WORLD TRADE  
ORGANIZATION  G/SCM/N/123/AUS 
12 September 2005 
 
 (05-3955) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
  
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of
 
the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
AUSTRALIA 
 
 
 The following communication, dated 6 September 2005, is being circulated at the request of 
the Delegation of Australia.  
_______________ 
  
 The following notification provides details on federal and state pr ogrammes for financial 
years (FY) 2003/2004 and 2004/2005 (the fiscal year bei ng from 1 July to 30 June).  In some cases, it 
is arguable whether these programmes are specific w ithin the meaning of the Agreement on Subsidies 
and Countervailing Measures.  However, these have been included for the sake of transparency and 
without prejudgement of the legal status, effects or  the nature of the measures under the Agreements.   
  
TABLE OF CONTENTS 
 
FEDERAL PR OGRAMMES............................................................................................................. ...3 
I. BOOKS .......................................................................................................................... ............3  
II. DAIRY .......................................................................................................................... .............4  
III. INNOVATION ..................................................................................................................... .....5 
IV. INVEST AUSTRALIA .............................................................................................................8  
V. PASSENGER MOTOR VEHICLES ....................................................................................10  
VI. PHARMACEUTICALS .........................................................................................................11  
VII. REGIONAL DEVELOPMENT ............................................................................................13  
VIII.  SHIPBUILDING................................................................................................................... ..14 
IX. SUGAR .......................................................................................................................... ..........16  
X. TEXTILES, CLOTHING & FOOTWEAR..........................................................................17  
XI. WHEAT .......................................................................................................................... .........20  
SUB-FEDERAL PROGRAMMES.....................................................................................................21  G/SCM/N/123/AUS 
Page 2  
 
 I. AUSTRALIAN CAPITAL TERRITORY............................................................................21  
II. NEW SOUTH WALES...........................................................................................................22  
III. NORTHERN TERRITORY ..................................................................................................24  
IV. QUEENSLAND..................................................................................................................... ..25 
V. SOUTH AUSTRALIA............................................................................................................27  
VI. TASMANIA....................................................................................................................... ......29  
VII. VICTORIA ....................................................................................................................... .......30  
VIII.  WESTERN AUSTRALIA......................................................................................................31  
  G/SCM/N/123/AUS 
 Page 3 
 
 
  
FEDERAL PROGRAMMES  
I. BOOKS 
1. Title of the Subsidy  
 
 Enhanced Printing Industry Competitiveness Scheme (EPICS) 
 2. Period covered by the notification
 
  Financial year 2003/2004.  The scheme ceased on 30 June 2004. 
 
3. Policy objective and/or purpose of the subsidy
 
  The scheme was designed to encourage the development of the Australian book production 
industry by providing grants that encourage i nnovation, business developmen t and skills formation. 
 
4. Background and authority of the subsidy
 
  The Appropriation (Supplementary Measures)  Act (No.1) 1999 enacted in November 1999 
provided authority for the scheme. It was administer ed by the Department of Industry, Tourism and 
Resources. 
 
5. Form of the subsidy
 
  Under the scheme, grants were awarded compe titively on the basis of eligibility and merit 
criteria to projects which best met the objectives of the scheme. 
 
6. To whom the funding was provided
 
  Funding was available to firms involved in  the book production process as well as to 
associated industry, research and educational bodi es.  Approximately 179  book production firms 
qualified for assistance, with other firms in the suppl y/value chain benefiting from participation in the 
projects awarded grants under the scheme.   
 7. Level of subsidy per unit
 
  The budget outlay for financial year 2003/2004 was $A11.4 million. 
 
8. Duration
 
  The scheme operated from 1 July 2000 to 30 June 2004. 
 9. Statistical data permitting an assessment of the trade effects
 
 
 The bulk of book production was destined for the domestic market.   G/SCM/N/123/AUS 
Page 4  
 
 II. DAIRY 
1. Title of the subsidy
 
  Dairy Industry Adjustment Package (DIAP)  
2. Period covered by the notification
 
  Financial years 2003/04 and 2004/05  3. Policy objective and/or purpose of the subsidy
 
 
 The DIAP is designed to facilitate adjustment in the dairy industry, as a result of complete 
deregulation of the milk market sector.  4. Background and authority for the subsidy
 
 
 The Australian Government’s DIAP was develope d to assist the dairy industry adjust from the 
previous State-regulated drinking milk arra ngements to a commercially driven system.  
  The DIAP includes:  Dairy Structural Adjustment Programme (D SAP), providing $1.63 billion in payments 
 Supplementary Dairy Assistance (SDA), providing an additional $139 million in payments; 
  The DIAP was introduced from the beginning of the 2000/01 financial year to assist farmers adjust to the new commercial conditions.  
 Payments are administered to eligible dair y farmers by the Dairy Adjustment Authority 
(DAA) which was established under the Commonwealth  Government’s Dairy Industry Adjustment 
Act 2000.  5. Form of the subsidy
 
 
 The assistance is provided as a Government grant to eligible dairy producers.  There is no 
obligation for dairy producers to continue in the industry.   Payment eligibility is based on market milk de liveries during 1998/99, and is paid quarterly 
over eight years beginning with the 2000/2001 financial year.  
 
6. To whom the funding is provided
 
  Funding is provided to eligible dairy producers based on market milk deliveries during 1998/99.   
7. Level of subsidy per unit
 
  Cost per unit value has not been provided as the financial assistance is based on historical 
milk production levels and is not re lated to production in the current or  future years.  An assessment 
of cost per unit is therefore an inappropriate measure of assistance in this case. 
 
8. Duration
 
  From 8 July 2000 for a period of eight years  G/SCM/N/123/AUS 
 Page 5 
 
 
  
9. Statistical data permitting an assessment of the trade effects  
 
Year Milk Production 
(million litres) Total product Specific 
AMS (A$ million) 
2003/04 10 075 207.77 
2004/2005 N.A. N.A 
 
 
III. INNOVATION 
(a) Biotechnology Innovation Fund 
 1. Title of the Subsidy
 
  Biotechnology Innovation Fund (BIF)  
2. Period covered by the notification
 
  Financial years 2003/2004 and 2004/2005.  3. Policy objective and/or purpose of the subsidy
 
 
 The BIF fund aimed to increase the rate of  commercialisation of promising biotechnology 
developed in Australia by helping companies to move their projects beyond the research stage and 
into early commercialisation.  It provided financia l assistance to companies to demonstrate proof-of-
concept between the initial resear ch stage of a biotechnology project and the early stage of its 
commercialisation. 
 4. Background and authority of the subsidy
 
 
 Ministerial Directions under the Industry Research and Development Act 1986.  Current 
Ministerial Directions issued in 2002. 
5. Form of the subsidy  
  Under the scheme, grants were awarded compe titively on the basis of eligibility and merit 
criteria of projects which best met the objectives of the scheme.   
6. To whom the funding was provided
 
  Funding was provided to biotechnology compani es for costs associated with demonstration of 
proof of concept stage of projects.  7. Level of subsidy per unit
 
 
 The total value was $40 million for the life of th e programme.  Grants were limited to 50% of 
eligible project costs up to a maximum of $250,000 per project.   The budget outlay for the financial year  2003/2004 was A$13.4 million (129 projects 
assisted) G/SCM/N/123/AUS 
Page 6  
 
 8. Duration
 
  Commenced on 1 July 2001 and the final round closed in July 2004.  This programme has been replaced by the Commercial Ready Programme.  
9. Statistical data permitting an assessment of the trade effects
 
  Not known  (b) Commercial Ready Programme 
 
1. Title of the Subsidy
 
  Commercial Ready Programme  
2. Period covered by the notification
 
  Financial years 2003/2004 and 2004/2005.  3. Policy objective and/or purpose of the subsidy
 
 
 The programme aims to encourage successful innovation by increasing the level of research 
and development, proof-of-concept and early st age commercialisation by Australian businesses, 
increase the international comp etitiveness of Australian businesses a nd foster greater collaboration 
between industry and industry and research institutions.  
4. Background and authority of the subsidy
 
  Ministerial Directions and Guidelines issued  by the Minister for Industry, Tourism and 
Resources in August 2004.  The programme w as officially launched on 1 October 2004.  
 5. Form of the subsidy
 
 
 Under the scheme, grants are awarded compe titively on the basis of eligibility and merit 
criteria of projects which best meet the objectives of the scheme.   6. To whom the funding was provided
 
 
 Funding is provided to companies undertaki ng research and development, proof-of-concept 
and/or early stage commercialisation activities.  7. Level of subsidy per unit
 
 
 The total value is $1.4 billion for the life of the programme.  Grants are limited to 50% of 
eligible project costs up to a maximum of $5,000,000 per project.   The budget outlay for the financial year  2004/2005 was $A152.1 million (568 projects 
assisted). 
 
8. Duration
 
  Commenced on 1 October 2004 and finishes on 30 June 2011.   G/SCM/N/123/AUS 
 Page 7 
 
 
 9. Statistical data permitting an assessment of the trade effects  
  Not known.  (c) Industry Cooperative Innovation Programme (ICIP) 
 
1. Title of the Subsidy
 
  Industry Cooperative Innovation Programme (ICIP)  
2. Period covered by the notification
 
  Financial years 2003/2004 and 2004/2005  3. Policy objective and/or purpose of the subsidy
 
 
 The programme is aimed at encouraging business-to-business cooperation on innovation 
projects that enhance productivity, growth and competitiveness in Australian industries.  
 4. Background and authority of the subsidy
 
 
 Ministerial Directions and Guidelines issued  by the Minister for Industry, Tourism and 
Resources in May 2005.  The programme w as officially launched on 2 June 2005. 
 5. Form of the subsidy
 
 
 Under the scheme, grants will be awarded for eligible applications which are ranked as highly 
competitive in terms of merit criteria which reflect the objectives of the scheme.  6. To whom the funding was provided
 
  Programme commenced at end of 2004/2005 financial year with the first round of 
applications to close on 25 August 2005.  No grants have yet been awarded. 
 7. Level of subsidy per unit
 
  The total value is $25 million for the life of  the programme, June 2005–June 2011.  There are 
two streams of assistance, with Stream A grants limited to 50% of eligible project costs up to 
$150,000 and Stream B grants limited to 50% of eligible project costs up to $3,000,000.  8. Duration
 
  June 2005–June 2011   
9. Statistical data permitting an assessment of the trade effects
 
  Not known .  G/SCM/N/123/AUS 
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IV. INVEST AUSTRALIA 
(a)  Invest Australia: Strategic Investment Incentives 
 1. Title of the subsidy
 
 
 Invest Australia:  Strategic Investment Incentives  2. Period covered by the notification
 
 
 Financial year 2003/2004 and financial year 2004/2005. 
 3. Policy objective and/or purpose of the subsidy
 
  The Australian Government will consider the pr ovision of investment incentives to strategic 
investment projects in limited and special circumst ances where the project would generate significant 
net economic and employment benefits for Australia.    4. Background and authority for the subsidy
 
  Invest Australia is the Government’s investme nt agency which was established in 1997 and is 
located in the Department of Industry, Tourism a nd Resources.  The Strategic Investment Coordinator 
advises the Australian Government Cabinet, through the Prime Minister, on the possible use of incentives for strategic investment projects.  Incen tives for major investment projects are considered 
in limited and special circumstances and on a case by case basis, taking into account a published set of 
criteria.  The criteria include a requirement that the investment would not be likely to occur in 
Australia without the incentive, is viable wit hout subsidy, and provides significant net economic 
benefits for Australia (see G/SCM/Q2/AUS/20 of 13 August 2001).  Funding is allocated through the 
Budget Appropriation Bills in relevant years.  5. Form of the subsidy
 
 
 Incentives could include grants, tax relief or th e provision of infrastructure services such as 
roads, water supply, gas supply and power generation distribution.  6. To whom and how the subsidy is provided
 
 
 One project was provided in principle assist ance during financial year 2003/2004.  The 
project related to multi-user infrastructure for a meth anol plant.  However, this offer has since been 
withdrawn as the project did not proceed.   One project was provided in principle assist ance during financial year 2004/2005.  The 
project related to enhancing skills  development and technology diffus ion within Australia’s aerospace 
industry. 
 7. Level of subsidy per unit
 
  No assistance has been prov ided for the financial years 2003/2004 or  2004/2005.   
  G/SCM/N/123/AUS 
 Page 9 
 
 
 8. Duration of the subsidy  
  The programme commenced in December 1997.  It as an ongoing programme.  The assistance 
is only in limited and special circumstances for strategic investment projects.  
9. Statistical data permitting an assessment of the trade effects
 
  Not known.  (b)  Structural Adjustment fund for South Australia 
 
1. Title of the Subsidy
 
  Structural Adjustment Fund for South Australia (SAFSA) 
 
2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005.  – Programme opened in July 2004 
and applications close on 30 June 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the SAFSA is to support invest ment that will create sustainable new jobs in 
South Australia with a focus on the Adelaide area and particularly the southern districts of Adelaide.  
The investment could be in a new facility or add itional capacity that would enhance competitiveness.  
It is not intended to support infrastructure invest ment through the Fund except that which might be 
incidental to the new facility. 
  Projects which result in new jobs in South Au stralia at the expense of jobs elsewhere in 
Australia will not be favoured.  4. Background and authority of the subsidy
 
 
 The Structural Adjustment Fund gives effe ct to the Prime Minister’s announcement of 
21 May 2004 of a Federal Assistance Package for South Australia.  The project operates under 
executive powers of the Minister in consultation with the Prime Minister and the Ministers of the other central agencies. 
 
5. Form of the subsidy
 
  The Structural Adjustment Fund for South Aust ralia is a competitive grants programme.  The 
package combines labour market pr ogramme assistance tailored to meet the needs of displaced 
workers as well as support for new investment th at will create sustainable job opportunities in 
South Australia.   
  The minimum value of projects will be $1 million and except in exceptional circumstances, and with the prior agreement of the Australian Minister for Industry, Tourism and Resources and 
South Australian Deputy Premier, the maximum grant would be $10 million.   
 
 The following conditions apply:  G/SCM/N/123/AUS 
Page 10  
 
 • a minimum commitment, exclusive of in-kind, by the proponent which at least matches the 
total amount of government funding available under SAFSA and other applicable government 
programmes; 
• funding approved shall not exceed 50% of the projected capital costs; 
 6. To whom the funding was provided
 
 
 Two projects have met the programme’s criteri a and have been awarded support during the 
2004/05 financial year.    7. Level of subsidy per unit
 
 
 Investment support under the Fund will be provided from a pooled fund to which the 
Australian Government will contribute $40 million and the South Australian Government $5 million.  
Assistance provided to the two manufacturing proj ects in 2004/05 amounted to $2.316 million. 
 8. Duration
 
 
 Programme opened in July 2004 and applications close on 30 June 2006.  All grant funds must be provided by 30 June 2007.  9. Statistical data permitting an assessment of the trade effects
 
 
 Not known 
  
V. PASSENGER MOTOR VEHICLES 
1. Title of the Subsidy
 
 
 Automotive Competitiveness and Investment Scheme (ACIS)  2. Period covered by the notification
 
 
 Financial year 2003/2004 and financial year 2004/2005.  
 3. Policy objective and/or purpose of the subsidy
 
  ACIS is to promote competitiveness and enc ourage investment, R&D and innovation in the 
Australian automotive industry. 
 
4. Background and authority of the subsidy
 
  ACIS Administration Act  1999 (No. 139, 1999); ACIS (Unearned Credit Liability) Act  1999 
(No. 140, 1999); and Customs Tariff Amendment (ACIS Implementation) Act  1999 (No. 141, 1999) 
establish the Automotive Competitiveness and Investme nt Scheme.  The administration/authority for 
the allocation of benefits under the scheme is th e Department of Industry, Tourism and Resources. 
  In December 2002, the Government announ ced a post-2005 assistance package for the 
automotive industry which extends ACIS to 2015.  G/SCM/N/123/AUS 
 Page 11 
 
 
 5. Form of the subsidy  
  Participants receive duty credits which can be  used to pay customs duty on certain eligible 
imports.  Duty credits can also be sold or transferred to a third party.  
6. To whom the funding was provided
 
  Participants may be motor vehicle producers (MVPs), automotive component producers, automotive machine tools and tooling producers or automotive service providers.  For MVPs, duty credits are earned on the basis of a percentage of e ligible production; and eligible investments in plant 
and equipment. 
  For other participants, duty credits are earne d on the basis of a percentage of eligible 
investments in plant and equipment and eligible  investments in research and development. 
 
7. Level of subsidy per unit
 
  Each participant’s total benefits under ACIS are limited to 5 per cent of its eligible sales for 
the preceding year.     Assistance provided in financial year 2003/2004 was A$584.065 million 
 Assistance provided in financial year 2004/2005 was A$569.526 million 
 8. Duration
 
  1 January 2001 to 31 December 2015.   
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.   VI. PHARMACEUTICALS 
(a)  Pharmaceutical Indus try Investment Programme 
 1. Title of the Subsidy
 
 
 Pharmaceutical Industry In vestment Programme (PIIP) 
 2. Period covered by the notification
 
  Financial year 2003/2004.  The programme ceased on 30 June 2004.  
3. Policy objective and/or purpose of the subsidy
 
  The scheme is designed to compensate the pharmaceutical industry, in part, for the impact of the Federal Government exercising its monops ony purchasing power under the Pharmaceutical 
Benefits Scheme which suppresses pharmac eutical prices paid to suppliers. 
 G/SCM/N/123/AUS 
Page 12  
 
 4. Background and authority of the subsidy
 
  The scheme was approved by the Federal Government and announced by the Minister for Industry, Science and Tourism in April 1997.  The programme is administered by the Pharmaceutical 
Benefits Pricing Authority. 
 
5. Form of the subsidy
 
  Participating companies are paid higher pr ices on nominated products supplied to the 
Pharmaceutical Benefits Scheme in return for those companies meeting commitments to undertake 
eligible activities in Australia, including produc tion value added and research and development. 
 6. To whom the funding was provided
 
  Participating pharmaceutical companies 
 
7. Level of subsidy per unit
 
  Payment is calculated at 20 per cent of eligible  activity which is the difference between total 
forecast activity in a given year and a defined b ase level of activity.  Benefits will amount to 
$A 300 million over the life of the scheme.  Budget outlays for the financial year 2003/2004 were 
$A50.5 million. 
 8. Duration
 
  The scheme operated from 1 July  1999 until 30 June 2004. 
 
9. Statistical data permitting an assessment of the trade effects
 
  Unknown.    (b)  Pharmaceuticals Partnerships Programme 
 
1. Title of the Subsidy
 
  Pharmaceuticals Partnerships Programme (P3)  
2. Period covered by the notification
 
  Financial year 2004/2005.  3. Policy objective and/or purpose of the subsidy
 
 
 P3 is aimed at increasing the amount of high quality pharmaceutical R&D activity in 
Australia throughout the entire value chain including  biotechnology, originator and generic medicines 
companies.  4. Background and authority of the subsidy
 
 
 On  13 May 2003 the Government announced P3 would commence on 1 July 2004. Ministerial Directions and Guidelines issued by th e Minister for Industry, Tourism and Resources in 
September 2003.   G/SCM/N/123/AUS 
 Page 13 
 
 
 5. Form of the subsidy  
  Under the scheme, grants are awarded comp etitively to companies whose portfolios of 
research and development activity best meet the scheme’s merit criteria.   
6. To whom the funding was provided
 
  Funding is provided to pharmaceutical a nd biotechnology companies undertaking research 
and development.  
7. Level of subsidy per unit
 
  The total funding value is $150 million for the life of the programme.  Assistance is limited to 
30% of a project’s eligible activity costs up to a maximum grant of $10 million per project.  
 The outlay for 2004/05 was $A4.2 million. 
 8. Duration
 
  1 July 2004 – 30 June 2009  
9. Statistical data permitting an assessment of the trade effects
 
  Not known   VII. REGIONAL DEVELOPMENT 
1. Title of subsidy
 
  Sustainable Regions Programme  2. Period covered by the notification
 
 
 Financial year 2003/2004 and financial year 2004/2005.  3. Policy objective and/or purpose of the subsidy
 
 
 The Sustainable Regions Programme is desi gned to provide an opportunity for regional 
communities to lead their own development by id entifying and addressing priority issues in their 
regions.  The Programme offers a planned, integrated  approach to regions facing economic, social and 
environmental change.  4. Background and authority for the subsidy
 
 
 The Sustainable Regions Programme is the major initiative under the Stronger Regions, A 
Stronger Australia  Statement, announced by the Australian Government in 2001. 
 5. Form of the subsidy
 
 
 The Sustainable Regions Programme is a grants-based programme.  6. To whom and how the subsidy is provided
 G/SCM/N/123/AUS 
Page 14  
 
  
 Grants are available to eligible organisations  in each of the 10 designated geographic regions.  
Eligible organisations are those registered under St ate or Commonwealth legislation.  This includes 
private sector, not-for-profit, local government, co mmunity, charity and co-operative organisations. 
 
7. Level of subsidy per unit
 
  Total funding for 2003/2004 was $26.217 m illion and for 2004/2005 was $22.668 million. 
 8.  Duration of the subsidy
 
 
 The Sustainable Regions Programme was announ ced in 2001.  It is currently funded until 
30 June 2006 in the initial eight regions a nd until 30 June 2008 in the remaining two. 
 9. Statistical data permitting an assessment of the trade effects
 
 
Not known. 
  
VIII.  SHIPBUILDING 
(a) Shipbuilding Bounty 
 
1. Title of the Subsidy
 
  Shipbuilding Bounty  
2. Period covered by the notification
 
  Financial year 2003/2004.  Fi nancial information for financ ial year 2004/05 is still being 
finalised.  The scheme ceased on 31 December 2004.  3. Policy objective and/or purpose of the subsidy
 
 
 The bounty was designed to facilitate adjustment in the shipbuilding industry.  It was paid as 
a bounty on production and enables shipbuilding firms to compete against heavily subsidised rivals. 
 4. Background and authority of the subsidy
 
 
 The Bounty (Ships) Amendment Act  (No. 14, 1999).  The programme was administered by the 
Department of Industry, Tourism and Resources.  5. Form of the subsidy
 
 
 Bounty on eligible production costs. 
 6. To whom the funding was provided
 
  The bounty was paid to registered shipbuilder s on eligible vessels (between 150 and 20,000 
gross construction tons). 
  G/SCM/N/123/AUS 
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 7. Level of subsidy per unit  
  The rate of bounty on eligible costs was 3 per cent.   
 
    Source: Parliamentary Budget Pa pers and ITR Annual Reports 
 
8. Duration
 
  The bounty terminated on 31 December 2000.  A phasing out arrangement applied to vessels 
contracted for sale on or before 31 December 2000,  and delivered on or before 31 December 2003. 
Shipbuilders had until 31 December 2004 to lodge final claims. 
 9. Statistical data permitting an assessment of the trade effects
 
  Not known  
(b) Shipbuilding Innovation Scheme 
 1. Title of the Subsidy
 
  Shipbuilding Innovation Scheme (SIS) 
 
2. Period covered by the notification
 
  Financial year 2003/2004.  Fi nancial information for financ ial year 2004/05 is still being 
finalised.  The scheme ceased on 30 June 2005.  
3. Policy objective and/or purpose of the subsidy
 
  The Shipbuilding Inno vation Scheme was designed to im prove the competitiveness of the 
Australian shipbuilding industry by encouraging i nvestment in research, development and design. 
 
4. Background and authority of the subsidy
 
  The Bounty (Ships) Amendment Act  (No. 14, 1999).  The programme was administered by the 
Department of Industry, Tourism and Resources.  5. Form of the subsidy
 
 
 Payment of a subsidy for eligible research and development expenditure. 
 6. To whom the funding was provided
 
 
 The Shipbuilding Innovation Scheme was availa ble to firms engaged in the construction of 
eligible vessels (between 150 and 20,000 gross construction tons). 
 Year $million 
2001-02 5.5 
2002-03 13.3 
2003-04 6.8 G/SCM/N/123/AUS 
Page 16  
 
 7. Level of subsidy per unit
 
  Shipbuilders were entitled to a benefit equivale nt to 50 per cent of expenditure in eligible 
innovation activities.  Payments under th is scheme were not perm itted to exceed 2 per cent of the total 
eligible production costs of a bountiable vessel.   
 
 
    Source: Parliamentary Budge t Papers and ITR Annual Reports 
 
8. Duration
 
  The scheme operated from 1 July 1999 until 30 June 2004. Shipbuilders had until 
30 June 2005 to lodge final claims.  
9. Statistical data permitting an assessment of the trade effects
 
  Not known.  The scheme is intended to enable Australian shipbuilders to adopt best practice 
product and process technologies.   IX. SUGAR 
 
1. Title of the subsidy
 
  Sugar Industry Assistance  Programme - Canegrowers 
 
2. Period covered by this notification
 
  Financial years 2002/2003, 2003/2004 and 2004/2005.  3. Policy objective and or purpose of the subsidy
 
 
 Short term interest rate subsidy assistance to canegrowers facing financial hardship as a result of a combination of adverse seasonal conditions, low worl d sugar prices and sugar content levels, orange 
rust and rat plagues over  the last three years. 
  
4. Background and authority for the subsidy
 
  The subsidy was introduced in September 2000 under the authority of a Cabinet decision. 
 5. Form of the Subsidy
 
 
 The assistance was provide d in the form of a Government grant to producers. 
 6. Provision of the Subsidy
 
  The assistance was provided as a Government grant to eligible sugar producers, and was 
based on income and asset tests. Year $million 
2001-02 4.0 
2002-03 8.7 
2003-04 7.0  G/SCM/N/123/AUS 
 Page 17 
 
 
  
7. Value of the Subsidy   
  
Period Outlay (A$ million) 
2002-2003 17.66 
2003-2004 1.44 
2004-2005 Nil 
 
 Cost per unit value has not been provided as the financial assistance is not related to production 
in the current or future years.  An assessment of cost per unit is therefore an inappropriate measure of assistance in this case.  8. Duration
 
 
 The programme was introduced in Se ptember 2000 and concluded in June 2002. 
 9. Statistical data permitting an assessment of the trade effects
 
   
Not known.  
  
X. TEXTILES, CLOTHING & FOOTWEAR 
(a) Textiles, Clothing and Footwear Strategic Investment Programme 
 
1. Title of the subsidy
 
  Textile, Clothing and Footwear Strategic Investment Programme (TCF (SIP) Scheme)  2. Period covered by the notification
 
 
 Financial year 2003/2004 and financial year 2004/2005  3. Policy objective and/or purpose of the subsidy
 
 
 The programme is designed to foster the development of sustainable, competitive TCF 
industries in Australia by encouraging additional investment and innovation.   
 4. Background and authority for the subsidy
 
  Textile, Clothing and Footwear St rategic Investment Programme Act 1999  (No. 182, 1999).  
It is administered by the Department of Industry, Tourism and Resources. 
  On 27 November 2003 the Government announced a post-2005 assistance package for the textile, clothing and footwear industry, to commence in the financial year 2005/2006.  
 
5. Form of the subsidy
 
  The programme provides incentives in th e form of grants to TCF entities. 
 G/SCM/N/123/AUS 
Page 18  
 
 6. To whom and how the subsidy is provided
 
  TCF entities must register for the Scheme.  Gr ants are in respect of new TCF plant/building 
expenditure, TCF R&D and product development,  TCF value-added and second-hand TCF plant 
expenditure in respect of restructuring initiatives in  TCF-dependent communities.  They are limited to 
a percentage of eligible expenditure. 
 7. Level of subsidy per unit
 
  Benefits under the TCF (SIP) Scheme will be ca pped at $A 678 million over five years.  Each 
participant's total benefits under the TCF (SIP) Scheme  in any one year will be limited to 5 per cent of 
total eligible revenue in the 12 months preceding the claim year.   The estimated budget outlay for the 2003/ 04 and 2004/05 financial years was A$142.54 
million. 
 
8. Duration of the subsidy
 
  1 July 2000 to 30 June 2005.  9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   (b) Textiles, Clothing and Footwear Post-2005 Assistance Package  
 
1. Title of the subsidy
 
  Textile, Clothing and Footwear Post-2005 Assistance Package  2. Period covered by the notification
 
 
 Financial year 2005/2006 and financial year 2006/2007  3. Policy objective and/or purpose of the subsidy
 
 
 The policy objective of this package is to  foster the development of Australian TCF 
manufacturing activity so that it is viable and competitive without continued special assistance.  4. Background and authority for the subsidy
 
  Authority for the TCF Post-2005 (SIP) Scheme and the TCF Small Business Programme is 
the Textile, Clothing and Footwear St rategic Investment Programme Act 1999  (No. 182, 1999), the 
Product Diversification Scheme and the TCF Stru ctural Adjustment Programme are made under 
Executive Powers.  The TCF Post-2005 (SIP) Sche me, the TCF Small Business Programme and the 
Product Diversification Scheme are administered by the Department of Industry, Tourism and Resources.  The TCF Structural Adjustment Programme is administered by the Department of 
Industry, Tourism and Resources and the Depart ment of Employment and Workplace Relations. 
  The TCF Post-2005 (SIP) includes:   G/SCM/N/123/AUS 
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 • $600 million for a ten-year extension of the Textile, Clothing and Footwear Strategic 
Investment Programme, comprising: 
o $575 million for the Textile, Clothing and Footwear Strategic Investment 
Programme Post-2005 Scheme, known as the TCF Post-2005 (SIP) Scheme; and 
o $25 million for the ten-year TCF Small Business Programme; 
• $50 million for the ten-year TCF Structural  Adjustment Programme, which the three 
following distinct elements: 
o provision of assistance to retrenched TCF workers;  
o grant assistance to TCF firms who consolidate their operations, through the TCF 
Restructuring Initiative Grants Scheme; and 
o assistance to communities that have been adversely affected by TCF closures;  
• $50 million for the Product Diversification Scheme.  
 
5. Form of the subsidy  
  The TCF Post-2005 (SIP) Scheme, the TCF Small Business Programme and the TCF Restructuring Initiative Grants Scheme, provide incentives in the form of grants; the Product 
Diversification Scheme provides duty concessions. 
 
6. To whom and how the subsidy is provided
 
  TCF entities must register or apply for suppor t under all Programmes.  Grants under the TCF 
Post-2005 (SIP) Scheme are in respect of new TCF plant/building expenditure, TCF R&D and 
product development.  Grants under the TCF Small Business Programme are to improve the business 
enterprise culture of TCF small businesses.  Gran ts under the TCF Restructuring Initiative Grants 
Scheme are in respect of state-of-the-art s econd-hand plant or equipment and ancillary costs 
associated with the restructuring initiative. Duty c oncessions in respect of the Product Diversification 
Scheme are in respect of production.  The subsid ies are limited to a pe rcentage of eligible 
expenditure. 
 
7. Level of subsidy per unit
 
  Benefits under the TCF Post-2005 (SIP) Scheme  and the Product Diversification Scheme are 
capped at $A 625 million over ten years.  Each part icipant's total benefits under both Programmes in 
any one year will be limited to 5 per cent of tota l eligible revenue in the 12 months preceding the 
claim year.  Benefits under the TCF Restructur ing Initiative Grants are notionally capped at 
$20 million over ten years, a grant recipient cannot receive a grant greater that the expenditure incurred in undertaking the restructuring initia tive.  Benefits under the TCF Small Business 
Programme are capped $25 million over ten years, gr ant support for individual projects is capped at 
$50 000. 
 
 The estimated budget outlay for the 2005/06 and 2006/07 financial years is A$214 million. 
 8. Duration of the subsidy
 
 
 1 July 2005 to 30 June 2015. 
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.  
 G/SCM/N/123/AUS 
Page 20  
 
 XI. WHEAT 
1. Title of the subsidy
 
  Tasmanian Wheat Freight Subsidy  
2. Period covered by this notification
 
  Financial year 2003/2004 and financial year 2004/2005.  3. Policy objective and or purpose of the subsidy
 
 
 The purpose of this subsidy is to compensat e for the higher cost of shipping wheat to 
Tasmania.   4. Background and authority for the subsidy
 
 
 The subsidy was introduced in 1989 followi ng the deregulation of the Australian wheat 
market.  The Tasmanian subsidy was initially provided to assist Ta smanian cereal processors, end 
users and consumers adjust to deregulation throug h improvements in storage and handling facilities. 
  Funding for the Tasmanian Wheat Freight S ubsidy Scheme is provided annually through 
Budgetary Appropriations Bill Number 2 .  The Minister for Transport and Regional Services is 
responsible for the terms and conditions of the assistance.  5. Form of the Subsidy
 
 
 The assistance is provided as a rebate to shippers of bulk wheat to Tasmania. 
 6. Provision of the Subsidy
 
  Shippers of bulk wheat receive one payment proportional to the total tonnage shipped by the 
shipper under the Scheme in a given financial year.   
 
7. Value of the Subsidy  
 
  
Period Cap (A$ million) 
2003-2004 1.2 
2004-2005 1.05 
 
 Subject to an annual appropriation by Parliament , up to $1.05M is available in a financial year 
for distribution to shippers  of bulk wheat  claiming assistance to offset the cost of shipments.   
 8. Duration
 
 
 The programme was introduced in 1989 a nd is currently funde d until 30 June 2006 
  G/SCM/N/123/AUS 
 Page 21 
 
 
 9. Statistical data permitting an assessment of the trade effects  
  
(a) Statistics:  
 
Year Volume (tons) Assistance (A$ million) 
2003/04 73,469 1.2 
2004/05 27,433 0.647 
  
(b) Trade effects:  
 The scheme only applies to the cost of bulk wheat freight to Tasmania for domestic 
consumption and not wheat for export.  As a result there is no trade effect.   
SUB-FEDERAL PROGRAMMES 
 Each of the States/Territories provides an i nvestment attraction/assistance programme (which 
are marked with an * asterisk under the individual State/Territory entries) which is designed to attract investment from and between the States.  The following is an estimate of the aggregated level of funding for these programmes for the financial y ears 2001/2002 and 2002/2003 together with the 
estimated number of firms assisted/investment p ackages offered.  Due to  the nature of these 
programmes (which may involve in some cases th e provision of advisory facilitation services), the 
funding levels reflect budget figures as opposed to act ual grants paid.  The range of sectors assisted 
under these programmes is described under th e individual State/Territory entries. 
 
Financial Year 2003/2004 2004/2005  
$A million    
No. of companies/ 
Packages offered    
 
 
I. AUSTRALIAN CAPITAL TERRITORY  
1. A.C.T. Business Incentive Fund (ACTBIF)* 
1. Title of the subsidy  
 
 A.C.T. Business Incentive Fund (ACTBIF) 
 2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005.  
3. Policy objective and/or purpose of the subsidy
 
  ACTBIF provides incentives to assist the devel opment of significant new business investment 
and employment in the Australian Capital Territo ry.  Packages are designed to encourage businesses 
to relocate to the ACT, expand an existing busin ess activity or develop a new business activity.   
 G/SCM/N/123/AUS 
Page 22  
 
 4. Background and authority for the subsidy
 
  The ACT Business Incentive Fund (ACTBIF) re placed the previously administered ACT 
Business Incentive Scheme (ACTBIS) in 2001.   ACTBIS was established in 1995/96 by the ACT 
Government.  The ACTBIS/ACTBIF programme is not sp ecifically authorised under legislation.  It is 
an administrative function that utilises discretionary po wers contained within existing legislation.  For 
example, waivers are provided for under the Fina ncial Management Act a nd land grants under the 
Land (Planning and Environment) Act.  It is ad ministered by the ACT Department of Economic 
Development, which determines the allocation of assistance.  
5. Form of the subsidy
 
  Assistance is generally provided through tax concessions, including payroll tax; provision of 
land; and training and workforce development.  Othe r forms of assistance may be provided.  Each 
case is assessed on its merits.  Unlike ACTBIS, ACTBIF does not provide cash grants. 
 
6. To whom and how the subsidy is provided
 
  Eligible companies ar e assessed against a set of evaluati on criteria which includes suitability 
of the industry to the ACT; soundness of the business case; and contribution to the ACT economy.  There must be no undue detriment to existing ACT businesses.  
 
7. Level of subsidy per unit
 
  Assistance utilised during financial years 2003/04 and 2004/05 was payroll tax waivers, land 
rent waivers, and cash grants (approved previously under ACTBIS).   
 
 See above table for the aggregated State e xpenditure and number of firms assisted.  
 8. Duration of the subsidy
 
  ACTBIS (the former programme) was establis hed in the financial year 1995/1996 and ceased 
in 2001, however a number of Agreements contin ue.  ACTBIF was established in 2001 and is an 
ongoing programme.  9. Statistical data permitting an assessment of the trade effects
 
 
 Not known. 
  
II. NEW SOUTH WALES  
1. Industries Assistance Fund (IAF)*  
1. Title of the subsidy 
 
 Industries Assistance Fund (IAF)   2. Period covered by the notification 
 
 
 Financial year 2003/2004 and financial year 2004/2005. 
  G/SCM/N/123/AUS 
 Page 23 
 
 
 3. Policy objective and/or purpose of the subsidy  
  The IAF aims to promote economic developmen t through assisting new firms to establish in 
NSW; interstate or overseas firms to relocate in NS W; firms to expand or consolidate their operations 
in NSW; and large-scale infrastructure projects.   
 
4. Background and authority for the subsidy
 
 
 The IAF was established under the State Development and Industries Assistance Act  1966  as 
the vehicle for payments of grants made by the Mi nisterial Corporation for Industry, the operations of 
which are managed by the Minister (or the Minister’s delegate). 
 5. Form of the subsidy
 
  Financial assistance, which is considered in limited and special circumstances only, on a case-
by-case basis, may take the form of partial tax reba tes; facility establishment costs; relocation costs; 
contributions to infrastructure; skills training; or contribution to feasibility/studies.  The assistance is 
in the form of partial rebates of state taxes and ther efore is cost neutral in terms of the impact on state 
revenue.  6. To whom and How the Subsidy is Provided
 
 
 Assistance is provided to eligible compan ies who will undertake new investments in 
New South Wales.  To be eligible, an investment  must provide significant net economic benefits (for 
example, through substantial increases in employme nt and investment, and the introduction of new 
technologies); be footloose; and be strategic to New South Wales. 
 
7. Level of subsidy per unit  
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/200 4 and financial year 2004/2005. 
 
8. Duration of the subsidy
 
  The IAF is an ongoing programme.  The dura tion of IAF assistance to companies is agreed 
between the project proponent and the Department of  State & Regional Development.  It reflects in 
part the lead and gestation times associated with th e particular investment proposal, and is generally 
for a period of up to five years.   
 9. Statistical data permitting an assessment of the trade effects
 
  Statistical data is collected for the purpose of programme evaluation.  No trade data is collected.   
 
2. Regional Business Development Scheme 
1. Title of the subsidy
 
  Regional Business Development Scheme 
 
2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005. G/SCM/N/123/AUS 
Page 24  
 
  
3. Policy objective and/or purpose of the subsidy
 
  The Regional Business Development Scheme (RBDS) is used by the NSW Department of State and Regional Development to assist business st art-ups, expansions or relocations in regional 
New South Wales.  The Scheme provides assistan ce to help eligible co mpanies offset initial 
establishment costs that may prevent a viab le regional business location being selected. 
 4. Background and authority for the subsidy
 
 
 There is no legislation under which assistance from the RBDS is granted; the RBDS operates 
as an administrative function of the NSW Depa rtment of State and Regional Development. 
 5. Form of the subsidy
 
 
 Financial assistance may be granted as an est ablishment grant; a grant for the expansion of 
existing premises/facilities; location feasibility anal ysis; business planning a nd technical consultancy 
assistance; plant and equipment/key personnel remova l costs; skills training; contributions towards 
infrastructure costs such as improving public road acces s to the site, etc; offsets to local government 
charges; and/or as contribution to regional opportun ities investigation, payroll and land taxes, or 
stamp duty. 
 
6. To whom and how the subsidy is provided  
  Assistance is provided to eligible companies that  satisfy at least one of the following criteria:  
potential for a substantial increase in employmen t; relocation from outside New South Wales or 
Sydney; significant new investment in operations ; setting up of a new industry/business operation; 
and/or clear improvement in the competitiveness of an existing business.  7. Level of subsidy per unit
 
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/200 4 and financial year 2004/2005. 
 8. Duration of the subsidy
 
  The RBDS was introduced in 1989 and is an ongoing programme.  The duration of the RBDS 
assistance to companies is agreed  between the project proponent and the NSW Department of State 
and Regional Development, and will reflect in part the lead and gestation times associated with the 
particular investment proposal.  9. Statistical data permitting an assessment of the trade effects
 
 
 Not known. 
 
III. NORTHERN TERRITORY  
1. Industry and Business Assistance* 
1. Title of the subsidy  
 
 Industry and Business Assistance   G/SCM/N/123/AUS 
 Page 25 
 
 
 2. Period covered by the notification  
  Financial year 2003/2004 and financial year 2004/2005.  3. Policy objective and/or purpose of the subsidy
 
 
 To support the growth and development of th e Northern Territory's industrial and commercial 
base through the provision of appropriate and prudent assistance to target industries.  To assist and 
encourage the development, expa nsion and diversification of pr imary, secondary and tertiary 
industries in the Northern Territory by providing grants to eligible new or expanding business. 
 
4. Background and authority for the subsidy  
  There is no legislation determining Industry and Business Assistance.  The programme is 
administered, on a case-by-case basis, by the Depa rtment of Business, Industry and Resource 
Development. 
 5. Form of the subsidy
 
  Grants.  
6. To whom and how the subsidy is provided
 
  Assistance eligibility is not restricted by sector, category or enterprise, although each proposal must be of a commercially viable nature and ha ve the ability to demonstrate potential growth and 
benefit to the Northern Territory.  Assistance is generally available to businesses undertaking a 
particular endeavour (i.e. a special project). 
 7. Level of subsidy per unit
 
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/200 4 and financial year 2004/2005. 
 
8. Duration of the subsidy
 
  The programme is ongoing.  
9. Statistical data permitting an assessment of the trade effects
 
  Not known.   
IV. QUEENSLAND  
1. Queensland Investment Incentives Scheme (QIIS)*  
 
1. Title of the Grant Scheme
 
  Queensland Investment Incentives Scheme 
 
2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005 G/SCM/N/123/AUS 
Page 26  
 
  
3. Policy Objective and/or purpose of the subsidy
 
  The Queensland Investment Incentives Scheme ai ms to generate sustainable investment and 
jobs in Queensland by securing selected projects wh ich the Government considers to have strategic 
merit and that, without Government intervention, would not occur in Queensland. 
 4. Background and authority for the subsidy
 
  The Queensland Investment Incentives Scheme is  administered by the Department of State 
Development, Trade and Innovation.  There is no legislative authority for the scheme.   
 5. Form of the subsidy
 
  Incentives potentially offered to selected projects include:  
 
• Payroll tax and land tax refunds – Consideration may be given to refunding part of payroll and 
land taxes directly related to a project, incurred a nd paid by the proponent of the project over the 
early years of operation; 
 
• Stamp duty refund – Consideration may be given to refunding in part or in full Queensland 
Stamp Duty incurred and paid in relation to the establishment of the project; and 
 
• Establishment grants – A grant may be offered to offset part of any establishment, relocation or 
training costs associated with the project that  is paid by the proponent of the project. 
  Incentives will only be considered for a project if  providing the assistance to the project is not 
likely to compromise Australia’s international obligations  
6. To whom and how the subsidy is provided
 
  The scheme allows the State to  offer incentives to proponents of selected projects which the 
Government considers have strategic merit to Queensland.  
7. Level of grant
 
  See above table for the aggregated State expenditure and number of firms assisted 
 8. Duration of the grant
 
 
 Relevant contracts are currently planned through to 2015. 
 9. Statistical data permitting an assessment of the trade effects
 
  Not known 
 
 
2. Queensland Industry Development Scheme 
 
1. Title of the Grant Scheme
 
 
 Queensland Industry Development Scheme  G/SCM/N/123/AUS 
 Page 27 
 
 
  
2. Period covered by the notification  
  Financial year 2003/2004 and financial year 2004/2005  
3. Policy objective and/or purpose of the subsidy
 
  The Queensland Industry Development Scheme is designed to provide a vehicle for State 
Government to work with industry and businesses  to maximize economic growth by supporting 
projects that improve business performance and assi st in the transition to a globally competitive 
business environment, including creation of  more jobs and business expansion.  
 4. Background and authority for the subsidy
 
  The Queensland Industry Development Scheme is  administered by the Department of State 
Development, Trade and Innovation on behalf of th e Queensland Government.  There is no direct 
legislative authority for this programme, howev er the scheme operates in conjunction with the 
Industrial Development Act 1963 (Qld) .  The scheme is funded as a special budget line item for the 
Department.   5. Form of the subsidy
 
 
 Assistance is provided in the form of a cash grant.  6. To whom the subsidy is provided
 
 
 Established manufacturing firms or  groups operating in Queensland.  
 7. Level of subsidy per unit
  
  See above table for the aggregated State e xpenditure and number of firms assisted.  
 
 Major sectors receiving assistance included av iation, biotechnology, food and meat, 
information and communications technology, retail and wholesale trading, metals processing and 
other manufacturing.  8. Duration of the scheme
 
 
 The Queensland Industry Development Scheme  commenced in 1998 and is still currently 
active.    9. Statistical data permitting an assessment of the trade effects
 
 
 Not known 
  
V. SOUTH AUSTRALIA 
1. Industry Investment and Attraction Fund* 
1. Title of the subsidy
 
  Industry Investment and Attraction Fund  G/SCM/N/123/AUS 
Page 28  
 
  
2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005.  
3. Policy objective and/or purpose of the subsidy
 
  The Industry Investment and Attraction Fund (IIAF) was formally w ound down during the 
reporting period.  The sole purpose of the IIAF now is to honour the outstanding financial 
commitments that were entered into prior to the fund being wound down.  
 
 During its operation, the IIAF was aimed at encouraging investment to increase 
competitiveness and the creation of employment.  Fi nancial assistance and investment incentives were 
provided to encourage further value added activity or to encourage firms to relocate to South Australia.   
 
4. Background and authority for the subsidy
 
 
 Industries Development Act 1941 .  As advised in Australia’s previous notification 
(G/SCM/N/95/AUS), tiered approval authority accordi ng to value of proposed subsidy, ranging from 
Cabinet (Executive Government), industry minist er(s) and through to industry department. 
 
 It is the policy of the Government to refe r all firm-specific industry assistance proposals 
valued over $500,000 to the Industri es Development Committee for its consideration prior to seeking 
Government approval.  
5. Form of the subsidy
 
  In financial years 2003/2004 and 2004/2005, financial commitments were in the form of grants and loans.    Applicants were assessed on a case-by-case basis an d the total value and form of the incentive 
package was based on an assessment  of the net economic benefits and strategic importance of the 
project to South Australia.  6. To whom and how the subsidy is provided
 
 
 Funding under the IIAF was previously availabl e to established firms seeking to establish, or 
expand existing operations, in South Australia which had a reasonable prospect of long term viability 
and which were involved in the goods and services sector (i.e. excluding for example building, 
retailing, tourism and agriculture).  The firms eligible  for assistance were usually medium to large in 
size and complemented the Government’s economic development priorities, with the capacity to 
contribute significantly to flow effects in the economy.   
 
 The companies assisted during the reporting peri od operated in a number of different industry 
sectors including defence and aerospace, financial services, automotive and manufacturing. 
 
7. Level of subsidy per unit  
 
 See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/200 4 and financial year 2004/2005.  
  G/SCM/N/123/AUS 
 Page 29 
 
 
 8. Duration of the subsidy  
 
 The operation of the IIAF is now restricted to meeting existing commitments, the majority of which are anticipated to be paid out by 2010.  
9. Statistical data permitting an assessment of the trade effects
 
  Not known.   VI. TASMANIA 
1. Investment Attraction Programme 
 
1. Title of the subsidy
 
 
 Investment Attraction Programme 
 2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005.  
3. Policy objective and/or purpose of the subsidy
 
  Aimed at attracting and retaining key inv estment projects to Tasmania, the programme 
provides facilitation services and assistance in the form of site  identification, selection, industrial 
relations and employment advice and cost issues at  various locations to new firms establishing in 
Tasmania, companies relocating to Tasmania or to firms expanding and conso lidating their operations 
in Tasmania.  4. Background and authority for the subsidy
 
  The legislative basis is the Tasmanian Development Act 1983  with any funds expended under 
the Investment Attraction Programme being approp riated under the budget of the Department of 
Economic Development.  5. Form of the subsidy
 
 
 Assistance can take the form of grants, concessional loans, payroll tax exemptions, rental 
assistance, reduced stamp duty, workforce training and development or feasibility/technical studies. 
 6. To whom and how the subsidy is provided
 
  Applications are assessed on a case-by-case basis.  Incentive packages are based on an 
assessment of the net economic benefits (increases in employment, increase in investment and the 
introduction of new technologies), the long-term viab ility of the project and the strategic importance 
of the project to the State.  7. Level of subsidy per unit
 
 
 See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/2004 and financial year 2004/2005.  Industry sectors assisted included 
natural gas infrastructure, mining exploration and contact centres. G/SCM/N/123/AUS 
Page 30  
 
  
8. Duration of the subsidy
 
  The investment attraction programme is ongoing.  Assistance to companie s is time-specific, 
agreed upon between the proponent and the De partment of Economic Development. 
 
9. Statistical data permitting an assessment of the trade effects
 
  Not known.  
 
VII. VICTORIA 
1. Investment Attraction Programme* 
 
1. Title of the subsidy
 
 
 Investment Attraction Programme  2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005. 
 
3. Policy objective and/or purpose of the subsidy
 
  The programme provides facilitation services for key investment projects and regional headquarters, and seeks to attract additional inv estment for Victoria leading to the balanced 
development of the State.  Investment facilitation and assistance includes site identification, selection, 
industrial relations and employment advice and inform ation on costs in different locations.  In very 
limited circumstances, taxable grants may be provided.  4. Background and authority for the subsidy
 
 
 The  Economic Development Act 1981 is the legislative basi s; that Act was repealed on 
27 April 1994.  Since this time, any funds expende d under the Investment Attraction Programme have 
been appropriated under the normal global budget of  the Department of Innovation, Industry and 
Regional Development (formerly the Departme nt of State and Regional Development). 
 
5. Form of the subsidy  
  Where financial assistance is provided, it is in th e form of taxable grants to offset payroll and 
land tax, provision of infrastructur e and assistance with training.  
  6. To whom and how the subsidy is provided
 
 
 Where financial assistance is provided, companies must demonstrate a certain level of capital expenditure.  Eligibility for the scheme is not limited to any sector or category of enterprise or to any 
region.  
7. Level of subsidy per unit
 
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/200 4 and financial year 2004/2005.   G/SCM/N/123/AUS 
 Page 31 
 
 
  
 The programme provided assistance to a number of industry sectors including automotive;  chemicals and plastic;  information technology;  engin eering;  packaging;  food and related industries;  
textiles, clothing and footwear; medical and scientific; forest products;  and retail.  
8. Duration of the subsidy
 
  The programme is ongoing.  9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.   
VIII.  WESTERN AUSTRALIA 
1. Investment Incentive Scheme* 
 (formally the Industry Incentive Scheme) 
 1. Title of the subsidy
 
  Investment Incentive Scheme 
 
2. Period covered by the notification
 
  Financial year 2003/2004 and financial year 2004/2005  
3. Policy objective and/or purpose of the subsidy
 
  The aim of the Investment Incentive Scheme is  to foster economic development in Western 
Australia by facilitating major capital investment in  new projects, products or services of strategic 
importance to the State that would not otherwise oc cur, and for which the wider economic benefits of 
the investment outweigh the costs to Government. 
 
 The Government’s approach in this scheme is based on the appropriate use of targeted 
investment incentives as a tool for strategic industry development that adds value and diversity to the 
State’s economic base and builds on the Stat e’s competitive and comparative advantages. 
 
 The approach to financial assistance is not about picking winners, subsidising business or 
providing business welfare.  The threat of re-locatin g to another State or country is not considered a 
valid reason for assistance.  Additionally, the schem e is not aimed at supporting investment for which 
there is no identified impediment.  4. Background and authority for the subsidy
 
 
 Departmental budget.  The scheme is admini stered by the Department of Industry and 
Resources.  5. Form of the subsidy
 
 
 Possible components include capital invest ment establishment grants (interest-free 
convertible loans); concessional or interest free lo ans; provision of public infrastructure necessary for G/SCM/N/123/AUS 
Page 32  
 
 the project; and provision of land.  The maximum amount of assistance remains at the discretion of 
the Government.  6. To whom and how the subsidy is provided
 
 
 Eligibility for incentives will be asses sed against the following criteria: 
  The proposed project will expand and/or di versify the Western Australian economy, net 
economic benefits to the State, long-term viabilit y, the proposed project demonstrates no significant 
detriment to existing Western Australian industry, provision of security, capital invested or jobs 
created. 
 7. Level of subsidy per unit
 
  During 2003/2004 and 2004/2005, sectors assist ed by the scheme were telecommunications, 
innovation and information technology. 
  See above table for the aggregated State e xpenditure and the estimated number of firms 
assisted for financial year 2003/2004 and financial year 2004/2005.   
 8. Duration of the subsidy
 
 
 The programme is ongoing.  9. Statistical data permitting an assessment of the trade effects
 
 
 Not known. 
 
2. Industry Relocation Scheme 
 
1. Title of the subsidy  
 
 Industry Relocation Scheme 
 2. Period covered by the notification
 
   Financial year 2003/2004 and financial year 2004/2005 
 
3. Policy objective and/or purpose of the subsidy
 
  The Industry Relocation Scheme aims to provide financial incentives to existing 
manufacturing, value adding, advanced technology or service based industries to totally relocate operations from Perth to a regional area as defined in the Regional Development Commission Act 
1993 ; or partially relocate operations from Perth to a regional area; or expand operations by 
establishing a new regional facility as opposed to the expansion of their current Perth premises.   
 4. Background and authority for the subsidy
 
 
 There is no specific legislation.  The scheme is funded through budget appropriations 
allocated to the Department of Local Government and Regional Development. 
  G/SCM/N/123/AUS 
 Page 33 
 
 
 5. Form of the subsidy  
  The incentive package that may be  offered to an eligible project may comprise one or more 
components tailored to suit both the specific requirements of the project proponents and the Government’s objectives with respect to the project.  Possible components include capital 
establishment grants (interest-free convertible loans) ; concessional or interest-free loans; provision of 
public infrastructure necessary for the project; provision of land either by way of a grant or a loan on a 
concessional basis; provision of buildings either by wa y of a grant or a loan on a concessional basis; 
or state tax rebates.  
6. To whom and how the subsidy is provided
 
  Eligibility criteria for any project include: proponents must have an established business with at least three full time employees and an annual tu rnover greater than $350,000; the project must 
involve existing manufacture, value adding, ad vanced technology or service based businesses 
(primary agricultural production, fishing, retail a nd the extractive component of mining are excluded); 
the project should relate to the relocation or expa nsion of a Perth-based business; have appropriate 
equity funding and be viable in the long term w ith net economic benefits to the State, including the 
creation of employment opportunities in the chosen region.  7. Level of subsidy per unit
 
 
 During financial year 2003/2004 and financ ial year 2004/2005 no loans were approved. 
 8. Duration of the subsidy
 
 
 The programme is ongoing. 
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.  
__________