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Output 1.1
On this page
- High-quality program administration
- Applications processed within agreed timeframes
- High-quality and timely policy advice and ministerial services
- Support for the contemporary visual arts and crafts sector by Artbank—Australia's national contemporary art rental program
- Effective client satisfaction and consultation
- Compliance with accountability standards
- Research and analysis activities contribute to policy development
- Effective budget management
Policy advice, program management and agency support which promotes excellence in, preservation and maintenance of, and access to Australia's cultural activities, cultural collections and Indigenous languages
High-quality program administration
Indigenous programs
The Department's Indigenous visual arts and crafts, culture and languages programs were part of the 2005–06 whole-of-government funding round for Indigenous programs, coordinated by the Office of Indigenous Policy Coordination.
Demand for the Department's Indigenous program funding remains high. In 2005–06, the Department received requests for funding totalling approximately $69 million compared to arts and culture program budgets of $19.6 million.
In 2005–06, 279 activities were funded from 533 applications across the Indigenous arts, culture and languages programs.
Applications to the whole-of-government funding round for Indigenous programs for 2006–07 closed in February 2006. Applications were assessed, recommendations were made to the Minister for the Arts and Sport, and decisions were made by the end of June 2006. As part of this process, 457 applications were received and 267 activities were approved for funding.
Arts Policy Section. Standing (L–R): Elizabeth Howell, Stephen Arnott, Peter Morrow. Sitting (L–R): Greg Morris, Catharina Moltke.
Touring and cultural development programs
For the 10 years between 1996–97 and 2005–06, a total of 4606 funding applications were processed for the national touring programs, Playing Australia, Visions of Australia, and Contemporary Music Touring, and the Festivals Australia and new Festivals Australia Regional Residencies programs.
In 2005–06, a total of 212 projects out of a total of 471 applications received, were offered funding from one of the five programs.
As shown in figure 2.7, the majority of funded projects undertaken during 2004–05 were fully acquitted within six months of the due date and compliance with the provisions of the funding deeds was consistently high. A similarly high proportion of projects funded in 2005–06 are expected to be fully acquitted within six months.
Figure 2.7 Touring and cultural development programs funded projects acquitted
| Program | Total no. due | 2003-04 grants acquitted within: | Total no. due | 2004-05 grants acquitted within: | Total no. due | 2005-06 grants acquitted within: | |||
|---|---|---|---|---|---|---|---|---|---|
| 3 months | 6 months | 3 months | 6 months | 3 months | 6 months | ||||
| Playing Australia | 51 | 41% | 86% | 30 | 63% | 93% | 41 | 29% | 88% * |
| Visions of Australia | 29 | 38% | 69% | 40 | 70% | 88% | 42 | 79% | 96% * |
| Contemporary Music Touring | 28 | 50% | 71% | 25 | 60% | 68% | 26 | 50% | 54% * |
| Festivals Australia | 54 | 55% | 88% | 68 | 81% | 100% | 68 | 73% | 81% * |
| Festivals Australia Regional Residencies | NA | NA | NA | NA | NA | NA | 5 | 60% | # |
* Acquittals received to date as at 30 June 2006.
# It is not yet six months since the completion of any Regional Residencies projects funded in the first two rounds.
Film programs
In 2005–06, the Department completed the implementation of the Government's 2004 election commitment to extend the Film Licensed Investment Company (FLIC) scheme. Under the scheme, one company is licensed to raise up to $10 million in concessional capital in each of 2005–06 and 2006–07 to invest in qualifying Australian films.
In August 2005, the Minister for the Arts and Sport called for applications for the FLIC licence. The Minister appointed a selection advisory panel to advise him on the most suitable applicant to be granted the licence. In December 2005, the FLIC Company (formerly called Mullis Capital Film Licensed Investment Company) was granted the licence.
In May 2005, the Australian Government announced that the refundable film tax offset, which encourages offshore production to be filmed in Australia, would be extended to provide a 12.5 per cent tax rebate on all qualifying expenditure for eligible television series made in Australia. Legislation enacting this extension received Royal Assent on 19 December 2005.
Regional Arts Fund
The objectives of the Regional Arts Fund are to support sustainable cultural development in regional, remote and very remote communities across Australia, to develop partnerships and cultural networks, and to increase access to skills development and employment opportunities for regional artists.
Regional arts organisations in each state, and arts ministries in the Northern Territory and the Australian Capital Territory, manage the fund on behalf of the Department and make decisions about specific funding. Details of 2005–06 Regional Arts Fund allocations are set out in figure 2.8. Regional arts organisations and arts ministries are required to provide regular acquittal reports to the Department.
Regional Arts Fund grant allocation expenditure is for arts projects in regional and remote communities, strategic projects which apply to a region, small grants (such as travel costs to attend a conference) and program administration. Examples of the projects funded under the Regional Arts Fund in 2005–06 are set out below.
- Wilcannia in regional New South Wales is hosting a triennial artists-in-residence program. The program aims to provide a model for future regional Indigenous projects and involves nine residencies of different art forms over the three years, culminating each year with a group exhibition to tour locally, regionally and to metropolitan centres.
- The Superstarters project enabled young people to work with a professional artist in Launceston in Tasmania to develop a series of sculptural works for inclusion in the Big Chair Challenge, aimed at raising public awareness of access issues faced by people in wheelchairs.
During 2005–06, the Department finalised the funding agreement with artsACT for the next three years. The agreements negotiated with each regional arts organisation include detailed obligations in respect of milestones and timeframes to be met by the organisations.
Figure 2.8 2005-06 Regional Arts Fund allocations
| State/Territory | Amount $ |
|---|---|
| Regional Arts NSW | 589 218 |
| Regional Arts Victoria | 589 218 |
| Country Arts WA | 589 218 |
| Queensland Arts Council | 589 218 |
| Country Arts South Australia | 489 440 |
| Tasmanian Regional Arts | 263 975 |
| Arts NT | 323 843 |
| artsACT | 66 870 |
| Regional Arts Australia | 122 000 |
| Australia Council for the Arts | 100 000 |
| Creative Volunteering | 260 000 |
| Total | 3 983 000 |
Federation Fund
Of the $1 billion Federation Fund established by the Government to help celebrate the Centenary of Federation in 2001, $434 million was allocated to the Department to manage a range of large and small infrastructure and community projects.
There were some delays to the finalisation of Federation Fund projects during the year. However, by the end of 2005–06, only one of the projects remains uncompleted. This project, the proposed relocation of the Anzac Rifle Range at Malabar, New South Wales, for which $9 million was allocated, has been delayed because of difficulties encountered in identifying a site that would accommodate all sports shooting disciplines. The Department continues to investigate options and to undertake consultations with the New South Wales Government and relevant shooting associations.
Art Indemnity Australia
The Art Indemnity Australia program, managed by the Department, aims to give Australians wide access to exhibitions of significant Australian and international cultural material.
The program is demand driven, via proposals submitted to the Department through the managing organisations that have access to the Art Indemnity Australia program. As shown in figure 2.9, the same number of final applications for indemnity was received in 2005–06 as in 2003–04, both years showing more received than in 2004–05. This reflects variations in the program of indemnified exhibitions from year to year, and in the timing of final applications for indemnity.
Figure 2.9 Art Indemnity Australia—final applications processed
| 2001-02 | 2002-03 | 2003-04 | 2004-05 | |
|---|---|---|---|---|
| No. of final applications for indemnity received and processed | 2 | 4 | 1 | 4 |
| Final applications successful | 100% | 100% | 100% | 100% |
Figure 2.10 Register of Cultural Organisations—number and value of donations
| 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | |
|---|---|---|---|---|---|
| Number of donations | 57 890 | 53 844 | 68 229 | 68 203 | 63 328 |
| Total donation value ($m)* | 26.7 | 27.6 | 39.5 | 35.8 | 32.7 |
| Average donation value ($) | 461 | 508 | 579 | 529 | 516 |
* The value of donations processed for these financial years may increase as further statistical returns are received from registered cultural organisations.
Philanthropy programs
The Department administers two philanthropy programs that facilitate private sector support for the arts.
The Register of Cultural Organisations allows qualifying cultural bodies to offer donors the incentive of a tax deduction for gifts of money and, in certain circumstances, property such as real estate, shares and office equipment.
The Cultural Gifts Program encourages gifts of culturally significant items to public art galleries, museums, libraries and archives by offering donors tax incentives, including a tax deduction for the market value of their gifts and capital gains tax exemption on gifts. Figures 2.10 and 2.11 show the number and value of gifts over the last five years.
The decrease in the total value and average value of donations in 2005–06 is due to a lower number of high-value gifts in 2005–06 compared to previous years. The programs are largely donor driven and there is considerable fluctuation in donation numbers and value.
This may reflect the ongoing impact of the extended philanthropy provisions, introduced in 2000–01, which allowed capital gains tax exemption on gifts and apportionment of the deduction over five years, as well as market and other economic factors.
Figure 2.11 Cultural Gifts Program—number and value of donations processed*
| 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | |
|---|---|---|---|---|---|
| Number of donations processed | 483 | 790 | 508 | 651 | 615 |
| Total value ($m) | 34.5 | 43.9 | 24.7 | 47.2 | 28.9 |
| Average donation value ($) | 71 428 | 55 569 | 48 622 | 72 503 | 47 121 |
* Donations entered onto the Department's database and assessed by the committee.
Figure 2.12 Culture and Recreation Portal performance indicators
| 30 June 2004 | 30 June 2005 | 30 June 2006 | Change (%) | |
|---|---|---|---|---|
| Visits per annum | 2 513 946 | 3 508 411 | 4 590 741 | +31 |
| Websites listed | 3010 | 3521 | 3800 | +8 |
| Pages indexed | 1 446 059 | 1 847 880 | 2 244 070 | +21 |
Source: Culture and Recreation Portal.
Culture and Recreation Portal
The Department administers the Culture and Recreation Portal (www.culture.gov.au) as part of the Australian Government's e-Government Strategy and the customer-focussed Portals Framework. The portal provides online access to evaluated Australian culture websites and online resources for the culture sector. In addition, the portal provides access to stories about Australian culture, history and identity with links to online information as well as news and events across a diverse range of cultural and recreational activities in Australia.
Visits to the portal exceeded 4.5 million during 2005–06, an increase of more than 30 per cent on 2004–05. As shown in figure 2.12, as at 30 June 2006 the portal listed 3800 websites, an increase of nearly eight per cent on last year with the total number of pages indexed increasing by 21 per cent. These results can be attributed to improvements both in the portal's search capacity and in the quality and diversity of content.
Applications processed within agreed timeframes
Programs administered by the Department under Output 1.1 met agreed timeframes, highlighted by the following.
- Under the Foreign Actors Certification Scheme, certificates are issued to confirm that relevant Australian content criteria have been met in relation to film or television productions, wholly or partially produced in Australia, for which producers wish to engage foreign performers. In 2005–06, forty applications were processed compared with 62 in 2004–05, and 98 per cent of applications were processed within the agreed timeframe compared with 100 per cent in 2004–05. The scheme aims to issue certificates within five working days of receiving a completed application.
- In 2005–06, Visions of Australia, Playing Australia, Festivals Australia and the Contemporary Music Touring Program achieved 100 per cent compliance with the Department's client service charter requirement that grant payments are made within four weeks of the acceptance of reports, and/or in accordance with relevant schedules or commitments.
- All Register of Cultural Organisations applications were assessed against eligibility criteria in accordance with agreed timeframes and eligible applications were submitted to the Minister for the Arts and Sport and the Minister for Revenue and Assistant Treasurer for their consideration every three to four months, in line with program requirements.
- All Cultural Gift Program applications were processed in line with program requirements and agreed timeframes to ensure that they were submitted to the next Taxation Incentives for the Arts Committee meeting.
- Effective management of Regional Art Fund grants to regional arts organisations resulted in all payments and required reports meeting funding agreement timelines, allowing the organisations to provide 198 grants for cultural activity in regional areas.
In the area of tax incentives, the Department administers a number of programs, for which applications over the last six years are shown in figure 2.13. The following results were achieved.
- Two hundred and fifty provisional applications were received under Division 10BA of the Income Tax Assessment Act 1936, of which 95 per cent were processed within three weeks of receipt.
- Seventy-four applications were received under Division 10B of the act of which 95.8 per cent had been processed by 30 June 2006.
- Five applications were received for final certification for the Refundable Film Tax Offset and one provisional certificate was issued.
The Department aims to process applications within 10 weeks of receipt. All applications were processed in the agreed timeframe.
Figure 2.13 Divisions 10B and 10BA tax concessions and refundable film tax offset applications processed*
| 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | |
|---|---|---|---|---|---|
| 10BA provisional applications | 254 | 204 | 214 | 351** | 250 |
| 10BA final applications | 87 | 107 | 95 | 69 | 67 |
| 10B applications | 46 | 60 | 63 | 58 | 74 |
| Offset provisional applications | 0 | 1 | 2 | 1 | 1 |
| Offset final applications | 0 | 1 | 5 | 5 | 5 |
*A processed application is one that has been received, processed and certified, rejected, withdrawn or lapsed.
** The high number of 10BA provisional applications processed in 2004-05 was principally due to the introduction of the Film Finance Corporation's 'Documentary Innovation Fund', which in that year attracted an exceptionally high number of applications. Applicants to that Fund were required to obtain a 10BA provisional certificate.
High-quality and timely policy advice and ministerial services
The Department provides policy advice and support for its ministers across the range of cultural issues.
In 2005–06, the Department achieved significant improvements to the timeliness of ministerial meeting briefs and parliamentary questions on notice. The reduction in timeliness of ministerial correspondence is being addressed through improved monitoring processes.
The Department undertook significant policy development work in a number of areas during the year, working with portfolio agencies, other departments and state and territory agencies to achieve positive outcomes for the cultural sector. Some key examples are described below.
Film co-production agreements foster cultural development and exchange by assisting Australian producers and producers from partner countries to work creatively together sharing the costs and risks of film production.
During 2005–06, the development of an Australia–China co-production agreement was progressed, approval was obtained to renegotiate the existing co-production agreement with the United Kingdom, and co-production agreement negotiations began with Singapore and South Africa.
The Department and the portfolio national collecting institutions have continued to implement outcomes from the 2003–04 Review of Cultural Agencies. Key outcomes over 2005–06 are as follows.
- Funding of $10.6 million over four years from 2004–05 was announced in the 2004–05 budget for the National Library of Australia to meet critical collection storage requirements. Related work continued on developing a comprehensive collection storage plan.
- Mechanisms were established for the two corporate management forums to investigate joint procurement savings.
- A national digital collections strategy has been developed to help the national collecting agencies address issues relating to increasing digital access to collections and to the use of digital technology to preserve collections and maintain their position as world leaders in the provision of digital material.
Figure 2.14 Advice provided within agreed timeframes
| Arts | |||||
|---|---|---|---|---|---|
| 2004-05 | 2005-06 | Variation | |||
| Type of advice | Number | % on time | Number | % on time | Difference on time % |
| Ministerial correspondence | 473 | 73 | 336 | 69 | -4 |
| Briefings | |||||
| - Department initiated minutes | 482 | NA | 586 | NA | NA |
| - Meeting briefs | 313 | 88 | 360 | 94 | +6 |
| Question Time briefs | 158 | 64 | 185 | 64 | 0 |
| Parliamentary questions on notice | 8 | 12.5 | 4 | 75 | +62.5 |
The Department worked closely with the Department of Finance and Administration and arts and sport agencies in the portfolio during 2005–06 to implement recommendations from the Government's response to the report of the Review of the Corporate Governance of Statutory Authorities and Office Holders, conducted by Mr John Uhrig AC.
The assessment of the corporate governance arrangements of 18 arts and sports agencies in the portfolio was a significant task for the Department. The assessments were provided to the Government for consideration within agreed timeframes.
The Department worked with the Department of Finance and Administration and portfolio collecting institutions in 2005–06 to develop a long-term approach to issues surrounding the accounting treatment of long-lived assets. Work on these issues was still underway at 30 June 2006.
In addition, the Department worked with the Department of Finance and Administration to address issues associated with depreciation of cultural collections. The focus of this ongoing work is the development of a sustainable approach to funding for preservation and maintenance of the national collections.
The Department continues to work with the Australia Council on implementation of the recommendations of the Orchestras Review that have been agreed by the Government. The outcomes of the review, conducted by Mr James Strong, are leading to changes in the way the symphony orchestras approach governance, accountability, and financial and risk management, reflecting their move to a corporate structure independent of government and consistent with the majority of Australia's other major performing arts companies.
Due to the complexity of the change process and the issues involved, implementation of the major recommendation for the divestment of the orchestras from the Australian Broadcasting Corporation, which was scheduled to be finalised in 2005–06, has been delayed until early 2007.
The Department commenced a statutory review of the refundable film tax offset to assess its success in attracting large-budget productions to Australia and its impact on the Australian film production industry. On 24 May 2006, the Minister for the Arts and Sport announced the review and invited public submissions.
To gather additional information for the review, the Department conducted focus group discussions with industry stakeholders and undertook a consultancy to assess Australia's competitiveness as a film destination internationally. The review will be completed in September 2006.
In its 2004 election policy, ‘A World-Class Australian Film Industry' the Australian Government announced it would review the key provisions of Divisions 10B and 10BA of the Income Tax Assessment Act 1936 to develop proposals for improving certainty for investors and to ensure key provisions operate effectively.
In September 2005, the Minister for the Arts and Sport issued a discussion paper and invited submissions against the terms of reference to the review. Twenty-nine submissions from a range of stakeholders including the major film industry organisations, financial and legal institutions, independent producers and a State film body were received.
In the 2006–07 Budget, the Government announced a broader review of support measures for funding films in Australia which will pick up the findings of the 10B/10BA and the refundable film tax offset reviews.
The Department, in consultation with the Department of Finance and Administration, the Department of the Prime Minister and Cabinet, and the Treasury, completed a review of the Film Finance Corporation Australia's triennial funding commencing 2007–08. The findings of the review were considered in the 2006–07 Budget process. The Government confirmed funding for 2007–08 with future funding to be considered as part of the Australian Government's broader review of film funding support.
Support for the contemporary visual arts and crafts sector by Artbank—Australia's national contemporary art rental program
Artbank provides direct support to Australian artists through the acquisition, promotion and rental of artworks by Australian artists and craftspeople. Works from the Artbank collection are rented by private, commercial and government clients as well as Australian embassies and high commissions around the world. The expanding Artbank collection, now valued at $26.7 million, comprises more than 9000 works in a broad variety of styles and media by 3000 Australian artists.
In 2005–06, Artbank invested $639 470 in the primary art market through the purchase of works directly from artists, artist-run initiatives and private galleries. It acquired 180 artworks (46 per cent of which were by Indigenous artists) by 113 artists. More than 6000 artworks were on show throughout the year. Works from the Artbank collection are often sought for special exhibitions and 10 significant artworks were loaned to institutions for inclusion in public exhibitions during the year.
Artbank's Melbourne showroom, which opened in February 2005, has helped raise awareness of, and access to, the Australian Government's contemporary art rental collection. The showroom has attracted increased private and state government clients in Victoria. Over the last year, the number of artworks on display at client premises in Victoria has risen by 24 per cent.
Celebrating 25 Years of Australian Art , the regional touring exhibition, was launched in April 2006 at the Redland Art Gallery in Queensland. The exhibition marks Artbank's 25th anniversary and presents highlights from every year of its operation. The exhibition, supported by the Australian Government's Visions of Australia program, provides regional access to Australian contemporary artworks and will continue to tour until November 2007.
Kiripuranji: contemporary art in the Tiwi Islands , the touring exhibition curated by Artbank in 2002, continued to tour Australian embassies and high commissions. The exhibition went to Central Europe and Central and South America during 2005–06.
In addition, Artbank worked with the Department of Foreign Affairs and Trade to produce an exhibition Gelam Nguzu Kazi: dugong my son to promote work from Torres Strait Islands internationally. The exhibition features limited edition linocuts by artists from Mua Island and will be launched in July 2006.
The Australian National Audit Office audited Artbank's performance in 2005–06. The audit found that Artbank was meeting its charter obligation of acquiring art by contemporary artists, expanding the number of public places where Artbank's collection is rented and displayed, and managing its collection and rental scheme.
The Audit Office identified some opportunities for improvements to Artbank's governance arrangements and operational matters. The Department agreed with the audit recommendations and has commenced implementation.
Effective client satisfaction and consultation
The Department undertook a client satisfaction survey of 509 clients liaising with the Department on arts and cultural matters across a range of policy and program activities. Responses showed that 98 per cent were satisfied with the services provided by the Department. This result shows an improvement of one per cent from 2004–05. In 2005–06, seventy-four per cent of respondents rated their dealings with the Department as good or excellent, again up one per cent from the previous year.
Respondents were asked to comment on the extent to which the Department was achieving its objectives across its main areas of responsibility. In achieving access and excellence in Australia's cultural activities, 90 per cent of the 428 clients who responded on this issue were satisfied with the Department's effectiveness. In assisting the development and preservation of cultural collections, 88 per cent of the 325 respondents were satisfied with the Department's effectiveness, a decline of four per cent on the previous year.
The Department consulted with clients and stakeholders during the year on a range of policy initiatives and programs. Examples of consultations are outlined below.
As part of the statutory review of the refundable film tax offset scheme, the Department consulted extensively with the Australian film production industry stakeholders and international film-makers who have accessed, or are likely to access, the offset. Consultation mechanisms included public submissions, focus groups discussions, industry surveys and informal discussions. Those consulted responded positively on the Department's operation of the scheme.
The Department has a network of about 80 regional staff, most of whom are located in whole-of-government Indigenous coordination centres, primarily in regional Australia. National office staff continued to work effectively with regional staff to deliver programs to Indigenous communities.
National and regional network staff consult closely with Indigenous communities and work to ensure that community issues and queries relating to program delivery are dealt with in a timely and professional manner. Consultation is undertaken through field visits, phone, fax and email. Regular field visits are undertaken where a project is appraised as high-risk and additional field visits are conducted to assist in the development of shared responsibility agreements.
In conducting the further examination of the specialist opera and ballet orchestras, the Department conducted detailed consultations with key stakeholders including relevant arts companies and state government funding agencies.
Issues raised by stakeholders across the arts and culture area continued to be given priority attention as part of improving management of the programs.
Compliance with accountability standards
Throughout the year, the Department provided formal and informal advice to portfolio agencies on matters pertaining to compliance with better practice, corporate governance arrangements and meeting accountability obligations.
As mentioned on page 58, the Australian National Audit Office audited Artbank's performance in 2005–06.
Research and analysis activities contribute to policy development
The Department provided secretariat support in the development of the Digital Content Industry Action Agenda report. The report Unlocking the potential was prepared by a Strategic Industry Leaders Group comprising representatives from key areas in the digital content sector and chaired by Mr Tom Kennedy, chief executive officer of Media Zoo.
Research commissioned for the report by the Centre for International Economics assessed the economic contribution of the digital content industry at $21 billion with employment of approximately 300 000 people.
The report drew on analysis of the structure, composition and growth prospects for the industry to identify strategic priorities for development. It identified the industry's vision to achieve a sustainable and internationally competitive industry that doubles in value over the next decade.
It also outlined a 12 to 24 month implementation plan for the industry to progress. The report was released by the Minister for Communications, Information Technology and the Arts and the Minister for Industry, Tourism and Resources on 13 March 2006, and was profiled at a series of forums in capital cities commencing in June 2006.
Effective budget management
As identified in the resources for outcome table at page 24, the overall price of Output 1.1 was on budget.
Regular evaluation of the budget outcome is conducted by managers and commentary on variations between budget and expenditure is provided to, and discussed by, the Executive Management Group once a month. The comments also include forecasts of budget trends where possible.