WORLD TRADE  
ORGANIZATION  G/SCM/Q2/AUS/42 
21 April 2010 
 (10-2050) 
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 31 March 2010, is being circulated at the request of the Delegation of Australia.   
_______________ 
 
 
V. Passenger Motor Vehicles 
 A. Automotive Competitiveness and Investment Scheme (ACIS)  
 According to the notification, there will be  additional one-off assistance in 2010 to 
vehicle producers through ACIS.     Could Australia already indicate the bene ficiaries of this program and the amount 
intended to be provided to them and the eligibility criteria?   
 
Reply
 
  The ACIS Administration Act 1999  (the Act), which governs the administration of ACIS, was 
amended in 2009.    
 To smooth the transition from ACIS to the Automotive Transformation Scheme (commencing 
on 1 July 2010), the Australian Government will pr ovide an estimated A$79.6 million in additional 
ACIS assistance for production undertaken in 2010.     ACIS is a demand driven entitlement scheme.  There are approximately 200 companies 
involved in the automotive and automotive component suppliers sector.   
 
IV. Innovation 
 A. Commercial ready 
 
 The programme aimed to encourage successful  innovation by increasing the level of 
research and development, proof-of-concept and early stage commercialisation by Australian 
businesses, increase the international compet itiveness of Australian businesses and foster 
greater collaboration among indus try and research institutions.   
                                                     
 
1 G/SCM/Q2/AUS/40.   
2 G/SCM/N/186/AUS.   G/SCM/Q2/AUS/42 
Page 2  
 
   
 Could Australia please elaborate on the eligibility criteria of this programme?  To what 
industry sectors was the subsidy provided in the reporting period?  
 
Reply
 
 
 Commercial Ready was a competitive grants program that opened to applicants on 1 October 2004, and closed to new applicati ons on 28 April 2008.  The program was open to 
applicants from all industry sectors. Grants were re warded competitively on the basis of eligibility and 
merit.   
 
Commercial Ready provided two types of grants:  
 
• Commercial Ready grants of A$250 001 to $5 million for projects of up to three years in 
duration;  and 
• Commercial Ready Plus grants of A$50 000 to $ 250 000 for projects of up to 18 months duration 
for small and medium businesses and companies controlled by universitie s and public sector 
research organisations.    
 
To be eligible for a Commercial Re ady grant, an applicant had to: 
 
• be a non tax-exempt company incorporated under the Corporations Act 2001 ;  
• have combined turnover (including each relate d body corporate) of less than A$100 million for 
each of the three financial years prior to lodgement of the application; 
• be able to demonstrate it could fund the costs of the project not met by the Commercial Ready 
grant; and  
• have access to, or the beneficial use of, any in tellectual property necessar y to carry out and/or 
commercialise the project.  
 
To be eligible for a Commercial Ready Plus grant, an applicant had to:  
 
• either be a non-tax exempt company incorporated under the Corporations Act 2001 or an 
individual who warranted in the application to form such a company to sign a grant agreement 
and undertake the project if offered assistance; 
• have combined turnover (including each relate d body corporate) of less than A$100 million for 
each of the three years prior to lodgement of the application: 
o except for companies controlled by an Aust ralian university or public sector research 
organisation, in which case turnover (not in cluding that of related bodies) had to be 
less than A$100 million for each of the three years prior to the lodgement of the 
application; 
• be able to demonstrate it could fund the cost of the project not met by the Commercial Ready 
Plus grant; and  
• have access to, or the beneficial use of, any in tellectual property necessar y to carry out and/or 
commercialise the project.  
 
Applications were then assessed by the I nnovation Australia Board against the following 
equally weighted merit criteria:  
 
1. Management capability; 
2. Project commercial potential; 
3. Project technical strength (including technical capability of the applicant); 
4. Project national benefits;  and  G/SCM/Q2/AUS/42 
 Page 3 
 
 
  5. Need for funding.   
 
The merit criteria was deliberately broad, to en able support to be delivered to a broad base of 
industry with diverse needs.   
The industry sectors that submitted successful applications during the reporting period 
2007-08 are below. There were no new applica tions in 2008-09 as the program ended on 
28 April 2008.  
SECTOR (Australian and New Zealand St andard Industrial Classification)  
 
Agriculture, Forestry and Fishing Mining Manufacturing Electricity, Gas, Water and Waste Services 
Construction 
Wholesale Trade Retail Trade Information Media and Telecommunications Financial and Insurance Services Professional, Scientific and Technical Services 
Education and Training 
Health Care and Social Assistance 
 
B. Climate ready 
 
 The programme seems to be similar to th e programme "Commercial ready" but is 
narrowed down to Australian busin esses that address the effects of climate change and is aimed 
at increasing the international competitiveness  of Australian businesses. Grants are awarded 
competitively on the basis of eligibility and merit criteria.     Could Australia explain the procedure it follo ws for competitively awarding the grant?  
What eligibility and merit criteria need to be  met to be eligible for this programme?   
 
Reply
 
 
 To be eligible for a large Climate Ready grant (A$500 001 to $5 million), applicants had to:   
 
• be a non-tax exempt company incorporated under the Corporations Act 2001 ;  and 
• have a combined annual turnover (including each  related body corporate) of less than 
A$100 million in each of the three financial year s before the financial year in which the 
application was lodged.  
 
To be eligible for a small Climate Ready gran t (A$50 000 to $500 000), applicants had to:   
 
• either be a non-tax exempt company incorporated under the Corporations Act 2001  or an 
individual who warranted in the application to form such a company to sign a grant agreement 
and undertake the project if offered assistance;  and 
• have a combined turnover (including each relate d body corporate) of less than A$100 million in 
each of the three financial years prior to lodgement of the application:   
o except for companies controlled by an Aust ralian university or public sector research 
organisation, in which case turnover (not in cluding that of related bodies) had to be G/SCM/Q2/AUS/42 
Page 4  
 
  less than A$100 million for each of the three years prior to the lodgement of the 
application.   
An eligible applicant also had to prove:   
 
• it owned, or had beneficial access to, all in tellectual property needed to undertake and/or 
commercialise the project; and 
• it could fund its share of project costs without relying on any other government grants.  
 
Applications were then assessed by the I nnovation Australia Board against the following 
equally weighted merit criteria:    
1. Management capability 
2. Project commercial potential 
3. Project technical strength (including technical capabilities) 
4. Project national benefits 
5. Impact of funding on project outcomes. 
 
The merit criteria was deliberately broad, to en able support to be delivered to a broad base of 
industry with diverse needs.   
Climate Ready consisted of four funding Rounds , each with a closing date for applications.  
Eligible applicants completed an application form  describing the planned outcomes of the project and 
addressing the merit criteria.  
 
Applications were assessed by the Board of Innovation Australia or its delegates (the Climate 
Ready Committee) on a competitive basis.    
Recommendations regarding successful projects we re approved by the Program Delegate, an 
employee of the Department of Innovation, Industry, Science and Research authorised by the Minister 
of Innovation, Industry, Science and Research, (or ot herwise authorised) to carry out that function.   
 
The Industry Research and Development Act 1986  (which underpins the Climate Ready 
Program) prevented the Minister, or his advisers, fro m being involved in the consideration of funding 
assistance for applications under this program.   
  
 
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