Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion.
Briefing Paper 11/2010 by Lenny Roth and Todd Buttsworth
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SUMMARY
This paper provides an overview of arts funding in NSW.
Definition of the arts
It is important to define what the arts include for the purposes of this
analysis. This paper largely adopts the classification system used by the
Australian Bureau of Statistics in its Cultural Funding by Government
publication. The ABS classifies 'cultural activities' into two major
groups: 'the arts' and 'heritage'. For our definition, we have included
all of the ABS 'arts' categories except for 'radio and television services';
and we have excluded all of the ABS 'heritage' categories except for
'art museums'. The excluded 'heritage' categories are: 'other museums',
'environmental heritage', 'libraries', and 'archives'.
NSW Government: funding streams [2]
The arts are funded through a number of different funding streams. First,
annual allocations are made to three statutory arts institutions, which form
part of the eight 'State cultural institutions': the Sydney Opera House, the
Art Gallery of NSW and Screen NSW. Second, Arts NSW makes grants to
organisations and individuals, primarily under the Arts Funding Program. Third,
funds are provided for maintaining and upgrading state-owned properties that
are occupied or used by arts organisations. Fourth, the NSW Government provides
incentives to attract major screen projects to NSW.
NSW Government: total funding and categories [3]
In 2008/09, the NSW Government contributed a total of $155 million to the arts.
Performing arts venues received the largest share of this funding ($46
million), followed by art museums ($34 million). The various performing
arts received $26 million, with about half of this being allocated to music
performance. Since 2000/01 there have been significant fluctuations in
government funding of the arts over some years. Notably, there was a large
decrease in arts funding from 2007/08 to 2008/09. The fluctuations have
primarily been due to changes in funding in two categories: art museums and
performing arts venues.
Comparisons with other State Governments [4]
In 2008/09, both Victoria and Queensland had higher arts funding levels than
NSW: Victoria by $70 million and Queensland by $62 million. However, in three
of the last five years, NSW has had the highest levels of arts funding of all
States. In 2008/09, the NSW had the lowest per capita arts funding ($22 per
person). South Australia had the highest ($64), followed by Western Australia
($62), Queensland ($50), and Victoria ($42). Over the past five years, NSW has
ranked no better than fourth out of all six States in per capita arts funding.
One category where most States have had higher per capita funding than NSW over
the last five years is film and video production and distribution.
Australian Government: funding streams [5]
Federally, the arts are funded through a number of different funding streams.
Annual funding allocations are made to the two key arts funding bodies - the
Australia Council for the Arts and Screen Australia – as well as to other
national arts organisations. In addition, the Department of Prime Minister and
Cabinet administers various arts funding programs. The Australian Government
also offers tax incentives to encourage screen production. In 2008/09,
national organisations received the largest share of grants made by the Arts
Council of Australia, while grant recipients in NSW received the largest share
of any State.
Australian Government: total funding and categories [6]
In 2008/09, the Australian Government provided over $555 million in arts
funding across Australia. The performing arts received the highest amount of
funding ($140 million), followed by 'other arts' ($136 million), film and video
($116 million), art museums ($100 million), and visual arts ($33 million).
Information is not available on the distribution of total arts funding by
State. From 2000/01 to 2006/07, arts funding increased from around $400 million
to $450 million, while from 2007/08 to 2008/09 it increased by $20 million.
Comparisons with other countries [7]
There are a number of difficulties in making cross-country comparisons of
government funding of the arts. A publication in 2000 by the International Arts
Bureau provides some comparative statistics for a number of jurisdictions
(including Australia) but it is based on figures for 1996/97 and it warns that
'the results must be regarded as indicative, rather than definitive'. In
Canada, the office of national statistics publishes data on cultural
funding but it is not entirely clear how much of this funding is on the arts
and therefore only limited comparisons can be made between Canada and
Australia.
Private sector funding of the arts [8]
In 2008/09, private sector support for the arts in Australia (including museums
and libraries) was $212 million, which included $101 million in sponsorship and
$111 million in donations. NSW received the largest share of private support
(42 percent). The Australian Government promotes private sector support of the
arts through tax deduction schemes. In addition, the Australian Business Arts
Foundation (AbaF) and the Australia Council both act as intermediaries between
the arts community and the private sector. State Governments in South
Australia, Western Australia and Tasmania have established Premier's Arts
Partnership Funds. These provide matching grants for artists and smaller arts
organisations that attract new sponsorship.