The Productivity Commission is required to report annually on industry assistance and its effects on the economy. Trade & Assistance Review 2007-08 contains the Commission's latest quantitative estimates of Australian Government assistance to industry. It also examines recent developments in assistance for different sectors of the economy, including government measures aimed at reducing carbon emissions, and discusses international policy developments affecting Australia's trade. In 2007-08, Australian Government assistance to industry amounted to $17.5 billion in gross terms. After allowing for the cost impost that tariffs for some industries place on other industries through higher input prices, net assistance to industry was estimated at $9.4 billion. • The value of tariff assistance alone was $9.2 billion, predominantly to manufacturing industries. These tariffs also imposed a cost penalty throughout the economy estimated at $8.1 billion. • Budgetary outlays provided around $4.7 billion in industry assistance, and tax concessions a further $3.6 billion. Tariffs primarily benefit the manufacturing sector. Mining and primary production receive little tariff assistance, and tariffs are not levied on services. Thus the impact of the tariff regime on these industries is generally negative
