WORLD TRADE
ORGANIZATIONG/AG/N/AUS/44
13 September 2002
(02-4853)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notifications concerning new or modified domestic support measures exempt
from reduction ( Table DS:2 ) were received from the delegation of Australia on 2 September 2002.G/AG/N/AUS/44
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Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:  Sugar Industry Assistance Package – Decoupled Income Support
(2) Domestic legislation:   Nil
(3) Detailed description of measure with reference to criteria:
The package was provided in response to an unusual combination of circumstances.  These
include the impacts of low world prices caused in part by high support and protection policies
in other countries, adverse weather conditions and damage to sugar production caused byorange rust and rat plagues.
Given the circumstances, the Government decided to provide a welfare payment to help sugar
producers to meet their living expenses.
This programme is exempt from reduction commitments consistent with paragraph 6 –
Decoupled Income Support – of Annex 2 of the Agreement on Agriculture and its criteria asfollows:
Annex 2, para. 6 a) Eligibility criteria:To be eligible for income support payments, the recipient must have been a sugar cane
producer for two years prior to lodging the claim. The recipient must also have a right or
interest in the land used for the purpose of a sugar industry enterprise and must meet two ofthe following criteria:
1. Contribute a significant part of his/her labour to the sugar industry enterprise
2. Contribute a significant part of his/her capital to the sugar industry enterprise
3. Derive a significant part of his/her income from the sugar industry enterprise
To receive this welfare payment, the recipient must also undergo strict income and asset tests,
consistent with those of the Newstart Allowance (the Australian unemployment benefit).
Annex 2, para. 6 b), c) and d)    Basis of Payments:
Payments are made at a set rate equivalent to the Newstart allowance plus rent assistance
(where applicable), and are assessable for income tax purposes. Payments are not conditional
on production, prices, or factors of production.
Annex 2, para. 6 e)  Production requirement:
No specified level of production is required to qualify for the payment.
(4) Cost of measure:  $37.68 million.
(5) Date of entry into effect:   September 2000G/AG/N/AUS/44
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(6) Period of application:   September 2000 to December 2001
(7) Products to principally benefit (if any individual product(s)):  Sugar
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