A new study by the arts and culture think tank, A New Approach (ANA), has found that Australia’s cultural and creative industry primarily earns its income from sales and services rather than relying on allowances and donations. According to the research titled “To Scale: Mapping Financial Inflows in Australian Arts, Culture and Creativity,” the industry generated 87 percent of its income from sales and services. From 2020 to 2021, the industry attracted an estimated $160 billion in income and investment, with $16.4 billion distributed by governments.
Contrary to common belief, the research data debunks the notion that the Australian cultural and creative industry is predominantly financed through government assistance. “The lion’s share of income in cultural and creative industries is from sales and services,” stated Kate Fielding, the CEO of ANA. This includes art and cultural event ticket sales, royalties from intellectual property, cultural exports, and computer software consulting fees. Fielding also highlighted the missed opportunities to grow and discover new sources of income and investment.
The report, which is ANA’s 10th Insight Report, provides valuable research and analysis into arts and cultural policy topics. It emphasizes new ways to evaluate and articulate return on investment (ROI) across short, medium, and long-term time horizons. Fielding believes that highlighting the individual, community, and cumulative effects of investment can demonstrate the longer-term benefits of investing in arts and culture.
Australia is the first country to estimate income and investment sources for the cultural and creative industries using a new typology developed by the OECD. The think tank noted that the research also presents new financial options for investing in Australian cultural and creative activities, which could inform better strategic decision-making. Fielding emphasized the importance of understanding investment in cultural and creative activities and exploring new avenues for growth to foster targeted, effective, and adaptive policies and investment settings.
The study underscores the significant contribution of Australian households to the industry’s income. Fielding stated that arts, culture, and creativity are essential to the lives of Australians, and by improving understanding of investment in these sectors and exploring new options, policy and investment settings can harness economic, social, and cultural benefits. The aim is to ensure that all Australians, regardless of location or background, can participate in the cultural life of the nation.
ANA, chaired by Rupert Myer AO, is an Australian public company limited by guarantee and a registered charity with the Australian Charities and Not-for-Profits Commission. It was established in 2021 and made possible through a collaboration of 11 philanthropic partners.