Trade and Assistance Review 2009-10

Annual report series

Trade and Assistance Review 2009-10 was released on 16 June 2011. The review contains the Commission's latest quantitative estimates of Australian Government assistance to industry.

The Review also:

  • identifies recent developments in assistance to industries and sectors of the economy
  • reports on selected expenditures by State and Territory governments affording assistance to industry
  • reports on recent international policy developments affecting Australia's trade and disputes settlement in the global trading system.

An errata has been issued with the printed copy of this report - documents available below are correct.

On 2 September 2013, a corrigendum was issued for this report - documents available below are correct.

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  • Government assistance to industry is provided by tariffs, budgetary outlays, taxation concessions, regulatory restrictions on competition and other measures.
    • Assistance generally benefits the industry receiving it, but can come at a cost to other industries, taxpayers and consumers.
    • Some assistance programs, such as those relating to R&D and environmental objectives, can deliver net community benefits if they are well designed and effectively implemented.
  • For 2009-10, total measured assistance to industries was $17.3 billion in gross terms and $9.3 billion in net terms.
    • It comprised $9.4 billion in tariff assistance, $3.7 billion in budgetary outlays and $4.1 billion in tax concessions.
    • The cost to industries of tariffs on imported inputs amounted to $8.0 billion.
  • In the 12 months prior to the May 2011 Budget, the Australian Government announced budget outlays affording industry assistance of around $700 million, mostly to be expended within five years.
    • Nearly half of the proposed expenditure ($370 million) relates to carbon emission reduction and energy programs.
    • The remainder (over $300 million) relates to 'traditional' forms of Government support to industry, research and development and innovation.
  • Following the 2010-11 floods and other natural disasters, the Australian Government announced changes in funding arrangements for existing programs and new funding to support regions and businesses affected by natural disasters.
    • Concurrently, the Australian and Queensland governments announced $5.6 billion in support for recovery and reconstruction from floods in Queensland.
    • To help fund recovery and rehabilitation work, the Australian Government announced it would terminate certain industry programs, including the Green Car Rebate Scheme and the Green Car Innovation Fund, saving around $1 billion.
  • State and Territory government expenditures on programs and services identified as supporting industry policy objectives are estimated at around $4.1 billion in 2008-09.
    • These expenditures include not only grants and subsidies, marketing and promotion and agricultural research but also employee and administration costs.
    • Programs relating to primary industries and resources account for about 60 per cent of this expenditure.
  • In April 2011, the Australian Government released a major Trade Policy Statement that responded, amongst other things, to the Commission's report on bilateral and regional trade agreements.
    • The Government endorsed the broad approach favouring domestic reform and non-discriminatory provisions in trade agreements, as well as transparent evaluation processes.

Printed copies