0.1 0.1 
Africa  2.9 2.4 2.0 0.9 1.1 1.2 1.5 
South Africa  0.4 0.4 0.4 0.4 0.4 0.4 0.4 
Algeria  0.0 0.0 0.0 0.0 0.1 0.1 0.2 
Libya 0.5 0.3 0.0 0.0 0.0 0.0 0.2 
Nigeria  1.1 0.8 0.6 0.0 0.0 0.2 0.2 
Congo  0.4 0.4 0.3 0.0 0.1 0.1 0.2 
Gabon  0.5 0.4 0.4 0.2 0.2 0.2 0.2 
Middle East  2.3 2.5 1.9 1.7 1.5 1.4 1.7 
United Arab 
Emirates  1.3 1.6 1.1 0.9 0.8 0.7 1.0 
Israel  0.3 0.3 0.3 0.3 0.3 0.3 0.3 
Saudi Arabia, 
Kingdom of  0.2 0.1 0.2 0.2 0.2 0.1 0.2 
Asia 57.6 59.2 60.6 62.0 61.1 64.1 62.2 
China  18.4 19.6 20.6 23.1 23.4 22.4 24.6 
Japan  7.9 7.9 6.8 7.4 7.7 7.3 7.5 
Other Asia  31.3 31.7 33.2 31.4 30.0 34.4 30.1 
Thailand  4.2 4.7 4.3 5.1 5.7 5.0 4.9 
Korea, Republic of  4.1 4.4 4.9 5.7 4.3 10.7 4.4 
Malaysia  4.0 3.9 4.5 3.8 3.7 3.9 4.3 
Singapore  6.0 5.4 5.0 3.5 2.8 2.9 3.8 
New Zealand  3.0 3.1 3.2 2.9 3.0 2.7 2.6 
Viet Nam  1.3 1.6 2.0 1.7 1.8 1.8 2.0 
India 1.1 1.0 1.2 1.8 1.7 1.8 1.8 
Indonesia  2.6 2.4 2.4 2.1 1.9 1.5 1.6 
Chinese Taipei  1.5 1.7 1.8 1.8 1.7 1.5 1.6 
Papua New Guinea  1.4 1.2 1.4 1.1 1.4 1.2 1.2 
Other  1.6 1.3 0.9 0.8 0.4 0.7 0.7 
Note:  US dollar totals are obtained using the Australian Bureau of Statistics exchange rate (5368.0).  
Source:  WTO Secretariat calculations, based on data from the Department of Foreign Affairs and Trade, 
Trade statistical pivot tables.  
 
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  Table A2. 1 Notifications under WTO agreements, 1 January  2015 -18 November 2019  
Agreement  Requirement  Symbol and date of latest 
notification  
Agreement on Agriculture  
Articles 10 and 
18.2 Export subsidies (ES:1, ES:2, ES:3)  G/AG/N/AUS/103, 23/06/2016  
G/AG/N/AUS/104, 19/10/2016  
G/AG/N/AUS/112, 18/01/2018  
G/AG/N/AUS/111, 18/01/2018  
G/AG/N/AUS/120, 10/01/2019  
G/AG/N/AUS/121, 10/01/2019  
G/AG/N/AUS/126  
18/09/2019  
G/AG/N/AUS/127  
18/09/2019  
G/AG/N/AUS/128  
18/09/2019  
Article 16.2  Net food -importing decision: food and other 
assistance (NF:1)  G/AG/N/AUS/124, 11/07/2019  
G/AG/N/AUS/119, 15/11/2018  
G/AG/N/AUS/108, 24/04/2017  
G/AG/N/AUS/105, 06/12/2016  
G/AG/N/AUS/98, 03/03/2016  
Article 18.2  Domestic support: total aggregate measure of 
support (DS:1)  G/AG/N/AUS/129,  
09/10/19  
G/AG/N/AUS/117, 15/11/2018  
G/AG/N/AUS/117, 15/11/2018  
G/AG/N/AUS/109, 30/06/2017  
G/AG/N/AUS/99, 16/03/2016  
G/AG/N/AUS/97, 20/04/2015  
Article 18.2  Market access: volume of imports under tariff and 
other quotas (MA:2)  G/AG/N/AUS/102, 19/05/2016  
G/AG/N/AUS/107, 03/03/2017  
G/AG/N/AUS/114, 30/05/2018  
G/AG/N/AUS/122, 28/01/2019  
G/AG/N/AUS/125, 30/08/2019  
Article 18.3  Domestic support: new or modified exempt 
domestic support measures (DS:2)  G/AG/N/AUS/130, 09/10/2019  
G/AG/N/AUS/116, 16/11/2018  
G/AG/N /AUS/115, 15/11/2018  
G/AG/N/AUS/110, 03/07/2017  
G/AG/N/AUS/100, 17/03/2016  
G/AG/N/AUS/96, 20/04/2015  
Articles 5.7 and 
18.2  Special safeguard provisions (MA:5)  G/AG/N/AUS/123, 28/01/2019  
G/AG/N/AUS/113, 29/05/2018  
G/AG/N/AUS/106, 07/02/2017  
G/AG/N/AUS/101, 18/05/2016  
G/AG/N/AUS/95, 10/02/2015  
General Agreement on Trade in Services  
Article VII:4  Contact and enquiry points  S/ENQ/78/Rev.16, 22/05/16  
Article V:7(a)  Economic integration agreement: Japan -Australia 
FTA 
Economic integration agreement: China -Australia 
FTA 
Economic integration agreement: CPTPP  S/C/N/787, 13/01/2015  
S/C/N/858, 27/01/2016  
S/C/N/920, 20/12/2018  
Article VII:4  Recognition agreements/arrangements; 
autonomous recognition measures  S/C/N/961, 15/10/2019  
S/C/N/951, 13/06/2019  
S/C/N/903, 14/05/2018  
S/C/N/951, 13/06/2019  
Agreement on the Implementation of Article  VI GATT 1994 (anti -dumping)  
Article 16.4  Anti-dumping actions (preliminary and final)  G/ADP/N/270, 16/05/2015 to  
G/ADP/N/326, 25/04/2019  
G/ADP/N/329, 28/06/2019  
G/ADP/N/330, 05/08/2019  
G/ADP/N/331, 14/08/2019  
G/ADP/N/332, 26/09/2019  
G/ADP/N/333, 31/10/2019  
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  Agreement  Requirement  Symbol and date of latest 
notification  
Article 16.4  Anti-dumping actions (taken within the preceding 
six months)  G/ADP/N/328/AUS, 27/09/2019  
G/ADP/N/322/AUS, 15/04/2019  
G/ADP/N/314/AUS, 28/08/2018  
G/ADP/N/308/AUS, 13/03/2018  
G/ADP/N/300/AUS, 28/08/2017  
G/ADP/N/294/AUS, 27/02/2017  
G/ADP/N/286/AUS, 29/08/2016  
G/ADP/N/280/AUS, 25/02/2016  
G/ADP/N/265/AUS/Rev.1, 
24/11/201 5 
G/ADP/N/272/AUS, 21/10/2015  
GATT 1994  
Article 
XVII:4(a)  State -trading activities  G/STR/N/17/AUS, 01/08/2019  
G/STR/N/16/AUS, 29/07/2016  
Article 
XXIV:7(a)  Agreement establishing a free -trade area: 
Malaysia and Australia  
Agreement establishing a free -trade area: ASEAN -
Australia -New Zealand FTA  
Agreement establishing a free -trade area: Korea 
(Rep. of) and Australia  WT/REG395/N/1, 20/12/2018  
WT/REG369/N/1, 27/01/2016  
WT/REG361/N/1, 13/01/2015  
Agreement on Import Licensing Procedures  
Article 7.3  Replies to questionnaire on import licensing 
procedures  G/LIC/N/3/AUS/7, 12/02/2015  
G/LIC/N/3/AUS/8, 01/03/2016  
G/LIC/N/3/AUS/9, 23/03/2017  
G/LIC/N/3/AUS/9/Rev.1, 
08/06/2017  
G/LIC/N/3/AUS/10, 20/09/2018  
G/LIC/N/3/AUS/11, 20/09/2018  
G/LIC/N/3/AUS/12, 23/09/2018  
Article 5.1, 5.2, 
5.3 Notification under Articles 5.1, 5.2, 5.3 of the  
Agreement  G/LIC/N/2/AUS/2, 12/01/2015  
Article 8.2(b)  Changes in laws/regulations and administrative 
arrangements  G/LIC/N/1/AUS/2, 12/01/2015  
Agreement on Subsidies and Countervailing Measures  
Article 25.1  Subsidies  G/SCM/N/343/AUS/Rev.1, 
14/10/2019  
G/SCM/N/343/AUS, 27/06/2019  
G/SCM/N/315/AUS, 04/05/2018  
G/SCM/N/284/AUS, 04/02/2016  
Article 25.11  Countervailing duty actions (preliminary and final)  G/SCM/N/287, 16/04/2015, to  
G/SCM/N/355, 07/11/2019,  
Article 25.11  Countervailing duty actions (taken within the 
preceding six months)  G/SMC/N/281, 24/02/2015  
G/SMC/N/289, 21/10/2015  
G/SMC/N/281.Rev1, 24/11/2015  
G/SMC/N/298, 09/03/2016  
G/SMC/N/305, 29/08/2016  
G/SMC/N/313, 01/03/2017  
G/SMC/N/321, 28/08/2017  
G/SMC/N/328, 16/03/2018  
G/SMC/N/334, 12/09/2018  
G/SMC/N/342, 14/03/2019  
G/SMC/N/346, 20/03/2019  
G/SMC/N/349, 21/01/2019  
Agreement on Trade Facilitation  
Trade 
Facilitation 
Agreement  Notification under Articles 22.1 and 22.2  G/TFA/N/AUS/2, 19/04/18  
G/TFA/N/AUS/3, 14/06/19  
Trade 
Facilitation 
Agreement  Notification under Articles 1.4, 10.4.3, 10.6.2, and 
12.2.2  G/TFA/N/AUS/Rev.1, 20.05.19  
Agreement on Sanitary and Phytosanitary Measures  
Article 7, 
Annex  B  Sanitary/phytosanitary regulations  G/SPS/N/AUS/354, 17/02/2015 to 
G/SPS/N/AUS/488, 04/11/2019  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  G/TBT/N/AUS/100, 07/12/2015 to 
G/TBT/N/AUS/112, 08/10/2019  WT/TPR/S/ 396 • Australia  
 
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  Agreement  Requirement  Symbol and date of latest 
notification  
Articles 2.9 and 
5.6 Technical regulations  G/TBT/N/AUS/103, 24/10/2016  
Trade -Related Aspects of Intellectual Property Rights  
Article 63.2  Laws/regulations made effective by the notifying 
Member; amendment of a law/regulation  IP/N/1/AUS/7, 01/10/2015  
IP/N/1/AUS/8, 01/10/2015  
IP/N/1/AUS/9, 01/10/2015  
IP/N/1/AUS/13, 26/02/2015  
IP/N/1/AUS/14, 26/02/2015  
IP/N/1/AUS/11; IP/N/1/AUS/C/20, 
26/02/2018  
IP/N/1/AUS/16; IP/N/1/AUS/C/22, 
09/05/2019  
IP/N/1/AUS/15; IP/N/1/AUS/C/21, 
09/05/2019  
IP/N/1/AUS/21; IP/N/1/AUS/G/5, 
16/05/2019  
IP/N/1/AUS/20; IP/N/1/AUS/C/26, 
09/05/2019  
IP/N/1/AUS/19; IP/N/1/AUS/C/25, 
09/05/2019  
IP/N/1/AUS/18; IP/N/1/AUS/C/24, 
09/05/2019  
IP/N/1/AUS/17; 09/05/2019  
IP/N/1/AUS/21,  
09/05/2019   
Government Procurement  
Appendix I  Procurement thresholds  GPA/THR/AUS/1, 13/06/2019  
Agreement on Rules of Origin  
Paragraph 4 of 
Annex II  Preferential and non -preferential rules of origin  G/RO/N/137, 11/04/2016  
G/RO/N/183, 15/04/2019  
Article 5  Notification of preferential rules of origin for least 
developed countries  G/RO/LDC/N/AUS/1, 12/09/2017  
G/RO/LDC/N/AUS/1/Rev.1, 
16/09/2017  
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  Quantitative restrictions  G/MA/QR/N/AUS/2, 06/02/2015  
G/MA/QR/N/AUS/3, 10/08/2017  
Source:  WTO Secretariat.  
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  Table A2. 2 RTAs in force, 2019  
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP)  
Parties  Australia, Brunei Darussalam, Canada, Chile, Japan, 
Malaysia, Mexico, New Zealand, Peru, Singapore and 
Viet Nam 
Date of signature/entry into force (Australia)  March 2018/December 2018  
End of transition period for Australia (goods 
liberalization)  Fully implemented upon entry into force of Agreement   
Coverage (selected features)  Goods and services  
Australia's merchandise trade with CPTPP  Parties  
(2018)  21.5% of total imports; 26. 3% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V 
WTO consideration status  Factual Presentation not yet distributed.  
WTO document series  WT/REG395  
Japan -Australia Economic Partnership Agreement (JAEPA)  
Parties  Australia and Japan  
Date of signature/entry into force (Australia)  July 2014/January 2015  
End of transition period for Australia (goods 
liberalization)  97% of Australia 's exports to Japan will enter duty -
free or receive preferential access when the deal is 
fully implemented  
Coverage (selected features)  Goods and services  
Australia's merchandise trade with Japan (2018)  7.2% of total imports; 1 6.3% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V 
WTO consideration status  Factual Presentation distributed. WTO consideration 
on 5 April 2016.  
WTO document series  WT/REG361  
China - Australia Free Trade Agreement (ChAFTA)  
Parties  Australia and China  
Date of signature/entry into force (Australia)  June 2015/December 2015  
End of transition period for Australia (goods 
liberalization)  Elimination of Australian import tariffs on 82% of 
imports from China upon entry into force of 
Agreement , and 100% tariff elimination by 1 January 
2019.  
Coverage (selected features)  Goods and services  
Australia's merchandise trade with China (2018)  23.6% of total imports; 34. 3% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V 
WTO consideration status  Factual Presentation distributed. WTO consideration 
on 7 November 2016.  
WTO document series  WT/REG369  
Korea -Australia Free Trade Agreement (KAFTA)  
Parties  Australia and Korea (Rep. of)  
Date of signature/entry into force (Australia)  April 2014/December 2014  
End of transition period for Australia (goods 
liberalization)  2022 
Coverage (selected features)  Services, government procurement, intellectual 
property, competition policy, environment, and labour  
Australia's merchandise trade with the Republic of 
Korea (201 8) 4.2% of total imports; 7. 1% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual Presentation distributed. WTO consideration 
on 27  June 2016.  
WTO document series  WT/REG359  
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  Malaysia -Australia  Free Trade Agreement (MAFTA)  
Parties  Australia and Malaysia  
Date of signature/entry into force (Australia)  May 2012/January 2013  
End of transition period for Australia (goods 
liberalization)  Fully implemented upon entry into force of Agreement. All 
of Australia's tariffs on imports from Malaysia have been 
removed  
Coverage (selected features)  Services, competition policy, environment, intellectual 
property rights, investment, and labour  
Australia's merchandise trade with Malaysia 
(2018) 4.1% of total imports; 2. 2% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO consideration on 
23 September 2014.  
WTO document series  WT/REG340  
 
The Agreement Establishing the  Association of Southeast Asian Nations (ASEAN) -Australia -New 
Zealand Free Trade Area (AANZFTA)  
Parties  Australia, New Zealand, Brunei Darussalam, Cambodia, 
Indonesia, Lao PDR, Myanmar, Malaysia, the Philippines, 
Singapore, Thailand, and Viet Nam  
Date of signature/entry into force (Australia)  February 2009/January 2010  
End of transition period for Australia (goods 
liberalization)  2020. At end of transition period , all of Australia's tariffs 
on imports from AANZFTA parties should be removed. Of 
the tariffs to be liberalized at the end of the 
implementation period, most relate to textiles and textile 
articlesa 
Coverage (selected features)  Services, investment, intellectual property rights, 
e-commerce, competition policy and economic cooperation  
Australia's merchandise trade with ASEAN and 
New Zealand (201 8) 19% of total imports; 13.9% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual presentation distributed. WTO consideration on 23 
September 2014.  
WTO document series  WT/REG284  
 
Australia -Chile Free Trade Agreement ( ACiFTA )  
Parties  Australia and Chile  
Date of signature/entry into force (Australia)  July 2008/March 2009  
End of transition period for Australia (goods 
liberalization)  2015 
Coverage (selected features)  Services, investment, government procurement, 
competition policy, e -commerce and intellectual property 
rights  
Australia's merchandise trade with Chile 
(2018) 0.1% of total imports; 0.1% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual Presentation distributed. WTO consideration on 14 
June 2010.  
WTO document series  WT/REG263  WT/TPR/S/ 396 • Australia  
 
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  Thailand -Australia Free Trade Agreement (TAFTA)  
Parties  Australia and Thailand  
Date of signature/entry into force (Australia)  July 2004/January 2005  
End of transition period for Australia (goods 
liberalization)  2015. At end of transition period , all of Australia's tariffs 
on imports from Thailand should be removed. Of the 
tariffs to be liberalized at the end of the implementation 
period, most relate to textiles and textile article s 
Coverage (selected features)  Services, investment, movement of natural persons, 
e-commerce, competition policy and intellectual property 
rights  
Australia's merchandise trade with Thailand 
(2018) 4.7% of total imports; 1.9% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual Presentation distributed. WTO consideration on 14 
May 2007.  
WTO document series  WT/REG185  
 
Australia -United States Free Trade Agreement (AUSFTA)  
Parties  Australia and United States  
Date of signature/entry into force (Australia)  May 2004/January 2005  
End of transition period for Australia (goods 
liberalization)  2015. At end of transition period , all of Australia's tariffs 
on imports from the United States should be removed, 
with the exception of eight lines (used passenger motor 
vehicles)  
Coverage (selected features)  Services, investment, government procurement, 
competition policy, e -commerce, intellectual property 
rights, labour issues and environmental matters  
Australia's merchandise trade with the 
United  States (201 8) 10.5% of total imports; 3. 9% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual Presentation distributed. WTO consideration on 
13 September 2007.  
WTO document series  WT/REG184  
 
Singapore -Australia Free Trade Agreement (SAFTA)  
Parties  Australia and Singapore  
Date of signature/entry into force (Australia)  February 2003/July 2003 (with amendments in 2011)  
End of transition period for Australia (goods 
liberalization)  Fully implemented upon entry into force of Agreement. All 
of Australia's tariffs on imports from Singapore have been 
removed  
Coverage (selected features)  Services, intellectual property rights, government 
procurement, competition policy and investment  
Australia's merchandise trade with Singapore 
(2018) 3.6% of total imports; 2. 8% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Factual Abstract distributed.  
WTO document series  WT/REG158  
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  Australia -New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)  
Parties  Australia and New Zealand  
Date of signature/entry into force (Australia)  December 1982/January 1983 (goods); August 
1988/January 1989 (services)  
End of transition period for Australia (goods 
liberalization)  Completed in 1995. All of Australia's tariffs on imports 
from New Zealand have been removed  
Coverage (selected features)  Services, competition policy, investment. The Agreement 
is supplemented by bilateral arrangements on: movement 
of people; mutual recognition of standards; government 
procurement; and aviation  
Australia's merchandise trade with 
New Zealand (201 8) 2.5% of total imports; 2.8% of total exports  
WTO legal cover  GATT Art. XXIV and GATS Art. V  
WTO consideration status  Report adopted (goods); factual abstract distributed 
(services)  
WTO document series  WT/REG40 and WT/REG111  
 
Agreement on Trade and Commercial Relations between the Government of Australia and the 
Government of Papua New Guinea (PATCRA II)  
Parties  Australia and Papua New Guinea  
Date of signature/entry into force (Australia)  February 1991/September 1991  
End of transition period for Australia (goods 
liberalization)  100% of Australia's tariffs on imports from Papua New 
Guinea have been removed  
Coverage (selected features)  Goods only. Investment  
Australia's merchandise trade with Papua New 
Guinea (201 8) 1.1% of total imports; 0. 6% of total exports  
WTO legal cover  GATT Art. XXIV  
WTO consideration status  Working party meeting held on 2 March 1977. Report 
adopted.  
WTO document series  L/4571  
a For more information on Australia's tariff liberalization schedule, see WTO document WT/REG284/1, 
27 June 2014.  
Source:   WTO Secretariat. Further information may be found in the WTO Database on RTAs: 
http://rtais.wto.org . 
  WT/TPR/S/ 396 • Australia  
 
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  Table A2. 3 Selected bilateral treaties relating to trade and investment  
Partne r Title Date of  
entry into 
force  
Lebanon  Agreement on Economic, Trade and Technical Cooperation between the 
Government of Australia and the Government of the Republic of Lebanon  2000 
Ukraine  Agreement on Trade and Economic Cooperation with the Government of 
Ukraine  1999 
Romania  Agreement with the Government of Romania on Trade and Economic 
Cooperation  1997 
Papua New 
Guinea  Agreement on Trade and Commercial Relations between the Government of 
Australia and the Government of Papua New Guinea  1991 
Thailand  Agreement on Economic Cooperation with the Government of the Kingdom of 
Thailand  1990 
Pakistan  Trade Agreement between the Government of Australia and the Government 
of the Islamic Republic of Pakistan  1990 
Turkey  Agreement on Trade, Economic and Technical Cooperation with the 
Government of the Republic of Turkey  1989 
Jordan  Trade Agreement between the Government of Australia and the Government 
of the Hashemite Kingdom of Jordan  1988 
Egypt  Trade Agreement between the Government of Australia and the Government 
of the Arab Republic of Egypt  1988 
Philippines  Trade Agreement with the Government of the Republic of the Philippines  1979 
Brazil  Trade Agreement between the Government of Australia and the Government 
of the Federative Republic of Brazil  1978 
Korea (Rep. 
of) Agreement with the Republic of Korea on the Development of Trade and 
Economic Relations  1975 
Indonesia  Trade Agreement between the Government of the Commonwealth of Australia 
and the Government of the Republic of Indonesia  1973 
China  Trade Agreement between the Government of Australia and the Government 
of the People's Republic of China (as amended in 1986)  1973 
Japan  Agreement between the Government of Australia and the Government of Japan 
on Commerce  1957 
Source:  DFAT Treaty Database. Viewed at: http://www.dfat.gov.au . 
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  Table A3. 1 Non-agricultural subsidies notified to the WTO, 2016/17 and 2018/19  
(AUD)  
 Type of subsidy  Duration  2017/18  2018/19  
FEDERAL PROGRAMMES      
Environment      
Sustainable Rural Water Use and 
Infrastructure Program  .. .. .. .. 
New South Wales State Basin 
Pipe – Stock and Domestic  Funding 
agreement  June 2012 - 
2017/18  ..a .. 
Private Irrigation Infrastructure 
Operators Program for New 
South Wales  Funding 
agreement  19 June 2009 - 
2017/18  95 million  8.3 million  
Queensland Healthy Headwater 
Water Use and Efficiency 
Program  Funding 
agreement  1 June 2010 - 
2017/18  11.3 million  8.3 million  
Goulburn Murray Water 
Connection Project Stage 2  Funding 
agreement  November 2011 - 
June 2019  160.0 million  109.1 million  
Victoria Farm Modernisation 
Project  Funding 
agreement  November 2013 - 
30 June 2019  2.4 million  .. 
New South Wales State Water 
Metering Scheme (including 
pilot) Funding 
agreement  June 2012 - 
2016/17  2.3 million  .. 
On-farm Irrigation Efficiency 
Project (including pilot projects)  Funding 
agreement  2010 - October 
2018/19  23.5 million  6.6 million  
New South Wales State Irrigated 
Farm Modernisation Project (and 
pilot) Funding 
agreement  June 2012 - 
October 2017  3.0 million  1.8 million  
Water for the Environment 
Special Account      
Commonwealth On -Farm Further 
Irrigation Efficiency Program 
(pilot)  Funding 
agreement  September 2016 - 
2023/24  6.8 million  0.8 million  
Innovation      
Entrepreneurs programme - 
accelerating commercialization  Grants  1 November 2014 
– ongoing  51.4 million  43.2 million  
Entrepreneurs programme - 
business management  Grants  1 July 2014 – 
ongoing  37.8 million  44 million  
Entrepreneurs programme - 
innovation connections  Grants  1 January 2016 - 
ongoing  19.3 million  18.3 million  
Entrepreneurs programme - 
incubator support initiative  Grants  20 September 
2016 – ongoing  3.6 million  8.7 million  
Industry Growth Centres Initiative  Grants  4 March 2015 – 
ongoing  78.5 million  59.8 million  
Quantum Computing  Grants  2016/17 – 
2020/21  .. .. 
Business research and innovation 
initiative  Grants  March 2017 - 
June 2019/20  7.9 million  2.3 million  
Biomedical Translation Fund  Grants  12/2016 - 
ongoing  29.9 million  41.1 million  
CSIRO Innovation Fund  Grants  December 2016 - 
ongoing  20.5 million  9.9 million  
Manufacturing      
Advanced Manufacturing Growth 
Fund Grants  2017 - 2020/21  2.8 million  13.1 million  
Advanced Manufacturing Early 
Stage Research Fund  Research fund  2017/18 - 
2020/21  1 million  1 million  
Passenger motor vehicles      
Automotive Diversification 
Programme  Grants  1 July 2015 until 
funds are spent  1.5 million  .. 
Automotive Transformation 
Scheme   Funding 
agreement  1 January 2011 - 
31 December 
2020 106.9 million  46.4 million  
Business Capability Support 
Program  Grants  30 November 
2012 - 30 
September 2017  .. .. 
Skills and Training Initiative  Grants  2015/16 - 30 June 
2018  ..a .. WT/TPR/S/ 396 • Australia  
 
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   Type of subsidy  Duration  2017/18  2018/19  
Toyota Major Facelift Vehicle and 
Supplier Grant  Grants  2013/14 - 
2017/18  28.6 million  .. 
Automotive Innovation Lab Access 
Grants  Grants  2018/19  .. .. 
Automotive Innovation Lab 
Facilities Stage II  Grants  2018/19 and 
2019/20  .. 2.5 million  
REGIONAL DEVELOPMENTS      
Australian Government Innovation 
and Investment Fund – Tasmania  Grants  2014/15 - 
2016/17  5.0 million  9.9 million  
Geelong Region Innovation and 
Investment Fund  Grants  2013/14 - 
2018/19  4.0 million  0.1 million  
Growth Fund – Next Generation 
Manufacturing Investment 
Program  Grants  2015/16 - 
2019/20  15.8 million  10.3 million  
Melbourne's North Innovation and 
Investment Fund  Grants  2013/14 - 
2017/18  1.0 million  .. 
Regional Growth Fund  Grants  July 2018 - June 
2022 .. .. 
Regional Jobs and Investment 
Packages  Grants  July 2017 - June 
2020 .. .. 
Tasmania Jobs and Growth Plan  Grants  July 2013 - 
30 June 2019  ..a .. 
ALUMINIUM      
Portland Aluminium Smelter 
Assistance Program  Grants  January 2017 – 
30 June 2021  .. .. 
RESOURCES      
Carbon Capture and Storage 
Flagships  Funding 
agreement  2009 - 30 June 
2022 31.7 million  7.6 million  
Coal Mining Abatement 
Technology Support Package  Funding 
agreement  30 June 2020  20,000  2.2 million  
Gas Acceleration Program  Grants  2015/16 - 
2018/19  6.5 million  13 million  
SUB-FEDERAL PROGRAMMES      
Australian Capital Territory      
Innovation Connect  Grants  Will cease 30 June 
2021 ..a .. 
Screen Production Fund  Grants  2017/2018  ..a .. 
CBR Screen Fund  Grants  Ongoing  ..a .. 
Key Capability Area Funding  Grants  1 July 2017 – 
30 June 2018  .. .. 
Priority Investment Program  Competitive 
grants  2018/2019 - 
2020/2021  .. .. 
New South Wales      
Commercial Fisheries Business 
Adjustment Program  Grants  2012 - 1 July 
2019 .. .. 
Aquaculture Debt Waiver  Waiver of annual 
fees 12 months  .. .. 
Start-up Support Programme 
(Jobs for NSW)  Grants  Undefinedd .. .. 
Solutions Pilot (Jobs for NSW)  Grants  30 June 2019  .. .. 
Jobs for NSW Loan Products  Concessional 
loans  .. .. 
Jobs for Loan Guarantee  Funding 
agreement   ..b .. 
Jobs Action Plan Payroll Tax 
Rebate Scheme  Payroll tax 
rebate   ..b .. 
Study NSW Partner Projects  Funding 
agreement  Ongoing  .. .. 
Legacy Programs  Grants  Case-by-case 
basis .. .. 
Knowledge Hubs Initiative  Funding 
agreement  2017/18 - 
2019/20  ..b .. 
Farm Innovation Fund  Concessional 
loan  .. .. 
Drought Assistance Fund  Concessional 
loan June 2018 - 
ongoing  .. .. 
Seafood Innovation Fund Loan 
Scheme  Concessional 
loan Undefined  .. .. WT/TPR/S/ 396 • Australia  
 
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   Type of subsidy  Duration  2017/18  2018/19  
Disaster Assistance  Grants  2017/18 and 
2018/19  .. .. 
NSW Forest Industries Innovation 
Fund Loan Undefined  .. .. 
Farm Business Skills Program  Grants  Undefined  .. .. 
NORTHERN TERRITORY      
Industry Support Grant Program  Grants  Ongoing  .. .. 
Business Innovation Support 
Initiatives  Grants  1 July 2014 - 
ongoing  1.1 million  600,000  
Trade Support Schemes  Funding 
agreement  Ongoing  .. .. 
Business Growth Program  Grants  Ongoing  1.3 million  1.2 million  
Regional Economic Development 
Fund Grants  Ongoing  225,014  194,337  
Smarter Business Solutions  Grants  June 2008 - 
2019/20  288,626  715,920  
Aboriginal Business Development 
Program  Grants  Ongoing  1.0 million  982,014  
Aboriginal Workforce Grants 
Program  Grants  Ongoing  2.8 million  2.0 million  
Queensland      
Vessel Tracking Rebate Scheme  Cash rebate  30 August 2018 - 
31 December 
2020 .. .. 
Strategic Resources Exploration 
Program  Grants  2016/2017  .. .. 
Guarantee to Translational 
Research Institute Pty Ltd  Form of a 
guarantee  May 2013 - April 
2023 ..b .. 
Life Sciences Queensland  Grants  1 January 2016 - 
31 December 
2019 ..a .. 
Medical Research 
Commercialisation Fund  Grants  1 January 2009 - 
30 June 2022  .. .. 
Made in Queensland Grants 
Scheme  Grants  31 January 2017 - 
ongoing  8.7 million  .. 
Advance Queensland Industry 
Attraction Fund  Payroll tax 
refund, stamp 
duty refund, and 
grants  July 2016 - 
ongoing  ..a .. 
Primary Industry Productivity 
Enhancement Scheme (Pipes)  Concessional 
loan 1 July 2015 – 
30 June 2017  ..a .. 
Energy Queensland – Uniform 
Tariff Policy  Funding 
agreement  Ongoing  ..a .. 
Origin Energy – Uniform Tariff 
Policy  Funding 
agreement  Ongoing  2.7 million  2.8 million  
Business Energy Savers Program  Grants  1 January 2018 - 
30 June 2021   1.0 million  
Outback Tourism Infrastructure 
Fund Merit-based 
grants  August 2018 and 
now closed  .. .. 
Growing Tourism Infrastructure 
Fund Merit-based 
grants  July 2018 and 
now closed  .. .. 
Great Barrier Reef Island Resorts 
Rejuvenation Fund  Funding 
agreement  30 June 2019 – 
30 June 2020  .. .. 
Attracting Tourism Fund  Funding 
agreement  June 2020 - June 
2022 .. .. 
Jobs and Regional Growth Fund  Funding 
agreement  1 February 2017 
undefined  .. .. 
Queensland Biomedical Voucher 
Program  Competitive 
grants 
programme  26 April 2018 – 
27 June 2019  .. .. 
Biomedical Assistance Fund  Grants  21 September 
2017 – 
2 November 2017  .. .. 
Superyacht Industry Development 
Fund  Grants  2018 - 2023 .. .. 
Queensland Waste to Biofutures 
Fund  Grants  17 March 2019 - 
2021/2022  .. .. WT/TPR/S/ 396 • Australia  
 
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   Type of subsidy  Duration  2017/18  2018/19  
Biofutures Industry Development 
Fund  Grants  25 November 
2016 - ongoing  .. .. 
Queensland Hackerspace Grant 
Program  Grants  2017 - 2019/2020  .. .. 
Business Development Fund  Funding 
agreement  Ongoing  .. .. 
Payroll tax rebate for apprentices 
and trainees  Rebate  October 2015 - 30 
June 2021  24.4 million  26.6 million  
South Australia      
Economic and Business Growth 
Fund Grants/loans  2018/2019  .. .. 
Regional Growth Fund  Grants  2018/2019  .. .. 
Research, Commercialisation and 
Start-up Fund  Grants  2018/2019  .. .. 
South East Forestry Partnerships 
Program  Grantsf 2015/2016, 
2016/2017  .. .. 
South Australian River Murray 
Sustainability Program  Funding 
agreementc 2017/2018  .. .. 
Tasmania      
Pacific Oyster Mortality Syndrome 
Recovery Concessional Loans 
Scheme  Loan scheme  April 2016 - 1 May 
2018 .. .. 
Abalone Industry Reinvestment 
Fund Funding 
agreement  2018/2019 - 
2022/2023  .. .. 
Abalone Industry Development 
Trust Fund  Grants  2015/16 - 
2018/19  .. .. 
ShellMAP  Funding 
agreement  2018/19 - 
ongoing  .. .. 
Investment Attraction and 
Industry Development Program  Grants/ 
concessional 
loans/payroll tax 
subsidies/tax 
subsidies/rental 
subsidies and/or 
stamp duties 
subsidies  Ongoing  .. .. 
Vineyard and Orchard Expansion 
Program  Grants  April 2013 - June 
2018 .. .. 
AgriGrowth Concessional Loans 
Scheme  Concessional 
loans August 2015 - 
ongoing  2.88 million  9.4 million  
Advanced Manufacturing Market 
Expansion Program  Grants  August 2016 - 
ongoinge  131,634  131,076  
Advanced Manufacturing 
Innovation and Growth Voucher 
System  Grants  August 2016 - 
ongoing  162,500  98,207  
On-farm Energy Audit and Capital 
Infrastructure Grant Program  Grants  2018/19 and 
2019/20  .. 299,958  
Exploration Drilling Grant Initiative  Grants  2018/2019  .. 60,000  
Screen Innovation Fund  Grants  2028/19 - 
2020/21  .. 1 million  
Targeted Apprentice and Trainee 
Grant for Small Business Program  Grants  2018/19  .. 756,250  
Victoria      
Investment Attraction and 
Assistance Program and 
Investment Support Program  Grants  Ends 30 June 
2020 .. .. 
Sector Growth Program  Grants  March 2016 - 
June 2019  0.8 million  4.3 million  
Future Industries Manufacturing 
Program  Grants  Undefined - June 
2019 3.6 million  5.1 million  
Local Industry Fund for Transition  Grants  Undefined - June 
2019 13.0 million  8.2 million  
Automotive Supply Chain 
Transition Program  Grants  7 December 2015 
- 30 June 2018  2.5 million  .. 
New Energy Jobs Fund  Grants  Undefined - 1 
March 2018  .. .. 
Boosting Business Productivity  Grants  October 2016 - 
September 2018  ..a .. WT/TPR/S/ 396 • Australia  
 
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   Type of subsidy  Duration  2017/18  2018/19  
Regional Jobs and Infrastructure 
Fund  Grants  1 July 2015 - 30 
June 2019  .. .. 
Regional Tourism and 
Infrastructure Fund  Grantsf December 2015 - 
ongoing  8.1 million  3.6 million  
Latrobe Valley Economic 
Facilitation Fund  Grantsf Undefined - 
2019/20  ..a .. 
Latrobe Valley Supply Chain 
Transition Program  Grantsf 3 November 2016 
- 30 June 2018  1.4 million  1.2 million  
Back to work scheme  Funding 
agreement  2016 ongoing  3.0 million  2.2 million  
Western Australia      
Marine Stewardship Council 
Certification  Funding 
agreement  2012/13 - 
2017/18  7.4 million  2.5 million  
Local Capability Fund  Funding 
agreement  Ongoing  .. .. 
Farm Debt Mediation Scheme  Funding 
agreement  2015/16 - 
undefined  .. .. 
Agricultural Sciences Research 
and Development Fund  Grants  1 July 2017 - 30 
June 2019  .. .. 
Koolyanobbing Mine Financial 
Assistance Program  Funding 
agreement  December 2018 - 
ongoing  .. .. 
Magnetite Financial Assistance 
Program  Funding 
agreement  1 July 2017 - 30 
June 2019  .. .. 
The Co -funded Exploration Drilling 
Program  Funding 
agreement  2009 - June 2020  ..a .. 
Fremantle Container Rail Subsidy  Funding 
agreement  Undefined - 
2021/22  3.5 million  5.9 million  
Payroll Tax Exemption for Wages 
Paid to Apprentices and Trainees  Payroll tax 
exemptions  2015/16 - 
2016/17  .. .. 
Payroll Tax Indigenous Wage 
Rebate  Payroll tax 
exemptions  1 July 2012 - 
ongoing  .. .. 
New Jobs and Skills WA Employer 
Incentive  Funding 
agreement  October 2018 - 
1 July 2019  .. .. 
Collie Futures Industry 
Development Fund  Grants  1 July 2019 - 
30 June 2023  .. .. 
.. Not available.  
a Annual subsidy not available; only total value of programme available.  
b Annual subsidy not available; only total annual value of programme available.  
c Limited financial assistance.  
d The duration of assistance agreed between the client and Jobs for NSW.  
e The duration depends on the project.  
f Financial assistance is linked  to the achievement of milestone conditions, and is determined on a 
case-by-case basis.  
Source:  WTO document G/SCM/N/343/AUS/Rev.1, 14 October 2019.  
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