Federal Budget delivers wins and losses for leisure

Australian Treasurer Wayne Swan's 2012 Budget has delivered funding boosts for sport, the arts and tourism marketing while an increase increase in the Passenger Movement Charge (PMC) will hit travellers when they depart Australia.

Tourism
The PMC will soar from $47 to $55 from 1st July 2012 with the charge to be indexed annually by movements in the Consumer Price Index.

Last raised in 2008, the Government estimates increasing the charge will raise $610 million over the forward estimates period.

Some of the money raised will be put back into Australia's tourism industry, with $61 million earmarked over four years to establish an Asia marketing fund.

The fund, to be administered by Tourism Australia, will support the promotion of Australia to growing markets in Asia and is intended to encourage investment by the private sector and state and territory governments.

In a statement accompanying the budget, Tourism Minister Martin Ferguson said the fund will promote Australia to growing markets in Asia and is in addition to Tourism Australia's $530 million in funding to market Australia domestically and internationally.
Minister Ferguson stated "in less than a decade, it is estimated that there will be 100 million outbound trips undertaken by people from China each year.

"This investment will help ensure Australia is their destination of choice."

Australian Tourism Export Council (ATEC) Managing Director Felicia Mariani welcomed the investment of PMC dividends towards the marketing of Australia but suggested that the ongoing increase will be damaging to the international competitiveness of Australian tourism.

Mariani suggested that the rise in the PMC "is effectively a tax that will, year-on-year, add to the overall cost of international travel to Australia and will no doubt have a significant impact on our international competitiveness.

"While ATEC welcomes the additional spending on our marketing efforts in Asia, it is a case of give with one hand while taking with the other as the tourism industry will also feel the direct impact of an increased tax which acts as a disincentive for travel and local expenditure by international visitors.

"ATEC has always argued that the tourism industry must benefit from the PMC collection, which has grown significantly over the past five years, in line with our increased visitor numbers – reflecting the increasing international demand for Australia as a destination - but we are concerned at the current price-tag."

Mariani said this budget also revealed some important benefits to support small businesses, which make up around 90% of the tourism industry in Australia. 

This includes the tax loss carry back of up to $300,000 per year, the increase in the instant asset write-off threshold to $6,500 and tax claims of the first $5,000 for motor vehicle purchases.

Mariani added "many tourism businesses have been hit hard over the past couple of years by the high dollar and recurring natural disasters so strong measures such as these will help to lighten the burden for small businesses across the nation. "

Arts and Museums
Some of Australia's pre-eminent cultural tourism attractions including the National Gallery of Australia, the National Library and the National Museum are also benefiting from the 2012-13 Budget, with $39.3 million over the next four years to help them digitise their collections and expand their programs.
​and collections.

Part of a $64.1 million funding boost for the arts, the funding will help the institutions open their collections to more people and support education and research.

Arts Minister Simon Crean explained "this investment will position Australia's collecting institutions to contribute to the digital economy and respond to growing community demand for their services."

The funding applies to the Australian National Maritime Museum, the National Archives of Australia, the Bundanon Trust, National Film and Sound Archive, National Library, the National Museum, the Museum of Australian Democracy and the NGA.

Tamara Winikoff, co-convenor of lobby group ArtsPeak, said that digitisation was a necessary investment, but one that applied across the arts sector, not only to major organisations.

Winkhoff stated "what the arts sector has been hanging out for is the need for government to invest in the small-medium arts companies which support innovation and provide the bedrock for the future."

While release of the Federal Government's awaited National Cultural Policy has been delayed, several of its themes were evident in the Budget.

Minister Crean has spoken of "joining the dots" in the cultural sector, by linking arts organisations to such things as digital platforms, the school curriculum and the creative economy.

The Federal Government is yet to respond to a recent review of private sector support for the arts, but the Budget has allocated $3.2 million over two years to the Australia Business Arts Foundation to promote arts sponsorship and philanthropy.

Melbourne cultural bodies will receive more than $5m, with funds going to a new Islamic Museum of Australia ($1.5 million), the Antipodes Centre for Greek Culture, Heritage and Language ($2 million) and the Australian National Academy of Music ($1.6 million).

Sport
The Budget also reaffirmed more than $300 million in ongoing funding for sport to support grassroots participation and high performance programs. 

Minister for Sport Senator Kate Lundy said the Federal Government will continue to invest in the future of sport in Australia by providing funding to boost community participation and help our elite athletes reach their full potential. 

Senator Lundy said the Budget includes more than $120 million in funding to promote community participation and continue a suite of successful national programs that engage the community. 

Senator Lundy stated "by investing in community participation programs, the Government is harnessing the power of sport to strengthen communities and encourage Australians to lead active lives."

Australia's elite athletes will also benefit from the Government's commitment to high performance sport with approximately $170 million in the Budget dedicated to ensure Australia can continue to pursue sporting excellence. 

The key highlights in the Budget for sport include:

• $39.2 million for the continuation of the Active After-School Communities Program for the 2013 school year;
• $2 million over two years for the Community Street Soccer program and a further $560,000 for Reclink Australia to support our most vulnerable Australians gain an improved outlook on life;
• $4 million over four years to continue the Saving Lives in the Water program to continue to support key initiatives aimed at reducing drowning among children under five years of age;
• $3 million towards the Jim Stynes Reach Scholarship Fund to support young men and women to achieve their best through the development of self confidence and their individual skills; 
• $8 million for grassroots football initiatives in Western Sydney and the redevelopment of football facilities in Parklea;
• $2.5 million to contribute to the establishment of a new home for netball in Melbourne;
• $10 million to contribute to the construction of a Community Sports Centre in the Olympic Park precinct in Melbourne;
• $8.7 million for the redevelopment of the King George V sport and community precinct in Glenorchy;
• $1.8 million for the upgrade of facilities at Wayne Richards Park, including the complete resurfacing of the Port Macquarie hockey field;
• Approximately $13 million to the Australian Sports Anti-Doping Authority to continue its fight against doping in sport; and 
• $2.5 million to contribute to the installation of high-definition broadcast standard lighting at Manuka Oval in Canberra.

Images (from top): Chinese tourists in Sydney, the National Maritime Museum and grassroots football initiatives.

5th May 2012 - NATIONAL CULTURAL POLICY SQUEEZED FROM FEDERAL BUDGET

19th May 2012 - SPORT MINISTER HIGHLIGHTS RECORD SPORTS FUNDING AS OLYMPICS LOOM 

7th February 2012 - AUSTRALIAN ISLAMIC MUSEUM MOVES FORWARD

11th May 2011 - FEDERAL BUDGET RECOGNISES CHALLENGES FACING TOURISM: SPORT SPENDING STATIC

28th April 2011 - ATEC WELCOMES CHINA TOURISM AGREEMENT

16th November 2009 - CULTURAL POLICY MUST MOVE BEYOND FUNDING DISPUTES 

17th October 2008 - TELSTRA DOME TO BECOME ETIHAD STADIUM 

Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.