20 December 2017

The Hon. Michael McCormack MP Minister for Small Business PO Box 6022 House of Representatives Parliament House Canberra ACT 2600

Dear Minister,

AMPAG pre-Budget submission on priorities for the 2018–19 Federal Budget

The Australian Major Performing Arts Group (AMPAG) is the umbrella group for Australia's major performing arts companies (MPAs) who inspire millions through theatre, circus, contemporary dance, classical ballet, classical music, opera, musicals and comedy.

While we recognise the Government’s positive response to the recommendation in AMPAG’s 2017–18 pre-Budget submission (to direct funds previously administered under the Catalyst fund back to the Australia Council for the Arts), there is more that needs to be done. With the support of government, we must strengthen equity of access, artistic vibrancy and ambition, and include the arts in building better economic, health and wellbeing and education outcomes.

We continue to urge the government take a long-term view of the sector and of the employment generated by the performing arts. We also encourage the government to actively acknowledge the positive impact engagement with the performing arts has on individuals and their potential to advance social and economic policies in other portfolios.

Investment in the arts is well leveraged. The return on investment offers both direct and indirect benefits. It has the potential to increase wellbeing, social engagement, physical activity, connectedness and vibrancy in our communities. It can stimulate the development of higher order thinking, creative ambition and insight and generates greater employment, innovation and risk-taking. Arts engagement in education leads to stronger learning outcomes and equips students with the soft skills needed in the fast-changing digital economy. The arts also contribute to tourism and positive international perceptions of our country and its people.

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In summary AMPAG calls for:

• STEAM (science, technology, engineering, arts, maths) not STEM—The arts to be incorporated into the national digital economic strategy and the innovation strategies in education and health Cost: n/a

• an ongoing commitment to strengthen the MPA framework Cost: no additional cost

• an end to the erosion of the real value of arts funding caused by inflation and efficiency dividends Cost: estimated $2 million per year for four years

• new investment in the arts: o to enable risk and fuel ambition through the creation of a seed fund to support new works of scale and innovation o to uplift investment in the Playing Australia fund to deliver greater regional access and opportunity o to increase funds to better leverage Australia’s international cultural touring and engagement activities Cost: $8.25 million per year for four years

• stimulate philanthropy through the introduction of a tax mechanism modelled on the UK Gift Aid tax measure Cost: negligible (set up)

AMPAG also recognises the importance of Aboriginal and Torres Strait Islander arts and culture and the importance of ensuring its ongoing vibrancy and relevance to First Nations and all Australians. We acknowledge first nations artists and support the ongoing work, with government support, to build on the rich culture that they carry forward.

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We thank you for this opportunity to outline our priories for the 2018–19 Federal Budget. Details and a full list of recommendations are in the AMPAG submission that follows.

We recommend these government interventions for the benefit of the Australian people, recognising the arts have an important role to play in inspiring its citizens and lifting their social and economic prosperity.

Yours sincerely

John Irving Bethwyn Serow Chair Executive Director

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AMPAG PRE-BUDGET SUBMISSION ON PRIORITIES FOR THE 2018–19 FEDERAL BUDGET

Executive summary

The Australian Major Performing Arts Group (AMPAG) is the umbrella group for Australia's major performing arts companies (MPAs) who inspire millions through theatre, circus, contemporary dance, classical ballet, classical music, opera, musicals and comedy. We support our members’ leadership roles within their specific art forms and in the advancement of the performing arts sector and the public good that the performing arts deliver to individuals and communities across Australia.

As a nation, we boast some of the best artists, arts companies and arts administrators in the world. The arts have a place in the lives of 98 per cent of Australians.1 They celebrate and inspire greater insight and understanding of who we are, what we value and the nature of our existence.

However, government funding in real terms is sliding backwards—and in this submission AMPAG urges the Australian Government to restore a level of funding that will do justice to Australian innovation, ingenuity and creativity. With the support of government, we must strengthen equity of access, artistic vibrancy and ambition, and include the arts in building better economic, health and wellbeing and education outcomes.

We continue to urge the government take a long-term view of the sector and of the employment generated by the performing arts. We also encourage the government to actively acknowledge the positive impact engagement with the performing arts has on individuals and their potential to advance social and economic policies in other portfolios.

Investment in the arts is well leveraged. The return on investment offers both direct and indirect benefits. It has the potential to increase wellbeing, social engagement, physical activity, connectedness and vibrancy in our communities. It can stimulate the development of higher order thinking, creative ambition and insight and generates greater employment, innovation and risk-taking. Arts engagement in education leads to stronger learning outcomes and equips students with the soft skills needed in the fast-changing digital economy. The arts also contribute to tourism and positive international perceptions of our country and its people.

1 Australia Council for the Arts 2017, Connecting Australians: Results of the National Arts Participation Survey. Australia Council for the Arts, Sydney. http://www.australiacouncil.gov.au/ research/connecting-Australians/ 4 www.ampag.com.au

In summary AMPAG calls for:

• STEAM (science, technology, engineering, arts, maths) not STEM—The arts to be incorporated into the national digital economic strategy and the innovation strategies in education and health • an ongoing commitment to strengthen the MPA framework • an end to the erosion of the real value of arts funding caused by inflation and efficiency dividends • new investment in the arts: o to enable risk and fuel ambition through the creation of a seed fund to support new works of scale and innovation o to uplift investment in the Playing Australia fund to deliver greater regional access and opportunity o to increase funds to better leverage Australia’s international cultural touring and engagement activities • stimulate philanthropy through the introduction of a tax mechanism modelled on the UK Gift Aid tax measure

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1. National federal policy

National policy on innovation, the digital economy and education are failing to incorporate the arts to maximise positive policy outcomes.

Core challenges, such as falling school engagement and academic achievement, community resilience, declining social optimism, workforce adaptability and innovation, public health and wellbeing will not be addressed adequately by scientific or digital technical skills and policy in isolation. The arts have a positive contribution to make, but it needs to be facilitated through the government’s policy framework and resources.

Recommendation 1 AMPAG calls for the Australian Government to resource the expansion of the STEM agenda to a STEAM (science, technology, engineering, arts, maths) approach in the formation of its digital strategy, to generate better outcomes for its citizens and to strengthen school education outcomes.

Government's approach to digital economic development

2 Australia has slipped a further four places in the Global Innovation Index to 23rd position in 2017. Australia is ranked 34th for knowledge and technology outputs, but in the critical area of knowledge diffusion it ranks 96.3 There is a disconnect.

A STEAM (science, technology, engineering, arts, maths) approach to the National Digital Economic Strategy has the potential to combine skills with more significant effect, driving a culture and mindset that supports lifelong learning, exploring and interpreting the social challenges and changes brought to us through digital evolution.

An economic framework that structures out the value of humanities, creativity, and the soft skills that are developed through the arts, is a deficit model. The arts can help us respond to a fast-changing economic and social landscape by inspiring innovation, new practices and services, and modes of social engagement.

In addition, jobs needing creative and social intelligence, not just in the creative industries but across all industries, are less likely to be replaced by computerisation

2 Future of Jobs World Economic Forum 3 https://www.globalinnovationindex.org/ 6 www.ampag.com.au

(see table above). Future teams tackling innovation challenges need to draw on a diversity of skills that are effectively forged within the arts and humanities.4

There is a growing body of research confirming the importance of creativity and innovation in the future workplace (The Heart of the Matter, American Academy of Arts & Sciences 2013; Humanities Graduates and the British Economy: The Hidden Impact, University of Oxford 2013; Australia’s Future Workforce?, CEDA 2015).5

The House of Representatives 2017 ‘Inquiry into innovation and creativity: workforce for the new economy’, while focusing on the building of STEM (science, technology engineering and maths) skills, also recommended the following:

The Committee recommends that the National Innovation and Science Agenda explicitly recognise the importance of STEAM, creative digital skills, the creative industries and the arts more generally.

This is an important development. The government’s new Economic Digital Strategy should act on this recommendation and develop structural mechanisms for expertise development, research and cross-sector collaboration.

Health and wellbeing

The Meeting of Culture Ministers’ National Arts and Health Framework released in 2013 endorsed collaborative relationships between arts and health sectors nationally, and within each state and territory, as well as across government and non-government sectors. Ministers committed to improving the health and wellbeing of all Australians and recognised the role of the arts in contributing to this.

Australia’s chronic disease is responsible for around three-quarters of the total non- fatal burden of disease.6 Some states7 have developed funded arts and health programs which have proved very successful. However, they are relatively localised. There is an opportunity to generate significant improvements in public health benefit, mental and physical in both regional and metropolitan settings through investing in an expansion of successful arts and health pilot projects.

4 Recent initiatives in the UK include; the Immersive Story Telling studio at the Royal National Theatre or the RUSI, the Atlantic Council and Central Saint Martins immersive event in which creatives and AI experts and military and policymakers engaged in open conversation about the challenges, opportunities, and realities of AI over the next fifty years, and ask what its use will mean for defence and security. 5 National Advocates for Arts Education (NAAE), ‘Submission to the Inquiry into innovation and creativity: workforce for the new economy’, p. 1. 6 http://www.health.gov.au/internet/main/publishing.nsf/content/chronic-disease 7 https://www.vichealth.vic.gov.au/our-work/arts-and-social-connection, http://www.health.nsw.gov.au/arts/Documents/nsw-health-and-the-arts-framework-report.pdf 7 www.ampag.com.au

Education

The arts (dance, drama, media arts, music and visual arts) develop better school engagement and strong learning skills, and students with these skills can master core academic content, think critically and solve complex problems, work collaboratively, communicate effectively, learn how to learn and develop academic mindsets.8

Participation in structured arts activities increases cognitive function by up to 17 per cent and nine in ten people feel the arts are an important part of a child’s education.9

In numerous reports this year, alarming statistics have pointed to the increased disengagement of students in school, and the falling level of maths and science skills in graduating school students. In economic terms, this threatens our capacity to deliver future productivity gains. The current policies to address skill shortages and future needs have focused on driving innovation and creativity through a STEM framework that is self-limiting.

A recent Australian study10 confirmed similar findings in a local setting. It found that students who participate in dance, drama, music, and visual arts showed more positive academic and personal wellbeing outcomes than students who were less involved in the arts.11 Conducted over two academic years and involving 643 students from 15 primary and secondary schools, this was one of the largest studies into the role of the arts on student outcomes ever conducted in Australia.

The research shows that active participation in the arts can create positive outcomes in both literacy and numeracy. According to one of the study’s authors, Associate Professor Michael Anderson of the University of Sydney:

… arts education should be at the centre of the curriculum because it has benefits across all areas of learning

Many of Australia’s competitors are adopting a STEAM (science, technology, engineering, arts and mathematics), as opposed to STEM approach to education and innovative frameworks to gain competitive advantage. This approach should be embedded in primary and high school curricula through to tertiary education and innovation hubs or incubators.

There is also a critical need for undergraduate and ongoing professional teacher training in the arts and teaching through the arts, accompanied by recognition and valuing of this training, to support a shift in education approach.

8 Education Commission of the States, ‘Beyond the core: advancing student success through the arts’, Education Trends, September 2017, p. 1. 9 Australia Council for the Arts http://www.australiacouncil.gov.au/strategic-plan/?goal=2#goal2 10 The role of arts participation in students’ academic and non-academic outcomes: A longitudinal study of school, home, and community factors. 2013, Martin, Andrew J.; Mansour, Marianne; Anderson, Michael; Gibson, Robyn; Liem, Gregory A. D.; Sudmalis, David, 11 https://ifacca.org/en/news/2013/09/27/role-arts-participation-students-academic-and-nona/ 8 www.ampag.com.au

2. Ongoing government support in the arts sector

Major Performing Arts (MPA) Framework

Recommendation 2 Maintain and strengthen government commitment to the MPA Framework to ensure its sustainability and vibrancy.

The Federal Government continues its financial commitment to the MPA Framework, including indexation and core funding for MPA companies. It also undertakes to review the framework at regular intervals, with the capacity to respond to strategic recommendations and address emerging issues in a timely way.

AMPAG values the Federal Government’s commitment to the major performing arts companies who in turn deliver value to government and the nation.

See Appendix 2 for the full list of MPA companies.

Government investment in the arts is essential, and the joint state and federal government’s commitment to the MPAs help to support significant performing arts ‘soft’ infrastructure. It contributes to a base from which companies can then seek market returns and philanthropic support.

In 2016 the MPAs leveraged a further $2.19 for every government dollar invested in them. In addition, the MPA companies:

• employed more than 10,000 people, that is the equivalent of 3,000 full-time employees • delivered over 6,000 performances • reached over 4 million people directly through live performances, workshops and education programs • reached over 17 million people who watched or listened to a broadcast or screening of an MPA company performance, up from 13 million in 2015 • received donations from 43,485 individual donors, more than double the donors in 2012.

Total government funding has reduced as a percentage of turnover by just over 4 per cent in five years.

A resilient, stable infrastructure of arts organisations offers career pathways for artists and a capacity to plan over the long term, developing both the art form and audiences. Government funding helps to offset the market failure that on its own limits diversity of work, social inclusion and risk-taking. The MPA model should be reviewed periodically accompanied by government capacity to respond to changing needs and opportunities in a timely way to ensure stability of supply.

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Indexation and efficiency dividends

Recommendation 3 AMPAG supports full Indexation to be applied to all Australia Council program funding and the efficiency dividend be removed for the next four years.

The MPA companies value and rely on government base fund indexation. They also value the creative work and development of artist and ideas within the independent and smaller performing arts organisations. We recognise that the small/medium sector also needs ongoing government investment through the Australia Council.

AMPAG supports full indexation of all grant funding of the arts. However, the capacity of the Australia Council to apply full CPI increases to all program funding is impaired by the application of the efficiency dividend to the arts.

AMPAG urges government to remove the Australia Council for the Arts efficiency dividends requirement for the next four years. The Australia Council has achieved major restructuring and efficiencies. Given the small size of the organisation relative to other government institutions, this policy has a disproportionately negative impact on the Australia Council’s capacity to support smaller arts organisation and artists’ funding.

The value of the efficiency dividend is estimated to be around $2 million per year.

Arts research and data

AMPAG also supports further development and strengthening of the Australia Council for the Arts research, data and cultural statistical analysis, including using information collected by the ABS, to build more in-depth understanding of sector trends and policy impact.

3. New government investment in the arts sector

The arts are the research and development arms of culture: artists experiment with new ways to look at the human experience. By enabling experimentation and encouraging new and diverse artistic expressions, public investment supports great art.

Over eight in ten Australians agree it is exciting to see new styles and types of art, and a similar number agree they are inspired by the skill of great artists.12

12 Australia Council Goal 2 http://www.australiacouncil.gov.au/strategic-plan/?goal=2#goal2 10 www.ampag.com.au

The arts’ vibrancy, its capacity to tell this generation’s stories and express its ideas and outlook need greater direct investment to support much-needed R&D and generation of IP as well as extending audience reach, regionally and overseas.

Direct investment

Seed funding for new works and innovation

Recommendation 4 AMPAG recommends government stimulate the development of original IP and digital innovation through a $20 million seed fund over four years for new works of scale and innovation.

Major new Australian works define an evolving national identity, provide the opportunity for innovation and creativity, and enhance the reputation of Australia internationally. New works require multi-year support and investment and testing. Australia’s financial capacity to develop new ambitious works, including those with export potential, is very limited and this in turn limits economic and employment growth in the sector. While we are proud of the calibre of the performing arts in Australia, this lack of R&D limits the arts sector’s capacity to support new creatively ambitious works of scale.

AMPAG supports the establishment of a seed investment and partnership program that enables the creation of major performing art works outside the festival setting that are so often beyond the scope of an individual organisation.

Examples of projects of the size and scope include: Muriel’s Wedding Musical (Global Creatures & Sydney Theatre Company), The Rabbits (Barking Gecko and Opera Australia), Black Diggers (Queensland Theatre Company, Brisbane Festival and Sydney Festival in association with QPAC and The Balnaves Foundation), Graeme Murphy’s Swan Lake (The Australian Ballet) and Mountain (Richard Tognetti and the Australian Chamber Orchestra and directed by Jennifer Peedom).

In addition, a seed fund would support new innovative partnerships using emerging technologies (e.g. AV). Given the industry’s good track record in leveraging investment funding, a seed fund also increases the opportunities to attract matching investment.

As a labour-intensive sector, it will also generate additional employment. Between 2012 and 2015 MPA company labour costs consistently represented 53–56 per cent of MPA’s total annual expenditure.

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Regional access and participation in the arts

Recommendation 5 AMPAG recommends an increase in the Playing Australia Program by a minimum of $8 million allocated evenly over four years from 2018–19 to 2021–22 to support additional strategic performing arts access and engagement in regional Australia.

Recommendation 6 AMPAG recommends an increase in the number of performing arts companies operating with National Touring Status including MPAs required to tour annually.

OR

Recommendation 7 AMPAG recommends base funding include support for touring for those MPAs expected to tour regional Australia annually.

There are many examples of Australian regional communities where arts, culture and creative industries already significantly strengthen the local economy. Bendigo, Northern Rivers, Arnhem Land, Central Australia and Bunbury are just a few. The positive impact of arts and culture in the regions has been highlighted in a ground- breaking report from Deakin University, Economic Regeneration Stats and Stories – Theme 2, The Impact of the Arts in Regional Australia:

Against a backdrop of rural and regional decline, the arts are being used as cornerstones of economic regeneration, framed around tourism to generate income in uncertain times for regional communities. They provide non-traditional means of income, linking cultural tourism to economic growth and attracting particular demographic groups with disposable income.

Arts events and festivals are a major driver of physical renewal, providing an increase in regional tourism, with 57% of first-time visitors to the region giving an event as their main reason for visiting.

… the arts are about regenerating community and activating the local economy by hiring services, attracting audiences, increasing tourism with visitors staying in hotels and B&Bs, eating in cafes and restaurants and going shopping in local stores.

…. A complex system of interactions containing both socio-economic and physical factors aid adaptive efforts of economic regeneration and enhance interactions between community members.13

The report summarised the economic benefits across four key areas:

• place-making • encouraging investment • growing the economy and • improving lives.

13 Economic Regeneration Stats and Stories – Theme 2 The Impact of the Arts In regional Australia, 2015 Deakin University http://d33dlkmx851fuz.cloudfront.net/wp-content/uploads/2015/05/Stats-Stories-2-Economic- Regeneration.pdf 12 www.ampag.com.au

This analysis points to the importance of including arts, culture and creative industry strategies in regional development initiatives.

Significant social value can be gained by expanding activities that can go hand in hand with performing arts regional touring—e.g. digital access to deepen arts engagement, workshops, creative regional development initiatives, masterclasses and school engagement. However, additional opportunities need resourcing to overcome the cost that distance and regional capacity to generate income creates. For example, a regional venue’s seating capacity can vary from 200 to 1200 seat—so box office earnings vary dramatically, yet overheads for performances and workshops are constant.

The Playing Australia fund administered by the Australia Council is designed to support regional touring of performing arts; however, it has not had the capacity to meet the growing needs and ambitions of regional Australia. The fund has been relatively stagnant, generally remaining at its 2008 value. In 2008–09 it was worth $6.06 million, rising to $7.4 million in 2013–14 before dropping back to $6.2 million in 2014–15 and levelling up to 7.2 million in 2016–17. In real value, the fund is slightly down on 2008–09 despite increases in travel overheads, community needs and expectations.

There is also the expectation, within the community and by the government, for many national and state-based MPAs to regularly tour to regional Australia, yet subsidy to offset the high costs of this touring are not included in their base funding.

An increase in funding is needed to enable additional regional arts engagement, extend new support for better access to arts education and audience development initiatives, as well as create new opportunities for other types of touring including inter-regional and regional to city, and to help offset the costs of major state-based touring of large ensembles.

International cultural diplomacy

Recommendations 8 AMPAG supports an additional $5 million over four years for international touring and aligned strategic engagement of Australian productions and artists.

Touring large performing arts companies overseas is expensive, but their prestige and national cut-through is invaluable in building positive impact.

The Foreign Affairs White paper confirmed Australia’s ongoing commitment to public diplomacy including the performing arts. While good work has been done to strengthen insight and cooperation between the Department of the Arts and Department of Foreign Affairs, funding to support Australian work and artists’ international engagement is insufficient. This undermines our capacity to build long- lasting country-to-country and people-to-people relationships and trust through cultural diplomacy. Philanthropy and sponsorship are vital support levers, but without

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additional government investment, our capacity to leverage our cultural diplomacy potential will continue to be complex, and unpredictable.

Indirect investment

Philanthropy: Stimulate broader non-government Investment

Philanthropy provides valuable support to Australia’s arts sector for a vast range of positive developments including: new works, arts education, one-off capital fundraising and endowments for longer term stability. However, there is a need to grow the giving culture within society.

We support government programs to stimulate growth in philanthropy through DGR status, the Australia Cultural Fund and matched funding initiatives. These are valuable ways in which to enable arts organisations’ capacity. However, philanthropy is not a substitute for strategic long-term investment by government. There will always be a need for a healthy mix of direct government investment, company income and private sector support of the arts (philanthropy and corporate sponsorship) to effectively generate a diverse range of positive industry, innovation and social outcomes.

Consistent with government policy to grow philanthropic support we propose the following two priorities for the 2018–19 Budget.

Gift Aid Tax

Recommendation 9 AMPAG recommends the Federal Government establish a 4- year pilot program with the ATO and ROCA listed organisations modelled on the Gift Aid Tax in the UK.

This proposal is based on the UK’s Gift Aid UK policy that has been in place for over two decades.

It enables corporate and individual philanthropists to opt-in to redirect a proportion of the tax deduction rebate they would normally derive from their financial donation back to the charitable organisation. Gift Aid allows the charity to immediately get back the basic rate tax on a gift by a taxpayer.

Performing arts charities direct significant time and resources to cultivate philanthropic support—an additional lever based on the UK Gift Aid would allow companies to leverage donor engagement and charitable support without affecting government’s bottom line.

The UK tax policy also allows higher-rate taxpayers to claim back the rest of their tax via self-assessment forms. Over the five years to March 2017, there was a 30 per cent rise in the value of higher rate relief on Gift Aid to £520 million.

Australia has the advantage of being able to learn from the UK’s processes and experience.

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The UK Gift Tax policy is applied as follows:14

Corporate Gift Aid For donating companies, the method of obtaining the tax relief is very simple—the company deducts the donation from its taxable profits before calculating its tax liability. The donation is thus made gross of tax and the charity does not claim back any tax from HM Revenue & Customs (HMRC). There is no need for the company to provide the charity with a Gift Aid declaration.

Individual Gift Aid For donations from individuals, charities can reclaim the basic rate income or capital gains tax that the individual has paid on the donation, providing the individual supplies the charity with a Gift Aid declaration. In the UK example this boosts the value of the donation to the charity by 25% (assuming the basic rate of income tax is 20%).

In effect, the grossed-up value of the donation is removed from the donor’s higher or additional rate income pot and placed in their basic rate income pot.

For example, if a higher rate taxpayer makes a £100 donation, the grossed-up value of the donation is £125 (as above). The higher rate tax relief is the difference between tax at the higher rate (40%) and basic rate tax (20%)—so 20% of £125 = £25. A higher or additional rate donor must make a claim for relief through their tax return or by notifying their tax office. If the donor claims higher rate relief, the charity receives £125 in total for a net cost to the donor of £75.

The donor must also have been made aware that they need to have paid sufficient income tax and/or capital gains tax to cover the Gift Aid and that if there is a shortfall they will be held liable. There are some rules to follow and the charities are subject to inspection visits by HMRC to ensure compliance.

This proposal would require negligible implementation costs and would benefit from the experience and expertise of implementation in UK and parts of Europe. It would not reduce government revenue; rather, it provides another lever for charities to use in developing donors’ support of the charity.

Creative Partnerships Australia (CPA) match funding

Recommendation 10 AMPAG supports introduction of a new allocation for matched philanthropic support to stimulate new major charitable engagement in the arts.

We welcome the renewal of CPA’s program of $4.4 million per annum ongoing. Philanthropy provides valuable support to Australia’s art sector and while MPAs and a range of arts organisations have managed to grow their support in philanthropy, the field is increasingly competitive.

MPAs have been ineligible to apply for CPA’s match funding program in recent years, a decision made by CPA to manage demand for matched funding and to

14 Gift Aid made simple Nov 2015 prepared by Sayer Vincent LLP Chartered accountants and statutory auditors, London 15 www.ampag.com.au

help build development capacity within smaller arts organisations. The MPAs do not seek to and should not compete with smaller arts organisations.

We therefore also recommend research and development of a new allocation for matched philanthropic support, to stimulate new major charitable engagement and build capacity to support new arts centred projects generated from across the whole sector. It creates potential to take greater risk, generate new creative employment, develop original works, build endowments, extend arts education programs and community access and engagement.

For further information contact: Bethwyn Serow Executive Director AMPAG 02 9253 5351 [email protected] www.ampag.com.au

Appendixes follow:

1. List of AMPAG recommendations 2. List of major performing arts companies

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Appendix 1

Pre-Budget 2018–19 recommendations

Incorporate the arts into domestic federal policy development: Digital economic and innovation strategy, health and education

Recommendation 1 AMPAG calls for the Australian Government to resource the expansion of the STEM agenda to a STEAM (science, technology, engineering, arts, maths) approach in the formation of its digital strategy, to generate better outcomes for its citizens and to strengthen school education outcomes.

Strengthen current support frameworks

Recommendation 2 Maintain and strengthen governments’ commitments to MPA Framework to ensure sustainability and vibrancy. The Federal Government continues its financial commitment to the MPA framework including indexation and core funding for the MPA companies. It also undertakes to review the framework at regular intervals, with capacity to respond to strategic recommendations and address emerging issues, or signs of market failure, in a timely way to ensure stability of supply.

Recommendation 3 AMPAG supports full Indexation to be applied to all Australia Council program funding and the efficiency dividend be removed for the next four years.

Increase Government direct investment in the performing arts

Recommendation 4 AMPAG recommends government stimulate development of original IP through a $20 million over 4 years seed fund for new innovative works of scale.

Recommendation 5 AMPAG recommends an increase in the Playing Australia Program of $8 million allocated evenly over four years from 2018–19 to 2021–22 to support additional strategic performing arts access and engagement in regional Australia.

Recommendation 6 AMPAG recommends an increase in the number of performing arts companies operating with National Touring Status. OR Recommendation 7 AMPAG recommends base funding include support for touring for those MPAs expected to tour regional Australia annually.

Recommendations 8 AMPAG supports an additional $5 million over four years for international touring, and aligned strategic engagement, of Australian productions & artists.

Incentivise private giving

Recommendations 9 AMPAG recommends the Federal Government establishment of a 4-year pilot program with the ATO and ROCA listed organisations modelled on the Gift Aid Tax in the UK

Recommendation 10 AMPAG supports introduction of a new allocation for matched philanthropic support to stimulate new major charitable engagement in the arts.

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Appendix 2

AMPAG list of member companies

Adelaide Symphony Orchestra Australian Brandenburg Orchestra Australian Chamber Orchestra Bangarra Dance Theatre Bell Shakespeare Belvoir Black Swan State Theatre Company Circus Oz Malthouse Theatre Melbourne Symphony Orchestra Melbourne Theatre Company Musica Viva Opera Australia Opera Queensland Orchestra Victoria Queensland Ballet Queensland Symphony Orchestra Queensland Theatre State Opera of South Australia State Theatre Company of South Australia Sydney Dance Company Sydney Symphony Orchestra Sydney Theatre Company Tasmanian Symphony Orchestra The Australian Ballet Victorian Opera*15 West Australian Ballet West Australian Opera West Australian Symphony Orchestra

15 *Associate member from 2018 18 www.ampag.com.au