Trade and assistance review 2009-10

• Productivity Commission

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17 June 2011In 2009-10, Australian Government budgetary outlays, tax concessions and import tariffs provided Australian industry with $17.3 billion in assistance in gross terms, according to this latest annual review.

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.  According to the review, In 2009-10, Australian Government budgetary outlays, tax concessions and import tariffs provided Australian industry with $17.3 billion in assistance in gross terms. After allowing for the cost impost of import tariffs on industries using goods as inputs, the net assistance received by industry was estimated at $9.3 billion.

The Review notes that, since May 2010, the Australian Government has announced around $700 million of industry assistance expenditure proposals. Nearly half of the proposed expenditure ($370 million) relates to carbon emission reduction and energy programs. The remainder (over $300 million) relates to more traditional forms of Government support. This support is targeted at primary, manufacturing and service industries, as well as research, development and innovation.

The Review provides an updated picture of state and territory government assistance to industry. Expenditures by these governments on programs and services identified as supporting industry policy objectives are estimated at around $4.1 billion. These expenditures include grants and subsidies, marketing and promotion, and agricultural research as well as employee and administration costs.