Federal Govt paid industries $17b in subsidies

THE Federal Government spent more than $17 billion on subsidies for various industries in 2011-12, a Productivity Commission trade report has found.

Released on Wednesday, the report found after allowing for the cost impost of import tariffs, the government still paid industry about $10.5 billion in subsidies.

Most of the $10.5 billion was direct spending from the federal budget and tax concessions, to the tune of $9.4 billion, with net tariffs came to about $1.1 billion.

The effective rate of subsidies for manufacturing and agriculture was 4% and 3% respectively, while the car, textiles, clothing and footwear industries were subsidies by about 9% and 7% respectively.

In May 2012, the government also announced a further $430 million in subsidies for industries, primarily for fishing, car manufacturing, tourism and carbon emission reductions over the next five years.

The commission reported industry assistance in 2011-12 was about $400 million less than the previous year, with falls in tax breaks for small business and drought relief payments for farmers.



Police ready for Splendour crackdown

Police ready for Splendour crackdown

Police set to target illegal drug users and dangerous drivers.

Four things to do this week

Four things to do this week

Looking for something to do?

Rising water costs sending salon profits down the drain

Rising water costs sending salon profits down the drain

"It feels like a discrimination against small business”

Local Partners