WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/AUS/49 
31 August 2012 
 (12-4715) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the EUROPEAN UNION1 Regarding the  
New and Full Notification of AUSTRALIA2 
  
 The following communication, dated 29 August 2012,  is being circulated at the request of the 
Delegation of Australia.    
_______________ 
 
 SUB-FEDERAL PROGRAMMES 
 Under section:  AUSTRALIA N CAPITAL TERRITORY, Title of the Subsidy "Investment 
Facilitation Programme" 
 
Question 1 
 
 Please provide details in relation to the policy objective.  
 
Reply 
 
 The ACT Government policy objective of enc ouraging a diverse and innovative private sector 
acknowledges the ACT's strengths in research, e ducation and innovation,  and leverages those 
strengths to deliver positive growth and econo mic development opportunities for the ACT.  
Consistent with this, the Investment Facilita tion Program offers businesses the potential for 
concessions on payroll taxation obligations in retu rn for, amongst other things, making significant 
new investments that will enhance the Territory's innovation capacity. 
 
Question 2 
 
 What are the criteria on which the treasurer or cabinet make their decisions about the 
level of subsidies?  
Reply 
  Applications for assistance under the Investment  Facilitation Program ar e assessed against the 
following criteria, which are used to inform Cabi net and/or the Treasurer when making decisions on 
such applications: 
 
                                                      
1 G/SCM/Q2/AUS/48. 
2 G/SCM/N/220/AUS/Rev.1.   G/SCM/Q2/AUS/49 
Page 2 
 
 
  PROGRAM ELIGIBILITY CRITERIA 1 
 
Soundness of the Business Case as detailed in the Applicant's Proposal, including: 
 
 the nature of the proposal relative to the si ze, scope and history of the applicant firm, 
including the likelihood of projected growth ta rgets or other risk-related targets being met; 
 the commercial viability of the project; 
 demonstrated market research and assessment; 
 management skills/experien ce and business planning; 
 an assessment of technology and technical expertise; 
 the financial assistance contributed from other sources (including from the applicant 
organisation) relative to the assistance sought for the project; 
 the likelihood of the project proceeding without ACT Government funding; and 
 environmental sustainability and a demonstrated record of OH & S compliance 
PROGRAM ELIGIBILITY CRITERIA 2 
 
Contribution to the ACT economy, including:  
 direct economic contribution with a focus on one or more of the following areas: 
o R&D expenditure, including whether the R& D links into existing ACT capacity or 
skills; 
o commercialisation; 
o new skills, technology or new economic activity to be introduced; and/or 
o local supply chain impacts. 
  
PROGRAM ELIGIBILITY CRITERIA 3 
 Strategic Value to the Territory, including:  
 
 competitive neutrality/an assessment of the possible impact on existing ACT businesses; and 
 the development of Canberra's  innovation capabilities through: 
o demonstration of the benefit to the Terri tory associated with the innovation or 
concept; 
o potential to enhance Canberra's business branding through the promotion of 
technology and human capital credentials; 
o capacity to contribute to the formation of other innovation industry firms in the 
region; and  G/SCM/Q2/AUS/49 
 Page 3 
 
 
  o ability to work in partnership with the business community and key institutions to 
promote innovation in the ACT. 
Under section:  NEW SOUTH WALES, Title of the Subsidy "Major Investment Attraction 
Scheme (MIAS)" 
 
Question 3 
 
 Please provide a detailed list of the eligible industry sectors. 
 Reply 
 
 Eligible industry sectors include: 
 
 new firms establishing in New South Wales (NSW) 
 interstate and overseas firms relocating to NSW 
 firms expanding or consolidating their operations in NSW 
 large-scale infrastructure developments 
Note: This program was discontinued on 30 June 2011.   
 
Under section:  INDUSTRIES ASSISTANCE FUND, Title of the subsidy "Industries Assistance 
Fund (IAF)" 
 
Question 4  
 Please explain the limited and special circu mstances in which financial assistance is 
considered. 
 Reply 
 
 The types of financial assistance a firm may be eligible for include: 
 
 partial rebate of State taxes and charges, 
 facility establishment costs, 
 relocation costs, 
 contribution to infrastructure, 
 skills training, and 
 contributions to feasibility/technical skills. 
Note: This program was discontinued on 30 June 2011.  Financial assistance was not automatic and 
was subject to assessment procedures in place at that time. Funding determinations were made on a 
case by case basis taking into account a number of eligibility criteria including an assessment that the 
relevant investment will provide significant net ec onomic benefits (for examp le through substantial 
increases in employment and investment and the intr oduction of new technologies), be strategic for G/SCM/Q2/AUS/49 
Page 4 
 
 
  New South Wales, and result in an initiative being established in New South Wales or significantly 
expanding existing operations in New South Wales.  
 
Under section:  REGIONAL BUSINESS DE VELOPMENT SCHEME, Title of the Subsidy  
"Regional Business Development Scheme"   
 
Question 5 
  Please provide the detailed list of the eligible industry sectors. 
 
Reply 
 
 Eligible industry sectors include all industr ies with the exclusion of Basic Agriculture 
(including forestry, fishing and hunting), mining, retail, and localised trade and professional services. 
 
Note: This subsidy was discontinued on 30 June 2011.  It has been replaced by the Regional 
Industries Investment Fund.  The fund is desi gned to provide financial support for business 
investment, local infrastructure and economic deve lopment projects that are outside the Greater 
Sydney metropolitan area.  Eligible applicants in clude metropolitan, inters tate and overseas firms 
establishing in, or relocating to, regional NSW, forms in regional NSW that are expanding existing 
operations or establishing new operations, local councils, regional developm ent organisations, and 
incorporated associations (including busin ess, industry and community organisations). 
 
Under section:  BIOTECHNOLOGY INITIATIVE S, Title of the Subsidy "Biotechnology 
Initiatives" 
 
Question 6   Please provide details on the criteria a nd conditions governing the eligibility of 
enterprises.  
Reply 
  NSW-based biotechnology and agribusiness firms operating on a for-profit basis with 
significant private partnership are eligible to receive financial assistance if they meet criteria specified 
by the Department of Trade and Investment, Regi onal Infrastructure and Services (DTIRIS) (formerly 
known as Industry and Investment NSW).  Th e range of biotechnology initiatives includes: 
 Life Science Research Awards  
 The NSW Government's Life Sciences Research Awards were designed to attract outstanding life science research workers, not currently resident in NSW, to further their career in NSW.  The 
research work must have a strong translational potential in any life sciences discipline but with 
priority areas being health and the environment.  Research workers already resident in NSW are not 
eligible.  Successful applicants were c hosen through a competitive grant process. 
 Biotechnology Trade Missions & Exhibitions 
 
 This showcases innovative NSW small and medi um enterprises (SMEs) in international 
markets, to assist the company's international commercialisation activities and to promote NSW as a 
centre of innovation, via participation in inte rnational biotechnology trade missions including: 
Medica, BIO US, AusMedTech, AusBiotech.  Enterp rises eligible for funding were SMEs that had  G/SCM/Q2/AUS/49 
 Page 5 
 
 
  developed a product beyond the prototype stage.  Companies were chosen through a competitive 
Expression of Interest process.  Companies also were required to have access to matching funding. 
 
Innovation Pathways Program 
 
 This program supported the commercialisation of  research across a broad range of research 
areas and technologies including biotechnology.  The Program was designed to complement Federal 
Government commercialisation initiatives (including the R&D Tax Credit  and Commercialisation 
Australia ).  
 
 Companies were chosen through a competitiv e process.  Eligible organisations included 
researchers, start-ups and established SMEs th at were developing innovative technologies supported 
by intellectual property which were close to mark et or already had a presence in the market.   
 
 Grant applications were assessed against the fo llowing criteria, to estab lish the strength of the 
commercial opportunity, and the capability of the company to execute the opportunity: 
 
 Strength of IP (key entry criteria) 
 Level of Innovation  
 Management capability 
 Commercial opportunity 
 Product Maturity 
 Business Maturity 
 Need for Assistance 
 Outcomes of previous assistance  
 Forecast outcomes of the assistance 
Bio Agribusiness 
 
 The NSW Agricultural Genomics Centre is an unincorporated joint venture alliance between 
DTIRIS, Australian Centre for Plant Functio nal Genomics (ACPFG), and the Commonwealth 
Scientific and Industrial Research Organisation (CSIRO ). The purpose of the Centre is to build on the 
complementary strengths of the partners in rela tion to agricultural genomics through collaborative 
research. 
 
BioBusiness Proof of Concept Grants 
 
 The BioBusiness Proof of Concept Grant help ed New South Wales life science companies 
take projects from research to ear ly stage commercialisation. The program supported proof of concept 
projects to stimulate innovation and drive productivity in the life science industry. 
  The program provided grants to support NS W biotechnology and medical device companies 
undertaking proof of concept research projects of up to 2 years duration.  These projects helped 
establish the commercial potential of results from basic research programs.   
 
 Enterprises eligible for these grants were limited to only those NSW companies which 
received research commercialisation grants unde r the Commonwealth Government's Biotechnology 
Innovation Fund (BIF) program.   
 G/SCM/Q2/AUS/49 
Page 6 
 
 
  Under section:  QUEENSLAND, Title of th e Subsidy "Queensland Investment Incentives 
Scheme"   
 
Question 7 
 
 Please provide details on the criteria which determine that a project has strategic merit 
to Queensland.  
 
Reply 
  The project's net economic benefit to Queensl and will be considered; whether the project 
demonstrates commercial viability in the absence of incentives; whether it promotes the competitive 
base of the State economy; and whether a project demonstrates that there is no significant detriment to 
existing businesses in Queensland.   
 
Under section:  BUSINESS AND INDUSTRY TRANSFORMATION INCENTIVES, Title of 
the Subsidy "Business and Industry Transformation Incentives"  
 Question 8  
 Please provide a list of the key sectors supported  by this scheme and the eligible costs.  
 
Reply 
 
 Key sectors have included advanced manufactur ing, alternative fuels and environmental 
technology, biotechnology, digital economy, food, li quefied natural gas, transport and logistics, 
mining and petroleum technology and services and tourism industries. 
  The scheme adopts a flexible approach to th e types of activities it supports.  Funding for a 
broad range of activities is  considered provided those activities di rectly support the stated objectives 
of the project and are not ineligible.  Activities ine ligible for funding include planning, pre-feasibility 
and feasibility studies, individual product promotion,  provision of working capital or funds to service 
financing arrangements, propert y development, building constr uction and land purchase, offshore 
investment and production and routine operations.  It  may, for example, provide funding for specialist 
training equipment and related software. 
 
Under section:  REGIONAL QUEENSLAND INVESTMENT INCENTIVES SCHEME, Title of 
the Grant Scheme "Regional Queensland Investment Incentives Scheme"  
  Question 9 
 
 Please provide details on the criteria which determine that a project has strategic merit 
to Queensland.  
 
Reply 
 
 No further information is available to that provided in the notification. 
  G/SCM/Q2/AUS/49 
 Page 7 
 
 
  Under section:  SMART MINING – FUTURE  PROSPERITY PROGRAMME,  Title of the 
Grant Scheme "Smart Mining – Future Pros perity Programme grant initiative"   
 
Question 10 
 
 Please provide the assessment criteria. 
 
Reply 
 
 The assessment criteria include: 
 
 Proposals should have demonstrable economic  and technical merit such as potential for 
discovery; likelihood of development if discoveries are made; sufficient supporting 
evidence including geological plans and documented regional and local geological 
context of concepts including previous exploration in the project area. 
 Proposals should be innovative and address significant knowledge gaps in key areas. 
 Proposals should have the potential to increase exploration activity in under-explored 
areas or increase exploration investment in Queensland. 
Under Section:  VICTORIA, INVESTMENT SUPPORT PROGRAMME, Title of the subsidy 
Investment "Support Programme" 
 
Question 11 
 
 Please specify the Government's policy object ives with which businesses should align in 
order to be eligible.  
Reply 
 
 The Investment Support Program (ISP) is aime d at market-driven activity with the purpose of 
promoting Victoria as a location for investment by the private sector, and attracting investment into 
Victoria through the Victorian Government's investment attraction and facilitation services. 
 
Question 12 
  Please provide details about the form of the subsidy and the criteria upon which it is 
determined per case.  
Reply 
  The form of the subsidy is a grant.  The key criteria for approval of an ISP grant is that a 
project is footloose and can demonstrate a net benefit to the Victorian economy.   
Question 13 
  Please provide the eligibility criteria. The fact  that the main sectors facilitated by the 
programme over the two reporting years were ICT,  Automotive and defence suggests that this 
scheme is limited by definition to these secto rs, or is it open to all sectors of economy? 
 G/SCM/Q2/AUS/49 
Page 8 
 
 
  Reply 
 
 The ISP is open to companies from all sectors.  
 Under section:  VICTORIAN AUTOMOTIVE MANUFACTURING ACTION PLAN 
(VAMAP), Title of the subsidy "Victorian Automotive Manufacturing Action Plan (VAMAP)" 
 Question 14   Please provide the objective criteria a nd conditions governing the eligibility of 
enterprises.  
Reply 
  The Victorian Automotive Manufacturing Plan (VAMAP) is available for Victorian based 
companies with a project that demonstrates a cont ribution to the Victorian automotive industry, the 
economy and the applicant's economic sustainability.  The applicant must also demonstrate that it has 
the financial and human resources to complete the project and that the project adds value to the 
industry.     
 
Under section:  COMMUNITY REGIONAL INDUSTRY SKILLS PROGRAMME (CRISP), 
Title of the subsidy "Community Regi onal Industry Skills Programme (CRISP)" 
 
Question 15 
 
 Please provide the objective criteria a nd conditions governing the eligibility of 
enterprises. 
 
Reply 
 
 The Community Regional Industry Skills Program (CRISP) is a key component of the 
Victorian Government's commitment to promoti ng employment growth a nd economic development 
across Victoria.  CRISP aims to contribute to generating industry development, new jobs and 
improved services for rural and regional communities. 
 To be eligible for CRISP - Business funding applicants should:  
 
 be able to articulate the particular skills need  they have identified and the impact this is 
having on the viability of the company; 
 provide full details (including costs) of the pr oject for which the applicant is seeking funding;  
 detail the benefits to the company from undertaking the project and addressing the skills need;  
 have a demonstrated track record of support for the training of employees. 
 
Eligible CRISP - Business projects may include, but are not limited to: 
 
 training for new staff employed by companies expanding existing operations;  
 training for staff (existing or new) employed  by companies seeking to invest in a new 
enterprise in a region;   G/SCM/Q2/AUS/49 
 Page 9 
 
 
   training for existing staff employed by companies who have identified a skills shortage 
impeding expansion and/or affecting company viability;  
 skills sharing - where existing employees or others with identified expertise are able to 
transfer their skills to other employees;  
 assisting the relocation of qualified staff to fill a gap identified by an enterprise. 
Under section:  LINKING FARMS AND CATCHMENTS WITH IRRIGATION 
MODERNISATION INITIATIVE, Title of the Subs idy "Linking Farms and Catchments with 
Irrigation Modernisation Initiative" 
 
Question16 
 
 Please provide details about the form of the subsidy (level of grants per project, eligible 
expenses, etc). 
 Reply 
 
 The Linking Farms and Catchments with Irrigation Modernisation Initiative provides grant 
funding to eligible farmers, farm businesses and irrigators.   
 Eligible activities include:  
 
 Engaging irrigators and catchment managers in  the modernisation process to understand how 
farm businesses will be affected.   
 Ensuring farming and catchment communities are active participants in program design and 
delivery to ensure that solutions to connect farms to the delivery system backbone promote 
private investment on farm that will increase productivity and resilience in a drier water 
future.   
 Actively working with designers of infrastructure programs to advise how modernised 
infrastructure can be constructed in a manner th at suits short to medium term farm service 
needs, and is flexible enough to adapt to a ra nge of uncertain longer term service needs.  
 Designing new tools, instruments and approach es that will enable the accelerated level of 
farm change required to meet modernisation objectives.   
 Enhancing irrigator business decisions by prov iding access to these support mechanisms, e.g. 
grants for financial and business ma nagement advice and farm planning. 
The program concluded in June 2012. 
 
Under section:  REGIONAL TOWARDS ZERO WASTE SUPPORT PROGRAM, Title of the 
Subsidy "Regional Towards Zero Waste Support Program" 
 Question 17 
 
 Please provide details about the form of the subsidy (level of grants per project, eligible 
expenses, etc). G/SCM/Q2/AUS/49 
Page 10 
 
 
  Reply 
 
 Document G/SCM/N/220/AUS/Rev.1 provided de tails of the total expenditure and the 
number of firms which received grants.  These figures were further broken down indicating the 
numbers of private firms, regional waste manageme nt groups and local governments which received 
funding.   
 The Regional Towards Zero Waste Support Program provides financial support to projects 
that increase the recovery of waste from the munici pal and household sectors in regional and rural 
Victoria.   
 To be eligible for funding, projects must: 
 Be consistent with Victoria's Towards Zero Waste Strategy. 
 Be consistent with the RWMG business plan  and waste management plan strategic 
directions/objectives. 
 Have a comprehensive budget and a clear timetable for implementation of the project. 
 Be signed off by the lead organisation's CEO or  delegated authority w ho will be responsible 
for ensuring the project is completed on time and to budget.  
 Be consistent with industry best practice st andards or requirements, including those for 
occupational health and safety, environmen t protection (EPA Victoria requirements), 
planning and building requirements. 
 Be consistent with Sustainability Victoria's Guide to Best Practice at Resource Recovery 
Centres when seeking funding for infrastruct ure and Sustainability Victoria's Away from 
Home Signage Guide when seeking funding for PPR and events. 
 Demonstrate how the project will be evaluated. 
 Incorporate a behaviour change strategy for each of the priority areas addressed. 
Under section:  CLEAN TECHNOLOGY INVESTMENT, Title of the subsidy "Clean 
Technology Investment"   
 
Question 18 
 
 Please provide the list of the target secto rs together with the eligibility criteria and 
automatic selection procedure of the scheme. 
 Reply 
 
 The target sectors were included in the tabl e in the notification (G/SCM/N/220/AUS/Rev.1).  
On the eligibility criteria and automatic selection pr ocedure, no information is available.  This 
program ceased in 2009/2010.    
 
__________