An Introduction to Arts, Culture and Creativity
This evidence-based resource explains how arts and culture directly and positively impacts our nation’s society and economy. It helps us to understand the value and opportunity of culture and creativity to people and communities, no matter who or where they are.
- 01 What is arts, culture and creativity?
- 02 How is the arts and culture system organised?
- 03 Why is arts and culture important?
- 04 The impacts of arts, culture and creativity
- 05 How do Australians engage with arts and culture?
- 06 Who invests in arts and culture?
- 07 How can Australia secure its place as a cultural powerhouse?
01 What is arts, culture and creativity?
From games to dance classes, festivals to fashion shows, architecture to archaeological displays – cultural and creative experiences are woven into everyday life in Australia.
Arts, culture and creativity is the inclusive and broad umbrella term ANA uses to describe a range of activities, such as attending cultural events and venues, creating or performing something, and engaging with cultural and creative content in your home. It also refers to activities performed in industries and occupations such as advertising, design and architecture.
This broad definition is informed by our knowledge that Australia’s culture has been uniquely shaped by Aboriginal and Torres Strait Islander peoples, by the generations of people born in this place, and by the people from all around the globe who have made this place their home.
02 How is the arts and culture system organised?
The arts, culture and creativity system in Australia is fast evolving, but our research reveals it is more organised than we may think.
It has three main structures: creation and production; dissemination and consumption; and preservation and transmission. These exist across all the different cultural and creative activities, generating and guaranteeing goods, services, and experiences.
The arts, culture and creativity system in Australia: How it ticks, p 5.
Who governs the system?
The arts, culture and creativity system in Australia has three types of governance structures – government, industry and non-government, and civil society – which provide direction, control and accountability.
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Government |
Industry and non-government entities |
Civil society |
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Organisations owned or controlled by any of Australia’s three levels of government, or within international political systems. Cultural and creative activities do not have a single, centralised government regulator. |
Organisations not owned or controlled by government, such as industry associations. Non-government institutions strongly influence the arts and culture system’s governance, with new forms of accountability emerging. |
Individuals and communities not defined by a specific legal structure or operating model. Cultural and creative experiences change based upon societal norms, trends and new directions of the people within it. |
How are skills developed in the system?
The arts and culture system includes the different ways people gain and develop cultural literacy and creative skills, both in the general population and within cultural and creative industries.
This skill-building occurs through education, training and practice, starting with a broad base in everyday settings.
The arts, culture and creativity system in Australia: How it ticks, p 29.
These models can help us better understand the arts, culture and creativity system, and show our place in the interconnected whole. This can help us work better, together, to generate measurable cultural, social, and economic value.
What policies are in place to support the system?
At the government level, cultural policies shape the environment in which our creators and cultural organisations operate and help to enable access to cultural and creative experiences for people and communities.
Currently, Australia is in an unprecedented position, with cultural policy in place at every level of government in the nation – federal, state and territory, and local.
03 Why is arts and culture important?
Australians engage with arts and culture for enjoyment, expression, inspiration and connection. In fact, arts and culture are proven drivers of our economic resilience, social cohesion, national productivity and global connection.
What do Australians think?
Everyday Australians believe arts and culture is a transformative presence in their lives and in their communities. They report arts and culture to be embedded in and inseparable from life at every age and every stage.
They have told us that arts and culture:
- is essential to being human
- drives wellbeing and connection
- fosters imagination, expression and innovation
- is a foundation of community.
These insights come from ANA’s rigorous three-year, national focus-group study that asked middle Australians what they think about arts and culture. Covering every state and territory, we spoke with people aged 18 to 75 from low-to-middle income households living in suburban and regional areas, who did not work in arts and culture and were politically unaligned.
Essential to being human
Everyday Australians told us that a world without arts and culture would be ‘colourless’, ‘depressing’, ‘uninspiring’ and ‘like a totalitarian state’ or an ‘authoritarian’ nation’.
As one participant said, without arts and culture: ‘You may as well live on Mars.’
Drives wellbeing and connection
Everyday Australians told us that arts and culture has a direct, positive impact on their ability to stay healthy, understand others and accept differences. They said arts and culture helps them to cope with disruption, recover from trauma and address loneliness and isolation.
Fosters imagination, expression and innovation
Everyday Australians told us that arts and culture helps them to be open to new ideas and inspired by new ways of thinking. They said access to arts and cultural experiences helps them adapt to change, including to the skills, careers and industries of the future.
Foundation of community
Everyday Australians told us that arts and culture is a foundation of community and part of being Australian. They recognised that arts and culture can strengthen national belonging and pride as well as foster understanding across national divides.
04 The impacts of arts, culture and creativity
The personal benefits of culture and creativity are well recognised. But evidence shows a rich cultural life also delivers significant economic and social benefits to the Australian community.
Arts and culture helps us to live well, together. It enhances productivity, fosters connection, promotes safety, supports health and influences sustainability. We can use arts and culture to respond to our nation’s deepest cultural, social and economic challenges.
Our research demonstrates that arts and culture:
- enhances our prosperity by increasing local and national incomes, job satisfaction and educational aspiration
- strengthens our cohesion by fostering individual and community identity, connection and belonging
- increases our security by supporting active citizenship and democratic participation
- supports our health by contributing to determinants of health and improving returns on health investments
- influences sustainability by diffusing knowledge about climate change adaptation and mitigation.
Prosperity
Prosperity
Arts and culture contribute to prosperity through incomes, job satisfaction and occupational and educational aspiration. Specifically, cultural and creative activity support the economic wellbeing of local communities and attract investment that contributes to national income.
These activities also generate foundational skills, such as creative thinking skills, that build aspiration. Creative study and work itself has been found to generate job opportunities and enhance job satisfaction.
Case study
In a study about children’s cultural field trips in the United States, it found these field trips led to higher levels of school engagement, better standardised tests, and higher course grades.
Cohesion
Cohesion
Arts and culture contribute to cohesion by fostering connection and belonging in our society. Specifically, cultural and creative activity builds belonging across ages, places and people and across a broad range of activities.
Localised or place-based arts, cultural and creative approaches also enhance community connection and enable community cohesion.
Case study
An Australian survey found that attending ‘events that bring people together such as fetes, shows, festivals or other community events’ is the highest contributor to community participation, other than spending time with family and friends.
Health
Health
Arts and culture contribute to health by promoting health and health determinants and targeting positive returns on health investments at the state, community and workplace levels.
Specifically, cultural and creative engagement leads to positive health outcomes, in particular mental health outcomes, and participation in cultural and creative activities is a cost-effective complement to our health system at all levels.
Case study
An Australian study found that the net benefits of an arts and cultural program for the community was $2.30 for every $1.00 invested including 20% direct health system benefits and 20-25% indirect health system benefits.
Security
Security
Arts and culture contribute to national, regional and international security by helping people to cope in times of adversity and insecurity, and by fostering active citizenship and democratic participation.
Specifically, cultural and creative activity provides opportunities for people to feel safe including spaces for people to build confidence.
Arts and culture are also practical approaches for strengthening democracy while cultural relations can advance security alongside commercial, trade and diplomatic objectives.
Case study
In a study about Italian regions, it was shown that if local cultural consumption increases by one percentage point, hate events decrease by nearly 15%.
Sustainability
Sustainability
Arts and culture influence environmental sustainability and help people and communities recover from natural disasters.
Specifically, cultural and creative activity can help to embed more sustainable consumption and production and can also be a tool of communication to diffuse knowledge about sustainability.
Arts and culture can also help communities mitigate, adapt and respond to climate change.
Case study
A cross-country study linked the presence of arts amenities in built environments in Chicago, Paris and Seoul with sustainable transport uses by the population.
The transformative impacts of arts and culture have been recognised here in Australia and across the world.
- In Australia, The Treasury formally recognised ‘creative and cultural engagement’ in its national wellbeing framework Measuring What Matters in 2023.
- ‘Culture’ was also formally declared a ‘global public good’ by UNESCO in 2022.
05 How do Australians engage with arts and culture?
Australians have globally high participation rates in arts and culture.
A steady average of 85% of the adult population has attended cultural venues and events each year since 1995.
In 2021–22, during the COVID pandemic, 64% of adults in Australia attended at least one cultural venue or event, down from 82% in 2017–18.
80% of children attended at least one cultural venue or event in 2021–22, down from 94% in 2017–18.
More than $45.6 billion in Australian annual household expenditure was spent within the ‘entertainment and recreation’ industry in 2021–22.
Australians spent 2 hours and 55 minutes per day engaging with arts, cultural and creative activities in 2021–22 (including watching/streaming television and films).
95,753 actively trading businesses were operating within the cultural and creative industries in June 2023 (Bureau of Communications Arts and Regional Research (BCARR) definition).
190,636 businesses were reported in the cultural and creative industries in June 2023 (Australian Bureau of Statistics (ABS) definition).
1,805 registered charities were reported in the ‘culture sub-type’ in 2023.
281,986 people indicated that they worked in a cultural and creative industry in 2021.
524,117 people indicated that they worked in a cultural and creative occupation in 2021.
The COVID pandemic disrupted high and growing demand for culture across Organisation for Economic Co-operation and Development (OECD) countries. Per capita spending on recreational and cultural services dropped by 30% on average across OECD countries in 2020.
06 Who invests in arts and culture?
It might come as a surprise to learn that Australia’s cultural and creative industries earn the majority of their income from sales and services.
87% of income into Australia’s cultural and creative industries comes from sales and services.
The rest comes from indirect (0.2%) and direct (10%) government expenditure, interest (0.2%) and other income including donations (3%).
Australian cultural and creative industries attracted $160 billion in 2020–21. In 2017–18 these industries attracted an estimated $141 billion, indicating 13% growth.
Our cultural and creative industries are not predominantly funded by governments.
But government funding matters.
In Australia, all three levels of government invest in arts and culture.
Total government funding in 2021-22 was $7.7 billion.
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37% State and territory |
38% Federal government |
24% Local |
This investment occurred over three categories:
Arts
Arts
- literature and writing
- music
- theatre
- dance;
- music theatre and opera
- circus and physical theatre
- comedy
- other performing arts
- performing arts venues
- cross-art form
- visual arts and crafts
- design
- interactive arts content
- arts education
- community arts and cultural development
- multi-arts festivals
- arts administration
- other arts.
Film, Radio and Television
Film, Radio and Television
- radio and television services
- film and video production and distribution.
Museums, Archives, Libraries and Heritage
Museums, Archives, Libraries and Heritage
- art museums
- other museums and cultural heritage
- libraries
- archives.
Across the three levels of government, 33% was spent on Arts; 28% on Film, Radio and Television; and 39% on Museums, Archives, Libraries and Heritage.
Expenditure by category of cultural and creative experience, 2021–22. See The Big Picture 4.
ANA’s research has shown that over the last 15 years government funding for arts and culture has not kept pace with population growth.
Our population has increased by 22% while funding for arts and culture has increased by only 14%.
Australia is also lagging behind its international peers.
In 2021 we were ranked 26 out of 33 OECD countries in government funding investment for ‘recreation, culture and religion’.
Government spending (% of GDP) on ‘recreation, culture and religion’, 2021. See The Big Picture 4.
So why does government investment in arts and culture matter?
Government funding for arts and culture matters because it increases access. All people, no matter who they are or where they live, should have the opportunity to access arts and cultural experiences and benefit from their transformative impacts.
Government funding for arts and culture supports equitable access in cities, suburbs and towns. It’s needed to help all Australians to live well.
07 How can Australia secure its place as a cultural powerhouse?
With purposeful public policy action and industry effort, culture and creativity can thrive in our cities, suburbs and towns and Australia can become a cultural powerhouse by 2035.
The term ‘cultural powerhouse’ encapsulates ANA’s vision of Australia as a forerunner in how we:
- respect and cherish our unique cultural inheritance
- invest in and celebrate our creators, cultural organisations and creative industries
- enable our citizens to participate in and contribute to cultural activities
- strategically plan and nurture our creative future in a manner that befits our standing as the world’s 13th-largest economy.
To make this vision a reality, Australia needs a multi-partisan, multi-government and outcomes-focused approach to cultural policy.
There are two practical actions Australia can take now that will facilitate enduring cooperation between governments and effective collaboration with industry, business and philanthropy:
- Establish a Ministerial Council focused on cultural access and creative industries
- Develop a 10-Year National Arts and Culture Strategy modelled on the National Sport Strategy
Why a Ministerial Council?
A Ministerial Council will ensure Australia has a formal channel for working collaboratively on structural reform, resolving priorities, making decisions and coordinating action on culture and creativity.
Reporting to National Cabinet, the Ministerial Council would progress critical regulatory and statutory issues and have oversight of the development and review of the National Arts and Culture Strategy.
Why a National Arts and Culture Strategy?
A practical approach to action, like a plan or strategy, was a recommendation of the Parliamentary Inquiry into Australia’s Creative and Cultural Industries and Institutions in 2021. A National Arts and Culture Strategy would outline a national framework for collaboration that complements – not replaces – existing cultural policies.
Its vision, principles and outcomes would be negotiated and agreed between federal, state and territory governments, in discussion with local government representatives. A National Arts and Culture Strategy would align governments efforts without limiting their independence.
ANA’s indicative ‘Strategy on a Page’ with principles, outcomes and measurements for a National Arts and Culture Strategy. See Imagine 2035.
By developing a National Arts and Culture Strategy and establishing a Ministerial Council focused on cultural access and creative industries we will improve Australia’s cultural policy environment, for good.
An arts and culture system that delivers for all Australians is within our reach. Let’s seize this opportunity.