<p>Visit the culture portals for Australia - <a href="http://www.acn.net.au" target="_blank">Australia&#39;s Cultural Network</a>&nbsp;and <a href="http://www.ozarts.com.au/" target="_blank">OzArts</a></p>

<p><strong>The Mandate </strong></p>

<p>The Australia Council was established by legislation in 1968 subsuming other arts-related government functions. In 1973 an interim Australia Council was formed and given statutory authority by the <em>Australia Council Act 1975</em>.</p>

<p>The Australia Council is the Australian Government&#39;s arts funding and advisory body. Its vision is to enrich the life of the nation by supporting and promoting the arts. The functions are outlined in Section 5 of the Act.</p>

<p>The organisation serves professional arts, community cultural development, music, theatre, dance, visual arts, crafts, museums and galleries (contemporary visual arts/craft only), professional development of artists and/or cultural workers, cultural industries (audience and market development), writing, book publishing, magazine publishing, translation, media arts, multi-media and arts education. It also supports international export development and national arts service organisations in various art forms and multi-artforms including Arts Law (legal advice to artists) and the Copyright Council.</p>

<p>The Council</p>

<ul>
<li>provides financial support to arts/cultural organisations</li>
<li>provides financial support to individuals in the arts/culture</li>
<li>advises the national government on matters related to the arts/culture</li>
<li>develops national arts/cultural policies</li>
<li>implements national arts/cultural policies</li>
<li>evaluates national arts/cultural policies</li>
<li>conducts research in the arts/culture</li>
<li>promotes public understanding and appreciation of the arts/culture</li>
<li>has responsibility at the national level for coordinating international cultural relations and exchanges (in partnership with the Department of Foreign Affairs and Trade, whose focus is diplomatic while the Councils is export-related or for arts development)</li>
<li>has responsibility for copyright and intellectual property matters (the Council devolves funding to the Copyright Council and the Department also has major role)</li>
<li>organises and manages cultural activities or events (e.g., Performing Arts Market)</li>
<li>awards prizes/honours in the arts/culture</li>
<li>provides training and professional development in artistic/cultural fields</li>
<li>publishes books and/or magazines (research, advocacy and promotional)</li>
</ul>

<p>The Councils functions are set out in Section 5 of the Australia Council Act as follows :</p>

<p>1. To formulate and carry out policies designed:<br />
a) to promote excellence in the arts;<br />
b) to provide, and encourage the provision of, opportunities for people to practice the arts;<br />
c) to promote the appreciation, understanding and enjoyment of the arts;<br />
d) to promote the general application of the arts in the community;<br />
e) to foster the expression of a national identity by means of the arts;<br />
f) to uphold and promote the right of people to freedom in the practice of the arts;<br />
g) to promote the knowledge and appreciation of Australian arts by persons in other countries;<br />
h) to promote incentives for, and recognition of, achievement in the practice of the arts; and<br />
i) to encourage support of the arts by States, local governing bodies and other persons and organisations;</p>

<p>2. To furnish advice to the Commonwealth Government either of its own motion or upon request made to it by the Minister on matters connected with the promotion of the arts or otherwise relating to the performance of its functions; and</p>

<p>3. To do anything incidental or conducive to the performance of any of the foregoing functions.</p>

<p><strong>The Governing Body</strong></p>

<p>The Chair is appointed by the Governor General. Members are appointed by the Minister for the Arts. The Minister must give consideration to recommendations made by the Council and its Boards, and the list of names kept by the Council (see below). The Chair will also consider nominations from other levels of government, the arts or general community.</p>

<p>A majority of the members of the Council must be people who practice or have practiced the arts. The Council comprises the chairs of each of the&nbsp;art form&nbsp;boards, including the Major Performing Arts Board and the Aboriginal and Torres Strait Islander Arts Board. There is also at least one community interest representative on each board. Members are selected to ensure relevant expertise in the arts and regional, gender, ethnic and Indigenous community representation. Council is also now seeking to have a diversity in age to ensure youth representation. &nbsp;The governing body is permitted to have not less than 10 and not more than 14 members (the&nbsp;Chief Executive Officer&nbsp;is additional and is ex-officio). Members are generally appointed for three years but may be up to six.</p>

<p>The Council is required to advertise publicly and keep a list of nominees. This list is referred to by the artform boards&nbsp;when making nominations, and the Minister can also refer to the list.&nbsp;The appointment is in the decision of the Minister.</p>

<p><strong>The Staff</strong></p>

<p>The 143.8 (full time equivalent)&nbsp;Council employees are members of the Australia public service. The chief executive officer is appointed by the Minister for the Arts.&nbsp; Under the Act, the Chair can also be appointed&nbsp;CEO on a full time basis.</p>

<p>The staff who have direct program responsibilities (those who manage programs of support to organisations and/or individuals) come from the field. The organisation does not have regional offices.</p>

<p><strong>Relationship with Government</strong></p>

<p>The Department of Communications, Information Technology and the Arts is the government department with which the Council has the closest relationship.</p>

<p>The Council is delegated powers under the Act. The budget is appropriated directly to the Council, which is accountable for its expenditure.</p>

<p>Independence from government is ensured by the arms-length and peer-assessment principles, which are enshrined in the Councils ethos and governments relationship to it. The Act specifies what action the Minister may take in a section titled Directions by the Minister. The Minister may give general policy directions (in writing) but cannot give specific directions in relation to the giving of a grant, etc.</p>

<p>The organisation&#39;s accountability to government is ensured by the Commonwealth Authorities and Companies Act (1997), which describes obligations in regard to monitoring performance, etc. Output/outcome budgeting, introduced in 1998-99, requires Council to nominate key outcomes and outputs against which expenditure must be reported. An Annual Report is provided annually to Parliament. Senate Estimates processes provide an opportunity for questioning government agencies about funding and activities.</p>

<p>The government</p>

<ul>
<li>appoints the members of the governing body</li>
<li>appoints the chief executive officer</li>
<li>determines the amount of funding the organisation receives</li>
</ul>

<p>The Department sends an observer to all Council meetings, who also reports any relevant departmental matter to the Council.</p>

<p>The Council&#39;s financial accounts are audited by the government auditor or an auditor appointed by the government.</p>

<p>The Council</p>

<ul>
<li>is required to file an annual report with the legislature or government</li>
<li>determines its own policies</li>
<li>determines its own current priorities</li>
<li>establishes its own strategic plan</li>
<li>selects its staff members</li>
<li>determines the allocation of the budget to various programs and activities</li>
<li>establishes its various funding programs</li>
<li>determines who will receive its financial support</li>
</ul>

<p>The allocation of the Council&#39;s budget to various programs and activities is in part determined by government and in part by Council. In 1999-2000, of a total budget of A$76m, A$8.6m (US$5.2m) is specifically for programs in Regional Arts, Major Festivals, Contemporary Music Export Development, Young and Emerging Artists and a Youth Arts Festival. The remainder is determined by Council according to its own budget strategy. The Council has a triennial funding agreement with government.</p>

<p>If the Minister intends to give a direction to the Council in relation to the performance of its functions or the exercise of its powers, she/he must do this in writing to the Chair and must copy the direction to each house of Parliament.</p>

<p>The Council co-operates with other independent funding bodies, which receive some of their revenues from the Council (very minor - only part of the Regional Arts Fund). In Australia, the third level of government is the local government. The Council has a multi-year agreement with the National Association of Local Government Authorities (a national body with about 8-10 members, i.e. roughly one per State/Territory) to undertake arts advocacy and pilot projects. The Council provides the partnership with a very small budget.</p>

<p><strong>Budget and Revenue Sources:</strong></p>

<p>The Australia Council&#39;s total budget in 2002-2003 was A$140.9m (approx US$96m).&nbsp; Of this A$5.3m is specifically for government initiatives and A$74.9m is earmarked for major performing arts companies.&nbsp; The remainder is determined by Council according to its own budget strategy.&nbsp;</p>

<p>Of the total budget, 96.43% is contributed by the national government, 1.83% from state governments, 0.4% are self-generated revenues (user fees, sales of products, etc.) and 1.3% interest on investments and 0.04% from other non specific sources.</p>

<p>The Council receives a legally obligated contribution from the government (through a triennial funding agreement). Over the last five years funding from government sources has increased.</p>

<p>The Council also receives occasional bequests from private individuals and, with governmental approval,&nbsp;is actively pursuing revenues from other non-government sources.&nbsp; The Australia Council generates some income through the sale of assets, goods and services.&nbsp; Over the last five years, funding from non-governmental sources has remained at the same level.</p>

<p>Artsupport Australia is a joint initiative of the Australia Council and the Australia Business Arts Foundation, aimed at facilitating donations to artists and arts groups.</p>

<p><strong>Programs of Financial Support for the Arts/Cultural Community</strong></p>

<p>The Council provides financial support to organisations and individuals for professional activities. Most of its programs are organised by discipline or sector and by function within the art forms listed above.</p>

<p>The funds can be used for</p>

<ul>
<li>creation</li>
<li>research and development</li>
<li>production, presentation and exhibition</li>
<li>publication</li>
<li>the operations of an organization</li>
<li>conservation and preservation (Indigenous art only)</li>
</ul>

<p>Projects not involving professional artists/artsworkers are not supported by the Council, nor are projects without a clearly defined arts component, major capital expenditure, video and camera equipment, musical instruments not directly related to artists creating work, initial arts training or study, academic research, administration/infrastructure costs for academic conferences, competitions, prizes or fundraising events, works or activities primarily for educational or technical purposes.</p>

<p>Partnerships and Commissions programs are important features of the Councils financial support programs. They encourage arts organisations to seek access to new resources, opportunities and audiences for Australia arts and artists though partnerships with public and private sector organisations. For commissions, the commissioning organisation needs to provide at least 30% of the cost of the commission.</p>

<p>The Council also provides fellowships for individuals - once in a lifetime only - for creative work.</p>

<p>The Audience and Market Development section provides grants in response to specific proposals and via brokered arrangements.</p>

<p><strong>Assessment of Applications for Financial Support</strong></p>

<p>Applications for financial support are assessed by the members of the&nbsp;art form&nbsp;Boards, including the Major Performing Arts Board, and the Aboriginal and Torres Strait Islander Arts Board (ATSIA) Grants Assessment Committee.&nbsp; These bodies hold grant assessment meetings about twice per year.&nbsp; The&nbsp;Boards use a scoring system based on published criteria.</p>

<p>The members of the art form Boards are appointed by the Minister. Members of the ATSIA Grants Assessment&nbsp;Committee are appointed by the Council.</p>

<p>The Register of Peers is a database containing the names of people who self-nominate as peers. Peers are defined by Council as anyone who, by virtue of their knowledge or experience, is equipped to make a fair and informed assessment of artistic work and grant applications. Peers from the Register can be called on (they are selected by the&nbsp;Board Chair) to provide advice to Boards on assessment of grant applications and the development of art form policy. They may also act as external assessors for applications where&nbsp;Board members do not have the skill, knowledge or opportunity to provide assessments.</p>

<p>The peers on the&nbsp;Boards collectively make decisions. Lists of grant decisions are sent to Council members and provided in the Councils Annual Report.</p>

<p>Peer assessors are generally appointed to the Boards, by the Minister, for three years but can be for up to&nbsp;six. To prevent conflict of interest, no applications are eligible for assessment where a member of the peer body making the grant decision is also the applicant or is the sole or major beneficiary through a third party. For cases where a peer is a <em>minor</em> beneficiary or there is a perceived conflict of interest, action is taken on a case-by-case basis. Generally, peers are required to leave the room during discussion and assessment of the relevant applications.</p>

<p><strong>Unique or Special Features of the Organisation</strong></p>

<p>Australia&#39;s peak arts organisation, the Australia Council is the Australian government&#39;s arts funding and advisory body.&nbsp; It supports and promotes the practice and enjoyment of the arts in an environment of multicultural diversity.&nbsp; In 2002-2003, the Council had a budget of A$136m and approved 1,982 grants to artists and arts organisations.&nbsp; These grants are decided by two principles: &#39;arm&#39;s length&#39; funding, which ensures that decisions are well distanced from the political process; and &#39;peer assessment&#39; where funding decisions are made by artists, individuals linked to the arts and community representatives.</p>

<p><strong>Greatest Current Challenge</strong></p>

<p>Australia&#39;s burgeoning cultural industry is challenged by increasingly globalised markets and cultural influences, a small domestic market, substantial&nbsp;distance from world art markets and competition for limited government and corporate support&nbsp;for arts&nbsp;bodies.&nbsp; Other significant challenges are the lack of indexation of grants, leading to arts organisations squeezing their product as funds are absorbed by infrastructure costs; and a pressing need to extend funding for arts in education.</p>

<p>&nbsp;<strong>Greatest Current Strength</strong></p>

<p>One of the Council&#39;s great strengths is its national leadership role in developing programs of support for the arts and their place in the Australian community and internationally.&nbsp; This includes support for individual artists; encouragement of artistic, cultural and geographical diversity; programs of support for new media arts practice; a program of support over three decades for Indigenous arts and a national Aboriginal and Torres Strait Islander arts policy; and market development initiatives, domestic and international.&nbsp; In 2003-2003, the Council launced its Indigenous protocol guides for performance, new media, writing, song and visual cultures in response to concerns about copyright infringement of Indigenous design and imagery and exploitation of Indigenous cultural knowledge and intellectual property.</p>