The Big Picture 4: Public Expenditure on Artistic, Cultural and Creative Activity by Governments in Australia in 2007-08 to 2021-22 

Key findings 

Finding 1

Government investment in arts and culture increased in 2021–22.

One hundred and ten agencies across the three levels of government directed $7.7 billion into arts and culture in 2021–22. This represents a 4% increase from 2020–21 when adjusted for inflation, totalling $319.6 million.

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Finding 2

Australia ranks 26th out of 33 OECD countries for government investment in ‘recreation, culture and religion’.

Government spending on ‘recreation, culture and religion’ in Australia is below that of many of our international peers on a GDP basis. OECD countries, on average, spent 1.2% of total GDP, while Australia spent 0.9% of its GDP. Australia has remained below the OECD average from 2017 to 2021.

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Finding 3

Government investment in arts and culture is not keeping pace with population growth.

Australia’s population increased by 22% between 2007–08 and 2021–22 to 26 million, while expenditure on arts and culture increased by 14%. Per capita government expenditure on arts and culture was $295 in 2021–22. For comparison, the figure in 2007–08 was $314 per person when adjusted for inflation, which represents the highest expenditure in the last 15 years. The lowest was $273 per person in 2015–16.

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Finding 4

The scale of state and territory governments’ annual investment in arts and culture now matches that of the federal government.

State and territory governments’ contribution to cultural expenditure remains near record levels, continuing a long-term trend towards parity of contribution. In 2021–22, over 37% of expenditure again came from state and territory governments and over 38% from the federal government. The local government share has decreased every year since a peak of over 27% in 2016–17; in 2021–22, it was 24%.

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Finding 5

Capital expenditure consumes an increasing share of government investment in arts and culture.

Capital expenditure (e.g. building additions, renovations, restorations) has slowly but steadily increased as a share of expenditure on arts and culture in Australia. Capital expenditure represented 19% of expenditure on arts and culture during 2021–22. This is the highest on record, up from 11% in 2007–08.

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Finding 6

Federal and state and territory governments have directed various temporary financial supports to cultural and creative industries during the pandemic.

Since 2019–20, federal and state and territory governments have directed $13.6 billion to the broadly defined cultural and creative industries in response to COVID-19, in both targeted COVID-19 support and wider economy COVID-19 support. This represents 38% of total government expenditure in the relevant industries in the last three financial years. $1.0 billion, or 7% of this total support, was in 2021–22.

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Finding 7

All levels of government invest across a diverse range of arts and cultural activities that contribute to Australia’s cultural life.

Museums, Libraries, Archives and Heritage accounted for 39% of government expenditure on arts and culture in 2021–22 (including targeted COVID-19 support and excluding local government spending). Arts accounted for 33%; Film, Radio and Television accounted for 28%. The long-term decrease in the share of this expenditure on the Film, Radio and Television category continues. Conversely, the Arts category has increased its share, reaching its highest level in 2021–22.

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Finding 8

Government investment in defined areas of the arts and cultural industry varies significantly by the level of government, whether federal or state and territory.

The federal government has typically contributed more than 90% of government expenditure on the Film, Radio and Television category. State and territory governments have typically contributed more than 60% of government investment in the Museums, Archives, Libraries and Heritage category and, since 2019–20, more than 70% into the Arts category. These figures include targeted COVID-19 support and exclude local government spending.

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Key opportunities 

Opportunity 1

Noting that Australia ranks 26th out of 33 OECD countries for government investment in ‘recreation, culture and religion’:

For the National Cabinet to elevate the existing meeting of Cultural Ministers to a formalised Ministerial Council reporting annually to the National Cabinet, including a seat for local government.

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Opportunity 2

Noting that the scale of state and territory governments’ annual investment in arts and culture now matches that of the federal government:

For governments at all three levels (ideally through a Cultural Ministers Council) to pursue an intergovernmental plan with long-term outcomes, a commitment to genuine collaboration and clear responsibilities for jurisdictions.

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Opportunity 3

Noting that capital expenditure consumes an increasing share of government investment in arts and culture:

For federal, state and territory agencies investing in arts and culture to consider how discount rates impact their joint investments in multi-year, capital-intensive projects relevant to arts and culture.

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Opportunity 4

Noting that all levels of government invest across a diverse range of arts and cultural activities that contribute to Australia’s cultural life:

For governments at all levels to experiment with accessible reporting about returns on government investment in arts and culture, from stating policy objectives and aligning different statistical data collections (such as ANZSCO and the Cultural and Creative Satellite Accounts) to evaluation and, where possible, releasing data behind this reporting on a consistent, regular basis.

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Opportunity 5

Noting that government investment in arts and culture is not keeping pace with population growth:

For the Steering Committee for the Review of Government Services, at its next meeting, to consider arts and culture as a service provision sector for inclusion in the Report on Government Services, providing annual information on equity, efficiency and effectiveness.