Enhanced Project By-Law Scheme (EPBS) Fact Sheet 

Objective

Support the major investment projects in Australia, by providing relief from customs duty on certain capital items while encouraging the involvement of Australian industry in those projects and in global supply chains.

Significance for Australia

The Enhanced Project By-law Scheme (EPBS) provides concessions from tariff duty for eligible goods for inclusion in projects, where expenditure on capital goods for the project is $10 million or more. Applicants must produce an approved Australian Industry Participation Plan (AIP) under which they provide Australian suppliers with full, fair and reasonable opportunity to participate in major projects. The EPBS assists Australian industry by:

• encouraging and enhancing investment in world class operations in Australia;
• encouraging Australian industry involvement in supplying goods and services;
• lowering input costs for industry where there are sound reasons for doing so; and
• facilitating Australian industry participation in domestic and international supply chains.

The EPBS covers projects in a range of industries and provides concessions in respect to a wide range of goods.  The definition of eligible goods includes machinery and equipment, or their components, which are integral to the project and not produced in Australia in the normal course of business, or are technologically superior to, or more efficient or more productive than, the Australian made product. The EPBS removes the need to obtain multiple concessions from the Australian Customs Service. The Scheme ensures Australia remains a competitive and attractive option for major international investment.

Departmental role and current achievements

The Department monitors the EPBS and provides policy advice to ensure its effective operation and administration by AusIndustry, the Department’s program delivery arm.  Since 1 July 2007, AusIndustry also administers the assessment of AIPs — a role undertaken up to that time elsewhere in the Department.  From 1 July 2006, the Scheme includes major power and water projects.

So far in 2007-08, AusIndustry has received 50 EPBS applications for new major projects, with a combined value of more than $35.4 billion. Since the scheme’s inception, AusIndustry has received 398 applications worth more than $179 billion. Major users of the program include the mining sector with projects worth $87 billion, gas supply projects worth $23 billion, resource processing worth $22 billion, water supply projects worth $21 billion and the manufacturing sector worth $15 billion.

Targets for 2008-09

• Although targets are difficult to set due to the nature of the scheme which is demand driven the Department expects the EPBS in 2008–09 to receive around 50 new project applications with a projected $60 million in tariff concessions granted to eligible projects.

For further information

Phone: AusIndustry hotline, 13 28 46 (within Australia)
Phone: +61 2 6213 7802 (International)
Email: hotline@ausindustry.gov.au

Web: www.innovation.gov.au
Web: www.ausindustry.gov.au 

May 2008