WORLD TRADE  
ORGANIZATION  G/SCM/N/155/AUS/Add.1 
15 November 2007 
 (07-4980) 
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 
 
Addendum  
 
 
 The following communication, dated 9 November 2007, is being circulated at the request of the Delegation of Australia.  
_______________ 
 
  The New and Full Notification of Australia for financial years (FY) 2003/2004 and 2004/2005 (G/SCM/N/123/AUS/Rev.1) noted that fina ncial information for FY 2004/05 relating to 
the ceased Shipbuilding Bounty and Shipbuilding I nnovation Scheme was still being finalised.  The 
New and Full Notification of Australia dated 4 Se ptember 2007 and circulated on 10 September 2007 
(G/SCM/N/155/AUS) has been amended to  include this information.   
  G/SCM/N/155/AUS/Add.1 
Page 2  
 
  I. SHIPBUILDING 
A. S
HIPBUILDING BOUNTY  
1. Title of the Subsidy  
  Shipbuilding Bounty.   
 
2. Period covered by the notification
 
  Financial year 2004/2005.  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.    
4. Background and authority of the subsidy
 
  The Bounty (Ships) Amendment Act  (No. 14, 1999).  The program 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 shipbuilders on eligible vessels (between 150 and 
20,000 gross construction tons).    7. Level of subsidy per unit
 
  The rate of bounty on eligible costs was 3 per cent.   
 
Year $million 
2004/2005 0.8 
 
 Source:  Parliamentary Budget Pape rs and DITR 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 fi nal claims.  Final payments under this program 
were made during the year ending 30 June 2005.   
 9. Statistical data permitting an assessment of the trade effects
 
  Not known.    G/SCM/N/155/AUS/Add.1 
 Page 3 
 
 
  B. SHIPBUILDING INNOVATION SCHEME  
1. Title of the Subsidy  
  Shipbuilding Innovation Scheme (SIS).    
2. Period covered by the notification
 
  Financial year 2004/2005.  Th e 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 inv estment in research, development and design.  
The scheme was intended to enable Australian shipbu ilders to adopt best practice product and process 
technologies.   
 
4. Background and authority of the subsidy  
  The Bounty (Ships) Amendment Act  (No. 14, 1999).  The program 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).   
 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 Budget Pape rs and DITR 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.  Final paym ents under this scheme were made during the year 
ending 30 June 2005.   
 9. Statistical data permitting an assessment of the trade effects
 
 
 Not known.    
__________ 
 Year $million 
2004/05 2.1