Current Issues
Funding of the Australian Broadcasting Corporation
E-Brief: Online Only issued November 2006, revised and
updated version of August 2003 brief by Dr Kim
Jackson
Dr Rhonda
Jolly, Analysis and Policy
Social Policy Group
The Australian Broadcasting Corporation
(ABC) is the major national public broadcaster, contributing to
and reflecting Australia s national identity.
The ABC is an integral part of the
radio, television and online production industries and the news and
information media. It also plays an important role in digital
broadcasting and the introduction of new media services.
Under the ABC Charter found in
section 6 of the Australian Broadcasting Corporation Act
1983, the Corporation is required to provide innovative and
comprehensive broadcasting services of a high standard as part of
the Australian broadcasting system consisting of national,
commercial and community sectors and to transmit news, current
affairs and entertainment programs outside Australia.
Radio
The ABC delivers radio broadcasting services over:
- Four national radio networks: Radio National, ABC Classic FM, Triple J and ABC NewsRadio;
- Local radio through nine metropolitan radio stations in capital
cities and Newcastle, and 51 regional radio stations throughout
Australia;
- Three Internet music based services; and
- Radio Australia, an
international service broadcast by shortwave, online, satellite and
local rebroadcasts to the Asia-Pacific region in five local
languages Indonesian, Tok Pisin (Pidgin), Chinese, Vietnamese and
Khmer (Cambodian) as well as English. Aside from news and current
affairs, English lessons, sport and music from Australia, Radio
Australia's programs cover the events and issues of the region with
a particular emphasis on health, the environment, science and
technology, agriculture and education.
In June 2006, the
ABC estimated that its 617 Government-funded national radio
services had achieved the following penetration rates:
- 99.4% of the Australian population had terrestrial access to
Local Radio;
- 98.5% of the Australian population had terrestrial access to
Radio National;
- 95.7% of the Australian population had terrestrial access to
Classic FM;
- 95.2% of the Australian population had terrestrial access to
Triple J; and
- 78.2% of the Australian population had terrestrial access to
NewsRadio.
Television
ABC television
consists of:
- an analogue television service ABC TV;
- digital television from 177 transmitters (simulcast with the
analogue television signal);
- ABC2, a second
digital channel, which began broadcasting in March 2005; and
- local television in each state and territory.
ABC2 broadcasts a
range of new and repeat programming including children s programs,
specific regional programs, documentaries and arts programs and
international and regional news.
Additionally,
Australia Network
(formally ABC Asia Pacific Television) broadcasts under contract
for the Department of Foreign Affairs and Trade via satellite and
rebroadcast arrangements to 41 countries in Asia and the
Pacific.
ABC television
reflects the diversity of interests in the community nationally,
through a range of distinctive programs of broad and specialist
appeal. ABC television commissions, produces, purchases and
schedules all general programs as well as current affairs programs.
It is watched by in metropolitan areas by approximately 8.5 million
viewers and in rural areas by 4.1 million viewers every week.
ABC television is
available via analogue signal to 98.19 per cent of the population.
The analogue service is transmitted via 961 terrestrial
transmitters around Australia, including Self-Help facilities,
which are operated and maintained by local councils or community
groups and Broadcasting for Remote Aboriginal Communities Scheme
(BRACS).
The ABC is in the
process of progressively rolling out digital television services
which will eventually have equivalent coverage to that of analogue
television services. ABC television is available via digital signal
to 96.19 per cent of the population.
The ABC digital
television service is also retransmitted on various digital
subscription platforms, including FOXTEL, Optus TV, AUSTAR,
TransACT and Neighbourhood Cable.

Funding
The ABC is financed
by the federal government, primarily through triennial funding
arrangements. Major sources of data relating to ABC funding are the
Annual
Reports of the Corporation and the Commonwealth Budget Papers.
Other relevant information on
funding can be found in the
ABC Triennial funding submissions (such as the most recent
submission for 2006-2009) and documents such as the 2006-07
Portfolio
Budget Statement.
Budget documents relating to the Department of Communications,
Information Technology and the Arts (DCITA), which has
responsibility for the ABC, also provide information on
funding.
Operating Revenue
The Operating Statements contained in the Annual
Reports of the ABC detail revenues and expenses of the
Corporation for each financial year. Revenue can be classified into
two broad groups:
- Government appropriations (amounts
legislated through the annual Appropriation Bills Nos 1 and 2 for
the use of the ABC); and
- Revenue from independent sources
(principally, the sale of goods and services).
Table 1 and Table 2 set out revenues for
the ABC, by source of funds, for each year since 1970-71. In
assessing comparatively actual funds available for ABC programs and
services over this period of time, it is necessary to take into
account changes in funding allocated for:

Transmission
Services
The ABC does not broadcast over its own transmission network.
Prior to 1992, transmission services were provided by Telecom and
the then Department of Transport and Communications. From 1992 to
1999 this service was provided by the National Transmission Agency
(NTA), until it was privatised in April 1999. In 1999-2000 the ABC
received an appropriation to purchase transmission services from
NTL Australia Pty Ltd (the purchasers of the NTA network). Similar
appropriations have been made in subsequent years.
The cost of the ABC's transmission services was identified as
'resources provided free of charge' in the ABC's Financial
Statements from 1990-91 to 1998-99, but for earlier years it is not
recorded. The cost of ABC transmission services has been excluded
therefore from Table 1 and Table 2 in order to obtain comparable trend data for
the years before 1990.
Capital Use Charge
The capital use charge was part of changes introduced with the
Accrual Budgeting framework in 1999-2000. It was levied on
Commonwealth authorities and agencies to reflect the cost of the
Commonwealth's investment in those entities. Funding for the
capital use charge was included in the annual appropriations for
the ABC from 1999-2000 to 2002-03. The charge has since been
abolished. Appropriations for the charge are not included in
Table 1 and Table
2.
Consolidated Revenue
Since the Annual Report 1994-95, the ABC's operating
revenue has been presented in two formats - Consolidated and ABC.
The former encompasses the accounts of both the ABC and its
controlled entities (companies owned by the Corporation), while the
latter consists only of operating revenue for the Corporation. The
revenues associated with controlled entities has increased
substantially in recent years, from $602 000 in 1993-94 to over $30
million in 2005-2006. This is in part due to the different
treatment of the ABC's orchestras, which became subsidiary
companies during and after 1996-97. The data presented in Table 1
and Table 2 are derived from the Consolidated figures as they more
accurately reflect the scope of the current operation of the
Corporation. Revenue associated with controlled entities before
1994-95 was negligible.
Orchestral Subsidies
The ABC operated symphony orchestras in each State as part of
its Concert Music Division until 1997. In December 1996, the State
Governments and ABC Board agreed to a proposal from the
Commonwealth Government to corporatise five ABC symphony
orchestras. The Sydney Symphony Orchestra had been incorporated in
February 1996. An ABC-owned subsidiary, Symphony Australia Holdings
Pty Ltd, was established in July 1997 and $32 million was
transferred in the 1997-98 Budget from the ABC's base funding to
Symphony Services
Australia.
Since 1997-98, the ABC financial statements have separately
identified the orchestral subsidies. These are received from both
DCITA, through Symphony Australia, and from State Governments. In
Table 1 and Table 2
and, the Commonwealth orchestral contributions have been included
with other Commonwealth revenue, while the State subsidies have
been placed with revenue from other sources.
Capital Payments and
Equity Injections
The ABC s financial statements classified all Commonwealth
appropriations as revenues from government until 1999-00, when a
payment of $32.2 million was classified as an injection of equity
and not included in total operating revenues . In Table 1 and Table 2 this
payment and subsequent equity injections have been included in
Capital Revenues to maintain consistency with previous years.
Table 1 gives the ABC s revenues since
1970-71, and indicates the proportion of these revenues that come
from the Commonwealth Government. The main sources of current
revenue, apart from the Commonwealth, are the sales of goods and
services, interest, royalties and the State orchestral subsidies.
The table indicates that non-Commonwealth revenue has grown
substantially since the late 1980s.

Table 1: ABC Revenues,
1970-71 to 2005-06 (a) (actual dollars).
Year
|
ABC Revenues (AR)
|
ABC Revenues from Independent
Sources
|
ABC Revenues from the Commonwealth
Government (a)
|
Total C
wealth Revenues
|
Operating Revenues
|
Capital Revenues and Equity
Injections
|
|
$ m
|
$ m
|
% of AR
|
$ m
|
% of AR
|
$ m
|
% of AR
|
$ m
|
% of AR
|
2005-06
|
910.6
|
243.6
|
27.5
|
660.5
|
72.5
|
660.5
|
72.5
|
-
|
-
|
2004-05
|
901.1
|
253.5
|
28.1
|
647.5
|
71.9
|
647.5
|
71.9
|
-
|
-
|
2003-04
|
831.4
|
199.3
|
24.0
|
632.1
|
76.0
|
632.1
|
76.0
|
-
|
-
|
2002-03
|
878.7
|
185.9
|
21.2
|
692.8
|
78.8
|
649.5
|
73.9
|
43.3
|
|
2001-02
|
813.5
|
185.0
|
22.7
|
628.5
|
77.3
|
613.9
|
75.5
|
14.6
|
1.8
|
2000-01
|
722.5
|
152.9
|
21.2
|
569.6
|
78.8
|
528.3
|
73.1
|
41.3
|
5.7
|
1999-00
|
686.7
|
148.2
|
21.6
|
538.6
|
78.4
|
505.4
|
73.6
|
33.2
|
4.8
|
1998-99
|
659.4
|
152.1
|
23.1
|
507.2
|
76.9
|
498.6
|
75.6
|
8.6
|
1.3
|
1997-98
|
651.8
|
151.3
|
23.2
|
500.5
|
76.8
|
490.7
|
75.3
|
9.8
|
1.5
|
1996-97
|
675.2
|
144.0
|
21.3
|
531.2
|
78.7
|
521.5
|
77.2
|
9.7
|
1.4
|
1995-96
|
652.9
|
130.7
|
20.0
|
522.2
|
80.0
|
514.5
|
78.8
|
7.7
|
1.2
|
1994-95
|
638.1
|
123.0
|
19.3
|
515.1
|
80.7
|
507.8
|
79.6
|
7.3
|
1.1
|
1993-94
|
633.1
|
101.6
|
16.0
|
531.5
|
84.0
|
511.5
|
80.8
|
20.0
|
3.2
|
1992-93
|
598.2
|
90.1
|
15.1
|
508.1
|
84.9
|
493.5
|
82.5
|
14.6
|
2.4
|
1991-92
|
587.7
|
86.0
|
14.6
|
501.7
|
85.4
|
493.6
|
84.0
|
8.1
|
1.4
|
1990-91
|
584.8
|
71.3
|
12.2
|
513.5
|
87.8
|
497.4
|
85.1
|
16.2
|
2.8
|
1989-90
|
525.6
|
52.0
|
9.9
|
473.6
|
90.1
|
458.3
|
87.2
|
15.3
|
2.9
|
1988-89
|
511.5
|
61.5
|
12.0
|
450.0
|
88.0
|
429.3
|
83.9
|
20.7
|
4.0
|
1987-88
|
467.5
|
36.4
|
7.8
|
431.1
|
92.2
|
385.9
|
82.5
|
45.2
|
9.7
|
1986-87
|
455.2
|
29.6
|
6.5
|
425.6
|
93.5
|
372.5
|
81.8
|
53.1
|
11.7
|
1985-86
|
451.7
|
21.7
|
4.8
|
430.0
|
95.2
|
381.7
|
84.5
|
48.3
|
10.7
|
1984-85
|
364.1
|
17.1
|
4.7
|
347.0
|
95.3
|
319.5
|
87.8
|
27.5
|
7.6
|
1983-84
|
306.6
|
14.1
|
4.6
|
292.4
|
95.4
|
274.4
|
89.5
|
18.1
|
5.9
|
1982-83
|
273.6
|
12.8
|
4.7
|
260.8
|
95.3
|
246.4
|
90.1
|
14.4
|
5.3
|
1981-82
|
246.4
|
10.0
|
4.1
|
236.4
|
95.9
|
222.3
|
90.2
|
14.2
|
5.8
|
1980-81
|
194.1
|
10.0
|
5.2
|
184.1
|
94.8
|
171.2
|
88.2
|
12.9
|
6.6
|
1979-80
|
171.8
|
13.3
|
7.7
|
158.5
|
92.3
|
150.8
|
87.8
|
7.7
|
4.5
|
1978-79
|
158.0
|
11.9
|
7.5
|
146.0
|
92.4
|
139.0
|
88.0
|
7.1
|
4.5
|
1977-78
|
151.4
|
10.9
|
7.2
|
140.5
|
92.8
|
132.2
|
87.3
|
8.3
|
5.5
|
1976-77
|
148.2
|
9.1
|
6.1
|
139.0
|
93.8
|
126.2
|
85.2
|
12.8
|
8.6
|
1975-76
|
140.6
|
7.8
|
5.5
|
132.8
|
94.5
|
124.2
|
88.3
|
8.6
|
6.1
|
1974-75
|
129.3
|
7.0
|
5.4
|
122.3
|
94.6
|
108.3
|
83.8
|
14.0
|
10.8
|
1973-74
|
96.7
|
7.0
|
7.2
|
89.7
|
92.8
|
81.9
|
84.7
|
7.8
|
8.1
|
1972-73
|
74.4
|
4.3
|
5.8
|
70.1
|
94.2
|
66.2
|
89.0
|
3.9
|
5.2
|
1971-72
|
66.6
|
4.4
|
6.6
|
62.2
|
93.4
|
59.6
|
89.5
|
2.6
|
3.9
|
1970-71
|
59.2
|
3.8
|
6.4
|
55.4
|
93.6
|
52.9
|
89.4
|
2.5
|
4.2
|
|
|
|
|
|
|
|
|
|
|
Source: ABC Annual reports, ABC Financial Statements.
(a) Excludes revenues for transmission costs
and capital use charge. Includes equity injections and orchestral
subsidies.

Table 2: ABC Revenues,
1970-71 to 2004-05 (a) (adjusted to 2004-05 prices)
Year
|
ABC Revenues
|
Non-C'wealth Revenue
|
Commonwealth Revenues (a)
|
Total
|
Operating
|
Capital
|
|
$ million
|
$ million
|
$ million
|
$ million
|
$ million
|
2005-06
|
868.1
|
232.2
|
629.6
|
629.6
|
-
|
2004-05
|
901.1
|
253.5
|
647.5
|
647.4
|
-
|
2003-04
|
864.2
|
207.2
|
657.1
|
657.1
|
-
|
2002-03
|
948.9
|
200.8
|
748.2
|
701.4
|
46.8
|
2001-02
|
902.9
|
205.3
|
697.6
|
681.4
|
16.2
|
2000-01
|
821.0
|
173.8
|
647.3
|
600.3
|
46.9
|
1999-00
|
814.6
|
175.8
|
638.9
|
599.5
|
39.4
|
1998-99
|
798.3
|
184.1
|
614.0
|
603.6
|
10.4
|
1997-98
|
791.0
|
183.6
|
607.4
|
595.5
|
11.9
|
1996-97
|
830.5
|
177.1
|
653.4
|
641.5
|
11.9
|
1995-96
|
816.1
|
163.4
|
652.8
|
643.1
|
9.6
|
1994-95
|
818.1
|
157.7
|
660.4
|
651.0
|
9.4
|
1993-94
|
819.0
|
131.4
|
687.6
|
661.7
|
25.9
|
1992-93
|
779.9
|
117.5
|
662.5
|
643.4
|
19.0
|
1991-92
|
775.3
|
113.5
|
661.9
|
651.2
|
10.7
|
1990-91
|
786.0
|
95.8
|
690.2
|
668.5
|
21.8
|
1989-90
|
742.4
|
73.4
|
668.9
|
647.3
|
21.6
|
1988-89
|
766.9
|
92.2
|
674.7
|
643.6
|
31.0
|
1987-88
|
760.2
|
59.2
|
701.0
|
627.5
|
73.5
|
1986-87
|
795.8
|
51.7
|
744.1
|
651.2
|
92.8
|
1985-86
|
845.9
|
40.6
|
805.2
|
714.8
|
90.4
|
1984-85
|
725.3
|
34.1
|
691.2
|
636.5
|
54.8
|
1983-84
|
642.8
|
29.6
|
613.0
|
575.3
|
37.9
|
1982-83
|
612.1
|
28.6
|
583.4
|
551.2
|
32.2
|
1981-82
|
612.9
|
24.9
|
588.1
|
553.0
|
35.3
|
1980-81
|
546.8
|
28.2
|
518.6
|
482.3
|
36.3
|
1979-80
|
533.5
|
41.3
|
492.2
|
468.3
|
23.9
|
1978-79
|
537.4
|
40.5
|
496.6
|
472.8
|
24.1
|
1977-78
|
546.6
|
39.4
|
507.2
|
477.3
|
30.0
|
1976-77
|
581.2
|
35.7
|
545.1
|
494.9
|
50.2
|
1975-76
|
619.4
|
34.4
|
585.0
|
547.1
|
37.9
|
1974-75
|
656.3
|
35.5
|
620.8
|
549.7
|
71.1
|
1973-74
|
596.9
|
43.2
|
553.7
|
505.6
|
48.1
|
1972-73
|
527.7
|
30.5
|
497.2
|
469.5
|
27.7
|
1971-72
|
500.8
|
33.1
|
467.7
|
448.1
|
19.5
|
1970-71
|
477.4
|
30.6
|
446.8
|
426.6
|
20.2
|
|
|
|
|
|
|
Source: ABC Annual Reports, Financial Statements. Figures have
been adjusted to 2004-05 prices using the implicit price deflator
for non-farm GDP.
(a) Excludes revenues for transmission costs
and capital use charge. Includes equity injections and orchestral
subsidies.

Commonwealth Funds
for the ABC
It is possible to merge the projections contained in the 2006-07
Budget Papers with the figures from the Annual Reports to
obtain trend data on Commonwealth ABC funding since 1990-91, when
transmission costs were first identified. This is presented in
Table 3 below. Table 4
presents these figures (excluding the out years) in constant
2004-05 prices.
The Budget Papers do not separate operating revenue from
transmission costs for future years. Under the budget framework,
Appropriation Bill No. 1 provides for operating revenue and
transmission costs.
Equity injections are provided for by Appropriation Bill No. 2.
Substantial increases in capital funding were allocated to assist
in digital conversion in the 1998-99 Budget, which provided $20.8
million from 1998-99 to 2001-02, while the 2000-01 Budget provided
$30.4 million from 2000-01 to 2002-03. Other capital funding
increases have included $29.1 million in 1999-2000 to meet debt
financing arrangements and additional funding for the 2006-09
period for additional equipment and infrastructure needs.
The ABC's orchestral subsidies are not separately identified in
the Budget Papers. In the absence of any measures affecting this
item in subsequent budgets, it has been assumed that the funding
levels similar to those allocated since 2002-03 will continue.
Table 3: Commonwealth
Funds for the ABC, 1990-91 to 2006-07 (a) (actual
dollars).
Year
|
Operating Revenue
|
Transmission Revenue
|
Digital Television Services
|
Orchestral Subsidies
|
Capital and Equity Injections
|
All
C wealth Funds
|
|
$
m
|
$
m
|
$m
|
$
m
|
$
m
|
$
m
|
2009-10
|
860.5
|
40.0
|
-
|
900.5
|
2008-09
|
843.4
|
40.0
|
11.3
|
894.7
|
2007-08
|
826.4
|
40.0
|
12.8
|
879.2
|
2006-07
|
651.8
|
82.0
|
74.6
|
40.0
|
14.3
|
862.7
|
2005-06
|
625.0
|
80.2
|
69.1
|
41.8
|
-
|
816.1
|
2004-05
|
614.1
|
78.6
|
63.4
|
39.2
|
-
|
795.3
|
2003-04
|
591.4
|
77.2
|
57.8
|
40.4
|
-
|
766.8
|
2002-03
|
569.7
|
75.3
|
29.8
|
36.0
|
43.3
|
754.1
|
2001-02
|
548.5
|
73.4
|
29.4
|
36.0
|
14.6
|
701.9
|
2000-01
|
490.2
|
69.3
|
|
36.2
|
41.3
|
637.0
|
1999-00
|
472.4
|
68.4
|
|
33.0
|
33.2
|
607.0
|
1998-99
|
466.1
|
67.6
|
|
32.5
|
8.6
|
574.9
|
1997-98
|
458.7
|
54.2
|
|
32.0
|
9.8
|
554.7
|
1996-97
|
521.5
|
56.9
|
|
|
9.7
|
588.1
|
1995-96
|
517.0
|
75.5
|
|
|
5.3
|
597.7
|
1994-95
|
507.8
|
72.5
|
|
|
7.3
|
587.6
|
1993-94
|
524.0
|
70.7
|
|
|
7.5
|
602.2
|
1992-93
|
498.9
|
67.6
|
|
|
9.2
|
575.7
|
1991-92
|
493.6
|
67.6
|
|
|
8.1
|
569.3
|
1990-91
|
497.4
|
64.6
|
|
|
16.2
|
578.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|

Source: ABC Annual Reports, Financial Statements, 2006-07 Budget
statements.
(a) Does not include funds for the capital use charge or loans
from the Commonwealth. Orchestral subsidies were included in the
ABC s operating revenue for 1996-97 and earlier years.
Table 4
Commonwealth Funds for the ABC, 1990-91 to 2006-07 (a)
Adjusted to 2004/05 prices.
Year
|
Operating
Revenue
|
Transmission
Revenue
|
Digital
Television Services
|
Orchestral
Subsidies
|
Capital and
Equity Injections
|
All
Common-wealth Funds
|
|
|
|
|
|
|
|
$
m
|
$
m
|
$m
|
$
m
|
$
m
|
$
m
|
2006-07
|
606.3
|
76.3
|
69.4
|
37.2
|
13.3
|
802.5
|
2005-06
|
595.8
|
76.5
|
65.9
|
39.8
|
-
|
778.0
|
2004-05
|
614.1
|
78.6
|
63.4
|
39.2
|
-
|
795.3
|
2003-04
|
614.8
|
80.2
|
60.1
|
42.0
|
-
|
797.1
|
2002-03
|
613.2
|
81.1
|
32.1
|
38.8
|
46.6
|
811.7
|
2001-02
|
608.8
|
81.5
|
32.6
|
40.0
|
16.2
|
779.0
|
2000-01
|
557.0
|
78.8
|
-
|
41.1
|
46.9
|
723.9
|
1999-00
|
560.4
|
81.1
|
-
|
39.1
|
39.4
|
720.0
|
1998-99
|
564.3
|
81.8
|
-
|
39.3
|
10.4
|
696.0
|
1997-98
|
556.7
|
65.8
|
-
|
38.8
|
11.9
|
673.2
|
1996-97
|
641.5
|
70.0
|
-
|
-
|
11.9
|
723.4
|
1995-96
|
646.3
|
94.4
|
-
|
-
|
6.6
|
747.1
|
1994-95
|
651.0
|
92.9
|
-
|
-
|
9.4
|
753.3
|
1993-94
|
677.9
|
91.5
|
-
|
-
|
9.7
|
779.0
|
1992-93
|
650.5
|
88.1
|
-
|
-
|
12.0
|
750.6
|
1991-92
|
651.2
|
89.2
|
-
|
-
|
10.7
|
751.1
|
1990-91
|
668.5
|
86.8
|
-
|
-
|
21.8
|
777.0
|
Source: ABC Annual Reports, Financial Statements. Figures have
been adjusted to 2004-05 prices using the implicit price deflator
for non-farm GDP.
(a) Does not include funds for the capital use charge or loans
from the Commonwealth. Orchestral subsidies were included in the
ABC s operating revenue for 1996-97 and earlier years.
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