Subsidies Under the Future Made in Australia Act Could Continue Forever: Productivity Commission

Without a clearly defined exit strategy, taxpayers could end up subsidising some industries forever, the Commission’s chair warns.

Productivity Commission Chair Danielle Wood is seen during a panel discussion at the Australian Financial Review Business Summit, in Sydney on March 12, 2024. AAP Image/Bianca De Marchi

Productivity Commission chair Danielle Wood has cautioned that subsidies established under the Future Made in Australia Act, announced by the Prime Minister on April 11, could continue forever without a well-defined exit strategy.

She said that clearly, the government is responding to significant global changes, shifts in geopolitics, and the pressure to decarbonise economies.