Parliament of Australia Department of Parliamentary Services BACKGROUND NOTE 27 June 2013 Sports funding: federal balancing act Dr Rhonda Jolly Social Policy Section Contents Introduction ............................................................................................................................................. 1 Part 1: Federal Government involvement in sport .................................................................................. 3 From Federation to the Howard Government.................................................................................... 3 Federation to Whitlam .................................................................................................................. 3 Whitlam: laying the foundations of a new sports system ............................................................. 4 Fraser: dealing with the Montreal ‘crisis’ ...................................................................................... 5 Figure 1: comment on Australia’s sports system in light of its unspectacular performance in Montreal ............................................................................................................ 6 Table 1: summary of sports funding: Whitlam and Fraser Governments ..................................... 8 Hawke and Keating: a sports commission, the America’s Cup and beginning a balancing act ................................................................................................................................................ 8 Basis of policy ........................................................................................................................... 8 Australian Sports Commission (ASC) ........................................................................................ 9 Participation ........................................................................................................................... 10 Figure 2: Aussie Sport .................................................................................................................. 12 Facilities programs .................................................................................................................. 12 Funding packages ................................................................................................................... 13 Box 1: Maintain the Momentum: continuing programs.............................................................. 14 A drug testing agency ............................................................................................................. 14 Assessment ............................................................................................................................. 15 The Howard Government: balancing act version two—aiming for a healthy active Australia ........ 15 Getting active ............................................................................................................................... 15 The Sydney Olympics .............................................................................................................. 17 Table 2: funding the Sydney Olympics......................................................................................... 18 A More Active Australia ............................................................................................................... 18 Building a Healthy, Active Australia ............................................................................................. 19 Active after Schools Communities .......................................................................................... 19 Maintaining elite funding ............................................................................................................ 20 Revamping drug testing .......................................................................................................... 20 Assessment .................................................................................................................................. 21 Rudd and Gillard: balancing act version three—focus on prevention and reform .......................... 22 Independent Sports Panel ........................................................................................................... 22 Box 2: Crawford Report recommendations ................................................................................. 23 Figure 3: Coates view of the Crawford Report ............................................................................ 26 Response to the Crawford Report ............................................................................................... 26 Figure 4: the need to increase participation ............................................................................... 28 Olympic hiccough ........................................................................................................................ 28 Box 3: cost per medal .................................................................................................................. 30 Figure 5: comment on the Australian swimming team’s performance in the London Olympics .................................................................................................................................... 32 Part 2: funding options and debates ..................................................................................................... 32 Tax relief example: Children’s Fitness Tax Credit ............................................................................. 33 The Australian solution: Australian Sports Foundation (ASF) ..................................................... 35 Establishing the ASF ................................................................................................................ 35 Figure 6: Australian Sports Foundation donation process .......................................................... 36 Possible improvements .......................................................................................................... 36 Table 3: donations: Australian Sports Foundation ...................................................................... 37 The lottery funding debate ............................................................................................................... 37 Lottery funding: Britain ................................................................................................................ 38 Australian deliberations ............................................................................................................... 39 Supporting Australia’s elite athletes ...................................................................................................... 41 Box 4: Academies of Sport ........................................................................................................... 41 Direct Athlete Support ............................................................................................................ 42 Box 5: Olympic Athlete Program ................................................................................................. 43 Repaying the favour? ................................................................................................................... 44 Table 4: Australia’s highest paid sports persons: 2012 ............................................................... 48 Dividing the funding pie ......................................................................................................................... 48 Australian Sports Commission .......................................................................................................... 48 Funding distribution .................................................................................................................... 49 Box 6: Australian Sports Commission: achievement outcomes .................................................. 49 Table 5: ASC: funding for sport: 1996–97 to 2012–13 ................................................................ 49 Winning Edge ............................................................................................................................... 50 Other sources of sport funding .............................................................................................................. 51 Australian Olympic Committee ......................................................................................................... 51 Table 6: Australian Olympic Committee (AOC): Medal Incentive Funding ................................. 52 Sponsorship ...................................................................................................................................... 52 Figure 7: national organisations which reject alcohol sponsorship ............................................ 55 Part 3: international examples: approaches to funding elite athlete success and grassroots participation ........................................................................................................................................ 56 United States .................................................................................................................................... 56 Elite .............................................................................................................................................. 56 Grassroots and community ......................................................................................................... 58