The newly elected Labor government has announced two new literary prizes worth $100,000 each.

From 2008 the Prime Minister's Literary Prize will be awarded for a work of fiction and another for a work of nonfiction. In addition to the two new prizes, a budget of $100,000 has been allocated to promote and administer the prizes.

The Australian Society of Authors (ASA) welcomed the news that the prize money would be tax-free, saying in a statement that it was ‘a policy the organisation has been encouraging the government to adopt for all awards and grants to creators.'

The new prizes will be the richest in Australia and among the world's richest literary awards, following the International IMPAC Dublin Literary Award and the Man Booker Prize.

While details are not finalised, the Australian reports that it's likely ‘the "aspects of Australian life" qualification of the [Miles Franklin award] will not apply.'

‘It is anticipated that the award will be open to Australian writers working anywhere in the world, and writing on any topic,' said the ASA in its statement.

Three judges will be appointed for each category by the Arts Minister Peter Garrett. The judges will then make recommendations to the Prime Minister.

This article from Australian Bookseller & Publisher magazine is reproduced by kind permission of Thorpe-Bowker, a division of R R Bowker LLC. © Copyright 2007, Thorpe-Bowker