Committee on Subsidies and Countervailing Measures - Subsidies - Replies to questions posed by Indonesia regarding the new and full subsidy notification of Australia

SUBSIDIES

REPLIES TO QUESTIONS POSED BY INDONESIA[1] REGARDING
THE NEW AND FULL SUBSIDY NOTIFICATION OF AUSTRALIA[2]

The following communication, dated and received on 15 August 2025, is being circulated at the request of the delegation of Australia.

 

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Question 1

3 FORESTRY

3.1 Support Plantation Establishment Program

a._    How does the program aim to increase Australia's future timber supply and reduce reliance on imported timber markets?

b._    Is there an opportunity for Australia to leverage these newly planted forests as an export potential in addition to meeting domestic needs?

c._    Who is eligible to receive grants under this program, and what are the co‑contribution requirements for applicants?

Reply:

a._    The program aims to increase Australia's future timber supply by supporting the establishment of new long-rotation softwood and hardwood plantation forests in Australia with grant funding.

b._    The objective of the program is to increase future plantation forest resources in response to the projected growth in demand for timber resources domestically. The plantations established under the program are neither required to export nor to reserve timber for domestic use, and as a result they do not target any specific markets.

c._     Grants are open to Australian private industry, First Nations businesses, farm foresters and state and territory government forestry bodies.

Grantees are required to provide a co-contribution at least equal to the grant amount awarded.

 

Question 2

10 NORTHERN TERRITORY

10.1 Industry Support Grant program

a._    Since the program is ongoing, could you provide detailed information on the sectors or industries that have benefited from the Industry Support Grant Program thus far?

b._    Additionally, how are these sectors selected or prioritized for funding?

 

Reply:

a._    The Industry Support Grant Program is an ongoing initiative that provides financial support to Northern Territory-based industry associations and peak bodies to enhance capability development, advocacy, and services that benefit these industry associations’ members. The program is not limited to specific sectors, and funding allocations vary year-to-year based on eligible applications received.

The following information outlines sectoral support for the financial years 2021–22 and 2022–23:

 

·_        2021–22: Total of AUD 4,786,693.30 disbursed. Funded sectors included:

o_     Agriculture, Forestry and Fishing

o_     Arts and Recreation Services, and

o_     Education and Training.

·_        Non-sector specific (cross-cutting initiatives):

o_     Public Administration and Safety, and

o_     Retail Trade.

·_        2022–23: Total of AUD 5,625,608.80 disbursed. Funded sectors included:

o_     Agriculture, Forestry and Fishing

o_     Construction

o_     Education and Training, and

o_     Non-sector specific (cross-cutting initiatives).

b._    The Industry Support Grant Program does not pre-select or prioritise specific sectors. Applications are considered on an ad-hoc, case-by-case basis, with each proposal assessed on its individual merit and alignment with broader Northern Territory Government economic development priorities.

These include fostering regional economic development, enhancing workforce capabilities, promoting innovation, and facilitating policy development through representative bodies. The program operates on a merit-based process and is open to all eligible industry representative bodies.

 

The program is open and responsive to requests received and is not structured to favour any industry, product, or commercial outcome. Successful grants under the program are managed via a formal grant agreement, with funding contingent on key deliverables, key performance indicators and reporting requirements being met within agreed timeframes. All decisions are guided by transparent governance and compliance arrangements, and do not confer benefits contingent on trade performance or market share. This structure ensures the program is responsive to industry need and does not confer undue advantage or protection to any specific enterprise or sector, consistent with Australia’s obligations under the WTO and relevant Free Trade Agreements.

 

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[1] _G/SCM/Q2/AUS/71

[2] _G/SCM/N/401/AUS