The Big Picture 2: Public Expenditure on Artistic, Cultural and Creative activity in Australia in 2007-08 to 2019-20 

Summary of findings 

Finding 1

Arts and culture organisations and businesses accessed more than $4 billion of Covid-19 support in the last four months of the 2019–20 financial year. Of this amount, 98.8% came from the federal government; however, only half the states and territories were able to report on their Covid-specific cultural spending.

Finding 2

Expenditure on arts and culture across the three levels of government reached a new high of $7.26 billion in the 2019–20 financial year, even without the inclusion of support for COVID-19 disruptions. However, the increase in real terms between 2017–18 and 2019–20 was marginal, at just 0.6%, indicating that total expenditure has increased only slightly faster than inflation.

Finding 3

Cultural spending has not kept up with population growth, with a 6.9% decrease in per capita expenditure on arts and culture in the period between 2007–08 and 2019–20. Cultural expenditure from the three levels of government combined was $282 per person in the 2019–20 period; in the 2007–08 period, it was $303 per person (adjusted for inflation).

Finding 4

At the time of this report, Australia was ranked number 23 out of the 34 OECD countries – a slight increase in ranking from 26th in 2015. In 2019, the OECD average for expenditure on culture, recreation and religion was 1.23% of total GDP, while the Australian figure was only 0.95% of GDP.

Finding 5

Responsibility for cultural expenditure continues to be split more evenly between the levels of government than it was in the 2007–08 period. Excluding Covid-19 measures, the federal government contributed 37.9%, state and territory governments 36.7% and local governments 25.3% to total cultural expenditure by governments in the 2019–20 financial year.

Finding 6

Total capital expenditure has slowly but steadily increased as a proportion of total cultural expenditure in Australia. Capital expenditure was 17.1% of the total cultural expenditure during the 2019–20 financial year, up from 11.5% in 2007–08.

Finding 7

The proportion of cultural expenditure by federal, state and territory governments allocated across three overarching categories was 42% to Museums, Libraries, Archives and Heritage; 31% to Film, Radio and Television; and 27% to Arts in the 2019–20 period. The proportion allocated to Museums, Libraries, Archives and Heritage increased, while the proportion allocated to Film, Radio and Television and to Arts decreased since the 2017–18 period.

Summary of opportunities 

Opportunity 1

Develop and implement the National Cultural Plan, a bipartisan 2021 recommendation from the recent Parliamentary Inquiry into Creative and Cultural Industries and Institutions. This will facilitate more effective collaboration between federal, state and territory and local governments and cross-portfolio strategic initiatives. Clearer policy direction and coordination will ensure that the benefits of cultural expenditure by governments are available to all Australians.

Opportunity 2

Within the context of the National Cultural Plan, and with bipartisan recognition of the positive cultural, social and economic impacts of arts and cultural participation, design and implement mechanisms to boost cultural expenditure by governments as a percentage of GDP to at least the OECD average within the next decade.

Opportunity 3

Create a standing item on the development of the National Cultural Plan on the National Federation Reform Council agenda.

Opportunity 4

While COVID-19 is still disrupting the operations of arts and cultural organisations and special support mechanisms are in place, conduct the CFG survey every financial year.

Opportunity 5

The proposed Productivity Commission inquiry ‘into the legislative arrangements which govern funding of artistic programs and activities at all levels of government’ should proceed and take a broad approach towards understanding the source and intended purpose of this investment, including the expected cultural, social and economic benefits from this investment. Noting expenditure is only one of the policy levers available to governments; they can also consider if Australia has a fit-for-purpose legislative, regulatory, tax incentive and investment environment.

Opportunity 6

Build on the work of Infrastructure Australia to 1) implement a coordinated national approach to arts and cultural infrastructure and 2) facilitate greater collaboration between federal, state and territory and local governments for cultural infrastructure programs.

Opportunity 7

Take an industry transformation approach to supporting arts and cultural organisations in expanding digital offerings and access, given the importance that Australians are now placing on digital engagement with arts and culture.