Government Assistance to Industry
Media release
Issued with Trade and Assistance Review 2010-11 on 6 June 2012.
See also
In 2010-11, Australian Government budgetary outlays, tax concessions and import tariffs provided Australian industry with $17.7 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 $9.8 billion in aggregate.
Trade and Assistance Review 2010-11 sets out the Commission's latest estimates of the Australian Government's assistance to industry. It also documents recent industry and trade policy announcements, and developments relating to industry assistance.
The textiles, clothing and footwear and the automotive industries remain the most highly assisted activities, although assistance to both groups has declined more rapidly than for manufacturing as a whole following recent further tariff reductions.
The Review notes that, since May 2011, the Australian Government has announced over $700 million in industry assistance proposals. This support relates to traditional forms of Government assistance and is targeted to forestry, rural activities, and research and development and innovation. In addition, the Australian Government announced the Clean Energy Future Plan, involving budgetary support to industry over several years amounting to around $28 billion, a large part of which is compensation for the imposition of a price on carbon emissions.
The Review also reports on Australian Government budgetary measures that have provided adjustment assistance to business since 1996-97. The Commission has identified 70 budgetary measures totalling around $22 billion (in present day values) in adjustment support. This adjustment assistance represents about 20 per cent of estimated total budgetary assistance to industry over the 16-year period to 2010-11. The Commission indicated that a more detailed assessment of past schemes would assist in designing future programs.
Background information
Wayne Crook (Research Manager) 02 6240 3295
Requests for comment/other
Clair Angel (Media and Publications) 02 6240 3239 / 0417 665 443