The review contains the latest estimates of Australian Government assistance to industry, and provides a summary of developments in industry assistance, trade policy and foreign investment over the past year. The report finds that continuing to advocate for free and open trade and looking for opportunities to lower tariffs would be the best responses to changes in global trade policy.

The Government has already taken action to remove 457 nuisance tariffs. This report identifies a further 315 ‘urgent priority’ tariffs which impose a high compliance burden and generate little policy or revenue benefit.

Modelling shows that proposed United States (US) trade policy measures will have a marginal direct impact on the Australian economy, but the risks and uncertainty they have brought about may have far reaching costs. The modelling results suggest that cheaper imports from the rest of the world, and an outflow of productive capital from the US and highly tariffed economies, would slightly increase Australian production.

The report also looks at the growing role of industry policy in the Australian economy, particularly through the Australian Government’s Future Made in Australia agenda.

The report is accompanied by a methodological annex and assistance estimates.