State, Territory and Local Government Assistance to Industry

About the Inquiry

The Industry Commission was asked to report on assistance to Australian industry from State, Territory and Local Governments and their instrumentalities. In particular it was to examine:

• measures where the primary purpose is to assist or attract industry and overseas investment, including tax concessions, land acquisition and general trade and investment promotion;
• the extent of Commonwealth assistance to industry and its relationship to State, Territory and Local Government assistance to industry;
• the impact of State, Territory and Local Government competition for industry, including its impact on Government finances, on mobile investment and the efficient allocation of resources across the economy; and
• an assessment of the net benefits derived by each State and Territory from such assistance, including identifying the key determinants of where they have been successful and detailing the methodology for assessing net benefit;