Australian farming is now more protected and subsidised than manufacturing, after drought relief and other handouts have lifted the effective rate of protection to almost 6%, the Productivity Commission reports.
The commission estimates that Australians pay $5.90 in taxes and higher prices to support every $100 worth of farm produce that is grown here rather than imported. The subsidy is highest with dairy products, where the effective protection rate is 15.1%.
While the assistance rate for primary production has risen from 3.6% to 5.9% since the 2002 drought, assistance for manufacturing has declined from 5.1% to 4.5%, the commission estimates, with significant falls in support for the vehicle manufacturing and TCF sectors.