SUBSIDIES

The following communication, dated and received on 1 December 2025, is being circulated at the request of the delegation of Australia.

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Australia thanks India for its follow-up questions regarding the 2023 new and full notification of Australia and provides the following information in response.

Fisheries Research and Development Corporation Investment Funding

Question 1

Given that the FRDC provides co-funded grants to both public and private entities, including businesses and individuals, how does Australia ensure that such funding does not indirectly enhance fishing capacity or increase fishing effort?

Reply:

The FRDC does not strictly provide grants, they invest in research, development and extension. Their investments are guided by what is required by end-users and these conversations and decisions are made in forums made up of both industry and government stakeholders, as well as others.

The role and remit of the FRDC is funding science to improve the environmental and economic sustainability of fisheries, directly in line with fisheries policy and legislation across Australian jurisdictions. This is delivered to a number of end-users including government and the fishing industry. Importantly the FRDC role is specifically restricted to funding science and they do not fund capital items, two key items which ensure fishing capacity and effort are not increased beyond sustainable limits through research activities.

Australia manages this risk through statutory and operational safeguards embedded in FRDC's funding framework:

·_        Balanced Research, Development and Extension (RD&E) Investment Approach: FRDC's Statutory Funding Agreement under the Public Governance, Performance and Accountability Act 2013 requires that RD&E funds are used for research, development, and extension—not for marketing or activities that increase fishing capacity. The investment portfolio is structured to balance short-, medium-, and long-term priorities.

·_        Alignment with Sustainability Outcomes: All projects must align with FRDC's R&D Plan outcomes, which include best practices and production systems, fair and secure access to aquatic resources and community trust. These outcomes prioritise ecological sustainability and stewardship.

·_        Policy Integration and Monitoring: FRDC projects often involve fisheries managers and policymakers to ensure findings are integrated into management frameworks. For example, research on calamari stock sustainability explicitly supports adaptive management and policy recommendations.

·_        International Context: Australia's approach aligns with global best practice under WTO disciplines on fisheries subsidies.

Question 2

Could Australia specify what proportion of the FRDC's AUD 33 million investments in 2022‑2023 was directed toward projects related to capture fisheries versus aquaculture?

Reply:

For the year 2022-2023 around 50% of investment was in capture fisheries with around 30% in aquaculture, the remainder was in recreational fishing and Indigenous fishing. Most projects funded by the FRDC run for 2 – 3 years with payments throughout and so these numbers vary. If we look across the last decade or so investment in capture fisheries vary between about 40% and 50% and aquaculture 30% to 40%. Overall there is an upward trend in the percentage investment to aquaculture and a decrease to the percentage of capture fisheries as the value and volume of product from aquaculture increases.

Question 3

What monitoring or reporting mechanisms are in place to ensure that research outcomes funded under the FRDC do not lead to expansion of fishing in already fully exploited or overfished stocks?

Reply:

A keystone project for the FRDC and one which strategically informs all their projects is the Status of Australian Fish Stocks (https://www.fish.gov.au/). This is a nationwide standardised fishery status reporting project. This is conducted every two years to understand the status of a wide range of Australian fishery stocks.

FRDC research is informed by a range of stakeholders and key to much of the FRDC funded research is to ensure environmental sustainability of not just target stocks but other ecological elements including bycatch and protected species.

Australia uses multi-layered monitoring and compliance systems:

·_        Project-Level Controls: FRDC requires milestone reporting, progress reviews, and final reports for every funded project. Deliverables include evidence of alignment with sustainability objectives and risk management protocols.

·_        Governance and Compliance: Under the Statutory Funding Agreement, FRDC must maintain systems of risk and control to prevent misuse of public resources. This includes independent audits and alignment with Commonwealth fisheries management plans.

Fisheries Assistance and User Engagement Package

Question 4

Under the Fishing Business Assistance Grants, could Australia elaborate on the criteria used to determine eligibility and the basis for compensation amounts?

Reply:

The Fishing Business Assistance Grants used statutory fishing data and a formula to calculate individual assistance amounts equal to an estimated five years of foregone profits. Full detail on eligibility and the calculation methodology is available in: https://australianmarineparks.gov.au/static/4e40525e5958e79f74b3086fa3b594ac/amp-fishing-business-assistance-grant-guidelines-november-2025.pdf.

Question 5

Does the Vessel Monitoring System Assistance component involve subsidizing equipment or installation costs? If so, could Australia specify the percentage of cost covered and whether this is extended to all vessels or specific fleets?

Reply:

This program was delivered through state and territory governments, who manage a range of commercial fisheries in Australian waters. The details of what was delivered varied between jurisdictions and in some cases included funding for equipment and/or installation. More details are available at: _https://australianmarineparks.gov.au/about/fisheries-assistance/electronic-vessel-monitoring-systems-assistance-program/

Question 6

The notification mentions an AUD 35 million allocation over the life of this package. Could Australia share how much of this support went directly to commercial fishers versus non‑commercial (e.g., recreational or Indigenous) users?

Reply:

AUD 9.47 million was provided directly to commercial fishers under the Fishing Business Assistance Grants program. AUD 4 million was provided to commercial fishing industry organisations and AUD 665,000 to a recreational fishing industry organisation for projects to support sustainable fishing and conservation outcomes in the context of Australian Marine Parks through Our Marine Parks Grants Round 1 (details here: _https://australianmarineparks.gov.au/management/partnerships/our-marine-parks-grants/grants-round-one/). AUD 5.5 million was provided to state and territory governments to support Vessel Monitoring Systems in commercial fisheries they manage. Around AUD 1.8 million supported the Coral Sea Fishery Licence Buy-out program. The remainder of the AUD 35 million supported other marine park management measures.

Question 7

Could Australia clarify whether the Coral Sea Fishery Licence Buy-out program involved permanent withdrawal of fishing capacity, and if so, how the government ensures that equivalent capacity is not reintroduced elsewhere?

Reply:

This program involved the permanent removal of fishing capacity – under the marine park management arrangements, there is no viable area into which equivalent capacity could be reintroduced.

South East Trawl Fishery Structural Adjustment Package

Question 8

The package includes a partial waiver of AFMA levies for remaining fishers. Could Australia clarify whether these waivers are considered income support or cost-reduction measures, and how they are classified under the WTO framework?

Reply:

The partial AFMA levy waiver was a cost-reduction measure to reduce expenses for fishers impacted by fishery closures and total allowable catch reductions in the South East Trawl fishery. This is considered government revenue that was forgone or not collected and meets the definition of a subsidy under Article 1 of the Agreement of Subsidies and Countervailing Measures.

Question 9

The package includes a partial waiver of AFMA levies for remaining fishers. Could Australia clarify whether these waivers are considered income support or cost-reduction measures, and how they are classified under the WTO framework?

Reply:

As above.

Question 10

What safeguards are in place to prevent fishers who have benefited from the buy-back from re-entering the fishery or investing in other fisheries, thereby undermining the intended sustainability benefits?

Reply:

The Australian Government purchased the surrender of boat Statutory Fishing Rights. A boat Statutory Fishing Right permits a particular vessel to operate in a fishery and once surrendered, cannot be reissued. This has the effect of permanently reducing the number of vessels operating in a fishery.

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