Author: Myer Foundation, Study Group

Publication Year: 1976

Media Type: Report

Summary:

The aim of our Study Group was to diagnose the economics and operations of the Arts in Australia with the objective of recommending ways to stimulate and increase private sector support.

Abstract:

1. The aim of our Study Group was to diagnose the economics and operations of the Arts in Australia with the objective of recommending ways to stimulate and increase private sector support.
   
   
2. Assumptions underlying this report:
   
   The following are important beliefs of the Study Group members about the arts and society:

a) The arts cover a broad range of activities.
b) The arts receive both market and non-market support.
c) The arts provide community benefits and require some non-market
    funding.
d) Non-market support to the arts (i.e. the funding of community
    benefits) should, where possible, be in the form of market-like
    transactions.
e) Both the private and public sectors have responsibility for community
    benefits.
f) The private sector should be broadly defined for our purposes.

Structure of the report:
The report is divided into four sections. The first section summarizes the economics of the arts in Australia and our major conclusions, in particular the needs we identified that are common to most artistic activities in Australia; and, to make recommendations relating to private sector support that are aimed at overcoming these problems. The recommendations are addressed to the specific groups in the community, such as individuals and corporations, who can act on them. The second section of the report reviews the economics and operations of the six art forms we defined for the purposes of this study. Within each art form, we identify a number of operating problems that deserve attention.

The third section outlines the nature and extent of current (non-market) support for the arts by the private sector; reports, briefly on our review of relevant taxation legislation; and summarizes what we were able to learn of overseas experience of support for the arts. A final section contains appendices including: a bibliography, a list of acknowledgements and copies of the questionnaires used during the study. The Arts Industry: The arts are a billion dollar industry and earn more than 86% of their total income. This earned income exceeds $970 million and comes from the sale of arts products and services such as a ticket for a play, a pottery jug or a course of painting lessons. Of the remaining 14% of arts funds, 13% comes from government sources, a lower level of government support than that received by many other industries in Australia including footwear, clothing and paper. The majority of the government funding maintains public galleries, libraries and the Australian Broadcasting Commission.

The private sector is the major supporter of the arts. It generates the earned income of $970 million and provides assistance-in-kind which is valued at a further $80 million per annum. Almost all of this is represented by unpaid time given by individuals in organizing and administering arts activities and organizations. Private donations to the arts are approximately $2 million per nanum. Wages and salaries paid by the arts total $450 million and go to an estimated 120,000 people, but artists themselves provide a massive hidden subsidy-in-kind because of their low incomes relative to average earnings in the community.

Other issues:
In addition to the individual art forms, the Study Group also reviews three other issues - the level and nature of private sector non-market support for the arts, the possible effect on that support of alterations to tax laws, and the potential lessons from overseas experience. The Study Group's findings indicate that the private sector is already providing significant non-market support of the arts, mostly voluntary time. While business support to the arts is not high, attitudes in the community appear favourable to an increase of such support, but this will require specific initiatives from within the private sector, particularly to overcome the lack of an effective middleman who can help to bridge the gap between the arts and the private sector. The report's major recommendation takes up this point.

The study group received many submissions calling for increased taxation incentives to stimulate support for the arts, but considers that a significant widening of the various taxation provisions affecting the arts is neither probable, socially equitable, nor a guarantee of increased support. However, there are numerous anomalies in the various Australian taxation acts affecting the arts and a number of amendments are suggested. Comparison of public and private sector support for the arts in Australia with that existing in other countries was attempted. There are many difficulties in making such comparisons - most particularly a lack of overseas data - but private sector contribution to the unearned income of the arts in Australia appears to be relatively low and central funding, through the Australia Council, relatively high on a per capita basis.

CONTENTS
Chapter 1. Introduction.
Chapter 2. The arts industry. Structure and conclusions.
Chapter 3. Recommendations for action.
Chapter 4. Craft.
Chapter 5. Film, radio, and television.
Chapter 6. Literature.
Chapter 7. Music.
Chapter 8. Theatre.
Chapter 9. Visual Art.
Chapter 10. Private sector non-market support.
Chapter 11. Taxation and the arts.
Chapter 12. Overseas experience.

Appendices:
     References.
     Acknowledgments.
     Questionnaires.

Arts & Intersections:

Categories: Private Sector