WORLD TRADE
ORGANIZATIONG/SCM/N/60/AUS/Rev.1
19 December 2000
(00-5521)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
AUSTRALIA
Revision
The following communication, dated 15 December 2000, has been received from the
Permanent Mission of Australia.
_______________
The following notification provides Australia's 2000 update of document G/SCM/N/38AUS -
G/SCM/N/48AUS dated 11 May 2000 on federal and sub-national programmes for fiscal year
1999/2000 (July/June).
TABLE OF CONTENTS
FEDERAL PR OGRAMMES............................................................................................................. ...2
I. BOOKS ........................................................................................................................ ..............2
II. DAIRY ....................................................................................................................... ................3
III. INVEST AUSTRALIA ........................................................................................................... ..4
IV. MACHINE TOOL S AND ROBO TS.......................................................................................4
V. PASSENGER MOTO R VEHIC LES ......................................................................................4
VI. PHARMACEUT ICALS ...........................................................................................................5
VII. SHIPBUILDING............................................................................................................... ........6
VIII. TEXTILES, CLOTHING & FOOTWEAR............................................................................7
IX. WHEAT ....................................................................................................................... ..............8
SUB-NATIONAL PR OGRAMMES ....................................................................................................9
I. AUSTRALIAN CAPI TAL TERRI TORY..............................................................................9
II. NEW SOUTH WALES............................................................................................................. 9
III. NORTHERN TERRITORY ..................................................................................................10
IV. QUEEN SLAND .................................................................................................................. .....11G/SCM/N/60/AUS/Rev.1
Page 2
V. SOUTH AUS TRALIA............................................................................................................11
VI. TASMANIA.................................................................................................................... .........12
VII. VICTORIA................................................................................................................... ...........12
VIII. WESTERN AUSTRALIA......................................................................................................13
FEDERAL PROGRAMMES
I. BOOKS
As foreshadowed in G/SCM/N/25/AUS of 9 July 1997, the bounty on books terminated on
31 December 1997.  Payments under the bounty scheme made for FY 1996/97 were
A$13.242 million, for FY 1997/98 were A$7.410 million and for FY 1998/99 were A$0.345 million.
The Australian Government has introduced two new schemes: the Printing Industry CompetitivenessScheme which came into effect on 1 January 1999 and the Book Production - Enhanced Printing
Industry Competitiveness Scheme which commenced on 1 July 2000.
(a) Printing Industry Competitiveness Scheme
1. Title of the subsidy
 
 Printing Industry Competitiveness Scheme
 
2. Period covered by the notification
 
 January 1999 to June 2000
 
3. Level of subsidy per unit
 
 4 per cent of the paper purchase price for all paper used in the production of eligible books.
 
4. Trade effects
Currently 55 book printing firms have made claims under the scheme and it is estimated that
up to 70 firms may qualify for assistance.
(b) Book Production - Enhanced Printing Industry Competitiveness Scheme
1. Title of the subsidy
 
 Book Production - Enhanced Printing Industry Competitiveness Scheme (EPICS) grants
 
2. Period covered by the notification
 
 The scheme commenced on 1 July 2000.
 
3. Policy objective and/or purpose of subsidy
 
 The scheme is designed to encourage the development of the Australian book production
industry by providing grants that encourage innovation, business development and skills formation.G/SCM/N/60/AUS/Rev.1
Page 3
 
4. Background and authority for the subsidy
 
 The Appropriation (Supplementary Measures) Act (No.1) 1999 enacted in November 1999
provides authority for the scheme.
 
5. Form of the subsidy
 
 Under the scheme, grants will be awarded competitively on the basis of eligibility and merit
criteria of projects which best meet the objectives of the scheme and comply with the eligibility
critieria.
 
6. To whom the funding is provided
 
 Funding is available to firms involved in the book production process - approximately
70 book printing firms may qualify for assistance, with other firms in the supply/value chain
benefiting from participation in the projects awarded grants under the scheme.
 
7. Level of subsidy per unit
 
 This is a new programme and no funding has been awarded to date.  Grants will not be
dependent on activity or production levels.
 
8. Duration
 
 The scheme will operate from 1 July 2000 and is scheduled to terminate on 30 June 2004.
 
9. Trade effects
Not known.
II. DAIRY
1. Title of the subsidy
 
 Dairy Market Support Scheme
 
2. Period covered by the notification
1999/2000; the scheme terminated on 30 June 2000.  Future notifications will be based on
new support arrangements for dairy introduced on 1 July 2000.
3. Subsidy per unit
Year Manufacturing Milk Production (Ml) Support per litre (cents/litre)
1999/00 8,916.2 0.90458G/SCM/N/60/AUS/Rev.1
Page 4
4. Statistical information
(a) Statistics:
Year Total Milk
Production (ML)Total Product Specific
AMS (A$ million)*Total Dairy Exports
(A$ billion)
1999/00 10,846.9 61.83 2.291
*Aggregate Measure of Support as calculated annually in Australia’s DS:1 Notification to the
WTO Committee on Agriculture.  These are provisional data; final details will be in Australia's
forthcoming DS:1 Notification to the WTO Committee on Agriculture.
(b) Trade Effects:
Levy paid on milk used in the manufacture of dairy products for export is rebated to the
manufacturer.  Exports take place at export parity price and do not benefit from the subsidy.  Australia
is essentially a price-taker on world markets and as such the consumer transfer to milk producers has
had no effect on trade.
III. INVEST AUSTRALIA
1. Title of the subsidy
 
 Invest Australia:  investment incentives
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
  
As of June 2000, in principle agreement was made with one company to purchase a licence to
its proprietary technology and to further develop the technology in Australia.  A payment was also
made to one project under an agreement made in 1998/99.
 
4. Trade effects
Not known.
IV. MACHINE TOOLS AND ROBOTS
The bounty on machine tools and robots was terminated on 30 June 1997.  The payments
made up to and including FY 1998/99 were previously notified.  No payments have been made during
FY 1999/2000 or since.
V. PASSENGER MOTOR VEHICLES
1. Title of the subsidy
 
 Automotive Competitiveness and Investment Scheme (ACIS)
 G/SCM/N/60/AUS/Rev.1
Page 5
2. Period covered by the notification
 
 ACIS will commence 1 January 2001.
 
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 for 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 Investment Scheme.
 
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 and how the subsidy is 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 eligible production; and eligible investments in plant
and equipment.  For other participants, duty credits are earned 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
 
 Benefits under ACIS for each participant will be capped at 5 per cent of its eligible sales for
the preceding year.
 
8. Duration of the subsidy
 
 1 January 2001 to 31 December 2005.
 
9. Trade effects
Not known.
VI. PHARMACEUTICALS
1. Title of the subsidy
 
 Pharmaceutical Industry Investment Programme (PIIP)
 
2. Period covered by the notification
 
 The scheme was introduced on 1 July 1999.
 G/SCM/N/60/AUS/Rev.1
Page 6
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 monopsony purchasing power under the Pharmaceutical
Benefits Scheme which suppresses pharmaceutical prices paid to suppliers.
 
4. Background and authority for the subsidy
 
 The scheme was approved by the Federal Government and announced by the Minister for
Industry, Science and Tourism in April 1997.
 
5. Form of the subsidy
 
 Participating companies are paid higher prices on nominated products supplied to the
Pharmaceutical Benefits Scheme in return for those companies meeting commitments to undertake
eligible activities in Australia, including production value added and research and development.
 
6. To whom the funding is 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 base level of activity.  Benefits will amount to A$300
million over the life of the scheme.
 
8. Duration
 
 The scheme will operate from 1 July 1999 until 30 June 2004.
 
9. Trade effects
Unknown.
VII. SHIPBUILDING
(a)  Shipbuilding Bounty
1- Title
 
 Shipbuilding bounty
 
2. Period covered by the notification
  
1999/2000
 
3. Level of subsidy per unit
Rates of bounty on eligible costs are as follows:
1 July 1999  -  31 December 2000 3 per centG/SCM/N/60/AUS/Rev.1
Page 7
4. Statistical information
Bounty payments under the programme are as follows:
Year $million
1999-00 18.5
Source: Parliamentary Budget Papers and ISR Annual Reports
(b) Shipbuilding Innovation Scheme
1. Title
 
 Shipbuilding Innovation Scheme
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
 
 Expenditure was A$5.53 million
 
4. Trade effects
Not known. The scheme is intended to enable Australian shipbuilders to adopt best practice
product and process technologies.
VIII.  TEXTILES, CLOTHING & FOOTWEAR
1. Title of the subsidy
 
 Textiles, Clothing and Footwear Strategic Investment Programme (TCF SIP) Scheme)
 
2. Period covered by the notification
 
 The TCF SIP Scheme commenced on 1 July 2000.
 
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 Strate gic Investment Programme Act 1999  (No. 182, 1999)
 
5. Form of the subsidy
 
 The programme provides incentives in the form of grants to TCF entities.
 
6. To whom and how the subsidy is providedG/SCM/N/60/AUS/Rev.1
Page 8
 TCF entities must register for the Scheme.  Grants are in respect of new TCF plant/building
expenditure, TCF R&D, TCF production, second-hand TCF plant expenditure and in respect of 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 capped at A$700 million over 5 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.
 
8. Duration of the subsidy
 
 1 July 2000 to 30 June 2005.
 
9. Trade effects
Not known.
IX. WHEAT
1. Title of the subsidy
Tasmanian Wheat Freight Subsidy
2. Period covered by this notification
1999/2000
3. Value of the Subsidy
Period Outlay A$’000
1 July 1999 - 30 June 2000 1,200
Cost per unit value has not been provided as th e financial assistance is based on transportation
costs and not the quantity of wheat delivered to Tasman ia.  An assessment of cost per unit is therefore an
inappropriate measure of assistance in this case.
4. Statistical Information
(a) Statistics:
Year Volume (tons) Assistance (A$ million)
1999/00 Unavailable 1.2
(b) Trade effects:
This is a subsidy to Tasmanian consumers.  The subsidy only applies to the cost of wheat
freight to Tasmania for domestic consumption and not wheat for export.  As a result there is no trade
effect.G/SCM/N/60/AUS/Rev.1
Page 9
SUB-NATIONAL PROGRAMMES
Each of the States/Territories provides an investment attraction/assistance programme (which
are marked with an * asterisk under the individual State/Territory entries) which is designed to attract
investment to and between the States.  The following is an estimate of the aggregated level of funding
for these programmes for the financial year 1999/2000 together with the estimated number of firmsassisted/investment packages offered.  Due to the nature of these programmes (which may involve in
some cases the provision of advisory facilitation services), the funding levels reflect budget figures as
opposed to actual grants paid.  The range of sectors assisted under these programmes is described
under the individual State/Territory entries.
Financial Year 1999/2000
A$ million 88.86
No. of companies/
Packages offered 227
I. AUSTRALIAN CAPITAL TERRITORY
1. A.C.T. Business Incentive Scheme (ACTBIS)*
1. Title of the subsidy
 
 A.C.T. Business Incentive Scheme (ACTBIS)
 
2. Period covered by the notification
  
1999/2000
 
3. Level of subsidy per unit
 
 Assistance approved during FY 1999/2000 was for cash grants, payroll tax waivers, stamp
duty waivers, and land discounts).  Information Technology continued as the major area assisted with
the remainder spread between a diverse range of industries from advanced technology manufacturing
through to winery projects.  See above table for the aggregated State expenditure and the estimatednumber of firms assisted for 1999/2000.
 
4. 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
 
 1999/2000
 G/SCM/N/60/AUS/Rev.1
Page 10
3. Level of subsidy per unit
 
 Expenditure from the fund has assisted companies across a range of sectors including
information technology, finance and call centres.  See above table for the aggregated State
expenditure and the estimated number of firms assisted for 1999/2000.
 
4. Trade effects
The primary objective of this fund is to attract investment to the State in strategic areas.
2. Regional Business Development Scheme
1. Title of the subsidy
 
 Regional Business Development Scheme
 
2. Period covered by the notification
  
1999/2000
 
3. Level of subsidy per unit
 
 Total actual expenditure in FY 1999/2000 for regional assistance (including the Regional
Business Development Scheme) was $22 million.  The estimated number of firms assisted wasapproximately 134.
 Expenditure from the fund has assisted companies across a range of sectors including food
technology, new agricultural products/derivatives, aquaculture, forestry, and wine production.
 
4. Trade effects
Not known.
III. NORTHERN TERRITORY
1. Industry and Business Assistance*
1. Title of the subsidy
 
 Industry and Business Assistance
 
2. Period covered by the notification
  
1999/2000
3. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted in 1999/2000.
 
4. Trade effects
Not known.G/SCM/N/60/AUS/Rev.1
Page 11
IV. QUEENSLAND
1. Queensland Investment Incentives Scheme (QIIS)*
1. Title of the subsidy
 
 Queensland Investment Incentives Scheme
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
See above table for the aggregated State expenditure and the estimated number of firms
assisted in 1999/2000.
4. Trade effects
Financial assistance has been provided to companies in the manufacturing, services (including
call centres and head offices), aviation, transport equipment, and food industries.
2. Queensland Industry Development Scheme
1. Title of the subsidy
 
 Queensland Industry Development Scheme
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
 
 The average grant in 1999/2000 was A$19,685.
 
4. Trade effects
Major sectors receiving assistance in 1999/20 00 included manufacturing, agriculture, mining
and various services.
V. SOUTH AUSTRALIA
1. Industry Investment and Attraction Fund*
 
 1. Title of the subsidy
 
 Industry Investment and Attraction Fund
 
2. Period covered by the notification
  
1999/2000
 G/SCM/N/60/AUS/Rev.1
Page 12
3. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted in 1999/2000.
 
4. Trade effects
Not known.
VI. TASMANIA
1. Investment Attraction Programme*
 
 1. Title of the subsidy
 
 Investment Attraction Programme
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
  
See above table for the aggregated State expenditure and the estimated number of firms
assisted in 1999/2000.
 
4. Trade effects
Not known.
VII. VICTORIA
1. Investment Attraction Programme*
1. Title of the subsidy
 
 Investment Attraction Programme
 
2. Period covered by the notification
  
1999/2000
 
3. Level of subsidy per unit
 
 See above table for the aggregated State expenditure and the estimated number of firms
assisted in 1999/2000.
 
 In 1999/2000, the programme provided assistance to a number of industry sectors including
automotive; textiles, clothing and footwear; other manufacturing; service industries and
telecommunications.
 G/SCM/N/60/AUS/Rev.1
Page 13
4. Trade effects
Not known.
VIII.  WESTERN AUSTRALIA
1. Industry Incentive Scheme*
1. Title of the subsidy
 
 Industry Incentive Scheme
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
  
Sectors which received benefits under this programme in 1999/2000 included the
communications sector and the fibre sector.  See a bove table for the aggregated State expenditure and
the estimated number of firms assisted in 1999/2000.
 
4. Trade effects
Not known.
2. Industry Relocation Scheme
1. Title of the subsidy
 
 Industry Relocation Scheme
 
2. Period covered by the notification
 
 1999/2000
 
3. Level of subsidy per unit
  
No payments have as yet been made under this scheme.
 
4. Trade effects
Not known.
__________