The funding and role of the Australian Broadcasting Corporation (ABC) has long been a source of political tension, despite research consistently showing the importance of the broadcaster. The work of the ABC is highly popular (tabs 4–6) and trusted (p. 121) by Australian audiences, and it plays a key role (p. 327) in providing public interest journalism; an important element of a healthy democracy.

In late 2024, with an election on the horizon, the Albanese Government announced measures to affirm ‘the independence of the national broadcasters’ and protect against ‘political interference’: additional ongoing funding for the ABC and a commitment to legislate 5-year funding terms for both national broadcasters, the ABC and SBS.

This FlagPost contextualises these measures and considers their effect on the ABC’s funding certainty. For further detail on how the ABC is funded, see the 2019 Parliamentary Library publication, Funding the Australian Broadcasting Corporation.

5-year funding cycles

The ABC’s primary income is from government. Unlike commercial broadcasters and the SBS, it cannot raise income through advertisements (section 31).

Base funding amounts are conventionally determined in advance for multiple years. Since 1989, the ABC has received funding on a triennial basis (pp. 11–12), meaning that funding cycles are roughly aligned with government terms.

Some witnesses to the 2018–19 inquiry into allegations of political interference in the ABC posited that, while 3-year funding cycles provide some level of funding certainty for the broadcaster, funding decisions remain a matter for the government of the day (and are not secured by agreements; pp. 44–52). The ABC argued that ‘guarantee[d] stable and sufficient funding… will ensure that the ABC is not under threat of capricious or arbitrary political decisions that may influence or be perceived to influence ABC editorial or management decisions’ (p. 48).

Ahead of the 2022 election, Labor committed ‘to provide certainty’ to the national broadcasters by introducing 5-year funding cycles. The inaugural 5-year cycles commenced on 1 July 2023.

Also in July 2023, the Government began consultation on a Review of options to support the independence of the national broadcasters, with a response issued in December 2024.

The response document states that:

Overall, submissions supported 5-year funding terms. Opposition… focused on a view that taxpayers should not fund the national broadcasters, rather than opposing the principle of 5-year funding terms. (p. 4)

It also points to submissions advocating for:

...legislative amendments to prevent base funding within a 5-year term being reduced below the levels announced at the commencement of each 5-year term, and that each subsequent term should not result in funding being reduced below that of the previous term. (p. 5)

It is unclear if this approach will be taken up by Government, with a December press release noting that:

…the Government will legislate to firmly embed the five-year funding terms for the national broadcasters…

The legislative approach would affirm the intent that the national broadcasters have stable, five-year funding terms, but would not mandate or lock in the quantum of funding. The amount of funding would remain a decision for the Government of the day… [emphasis added]

However, the Government response notes that ‘the Government will consider options for appropriate protections of announced funding within legislative frameworks’ (p. 6).

Legislated 5-year funding cycles alone are unlikely to ‘provide certainty’ regarding the ABC’s funding levels, given that announced funding levels are not binding (pp. 11–12). Historically, the ABC states that its funding has been cut during a cycle on at least 2 occasions – in 1996–‍97 and 2014–15 (p. 4).

Funding increase

Coupled with the proposed legislation was the announcement in the 2024 Mid-Year Economic and Fiscal Outlook (MYEFO; p. 286) of an additional $83.1 million over 2 years from 2026–27, then ongoing funding of $43 million per year, for the ABC.

Notably, this new funding won’t arrive until the next Parliament – and possibly a new Government – which may choose not to honour this measure in its annual appropriations.

ABC reporting links the $43 million figure to evidence provided by the broadcaster to Senate Estimates in 2022 (p. 90), which noted a $41.6 million annual budget ‘gap’ as a result of the 3-year ‘indexation freeze’ imposed by the Turnbull Government in 2018.

Yet, even with this increased funding, total annual appropriations to the ABC over the forward estimates to 2027–28 will still sit below 2021–22 prices (and well below 2013–14 levels) when adjusted for inflation (Table 1; Figure 1).

Table 1 Government appropriations to the ABC, 2013–14 to forward estimates, accounting for 2024–25 MYEFO measures ($’000)

Source: Figures are for funding through Appropriation Bill 1, taken from the estimated actual figures as recorded in annual Portfolio Budget Statements. Figures for 2024–25 onwards are from the 2024–25 Budget. $40.9 million in 2026–27 and $42.2 million in 2027–28 have been added to the forward estimates, as per new expenditure projections in the 2024–25 MYEFO (p. 286).

Figure 1 Government appropriations to the ABC, 2013–14 to forward estimates, accounting for 2024–25 MYEFO measures

Support over certainty

Both the introduction of longer funding cycles, and the additional funding allocated in MYEFO, indicate Albanese Government support for the national broadcasters. However, they do not address all of the ABC’s concerns regarding funding certainty. As yet, there has been no action towards reforms addressing the broadcaster’s wish for funding to be, ‘at a minimum, maintained in real terms’ (p. 4) and for legislative changes to preclude governments from decreasing agreed amounts during a funding term.  

The Albanese Government has indicated that it will consider further legislative change, however with an election looming, the timeline for action is unclear.