WORLD TRADE              
ORGANIZATION  G/AG/N/AUS/59 
23 May 2005 
 (05-2083) 
Committee on Agriculture Original:   English 
  
 
NOTIFICATION  
 
  The following submission, dated 11 May 2005, is  being circulated at the request of the 
Delegation of Australia .  The notification concerns new or modified domestic support measures 
exempt from reduction ( Table DS:2 ). 
 G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   Rural Chemicals Program  
(2) Domestic legislation:   Agricultural and Veterinary Products (Control of Use) Act 
2002 (South Australia) 
(3) Detailed description of measure with reference to criteria:    
The objective of this programme is to provide inspection, extension and advisory services for 
the management of pesticide and veterinary medi cine risks in animal and plant industries.  
The programme is exempt from the reduction co mmitment consistent w ith paragraph 2(e) – 
inspection services – of Annex 2 of the Agreement on Agriculture.   
(4) Cost of measure:   $A790,000 
(5) Date of entry into effect:   29 August 2002 
(6) Period of application:   Ongoing 
(7) Products to principally benefit (if any individual product(s)):  
This measure is non-product-specific. 
   G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   Dry Season 2002 Assistance Scheme 
(2) Domestic legislation:   Nil 
(3) Detailed description of measure with reference to criteria:   
Assistance is available to Western Australian farm ers and pastoralists severely affected by the 
drought of 2002.  Drought-affected farmers received fodder freight subsidies and assistance 
with the re-development of feedlot infrastructur e.  The Western Australian (WA) Government 
also provided assistance for dam and pipe repa irs. The nature of the assessment process 
imposes rigorous tests to determine that the impa ct of the drought.  Farmers must meet strict 
loss criteria and must meet a strict income and asset test.  Farmers must also demonstrate they were not in receipt of Commonwealth Exceptional Circumstances (EC) drought relief payments.  
 
This programme is exempt from reduction commit ments consistent with  paragraph 8 – relief 
from natural disasters – of Annex 2 of the Agreement on Agriculture.  
(4) Cost of measure:   $A0.676 million 
(5) Date of entry into effect:   8 November 2002 
(6) Period of application:   31 July 2003  
(7) Products to principally benefit (if any individual product(s)):  
This measure is non-product-specific. 
   
 
   G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   2004 Pastoral Dry Season Assistance Scheme 
(2) Domestic legislation:   Nil 
(3) Detailed description of measure with reference to criteria:   
 
Pastoral dry season assistance relief is only ava ilable to pastoralists who fall within the 
Commonwealth Government's declaration of 'E xceptional Circumstance s' (EC) areas for 
severe droughts.  The nature of the assessment process imposes rigorous tests to determine 
that the impact of the event on production is rare, severe and prolonged.  This assistance programme was developed in response to prol onged dry conditions across a wide area of the 
southern rangelands since 2001 and with the dry seasons continuing into the fourth consecutive year, the Western Australian (WA) Government provided further assistance to 
pastoralists falling within the EC-declared ar eas.  Drought-affected pastoralists received 
assistance for their pastoral lease rents and agriculture protection rates.  
 To be eligible for assistance, fa rmers need to obtain a certificate demonstrating that they fall 
within a declared EC area and they must meet a strict income and assets test.  
 
This programme is exempt fro m reduction commitments consiste nt with paragraph 8 – relief 
from natural disasters – of Annex 2 of the Agreement on Agriculture.  
(4) Cost of measure:   $A26,536 
(5) Date of entry into effect:   May 2004 
(6) Period of application:   30 September 2004 
(7) Products to principally benefit (if any individual product(s)):   
 This measure is non-product-specific. 
  G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   Fire Recovery Assistance Scheme 
(2) Domestic legislation:   Nil 
(3) Detailed description of measure with reference to criteria:   
 This assistance programme was developed in r esponse to the emergency situation declared by 
the Western Australian (WA) Government following the December 2003 and February 2004 
wild fires.  Assistance was provided to farm  families and farm businesses seriously affected 
by the fires.  Fire-affected families received livestock freight subsidies to assist with the 
transportation of livestock off fire-damaged pr operties for agistment (that is, the grazing of 
livestock on land controlled by a nother person for the payment of a fee either in cash or in 
kind).  The WA Government also provided farm management assistance to fire affected farm 
businesses to engage financial advice on business options arising from fire-related issues. 
 The programme is exempt from reduction commitm ents consistent with  paragraph 8 – relief 
from natural disasters – of Annex 2 of the Agreement on Agriculture. 
(4) Cost of measure:  $A29,821 
(5) Date of entry into effect:   31 December 2003 
 
(6) Period of application:   31 July 2004 
 (7)  Products to principally benefit (if any individual product(s)):  
 
This measure is non-product-specific.  
 
 
 G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   Sugar Industry Reform Program (SIRP) 2004 – Decoupled 
Income Support 
(2) Domestic legislation:   Nil 
(3) Detailed description of measure with reference to criteria:   
The package was provided in r esponse to the serious economic difficulties facing the sugar 
industry.  There are two components to assist  eligible growers, harvesters and farming 
families most in need.  The first component comprises welfare payments available to help 
sugar producers meet their living expenses.  Th e second component is designed to sustain the 
industry toward further reform in recognition of the need for structural change.  This 
comprises one-off grants for cane growers and sugar mills. 
a) Eligibility criteria:  
 
To be eligible for income support payments, the recipient must have been a sugar cane 
producer for two years prior to lodging the claim.   The recipient must also have a right or 
interest in the land used for the purpose of a sugar industry enterprise and must meet two of 
the following criteria:  
 (i) have a right or interest in the land used  for the purpose of a sugar industry enterprise; 
 (ii) contribute a significant part of labour and capital to the sugar industry enterprise;  (iii) derive a significant part of inco me from the sugar industry enterprise. 
 
To receive the welfare payment, the recipient mu st also undergo strict income and asset tests, 
consistent with those of the Newstart Allo wance (the Australian unemployment benefit).  
 
To be eligible to receive the one-off grant to  assist with the transition phase toward reform, 
growers and mills have to satisfy strict eligib ility criteria and must certify that reform will be 
undertaken, including through the development of regional plans.  
  b), c) and d)    Basis of Payments:  
 
For the first component, payments are made at a set rate equivalent to the Newstart allowance 
plus rent assistance (where applicable), and ar e assessable for income tax purposes.  Payments 
are not conditional on production, pr ices, or factors of production. 
 
For the second component, eligibility to receive  assistance for the transition phase toward 
reform is based on average production levels determined prior to the scheme’s announcement 
(2001, 2002, 2003 seasons).  
  G/AG/N/AUS/59 
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  (e) Production requirement:   
   
 No specified level of production is required to qualify for the payment.  
 
This programme is exempt from the reduction commitment consistent with paragraph 6 – 
decoupled income support - of Annex 2 of the Agreement on Agriculture.   
(4) Cost of measure:   $A167.1 million  
(5) Date of entry into effect:   2 March 2004 
(6) Period of application:   30 June 2005 
(7) Products to principally benefit (if any individual product(s)): Sugar 
 
    
 
   G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   Sugar Industry Reform Program (SIRP) 2004 – Exit 
Assistance  
(2) Domestic legislation:   Nil 
(3) Detailed description of measure with reference to criteria:   
 
The Sugar Industry Reform Program (SIRP) 2004 – Exit Assistance progr amme assists cane 
growers and harvesters who are in financial difficulty to exit the industry.  
 For sugar cane growers, one-off grants are ava ilable to growers for three years on a sliding 
scale:  
• Up to $A100,000 until 30 June 2005; 
• Up to $A75,000 from 1 July 2005 to 30 June 2006; 
• Up to $A50,000 from 1 July 2006 to 30 June 2007. 
 
To receive a payment, the producer must also have disposed of their sugar terminal and mill shares and are subject to an assets test and not be in receipt of or have applied for a grant 
under a similar programme. 
 One-off grants of up to $50,000 for sole harv esters are available for three years.  To be 
eligible to receive exit assistance, the sugar harv ester must sell their sugar industry enterprise.  
To receive a payment, the harvester must also me et an assets test and not be in receipt of or 
have applied for a grant under a similar programme.  
 
This programme is exempt from the reduction commitment consistent with paragraph 9 – 
structural adjustment assistance provided through producer retirement programmes – of Annex 2 of the Agreement on Agriculture.  
(4) Cost of measure:   Up to $A96 million over three years.   
(5) Date of entry into effect:   29 April 2004  
(6) Period of application:   29 April 2004 to 30 June 2007 (applications close on 
30 June 2006). 
(7) Products to principally benefit (if any individual product(s)): Sugar  G/AG/N/AUS/59 
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 Table DS:2 
DOMESTIC SUPPORT: Australia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
(1) Full title of measure:   Sugar Industry Reform Program (SIRP) 2004 – Business 
Planning and regional/community projects program 
(2) Domestic legislation:   Nil 
(3) Detailed description of measure with reference to criteria:   
To assist eligible sugar growers, harvesters and farming families facing serious financial 
difficulties by providing business planning an d regional/community project support.  
Specifically, assistance is available to eligible  cane growers and harvesters to obtain advice 
and/or training to develop business plans to ensure they fully assess their situation and can 
better position their operation for the future or consider alternatives outside the industry.  
Assistance is also available for the development and implementation of activity plans and projects to improve future enterprise viability.  
 
To be eligible for assistance, the recipient must  have been a sugar cane producer for two years 
prior to lodging the claim.  The recipient mu st also meet two of the following criteria: 
 (i) have a right or interest in the land used fo r the purpose of a sugar industry enterprise; 
(ii) contribute a significant part of labour and capital to the sugar industry enterprise; 
(iii) derive a significant part of income from the sugar industry enterprise; 
(iv) devote the majority of the enterprise's  cultivated area to cane production.  
 
Assistance of up to $A2,500 is available to gr owers and harvesters who are the recipients of 
low income support, while assistance of up to $A 1,500 is available to all other growers and 
harvesters.  Assistance of up to $A100,000 pe r mill for business planning is available for 
cooperative and single site mill businesses.   Eligibility for regional and community project as sistance is determined on a competitive basis 
and must be consistent with agreed reform pr iorities.  Assistance is available for projects 
pursuing options for diversification and alte rnative uses for cane, such as ethanol and 
biofuels, co-generation and bio-plastics.  
 No specified level of production is required to qualify for the payment.   This programme is exempt from the reduction commitment consistent with paragraph 5 – 
direct payments to producers - of Annex 2 of the Agreement on Agriculture.   
(4) Cost of measure:   $A90.2 million over 3 years.  G/AG/N/AUS/59 
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 (5) Date of entry into effect:   2 March 2004 
(6) Period of application:   30 June 2007 
(7) Products to principally benefit (if any individual product(s)): Sugar 
  
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