Government Assistance to Industry

In 2008-09, Australian Government budgetary outlays, tax concessions and import tariffs provided Australian industry with $17.2 billion in assistance in gross terms, according to the latest annual review by the Productivity Commission. After allowing for the cost impost of import tariffs on industries using goods as inputs, the net assistance received by industry was estimated at $9.0 billion.

Trade & Assistance Review 2008-09 sets out the Commission's latest estimates of assistance to industry that is provided by the Australian Government. It also documents recent policy announcements and developments.

While tariff assistance has declined significantly in recent years, budgetary assistance to industry has been increasing.

The Review identifies industry assistance that has been announced since May 2009. This involves proposed budget outlays of around $6.2 billion, most of which are planned to be expended over the next five years. The bulk of the proposed expenditure ($4.6 billion) relates to carbon emission reduction and energy efficiency programs. The remainder ($1.5 billion) relates to 'traditional' forms of support to primary, manufacturing and service industries, as well as for exports, research and development and innovation.

In response to the global financial crisis, the Australian Government implemented a number of measures aimed at maintaining finance sector liquidity and bolstering confidence. In addition to reporting on these temporary measures the Review indentifies a range of ongoing tax concessions that benefit the finance sector.