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FUNDING BY GOVERNMENT AND BUSINESS
GOVERNMENT EXPENDITURE
According to the 2012-13 Cultural Funding by Government survey the estimate of total expenditure funded by government for cultural activities was $7,050.5m. State and territory governments provided almost half (47% or $3,291.6m), the Australian Government contributed 33% ($2,361.2m) and local government contributed 20% ($1,397.6m). In 2012-13 recurrent expenditure accounted for 85% ($6,010.8m) of cultural expenditure funded by all levels of government, while capital expenditure accounted for the remaining 15% ($1,039.7m). Total expenditure funded by all levels of government for cultural activities rose by 1% in 2012-13, following a rise of 5% in 2011-12.
CULTURAL EXPENDITURE, By level of government, 2011-12 and 2012-13
|
 | | 2011-12 |  | 2012-13 |
|
| | Value of expenditure | Value of
expenditure
per person(a) |  | Value of expenditure | Value of
expenditure
per person(a) |
| | $m | $ |  | $m | $ |
|
| Australian Government(b) |
| Total Heritage | 610.5 | 27.10 |  | 605.1 | 26.40 |
| Total Arts | 1 744.5 | 77.50 |  | 1 756.2 | 76.60 |
| Total cultural expenditure | 2 355.0 | 104.60 |  | 2 361.2 | 103.00 |
| State and territory government |  |  |  |  |  |
| Total Heritage | 2 415.8 | 107.30 |  | 2 447.8 | 106.80 |
| Total Arts | 864.5 | 38.40 |  | 843.8 | 36.80 |
| Total cultural expenditure | 3 280.2 | 145.70 |  | 3 291.6 | 143.60 |
| Local government |  |  |  |  |  |
| Total Heritage(c) | na | na |  | na | na |
| Total Arts(c) | na | na |  | na | na |
| Total cultural expenditure | 1 342.3 | 59.60 |  | 1 397.6 | 61.00 |
| Total government expenditure | 6 977.5 | 309.90 |  | 7 050.5 | 307.60 |
|
na not available |
| (a) Although the Australian Capital Territory does not have a local government, its population has been included in calculations of per person expenditure. For more information see the Explanatory notes in Cultural Funding by Government, Australia, 2012-13 (cat. no. 4183.0). |
| (b) The Australian Government refers to the federal government. It does not refer to the aggregate of state and territory governments, nor does it include local government. |
| (c) Funding of arts and cultural activities by local government are classified according to the Local Government Purpose Classification (LGPC) and cannot be compared directly to total heritage and total arts funding by the Australian and state and territory governments which are classified according to the Australian Culture and Leisure Classifications (ACLC). |
Source: Cultural Funding by Government, Australia, 2012-13 (cat. no. 4183.0)
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Australian Government expenditure
Almost three quarters (74% or $1,756.2m) of Australian Government funded expenditure supported Arts activities in 2012-13, with the majority of this being directed to Radio and television services (73% or $1,281.1m).
In 2012-13 the estimate of expenditure funded by the Australian Government on heritage activities was $605.1m, similar to the $610.5m reported in 2011-12.
The value of expenditure per person for Heritage activities fell by 3%, from $27.10 in 2011-12 to $26.40 in 2012-13, and the value for Arts activities also decreased by 1% from $77.50 to $76.60 per person for the same period.
State and Territory Government expenditure
In 2012-13 the estimate of expenditure on cultural activities, funded by state and territory governments, was $3,291.6m a rise of $11.4m from 2011-12.
In contrast to the Australian Government, just under three quarters (74%) of funded cultural expenditure by state and territory governments was directed to Heritage activities with the category of Environmental heritage receiving the largest share (52%). Almost all state and territory governments directed more money to Environmental heritage than any other category with just under three quarters (75%) of the Australian Capital Territory's heritage expenditure being directed to this activity. In Western Australia, Queensland and the Northern Territory, expenditure on Environmental heritage accounted for 64%, 62% and 61% of funded expenditure on heritage activities respectively.
Whilst there was a $32.0m rise in Heritage expenditure, the value of expenditure per person for Heritage activities decreased from $107.30 per person in 2011-12 to $106.80 per person in 2012-13. There was a $20.7m fall in Arts expenditure in 2012-13 which contributed to the value of expenditure per person for Arts activities decreasing from $38.40 per person in 2011-12 to $36.80 per person in 2012-13.
EXPENDITURE ON CULTURE BY BUSINESS
Businesses can fund cultural activities in several ways with assistance usually taking the form of cash sponsorships, in-kind support (e.g. products, materials, advertising, services) or donations.
For sponsorships or in-kind support, businesses often receive advertising or promotional benefits. Donations, on the other hand, are usually made unconditionally. While the donor is not repaid with any benefit or service, businesses and individuals can receive taxation benefits for donations of cash or property to organisations such as those listed on the Australian Government's Register of Cultural Organisations.
Information provided by the Department of the Prime Minister and Cabinet shows that the number of donations to Cultural Organisations increased from 160,805 in 2011-12 to 281,048 in 2012-13. However, the average value of donations decreased from $465 to $261. A total of $73.4m was donated by individuals, business and charitable trusts and foundations in 2012-13.
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REGISTER OF CULTURAL ORGANISATIONS, Number and value of donations received(a), 2009-10 to 2012-13
 |  | 2009–10 | 2010–11 | 2011–12 | 2012–13 |
|
| Donations | no. | 227 788 | 167 930 | 160 805 | 281 048 |
| Total value(b) | $m | 82.9 | 71.3 | 74.8 | 73.4 |
| Average value | $ | 363 | 424 | 465 | 261 |
|
(a) Includes contributions from individuals, business, and charitable trusts/foundations.
(b) The number and value of donations received for these financial years may increase, as further statistical returns are received from registered cultural organisations.
Source: Department of the Prime Minister and Cabinet
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The Australian Major Performing Arts Group (AMPAG) annually surveys major performing arts companies about the corporate sponsorship and private donations they receive. According to the 2012 survey, $64.1m was given to the 28 major opera, music, dance, drama and circus companies in Australia which is more than double the revenue received in 2001 ($30.3m). Growth in private giving has been the main driver with revenue from this source increasing from $7.7m in 2001 to $31.3m in 2012. Private giving accounted for almost half (49%) of total sponsorship and donation revenue reported in the latest survey.
By comparison, revenue from corporate sponsorship has grown at a slower rate increasing from $21.7m in 2001 to $30.4m in 2012. Over this period corporate sponsorship as a proportion of total sponsorship and donation revenue has fallen from 72% to 47%. A net amount of $2.5m (4%) was received from fundraising events.
Findings from the survey are published in the summary report Tracking Changes in Corporate Sponsorship and Private Donations which is available on the AMPAG website ampag.com.au.
Taxation Statistics
Taxpayers can make tax deductible donations to private ancillary funds. According to the Australian Taxation Office's publication Taxation Statistics, 2010-11, for the 2010-11 income year, over $28m was distributed to cultural organisations from private ancillary funds. For more information please visit the Australian Taxation Office's website, http://www.ato.gov.au.
PRIVATE ANCILLARY FUND DONATIONS AND DISTRIBUTIONS, Cultural organisations, 2003-04 to 2010-11(a)(b)(c)
| 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08(c) | 2008-09 | 2009-10 | 2010-11 |
| $m | $m | $m | $m | $m | $m | $m | $m |
|
| Cultural organisations(c) | 2.9 | 2.3 | 5.2 | 39.9 | 10.9 | 18.5 | 26.4 | 28.3 |
|
(a) The data in these tables will change slightly over time as outstanding returns are keyed in or other information comes to the attention of the ATO.
(b) Data for each financial year includes data processed up to 31 October of the following year.
(c) For 2007-08, the cultural organisations category distributions decreased by 75.5% which is mainly attributable to there being a significant one-off distribution during the 2006-07 financial year.
Source: Taxation Statistics, 2010-11, Australian Taxation Office, October 2012.
Service industry surveys
The ABS collected financial details through surveys of businesses and organisations for Museums in 2007-08 and Performing arts in 2006-07. Information from these surveys can be found in Museums, Australia 2007-08 (cat. no. 8560.0) and Performing Arts, Australia, 2006-07 (cat. no. 8697.0) available on the ABS website.
Useful links
Cultural Funding by Government, Australia, 2012-13 (cat. no. 4183.0)
Australian Major Performing Arts Group (AMPAG), Tracking Changes in Corporate Sponsorship and Private Donations 2013, viewed 18 September 2013, http://ampag.com.au.
Australian Taxation Office (ATO), Taxation Statistics, 2011-12, viewed 18 September 2013, http://www.ato.gov.au.
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