14 December 2014

Indigenous Expenditure

The Productivity Commission has released its 2014 Indigenous Expenditure Report, providing estimates of Australian, State and Territory government expenditure on services provided to Aboriginal and Torres Strait Islander Australians.

Highlights are
  • Total direct expenditure on services for Aboriginal and Torres Strait Islander Australians in 2012-13 was estimated to be $30.3 billion, accounting for 6.1 per cent of total direct general government expenditure. Aboriginal and Torres Strait Islander Australians made up 3.0 per cent of the population in 2013. 
  • Indigenous expenditure increased in real terms by $5.0 billion (19.9 per cent) from 2008-09 to 2012-13, while non-Indigenous expenditure increased by 9.0 per cent. Expenditure per Aboriginal and Torres Strait Islander person increased by 10.3 per cent, and expenditure per non Indigenous person increased by 2.2 per cent. 
  • Estimated expenditure per person in 2012-13 was $43 449 for Aboriginal and Torres Strait Islander Australians, compared with $20 900 for other Australians (a ratio of 2.08 to 1 - an increase from a ratio of 1.93 to 1 in 2008-09). The $22 550 per person difference in 2012-13 reflected the combined effects of: greater intensity of service use ($15 438 or 68.5 per cent) - because of greater need, and because of the younger age profile of the population higher cost of providing services ($7112 or 31.5 per cent) - for example, because of location, or because targeted services are provided in addition to mainstream services (for example, Indigenous liaison officers in hospitals). 
  • Total direct expenditure on services for Aboriginal and Torres Strait Islander Australians in 2012-13 was made up of: $24.7 billion (or $35 313 per person) on services where expenditure is directly related to service use (a proxy for 'on the ground' services) $5.7 billion (or $8137 per person) on services where expenditure is attributed on the basis of their share of the population (expenditure in areas such as defence, foreign affairs and industry assistance, which benefits all Australians equally). 
  • The Australian Government accounted for $14.1 billion (46.6 per cent) of direct Indigenous expenditure in 2012-13 (an increase of $2.4 billion (20.3 per cent) in real terms from 2008-09) with the remaining $16.2 billion (53.4 per cent) provided by State and Territory governments (an increase of $2.6 billion (19.5 per cent) in real terms from 2008-09). 
  • Mainstream services accounted for $24.7 billion (81.4 per cent) of direct Indigenous expenditure in 2012-13 (a real increase of $5.1 billion (26.0 per cent) from 2008-09) with the remaining $5.6 billion (18.6 per cent) provided through Indigenous specific (targeted) services (a real decrease of $0.1 billion (1.2 per cent) from 2008-09).