IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 05 Dec 2008 | Removal date: open ended
Still in force

Loan guarantee

 As reported by the OECD: "In December 2008, Australia announced the establishment of a Special Purpose Vehicle (SPV) with the support of leading Australian banks to provide liquidity to car dealer financiers who have encountered financing difficulties as a result of the global financial crisis. These include four major banks-ANZ, Commonwealth Bank of Australia, National Australia Bank, and Westpac-as well as other organisations, including Alphera Financial Services (a division of BMW Group), Capital Finance, Esanda, Nissan Finance, and St George. The Government will provide support to the SPV in the form of a guarantee that it expects to cover only a minor proportion of the securities issued. The SPV will provide critical wholesale floor-plan financing to commercially viable car dealerships that used to be financed by GE Money Motor Solutions or GMAC, both of whom had announced an intention to exit the Australian dealer floor-plan financing market."


The SPV fund was initially expected to involve A$2bn (subsequent estimates were revised down by approximately three-quarters). While the funds were to be provided by four Australian banks, advised in some cases by foreign banks, the Government of Australia backed the fund with its sovereign AAA credit rating. Legislation was enacted in June 2009 to codify the scheme.
The extension of the sovereign credit rating to this privately-financed scheme constitutes state aid. Moreover, the state aid is selective in application and almost certainly likely to affect the conditions of competition in the market for automobiles in Australia. As that market can be supplied through imports or through production by subsidaries of foreign multinationals located in Australia then certain foreign commercial interests are likely to be affected adversely by this measure. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

435 Lifting & handling equipment & parts
8709 Works trucks, selfpropelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the fore
870911 Electrical
870919 Other
441 Agricultural or forestry machinery & parts
8701 Tractors (other than tractors of heading 87.09).
870130 Tracklaying tractors
870190 Other
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
870490 Other
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile wor
870510 Crane lorries
870520 Mobile drilling derricks
870530 Fire fighting vehicles
870590 Other
8706 Chassis fitted with engines, for the motor vehicles of headings 87.01 to 87.05.
870600 Chassis fitted with engines, for the motor vehicles of headings 87.01 to 87.05.
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870810 Bumpers and parts thereof
870830 Brakes and servobrakes; parts thereof
870840 Gear boxes and parts thereof
870850 Driveaxles with differential, whether or not provided with other transmission components, and nondriving axles; parts thereof
870870 Road wheels and parts and accessories thereof
870880 Suspension systems and parts thereof (including shock absorbers)
870891 Radiators and parts thereof
870892 Silencers (mufflers) and exhaust pipes; parts thereof
870893 Clutches and parts thereof
870894 Steering wheels, steering columns and steering boxes; parts thereof
870895 Safety airbags with inflater system; parts thereof
870899 Other
492 Motor vehicle bodies; trailers & parts thereof
8707 Bodies (including cabs), for the motor vehicles of headings 87.01 to 87.05.
870710 For the vehicles of heading 87.03
870790 Other
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870821 Safety seat belts
870829 Other

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