IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

Local operations

On 6 October 2011, Australian Prime Minister Julia Gillard announced the extension of the Australian Industry Participation (AIP) program by the end of the year. According to the Prime Minister, this program shall be expanded to lower level government as well as an import tax credit sheme. The AIP program requires applicants to government tenders to give details on the participation of Austrlian companies in projects exceeding a certain threshold value.

 

Speaking at a jobs forum in Canberra, the Prime Minister stated

"'...' I announce that the Government will move to extend the requirement of Australian Industry Participation Plans for Federal Government grants of $20 million or more, and for grants of $20 million or more to the states and territories where they do not apply their own industry participation plans.

We already require these plans for our own major procurements, the Commonwealth's major procurements, and we will now work with states and territories to ensure Australian suppliers have opportunities to compete for projects and work."

 

With respect to the import tax credit scheme, she continued

"In addition, the Government will also extend opportunities forAustralian industry participation in the enhanced project by lawsscheme. Now, this is a tariff concession scheme that provides eligibleprojects with relief from a five per cent general tariff that applies toimported goods. To be eligible for this concession, major projects haveto provide Australian industry with an opportunity to compete for work,but there have been criticisms of the operation of this scheme, and weintend to tighten it so it works better to provide Australianmanufacturing with opportunities.

We will be requiring more comprehensive evidence of opportunities beingprovided to Australian industry. We will be requiring projectproponents to list opportunities for Australian industry to participatein major projects on a public website."

 

In order to accomplish the stated extensions, Ms Gillard announced the formation of a working group that shall produce results before the end of 2011.

 

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