Australia

Facts & Figures

Map of Australia
Sovereign: Queen Elizabeth II (1952)
Governor-General: Quentin Bryce (2008)
Prime Minister: Julia Gillard (2010)
Land area: 2,941,283 sq mi (7,617,931 sq km); total area: 2,967,893 sq mi (7,686,850 sq km)
Population (2010 est.): 21,515,754 (growth rate: 1.1%); birth rate: 12.4/1000; infant mortality
rate: 4.67/1000; life expectancy: 81.7; density per sq mi: 7
Capital (2003 est.): Canberra, 327,700
Largest cities: Sydney, 4,250,100; Melbourne, 3,610,800; Brisbane, 1,545,700; Perth,
1,375,200; Adelaide, 1,087,600
Monetary unit: Australian dollar

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Geography
The continent of Australia, with the island state of Tasmania, is approximately equal in area to
the United States (excluding Alaska and Hawaii). Mountain ranges run from north to south along
the east coast, reaching their highest point in Mount Kosciusko (7,308 ft; 2,228 m). The western
half of the continent is occupied by a desert plateau that rises into barren, rolling hills near the
west coast. The Great Barrier Reef, extending about 1,245 mi (2,000 km), lies along the
northeast coast. The island of Tasmania (26,178 sq mi; 67,800 sq km) is off the southeast coast.

Government
Democracy. Symbolic executive power is vested in the British monarch, who is represented
throughout Australia by the governor-general.

History
The first inhabitants of Australia were the Aborigines, who migrated there at least 40,000 years
ago from Southeast Asia. There may have been between a half million to a full million
Aborigines at the time of European settlement; today about 350,000 live in Australia.
Dutch, Portuguese, and Spanish ships sighted Australia in the 17th century; the Dutch landed at
the Gulf of Carpentaria in 1606. In 1616 the territory became known as New Holland. The
British arrived in 1688, but it was not until Captain James Cook's voyage in 1770 that Great
Britain claimed possession of the vast island, calling it New South Wales. A British penal colony
was set up at Port Jackson (what is now Sydney) in 1788, and about 161,000 transported English
convicts were settled there until the system was suspended in 1839.
Free settlers and former prisoners established six colonies: New South Wales (1786), Tasmania
(then Van Diemen's Land) (1825), Western Australia (1829), South Australia (1834), Victoria
(1851), and Queensland (1859). Various gold rushes attracted settlers, as did the mining of other
minerals. Sheep farming and grain soon grew into important economic enterprises. The six
colonies became states and in 1901 federated into the Commonwealth of Australia with a
constitution that incorporated British parliamentary and U.S. federal traditions. Australia became
known for its liberal legislation: free compulsory education, protected trade unionism with
industrial conciliation and arbitration, the secret ballot, women's suffrage, maternity allowances,
and sickness and old-age pensions.

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From the World Wars to the End of the Millennium

Australia fought alongside Britain in World War I, notably with the Australia and New Zealand
Army Corps (ANZAC) in the Dardanelles campaign (1915). Participation in World War II
helped Australia forge closer ties to the United States. Parliamentary power in the second half of
the 20th century shifted between three political parties: the Australian Labour Party, the Liberal
Party, and the National Party. Australia relaxed its discriminatory immigration laws in the 1960s
and 1970s, which favored Northern Europeans. Thereafter, about 40% of its immigrants came
from Asia, diversifying a population that was predominantly of English and Irish heritage. An
Aboriginal movement that grew in the 1960s gained full citizenship and improved education for
the country's poorest socioeconomic group.
In March 1996, the opposition Liberal Party–National Party coalition easily won the national
elections, removing the Labour Party after 13 years in power. Pressure from the new,
conservative One Nation Party threatened to reduce the gains made by Aborigines and to limit
immigration.
In Sept. 1999, Australia led the international peacekeeping force sent to restore order in East
Timor after pro-Indonesian militias began massacring civilians to thwart East Timor's
referendum on independence.

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Changes in Immigration Policy

John Howard won a third term in Nov. 2001, primarily as the result of his tough policy against
illegal immigration. This policy has also brought him considerable criticism: refugees attempting
to enter Australia—most of them from Afghanistan, Iran, and Iraq and numbering about 5,000
annually—have been imprisoned in bleak detention camps and subjected to a lengthy
immigration process. Asylum-seekers have staged riots and hunger strikes. Howard has also
dealt with refugees through the “Pacific solution,” which reroutes boat people from Australian
shores to camps in Papua New Guinea and Nauru. In 2004, however, the government began
easing its policies on immigration.

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Changes in Immigration Policy

John Howard won a third term in Nov. 2001, primarily as the result of his tough policy against
illegal immigration. This policy has also brought him considerable criticism: refugees attempting
to enter Australia—most of them from Afghanistan, Iran, and Iraq and numbering about 5,000
annually—have been imprisoned in bleak detention camps and subjected to a lengthy
immigration process. Asylum-seekers have staged riots and hunger strikes. Howard has also
dealt with refugees through the “Pacific solution,” which reroutes boat people from Australian
shores to camps in Papua New Guinea and Nauru. In 2004, however, the government began
easing its policies on immigration.
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Australia on the International Stage as Peacekeeper

Prime Minister Howard sent 2,000 Australian troops to fight alongside American and British
troops in the 2003 Iraq war, despite strong opposition among Australians.
In July 2003, Australia successfully restored order to the Solomon Islands, which had descended
into lawlessness during a brutal civil war.
Australian citizens have been the victims of two significant terrorist attacks in recent years: the
2002 Bali, Indonesia, bombings by a group with ties to al-Qaeda in which 202 died, many of
whom were Australian, and the 2004 attack on the Australian embassy in Indonesia, which killed
ten.
In Oct. 2004, Howard won a fourth term as prime minister. When rival security forces in East
Timor began fighting each other in 2006, Australia sent 3,000 peacekeeping troops to stem the
violence. Howard was defeated by the Labor Party's Kevin Rudd in elections in Nov. 2007. Rudd
campaigned on a platform for change, and promised to focus on the environment, education, and
healthcare. Observers predicted Rudd would maintain a close relationship with the United States.
The military began withdrawing Australia’s 550 troops from Iraq in June 2008, following
through on a promise made by Rudd.
The worst wildfires in Australian history killed at least 181 people in the state of Victoria,
injured more than a hundred, and destroyed more than 900 houses in Feb. 2009. At least one of
the fires was determined to be the work of arsonists. Australian officials were criticized for
failing to evacuate those in danger. A government inquiry was requested to research the state's
response to the fires.

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Australia Elects Its First Female Prime Minister

Rudd's popularity plummeted in May 2010, largely because he shelved his environmental policy
that centered on an emissions-trading system. In June, the Labor Party ousted him as its leader
and elected his deputy, Julia Gillard. She became Australia's first female prime minister in June
and promptly called for elections, which were held in August. They resulted in a hung
parliament, with neither the incumbent Labor Party nor the conservative Liberal-National
coalition, led by Tony Abbott, taking a majority of seats. It is the country's first hung parliament
in 70 years. After several weeks of attempting to woo members of parliament to her side, Gillard
succeeded in early September, when two independents backed her. It was enough to give her the
slimmest majority: 76 out of 150 seats.
See also Australian dependencies.
See also Encyclopedia: Australia .
U.S. State Dept. Country Notes: Australia
Australian Bureau of Statistics www.abs.gov.au/
Information Please® Database, © 2007 Pearson Education, Inc. All rights reserved

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Background Note: Australia

Official Name: Commonwealth of Australia
PROFILE

Geography
Area: 7.7 million sq. km. (3 million sq. mi.); about the size of the 48 contiguous United States.
Cities (2009): Capital--Canberra (pop. 351,000). Other cities--Sydney (4.5 million), Melbourne
(3.9 million), Brisbane (2 million), Perth (1.6 million), Adelaide (1.2 million), Darwin (124,000),
Hobart (212,000).
Terrain: Varied, but generally low-lying.
Climate: Relatively dry and subject to drought, ranging from temperate in the south to tropical in
the far north.

People
Nationality: Noun and adjective--Australian(s).
Population (May 2010 est.): 22.3 million.
Annual population growth rate: 2.1%.
Religions (2006 census): Catholic 26%, Anglican 19%, other Christian 19%, other non-Christian
1%, Buddhist 2.1%, Islam 1.7%, no religion 19%, and not stated 12%.
Languages: English.
Education: Years compulsory--to age 16 in all states and territories except New South Wales and
the Northern Territory where it is 15, and Western Australia where it is 17. Literacy--over 99%.
Health: Infant mortality rate--4.7/1,000. Life expectancy--males 78.7 yrs., females 83.5 yrs.
Work force (10.8 million): Agriculture, fishing and forestry--3.25%; mining--1.6%;
manufacturing--9.1%; retail trade--10.7%; public administration, defense, and safety--6.2%;
construction--9%.

Government
Type: Constitutional monarchy: democratic, federal-state system.
Constitution: Passed by the British Parliament on July 9, 1900.
Independence (federation): January 1, 1901.
Branches: Executive--Queen Elizabeth II (head of state, represented by a governor general); the
monarch appoints the governor general on the advice of the prime minister. Legislative--
bicameral Parliament (76-member Senate, 150-member House of Representatives). The governor
general appoints the prime minister (generally the leader of the party which holds the majority in
the House of Representatives) and appoints ministers on the advice of the prime minister.
Judicial--independent judiciary.
Administrative subdivisions: Six states and two territories.
Political parties: Australian Labor, Liberal, the Greens, the Nationals, and Family First. The
Australian Labor Party currently forms the government.
Suffrage: Universal and compulsory 18 and over.
Central government budget (revenue): FY 2008-2009 A$298.9 billion (U.S. $269 billion); FY
2009-2010 A$294.2 billion (U.S. $264.8 billion); FY 2010-2011 (estimate): $A321.8 billion
(U.S. $290 billion).
Defense: A$25.7 billion (U.S. $23.13 billion) or approx 2% of GDP for FY 2010-2011.

Economy
GDP (2009-2010 estimate): A$1.2 trillion (U.S. $1.1 trillion).
Inflation rate (year to March 2010): 2.9% per year.
Reserve Bank official interest rate (May 2010): 4.5%.
Trade: Exports ($176.7 billion, 2009 estimate)--coal, iron ore, gold, meat, wool, alumina, wheat,
machinery and transport equipment. Major markets--China, Japan, South Korea, India, U.S.
($8.7 billion), and U.K. Imports ($180.5 billion, 2009 estimate)--machinery and transport
equipment, computers and office machines, telecommunication equipment and parts; crude oil
and petroleum products. Major suppliers--China, United States ($20.05 billion), Japan, Thailand,
and Singapore.
Exchange rate (2010): U.S. $1 = A$1.11 (average for 2010 of A$1 = U.S. $0.90).

PEOPLE
Australia's indigenous inhabitants, a hunting-gathering people collectively referred to today as
Aboriginals and Torres Straits Islanders, arrived more than 40,000 years ago. Although their
technical culture remained static--depending on wood, bone, and stone tools and weapons--their
spiritual and social life was highly complex. Most spoke several languages, and confederacies
sometimes linked widely scattered tribal groups. Indigenous population density ranged from one
person per square mile along the coasts to one person per 35 square miles in the arid interior.
When Captain James Cook claimed Australia for Great Britain in 1770, the native population
may have numbered 300,000 in as many as 500 tribes speaking many different languages. In
2006 the indigenous population was approximately 517,200, representing about 2.5% of the
population. Since the end of World War II, the government and the public have made efforts to
be more responsive to aboriginal rights and needs, most recently with Prime Minister Kevin
Rudd's historic apology to the indigenous people in February 2008 which included a pledge “to
close the gap that lies between us in life expectancy, educational achievement and economic
opportunity.”

Immigration has been vital to Australia's development since the beginning of European
settlement in 1788. For generations, most settlers came from the British Isles, and the people of
Australia are still predominantly of British or Irish origin, with a culture and outlook similar to
those of Americans. Non-British/Irish immigration has increased significantly since World War
II through an extensive, planned immigration program. Since 1945, 7 million migrants have
settled in Australia, including 700,000 refugee and humanitarian entrants. About 80% have
remained; 24%--almost one in four--of Australians are foreign-born. Britain, Ireland, Italy,
Greece, New Zealand, and the former Yugoslavia were the largest sources of post-war
immigration. In the year to June 2009, New Zealand was the largest source country for
permanent migrants to Australia, with Britain, India, China, and the Philippines making up the
rest of the top five. Australia's humanitarian and refugee program of about 13,000 per year is in
addition to other immigration programs. In recent years, refugees from Africa, the Middle East,
and Southwest Asia have comprised the largest element in Australia's refugee program.

Although Australia has fewer than three people per square kilometer, it is one of the world's most
urbanized countries. Less than 2.5% of the population lives in remote or very remote areas.

Cultural Achievements
Much of Australia's culture is derived from European roots, but distinctive Australian features
have evolved from the environment, aboriginal culture, and the influence of Australia's
neighbors. The vigor and originality of the arts in Australia--film, opera, music, painting, theater,
dance, and crafts--have achieved international recognition.
Australian actors and comedians such as Nicole Kidman, Russell Crowe, Rachel Griffiths, Cate
Blanchett, Geoffrey Rush, Hugh Jackman, Naomi Watts, the late Heath Ledger, Simon Baker,
and Dame Edna Everage (Barry Humphries) have achieved enormous popularity in the United
States. Directors such as Peter Weir, Philip Noyes, and Russell Mulcahy, the conductor Sir
Charles Mackerras, and singers and musicians such as Olivia Newton-John, The Wiggles,
AC/DC, Dame Joan Sutherland, Dame Nellie Melba, and Kylie Minogue are well known.

Australian artists with international reputations include Sidney Nolan, Russell Drysdale, Pro
Hart, and Arthur Boyd. Writers who have achieved world recognition include Thomas Keneally,
Colleen McCullough, Nevil Shute, Morris West, Jill Ker Conway, Peter Carey, Robert Hughes,
Germaine Greer, and Nobel Prize winner Patrick White.

In sports, Australian athletes are internationally renowned, particularly in swimming, diving,

cricket, netball, tennis, rugby, rugby league, and golf. Australia's share of Olympic medals and
world titles is larger than its share of the world's population.

HISTORY
Australia was uninhabited until stone-culture peoples arrived, perhaps by boat across the waters
separating the island from the Indonesia archipelago more than 40,000 years ago. Portuguese,
Spanish, Dutch, and English explorers observed the island before 1770, when Captain Cook
explored the east coast and claimed it for Great Britain. (Three American colonists were crew
members aboard Cook's ship, the Endeavour).

On January 26, 1788 (now celebrated as Australia Day), the First Fleet under Captain Arthur
Phillip landed at Sydney, and formal proclamation of the establishment of the Colony of New
South Wales followed on February 7. Many of the first settlers were convicts, some condemned
for offenses that today would often be thought trivial. From the mid-19th century convict
transportation to Australia significantly declined; the last ship to arrive was in 1868. The
discovery of gold in 1851 led to increased population, wealth, and trade.

The six colonies that now constitute the states of the Australian Commonwealth were established
in the following order: New South Wales, 1788; Tasmania, 1825; Western Australia, 1829;
South Australia, 1836; Victoria, 1851; and Queensland, 1859. Settlement preceded these dates in
most cases. Discussions between Australian and British representatives led to adoption by the
British Government of an act to constitute the Commonwealth of Australia in 1900, effective
January 1, 1901. In 1911, control of the Northern Territory was transferred from South Australia
to the Commonwealth. Also that year, the Australian Capital Territory (where the national
capital, Canberra, is located), was established. The Northern Territory and Australian Capital
Territory were granted self-government in 1978 and 1988, respectively.

The first federal Parliament was opened at Melbourne in May 1901 by the Duke of York (later
King George V). In May 1927, the seat of government was transferred to Canberra, a city
designed by American Walter Burley Griffin. The first session of Parliament in Canberra was
opened by another Duke of York (later King George VI). Australia passed the Statute of
Westminster Adoption Act on October 9, 1942 (with effect as of September 3, 1939), which
officially established Australia's complete autonomy in both internal and external affairs and
formalized a situation that had existed for years. The Australia Act (effective March 3, 1986)
eliminated almost all remaining vestiges of British legal authority, including the ability to appeal
to the British Privy Council. "Advance Australia Fair" was adopted as the national anthem in
1984.

GOVERNMENT
The Commonwealth government is a constitutional monarchy with a Constitution patterned
partly on the U.S. Constitution, although it does not include a "bill of rights." Powers of the
Commonwealth are specifically defined in the Constitution, and the residual powers remain with
the states. Proposed changes to the Constitution must be approved by the Parliament and the
people, via referendum.

Australia is an independent nation within the Commonwealth. Queen Elizabeth II is the head of
state and since 1973 has been officially styled "Queen of Australia." The Queen is represented
federally by a governor general and in each state by a governor. By convention, the governor
general generally acts on the advice of the prime minister and other ministers. However the
governor general has "reserve powers," including the power to dismiss ministers, last exercised
in 1975.

The federal Parliament is bicameral, consisting of a 76-member Senate and a 150-member House
of Representatives. Twelve senators from each state are elected for 6-year terms, with half
elected every 3 years. Each territory has two senators who are elected for 3-year terms,
concurrent with that of the House. Seats in the House of Representatives are allocated among the
states and territories roughly in proportion to population. The two chambers have equal powers,
except all proposals for appropriating revenue or imposing taxes must be introduced in the House
of Representatives. Under the prevailing Westminster parliamentary system, the leader of the
political party or coalition of parties that wins a majority of the seats in the House of
Representatives becomes prime minister. The prime minister and the cabinet wield actual power
and are responsible to the Parliament, of which they must be elected members. General elections
are held at least once every 3 years; the last general election was in November 2007.

Each state is headed by a premier, who is the leader of the party with a majority or a working
minority in the lower house of the state legislature. (Queensland is an exception, with a
unicameral parliament.) Australia's two self-governing territories have political systems similar
to those of the states, but with unicameral assemblies. Each territory is headed by a chief minister
who is the leader of the party with a majority or a working minority in the territory's legislature.
More than 670 local councils assist in the delivery of services such as road maintenance, sewage
treatment, and the provision of recreational facilities.

At the apex of the court system is the High Court of Australia. It has general appellate
jurisdiction over all other federal and state courts and possesses the power of constitutional
review.

Principal Government Officials

Governor General--Quentin Bryce
Prime Minister--Kevin Rudd
Deputy Prime Minister--Julia Gillard
Treasurer--Wayne Swan
Foreign Minister--Stephen Smith
Defense Minister--John Faulkner
Trade Minister--Simon Crean
Ambassador to the United States--Kim Beazley
Ambassador to the United Nations--Gary Quinlan

Australia maintains an embassy in the United States at 1601 Massachusetts Avenue NW,
Washington, DC 20036 (tel. 202-797-3000), and consulates general in New York (212-351-
6500), San Francisco (415-536-1970), Honolulu (808-524-5050), Los Angeles (310-229-4800),
Chicago (312-419-1480) and Atlanta (404-760-3400).

POLITICAL CONDITIONS
Three political parties dominate the center of the Australian political spectrum. The Liberal Party
(LP), nominally representing urban business interests, and its smaller coalition partner, The
Nationals, nominally representing rural interests, are the more conservative parties. The
Australian Labor Party (ALP) nominally represents workers, trade unions, and left-of-center
groups. While the ALP, founded by labor unions, traditionally had been moderately socialist in
its policies and approaches to social issues, today it is best described as a social democratic party.
All political groups are tied by tradition to welfare programs. Over the last decade, Australia has
increased welfare payments to families while imposing obligations on those receiving
unemployment benefits and disability pensions. There is strong bipartisan sentiment on many
international issues, including Australia's commitment to its alliance with the United States.

The ALP, under the leadership of Kevin Rudd, defeated the Liberal/National coalition, led by
then-Prime Minister John Howard, in the November 24, 2007 election. The ALP holds 83 seats
in the House of Representatives, against 64 for the Liberal/National coalition, and 3
independents. The composition of the Senate is 37 seats for the coalition, 32 for the ALP, five for
the Greens, one for Family First, and one independent.

Rudd and the ALP won the election with a message promising "new leadership" after eleven and
a half years of the Howard government. Rudd portrayed himself as an "economic conservative,"
while criticizing unpopular Howard government policies on workplace relations reform, climate
change, and the war in Iraq. The Rudd government ratified the Kyoto Protocol and is working
with the international community on combating climate change. It has undone some labor market
reforms instituted by the Howard government and is investing in an “education revolution.” The
Australian Government's foreign policy shows strong continuity with that of its predecessors,
stressing relations with four key countries: the United States, Japan, China, and Indonesia. The
Rudd government strongly supports U.S. engagement in the Asia-Pacific region and increased
Australia’s troop contribution in Afghanistan. It withdrew Australia's combat troops from Iraq in
2008 and ended its military mission in Iraq on July 31, 2009.

ECONOMY
Australia's economy is dominated by its services sector, yet it is the agricultural and mining
sectors that account for the bulk of Australia's exports. Australia's comparative advantage in the
export of primary products is a reflection of the natural wealth of the Australian continent and its
small domestic market; 22 million people occupy a continent the size of the contiguous United
States. The relative size of the manufacturing sector has been declining for several decades, but
has now steadied at around 8.5% of GDP. The global recovery is putting upward pressure on
prices for Australia's commodity exports, which is expected to cause a substantial rise in the
terms of trade in 2010. The terms of trade are expected to rebound by around 25% by mid–2010,
injecting $30 billion into the economy and helping to reinvigorate the mining sector and
economic activity more generally.

Since the 1980s, Australia has undertaken significant structural reform of its economy and has
transformed itself from an inward-looking, highly protected, and regulated marketplace to an
open, internationally competitive, export-oriented economy. Key economic reforms included
unilaterally reducing high tariffs and other protective barriers to free trade, floating the
Australian dollar, deregulating the financial services sector, including liberalizing access for
foreign banks, increasing flexibility in the labor market, reducing duplication and increasing
efficiency between the federal and state branches of government, privatizing many government-
owned monopolies, and reforming the taxation system, including introducing a broad-based
Goods and Services Tax (GST) and large reductions in income tax rates.

Australia enjoys one of the highest standards of living in the G7. Australia's economic standing
in the world is a result of a commitment to best-practice macroeconomic policy settings,
including the delegation of the conduct of monetary policy to the independent Reserve Bank of
Australia, and a broad acceptance of prudent fiscal policy where the government aims for fiscal
balance over the economic cycle. Economic recovery is strengthening, with GDP forecast to
grow by 3.25% in 2010–2011 and 4% in 2011–2012, leading to further reductions in the
unemployment rate. The success of monetary and fiscal stimulus will help the budget return to
surplus in 2012–2013, 3 years ahead of schedule. Net debt is expected to peak at 6.1% of GDP in
2011–2012, considerably below the previous forecast of 9.6% of GDP.

The unemployment rate is expected to fall from its current level of 5.3%, down to 5% in late
2010–2011, and 4.75% in late 2011–2012, around levels consistent with full employment. Labor
market participation has remained at around 65%. Both the federal and state governments have
recognized the need to invest heavily in water, transport, ports, telecommunications, and
education infrastructure to expand Australia's supply capacity. The largest river system in
Australia, the Murray-Darling, and related coastal lakes and wetlands in South Australia are
critically threatened, and the government has developed a plan to improve irrigation
infrastructure and efficiency and buy back unused water allocations along the river.

A second significant issue is climate change. A report commissioned by then-Prime Minister

John Howard recommended a domestic carbon emissions trading scheme and that Australia take
an active role in developing a future global carbon emissions trading system. Prime Minister
Kevin Rudd planned to introduce a domestic carbon trading system by 2011 to reduce emissions
by 5% from 2000 levels by 2020. However, the Rudd government has now deferred legislation
establishing an emissions trading scheme until 2013, at the earliest.

The Australia-U.S. Free Trade Agreement (AUSFTA) entered into force on January 1, 2005. The
AUSFTA was the first FTA the United States concluded with a developed economy since the
U.S.-Canada FTA in 1988. Australia also has FTAs with New Zealand-ASEAN, Singapore,
Thailand, and Chile, and is pursuing other FTAs, including with China, Japan, Malaysia, and
South Korea. A burgeoning trade relationship marked by ongoing, multi-billion dollar resource
export contracts and rising manufactured imports has driven FTA negotiations with China.

FOREIGN RELATIONS
Australia has been an active participant in international affairs since federation in 1901, and
Australian forces have fought beside the United States and other Allies in every significant
conflict since World War I. On January 8, 1940, the governments of the United States and
Australia announced the establishment of bilateral diplomatic relations. In 1944, Australia
concluded an agreement with New Zealand dealing with the security, welfare, and advancement
of the people of the independent territories of the Pacific (the ANZAC pact). After World War II,
Australia played a role in the Far Eastern Commission in Japan and supported Indonesian
independence during that country's revolt against the Dutch. Australia was one of the founding
members of the United Nations, the South Pacific Commission, and the Colombo Plan. In
addition to contributing to UN forces in Korea--it was the first country to announce it would do
so after the United States--Australia sent troops to assist in putting down the 1948-1960
communist revolt in Malaya and later to combat the 1963-1965 Indonesian-supported invasion of
Sarawak. The United States, Australia, and New Zealand signed the ANZUS Treaty in 1951,
which remains Australia's pre-eminent formal security treaty alliance. Australia sent troops to
assist South Vietnamese and U.S. forces in Vietnam, and joined coalition forces in the Persian
Gulf conflict in 1991, in Afghanistan in 2001, and in Iraq in 2003.

Australia has been active in the Australia-New Zealand-U.K. agreement and the Five-Power
Defense Arrangements--successive arrangements with Britain and New Zealand to ensure the
security of Singapore and Malaysia. Australia participates in a Trilateral Security Dialogue with
the United States and Japan. One of the drafters of the UN Charter, Australia has given firm
support to the United Nations and its specialized agencies. It was last a member of the Security
Council in 1985-86, a member of the Economic and Social Council for 1986-89, and a member
of the UN Human Rights Commission for 1994-96 and 2003-2005. Australia is seeking a non-
permanent seat on the UN Security Council for 2013-2014. Australia takes a prominent part in
many other UN activities, including peacekeeping, nonproliferation and disarmament
negotiations, and narcotics control. Australia also is active in meetings of the Commonwealth
Heads of Government and the Pacific Islands Forum, and has been a leader in the Cairns Group--
countries pressing for agricultural trade reform in World Trade Organization (WTO)
negotiations--and in founding the APEC forum. In 2002, Australia joined the International
Criminal Court.

Australia has devoted particular attention to relations between developed and developing nations,
with emphasis on the 10 countries of the Association of Southeast Asian Nations (ASEAN) and
the island states of the South Pacific. Australia is an active participant in the ASEAN Regional
Forum (ARF), which promotes regional cooperation on security issues, and has been a member
of the East Asia Summit since its inauguration in 2005. The Rudd government has argued that
the Asia-Pacific area needs a regional body that addresses both security and economic issues. In
September 1999, acting under a UN Security Council mandate, Australia led an international
coalition to restore order in East Timor upon Indonesia's withdrawal from that territory. In 2006,
Australia participated in an international peacekeeping operation in Timor-Leste (formerly East
Timor). Australia led a regional mission to restore law and order in Solomon Islands in 2003 and
again in 2006. Australia is part of the Asia Pacific Partnership on Clean Development and
Climate, which also includes the United States.

The government is committed to increasing official development assistance to 0.5% of gross

national income by 2015-2016. Australia budgeted $A4.35 billion (U.S. $3.9 billion) for FY
2010-2011 and $A3.82 billion (U.S. $3.4 billion) in FY 2009-2010. The Australian aid program
is currently concentrated in Southeast Asia (Papua New Guinea and Indonesia are the largest
recipients) and the Pacific Islands. Selected aid flows are allocated to Africa, South Asia, and
reconstruction in Afghanistan and Iraq. Contributions to global programs and other expenses
account for 39% of the foreign assistance budget.

ANZUS AND DEFENSE

The Australia, New Zealand, United States (ANZUS) security treaty was concluded at San
Francisco on September 1, 1951, and entered into force on April 29, 1952. The treaty bound the
signatories to recognize that an armed attack in the Pacific area on any of them would endanger
the peace and safety of the others. It committed them to consult in the event of a threat and, in
the event of attack, to meet the common danger in accordance with their respective constitutional
processes. The three nations also pledged to maintain and develop individual and collective
capabilities to resist attack.

In 1984, the nature of the ANZUS alliance changed after the Government of New Zealand
refused access to its ports by nuclear-weapons-capable and nuclear-powered ships of the U.S.
Navy. The United States suspended defense obligations to New Zealand, and annual bilateral
meetings between the U.S. Secretary of State and the Australian Foreign Minister replaced
annual meetings of the ANZUS Council of Foreign Ministers. The first bilateral meeting was
held in Canberra in 1985. At the second, in San Francisco in 1986, the United States and
Australia announced that the United States was suspending its treaty security obligations to New
Zealand pending the restoration of port access. Ministerial consultations (AUSMIN) alternate
between Australia and the United States. The next AUSMIN is scheduled to take place in
Australia in 2010.

The U.S.-Australia alliance under the ANZUS Treaty remains in full force. AUSMIN meetings
are supplemented by consultations between the U.S. Combatant Commander, Pacific and the
Australian Chief of Defence Force. There also are regular civilian and military consultations
between the two governments at lower levels.

ANZUS has no integrated defense structure or dedicated forces. However, in fulfillment of

ANZUS obligations, Australia and the United States conduct a variety of joint activities. These
include military exercises ranging from naval and landing exercises at the task-group level to
battalion-level special forces training to numerous smaller-scale exercises, assigning officers to
each other's armed services, and standardizing, where possible, equipment and operational
doctrine. The two countries operate joint defense facilities in Australia.

As a result of terrorist attacks on the United States on September 11, 2001, then-Prime Minister
Howard and U.S. President George W. Bush jointly invoked the ANZUS Treaty for the first time
on September 14, 2001. Australia was one of the earliest participants in Operation Enduring
Freedom. The Australian Defence Force (ADF) participated in coalition military action against
Iraq in Operation Iraqi Freedom. Australian combat forces began their withdrawal from Iraq in
mid-2008 and forces were fully removed by July 2009. Australia has approved the deployment
of approximately 1,550 troops to Afghanistan and also provides significant development and
capacity building assistance to the country. The Australian Army is projected to grow from
28,811 in FY 2010-2011 to 30,098 in FY 2013-2014. This will enable the establishment of two
Army battalions.
The Australian Government has stated its intention to maintain its investment in future capability
of the ADF. To do so, the government has committed to a 3% annual growth in real defense
funding through 2018--and 2.2% annual real growth beyond--to ensure the ADF can continue to
meet capability and interoperability goals. The 2010-2011 budget projects $A6.3 billion (U.S.
$5.7 billion) for approximately 57,000 full-time ADF personnel, plus 6,000 new recruits. The
Royal Australian Navy's (RAN) front-line fleet currently includes 12 frigates, including 4 of the
Adelaide class and 8 Australian-built ANZAC class. In August 2004, Australia selected the
Aegis Combat Control System for its three air warfare destroyers (AWD), which will start
coming into service in 2014. In a joint venture with the U.S. Navy, Australia is upgrading its
Replacement Combat System (RCS), and its associated support infrastructure, for its six Collins
class submarines. The F/A-18 fighter, built in Australia under license from the U.S.
manufacturer, is the principal combat aircraft of the Royal Australian Air Force, backed by the
U.S.-built F-111 strike aircraft. In October 2002, Australia became a Level III partner in the
U.S.-led Joint Strike Fighter (JSF) program. Additionally, the Australian Government signed the
JSF Production, Sustainment and Follow-on Development memorandum of understanding in
2006. Australia is projected to buy up to 100 JSF aircraft with deliveries starting in 2014.
Australia’s first operational JSF squadron is planned to be ready for operations in 2018. The F-
111 strike aircraft are scheduled to exit service by the end of 2010 and be replaced by 24 Boeing
F/A-18F Super Hornet fighters as an interim strike capability, with deliveries commencing
March 2010. The Royal Australian Air Force (RAAF) took delivery of the last aircraft in its buy
of 4 Boeing C-17 strategic airlift aircraft in 2008. In addition, Boeing will provide the
Commonwealth of Australia's RAAF with an Airborne Early Warning and Control (AEW&C)
system based on the Next-Generation 737-700 aircraft as the airborne platform. Recent U.S.
sales to the Australian Army include the M1A1 AIM tank, as well as Hellfire and JAVELIN
munitions. Future opportunities include CH-47 helicopter replacements, navy helicopter
replacements, light and medium cargo aircraft replacements, and artillery systems.

In May 2009, the Australian Government released its Defence White Paper, outlining Australia’s
long-term strategic outlook. In addition to buying the JSF aircraft, the White Paper proposes to
double Australia’s submarine fleet to 12, replace the ANZAC class frigates, and replace the
army’s armored personnel carriers.

The U.S. and Australia signed a Defense Cooperation Treaty in Sydney in September 2007. This
treaty, when implemented, will facilitate the trade of defense equipment and technology between
the countries. The treaty is awaiting ratification by the U.S. Senate.

U.S.-AUSTRALIAN RELATIONS
The World War II experience, similarities in culture and historical background, and shared
democratic values have made U.S. relations with Australia exceptionally strong and close. Ties
linking the two nations cover the entire spectrum of international relations--from commercial,
cultural, and environmental contacts to political and defense cooperation. Two-way trade
reached almost $A53 billion (U.S. $47.7 billion) in 2008-2009. Around 488,300 Americans
visited Australia in the 12 months to March 2010. In September 2007, the United States and
Australia signed an agreement launching a 12-month exchange student work and travel pilot
program. While Australia enjoys a similar program with approximately 20 other countries, this
was the first program of its kind for the United States. The pilot program will facilitate the
hands-on experience of Australian and Americans working in each others' country and will
deepen and enhance our bilateral relationship even further.
Traditional friendship is reinforced by the wide range of common interests and similar views on
most major international questions. For example, both attach high priority to controlling and
eventually eliminating chemical weapons, other weapons of mass destruction, and anti-personnel
landmines; and both work closely on global environmental issues such as slowing climate
change and preserving coral reefs. The Australian Government and opposition share the view
that Australia's security depends on firm ties with the United States, and the ANZUS Treaty
enjoys broad bipartisan support. Recent Presidential visits to Australia (in 1991, 1996, 2003, and
2007), a Vice Presidential visit in February 2007, and Australian Prime Ministerial visits to the
United States (in 1995, 1997, 1999, 2001, 2002, 2003, 2004, 2005, 2006, 2008, and 2009) have
underscored the strength and closeness of the alliance.

The bilateral Australia-U.S. Free Trade Agreement (AUSFTA) entered into force on January 1,
2005. This comprehensive agreement, only the second FTA the U.S. had negotiated with a
developed nation, substantially liberalized an already vibrant trade and investment relationship.
The AUSFTA also creates a range of ongoing working groups and committees designed to
explore further trade reform in the bilateral context. Both countries share a commitment to
liberalizing global trade. They work together very closely in the World Trade Organization
(WTO), and both are active members of the Asia-Pacific Economic Cooperation (APEC) forum.

A number of U.S. institutions conduct scientific activities in Australia because of its

geographical position, large land mass, advanced technology, and, above all, the ready
cooperation of its government and scientists. In 2005, a bilateral science and technology
agreement was renewed. Under another agreement dating back to 1960 and since renewed, the
U.S. National Aeronautics and Space Administration (NASA) maintains in Australia one of its
largest and most important programs outside the United States, including a number of tracking
facilities vital to the U.S. space program. Indicative of the broad-ranging U.S.-Australian
cooperation on other global issues, a Mutual Legal Assistance Treaty (MLAT) was concluded in
1997, enhancing already close bilateral cooperation on legal and counter-narcotics issues. In
2001, the U.S. and Australia signed a new tax treaty and a bilateral social security agreement.
The U.S. Studies Centre was launched in 2006 at the University of Sydney with Commonwealth
funding of A$25 million (U.S. $20 million). In April 2010, Australia and the U.S. signed a
memorandum of understanding to strengthen emergency management cooperation including
during bushfires, major storms, and other severe natural disasters.

Principal U.S. Officials

Ambassador--Jeffrey L. Bleich
Deputy Chief of Mission--Jason P. Hyland
Consular Affairs Coordinator--Thurmond Borden (resident in Sydney)
Economic Counselor--Edgard Kagan
Political Counselor--Edgard Kagan
Management Counselor--Chris R. Riche
Public Affairs Counselor--Judy A. Moon
Defense and Air Attache--Col. Andrew Britschgi, USAF
Agricultural Counselor--Grant A. Pettrie
Senior Commercial Officer--David Murphy (resident in Sydney)
Melbourne Consul-General--Michael Thurston
Sydney Consul-General--Judith Fergin
Perth Consul-General--Kenneth Chern

The U.S. Embassy in Australia is located at Moonah Place, Yarralumla, Canberra, Australian
Capital Territory 2600 (tel. 61-2-6214-5600; fax 61-2-6214-5970). Consulates General are in
Sydney, (address: MLC Centre, Level 59, 19-29 Martin Place, Sydney, NSW 2000; tel. 61-2-
9373-9200; fax 61-2-9373-9125); Melbourne (address: 553 St. Kilda Road, Melbourne, VIC
3004; tel. 61-3-9526-5900; fax 61-3-9510-4646); and Perth (address: 13th Floor, 16 St. George's
Terrace, Perth, WA 6000; tel. 61-8-9202-1224; fax. 61-8-9231-9444).

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and
residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings.
Country Specific Information exists for all countries and includes information on entry and
exit requirements, currency regulations, health conditions, safety and security, crime, political
disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are
issued to disseminate information quickly about terrorist threats and other relatively short-term
conditions overseas that pose significant risks to the security of American travelers. Travel
Warnings are issued when the State Department recommends that Americans avoid travel to a
certain country because the situation is dangerous or unstable.
For the latest security information, Americans living and traveling abroad should regularly
monitor the Department's Bureau of Consular Affairs Internet web site at
http://www.travel.state.gov, where the current Worldwide Caution, Travel Alerts, and Travel
Warnings can be found. Consular Affairs Publications, which contain information on obtaining
passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For
additional information on international travel, see
http://www.usa.gov/Citizen/Topics/Travel/International.shtml.
The Department of State encourages all U.S. citizens traveling or residing abroad to register via
the State Department's travel registration website or at the nearest U.S. embassy or consulate
abroad. Registration will make your presence and whereabouts known in case it is necessary to
contact you in an emergency and will enable you to receive up-to-date information on security
conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-
888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers
outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single,
centralized public contact center for U.S. passport information. Telephone: 1-877-4-USA-PPT
(1-877-487-2778); TDD/TTY: 1-888-874-7793. Passport information is available 24 hours, 7
days a week. You may speak with a representative Monday-Friday, 8 a.m. to 10 p.m., Eastern
Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and
Prevention in Atlanta, Georgia. A hotline at 800-CDC-INFO (800-232-4636) and a web site at
http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization
recommendations or requirements, and advice on food and drinking water safety for regions and
countries. The CDC publication "Health Information for International Travel" can be found at
http://wwwn.cdc.gov/travel/contentYellowBook.aspx.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the
Department of State web site provides timely, global access to official U.S. foreign policy
information, including Background Notes and daily press briefings along with the directory of
key officers of Foreign Service posts and more. The Overseas Security Advisory Council
(OSAC) provides security information and regional news that impact U.S. companies working
abroad through its website http://www.osac.gov
Export.gov provides a portal to all export-related assistance and market information offered by
the federal government and provides trade leads, free export counseling, help with the export
process, and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative
economic, business, and international trade information from the Federal government. The site
includes current and historical trade-related releases, international market research, trade
opportunities, and country analysis and provides access to the National Trade Data Bank.

Australia country profile

Modern Australia was founded with the influx of

European settlers just over two hundred years ago, but
the Aborigines inhabited the continent for tens of
thousands of years before that.
They numbered a few hundred thousand before the
European influx. But two centuries of discrimination and expropriation followed, and at one
point the indigenous population fell as low as 60,000.
Australia's politicians at first looked to Europe and the US in foreign policy, but in the past 20
years or so they have made their near neighbours a priority.

Overview
• Overview
• Facts
• Leaders
• Media
The British founded the first European settlement in 1788 and named it Sydney. Many of the
first settlers were convicts, but free settlers started to arrive in increasing numbers, particularly
after the discovery of gold in the mid-19th century.
Today, just over 90% of the population are of European descent, with less than 3% descended
from the indigenous Aboriginal population.
The government formally apologised in 2008 for the past AT-A-GLANCE
wrongs committed against the indigenous Australians,
who still suffer from high rates of unemployment,
imprisonment and drug abuse.
The gradual dismantling of the "White Australia"
immigration policy in the decades after World War II
heralded an increase in the number of non-European
arrivals.

Migration continues to shape Australia and is a politically-

sensitive issue. The country has taken a tough stance on
unauthorised arrivals, but has scrapped a controversial Politics: The Labor Party,
policy of holding asylum seekers in detention centres until under Kevin Rudd, won a
their cases are heard. landslide victory in elections
Originally composed of six separate colonies of the British in November 2007, ending
Empire, Australia's path to independent statehood began more than 11 years in power
with the formation of a common federal state in 1901, and for the Liberal Party under
was largely complete by World War II. The last few John Howard.
remaining constitutional links with the United Kingdom Economy: The strong,
were severed in 1986. services-based economy has
However, Australia remains part of the British seen sustained growth;
Commonwealth, and the UK monarch remains the formal mining and agriculture
head of state, represented by the governor-general, who provide the lion's share of
has a largely ceremonial role. exports
There is an influential republican movement and the International: Australia is a
debate over future of the monarchy is a recurring issue in regional policeman; further
Australian politics. In a 1999 referendum, nearly 55% of afield, its troops are in Iraq
Australians voted against becoming a republic. and Afghanistan
The country has federal structure, with the six states
retaining extensive powers, particularly over education, Timeline
police, the judiciary and transport.
Australia's growing orientation towards its Asian neighbours is reflected in its economic policy.
It is a key member of Apec, the Asia Pacific Economic Cooperation forum, and aims to forge
free trade deals with China and Asean, the Association of Southeast Asian Nations.
It has also played a bigger regional role, mediating between warring groups in Papua New
Guinea and the Solomon Islands, as well as deploying thousands of peacekeepers in newly-
independent East Timor.
The island continent combines a wide variety of landscapes. These include deserts in the interior,
hills and mountains, tropical rainforests, and densely-populated coastal strips with long beaches
and coral reefs off the shoreline.
Isolated from other continents, Australia has an abundance of unique plant and animal life.
Modern Australia was founded with the influx of
European settlers just over two hundred years ago, but
the Aborigines inhabited the continent for tens of
thousands of years before that.
They numbered a few hundred thousand before the
European influx. But two centuries of discrimination and
expropriation followed, and at one point the indigenous
population fell as low as 60,000.
Australia's politicians at first looked to Europe and the US
in foreign policy, but in the past 20 years or so they have
made their near neighbours a priority.

Overview
• Overview AT-A-GLANCE
• Facts
• Leaders
• Media
The British founded the first European settlement in 1788
and named it Sydney. Many of the first settlers were
convicts, but free settlers started to arrive in increasing
numbers, particularly after the discovery of gold in the
mid-19th century.
Today, just over 90% of the population are of European
descent, with less than 3% descended from the indigenous Politics: The Labor Party,
Aboriginal population. under Kevin Rudd, won a
The government formally apologised in 2008 for the past landslide victory in elections
wrongs committed against the indigenous Australians, in November 2007, ending
who still suffer from high rates of unemployment, more than 11 years in power
imprisonment and drug abuse. for the Liberal Party under
The gradual dismantling of the "White Australia" John Howard.
immigration policy in the decades after World War II Economy: The strong,
heralded an increase in the number of non-European services-based economy has
arrivals. seen sustained growth;
mining and agriculture
Migration continues to shape Australia and is a politically- provide the lion's share of
sensitive issue. The country has taken a tough stance on exports
unauthorised arrivals, but has scrapped a controversial
International: Australia is a
policy of holding asylum seekers in detention centres until
their cases are heard. regional policeman; further
afield, its troops are in Iraq
Originally composed of six separate colonies of the British
and Afghanistan
Empire, Australia's path to independent statehood began
with the formation of a common federal state in 1901, and
Timeline
was largely complete by World War II. The last few remaining constitutional links with the
United Kingdom were severed in 1986.
However, Australia remains part of the British Commonwealth, and the UK monarch remains the
formal head of state, represented by the governor-general, who has a largely ceremonial role.
There is an influential republican movement and the debate over future of the monarchy is a
recurring issue in Australian politics. In a 1999 referendum, nearly 55% of Australians voted
against becoming a republic.
The country has federal structure, with the six states retaining extensive powers, particularly over
education, police, the judiciary and transport.
Australia's growing orientation towards its Asian neighbours is reflected in its economic policy.
It is a key member of Apec, the Asia Pacific Economic Cooperation forum, and aims to forge
free trade deals with China and Asean, the Association of Southeast Asian Nations.
It has also played a bigger regional role, mediating between warring groups in Papua New
Guinea and the Solomon Islands, as well as deploying thousands of peacekeepers in newly-
independent East Timor.
The island continent combines a wide variety of landscapes. These include deserts in the interior,
hills and mountains, tropical rainforests, and densely-populated coastal strips with long beaches
and coral reefs off the shoreline.
Isolated from other continents, Australia has an abundance of unique plant and animal life.

Facts
• Overview
• Facts
• Leaders
• Media
• Full name: Commonwealth of Australia
• Population: 21.3 million (UN, 2009)
• Capital: Canberra
• Largest city: Sydney
• Area: 7.7 million sq km (2.9 million sq miles)
• Major language: English
• Major religion: Christianity
• Life expectancy: 79 years (men), 84 years (women) (UN)
• Monetary unit: 1 Australian dollar = 100 cents
• Main exports: Ores and metals; wool, food and live animals; fuels, transport
machinery and equipment
• GNI per capita: US $40,350 (World Bank, 2008)
• Internet domain: .au
• International dialling code: +61
Leaders
• Overview
• Facts
• Leaders
• Media
Head of state: Queen Elizabeth II, represented by
Governor-General Quentin Bryce
Prime minister: Julia Gillard
Julia Gillard became Australia's first woman prime minister
in June 2010 after the once hugely popular Kevin Rudd fell
to a party coup less than three years after taking office.

Ms Gillard called a snap election in August to try restore

her Labor Party's fortunes. However, the closely fought Julia Gillard, Australia's first
contest failed to produce an outright winner. woman prime minister
After weeks of political deadlock, Ms Gillard managed to
cling to power by the narrowest of margins, when two independent members of parliament
finally decided to back her as the head of a minority government - the first in Australia for
seventy years.
Aged 48 at the time of taking office, Ms Gillard was born in Barry in south Wales, United
Kingdom, and emigrated to Australia with her parents in the 1960s. She was motivated to seek
the prime ministership out of fear that the ruling Labor party would lose the forthcoming
election.
Her predecessor, Mr Rudd, started the year as the most popular Australia leader in thirty years,
but his approval ratings collapsed after he shelved his flagship environmental policy, an
emissions trading scheme. In a country that favours battlers, many regarded it as an act of
political cowardice.
Ms Gillard has long attracted headlines for her hair, restyled and dyed an auburn shade instead of
its natural ginger, her partner who is a hairdresser and her decision not to have children.
One conservative MP even once remarked her unmarried status made her unfit to govern. He
later apologised for the comment but, in the socially conservative heartland of middle-class
Australia, it can be an issue.
The straight-talking lawyer, known for her wit and savage put-downs, has forged a reputation as
a formidable parliamentary performer since taking on the demanding employment and education
portfolios under Rudd.

Media
• Overview
• Facts
• Leaders
• Media
Australia's media scene is creatively, technologically and
economically advanced. There is a tradition of public
broadcasting, but privately-owned TV and radio enjoy the
lion's share of listening and viewing.

Ownership of print and broadcast media is highly-

concentrated. For example, four major media groups own
80% of Australia's newspaper titles.
The Australian Broadcasting Corporation (ABC) runs
national and local public radio and TV stations as well as
Australia Network, a TV service for the Asia-Pacific Media ownership rules have
region. The other main public broadcaster is the Special been relaxed
Broadcasting Service (SBS), whose radio and TV
networks broadcast in many languages. 2006: Australian media set for
National commercial TV is dominated by three large shake-up
networks. Commercial broadcasters have to carry a
minimum percentage of Australian-made programming. Pay-TV services have gained a
substantial foothold. Digital TV is available via satellite, cable and terrestrially.
Sport, news, game shows, imported and home-made dramas top the TV ratings in Australia. The
industry has successfully exported some of its productions to English-speaking markets overseas.
More than 80% of Australians - some 17 million people - are online (InternetWorldStats, 2010).
A controversial internet filtering plan, first proposed during the 2007 election campaign by
former PM Kevin Rudd, is on hold. The government wanted to block material which did not
meet film and literature classification rules.
The press
• The Sydney Morning Herald - daily
• Herald Sun - Melbourne-based daily
• The Australian - national daily
• The Daily Telegraph - Sydney-based daily
• The Courier-Mail - Brisbane-based daily
• The West Australian - Perth-based daily
• The Age - Melbourne-based daily
• The Advertiser - Adelaide-based daily
• Australian Financial Review - business daily
Television
• ABC - national public network
• Australia Network - international channel, run by ABC
• SBS TV - national multicultural public broadcaster, programmes in English
and 60 other languages
• Seven Network - national, commercial
• Nine Network - national, commercial
 • Ten Network - national, commercial
• Australian Communications and Media Authority (ACMA) - licenses and
regulates TV stations; station lists available
• Foxtel - pay-TV operator, owned by Rupert Murdoch's News Corporation, the
Packer group and telecommunications giant Telstra
• Optus - pay TV operator
Radio
• ABC - public, operates speech-cultural network Radio National, news station
ABC NewsRadio, youth-oriented Triple J, classical and contemporary music
network ABC Classic FM and local-regional services
• Radio Australia - ABC's external service, targeted at Asia-Pacific region via
shortwave and internet
• SBS Radio - national multicultural, multilingual public network, broadcasts in
68 languages
• Australian Communications and Media Authority (ACMA) - licenses and
regulates radio stations; station lists available
News agency/internet
• AAP - Australian Associated Press
• ABC Newsonline - public broadcaster ABC's news site
http://news.bbc.co.uk/2/hi/country_profiles/1250188.stm#leaders

The Nation and People

Geography
Australia is both an island and a continent; it is the largest island but smallest continent in the
world. It is about thirty seven hundred kilometres from north to south and four thousand
kilometres from east to west. It has an area of nearly 7.7 million square kilometres and is the
sixth largest nation on earth; it is the lowest of all the continents with the highest point at only
2228 metres. The landscape variety more than compensates for the lack of height. Climatic zones
range from tropical rainforests, to deserts, and cool temperate forests to snow covered mountains.

Indigenous Australians
Aboriginal and Torres Straight Islanders made up all the people of Australia before the arrival of
European settlers in 1788. They formed many groups with their lifestyle, religious and cultural
traditions reflecting a deep connection with the land. They spoke one or more of hundreds of
languages. Now, they make up only a small part of the total number of Australians. They
continue to live in all places including cities, towns, the coast, rural areas and the outback. There
is no single culture but a mixture of current day and traditional thoughts, ways and practices.
Migration to Australia
On 26 January 1788, the First Fleet arrived in Port Jackson now called Sydney. We
commemorate the date of that first landing as Australia Day, which is our national day. Migrants
arriving with and after the First Fleet were mainly English convicts and free settlers. They
included Italians, Greeks, Malays and people from other parts of Europe. The gold rushes
attracted a large number of people from Britain, Ireland, Germany and China. Afghans also came
at this time, bringing camels with them for inland exploration. Early Japanese settlers started the
pearling industry in Australia.

Post World War II Migration

Large-scale migration began after World War II and it is continuing today. The resettlement of
displaced persons and refugees saw migrants come from Britain, many parts of Europe and the
Middle East. After the abolition of the White Australia policy, migrants also came from many
parts of Asia. Patterns that are more recent see more people coming from Africa.
People from around 200 countries have come to live here and about a quarter of us were born
overseas. We speak more than 200 languages with English the national language. We are
encouraged to read and speak English. English is the main language used in schools, although
schools teach other languages. Some schools have bilingual programs.

Values and Law

On this page
• Many Cultures
• Rights
• Values and Principles
• Tolerance

Many Cultures
The people of this nation value their success at building a tolerant and inclusive society that is
rich in culture from many lands. We have come from many parts of the world yet we have many
common values and principles uniting us. We live by the Rule of Law. Religions and cultural
practices from all parts of the world exist side by side with the secular legal system we have in
Australia.
We all should have a duty to our nation's interests and future. While we are all different, our
shared future and duty to harmony unites us. Within this point of view, each of us, by ourself or
as a group, is welcome to contribute to the common good. Our success as a society is largely due
to all of us living together without letting the past affect duty to our nation and its future.

Rights
We can vote in or stand for an election. Voting gives us the right to choose a representative in
Parliament, and to influence how they run our country. An Australian citizen who is qualified
has the right to stand for an election. Our democracy gives us the right to change ruling parties
on a regular and peaceful basis by the use of elections.
We are all entitled to equal rights and to equal respect. Our laws make sure that no one is subject
to discrimination because of their race, their colour, their religion or gender. Each of us has a
right to participate in our community and achieve our full potential, no matter what our
background is. All Australians have the right of freedom of speech, freedom of association,
freedom of assembly, freedom of religion, and freedom of movement.

Values and Principles

In return for the rights and freedoms, all of us should have an overriding duty to Australia. We
are to accept the principles and civic values of our community. They are:
• The rule of law
• The democratic principles of government (and institutions such as the
Constitution and parliamentary democracy)
• Acceptance of cultural diversity (tolerance)
• Equality of sexes and ethnic backgrounds
• Equality of opportunity
• Freedom of speech and religion
• English as the national language

Tolerance
As a community, we agree that to express one's own culture and beliefs means that we accept the
right of others to express their views and values. It is unlawful to insult, humiliate, offend or
intimidate another person or group in public because of their race.
See: Racial vilification law in Australia
For more information on specific rights enjoyed by Australians
See: Five Fundamental Freedoms

Five fundamental freedoms

On this page
• Freedom of speech
• Freedom of association
• Freedom of assembly
• Freedom of religion
• Freedom of movement

All Australians are entitled to freedom of speech, association, assembly, religion, and movement.

Freedom of speech
Australians are free, within the bounds of the law, to say or write what we think privately or
publicly, about the government, or about any topic. We do not censor the media and may
criticise the government without fear of arrest. Free speech comes from facts, not rumours, and
the intention must be constructive, not to do harm. There are laws to protect a person's good
name and integrity against false information. There are laws against saying or writing things to
incite hatred against others because of their culture, ethnicity or background. Freedom of speech
is not an excuse to harm others.

Freedom of association
We are free to join any organisation or group if it is legal. We can choose to belong to a trade
union or to a political party. Having and debating points of view allows for a healthy and strong
democracy.

Freedom of assembly
We are free to meet with other people in public or private places. We can meet in small or large
groups for legal social or political purposes. Being able to protest and to demonstrate is an
accepted form of free expression. Protestors must not be violent or break laws such as assaulting
others or trespassing on private or public property. People can change governments in a peaceful
way by elections and not by violence.

Freedom of religion
Australia does not have an official or state religion. The law does not enforce any religious
doctrine, however, religious practices must conform to the law. We are free to follow any
religion we choose. We are also free not to have a religion.

Freedom of movement
We can move freely to and from all states and territories. We can leave and return to Australia at
any time. Some migrants may have conditions placed on their visa until they become Australian
citizens.
http://www.immi.gov.au/living-in-australia/choose-australia/about-australia/five-
freedoms.htm

Closer Look
A Multi-tiered System: governing Australia
Introduction
Look around you. Are you in a building? If so does the building include furniture and electrical
equipment? Are there computer, radio or television programs running? Why?… because each of
these things is controlled in some way by laws and regulations.
• Local councils are responsible for administering the laws relating to building
codes.
• State laws define the safety standards for electrical goods.
• Federal laws define the legal content for computer, radio and television
programs.
Australian governance is multi-tiered. It involves the cooperation of federal and state parliaments
and local councils that make laws. Laws are implemented by executive governments and bodies
at each level. The table below provides a simple overview of how various parliaments and
governments share the role of governing Australia:
Australian Governance
Body Role Federal State Local

Makes the Parliament of State and territory

Parliament Local councils
law Australia parliaments

Executive Implements Australian State and territory Executive body of

government the law Government governments local councils

This paper sets out to explore:

• the power, role and responsibility of Australian parliaments and local councils
• the power, role and responsibility of Australian executive governments and
local executive bodies
• how Australia’s multi-tiered system has developed.
The paper covers the following areas of linkable content.
Part Focus Federal State Local

The federal State

Part 1 Australian parliaments Local councils
Parliament parliaments

Australian executive The federal State Local

Part 2
Governments Executive executives executives

Part 3 How this system evolved

Main points
• Parliaments and councils are legislating (law-making) bodies.
• Australia’s parliaments make laws according to federal and state
constitutions.
• Executive governments devise and administer the law.
• Local by-laws are administered by council officers.
• Australia’s multi-tiered system is part of Australia’s federal nature.
top
Part 1: Australian parliaments
A parliament consists of a group of elected representatives and a person who represents the
Queen. In the federal Parliament that person is the Governor-General. In state parliaments that
person is a governor. Parliaments make the laws for a country or a state.
The name parliament is derived from the French word parlement meaning a talk, a discussion, a
meeting (an assembly, a court) where people discuss matters.
Wikipedia
http://en.wikipedia.org/wiki/Parliament
The federal Parliament
There is only one parliament at the national level. It is the Parliament of Australia, located in
Canberra.
Parliaments are law-making bodies (legislatures). Section 1 of chapter 1 of the Australian
Constitution defines the federal Parliament’s power to make laws: ‘The legislative power of the
Commonwealth shall be vested in a Federal Parliament’. The section continues and defines the
parliament as consisting of the Queen and two houses—thus a bicameral system: ‘ … which
shall consist of the Queen, a Senate and House of Representatives’. Finally this important first
section names the Parliament: ‘and which is hereinafter called ‘The Parliament’, or ‘The
Parliament of the Commonwealth’.
Section 51 of the same chapter lists 40 areas in which the federal Parliament is entitled to
legislate. These law-making areas relate to matters of national interest such as: trade and
commerce; postal, telephonic and like services; foreign relations; taxation; quarantine; fisheries;
currency; copyright; marriage; immigration; defence etc.
Section 52 of the Constitution prohibits state parliaments from legislating in certain areas. These
exclusive powers extend to areas such as defence and communication.
State parliaments
Australia has six parliaments at the state level and two territory parliaments. State and territory
parliaments are located in each of Australia’s eight capital cities:
• Parliament of New South Wales located in Sydney
• Parliament of Victoria located in Melbourne
• Queensland Parliament located in Brisbane
• Parliament of Western Australia located in Perth
• Parliament of South Australian located in Adelaide
• Parliament of Tasmania located in Hobart
• Australian Capital Territory Legislative Assembly located in Canberra (and
separate to the federal Parliament)
• Northern Territory Legislative Assembly located in Darwin.
The Australian federation formed by the union of six states (and later two territories)
State parliaments make laws that are enforced within the state of origin. In drafting the
Australian Constitution the Founding Fathers defined federal powers under section 51, reserving
most other law-making powers to the states. Generally speaking, if it is not in the Constitution, it
is an area of state responsibility.
State laws generally relate to matters of state interest such as: schools and hospitals, roads and
railways, utilities such as electricity and water supply, mining and agriculture.
On other matters the federal and state parliaments have concurrent powers. This means that both
the Parliament of Australia and the state parliaments may make laws about the same things e.g.
roads and health. However, section 109 of the Australian Constitution states that if a state law
conflicts with a federal law then the federal law will prevail.
Local councils
There are over 650 councils across Australia. The elected members of local councils are usually
called councillors or aldermen while the chair of the council is usually called the mayor or
president. These smaller legislative bodies make by-laws which relate to matters of local interest
such as: local roads, parks and playgrounds, rubbish collection, library services, sporting fields,
street signage and domestic animal regulation.
These bodies are funded through state parliaments by Acts of state parliaments.
top
Part 2: Australian executive governments
A government is an elected group of people. Australian federal and state governments are
formed from the party group or groups that hold a majority in the lower house. Governments,
therefore, are subsets of the parliament. The government contributes to the law-making process
by supporting executive government proposals.
Executive government in Australia is drawn from the membership of the government (see
above). Executive governments, therefore, are subsets both of the government and the
parliament. Executive government implements the laws passed by the parliament.
The Australian political structure provides for two levels of executive government at a state and
national level. At the local level, by-laws are made by council representatives but administered
by council employees (not councillors) in the council that the by-law originated in.
The power, role and responsibilities of federal state and local executors may overlap, but
generally executive governments provide different services. The table below illustrates how the
provision of goods and services is funded at each level:
Money and government services
Where the money comes from How the money is spent

And spends it on national matters: e.g.

The federal government raises money
security, defence, immigration, the
through income tax and charges.
environment.

State governments receive more than And spend it on state matters: e.g.
half their money (including all the GST) schools; housing and hospitals; roads and
from the federal government. railways; police and ambulance services.
Local councils collect taxes from all local And spend it on local matters: e.g. town
property owners and receive grants from planning; rubbish collection; water and
federal and state governments. sewage; local roads; and dog control.

The Australian Government implements federal law

State and territory governments implement state & territory law
Executors of councils implement local by-laws

The federal Executive

top
There is one executive government at the national level. The executive is made up of the prime
minister, ministers and departmental staff. All ministers (including the prime minister) must be
elected members of parliament and belong to the party or coalition of parties that have formed a
majority government in the House of Representatives.
The prime minister and senior ministers regularly hold private meetings known as Cabinet.
During Cabinet meetings important decisions about proposals for new legislation, policy
direction and how to manage government departments are discussed. It is the role of the
Executive (including Cabinet ministers) to ‘execute’ the law—that is to make sure that the law is
working well and that Australian citizens are able to meet the requirements of the law. This
requires money.
The federal Executive raises money through income tax and other charges. Once a year the
Treasurer publishes the Budget which states how this revenue will be shared across federal
portfolios (areas of governing responsibility).
Ministers are responsible for managing the budget allocated to their department for the purpose
of implementing the laws and policy decisions that fall within their portfolio.
Example 1: The Department of Immigration and Citizenship provides services related to:
• visiting, studying and working in Australia
• permanent residency and migration to Australia
• Australian citizenship
• managing Australia's borders
• and related services.
Thus, the Minister for Immigration is responsible for seeing that immigration laws are operating
effectively across the country and that Australian people are provided with adequate services to
meet the requirements of the law.
Department of Immigration andCitizenship website: http://www.immi.gov.au/
The state Executive
There are eight Australian executive governments made up of six state and two territory
executive governments.
Generally, ministers of state and territory executives are first elected members of the state or
territory parliament, and are drawn from the party or coalition of parties that form a majority
government in the lower house.
State executive government is made up of the premier, state ministers and departmental staff.
Territory executive government is made up of the chief minister, territory ministers and
departmental staff. Like federal Cabinet, senior state and territory ministers form a Cabinet
which focus on proposals for legislation and policy direction including how to put state or
territory laws into effect. Thus, state and territory executive governments are responsible for
‘executing’ state and territory law.
Executive government at the state and territory level receive more than half their money,
including all the goods and services tax, from the federal executive government. Other sources of
income include some of the funds from income taxes, vehicle registration, land tax, and
gambling licenses.
The states and territories spend this revenue on administering their law and on the provision of
goods and services to the people of the state. State and territory ministers, like federal ministers,
are responsible for managing the budget allocated to their department.
Example 2: The graph below simplifies the New South Wales 2004 to 2005 Treasury budget
allocations by department.
In the 2005 budget, the NSW Government spent money on the following areas:
 • 25% Education and training
• 26% Health
• 10% Police & justice
• 7% Community services
• 16% Roads and transport
• 1% Environment & conservation
• 2% Primary industries
• 3% Arts
• 1% Infrastructure, planning & natural resources
• 9% Other

The local Executive

Councils administer local law across Australian cities, municipalities and shires. The area of
influence ranges from small areas of a few inner suburbs of large cities to vast areas of inland
Western Australia and Queensland.
Unlike executive governments at the federal and state level, the executive of an Australian
council is a non elected person called the chief executive officer. It is this council officer and
staff who run the council offices and administer—put into effect—the council by-laws.
Local councils are legally a branch of the state governments because they operate under a state
local government Act. Local governments receive part of their income as grants from state
executive government and raise their own revenue through local taxes such as rates (tax on the
value of property), sewerage and water charges, dog licences, and user fees for sporting facilities
and libraries.
The main responsibilities of local councils include the construction and maintenance of local
roads, water and sewerage services, building standards, sporting facilities, and health standards
in shops.
Example 3: Kingsborough Municipality, Tasmania provides services related to:

• animals
• tourism
• postal address
• environmental health
• fire services
• buildings and planning
• waste collection and management
top
Part 3: How this system evolved
Until the 1850s, the six Australian colonies were run by a non elected governor appointed by the
British government in London. After 1851, the British government began to hand over selected
powers to the colonial governments in each colony. These governments evolved a system based
on the British system which included elected members of parliament, an executive and a court
system. During the 1890s the colonies’ people voted to hand over some rights and power to a
central executive government, creating the Australian federation. In 1900 the Australian
Constitution was agreed and in 1901 Australia’s federal and state parliaments began writing laws
and their executive governments began administering them.
In 1911 the Australian executive passed laws to create the Northern Territory (NT) and the
Australian Capital Territory (ACT). These territories are not yet states and are still partly
controlled by the federal government. The ACT is unique in Australia because it has
amalgamated local and state functions.
Conclusion
Australia is like other federations such as the United States, Canada, Germany, India and
Malaysia all of which have three levels of governance at local, state and federal levels.
However, as law and law administration become more complicated the members of the federal,
state and local executive are required to work cooperatively in order to solve problems. For
example, road funding and construction might require funds from all levels even though the state
owns the finished road. And of course executive government can only administer law according
to the written word as passed by the parliament or council.
So if you:
• watch an interview with the minister for foreign affairs or defence, for
example, you will be watching the federal Executive explain how its actions
and decisions are consistent with federal law.
• discuss the services provided in schools or hospitals or housing you will be
discussing the role of the state executive in implementing state law.
• receive a rates notice or your dog is impounded you will be seeing your local
council by-laws being implemented by the council executive.
http://www.peo.gov.au/students/cl/multi.html

Government
INTRODUCTION

This chapter was contributed by the Politics and Public Administration Section of the
Library of the Commonwealth Parliament (December 2009).

Australia has a federal system of government within which there are four divisions -
Commonwealth, state, territory and local. This chapter outlines the basic features of
the Australian system of government.

The 41st Commonwealth Parliament was prorogued on 15 October 2007 for a

general election for all members of the House of Representatives, half of the 72
state senators and the four territory senators on 24 November 2007. Results of the
2007 and earlier elections can be found on the website of the Australian Electoral
Commission, <http://www.aec.gov.au>.

CONSTITUTIONAL BASIS OF GOVERNMENT

Australia is a constitutional democracy based on a federal division of powers between

Commonwealth, state, territory and local levels of government. The constitutional basis of
government consists of:
 the Commonwealth Constitution, including amendments
 state and territory constitutions, including amendments
 legislation passed by the Commonwealth Parliament and the state and territory
parliaments
  judgments by the High Court of Australia
 significant conventions of responsible government adopted from the British system of
government that are in use at the Commonwealth, state and territory levels of
government.

Commonwealth constitution

The national Constitution is found in the Commonwealth of Australia Constitution Act 1900
(Cwlth), a British Act that became law in July 1900 and came into force on 1 January 1901.

Any proposed law for the alteration of the Commonwealth Constitution must be passed by an
absolute majority of each house of the Commonwealth Parliament (except in circumstances
specified in section 128 of the Constitution which permit a referendum to proceed if passed by
only one chamber). An amendment proposal must also be submitted to a referendum of the
electors in each state and territory, where it must be approved by a majority of the voters in a
majority of the states, as well as a majority of all voters.

Since 1901, 44 proposed amendments have been submitted to referenda. The consent of the
electors has been given in regard to eight matters:

1906 - election of senators

1910 - state debts

1928 - state debts

1946 - social services

1967 - Aboriginal people

1977 - Senate casual vacancies

1977 - retirement age for federal judges

1977 - the right of territory electors to vote in constitutional referenda.

Each state and territory has its own constitution found in legislation. Where a law of a state is
inconsistent with a law of the Commonwealth, the latter law prevails and the former law is, to
the extent of the inconsistency, invalid.
THE SOVEREIGN

Since 7 February 1952, the Australian Sovereign has been Her Majesty Queen
Elizabeth II.

On 6 November 1999 a vote to establish Australia as a republic was put to a

national referendum. The proposal was defeated, with 54.9% of electors voting
against it.

THE GOVERNOR-GENERAL

The Governor-General is the representative of the Sovereign, appointed by the Sovereign on the
advice of the Australian Prime Minister.

Her Excellency, Ms Quentin Bryce AC has been Governor-General since 5 September 2008.

Power and functions

The Governor-General exercises the executive power of the Commonwealth of Australia on the
advice of the Prime Minister. Certain other powers and functions conferred by the Constitution
include the powers to:
 appoint times for holding the sessions of the Parliament
 prorogue Parliament
 dissolve the House of Representatives
 dissolve the House of Representatives and the Senate in the event of a double dissolution
 cause writs to be issued for general elections of members of the House of Representatives
 assent in the Queen's name to a proposed law passed by both Houses of the Parliament
 appoint ministers of state for the Commonwealth of Australia.

The Governor-General, ‘as the Queen's representative’, is Commander-in-Chief of the Australian

Defence Force.

Many Acts of the Commonwealth Parliament provide that the Governor-General may make
Regulations to give effect to such Acts. The Governor-General may also be authorised by statute
to issue proclamations, for example, to declare an Act in force. The Governor-General has been
given power by statute to legislate for certain Australian territories.

The Governor-General also possesses what are referred to as 'reserve powers'. These may be
used without the advice of the Prime Minister, but are used only in times of political uncertainty.

The Queen may appoint an Administrator of the Commonwealth when the Governor-General is
out of the country, ill, or when the position of Governor-General is vacant. By convention, the
longest-serving state governor is appointed as Administrator.

COMMONWEALTH PARLIAMENT

Commonwealth legislative power is vested in the Commonwealth Parliament, comprising the

House of Representatives and the Senate. There are currently 226 members of the Parliament
(MPs) - 150 members of the House of Representatives and 76 Senators.

Powers of Parliament

Apart from the constitutional requirement that all financial legislation must originate in the
House of Representatives and that the Senate cannot amend such legislation, the two houses have
similar powers. The fact that the Senate can reject financial legislation makes it potentially one
of the most powerful upper houses in the world.

As Australia has a federal system of government, the formal powers of the Commonwealth
Parliament are constitutionally limited to areas of national importance such as trade and
commerce, taxation, postal services, foreign relations, defence, immigration, naturalisation,
quarantine, currency and coinage, weights and measures, copyright, patents and trade marks.
However, High Court decisions, Commonwealth-state agreements and use by the
Commonwealth of the constitutional power to make grants to the states and territories, have seen
the Commonwealth gain influence in regard to various other matters including industrial
relations, financial regulation, companies and securities, health and welfare, and education.

Functions of Parliament

Parliament has five primary functions:

 to provide for the formation of a government
 to make the law
 to provide a forum for popular representation
 to scrutinise the actions of government
 to provide a forum for criticism of the government.
Back to top

The formation of a government is the most important outcome of a general election. Either the
government is returned by virtue of retaining a majority of seats in the House of Representatives,
or the opposition party or a coalition of parties wins a majority of seats, resulting in the
formation of a new government. A new government could also be formed on any occasion
between elections if the majority party changes its leader, or loses its majority (e.g. as a result of
a by-election), or is defeated in an important vote in the House of Representatives. The last
occurrence of government changing hands between elections occurred in October 1941.
More than half of Parliament's time is taken up with the consideration of proposed legislation.
Between 150 and 250 Bills are passed each year. Most Bills are not contentious, either being
'machinery' legislation necessary for the orderly processes of government, or Bills that propose
alterations to existing legislation. Most of the Bills are government Bills; legislation sponsored
by private members is rare.

The representation of the people is an important role of members of the House of

Representatives and Senators. Working for their constituents occupies a great deal of their time.
The relative importance of this role may be judged by the high proportion of time spent by MPs
in their electorates and away from Parliament. Since the beginning of 2000, Parliament has
averaged 65 sitting days per year.

The scrutiny function is seen most obviously in the formal periods of Question Time, in both
houses, that are part of each day's sitting. Question Time is the best-known part of parliamentary
proceedings, and is attended by many of the visiting public. Less well-known is the activity of
parliamentary committees which are established in order that Parliament's legislative,
representation and scrutiny functions can be carried out thoroughly and with the benefit of expert
advice. These committees undertake the scrutiny of government operations as well as frequent
inquiries into a range of current issues.

Parliament also acts as a forum where peoples’ concerns can be aired prominently. This can be
in Question Time, in debates on major issues, in grievance debates, in adjournment debates and
at various stages of the legislative process.

AUSTRALIAN GOVERNMENT

Prime Minister

The office of Prime Minister is not recognised by the Constitution, being a conventional part of
the governmental arrangements. It is also a matter of convention that the Prime Minister is
always a member of the House of Representatives.

After an election, the Governor-General sends for the leader of the party, or coalition, which has
secured a majority in the House of Representatives, and commissions that person to assume the
office of Prime Minister and to form a government.

The Prime Minister has the following powers:

 advising the Sovereign on the appointment of the Governor-General
 acting as the sole source of formal advice for the Governor-General
 advising the Governor-General as to when Parliament should be dissolved
 setting the date for House of Representatives elections
 allocating positions in the Cabinet
 chairing Cabinet meetings.
The Hon Kevin Rudd MP (Australian Labor Party) has been Prime Minister since 3 December
2007.

Ministers

The Prime Minister nominates members of his or her parliamentary party or coalition to serve as
ministers, responsible for administering government departments such as the Treasury, the
Department of Foreign Affairs and Trade or the Department of Defence. The Constitution
requires that all ministers be either a member of the House of Representatives or a Senator. If a
new minister is not an MP, it is obligatory for that minister to become an MP within three
months of his/her appointment. Ministers may be appointed or replaced at any time between
elections.

From time to time certain members of the Commonwealth Parliament have been appointed by
governments to assist ministers in their work. Such persons have been known by a variety of
designations, including parliamentary under-secretary and assistant minister; the current term is
parliamentary secretary.

The ministries since Federation are listed in table 4.1.

Back to top

4.1 MINISTRIES SINCE 1901– November 2009

Number of
Ministry Period of office Party
ministry

1 Barton 1 January 1901 to 24 September 1903 Protectionist

2 Deakin 24 September 1903 to 27 April 1904 Protectionist
3 Watson 27 April 1904 to 17 August 1904 Australian Labor Party
4 Reid-McLean 18 August 1904 to 5 July 1905 Free Trade-Protectionist
5 Deakin 5 July 1905 to 13 November 1908 Protectionist
6 Fisher 13 November 1908 to 2 June 1909 Australian Labor Party
Protectionist-Free Trade-Tariff
7 Deakin 2 June 1909 to 29 April 1910
Reform
8 Fisher 29 April 1910 to 24 June 1913 Australian Labor Party
9 Cook 24 June 1913 to 17 September 1914 Liberal
10 Fisher 17 September 1914 to 27 October 1915 Australian Labor Party
11 Hughes 27 October 1915 to 14 November 1916 Australian Labor Party
12 Hughes 14 November 1916 to 17 February 1917 Nationalist Labour
13-14 Hughes 17 February 1917 to 9 February 1923 Nationalist
15 Bruce-Page 9 February 1923 to 22 October 1929 Nationalist-Country Party
16 Scullin 22 October 1929 to 6 January 1932 Australian Labor Party
17-18 Lyons 6 January 1932 to 7 April 1939 United Australia Party
19 Page 7 April 1939 to 26 April 1939 Country Party-United Australia Party
20 Menzies 26 April 1939 to 14 March 1940 United Australia Party
21-22 Menzies 14 March 1940 to 29 August 1941 United Australia Party-Country Party
23 Fadden 29 August 1941 to 7 October 1941 Country Party-United Australia Party
24-25 Curtin 7 October 1941 to 6 July 1945 Australian Labor Party
26 Forde 6 July 1945 to 13 July 1945 Australian Labor Party
27-28 Chifley 13 July 1945 to 19 December 1949 Australian Labor Party
29-33 Menzies 19 December 1949 to 26 January 1966 Liberal-Country Party
34-35 Holt 26 January 1966 to 19 December 1967 Liberal-Country Party
 36 McEwen 19 December 1967 to 10 January 1968 Liberal-Country Party
37-39 Gorton 10 January 1968 to 10 March 1971 Liberal-Country Party
40 McMahon 10 March 1971 to 5 December 1972 Liberal-Country Party
41-43 Whitlam 5 December 1972 to 11 November 1975 Australian Labor Party
44-48 Fraser 11 November 1975 to 11 March 1983 Liberal-National Country Party
49-52 Hawke 11 March 1983 to 20 December 1991 Australian Labor Party
53-55 Keating 20 December 1991 to 11 March 1996 Australian Labor Party
56-59 Howard 11 March 1996 to 3 December 2007 Liberal-Nationals
60 Rudd 3 December 2007 to Australian Labor Party

Source: Library of the Commonwealth Parliament.

Back to top
Cabinet

Senior ministers are members of the Cabinet, the meetings of which are chaired by the Prime
Minister. Cabinet is not a body that is recognised by the Constitution, being a conventional part
of the governmental arrangements. Despite this, Cabinet effectively controls not only a
government’s legislative program, but also government departments of state. In effect, therefore,
Cabinet is the dominant political and administrative element in Australia's national government.
The Governor-General does not attend Cabinet meetings.

Particulars of the First Rudd Ministry, comprising Cabinet ministers and the outer ministry, are
shown in table 4.2.
4.2 FIRST RUDD MINISTRY - June 2009

CABINET MINISTERS

The Hon. Kevin Rudd

Prime Minister
MP
Minister for Education, Employment and Workplace Relations and Minister for Social The Hon. Julia
Inclusion (Deputy Prime Minister) Gillard MP
The Hon. Wayne
Treasurer
Swan MP
The Hon. Stephen
Minister for Foreign Affairs
Smith MP
The Hon. Simon
Minister for Trade
Crean MP
The Hon. Lindsay
Minister for Finance and Administration
Tanner MP
The Hon. Nicola
Minister for Health and Ageing
Roxon MP
The Hon. Robert
Attorney-General
McClelland MP
Senator the Hon.
Minister for Broadband, Communications and the Digital Economy
Stephen Conroy
Senator the Hon. John
Minister for Defence
Faulkner
Senator the Hon. Kim
Minister for Innovation, Industry, Science and Research
Carr
Senator the Hon.
Minister for Immigration and Citizenship
Chris Evans
Minister for Agriculture, Fisheries and Forestry The Hon. Tony Burke
 MP
The Hon. Jenny
Minister for Families, Housing, Community Services and Indigenous Affairs
Macklin MP
The Hon. Peter
Minister for Environment, Heritage and the Arts
Garrett MP
The Hon. Anthony
Minister for Infrastructure, Transport, Regional Development and Local Government
Albanese MP
Senator the Hon. Joe
Cabinet Secretary and Special Minister of State
Ludwig
Senator the Hon.
Minister for Climate Change and Water
Penny Wong
The Hon. Martin
Minister for Resources and Energy and Minister for Tourism
Ferguson MP
The Hon. Chris
Minister for Human Services
Bowen MP

OUTER MINISTRY

The Hon. Brendan

Minister for Home Affairs
O'Connor MP
Senator the Hon.
Assistant Treasurer
Nick Sherry
The Hon. Alan
Minister for Veterans' Affairs
Griffin MP
The Hon. Justine
Minister for Ageing
Elliott MP
The Hon. Tanya
Minister for Housing and Minister for the Status of Women
Plibersek MP
The Hon. Kate Ellis
Minister for Sport and Minister for Early Childhood Education, Childcare and Youth
MP
Minister for Defence Personnel, Materiel and Science and Minister assisting the Minister for The Hon. Greg
Climate Change Combet MP
The Hon. Chris
Minister for Financial Services, Superannuation and Corporate Law
Bowen MP
Minister for Small Business, Independent Contractors and the Service Economy, Minister
The Hon. Craig
assisting the Finance Minister on Deregulation and Minister for Competition Policy and
Emerson MP
Consumer Affairs
Minister for Employment Participation and Minister assisting the Prime MInister for Senator the Hon.
Government Service Delivery Mark Arbib
The Hon. Warren
Minister for Indigenous Health, Rural and Regional Health and Regional Service Delivery
Snowdon MP

Source: Library of the Commonwealth Parliament.

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The Opposition

In Westminster-derived governments, such as Australia's, the Opposition has a recognised and

formal status, being recognised in the Standing Orders of the Parliament and in legislation. The
Opposition is seen as the alternative government and typically forms a 'shadow Cabinet' of MPs
who prepare themselves to take on the reins of government. The Opposition also has the role of
acting as the main critic of the government and of offering to the community an alternative set of
policies.
Mr Tony Abbott MP (Liberal Party of Australia) has been Leader of the Opposition since 1
December 2009.

COMMONWEALTH ELECTIONS

Generally, the 150 members of the House of Representatives, half of the 72 state senators and the
four territory senators are elected approximately every three years.

Voting methods

Members of the House of Representatives are elected by voters using the alternative vote
electoral system (known in Australia as ‘preferential voting’); Senators are elected by voters
using the voting method known as proportional representation (single transferable vote variant).

Franchise

Any Australian citizen aged 18 years and over, or British subject who was on the
Commonwealth Roll as at 25 January 1984, is qualified to enrol and vote at Commonwealth
elections. Residence in a particular electorate for at least a period of one month is also a
requirement. Enrolment and attendance at a polling place on polling day (except under certain
lawful exceptions) are compulsory for all eligible persons.

Parliamentary terms

Members of the House of Representatives are elected for a maximum term of three years, though
elections may be called earlier. Senators have fixed terms of six years. Normally half the Senate
retires every three years, and half-Senate elections are usually held at the same time as elections
for the House of Representatives, though they need not be. The most recent separate elections for
each house occurred in 1970 (Senate) and 1972 (House of Representatives).

At times of disagreement between the House of Representatives and the Senate, the two houses
may be dissolved and an election called for both. Of the 42 Commonwealth elections, six have
been ‘double dissolution’ elections, the most recent of which occurred in 1987.

There have been 42 parliaments since Federation. The longest parliament was the third, which
ran from 20 February 1907 to 19 February 1910, and the shortest was the eleventh, which ran
from 6 February to 16 September 1929.
Back to top

The 42nd Parliament was required to meet within 30 days of the day appointed for the return of
the electoral writs in the 24 November 2007 election. Parliament commenced on 12 February
2008. For details of the 2007 election, see <http://www.aec.gov.au>.
Electorates

For the purpose of House of Representatives elections each state or territory is divided into
single-member electorates according to the number of members of the House of Representatives
to which the state or territory is entitled (table 4.3). The article Drawing House of
Representatives electorate boundaries which discusses electoral redistributions in detail is in
Year Book Australia 2005. In Senate elections the whole state or territory constitutes a single
electorate.
4.3 ENROLMENT AND ELECTORATES – June 2009
Electors enrolled Electorates

New South Wales 4 554 311 49

Victoria 3 490 260 37
Queensland 2 688 131 29
Western Australia 1 350 559 15
South Australia 1 087 233 11
Tasmania 356 065 5
Northern Territory 120 530 2
Australian Capital Territory 245 473 2
Total 13 892 562 150

Source: Australian Electoral Commission.

2007 election

The House of Representatives was dissolved on 17 October 2007. Elections for the House of
Representatives and half of the Senate were held on 24 November 2007.

The Australian Labor Party gained control of the House of Representatives but did not gain
control of the Senate. The Labor Party formed Australia’s 60th Commonwealth Government.
STATE GOVERNMENT

The Australian nation was created by the federation of the six British self-governing colonies of
New South Wales, Tasmania, Queensland, Western Australia, Victoria and South Australia
which became the ‘Original States’ in the Commonwealth of Australia. Under the constitutional
arrangements that came into existence in 1901 significant powers were retained by these states.
State administrative responsibilities include education, police, public health, public transport,
agriculture, roads, community services, corrective services, mineral resources, emergency
services, ports and the oversight of local government.

Governors

A state governor is the representative of the Sovereign, appointed by the Sovereign on the advice
of the state’s premier. The governor exercises the executive power of his or her state on the
advice of the premier. Other powers and functions are similar to the powers exercised at the
Commonwealth level by the Governor-General.

In addition, governors have been invested with various statutory functions by state constitutions
and the Australia Act 1986 (Cwlth), as well as under the Acts of the parliaments of the states.
For example, governors may administer the prerogative of mercy by the reprieve or pardon of
criminal offenders, and may remit fines and penalties.

The governors also possess what are referred to as 'reserve powers'. These may be used without
the advice of the premier, but are used only in times of political uncertainty.

The governors of the states at December 2009 are shown in table 4.4.
4.4 GOVERNORS - December 2009

New South Wales Her Excellency Professor Marie Bashir AC

Victoria Professor David de Krester AC
Queensland Her Excellency Ms Penelope Wensley AO
Western Australia His Excellency Dr Ken Michael AM
South Australia His Excellency Rear Admiral Kevin Scarce AO CSC
Tasmania His Excellency the Hon. Peter Underwood AC

Source: Library of the Commonwealth Parliament.

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Governments

Each state is governed by a ministry headed by a premier. The state cabinet, chaired by the
premier, is the centre of political and administrative power in each state.

Each state has a formal opposition, with the same role as at the Commonwealth level.

Table 4.5 lists the premiers at December 2009.

4.5 PREMIERS - December 2009

New South Wales The Hon. Kristina Keneally MP (ALP)

Victoria The Hon. John Brumby MLA (ALP)
Queensland The Hon. Anna Bligh MLA (ALP)
Western Australia The Hon. Colin Barnett MLA (LP)
South Australia The Hon. Mike Rann MLA (ALP)
Tasmania The Hon. David Bartlett MHA (ALP)

Source: Library of the Commonwealth Parliament.

Parliaments
Five of the six Australian states have a bicameral parliament. In Queensland there is a single
house. The lower houses in New South Wales, Victoria, Queensland and Western Australia are
entitled Legislative Assembly; in South Australia and Tasmania the term is House of Assembly.
The title of the five upper houses is Legislative Council.

Elections

The members of the parliaments of each state are elected by the residents of that state using
either the alternative vote (‘preferential voting’) or proportional representation (single
transferable vote variant).
TERRITORY GOVERNMENT

The Commonwealth Government assumed control of both the Northern Territory and the
Australian Capital Territory in 1911. The Northern Territory (since 1978) and the Australian
Capital Territory (since 1989) are self-governing territories with powers almost matching those
of the states. The Northern Territory has been working towards full statehood, though a
referendum on the question was rejected by Northern Territory voters in 1998. Norfolk Island
was accepted into the Commonwealth as an Australian territory in 1914. The Norfolk Island
Act 1979 (Cwlth) grants a considerable degree of self-government to that territory.

The Northern Territory and Norfolk Island both have an administrator of the territory, appointed
by the Governor-General (table 4.6). The Australian Capital Territory has neither administrator
nor governor.
4.6 ADMINISTRATORS - December 2009

Northern Territory The Hon. Thomas Pauling AO QC

Norfolk Island The Hon. Owen Walsh (acting)

Source: Library of the Commonwealth Parliament.

Each territory has an elected Legislative Assembly, with a wide range of powers, with a
government headed by a chief minister (table 4.7). The Northern Territory and the Australian
Capital Territory have a formally recognised opposition. Norfolk Island’s Legislative Assembly
does not possess a formal opposition.
4.7 CHIEF MINISTERS - December 2009

Northern Territory The Hon. P Henderson MLA (ALP)

Australian Capital Territory The Hon. J Stanhope MLA (ALP)
Norfolk Island The Hon. A Nobbs MLA

Source: Library of the Commonwealth Parliament.

Jervis Bay Territory, and the external territories of the Cocos (Keeling) Islands, Christmas
Island, Coral Sea Islands, and Ashmore and Cartier Islands, make up the non-self governing
territories of Australia.

The resident communities in each of Jervis Bay Territory, the Cocos (Keeling) Islands and
Christmas Island are provided with an extensive range of government services. Each of the
Cocos (Keeling) Islands and Christmas Island has an elected local government, and residents
may vote in Commonwealth parliamentary elections in the electorate of Lingiari (Northern
Territory). Residents of Jervis Bay Territory are enrolled in the Commonwealth electorate of
Fraser (Australian Capital Territory).

Australia's activities in its Antarctic Territory are governed by the Antarctic Treaty (1959) (see
the article
Australia and Antarctica in Year Book Australia 2007). Under this agreement the nations
active in Antarctica consult on the uses of the continent, with a commitment that it should not
become 'the scene or object of international discord'.
LOCAL GOVERNMENT

Local government has a limited constitutional position in Australia, being organised

under state or territory legislation upon broadly similar lines across Australia. There
are no local councils in the Australian Capital Territory, where the Territory
government has direct responsibility for local services. Local government in
Australia provides a relatively narrow range of services compared with many other
nations.

Each state and the Northern Territory has a number of local government areas,
known variously as cities, towns, municipalities, boroughs, shires or districts. The
main variation is the existence of various councils in the Northern Territory that are
based on rural indigenous communities. The generic local body is the council. In
October 2009 there were 563 local councils. Councillors and aldermen are elected
by local residents, though councils may be dismissed by state governments - and
occasionally are.

Within each local government area various services are provided, though there are
many variations between states as well as between urban and rural councils. The
Brisbane City Council is responsible for the provision of a wide range of services
across most of Brisbane; by contrast, many small rural councils provide a relatively
small number of services. Local government responsibilities include the
management of health, welfare, sanitary and garbage services, road, street and
bridge construction, water supply and sewerage, museums, fire brigades, harbour
services, town planning and local libraries. The scope of local government duties
differs a great deal around the nation, for in all states many of the responsibilities of
a local nature are performed either directly by the state government or through
semi-government authorities, known as statutory authorities. The provision of
household water, for instance, is typically undertaken by a statutory authority
operating under state legislation.

PUBLIC SERVICE

Numbers

An essential part of government in Australia is the public service that exists at each level. The
total number of such employees at June 2008 was 1,751,400 persons, or approximately 16% of
the entire Australian workforce.

Agencies

Public servants are employed by:

 Commonwealth departments of state, such as the Department of Defence
 state departments, such as education departments
 territory departments, such as the Australian Capital Territory and Northern Territory
Departments of Chief Minister
 parliamentary departments -- Commonwealth, state and territory
 the staff of members of parliament
 ministerial staff
 government-owned companies
 statutory authorities, such as the various state electricity authorities
 local government employees.

Functions

There are three main functions performed by the public service agencies:
 policy advice
 the oversight of policy implementation
 the provision of the administrative machinery required to deliver the policies of the
relevant government or agency.
POLITICAL PARTIES

The party system

An Australian party system had begun to develop during the last years of the
colonial period in the 1890s, to the extent that most seats in the first
Commonwealth Parliament were won by candidates from just three major groups,
one of which was the Australian Labor Party. The outline of the modern system
could be seen by 1910 following the fusion of two non-Labor parties in opposition to
Labor. In 1919 the Country Party won a significant number of seats, and by 1923 it
had joined the major non-Labor party in the first of many conservative coalition
governments. Today the party battle at the Commonwealth level and in New South
Wales, Queensland, Victoria and Western Australia is dominated by the contest
between Labor and the Liberal and National (formerly Country) parties. In South
Australia, Tasmania and the Australian Capital Territory the major contest is
between the Liberal and Labor parties, while in the Northern Territory the Country
Liberal Party opposes the Labor Party.

Many minor parties have contested House of Representatives and Assembly

elections, but only in the Tasmanian House of Assembly and Australian Capital
Territory Legislative Assembly elections has the dominance of the major parties
been threatened on occasion by minor parties and independents. The use of
proportional representation for most of the upper house elections has given minor
parties and independents a realistic chance of winning Senate and Legislative
Council seats. Since 1980 the major parties have controlled the Senate and
Legislative Councils only intermittently.

Parties and Parliament

Australian parliaments have thus been dominated by the tightly controlled parties
since the early 20th century. This has been the key factor in a decline in the
significance of parliament relative to that of the executive.

The impact of parties can especially be seen in the operations of each

parliamentary house, particularly in the legislative process. Opposition parties
spend much time criticising governments and legislative amendments are often
moved. However, because governments usually enjoy a majority in these lower
houses, questions may be avoided, amendments cannot be forced, and whether or
not opposition views are accepted depends on the wishes of the government of the
day.

It has been a different story whenever the Senate and the Legislative Councils have
not been controlled by government, for the upper houses are powerful and all can
alter or reject government legislation. When a government controls an upper house,
however, that body’s influence upon legislation tends to decline. For example, when
the coalition Commonwealth Government controlled both national houses from July
2005 to July 2008, the Senate’s impact on legislation was lessened significantly.

REFERENCE NOTES

The Australian Constitution is reproduced in Year Book Australia from time to time,
the latest being the 1998 edition. Details of constitutional referendums are found in
Year Book Australia 1974, Year Book Australia 1977-78 and Year Book
Australia 1986.

In Year Book Australia 1924 the names are given of each ministry from
Federation until February 1923. Year Book Australia 1953 contains a list of
ministries which covers the period between February 1923 and July 1951. The
names of members of subsequent ministries are listed in issues of Year Book
Australia 1953 to 1975-76 inclusive, and in successive issues from 1980.

Full details of Commonwealth elections are issued by the Australian Electoral

Commission following each election. State and territory election details are issued
by the relevant electoral offices or commissions.

http://abs.gov.au/AUSSTATS/abs@.nsf/Lookup/27F322B7D7D1A7A9CA25773700169
C44?opendocument

International Relations
INTRODUCTION

This chapter was contributed by the Australian Government Department of Foreign

Affairs and Trade and the Australian Agency for International Development (AusAID)
(December 2009).

Australia’s foreign and trade policies are designed to advance the security and
prosperity of Australia and Australians in an increasingly complex and challenging
international environment. Australia's foreign and trade policies and overseas aid
program contribute importantly to achieving Australia's goals as a creative middle
power.

The Australian Government's operational environment continues to present both

opportunities and challenges. Opportunities include expanded trade access, new
security cooperation and broader bilateral and multilateral cooperation on shared
goals. The unpredictable nature of the external environment is a key risk that has
the potential to affect Australian security and economic interests such as terrorism
and transnational threats, as well as climate change.

Australia pursues bilateral, regional and multilateral strategies to advance its

national interest. Australia has close bilateral relationships with countries in the
region and a strong alliance in the United States of America. Australia is an active
member of regional organisations, such as the Asia-Pacific Economic Cooperation
forum, the Association of South East Asian Nations Regional Forum, the East Asia
Summit and the Pacific Islands Forum.

The Australian Government participates proactively in multilateral organisations. It

uses its membership of international bodies, including the United Nations and the
World Trade Organization, to work for regional security and stability, trade
liberalisation, good governance and human rights as well as sustainable
development, among other important goals.

AUSTRALIA'S CREDENTIALS AND PLACE IN THE INTERNATIONAL SYSTEM

Australia is an independent and outward-looking nation actively involved in

international affairs. Australia has close links with North America and Europe and is
closely engaged in Asia and the Pacific.

Australia is a stable, democratic society with a skilled workforce and a strong,

competitive economy - real gross domestic product (GDP) has grown by an annual
average of 3.2 per cent over the past decade. Australia’s prosperity is based in
large part on international trade and investment. One in five Australian jobs
depends on trade.

Australia’s cultural diversity, record of constructive international engagement,

strong political institutions and liberal democratic values inform its involvement in
world affairs.

ROLE OF DFAT IN AUSTRALIA'S INTERNATIONAL RELATIONS

(DFAT) is the principal source of advice to the Australian Government on foreign and trade
policy issues, and is responsible for implementing the Government’s foreign and trade policies.
The Department works to achieve three primary outcomes to advance the interests of Australia
and Australians internationally:
 the advancement of Australia’s international strategic, security and economic interests
including through bilateral, regional and multilateral engagement on Australian
Government foreign and trade policy priorities
 the protection and welfare of Australians abroad and access to secure international travel
documentation through timely and responsive travel advice and consular and passport
services in Australia and overseas, and
 a secure Australian Government presence overseas through the provision of security
services and information and communications technology infrastructure, and the
management of the Commonwealth’s overseas owned estate.
 AUSTRALIA'S BILATERAL RELATIONSHIPS

Australia fosters significant relationships with a range of countries on the basis of shared
interests. As a medium-sized power, Australia’s international engagement focuses on
 those countries with the greatest influence on its strategic and economic situation.

United States of America (USA)

The USA is Australia’s closest security ally and its most important economic partner.
Australia engages closely with the USA and advocates views across a broad range of
international issues. The relationship with the USA complements Australia’s commitment
to the Asia-Pacific region, where the US’s engagement contributes to security and
prosperity.

At the heart of security relations between Australia and the USA is the ANZUS Treaty,
signed in 1951 and in effect since 1952. The treaty binds the two countries in mutual
cooperation on military and security issues and contains a commitment that both
Australia and the USA will act to meet common dangers. Australia invoked the ANZUS
Treaty for the first time following the terrorist attacks on 11 September 2001, when it
deployed forces to Afghanistan.

Strengthened by nearly 60 years of cooperation, the ANZUS alliance continues to

underpin a dynamic and broad-ranging security relationship. Under the alliance, Australia
and the USA hold joint defence exercises, share strategic assessments and exchange
intelligence and personnel. Defence technology and procurement cooperation under the
alliance is vital to maintaining the qualitative edge of Australia’s defence forces. The two
countries cooperate extensively on counter-terrorism, non-proliferation and humanitarian
and disaster relief activities.

The Australia-United States Ministerial Consultations (AUSMIN) are held between

Australian foreign and defence ministers and their US counterparts, the Secretaries of
State and of Defense, on a regular basis to discuss strategic issues of mutual concern. The
strength of the alliance with the USA was reaffirmed at the last AUSMIN, held in
Washington, USA in April 2009. AUSMIN outcomes included an agreement to explore
strengthening bilateral civil-military cooperation, including in addressing the needs of
fragile states; and an agreement on principles that will guide greater cooperation on
intelligence, surveillance and reconnaissance, and cyber security.

Australia's Prime Minister Kevin Rudd visited the USA in March, September and
November 2008 and in March, September and December 2009. The Minister for Foreign
Affairs Stephen Smith visited the USA in January and September 2008 and in April and
September 2009. The Minister for Trade Simon Crean visited the USA in January, June
and December 2008 and in March and October 2009. At Mr Smith’s invitation, former
US Secretary of State Ms Condoleezza Rice visited Australia in July 2008. Other
Australian Ministers visited the USA in the past year to advance Australian priorities in
defence, the G20, climate change, innovation, economic recovery, education and
environmental cooperation.
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
The Australia-US Free Trade Agreement (AUSFTA) entered into force on 1 January
2005, providing significant new opportunities for Australian exporters and investors. The
Australia-United States Ministerial Trade Talks (AUSMINTT), which review
implementation of AUSFTA and provide the opportunity to discuss a broad range of
bilateral, regional and global trade and economic issues that impact on Australian and US
interests, met in Newark, New Jersey in June 2008 and in Washington in October 2009.

The USA is one of Australia’s top merchandise trading partners, its largest services
trading partner and its leading source of foreign investment. In 2008 Australia exported
goods and services to the USA worth $18.3 billion and imported goods and services from
the USA worth $36.5 billion. Major Australian exports to the USA include professional
services, beef, alcoholic beverages, and crude petroleum. Investment remains a strong
feature of the economic relationship, with two-way investment valued at $813 billion at
the end of 2008.

People-to-people ties, including educational and cultural links, are extensive. In 2008-09,
370,866 visitor visas were granted to US citizens - the second-largest source after the
United Kingdom. Over the same period, 9598 student visas were granted to US citizens -
the eighth-largest source. A Work and Holiday Memorandum of Understanding between
Australia and the USA, which allows tertiary students to undertake a gap year in the
USA, came into effect in October 2007.

Japan

Australia’s close relationship with Japan continues to draw strength from long-
established common interests and values. Both countries are industrialised democracies,
committed to prosperity and stability in the Asia-Pacific region and key allies of the
United States of America. Australia and Japan are working together to identify new areas
to broaden the existing partnership on security matters, including counter-terrorism and
counter-proliferation. Japan and Australia also have an extensive record of cooperation in
areas such as humanitarian relief, peacekeeping, responding to the global financial crisis,
and responding to climate change.

Japan underwent an historic change of government in August 2009 with the Democratic
Party of Japan winning power after 54 years of nearly continuous rule by the Liberal
Democratic Party. The Australian Government has engaged early with the new
Government. The Prime Minister Kevin Rudd and the Minister for Foreign Affairs
Stephen Smith both met their counterparts at the UN General Assembly in New York in
September 2009. The Minister for Trade Simon Crean’s visit to Japan in October 2009 -
the first there by an Australian Cabinet Minister since the new Japanese Government’s
election - highlighted Australia’s continued commitment to working closely with Japan
across a range of issues.

Cooperation on defence and security issues continued to develop strongly. Australia and
Japan are implementing the Joint Declaration on Security Cooperation, signed by the then
Prime Ministers of Australia and Japan in 2007, through an Action Plan. The Declaration
is the most ambitious security arrangement that Japan has entered into with any country
other than the United States and encompasses regular foreign and defence ministers talks,
joint exercises and training. The Action Plan to implement the Joint Declaration will be
 updated in due course to reflect the evolving security relationship. The second joint
Foreign and Defence Ministers’ meeting was held in Tokyo in December 2008.

Mr Smith and his US and Japanese counterparts, Ms Hillary Clinton and Mr Katsuya
Okada, held the fourth ministerial meeting of the Trilateral Strategic Dialogue (TSD) in
September 2009 to exchange views on a number of regional and global issues of mutual
interest. The TSD is a valuable forum for cooperation on common strategic interests
which promote stability and security in the Asia-Pacific region and globally. Australia
and Japan also co-chair the International Commission on Nuclear Non-proliferation and
Disarmament, established by Prime Minister Rudd and his then Japanese counterpart, Mr
Yasuo Fukuda, in July 2008. The two countries are working closely through the
Commission in support of the international non-proliferation regime and to bring about
nuclear disarmament.

Japan has been Australia’s largest export market for 40 years. Merchandise exports to
Japan totalled $52.5 billion in 2008-09, more than the combined value of goods exports
to China and the United States. In 2008-09, Japan was Australia’s top export market for
coal, beef, aluminium, liquefied natural gas (LNG), dairy products and woodchips. Japan
was also Australia’s third largest source of foreign investment, with a total stock of
investment worth $89.5 billion at the end of 2008. The inaugural Australia-Japan Trade
and Economic Ministerial Dialogue was held by Mr Crean and his Japanese counterpart,
Mr Masayuki Naoshima, in Tokyo in October 2009.
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
Negotiations on a bilateral Free Trade Agreement (FTA) commenced in 2007, and have
continued to make good progress. The tenth round of negotiations was held in November
2009. Both sides have recently reaffirmed their commitment to a comprehensive, World
Trade Organization (WTO)-consistent FTA which will deliver economic benefits to both
countries.

The cultural relationship between the two nations continues to grow. There are currently
16 Australia-Japan and Japan-Australia societies providing grass-roots community
support to the relationship, as well as 99 sister city alliances. The Australian and Japanese
Governments are also supporting grassroots efforts to increase Japanese language
learning in Australia and related exchanges, including proposals made at the 5th
Australia-Japan Conference in November 2008.

China

Australia’s relationship with China has continued to grow and mature. Australia’s
constructive and friendly relationship with China is built on the basis of mutual respect,
and recognition of shared interests as well as differences. China's importance to Australia
has grown with China's increasing economic, political and strategic weight in the Asia-
Pacific region, and in the global economy. In 2008-9, China was Australia’s largest
trading partner.

Australia engages with China on various issues of mutual interest, including the G20
 response to the global economic crisis, climate change, nuclear non-proliferation, the
WTO Doha Round and development assistance in the South Pacific. Australia and China
have regular bilateral dialogues on climate change, consular issues, human rights and
regional security.

In 2008-9, Australia's trade with China reached $83.0 billion. Australia exported goods
and services worth $44.4 billion to China. Major Australian exports to China included
iron ore, education services, coal, alumina, wool and copper ores.

Frequent high-level visits between Australia and China have strengthened the
relationship. Over the past year, the Minister for Trade Simon Crean has made four visits
to China to promote Australia’s trade and economic interests in China’s rapidly
developing inland regions, and to advocate Australia’s interests in the FTA negotiations.

In March 2009 the Minister for Foreign Affairs Stephen Smith visited China for the
second Australia-China Strategic Dialogue with his counterpart Mr Yang Jiechi.

Australia and China concluded a joint statement on the bilateral relationship during Vice
Premier Li Keqiang’s visit in October 2009. The joint statement - the first since 1972 -
reaffirmed the two sides’ willingness to enhance cooperation in various fields, and
promote the expansion of the relationship.

Chinese Communist Party Politburo Standing Committee members, Mr Zhou Yongkang

(November 2008) and Mr Li Changchun (March 2009) visited Australia. These visits
were part of the regular bilateral exchange of visits by senior government and political
leaders.

The Australia-China Council continued to play a significant role in building

understanding in China of contemporary Australia’s scientific, technological and
educational outlook.

Within the framework of its one-China policy, Australia promoted important economic,
trade, cultural and people-to-people links with Taiwan.
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 Korean Peninsula

Australia’s bilateral relationship with the Republic of Korea (ROK) continues to grow
stronger and deeper, building upon shared democratic values, common strategic interests
and substantial and complementary economic ties.

The ROK was Australia’s third largest merchandise export market in 2008-09, with
exports totalling $19.2 billion for the financial year. This is an increase of 35.1 per cent
year-on-year, due to the higher value of iron ore and coal sales, which accounted for over
half of merchandise exports. The largest merchandise export items in 2008-09 were coal
($7.0 billion), iron ore ($3.4 billion) and crude petroleum ($2.3 billion). Refined
petroleum and passenger motor vehicles are Australia’s largest import items from the
ROK. Services exports in 2008-09 were valued at $1.8 billion. The ROK was Australia’s
eighth-largest source of visitor arrivals and third-largest source of overseas student
enrolments.

Visits to the ROK by the Prime Minister Kevin Rudd in August 2008, and by the
President of the ROK, H.E. Mr Lee Myung-bak, to Australia in March 2009, and
ministerial visits both ways (ROK Minister for Trade Kim Jong-hoon in May 2009,
Minister for Trade Simon Crean in October 2009, Foreign Minister Stephen Smith in
December 2009), enhanced significantly relations between the two countries.

On 5 March 2009, in Canberra, Prime Minister Rudd and President Lee released a Joint
Statement on Enhanced Global and Security Cooperation between Australia and the
Republic of Korea. The Statement built on the significant security cooperation that
already existed and paved the way for closer cooperation bilaterally, and in regional and
multilateral fora, across a range of fields, including law enforcement, border security,
counter-terrorism, disarmament and non-proliferation and disaster response. It also
provided a framework for expanding practical defence cooperation in areas such as
military information sharing, peacekeeping, civil-military cooperation, joint exercises and
training, and defence industries.

Prime Minister Rudd and President Lee also agreed to launch negotiations on a bilateral
free trade agreement. The Minister for Trade Simon Crean and the ROK Minister for
Trade, H.E. Mr Kim Jong-hoon, launched the first round of negotiations in Melbourne on
18 May 2009. Officials then held four days of negotiations in Canberra. The second
round of negotiations was held in Seoul from 31 August to 4 September 2009, and a third
round was held from 30 November to 4 December 2009.

Australia continued to work closely with the United States, Japan, the ROK and other
countries in support of international efforts to bring about an end to the nuclear weapons
program of the Democratic People’s Republic of Korea (DPRK).

The Australian Government publicly condemned the DPRK’s launch on 5 April 2009 of
a long-range ballistic missile and its nuclear test on 25 May 2009. Australia urged
members of the United Nations Security Council (UNSC) to respond strongly to the
nuclear test and welcomed the UNSC’s unanimous adoption on 12 June 2009 of
Resolution 1874 condemning the test and building upon the sanctions imposed against
the DPRK in Resolution 1718, which the UNSC had adopted following the DPRK’s first
nuclear test in October 2006.

Australia implemented the sanctions mandated by UNSC Resolution 1874 with the
necessary amendments to Australian regulations, made on 11 July 2009. Australia
continues to implement fully UNSC Resolution 1718 and to maintain autonomous
sanctions comprising restrictions on travel to Australia by DPRK nationals, a ban on port
entry by DPRK·flagged ships and financial sanctions against named entities linked to the
DPRK’s weapons of mass destruction (WMD) programs.

Australia continued to support the Six-Party Talks process comprising the ROK, DPRK,
the United States, China, Japan and Russia, including by supporting efforts to persuade
the DPRK to reverse its position to quit the talks (announced in April 2009). During visits
to Pyongyang by Australia’s non-resident Ambassador (based in Seoul) in March 2009
 and June 2009, and in other diplomatic exchanges, Australia urged the DPRK to work
constructively with its Six-Party partners, abide by its Six-Party Talks commitments and
its obligations under UNSC Resolutions and abandon its nuclear weapons program.
Australia also urged the DPRK to work to improve relations with Japan and the ROK,
and raised Australia’s concerns about the DPRK’s human rights record.

Australian bilateral development assistance to the DPRK has been suspended since 2002,
but Australia has continued to provide humanitarian assistance, without linkage to
political considerations, through UN agencies and the Red Cross. The value of this
assistance in 2008-09 totalled $6.75 million.
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 Indonesia

Australia and Indonesia are close neighbours enjoying a wide-ranging relationship

encompassing political, security, commercial, cultural and people-to-people links. The
relationship is underpinned by frequent two-way high-level visits. Australia and
Indonesia are cooperating closely on counter-terrorism, people smuggling, transnational
crime, illegal fishing and climate change.

On 13 November 2006, Australia and Indonesia signed the Agreement on the Framework
for Security Cooperation (the Lombok Treaty), which came into force in February 2008.
Indonesian and Australian officials adopted a Lombok Treaty Plan of Action in
November 2008, which outlined a work agenda to enhance cooperation in a range of
fields, including defence, law enforcement, counter-terrorism, and disaster response.

Australia provided an estimated $482.4 million in official development assistance to

Indonesia in 2008-09, through a country program and ongoing commitments under the
Australia-Indonesia Partnership for Reconstruction and Development (AIPRD), which
saw $1 billion committed in grants and loans following the Indian Ocean tsunami of
2004. Australia’s assistance focuses on four areas: sustainable growth and economic
management, improving service delivery, democracy, justice and good governance, and
safety and peace.

The Australia-Indonesia Ministerial Forum (AIMF) and the Australia-Indonesia Trade

Ministers’ Meeting (TMM) are key platforms for enhancing cooperation between the two
countries. The AIMF last met in Canberra on 12 November 2008, and was attended by
seven Australian and six Indonesian ministers. After the forum, Ministers released a Joint
Statement on People Smuggling and Trafficking in Persons. The AIMF, established in
1992, is the peak bilateral consultative forum between the two governments.

The last TMM was held in Sydney in February 2009. At the TMM, the Australian and
Indonesian Trade Ministers welcomed the public release of an Australia-Indonesia Free
Trade Agreement Joint Feasibility Study, which found that a comprehensive FTA
between Australia and Indonesia could build on the solid foundation of the ASEAN-
Australia New Zealand FTA.

The bilateral trade relationship remains steady with two-way trade totalling $11.5 billion
in 2008, making Indonesia our 13th largest trading partner. Australia’s merchandise
 exports were valued at $4.3 billion and services exports were valued at just over $1
billion in 2008. Australia’s major exports to Indonesia include wheat, aluminium, live
animals, education-related travel and copper.

People-to-people links are an important part of Australia-Indonesia relations. From 19-21

February 2009, Australia hosted a major conference, Australia-Indonesia: Partners in a
New Era in Sydney. The conference drew the largest Indonesian delegation to ever visit
Australia. Over 140 Australian and Indonesian delegates participated from a range of
sectors, including politics, business, the public service, media, academia, civil society and
the arts. Participants engaged in a lively exchange of ideas on the core conference themes
of democracy and governance, economic development, trade and investment, the
environment, and people and perceptions. In 2008-09, there were over 16,000 Indonesian
student enrolments in Australia. Australia also promotes bilateral understanding and
exchanges through the Australia-Indonesia Institute, established by the Australian
Government in 1989.
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 India

Australia has placed India in the front rank of its international partnerships and is
engaging with India on a long-term, strategic basis. Both Governments recognise there is
significant potential for further cooperation across a broad range of areas. The bilateral
relationship has a strong institutional framework that includes a Foreign Ministers
Framework Dialogue (FMFD), a Joint Ministerial Commission involving trade ministers,
senior officials’ talks and a strategic dialogue. Seven Australian Ministers, including the
Prime Minister, visited India in 2009.

The Prime Minister Kevin Rudd visited India from 11-13 November 2009. He and Indian
Prime Minister Manhoman Singh issued a joint statement that included agreement to
upgrade relations between the two countries to the level of a “Strategic Partnership.” As
part of the Strategic Partnership, Australia and India issued a Joint Declaration on
Security Cooperation that will see the two countries intensify their efforts to maintain
peace, stability and prosperity and put in place mechanisms to ensure closer and more
regular collaboration in security areas. The Prime Minister announced that Australian
representation in India would significantly expand with six additional Australia-based
staff in New Delhi, including new positions from the Treasury, the Department of
Resources, Energy and Tourism, the Australian Federal Police, the Department of
Immigration and the Australian Customs Service. Mr Rudd also announced Australia
would expand Austrade’s network of Indian national trade and commercial staff across a
large number of regional cities and also establish a new Investment Commissioner
position in Mumbai. Australia will expand its official presence in Mumbai by three
Australia-based staff and in Chennai by four Australia-based staff, opening new DFAT
posts in each city.

The Australia-India economic relationship has grown steadily in recent years and has the
potential to increase considerably as India's economic expansion continues. Australia's
strength in exporting primary products, particularly minerals and fuels, positions us well
to supply growing Indian industrial and consumer demand. Two-way trade totalled nearly
$19 billion in 2008.
 The Australian Government established the Australia-India Council in 1992 to broaden
and deepen bilateral contacts and understanding.

Association of South-East Asian Nations (ASEAN) and regional issues

Australia attaches priority to its relationship with ASEAN, which is a key regional
institution comprising Brunei Darussalam, Burma (Myanmar), Cambodia, Indonesia,
Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Australia was the first
country to become a dialogue partner of ASEAN, in 1974, and participates in a number
of important ASEAN-related meetings, notably the East Asia Summit (EAS), the
ASEAN Regional Forum (ARF) and the ASEAN Post Ministerial Conference.

In 2009, a comprehensive ASEAN-Australia-New Zealand Free Trade Agreement

(AANZFTA) was signed and came into force on 1 January 2010. Australia and ASEAN
signed a Joint Declaration for Cooperation to Combat International Terrorism in 2004
and finalised a work programme to implement the Joint Declaration in June 2007, which
is currently being updated. On 10 December 2005, then Minister for Foreign Affairs
Alexander Downer signed the instrument of accession to the ASEAN Treaty of Amity
and Cooperation.

In August 2007, Australia and ASEAN signed a Joint Declaration on an ASEAN-

Australia Comprehensive Partnership which provides a framework for the future
direction of Australia’s engagement with ASEAN. The ASEAN-Australia Development
Cooperation Program Phase 2 (totalling $57 million over seven years), is a flagship
program supporting ASEAN’s economic integration and demonstrating Australia’s
commitment to promoting economic growth in the ASEAN region.

In June 2008 the Prime Minister launched an initiative to create a new Asia Pacific
community to cover the full range of challenges facing the region. In December 2009,
after extensive regional consultations, Australia hosted a conference involving over 140
senior government officials, academics and experts from the region to discuss the
initiative.
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 East Asia Summit (EAS)

Australia's close and long-standing engagement in the east-Asian region was bolstered
further when Australia became a founding member of the EAS, with then Prime Minister
John Howard attending the inaugural Leaders' meeting in Kuala Lumpur on 14 December
2005. The Prime Minister, Kevin Rudd, attended the Fourth EAS on 24-25 October 2009.
The EAS brings together leaders from the ten ASEAN countries as well as Australia,
China, Japan, India, New Zealand and the ROK for strategic dialogue and action on key
challenges facing the region. EAS leaders meet annually as part of the ASEAN Summits,
with a number of ministerial and senior officials' meetings held during the year to
progress initiatives agreed by Leaders.

The 16 EAS countries represent collectively 49 per cent of the world's population and
account for almost 30 per cent of global GDP, and the region is expected to see sustained
economic growth. With the 15 other EAS member countries accounting for nearly 60 per
cent of Australia's goods and services export markets, the grouping is of key economic
and strategic importance.

Bilateral relationships with ASEAN member countries

Australia has substantial relationships with many of the individual members of ASEAN.
Australia has signed FTAs with Singapore and Thailand and negotiations are ongoing on
a possible Malaysia-Australia FTA.

Singapore is Australia's largest trade and investment partner in ASEAN. In 2008-09,

goods and services exports to Singapore were valued at $5.5 billion and $3.9 billion
respectively, while goods and services imports from Singapore were valued at $13.4
billion and $4.8 billion. Australia's largest export to Singapore in 2008-09 was crude
petroleum. Singapore is a significant source of foreign investment into Australia, with
total Singaporean investment stock at the end of 2008 valued at $43 billion. In May 2009,
the Prime Minister, Kevin Rudd, visited Singapore to deliver the keynote address at the
Shangri-La Dialogue. In July 2009, Singapore hosted the sixth Singapore Australia Joint
Ministerial Committee meeting, attended by the Foreign, Defence and Trade Ministers of
both countries. Ministers discussed wide-ranging areas of bilateral cooperation, including
in relation to the Memorandum of Understanding on Defence Cooperation signed by
Prime Minister Lee and Prime Minister Rudd in August 2008. In addition, the Trade
Ministers announced the substantive conclusion of the second review of the Singapore
Australia Free Trade Agreement (SAFTA).

Bilateral cooperation with Thailand continues to be enhanced by people-to-people links

through the work of the Australia-Thailand Institute. The Thai economy felt the impact of
the global economic crisis. However, trade and commercial relations with Thailand have
remained robust, with total two-way trade in 2008 reaching over $18 billion. The
inaugural Australia-Thailand Joint Commission on Bilateral Cooperation, co-chaired by
Foreign Ministers Mr Stephen Smith and Mr Kasit Piromya, was held in Perth in May
2009.

Australia's relationship with Malaysia is diverse and underpinned by strong people-to-

people links, notably in education. The Australia-Malaysia Institute was established in
2005 to strengthen further people-to-people and institutional links between Australia and
Malaysia, and to deepen mutual understanding and cooperation. Substantial defence
cooperation takes place through the Malaysia-Australia Joint Defence Program, an
ongoing Australian presence at the Royal Malaysian Air Force Base at Butterworth and
common membership of the Five Power Defence Arrangements. Prime Minister Rudd
visited Malaysia in July 2008 and again in July 2009. Foreign Minister Smith visited
Malaysia in July 2009 to attend the inaugural Australia Malaysia Foreign Ministers’
Forum. In August 2009, the Minister for Trade Simon Crean hosted an Australia
Malaysia Joint Trade Committee meeting. In 2008-09, Australia exported goods and
services to Malaysia valued at $3.7 billion and $1.5 billion respectively, and imported
goods and services valued at $8.3 billion and $1 billion. Negotiations towards a Malaysia
 Australia Free Trade Agreement are ongoing.

Bilateral contacts with the Philippines are growing, particularly within the development
cooperation, counter-terrorism, defence and commercial fields. The Minister for Foreign
Affairs and the Minister for Trade visited the Philippines for bilateral talks in October
2008 and President Arroyo made an official visit to Australia in May 2007. Australia will
provide an estimated $123 million in development assistance to the Philippines in 2009-
10, intended to contribute to economic growth, basic education, national stability and
human security. Bilateral economic cooperation has focused on enhancing opportunities
for Australian businesses in the mining sector as well as enhancing the Philippines’
capacity in sustainable mining development practices.
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Australia's relations with Burma have, for many years, been held back by Burma's
political circumstances. Australia takes all appropriate opportunities to urge the Burmese
regime to work towards genuine democratic reform and national reconciliation, and to
address human rights concerns, both in direct representations to the Burmese regime, and
in regional and international fora, including UN bodies. Australia supports UN
engagement on Burma and works closely with partners in the region to encourage
political reform. Australia maintains pressure on the Burmese regime through financial
sanctions and travel restrictions. Australia made strong representations to the regime over
the conviction of Aung San Suu Kyi in August 2009, and over the ongoing detention of
more than 2000 political prisoners. Australia’s Chargé d’Affaires in Rangoon, together
with the UK Ambassador and the US Deputy Head of Mission, met Aung San Suu Kyi
on 9 October 2009 to discuss sanctions. This was the first opportunity for a substantive
exchange of views by Australian officials with Aung San Suu Kyi since 2003.

The Australia Vietnam Comprehensive Partnership was signed on 7 September 2009, in

Canberra, by Deputy Prime Minister Julia Gillard, and Dr Pham Gia Khiem, Vietnam’s
Deputy Prime Minister and Minister of Foreign Affairs. The signing took place during
the visit to Australia of Mr Nong Duc Manh, General Secretary of the Communist Party
of Vietnam. The Comprehensive Partnership was developed to reinforce the strong
relations between Australia and Vietnam, and to provide a framework around which to
focus and measure bilateral effort. Key areas under the Comprehensive Partnership
include: expanding political ties and public policy exchanges; promoting economic
growth and trade development; ongoing development assistance and technical
cooperation; supporting people-to-people links; building defence and security ties; and
advancing the global and regional agenda.

East Timor (Timor-Leste)

Australia is at the forefront of international efforts to help East Timor become a peaceful
and more prosperous nation. Australia led the International Force for East Timor which
restored security after the August 1999 ballot on East Timorese independence, and
continues to lead the International Stabilisation Force (ISF) which helped restore stability
after unrest in mid-2006. The ISF remains in East Timor in support of the United Nations
Integrated Mission in Timor-Leste. Australia is also supporting the development of East
 Timor’s own defence and police forces. As the largest bilateral aid donor, Australia has
demonstrated a commitment to East Timor’s long-term future development, providing an
estimated $820 million in Official Development Assistance from 1999 to June 2009. The
Prime Minister of East Timor, Mr Kay Rala Xanana Gusmao, paid an official visit to
Australia in August 2008.

South Asia

Australia maintains productive political and economic relationships with the countries of
South Asia. Economic links are dominated by Australia's partnership with India (see
separate entry). We have long standing and good relations with Bangladesh, which is an
important counter-terrorism and security partner for Australia. Australia welcomed the
end of the decades-long conflict in Sri Lanka in May 2009. Australia is committed to
helping Sri Lanka in efforts to resettle displaced population and rehabilitate communities.
Australia’s historic links to Sri Lanka provide potential for greater bilateral engagement,
including through increased trade and investment.

Canada

The Australia-Canada relationship is mature, highly productive and broadly based, and
has its foundations in our historical and cultural links. Trade relations stretch more than
100 years and 2010 will mark the 70th anniversary of formal diplomatic links. People-to-
people contact between our parliaments, government officials, private sectors and
academia is wide-ranging. A comprehensive range of bilateral agreements cover trade,
social security, air services, consular services abroad, mutual assistance in criminal
matters and avoidance of double taxation. Canada is Australia's 21st-largest merchandise
trading partner, with two-way trade amounting to approximately $4 billion in 2008 ($1.5
billion in exports and $2.5 billion in imports).
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In addition to an active trade and investment relationship, Australia and Canada
cooperate closely on international security (including in Afghanistan, where both
countries have troops deployed), counter-terrorism, human rights and environmental
issues. In multilateral forums Canada and Australia, along with New Zealand, work
closely in the UN (in the informal CANZ grouping). As agricultural exporting countries,
Australia and Canada also cooperate in the WTO and as members of the Cairns Group to
work towards freer trade in agricultural products. Canada will host the G20 Summit in
2010.

New Zealand

Australia and New Zealand share a close and diverse relationship, underpinned by
extensive and high-level government-to-government interaction and strong business and
people-to-people linkages. Bilateral meetings between foreign ministers from the two
countries reflect the close foreign policy interests Australia has with New Zealand.
Strategic and defence relations are set out in the Canberra Pact (1944), the ANZUS
Treaty (1951) and the Australia-New Zealand Closer Defence Relations Agreement
(1991).

The trade and investment relationship is underpinned by the 1983 Australia New Zealand
Closer Economic Relations Trade Agreement (ANZCERTA), which creates a free trade
area between the two countries. An annual ministerial meeting addresses ways of further
facilitating the free flow of trade between the two countries. Exports of Australian goods
and services to New Zealand were valued at $9.4 billion and $3.5 billion respectively in
2008. Australia imported goods and services from New Zealand valued at $7.6 billion
and $2.5 billion over the same period. Australia’s major merchandise exports to New
Zealand are crude and refined petroleum, medicaments and motor vehicles. New Zealand
is Australia’s seventh-largest trading partner and third-biggest investment market.

People-to-people contact between the two countries is extensive. Over half a million New
Zealanders live in Australia, while around 65,000 Australians live in New Zealand. The
trans-Tasman Travel Arrangements of 1973 allow Australians and New Zealanders to
visit, live and work in each other’s countries without restriction.

The business-led Australia New Zealand Leadership Forum brings together ministers and
business representatives, academics and other senior community leaders to create an
independent platform for ways to broaden and deepen the bilateral relationship. The
Forum last met in Sydney in August 2009 and involved the two Prime Ministers, 15
ministers and over 100 participants from both countries.

Europe

Australia enjoys close relations with Europe - both with the European Union (EU) and
with individual European countries.

As the world’s largest economy, trader and aid donor, and home to almost half a billion
people, the EU is an important partner for Australia. As a bloc, its 27 member states
constitute Australia’s largest trading partner and largest source of foreign direct
investment. Total two-way trade in 2008-09 was worth $90.2 billion.

In April 2008, the Prime Minister Kevin Rudd and the European Commission (EC)
President José Manuel Barroso jointly committed to a new era of creative, broad-based
engagement between Australia and the EU. They agreed to develop an Australia-EU
Partnership Framework which, since its launch in October 2008, has been the primary
underpinning and driver of the relationship. In its first year the Partnership Framework
delivered substantive outcomes, including the signing of the Australia-EC Wine
Agreement and the EC’s becoming a foundation member of the Global Carbon Capture
and Storage Institute. The second iteration of the Framework, launched in October 2009,
contains new commitments to further enhance cooperation across five broad objectives.
The weblink:
<http://www.dfat.gov.au/geo/european_union/australia_partnership_framework.html>
provides further information.
 Increased high-level contact between the two sides during 2008 and 2009 is evidence of
the strong and growing relationship, with many Australian Ministers visiting the EU and
three European Commissioners visiting Australia. These visits have helped underline
commitment by both sides to work together on a range of pressing international issues,
including in response to the global financial crisis and climate change.

Australia and the United Kingdom share a particularly close and vibrant relationship
based on close historical and people-to-people links, aligned strategic interests and strong
bilateral trade and investment. The strength of the relationship is underscored by regular
high-level contact. A new National Security Partnership was announced in March 2009
by the two countries’ Prime Ministers.
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Bilateral relations with other European countries were enhanced by high-level visits from
Australia in 2008 and 2009, including Ministerial visits to Belgium, Cyprus, France,
Germany, Hungary, Ireland, Italy, Malta, the Netherlands, Norway, Poland, Sweden and
Russia. The Prime Minister’s visit to Berlin in July 2009 significantly enhanced our
relationship with Germany. Attendance by Ministers at Anzac Day commemorations in
Turkey and France in 2008 and 2009; the visit to France by the Governor-General and
Ministers for the 90th anniversary of Armistice Day in 2008; and Ministerial attendance
in 2009 at commemorations of the 70th anniversary of the outbreak of World War II in
Poland underscore the continuing relevance of our shared history. The first State Visit by
an Australian Governor-General to Malta took place in November 2008. High-level
visitors to Australia in 2008 and 2009 included the King and Queen of Spain, the
Presidents of Bulgaria, Hungary and Malta, the Prime Minister of the Former Yugoslav
Republic of Macedonia, and Ministers from Belgium, Cyprus, Estonia, Ireland, Italy, the
Netherlands, Portugal, Slovakia and Turkey. Bilateral agreements signed with European
countries during 2008 and 2009 covered a range of issues, including taxation with
Belgium, health care with Slovenia, and social security with Finland and Poland.

Latin America

Australia’s relationship with the diverse countries of Latin America includes strong
bilateral economic interactions as well as cooperation on multilateral issues of mutual
concern such as UN reform, multilateral trade negotiations, sustainable fishing and
environmental protection. Latin America is an important destination for Australian
investment, primarily in the mining and mining services sectors. Total two-way trade
increased by 40 per cent in 2008 over the previous year to reach over $7 billion. Latin
America is one of the fastest-growing sources of foreign students in Australia, with some
28,400 enrolments from Latin America in 2008. Australia is working to enhance its
bilateral relationships with a number of Latin American countries through initiatives such
as developing a Plan of Action with Brazil for an enhanced partnership, establishment of
a Joint Experts Group with Mexico to investigate ways to strengthen the bilateral
economic relationship, and negotiating an MOU to strengthen trade and investment links
with Colombia. The Australia-Chile Free Trade Agreement came into force on 6 March
2009. Australia will reopen its Embassy in Peru in 2010. The Council on Australia Latin
 America Relations has contributed to advancing Australia’s economic, political and
cultural relations with Latin America since its formation in 2001.

Pacific

Australia values its close historical, political, economic and community links with the
island countries and territories of the Pacific. Australia is the largest provider of
development assistance to the Pacific and is playing an active role in the region in
support of enhanced security, economic reform and good governance.

Australia is a founding member and major donor to a number of key regional

organisations in the Pacific. The Pacific Islands Forum (PIF) is the region’s principal
political institution bringing together the independent and self-governing states of the
Pacific in an annual Leaders’ meeting. The 40th Forum meeting was held in Cairns,
Australia, from 4-7 August 2009. The key themes of the meeting were addressing climate
change, building economic resilience for future growth and strengthening development
coordination. Australia’s Chairing of the Pacific Islands Forum in 2009-10 is a practical
demonstration of Australia’s new approach and commitment to the Pacific as outlined in
the Prime Minister Kevin Rudd’s Port Moresby Declaration of March 2008.

Another outcome of the Forum Meeting was an agreement among Leaders to launch
negotiations for a regional trade and economic agreement, known as PACER Plus.
Australia’s primary motivation for undertaking these negotiations is to improve the
economic outlook for Forum Island countries.
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Australia has also consolidated key bilateral relationships in the region. The 19th
Australia-Papua New Guinea Ministerial meeting, held in Brisbane in June 2009,
attracted 17 ministers from PNG, and eight Ministers and three Parliamentary Secretaries
from Australia. Eight Pacific Partnerships for Development have been signed - with
PNG, Samoa, Kiribati, Solomon Islands, Vanuatu, Tonga, Tuvalu and Nauru. These
Partnerships are designed to provide a framework for achieving progress towards the
Millennium Development Goals, and aim to, for example, improve access to quality
education, combat malaria, and develop infrastructure to improve access to markets and
services.

Australia leads the Regional Assistance Mission to Solomon Islands (RAMSI) which was
endorsed by the PIF and deployed to Solomon Islands in July 2003. The intervention
followed the collapse of law and order and government institutions as a result of ethnic
tensions in Solomon Islands which dated back to the late-1990s. Today, all 16 Forum
members participate in RAMSI. Currently there are 561 personnel (including 362
Australians) deployed to Solomon Islands under RAMSI. RAMSI has seen real
achievements including the restoration and maintenance of law and order, development
of infrastructure projects in rural communities, and progress in telecommunications.
Unfortunately, Fiji’s military regime took a number of backward steps, including refusing
to meet its commitment to hold elections by March 2009 and the abrogation of its
constitution in April 2009. We continued to work with other Pacific Islands Forum
Countries and the international community to press the regime to hold elections and
return Fiji to democracy and the rule of law.

Middle East

The Middle East is an area of global strategic and commercial importance. Australia has
long supported a resolution of the Middle East conflict which recognises the right of
Israel to exist within secure and recognised boundaries and establishes a viable
Palestinian state. Australia has given more than $75 million in development and
humanitarian assistance to the Palestinians since late 2007.

Australia continues to support democracy and stability in Iraq including for the national
election in 2010, the first since 2005. With the cessation of the ADF’s Operation Catalyst
in Iraq on 31 July 2009, Australia’s relationship with Iraq has been focussed on
reconstruction and development, and expanding two-way trade. Since 2003, Australia has
committed over $360 million to reconstruction, rehabilitation and humanitarian programs
in Iraq.

Australia’s commercial interests in the Middle East are expanding, including in

agriculture, manufacturing, metals and services. Australia is negotiating a Free Trade
Agreement with the Gulf Cooperation Council (GCC) (Saudi Arabia, Bahrain, Kuwait,
Qatar, Oman and the United Arab Emirates). The GCC is a key merchandise export
market, and Australia’s largest export market for passenger motor vehicles. Egypt
remains an important destination for Australian tourists, merchandise (wheat, coal and
copper) and investment in mining and resource processing sectors. The Council for
Australian-Arab Relations was established by the Australian Government in 2003 to
strengthen ties between Australia and Arab countries.

Iran’s nuclear program remains of deep concern in the Middle East region and globally.
Australia is working closely with the international community in support of finding a
diplomatic solution to the Iran nuclear issue.

Africa

Australia is strengthening engagement with all African countries and with the African
Union, as the principal body for coordination and integration in the continent. Australia
has a significant presence in the mining sector in Africa: current and prospective
 investment by Australian companies is estimated at $20 billion and Australian companies
are active in 34 of Africa’s 53 countries. Australia’s largest trading partner in Africa is
South Africa.

Australia increased development assistance to Africa by 40 per cent to $163.9 million in

2009-10 focusing on food security, water and sanitation, and maternal and child health.
The Government has increased its scholarship and fellowship program tenfold, expanding
to 1,000 by 2012-13, and established the Australia-Africa Partnerships Facility for
technical assistance cooperation. Australia provides assistance to Zimbabwe for
humanitarian purposes and the restoration of basic services, and maintains sanctions to
encourage positive change. Over the past two years, Australia has provided significant
humanitarian assistance and food aid to the countries of the Horn of Africa. Since 2005
the Australian Defence Force (ADF) and Australian Federal Police have deployed
personnel to the UN Mission in Sudan, and since 2008 the ADF has committed personnel
to the UN African Union Mission in Darfur.
 AUSTRALIA'S SECURITY INTERESTS

Australia attaches high priority to countering the proliferation of Weapons of Mass

Destruction (WMD) and achieving the goal of disarmament.

The International Commission on Nuclear Non-proliferation and Disarmament (ICNND),

a joint initiative of the Australian and Japanese Governments, was established in 2008.
The aims of the Commission are to strengthen the Nuclear Non-Proliferation Treaty
(NPT), reinvigorate the global effort against the proliferation of nuclear weapons and
make practical recommendations to achieve the ultimate goal of a world without nuclear
weapons. The Commission’s first major report was released in December 2009.

Australia works to strengthen adherence to and compliance with the major WMD treaties
- the NPT, the Chemical Weapons Convention, the Biological and Toxin Weapons
Convention and the Comprehensive Nuclear-Test-Ban Treaty.

Australia supports strengthening of the safeguards, safety and security programs of the
International Atomic Energy Agency (IAEA). Through active participation in the IAEA
and other forums, Australia contributes to international efforts to resolve concerns over
the nuclear activities of Iran and the DPRK.

Australia also participates actively in the major WMD export control regimes. Australia
chairs the Australia Group, which aims to coordinate export controls covering dual-use
chemicals, biological materials, technology and equipment. Australia is a member of the
Nuclear Suppliers Group, which aims to prevent civilian nuclear trade from contributing
to nuclear weapons programs, and of the Missile Technology Control Regime (MTCR)
which seeks to prevent the proliferation of unmanned systems capable of delivering
WMD. Australia chaired the MTCR for a year from November 2008. Australia provides
practical technical assistance to regional countries to help them improve export control
measures so they meet relevant international obligations and strengthen national
structures. The Proliferation Security Initiative, which was established to develop
 practical measures to disrupt illicit trade in WMD, is also a core element of Australia’s
counter-proliferation strategy.

Countering the proliferation of certain types of conventional weapons is also a priority.

Australia participated in the ‘Oslo process’ negotiations on banning cluster munitions and
signed the Convention on Cluster Munitions on 3 December 2008. Australia promotes the
effective implementation of the Mine Ban Convention.
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Australia works to counter access to and the effects of illicit small arms and light
weapons, particularly in the Asia Pacific region. Australia is advocating the negotiation
of an arms trade treaty with the aim of establishing international criteria and standards for
the global trade in a range of conventional arms. As a participant in the Wassenaar
Arrangement, Australia contributes to the control of the transfer of conventional weapons
and defence and dual-use goods.

Terrorism in our region and globally threatens the security and safety of Australia and
Australians. Australia is cooperating closely with the international community, bilaterally
and multilaterally, to respond to this security challenge.To facilitate this cooperation,
Australia has concluded 14 bilateral counter-terrorism Memorandums of Understanding
with Turkey, Malaysia, Thailand, the Philippines, Fiji, Cambodia, PNG, Indonesia, India,
East Timor, Brunei, Pakistan, Bangladesh and Afghanistan.

Australia’s counter terrorism cooperation is concentrated in South-East Asia, where we

continue to support regional partners in strengthening their counter-terrorism capabilities
in key areas such as law enforcement, legal frameworks, intelligence, border control and
transport security, defence engagement, terrorist financing and money laundering, and
countering violent extremism. Australia also has strong interests in countering terrorism
in South Asia, particularly in Afghanistan and Pakistan.

Australia also works to build political support and technical capability for more effective
counter-terrorism efforts in regional and multilateral fora. Australia has deepened its
engagement on counter-terrorism efforts with the United Nations and contributes to
capacity building activities sponsored by the ASEAN Regional Forum and the Asia-
Pacific Economic Cooperation (APEC) forum.

Reducing the threat of chemical, biological, radiological and nuclear (CBRN) terrorism is
also an important objective. Australia is an active member of the Global Initiative to
Combat Nuclear Terrorism, including hosting in May 2009 an international seminar and
discussion exercise to promote the safety and security of radioactive materials.
Australia’s practical capacity building work in the region promotes awareness of and
strengthens the security measures around CBRN sources to deter potential access by
terrorists.
 Australia’s alliance with the United States of America is indispensable to Australia’s
strategic, defence and security interests. Australia judges that the continued engagement
and presence of the United States is crucial to the strategic stability of the Asia-Pacific
region. Reflecting shared security interests, the Foreign Ministers of Australia, Japan and
the United States of America held a fourth Trilateral Strategic Dialogue Ministerial
Meeting in New York in September 2009. Australia is also deepening bilateral defence
and security relationships with countries throughout the Asia-Pacific region.

Australia works bilaterally and in regional forums to combat transnational crime. For
example, Australia co-chairs with Indonesia the Bali process on people-smuggling,
trafficking in persons and related transnational crime. The website at
<http://www.baliprocess.net> provides more information.
 AUSTRALIA'S ECONOMIC INTERESTS

Successive Australian Governments have recognised the importance of foreign

investment inflows to expand the economy over the medium- to long-term. Such
investments create new jobs and support existing jobs; boost innovation, research and
development; introduce new technologies and techniques; and promote a competitive
environment within the business sector. Similarly an open, liberal trading environment
provides significant benefits to Australia.

Australia is pursuing an ambitious trade policy agenda, which combines multilateral,

regional and bilateral strategies to open new markets, reduce barriers to trade and
promote Australian goods and services. The government takes a twin-pillars approach to
trade policy. The first pillar is reform at-the-border through trade agreements; the
second is dealing with the behind-the-border issues of structural reform. The Council of
Australian Governments (COAG) Ministerial Council on International Trade facilitates
cooperation between the Commonwealth and state and territory governments on
measures to enhance Australia’s international competitiveness and export performance.

Details of Australia’s trade policies and practices are available at

<http://www.dfat.gov.au/trade>. Trade and economic fact sheets for 175 of Australia’s
trading partners, including summaries of their trade with Australia, are available at
<http://www.dfat.gov.au/geo/fs>.

World Trade Organization (WTO)

Australia has a major stake in maintaining a healthy, rules-based multilateral trading

system. Australia is a strong supporter of the World Trade Organization (WTO), the only
global body overseeing the rules for trade between countries and the premier forum for
multilateral trade liberalisation. Australia’s top trade priority remains the successful
conclusion of the current round of WTO trade negotiations, known as the Doha Round,
which was launched in November 2001. A successful Round would stimulate global
economic growth and create substantial new trade opportunities for Australian businesses
 through global market openings.

Following a period of subdued political engagement on the Round after the breakdown of
talks at the WTO Ministerial Meeting in July 2008, engagement intensified in 2009. The
global economic crisis has underlined the importance of concluding the Round to
safeguard against protectionism and rekindle economic growth through open markets,
particularly for those developing countries most affected by the economic downturn.

The Australian Government supports the WTO’s monitoring of trade and trade-related
measures taken since the beginning of the global economic crisis. The fact that there has
not been a descent into high intensity protectionism emphasises the important role of
multilateral trade rules in preventing protectionism.
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At the G20 Leaders’ Summit in Pittsburgh, Leaders committed to refrain from raising
barriers or imposing new barriers to trade in goods and services. They reaffirmed their
commitment to seek an ambitious and balanced conclusion to the Round in 2010 and
asked Trade Ministers to take stock of the situation no later than early 2010. The
Australian Government is committed to using all opportunities of engagement to achieve
this.

The Australian Government’s objective is to maximise market access for agriculture,

industrial products and services, as well as to reduce trade-distorting subsidies and further
strengthen WTO rules.

With agricultural trade highly distorted by barriers as well as subsidies, Australia has
been a strong voice for reform in the Round, particularly as leader of the Cairns Group. A
coalition of 19 agricultural exporting countries from the Americas, Africa, Asia and the
Pacific, the Cairns Group plays an influential role in the negotiations.

Australia also continues to work in the Round for tangible improvements in market
access for industrial products (including manufactured goods, minerals, energy, forestry
and fisheries). Broad agreement has been reached on the formula for cutting tariffs on
industrial products, but significant differences remain on the need for additional
liberalisation at the sectoral level.

Service industries comprise the largest sector of the Australian economy, accounting for
70 per cent of GDP and employing more than four out of five Australians. Accordingly,
the Australian Government gives high priority to the Doha negotiations on services.
Australia’s main objectives are to make it easier for Australian services providers to
establish operations overseas, for professionals to work temporarily overseas, and to
ensure regulations do not act as unjustifiable barriers to trade.

Given its strong research tradition and need to access new technologies, Australia is
active in the WTO in protecting its intellectual property interests, particularly through the
effective implementation of the WTO's Agreement on Trade-Related Aspects of
Intellectual Property Rights.
 Beyond the Doha Round, Australia uses the WTO in a number of ways to advance its
trade interests. The WTO dispute settlement system enables countries to seek binding
rulings where they consider others are not applying WTO trade rules correctly. It has
removed some of the most distorting global trade practices. Australia also negotiates with
countries seeking to join the WTO to ensure that they make appropriate commitments to
liberalise their markets. Australia contributes to the WTO’s development activities to
assistant developing countries’ fair participation in the multilateral trading system.
Australia participates regularly in a wide range of WTO committee meetings, such as the
Committees on Agriculture and on Regional Trade Agreements.

Asia-Pacific Economic Cooperation (APEC)

APEC has evolved to become the leading economic forum in our region, bringing
together the Leaders of 21 Asia-Pacific economies, including many of Australia’s major
trading partners. APEC economies account for 68.1 per cent of Australia’s two-way trade
in goods and services. Together, APEC economies account for 54.2 per cent of global
GDP, 43.7 per cent of world trade and around 40.5 per cent of the world’s population.
APEC is a major driving force in promoting open trade and investment, sustainable
economic development and prosperity in our region. APEC celebrates its 20th
anniversary in 2009.

Australia plays a leading role in APEC, driving an ambitious agenda to: provide support
and momentum to the multilateral trading system; accelerate regional economic
integration through trade; facilitate trade and investment liberalisation; intensify
structural economic reform; and promote human security and institutional reform.
Australia assisted Singapore in 2009 to drive the implementation of the initiatives set in
train during Australia’s host year in 2007.

Australia is actively involved in efforts to facilitate trade in services, make rules of origin
more ‘business friendly’, enhance trade logistics, conduct analytical work on a possible
Free Trade Area of the Asia Pacific (FTAAP), and implement APEC’s trade and
investment facilitation action plans. It has also contributed substantially to an APEC
initiative to promote expanded trade in environmental goods and services.
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
Australia was instrumental in helping to secure APEC agreement on the fundamental
importance of tackling ‘behind-the-border’ barriers to trade and investment. Australia has
been vocal in APEC on the importance of structural economic reform as a way to boost
growth and productivity, and to insulate the Asia-Pacific region form external economic
shocks. Australia is working with APEC partners to identify how different institutional
frameworks, processes and strategies could help economies successfully achieve reform.

Australia supports APEC’s human security agenda to build resilience to disruptions to

regional prosperity and stability, including from terrorism, disasters and disease.
Australia co-chaired, with Indonesia, APEC’s Task Force on Emergency Preparedness.
Australia announced an additional $1 million contribution for APEC human security
projects in November 2008.
To strengthen APEC’s links with business, Australia provides financial support to
Australia’s APEC Business Advisory Council members - three top Australian business
leaders appointed by the Prime Minister to ensure APEC’s work aligns with business
priorities and generates economic benefits.

Strengthening APEC is a key priority for Australia. In 2008-09, Australia was

instrumental in efforts to create the position of APEC’s first fixed-term Executive
Director, which will provide greater continuity and leadership in the APEC Secretariat in
the coming year.

Australia is working closely with the current and two incoming APEC hosts - Singapore,
Japan, the United States - to ensure that APEC remains ambitious and able to achieve its
immediate and longer-term priorities.

Free Trade Agreements (FTAs)

FTAs promote stronger trade and commercial ties between participating countries, and
open up opportunities for Australian exporters and investors to expand their business into
key markets. They can speed up trade liberalisation by delivering gains faster than
through multilateral or regional processes. FTAs that are comprehensive in scope and
coverage can complement and provide momentum to Australia’s wider multilateral trade
objectives.

Australia has bilateral FTAs with New Zealand, the United States of America (USA),
Singapore, Thailand and Chile, and a regional FTA with ASEAN and New Zealand.

The Australia New Zealand Closer Economic Relations Trade Agreement

(ANZCERTA), Australia’s longest-standing FTA, entered into force in 1983.
ANZCERTA is notable for its comprehensiveness, providing for free trade on all goods
and almost all services. It has underpinned strong growth in trade between the two
countries, with average annual increases of nine per cent during the life of the agreement.

The Australia-United States FTA, which entered into force on 1 January 2005, is a
landmark agreement with the world’s largest economy. It has led to significantly
improved access for Australian industrial and agricultural goods in the USA and has
further harmonised our substantial services and investment relationship.

The Singapore-Australia FTA (SAFTA), which entered into force on 28 July 2003, has
eliminated and bound all tariffs at zero. Australia’s principal market access gains from
SAFTA are through liberalisation of the services sector. The Thailand-Australia FTA
(TAFTA) has been important in underpinning growth in trade. On entry into force on 1
January 2005 it eliminated tariffs on around half of Thailand’s tariff items, accounting for
roughly 80 per cent of Thai imports from Australia. A further 41 per cent of Thai tariffs
will be phased to zero by 2010.
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
The Australia-Chile Free Trade Agreement (FTA), which entered into force on 6 March
2009, is Australia’s first FTA with a Latin American country and is an important
milestone in Australia’s enhanced engagement with that region. The agreement provides
for immediate reduction of tariffs on 97 per cent of goods currently traded on entry into
force. Tariffs on all existing merchandise trade between Australia and Chile will be
eliminated by 2015.

The Agreement Establishing the Association of Southeast Asian Nations (ASEAN)-

Australia-New Zealand Free Trade Area (AANZFTA) was signed in February 2009 and
will enter into force on 1 January 2010. AANZFTA is the largest FTA Australia has
concluded. AANZFTA contains regional rules of origin and substantial tariff reduction
and elimination commitments, as well as World Trade Organization (WTO)-plus
commitments in other areas such as services, which will provide commercially
meaningful benefits to Australian business and further strengthen Australia's commercial
ties with ASEAN.

Australia is currently negotiating seven FTAs - bilateral FTAs with China, Japan, Korea
and Malaysia, and regional/plurilateral FTAs with the Gulf Cooperation Council, the
Trans-Pacific Partnership (TPP) and a new Pacific trade and economic agreement
(PACER Plus). The website at: <http://www.dfat.gov.au/trade/ftas.html> provides more
information about Australia’s existing FTAs and ongoing FTA negotiations.

G20

G20 Leaders met in November 2008 as a first step in a coordinated international response
to the unfolding global economic crisis. A second Summit was held in London in April
2009, and a third in Pittsburgh in September 2009. At the Pittsburgh Summit, Leaders
designated the G20 as the pre-eminent global forum for economic cooperation. This
designation recognises the success of the G20’s coordinated response to the global
economic crisis.

The G20 derives its legitimacy from the balance of its membership. It comprises key
developed and developing countries from all regions of the world: Argentina, Australia,
Brazil, Canada, China, the EU, France, Germany, India, Indonesia, Italy, Japan, Mexico,
Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and the US. Together,
member countries make up about 80 per cent of global trade and more than two-thirds of
the world’s population.

The G20 Leaders’ Summit process emerged out of the Group of 20 Financial Ministers
and Central Bank Governors, which was created in 1999 as a response to the financial
 crises of the late 1990s.

During the three Summits, leaders committed to measures to restore global growth and
jobs via economic stimulus packages, to modernise international financial institutions,
such as the International Monetary Fund and the World Bank, and to build a stronger,
more globally consistent supervisory and regulatory framework. They also agreed to
combat protectionism and to make all efforts to conclude the WTO Doha Round in 2010.
At the Pittsburgh Summit, Leaders also agreed to establish a new framework for strong,
sustainable balanced growth.

The coordinated and substantial policy responses by the G20 over the three Summits has
contributed to a rise in global consumer and business confidence and supported the first
tentative signs of global economic recovery. International trade has started to recover and
industrial output has risen in nearly all G20 economies.

The decision to make the G20 the pre-eminent forum for global economic cooperation
was an historic one for Australia, as it was the first time Australia had secured a
permanent seat at the key international forum for global economic decision-making.

Two G20 Leaders Summits will be held in 2010 in Canada and Korea.

More detailed information of the G20’s decisions can be found at

<http://www.g20.org/pub_communiques.aspx>.

AUSTRALIA'S ENVIRONMENTAL INTERESTS

Australia attaches high priority to the protection, conservation and ecologically

sustainable use of the environment. In international environment negotiations
Australia pursues outcomes that advance its environmental and trade interests in a
mutually reinforcing way.

Climate change

During 2009, Australia continued to play a leading role in promoting global action to
address the adverse effects of climate change in a range of international and
regional forums, including the UN, G8, G20, APEC and the Commonwealth Heads of
Government Meeting (CHOGM). In negotiations under the UN Framework
Convention on Climate Change, the Government called on all major emitters to
commit to mitigation action in a post-Kyoto global agreement. Australia also
continued to pursue action on climate change through bilateral partnerships. As
part of Australia’s International Forest Carbon Initiative, the Government provided
significant assistance to reduce emissions from deforestation and forest
degradation in Indonesia and Papua New Guinea.

Whales

Australia is a global leader in whale conservation and is an active member of the

International Whaling Commission (IWC). Australia has been firm in advocating
reform of the IWC into a modern, conservation-focused organisation and an end to
so-called ‘scientific’ whaling. At the 61st annual IWC meeting in 2009, Australia’s
concept of conservation management plans for endangered whale species was
adopted. The Australia-led non-lethal Southern Ocean Research Partnership was
endorsed by many countries, and Australia obtained commitments for financial and
in-kind support from the United States, France and Argentina. A report on whale
watching prepared jointly by Australia, Argentina, Brazil, Mexico and South Africa
was also widely welcomed, at the IWC meeting, entrenching whale watching as part
of the normal business of the Commission. Discussions are ongoing on the future of
the IWC. Australia is a member of both the Support Group and the Small Working
Group, whose deliberations will assist the IWC Chair in preparing a submission
which will ultimately be put before the full IWC membership for consideration at the
next annual meeting.

Marine biodiversity in areas beyond national jurisdiction

Australia is a recognised world leader in marine conservation and management, and

is concerned about the impact of a range of fishing activities on vulnerable high
seas ecosystems. In 2006, Australia successfully led major efforts in the UN General
Assembly to achieve international agreement on the regulation of bottom fisheries
so as to prevent significant adverse impacts on vulnerable marine ecosystems,
including seamounts, hydrothermal vents and cold water corals, in areas beyond
national jurisdiction. In May 2009, Australia reported to the United Nations the
progress of its implementations on the agreed measures, both as a flag state
through domestic legal requirements and in cooperation with other countries
through regional fisheries management organisations (Conservation of Antarctic
Marine Living Resources, South Indian Ocean Fisheries Agreement and the proposed
South Pacific Regional Fisheries Management Organisation). Australia will continue
to be actively engaged in further negotiations in the United Nations on efforts to
enhance the protection of the world’s marine biodiversity in areas beyond national
jurisdiction.

Tsunami warning mechanisms

The Indian Ocean tsunami of 26 December 2004 had a devastating impact on a
number of Australia’s neighbouring countries. Following the tsunami, Australia has
played a leading role in establishing an Indian Ocean tsunami warning system and
is continuing to develop a comprehensive national warning system. As part of the
Indian Ocean system, Australia’s increased monitoring capacity off the west and
north coast will provide vital regional coverage and early warning. Australia is also
assisting to strengthen the Pacific Tsunami Warning System. The Government has
signed Australian Tsunami Warning System Memorandums of Understanding with
eight Pacific island countries.

AUSTRALIA'S ENGAGEMENT WITH THE UNITED NATIONS (UN)

Australia was a founding member of the UN in 1945 and has been an active
participant in peacekeeping operations and other UN activities. Australia’s core
interests in the UN’s agenda are international security, the environment, human
rights and the Millennium Development Goals. Australia is firmly committed to the
multilateral system, as demonstrated by its membership of over 40 UN
peacekeeping missions since 1947, commitment to nuclear non-proliferation and
disarmament, and Australia’s UN Security Council candidacy for the 2013-14 term.
Australia also has strong interest in the UN specialised agencies dealing with issues
such as agriculture, health, refugees and international nuclear safeguards. Australia
is currently the 13th largest contributor to the UN, contributing $244.05 million to
the UN in 2008-09.

Australia engages actively in the UN system and is represented on the governing

councils of a number of UN bodies, programs and specialised agencies. These
include the International Maritime Organization Council, the Commission on the
Limits of the Continental Shelf, the UN Environment Programme Governing Council
and the World Heritage Committee. Australia is also represented on the United
Nations Commission on International Trade Law, the International
Telecommunications Union, the World Meteorological Organization and the
International Civil Aviation Organization.

AUSTRALIA AND THE COMMONWEALTH

Australia is an active member of the Commonwealth, a voluntary association of 53

countries, which accounts for two billion people, and comprises mostly developing
countries. Australia supports the strengthening of the Commonwealth’s focus on its
core values of democracy, human rights, the rule of law and good governance, as
well as targeted Commonwealth efforts to promote sustainable development and
poverty alleviation. A Commonwealth Heads of Government Meeting was held in
Trinidad and Tobago in November 2009.
AUSTRALIA'S HUMAN RIGHTS POLICY

Australia has a long tradition of supporting human rights around the world and was
closely involved in the development of the international human rights system by
helping draft the Universal Declaration of Human Rights in 1948. Australia takes an
active and constructive approach to improving human rights standards and systems
internationally, including through participation in UN mechanisms for the promotion
and protection of human rights, targeted development assistance programs, and
support for good governance and the establishment of national human rights
institutions. Australia has formal human rights dialogues with China, Vietnam and
Laos.

Australia is an active non-member of the United Nations Human Rights Council and
encourages the Council to play a positive role in the protection and promotion of
human rights internationally. Australia particularly values the Universal Periodic
Review mechanism and the work of Special Procedure human rights experts.

SERVICES TO THE AUSTRALIAN COMMUNITY

Consular services

DFAT provides consular services to Australians travelling overseas and their families in
Australia through its network of overseas missions and honorary consulates (consisting of 160
points of consular service world-wide), the 24-hour Consular Emergency Centre in Canberra and
consular cooperation arrangements with other countries. Consular services include: assisting
Australians who are hospitalised, imprisoned, or require welfare assistance overseas; helping
family members when Australian travellers go missing or die overseas; and coordinating
responses to overseas emergencies affecting Australian nationals. Of the 6,009,033 Australians
who travelled overseas in 2008-09, DFAT provided consular assistance to 35,539 people,
including in several major international crises, the largest of which was the Lebanon conflict.
DFAT’s Smartraveller campaign continued to promote safe overseas travel by Australians. In
2008-09 DFAT issued travel advice updates for 167 destinations on the website at
<http://www.smartraveller.gov.au>. The site received over 26,597,000 page views in 2008-09.

Passport services

DFAT provides secure travel documents to eligible Australians in accordance with the
Australian Passports Act 2005 (Cwlth). The department issued 1,524,945 passports in 2008-09
(compared with 1,531,445 in 2007-08) of which 12 per cent were issued under priority
processing arrangements. The average turnaround time for passport issue was 5.1 days.

In May 2009, the department launched a new generation of ePassport, the N series, Australia’s
most secure and visually sophisticated travel document to date. As at mid-2009, 5 million
ePassports and a total of almost 10 million valid passports (both electronic and standard machine
readable) were in circulation.

DFAT delivers passport services through its network of passport offices in nine cities around
Australia, diplomatic and consular missions overseas, a call centre (the Australian Passport
Information Service) and around 1700 Australia Post outlets contracted to receive passport
applications on the department’s behalf.

The department contributes to international and inter-governmental efforts to promote security of

identity, travel documents and borders. As a member of the International Civil Aviation
Organization, Australia works productively with other countries to develop technical standards
for travel documents.
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Public information services

DFAT provides a range of information services on foreign and trade policy to the Australian
public and media, including through briefings, public presentations and the production of public
affairs material such as brochures, reports and publications. Links to the Department’s recent
publications can be found on the Department’s website.Through public advocacy and cultural
diplomacy programs managed within DFAT and by Australia’s overseas missions, DFAT
promotes an accurate and contemporary image of Australia internationally and a clearer
understanding of Australia’s foreign and trade policies and strategies. These programs are based
on whole-of-government objectives, implemented by posts and supported by biannual inter-
agency meetings held in Canberra (with representatives from 18 federal agencies). DFAT
manages the contract for the Australia Network international television service with a footprint
covering 44 countries throughout the Asia-Pacific region. Detailed information about Australia’s
foreign and trade policies can be obtained from the department’s website at
<http://www.dfat.gov.au>.

Network of Australian diplomatic and consular missions overseas

DFAT manages an extensive network of Australian diplomatic and consular missions abroad,
supporting Australia’s international interests and providing consular and passport services. The
Department’s central office is in Canberra and it maintains offices in all other state and territory
capitals, as well as a passport office in Newcastle and a liaison office on Thursday Island.
Information on the location of overseas embassies, high commissions, consulates and
multilateral missions managed by DFAT can be found in the on-line version of the Department’s
annual report at <http://www.dfat.gov.au/dept/annual_reports>.

Location and number of DFAT staff

As at 30 June 2009, the Department employed 2,226 Australia-based staff, of whom around 24
per cent were posted overseas; an additional 1,577 locally-engaged staff (LES) were employed
by the Department’s overseas missions (graphs 5.1 and 5.2).
 5.1 Location and number of DFAT staff - 30 June 2009

5.2 Location of Australia-based DFAT staff posted overseas - 30 June 2009

AUSTRALIA'S OVERSEAS AID PROGRAM

The objective of Australia’s aid program is to assist developing countries to reduce poverty and
achieve sustainable development in line with Australia’s national interest. Australia’s
development assistance focus on poverty is guided by the Millennium Development Goals
(MDGs), the internationally agreed targets for poverty reduction. The Australian Government
has committed to increase Australia’s official development assistance (ODA) to Gross National
Income (GNI) ratio to 0.5 per cent by 2015-16. In doing so, Australia is committing to an aid
program that is stronger and more effective.

The core principles of Australia’s aid program are:

 accelerating progress towards the MDGs;
 a recognition that while economic growth is the most powerful long-term solution to
poverty, economic growth will not, by itself, deliver fair and stable societies;
  a strong emphasis on the Asia-Pacific, while also increasing our efforts in Africa and
South Asia;
 an emphasis on the power of education to promote development; and
 a commitment to continue to improve effectiveness.

These principles will guide the aid program in delivering sustainable development gains.

The Australian Agency for International Development (AusAID) manages Australia's overseas
aid program on behalf of the Government. AusAID is an administratively autonomous agency
within the Foreign Affairs and Trade portfolio. The aid program's principal focus is on the Asia-
Pacific region. The aid program has an international reputation for flexibility, responsiveness and
effectiveness.

Australia’s aid program was reviewed favourably by the Development Assistance Committee
(DAC) of the Organisation for Economic Co-operation and Development (OECD) in 2008. The
DAC review noted efforts to promote effectiveness, including through the establishment of the
Office of Development Effectiveness (ODE) and the production of the first Annual Review of
Development Effectiveness. Australia is one of only two bilateral donors to produce such a
review on a regular basis.

Responding to the global recession

Dramatic changes have been made to the international landscape over the past year due to the
impact of the global recession. Declines in foreign direct investment, export revenue,
remittances, tourism and other adverse impacts of the recession will reduce economic growth
and, in turn, may unravel progress towards the MDGs. Based on economic growth projections
made in late March 2009, it is estimated that up to 90 million extra people world-wide (62
million in Asia) will live in extreme income poverty in 2009 as a result of the economic
slowdown. This represents not just a slowing but a reversal in the global extreme poverty
reduction trend since 2005, with the global number of extreme income poor rising to over 1.2
billion people in 2009.

The objective of Australia’s aid response to the global recession is to maintain progress towards
the MDGs and to support early, sustainable recovery. Priority has been given to generating
employment and restoring growth; supporting delivery of basic services, such as health care and
education, to the poor; and helping the vulnerable.

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Generating employment and restoring growth

Increased efforts to generate employment will be an essential component of an effective response

to the global recession in almost all developing countries. Keeping people in work, even on
minimal incomes, helps to maintain essential household purchases and promotes social stability,
especially in countries where systems of social protection are weak.

The employment generation impacts of existing aid programs in infrastructure and enterprise
development will be boosted significantly by 2009-10 budget initiatives in rural development
and food security and economic infrastructure. Emphasis will be given to labour-intensive public
works programs, such as road maintenance, especially in regional areas, where alternative
employment opportunities are scarce. Programs to increase employment opportunities will be
targeted to groups most affected by the recession, such as women in export-oriented industries or
rural youth. Australian support for technical and vocational training will also continue to be
expanded.

Sustaining investment in infrastructure, including maintenance, is also critical to avoid

exacerbating future infrastructure bottlenecks which will lengthen the impact of the recession
and slow economic recovery.

Established and successful programs of support in economic governance in the Asia-Pacific

region have positioned Australia well to assist developing country partners to implement
structural changes that will better prepare them for economic recovery and increase their overall
resilience to future economic shocks. Potential areas for increased support may include efforts to
promote private sector activity, including privatisation of poorly performing state-owned
enterprises, increased tendering of inefficient government services such as road maintenance and
wider efforts to improve the business-enabling environment.

Supporting service delivery

As government revenues decline it will be important to focus limited resources on essential

health, education, and economic infrastructure services. Australia will assist partner countries to
assess fiscal gaps, re-prioritise expenditures and improve the quality of budgeting and
expenditure management. Budget initiatives in 2009-10 to increase the use of performance-
linked aid and improve transparency and accountability in government will support partner
country efforts.

There is likely to be greater demand for basic public health services at the community and
facility level with less ability to pay out-of-pocket expenses. Australia will work with partner
countries to ensure aid spending is effectively targeted towards minimising recession impacts on
the delivery of essential services. Appropriate actions to support maintenance of basic health and
education services may include increased school-based grants, fee relief, and funding to maintain
essential pharmaceutical supplies to health centres.

Helping the vulnerable

The impact of the global recession is being felt differently in different countries. The most
vulnerable groups include:
 those just above the poverty line who have limited access to alternate sources of income
in an economic downturn;
 children of poorer households who may suffer malnutrition, be subject to neglect or
violence or who may need to leave school to seek work;
 those engaged in trade-exposed industries;
 poor pregnant women, newborn babies and infants who may have less access to
appropriate medication and nutrition; and
  marginalised groups, such as ethnic minorities, the rural poor and people with disability.

Australia will work with partner governments, civil society groups and other development
partners to improve the quality and timeliness of vulnerability assessments particularly in the
Asia-Pacific region. To support those most at risk of falling into extreme poverty and avoid the
risks of life-long ‘poverty traps’ social protection programs may include:
 conditional cash transfer programs, such as payments made to parents for children
attending school;
 nutrition and feeding programs in schools or for pregnant and lactating women and
infants; and
 micro-insurance programs to support informal sector livelihoods.
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Economic Growth

The global economic slowdown demonstrates clearly the link between broad-based economic
growth and sustained improvements in the lives of the poor. In 2009-10, a range of new
initiatives will support accelerated economic growth, through investments in rural development,
microfinance and infrastructure development.

Rural development

Global population growth of one per cent per year, increased consumption and the diversion of
food crops for biofuel production and for intensive feeding of livestock, have all increased the
total global demand for food, resulting in food shortages in particular countries. According to the
United Nations, there are currently close to one billion malnourished people globally. Changes in
climatic conditions, soil degradation, scarcity of arable land, a decline in the standard of rural
infrastructure and use of outdated agricultural practices have affected the global community’s
capacity to respond.

Over 90 per cent of the poor in East Asia and the Pacific live in rural areas with most dependent
on agriculture and fisheries for their livelihoods. A decrease over the past several decades in
investments in agriculture and agricultural research and development has compounded the
problems in developing countries of food insecurity and persistent rural poverty.

Australia’s response to this problem includes both short and medium-term investments to support
increased agricultural productivity, better functioning of rural markets, trade reform, improved
fisheries management and removal of barriers to rural private sector growth. Direct spending on
rural development is estimated to be $230 million in 2009-10, or approximately six per cent of
total ODA. This includes the first year of the new initiative Food Security through Rural
Development ($464 million over four years) introduced in the 2009-10 Budget.

Increased funding will build on successful current large-scale program support (such as
agricultural livelihoods training in 45 provinces of Vietnam) as well as smaller-scale projects
(such as assisting local farmers in the Solomon Islands to identify better performing varieties of
subsistence root crops).
Microfinance and financial services

In 2009-10, the Australian aid program will facilitate economic growth through expanded
support for microfinance activities in both urban and rural areas. This will enable poor people,
who commonly lack collateral or are considered too costly to serve, to access affordable small-
scale financial services such as deposits, loans, remittance transfer systems and insurance. New
assistance will support activities in the Pacific, Papua New Guinea and East Timor, and Africa
and West Asia, including Afghanistan and Iraq. In this work Australia will draw on partnerships
with non-government organisations (NGOs), regional network organisations and the private
sector. Financial support for the Consultative Group to Assist the Poor, a World Bank policy and
research body which disseminates best practice advice on microfinance will continue.

Infrastructure

Poor infrastructure is a major constraint to economic development and achievement of the

MDGs. Conversely, infrastructure investment has a demonstrated positive impact on economic
growth and poverty reduction. Reliable transport infrastructure improves access to services and
markets, encourages entrepreneurial activity and promotes economic integration. Improved water
and sanitation services help reduce water-borne and vector-borne diseases. Information and
communication technology promotes broad-based growth through greater integration of markets
and economies. Reliable and affordable energy supplies promote agricultural and private sector
development and improve living standards in poor households.
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Two-thirds of people globally who are without reliable access to clean water live in the Asia-
Pacific region. Of the region’s 3.8 billion people, over half do not have access to sanitation, and
an estimated one billion people still lack electricity.

Australia’s direct spending on infrastructure and water and sanitation will increase to over $560
million in 2009-10, or approximately 15 per cent of total ODA, up from $350 million in 2007-
08. This includes the first year of the new Economic Infrastructure Initiative ($454 million over
four years) introduced in the 2009-10 Budget. Increased funding will help partner governments
maintain and enhance investments in essential infrastructure, while generating jobs and
improving service delivery, in response to the unfolding global recession. Major components of
infrastructure assistance in 2009-10 will comprise support for transport (45 per cent of total
infrastructure expenditure), water and sanitation (30 per cent) and energy sector development (12
per cent).

Australia’s support for transport infrastructure focuses on improving access to markets and
essential services. Major programs are underway in Indonesia, the Philippines, the Greater
Mekong sub-region, East Timor, Papua New Guinea and the Pacific.

Education
The number of children enrolled in primary school worldwide has risen from 647 million to 688
million over the six year period from 2000. However, there are still 75 million children of
primary school age who are not enrolled. Over 27 million of these children live in Asia and the
Pacific. Children who miss out on a full basic education are overwhelmingly poor, female, living
in remote locations, from ethnic minorities or with disability.

The Australian Government recognises the power of education as an investment that helps
individuals achieve their potential and societies to be stronger and more productive. Investments
in education will increase to over $690 million in 2009-10, or approximately 18 per cent of total
ODA. Approximately one third of education sector expenditure relates to strengthening higher
education and the provision of development scholarships. The majority of education expenditure
relates to basic education and education system strengthening. Support for technical and
vocational education currently comprises about nine per cent of total education expenditure.

In 2009-10 Australia will strengthen national education systems in Indonesia, Papua New
Guinea, the Philippines, East Timor, Bangladesh, Fiji, Vanuatu, Samoa, Kiribati and Laos.
Programs are tailored to partner country circumstances and priorities. They include provision of
quality teaching and learning materials; teacher training; the use of school-based grants; and
support for education sector governance and the construction and refurbishment of schools and
classrooms; improved information systems, education planning, budgeting and management.

Australia’s education assistance will also reach the disadvantaged and marginalised, including
through the provision of more equitable access to quality education for girls and boys with
disabilities, and those in disadvantaged Muslim and Indigenous Peoples’ communities in the
Philippines. In collaboration with UNICEF, Australia will support improved education for
disadvantaged communities in Papua, in Indonesia. In the Pacific, Australia will continue to help
develop livelihood skills through existing and new programs in Tonga, Kiribati, Samoa and Fiji.
The Australia-Pacific Technical College, which has campuses in Fiji, Samoa, Papua New Guinea
and Vanuatu, is on track to deliver 3,000 graduates (trained to Australian standards) by June
2011.

Scholarships

Through the Australian Development Scholarships program, Australia provides around 1,000
new scholarships annually in tertiary and higher education. This is projected to increase to an
estimated 1,500 by 2011. In addition, approximately 2,500 Australian Leadership Awards will be
offered in the period to 2011, involving scholarships and fellowship placements with Australian
host organisations. As part of Australia’s overall increase in aid to Africa, Australia will help
build Africa’s human resource capacity through a significantly expanded scholarships program
which will include technical and vocational training.

In the Pacific, Australia is supporting enhancement of regional education institutions. As part of

Australia’s investment in improving Pacific public sector capacity over the next four years,
Australia will provide 20,000 training opportunities for Pacific public servants to improve core
writing, accounting and administrative skills; 2,000 leadership development opportunities for
strongly performing senior and middle level public servants, in areas such as policy development
and people management; and more than 100 Australian Government scholarships or fellowships
offered each year for promising public servants working on priority issues.
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Health

In the Asia Pacific region, approximately a quarter of a million women die annually of
preventable and treatable complications in pregnancy and childbirth; close to four million
children die before their fifth birthday; and five million people are living with HIV. In the
Pacific, non-communicable diseases such as diabetes and heart disease are now a major cause of
adult mortality. In Solomon Islands and Vanuatu, malaria incidence is among the highest in the
world outside Africa.

Australian support for health and HIV activities will increase to over $595 million in 2009-10, or
approximately 16 per cent of total ODA. Major categories of health sector expenditure are
prevention, treatment and care with respect to control of sexually transmitted infections (STI)
and HIV, support for basic health care, and strengthening and improvement of health systems.
Large health sector support programs are underway in Papua New Guinea, Indonesia, and the
Solomon Islands. New health programs have been established in Pakistan, Bangladesh, Vietnam,
Cambodia and East Timor. In Africa, Australia will broaden its assistance for maternal and child
health. At the global level Australia is contributing to innovative funding approaches, including
to the Global Alliance for Vaccines and Immunisation (GAVI) which is providing greater access
to the benefits of immunisation.

Improving maternal and child health will remain a priority, including through increasing access
to family planning services, increased numbers of skilled birth attendants and the use of health
performance incentives to ensure services reach vulnerable groups. Australia will also provide
additional funding of up to $15 million over four years through United Nations agencies,
bilateral programs and Australian NGOs for family planning and reproductive health activities to
help reduce maternal deaths.

HIV

Globally, there are 33.2 million people living with HIV. In the Asia-Pacific region, there are
nearly half a million new infections and 300,000 deaths each year. HIV is having an increasingly
human and economic impact on our nearest neighbour, Papua New Guinea where there are
approximately 60,000 people living with the disease and an estimated 3,730 children were
orphaned by HIV in 2007 alone. It is estimated that, without additional action, infection rates
will increase from just over two per cent of the population now to five per cent within the next
four years. Rates of infection in the neighbouring provinces of Papua and West Papua in
Indonesia are approximately 2.4 per cent and also growing rapidly.

In 2009-10 expenditure on programs to address HIV will increase to an estimated $160 million.
This includes a further $46.5 million contribution to the Global Fund to Fight AIDS,
Tuberculosis and Malaria. This contribution supports performance-based grants for country-
driven programs, to reduce the burden and impact of HIV, tuberculosis and malaria. The
principal geographic focus for Australia’s HIV support will be the Asia-Pacific region,
particularly in Papua New Guinea, East and South Asia and Pacific Island countries.

Australia’s HIV-related international development assistance will support partner countries to:
 intensify HIV prevention;
 optimise the role of health services within HIV responses;
 review legal and policy frameworks to enable effective responses to HIV;
 build the evidence base for an effective HIV response; and
 demonstrate and foster leadership on HIV.
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Governance: Enabling sustainable development

Building capacity for effective economic and public financial management is critical for
development, attracting investment and ensuring that public resources are used sustainably and
targeted to areas of need. Governance includes more than the institutions of state. Effective
governance occurs when government, the private sector, civil society organisations and citizens
work together to identify needs, find solutions and deliver services. Effective governance
includes a commitment to combat corruption and improve transparency and accountability in
government. Corruption is a primary impediment to sustainable growth and improved service
delivery, leading to under-investment in public goods and entrenched inequality.

Australia is committed to work at all levels of society in partner countries to support

improvements in government capability, responsiveness to citizen needs and accountability.
Spending on governance constitutes the largest proportion of the aid program, reflecting the
importance of effective governance to improved service delivery, economic growth and social
stability. In 2009-10 governance-related ODA will total approximately $820 million or 22 per
cent of total ODA.

Economic governance and public sector reform are heavily interdependent. Two priorities for the
Australian aid program from 2009-10 will be improving public financial management and
working with sub-national levels of government in partner countries. This work will respond to
challenges emerging from the global recession in developing countries such as shrinking
revenues and increased demand for government services. Assistance will include increasing the
capacity of government systems, through tailored training programs, placement of Australian and
other experts with partner country governments, and encouraging the adoption of best-practice
systems of performance improvement such as Public Expenditure and Financial Analysis.

In many countries in which the Australian aid program works, basic services such as education
and health are delivered by sub-national levels of government. From 2009-10 Australia will
provide increased support to strengthen government systems and processes for the delivery of
basic services at national and local levels through improved regulatory, legislative and policy
frameworks. This includes the first year of the new Improving Responsiveness and
Accountability in Government Initiative ($136 million over four years) introduced in the 2009-
10 Budget.

Australia will continue to support engagement between communities and government, to

improve the ability of citizens to participate in making decisions that impact upon their lives.
Programs to support the role and build the capacity of civil society organisations to monitor, and
in some instances deliver, services will be developed and strengthened. In 2009-10, work will
continue to strengthen Pacific media to provide citizens with greater access to information and
increase government accountability.

Performance-linked aid

Performance-linked aid is the provision of additional assistance to partner governments and

agencies to recognise progress in achieving identified policy or administrative reforms or
improvements in specific development outcomes. Early evidence from the use of performance-
linked aid indicates that it has helped partner governments to set and implement effective policy
and can be a powerful instrument for reform - provided there is local ownership and clarity
around performance measures. Australia will invest $336.1 million over four years to enable the
inclusion of significant performance-linked aid elements within the new Pacific Partnerships for
Development and the expansion of existing performance-linked aid arrangements in Asia.

Equitable development

The Australian Government is committed to equitable development, with the gains and benefits
of development assistance available to all.

Gender equality

Addressing gender inequality and supporting women’s full participation in economic, social and
political life are priorities for Australia’s aid program. Gender inequalities are most visible in
women’s access to education, health services, economic opportunities and political participation.
Women are also far more likely than men to be the victims of violence. Despite recent progress
in South Asia, only 85 girls for every 100 boys are enrolled in secondary school, and women and
girls remain at a distinct disadvantage in attending school and acquiring literacy skills. In East
Timor, maternal mortality is estimated at 660 per 100,000 live births, one of the highest rates in
the world. The Pacific has the lowest rate of female membership of parliaments in the world (2.5
per cent) and is the only region in which women’s formal political participation has stagnated.
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Gender disparities have clear social and economic costs. In the Asia-Pacific region, it is
estimated that up to US$47 billion per year is lost due to restrictions on women’s access to
employment opportunities and up to US$30 billion due to gender gaps in education. Violence
and the fear of violence severely limits the contribution of women to development and causes
lower worker productivity and income, escalating costs in healthcare, social services and
policing, disability and lower rates of accumulation of human and social capital.

Australia is working to narrow the gender gap by targeting direct assistance to reduce violence
against women and improve economic opportunities for women, as well as enhancing their
participation in decision-making. Australia will increase its support for the United Nations
Development Fund for Women (UNIFEM) ($16.1 million over the next three years) in support
of UNIFEM’s work in over 100 countries to reduce women’s poverty and exclusion, end
violence against women, reverse the spread of HIV among women and girls and support
women’s leadership in governance and post-conflict reconstruction.

In partnership with UNIFEM Pacific, Australia will provide $6.2 million over five years to train
women at a local level for leadership and governance roles in the Pacific. Research to be
undertaken on the barriers and successful pathways to women’s leadership in the Pacific region
will help shape future assistance.

Helping people with a disability

People with disability are among the poorest and most vulnerable in developing countries. They
are more likely to be excluded from education, health services and employment, than others in
their communities. Eighty per cent of the 650 million people living with disability world-wide
are in developing countries. Disability can lead to significant economic impacts on families and
communities, with an estimated 25 per cent of households affected.

It is believed that, in Asia, at least half the causes of disability can be prevented. One-third of
people with disability are children, two-thirds of whom have preventable impairments. The costs
globally of blindness and low vision in 2000 were estimated to be US$42 billion. Without a
decrease in the prevalence of blindness and low vision, it is projected that total annual costs
would rise to US$110 billion by 2020. Road traffic accidents cost developing countries up to
US$100 billion each year, a figure equivalent to almost twice as much as total global ODA.

The specific needs and priorities of people with disability are considered across all phases of
Australia’s development assistance. Efforts will focus initially on reducing preventable
impairments in two areas; avoidable blindness and road safety. An Avoidable Blindness Fund
has been established to strengthen eye health and vision services in Cambodia, Papua New
Guinea, Solomon Islands and Vanuatu. Australia is also working with members of Vision 2020
Australia to support Vietnam’s Prevention of Blindness strategy and with the New Zealand
Agency for International Development (NZAID) to expand the number of eye health workers in
the Pacific, Papua New Guinea and East Timor. Increased support will also reduce impairments
caused by traffic accidents, building on Australia’s existing support for the World Bank’s Global
Road Safety Facility.

Environmental sustainability

Addressing environmental and climate change challenges is central to poverty reduction.

Expenditure on environment and climate change programs in 2009-10 is estimated to be over
$170 million, approximately five per cent of total Australian ODA. Australia’s development
assistance to the environment sector to date has focused primarily on: supporting adaptation to
climate change; greenhouse gas mitigation through reduced deforestation and forest degradation;
and multilateral environment funds.

Supporting developing countries to implement lower carbon growth strategies is an increasing

focus for Australia’s development assistance. Australia has made a pledge of $100 million over
three years to the World Bank-administered Clean Technology Fund, which finances large-scale
and innovative approaches to the demonstration and deployment of low carbon technologies in
high-emitting developing countries.

Australia will continue to expand efforts to address the impacts of climate change with funding
of $150 million over three years from 2008-09 to address high priority adaptation needs in
vulnerable countries in Asia and the Pacific. Support to partner countries in 2009-10 will
include: scientific research to better understand the impacts of climate change on the natural and
socio-economic systems of Pacific Island countries; vulnerability assessments to help Pacific
Island countries formulate appropriate adaptation strategies and plans; and specific assistance to
help country partners adapt to the immediate impacts of climate change.

The International Forest Carbon Initiative ($200 million over five years from 2007-08) is
supporting cost effective abatement of global greenhouse gas emissions by improving the
management of tropical forests in developing countries. Under the Kalimantan Forests and
Climate Partnership for example, the first large-scale Reducing Emissions from Deforestation
and Degradation (REDD) demonstration activity of its kind is being planned in Indonesia. In
2009-10, Australia will work with Indonesia to develop a second REDD demonstration activity
and a national carbon accounting system.
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Human security and stability

Conflict, insecurity and humanitarian crises undermine development progress and future growth
prospects through the destruction of local communities, livelihoods, institutions and
infrastructure and places pressure on fragile government systems. Emerging global issues,
including the closely-linked concerns of climate change, food and resource insecurity, and
protracted displacement are potential causes of increasing poverty and human insecurity.

Australia provides assistance to over 30 humanitarian and protracted emergency situations

worldwide each year. The increasing frequency and ferocity of natural disasters and greater
public awareness of their impact is leading to greater emphasis on disaster preparedness and risk
reduction in an effort to mitigate the worst humanitarian effects of such disasters.

Australia will continue to contribute to international responses to humanitarian crises, taking a

leadership role in response operations in the Asia-Pacific region where this is appropriate.
Australia will also take an active leadership role in policy dialogue and advocacy in international
fora such as in the role of chair of the United Nations Office for Coordination of Humanitarian
Affairs (UNOCHA) Donor Support Group. Increased coherence in addressing issues of human
security and stability will be achieved through a new Crisis Prevention, Stabilisation and
Response Group in AusAID.

In 2009-10 humanitarian, emergency and refugee-related expenditure is estimated to be $350

million or approximately nine per cent of total Australian ODA. Australia will continue to strive
to increase the effectiveness of humanitarian action through improved donor coordination,
strengthened accountability and support for global response mechanisms, in particular the World
Food Programme, the United Nations High Commissioner for Refugees (UNHCR), the
International Red Cross Movement, and the United Nations Central Emergency Response Fund
(UNCERF).
Australia’s emergency response is supported by effective disaster risk reduction, aimed at
strengthening partner countries’ capacities to respond to disasters. In 2009-10 Australia will
work with the United Nations International Strategy for Disaster Reduction, the World Bank’s
Global Facility for Disaster Reduction and Recovery, partner governments, and NGOs to
strengthen prevention, mitigation and preparedness efforts.

Following from the Australian Prime Minister’s and the Indonesian President’s announcement in
November 2008 at the Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting, work will
continue in 2009-10 to implement the Australia-Indonesia Facility for Disaster Reduction ($67
million over five years). The facility is delivering; training and outreach; risk and vulnerability
modeling; and research and analysis in disaster risk reduction, to benefit Indonesia, other
countries in the region and regional organisations such as the Association of South East Asian
Nations (ASEAN).

Country and regional programs

Details of assistance for individual major partner countries/regions in 2009-10 are summarised
below, along with levels of total Australian ODA from all agencies and programs to each
country/region.
Back to top
Papua New Guinea and Pacific ($1138.4m)
 Papua New Guinea ($414.3m) - provide better access to markets and services, promote
faster progress towards universal basic education, improve health outcomes, strengthen
the public service, and improve governance and nation building.
 Solomon Islands ($246.2m) - improve service delivery, economic livelihoods, economic
infrastructure and address economic challenges. Through the Regional Assistance
Mission to the Solomon Islands (RAMSI) contribute to safer and more secure Solomon
Islands, contribute to better functioning government and improve the standard of living
for Solomon Islanders.
 Vanuatu ($56.3m) - increasing access to and quality of education, improve access to
basic health services for rural communities; assist with government and law and justice
reforms.
 Fiji ($35.4m) - provide social protection and financial inclusion measures, support health
and education systems, and partner with civil society and regional organisations to
improve governance.
 Tonga ($21.3m) - improving public financial and economic management, improve access
to primary health care, improve technical and vocational skills and develop infrastructure
through the Pacific Regional Infrastructure Facility.
 Samoa ($32.4m) - promote private sector growth and employment, improve health,
education and governance, and provide climate change assistance.
 Kiribati ($17.7m) - improving basic education, develop workforce skills and improve
growth and economic management.
 Other Pacific (including Tuvalu, Nauru, Micronesia, Cook Islands, Niue, Tokelau
and regional) ($314.8m) - through regional programs supporting stronger broad-based
 growth; more effective, accountable and democratic government; improved law and
justice and security; and enhanced service delivery. Through other bilateral programs
including supporting budget reforms, targeted scholarships and selected trust funds.

Indonesia and East Asia ($1072.4m)

 Indonesia ($452.5m) - promote sustainable growth and economic management, improve
service delivery, improve democracy, justice and good governance and improve peace
and safety.
 Philippines ($123.0m) - support will focus on improved basic education, promoting
national stability and human security and supporting economic growth.
 Vietnam ($105.9m) - assistance will focus on strengthening the governance of the
institutions required for a competitive market economy, improving infrastructure,
improving water and sanitation, providing climate change assistance and building
government and private sector capacity.
 Cambodia ($61.4m) - assistance will focus on alleviating rural poverty, improving health
outcomes, supporting sustainable economic and natural resource management and
strengthening the law and justice sector.
 Laos ($36.0m) - increase access to quality basic education, support trade and investment
reforms, integrate livelihood development through programs addressing food-security
and income generation, and build government and private sector capacity.
 East Timor ($117.0m) - expand support to improve health outcomes, enhance support
for rural employment, improve public financial management and improve security.
 Burma ($29.1m) - through UN and international agencies support the basic needs of
Burma’s poor and vulnerable populations and continue to assist communities affected by
Cyclone Nargis.
 China ($37.0m) - policy engagement on governance, environment and health.
 Mongolia ($6.4m) - provide scholarships to assist the Mongolian Government achieve its
Human Resource Development goals.
 East Asia Regional ($104.1m) - supporting regional economic integration and
strengthening regional institutions.
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Africa ($163.9m)
 Africa ($163.9m) - support Africa’s achievement of the MDG’s through assistance to
selected countries in sectors such as food security, maternal and child health, and water
and sanitation. Contribute to humanitarian assistance in close coordination with other
donors, and support the reintegration of Zimbabwe into the international community.

South Asia, and Other ($155.3m)

 Bangladesh ($61.2m) - improving livelihoods of the rural poor, increased support for
education, increased support for health services, and improving water and sanitation
services.
  Sri Lanka ($35.6m) - humanitarian support, community rehabilitation, livelihood
development and peace building, along with education, health and natural resource
management.
 India ($13.7m) - support agriculture research and build linkages focused on sustainable
development between Australian and Indian institutions, continue support for reducing
the impact of HIV and AIDS.
 Nepal ($15.8m) - improve health service delivery by funding UNICEF programs,
strengthen governance and support community participation, support education and
provide support to the UN Development Program to support micro-enterprise and
employment generation.
 Maldives ($3.7m) - provide support through scholarships, post-tsunami reconstruction
and governance activities.
 Bhutan ($4.8m) - provide support through scholarships, small-scale governance and
education activities.
 South Asia Regional ($20.5m) - continued support to regional development issues
including climate change, water and sanitation, HIV and AIDS, health, education, and
regional integration. Assistance will be delivered through regional partners including the
Asian Development Bank, World Bank, Joint UN Programme on HIV/AIDS, and
UNICEF.

Central Asia and Middle East ($224.5)

 Pakistan ($58.8m) - support maternal and child health, support basic education, continue
humanitarian relief and reconstruction, support agriculture and rural development and
provide tertiary scholarships.
 Afghanistan ($88.7m) - improve agriculture and rural development, support basic
service delivery, strengthen local government and promote community capacity, assist
vulnerable populations through multilateral agencies and support reconstruction
activities.
 Iraq ($44.7m) - strengthen agricultural productivity and food security through programs
under the Australia-Iraq Agricultural Partnership, support improved governance and
public sector capacity, and support vulnerable populations by re-establishing essential
services.
 Palestinian Territories ($32.3m) - support the implementation of the Palestinian Reform
and Development Plan, protect vulnerable groups particularly woman and children
through improving access to basic services in partnership with Australian NGOs and
improve health and education services for Palestinian refugees.

Global programs

Humanitarian, emergency and refugee programs

The objectives of the Australian humanitarian program are to save lives, alleviate suffering, and
maintain human dignity during and in the aftermath of man-made crises and natural disasters.
The program also aims to prevent and strengthen preparedness for the occurrence of such
situations. Humanitarian, emergency and refugee programs in 2009-10 amount to $299.8m. This
includes $16.0m to support the International Committee of the Red Cross in playing its key role
responding to conflict and meeting the needs of conflict and crisis-affected populations.

Multilateral engagement

Australia will continue to work closely with international financial institutions to increase their
focus on the Asia-Pacific region, as well as supporting global development efforts. Estimated
2009-10 funding for multilateral institutions through replenishments is $259.8 million. Estimated
2009-10 funding for UN, Commonwealth and other international organisations amounts to
$205.9 million, continuing support to core UN agencies and major international organisations
with proven track records to deliver priority development outcomes in the Asia-Pacific region.

BIBLIOGRAPHY

WEBSITES

Department of Foreign Affairs and Trade (DFAT), last viewed December 2009,
<http://www.dfat.gov.au>

AusAID, last viewed October 2009, <http://www.ausaid.gov.au>

Australian Centre for International Agricultural Research (ACIAR), last viewed

October 2009, <http://www.aciar.gov.au>

Australian Safeguards and Non-Proliferation Office (ASNO), last viewed December

2009, <http://www.asno.dfat.gov.au>

Australian Trade Commission (Austrade), last viewed December 2009,

<http://www.austrade.gov.au>

Export Finance and Insurance Corporation (EFIC), last viewed December 2009,
<http://www.efic.gov.au>
Defense
INTRODUCTION

This chapter was contributed by the Australian Government Department of

Defence (November 2009).

The Australian Defence Organisation is made up of over 90,000 personnel across

the Australian Defence Force permanent forces, Reserve forces, and civilian
employees. The operational tempo of the Australian Defence Force (ADF) has been
high over the past year, with a peak contribution of over 3,500 personnel serving on
18 deployments around the world. The skill, courage, and integrity of our service
men and women has been exemplary, evoking the finest traditions of the ADF. The
awarding of the Victoria Cross to Trooper Mark Donaldson in January 2009, the first
Australian in almost 40 years to receive the award, was a fitting recognition for his
outstanding bravery and courage.

This chapter provides an overview of the roles and activities of Defence. In

particular, it focuses on the strategic environment, current operations and
capability. The chapter also shows trends in Defence spending, and looks at the
composition of the workforce.

The information contained in this chapter was the most recent available at the time
of preparation. Where available, further and more up-to-date information can be
found on the Defence website, <http://www.defence.gov.au> or from the
references listed in the bibliography at the end of this chapter.

THE WHITE PAPER

On 2 May 2009, the Prime Minister, the Hon Kevin Rudd MP, launched in Sydney the
Defence White Paper: Defending Australia in the Asia Pacific Century:
Force 2030. This is the first White Paper in over eight years, with previous
papers delivered in 1976, 1987, 1994 and 2000.

The White Paper affirms the Government’s commitment to the defence of Australia,
the security and stability of the regional security environment, and a rules-based
global security order. It confirms the centrality of the alliance relationship with the
United States and reaffirms Australia’s commitment to the United Nations system.

The White Paper notes the increasing uncertainty of the strategic environment and
better positions Defence to respond to conflicts, contingencies and humanitarian
and disaster relief activities in that future environment. It states that Australia’s
military strategy will be predominantly a maritime one where we will seek to control
the air and sea approaches to Australia, if necessary by defeating hostile forces in
their bases or staging areas, or attacking them in transit.

The key long-term force structure choices made by the Government are to double
the number of submarines by building 12 new boats in South Australia, build a new
class of frigate that will be optimised to detect and destroy submarines, provide
more than 1,100 new combat vehicles to the Army as well as increasing its general
firepower, mobility and survivability, and equip the Air Force with around 100 F-35
Joint Strike Fighters.

THE STRATEGIC REFORM PROGRAM (SRP)

The past year has also signalled the start of significant, deep and holistic reform in
every part of Defence.

The SRP is the most far reaching reform ever undertaken by Defence. It involves
improvements to many areas of Defence, from strategy planning and development
to procurement and services reform. The SRP is a long-term program, a decade long
campaign, that will change Defence culture and deliver sustainable improvements
in the way Defence conducts business.

As a result of the SRP Defence will deliver gross savings from efficiencies and cost
reductions over the coming decade of around $20 billion. This money will be
reinvested to deliver Force 2030. After conducting operations, there is no higher
priority in Defence than the SRP.

MAJOR OPERATIONS 2008-09

In 2008-09 Defence continued to perform very well in a wide range of operations. This year,
Defence was engaged in operations in East Timor, Solomon Islands, Papua New Guinea and the
Northern Indian Ocean, and maritime security operations in the South China Sea in support of
regional security. In the Middle East, Defence contributed to coalition efforts in order to deny
Afghanistan as a safe haven for terrorist groups and also supported the Multinational Force effort
to develop a stable and secure environment in Iraq. In Africa, the Middle East, Iraq, Afghanistan,
and East Timor, Defence also supported United Nations Missions and our forces operated in the
Gulf region and the Horn of Africa to counter the threat of piracy. Here at home, Defence
assisted the civil authorities’ response to the devastating Victorian bushfires and floods in
Queensland and New South Wales. Defence also provided personnel to support the
Government’s intervention to assist Indigenous communities. Finally, Defence played a central
role in protecting Australia’s borders and offshore maritime assets.

The Government has approved the deployment of approximately 3,300 ADF personnel to
operations overseas and within Australia to protect Australia and its national interests.
Additionally, approximately 500 ADF members are actively protecting Australia’s borders and
offshore maritime interests.
Middle East

Operation Catalyst

Operation Catalyst was the Australian Government’s contribution to the stabilisation and
rehabilitation of Iraq. The operation was completed, and all 35 ADF personnel embedded in
Coalition Headquarters were withdrawn from Iraq by 30 July 2009.

Operation Kruger

Commencing in 2009, Operation Kruger supports the Australian Government’s relations with
Iraq through the delivery of tailored security support to the diplomatic mission. It involves
approximately 80 ADF personnel who serve in a security detachment. It is intended that this
function will gradually transition to security services provided by the Department of Foreign
Affairs and Trade.

Operation Riverbank

Operation Riverbank commenced in 2008 and is Australia’s contribution to the United Nations
Assistance Mission for Iraq. Two ADF personnel serve as military advisors in the United
Nations Headquarters.
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Operation Palate II

Operation Palate II commenced in 2005 and is Australia’s contribution to the Military Liaison
Officer position in the United Nations Assistance Mission in Afghanistan.

Operation Slipper

Operation Slipper is Australia's contribution to the war against terrorism and the multinational
maritime interception force in the Persian Gulf. The deployed forces consist of a Mentoring and
Reconstruction Task Force, Chinook helicopters and the Special Operations Task Group, who
have provided ongoing reconstruction and rehabilitation work in Oruzgan Province in southern
Afghanistan. This valuable work includes skills development and engineering projects and helps
both to strengthen local capacity and to increase Afghan security. The ADF's ongoing
commitment to Oruzgan is aimed at helping Afghanistan's government create a secure and stable
environment.

Operation Mazurka

Operation Mazurka began in September 1982 and is Australia's contribution to the Multinational
Force and Observers (MFO) in the Sinai. The MFO is a non-United Nations organisation
established in 1981 to oversee the Camp David Accords of 1978 and the Egypt/Israel Peace
Treaty of 1979. The ADF contributes 25 personnel to the Multinational Force Headquarters.

Operation Paladin
Operation Paladin commenced in June 1956 and is Australia's ongoing contribution to the United
Nations Truce Supervision Organisation in the Middle East. The ADF contributes 11 unarmed
United Nations Military Observers who supervise, observe and report on the various cease-fire
arrangements, truces and peace treaties that have been negotiated between Israel and
neighbouring Arab nations since 1948.

Pacific

Operation Anode

Operation Anode is the ADF contribution to the Department of Foreign Affairs and Trade-led
Regional Assistance Mission to Solomon Islands (RAMSI). The military contingent of RAMSI
is supporting the Participating Police Force effort in maintaining law and order. The ADF leads
the coalition military contribution to RAMSI and currently provides 143 predominantly ADF
Reserve personnel to the operation.

Timor-Leste

Operation Astute

Operation Astute is the name for the ADF stabilisation operations in support of the Government
of Timor-Leste and the United Nations Mission in East Timor. The ADF contributes
approximately 660 personnel as part of the international Stabilisation Force (ISF). Apart from
commanding the ISF, the ADF provides a Battle Group and an Aviation Group.

Operation Tower

Operation Tower is Australia's contribution to the United Nations Integrated Mission in Timor-
Leste, and consists of one staff officer and three military liaison officers.
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Sudan

Operation Azure

Operation Azure is Australia's contribution to the United Nations peacekeeping operation in

Sudan. On 24 March 2005 the UN Security Council authorised the establishment of the United
Nations Mission in Sudan under resolution 1590. Currently, 17 ADF personnel act as United
Nations Headquarters staff, national support element staff or United Nations military observers.

Operation Hedgerow

Commencing in 2008, Operation Hedgerow is Australia’s contribution to the joint African

Union/United Nations hybrid Mission in Darfur, Sudan. The ADF has eight personnel committed
to this operation who serve as United Nations Headquarters staff or specialist officers. Currently
there are no ADF members deployed to this mission.
Border protection

Operation Resolute

Operation Resolute commenced on 17 July 2006 as a consolidation of the majority of ADF

border security operations. It is commanded by Border Protection Command (BPC), an
interagency organisation led by Customs and Defence which includes Australian Fisheries
Management Authority and Australian Quarantine Inspection Service personnel. The BPC is
responsible for coordinating and controlling Australia’s Offshore Maritime Security and brings
together Defence, Customs and Australian Maritime Safety Authority assets in a whole-of-
government surveillance and response effort.

Peacetime national tasks

Operation Padang Assist

Operation Padang Assist (October-November 2009) was the ADF’s month long mission to help
those affected by a major earthquake that struck the Indonesian city of Padang.

PNG Assist II

In December 2008 PNG Assist II was conducted to support whole-of-government assistance to

the Government of Papua New Guinea by providing relief materials and air transport to northern
PNG, New Ireland and Manus following recent flooding and tidal surges. It involved the
deployment of a C-130 Hercules transport aircraft.

Operation Gateway
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Commencing in 1981, Operation Gateway conducts Northern Indian Ocean and South China Sea
maritime surveillance patrols. Australia contributes one P-3 Orion maritime patrol aircraft for
four patrols per year.

Operation Outreach

Operation Outreach was conducted from June 2007 - November 2008 to provide support to the
whole-of-government support to Indigenous communities in the Northern Territory. It involved
provision of general support to the Northern Territory intervention, in particular support to
community surveys, child health checks and installation of police workplace and custodial
facilities. Support was largely provided by ADF Reserve Force units and personnel.

Operation VIC Fire Assist

During February and March 2009 the ADF provided support to the Victorian Government
recovery efforts following the February 2009 Bushfires. 800 predominantly Reserve ADF
personnel were deployed, including a Joint Task Force Headquarters, an Engineering Support
Group and an AP-3C Orion Maritime Patrol Aircraft fire spotting surveillance flights.

Army Aboriginal Community Assistance Program

The Aboriginal Community Assistance Program is a cooperative between the Department of

Families, Housing, Community Services and Indigenous Affairs and the Army to improve
environmental health conditions within remote Aboriginal communities. The program seeks to
maximise benefits to Indigenous communities by focusing on projects that allow the Army to
make best use of its construction and capability, by capitalising on the Army’s ability to
holistically deliver a range of services to remote Indigenous communities that would not
normally be available in a single project.

RESOURCES

As outlined in the 2009-10 Portfolio Budget Statements, the Government provided Defence with
additional funding of $146.1 billion to fully fund the White Paper over 21 years to 2029-30. This
funding amounts to $104.4 billion over the Budget year and Forward Estimates and $308.2
billion over the decade to 2018-19.

Defence’s funding will be based on the following funding principles:

 3 per cent average real growth to 2017-18
 2.2 per cent average real growth from 2018-19 to 2029-30
 2.5 per cent fixed price indexation from 2009-10 to 2029-30, with the 2.5 per cent to be
calculated from 2009-10 but applied from 2013-14
 agreement that Defence will reinvest all savings from the Strategic Reform Program and
other initiatives into higher priority Defence capabilities
 agreement that Defence will make savings of $2 billion, which will be returned to
Defence beyond 2015-16 in line with the revised funding requirements
 an extension of the efficiency dividend of one per cent of the administrative activities for
the life of the White Paper.

This new Defence funding package provides Defence with greater funding stability and certainty
while requiring Defence to drive efficiencies and improve productivity. The 2.2 per cent real
growth funding is consistent with the long-term Non-Farm GDP Deflator. An efficiency and
savings regime to free up resources for reallocation to higher, critical priorities will be combined
with a reprogramming of funds to future years, ensuring Defence can fund capabilities outlined
in the White Paper as they are required.

In addition to the new funding package, there are several measures and adjustments which affect
Defence funding. These are:
 supplementation of $1.7 billion in the budget year and $2.1 billion over four years for
Operations
  in response to the Mortimer Review, the transfer of the Defence Materiel Organisation
service fee on an ongoing basis through a direct appropriation, which equates to $3.2
billion over four years to 2012-13 and $8.7 billion over the decade to 2018-19
 supplementation of $1.7 million in 2009-10 for the Defence Science and Technology
Organisation for its role in the National Crisis Coordination Centre
 a hand back to Government of $2 million over four years and $4.9 million over ten years
as part of the rationalisation of medical costs in administering military superannuation
schemes.
CAPABILITIES

The changing strategic environment highlights the need for the ADF to be a flexible and
adaptable defence force, which is ready to be deployed at short notice and can be sustained on
operations for as long as required. Capability is the power to achieve a desired effect in a
nominated environment in a specified period of time, and to sustain it for a designated period.

Defence maintains a force structure with the following elements:

Navy
 a surface combatant force of four Adelaide-class guided missile frigates and eight Anzac
class frigates, home ported at Fleet Base East in Sydney, New South Wales, and Fleet
Base West, Western Australia
 a naval aviation force comprising 16 Seahawk helicopters, six Sea King helicopters and
13 Squirrel helicopters and three Augusta A109E Power Helicopters, which operate from
Adelaide-class and Anzac-class frigates and from HMAS Albatross, Nowra, New South
Wales
 a surface patrol capability comprising 14 Armidale-class patrol boats, manned by 21
crews and home ported at Darwin Naval Base in the Northern Territory, and HMAS
Cairns, Cairns, Queensland
 six Collins-class submarines, which are home ported at Fleet Base East and Fleet Base
West
 an afloat support capability consisting of an oil tanker and a replenishment ship home
ported respectively at Fleet Base West and Fleet Base East
 a mine warfare force comprising six Huon-class coastal mine hunters and a clearance
diving team, operating from HMAS Waterhen, Sydney, New South Wales and an
additional clearance diving team based at Fleet Base West
 an amphibious lift force comprising two amphibious landing ships, one heavy landing
ship and six heavy landing craft home ported at Fleet Base East, Darwin Naval Base and
HMAS Cairns
 a hydrographic force consisting of two Leeuwin-class hydrographic ships and their
embarked survey motor boats, four Paluma-class survey motor launches, a laser airborne
depth sounder aircraft and a deployable geospatial support team (formerly the Deployable
Survey Unit), home ported at HMAS Cairns.
Army
 a special forces capability comprising a Special Air Service regiment, a Regular Army
commando battalion, an Army Reserve commando regiment, and an Incident Response
Regiment, operating from Barracks in Sydney and Perth
 a medium combined arms operations capability based on 1st Brigade, consisting of a tank
regiment, a cavalry regiment, two mechanised infantry battalion, a medium artillery
regiment, a combat engineer regiment, a signals regiment and a combat service support
battalion, operating mainly from Robertson Barracks, Darwin
 a light combined arms operations capability based on 3rd Brigade, consisting of an
infantry mobility vehicle squadron, three light infantry battalions, a field artillery
regiment, a combat engineer regiment, a signals regiment and a combat service support
battalion, operating mainly from Lavarack Barracks, Townsville
 a motorised combined arms capability, based on 7th Brigade, consisting of a cavalry
regiment, two motorised infantry battalion, a field artillery regiment, a combat engineer
regiment, a signals squadron and a combat service support battalion, operating mainly
from Gallipoli Barracks, Enoggera, Queensland
 a regional surveillance capability based on three regional force surveillance units
 an aviation capability containing Chinook helicopters, Black Hawk helicopters, Kiowa
helicopters, Tiger Armed Reconnaissance helicopters, and Multi-role helicopters. These
capabilities operate from Army Aviation Centre, Oakey, Queensland, Robertson
Barracks, Darwin, Northern Territory, Lavarack Barracks, Townsville, Queensland,
Holsworthy Barracks, Sydney, New South Wales and RAAF Bases Townsville and
Darwin
 a ground-based air defence capability which maintains a ground-based air defence system
consisting of RBS-70 missile systems home based at Woodside Barracks, Adelaide
 a combat support force, consisting of a surveillance and target acquisition regiment, an
engineer support regiment headquarters, two Regular Army engineer construction
squadrons, a construction engineer works section, a topographical survey squadron, a
signals regiment, an electronic warfare regiment, an intelligence battalion, a military
police battalion, a ground liaison group and a combat training centre, operating from
Barracks around Australia
 a logistic support capability based on the 17th Brigade consisting of a signals regiment,
three force support battalions, a personnel support battalion, three health support
battalions and a psychology unit operating from Barracks around Australia
 a protective operations capability drawn from the Army Reserve, with six brigades each
comprising two or three infantry battalions; an artillery regiment, a light cavalry unit and
combat support and logistic support units, home based around Australia.
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Air Force
 an air combat force of 16 F-111 and 69 F/A-18 Hornet aircraft, crews, weapon systems
and support infrastructure home based at RAAF Bases Williamtown, Amberley and
Tindal. Thirty-three Hawk Lead-In fighter aircraft and four PC-9 Forward Air Control
 training aircraft also contribute to this force home based at RAAF Bases Williamtown
and Pearce
 a combat support force comprising two expeditionary combat support wings and a health
services wing
 a surveillance and response force, consisting of air traffic control radar, tactical air
defence radars, and the Jindalee Operational Radar Network (a wide-area surveillance
system monitoring Australia’s northern approaches). Nineteen P-3 Orion aircraft, crews
and weapons systems also operate from RAAF Base Edinburgh
 an airlift force consisting of 24 C-130 Hercules, eight B300 King Air 350 light utility
airacraft and four C-17 Globemaster III heavy airlift aircraft, home based at RAAF Bases
Richmond, Townsville and Amberley
 A VIP transport squadron of five aircraft (two Boeing 737 BBJ and three CL604
Challenger aircraft) home based at Fairbairn, Australian Capital Territory
 57 Pilatus PC-9 training aircraft home based at RAAF Bases East Sale and Pearce
 a further 8 B300 King Air 350 Multi-role trainer aircraft based at RAAF Base East Sale
 Five KC-30A tanker aircraft will be acquired from 2010 for air-to-air refuelling roles and
will be based at RAAF Base Amberley
 an Aerospace Operational Support force comprising aviation medicine support and
training, electronic warfare support, intelligence support, and aviation support services
based at RAAF Base Edinburgh. An aerospace test and evaluation unit is also included
that operates two F/A-18 Hornet aircraft and two PC-9 aircraft at RAAF Base Edinburgh.
 three contingency bases at Learmonth (Exmouth), Curtin (Derby), and Scherger (Weipa)
 three air weapons ranges at Delamere (Northern Territory), Evans Head (New South
Wales) and Woomera (South Australia).

Defence Material Organisation (DMO)

The DMO equips and sustains the ADF through the acquisition and sustainment of capital
equipment. The operational success of the ADF depends on the DMO providing equipment on
time, on budget, and to the required levels of capability, quality and safety. In July 2005, the
DMO became a prescribed agency under the Financial Management and Accountability Act
1997(Cwlth). The DMO is a professional service delivery organisation, principally driven by the
defence policies and objectives set by the Australian Government and the requirements of the
ADF. It aims to be a business-like, accountable and outcome-driven organisation with a strong
and close relationship with the Government, its Defence customers and industry.

The DMO is currently managing over 210 major acquisition projects (those with a contract value
of more than $20 million) and more than 150 minor projects. It also provides sustainment
management services for over 100 ‘fleets’ of military equipment. To meet these demands, the
DMO has many of its own staff, together with contracted industry suppliers, across Australia and
overseas including the United States, United Kingdom, France, Spain and New Zealand.
The DMO and Australian defence industry have a significant and ongoing role to play in
delivering new equipment on time, on budget and to specification underlined by capability
effect, quality and safety. In 2009-10, the DMO is budgeted to spend in excess of $11.85 billion,
of which an estimated 57 per cent is expected to be spent in Australia.

The demands of the Defence Capability Plan require an increase in excess of 30 per cent in the
new project work rate of the DMO, and industry, over the next five years. The DMO will
manage approximately $100 billion worth of work on acquisition and sustainment projects over
the next decade, with about 65 - 70 per cent to be spent in Australia.

For more information about the DMO, visit: <http://www.defence.gov.au/dmo>.

PEOPLE

As at June 2009, Defence was one of the largest employers in Australia, with a diverse
workforce of over 70, 000 permanent employees, plus part-time staff and Reservists.
 The total ADF workforce was 81,106, including 17,918 Navy Permanent, and Reserve
members, 45,166 Army Permanent, and Reserve members and 18,022 Air Force
Permanent, and Reserve members. In addition, 22,166 former permanent and Active
Reserve ADF members remain in the Standby Reserve, a significant latent capability
potentially available to support operations.
 The total APS workforce was 21, 006, including all APS staff recorded as active
employees and included full-time, part-time, ongoing and non-ongoing, and paid and
unpaid employees in both Defence and the Defence Materiel Organisation.
 2,630 Reservists were also Defence APS employees.
 Contractors and Australian industry also contribute to the Defence workforce by
providing support in a variety of areas and are an important element of the total Defence
effort

Detailed information on the Defence workforce can be found at

<http://www.defence.gov.au/annualreports/>.

Recruitment and retention

The ADF has had a Recruitment and Retention Program in place since 2007, with $3.1 billion
allocated over a ten year period to a range of initiatives. The program included retention bonuses
focussed on reducing separation rates amongst critical categories and ranks in the short term,
while longer-term structural change, remuneration reform and other benefits were put in place to
encourage members to stay longer. At the same time a number of improvements have been made
to Defence’s recruitment practices. Some related developments are listed below.

In 2008-09 growth in the permanent ADF workforce was broadly on track. As outlined in the
White Paper, the ADF is required to grow to a full time strength of approximately 57,800 over
the next decade. In the 12 months to June 2009, the permanent ADF strength increased by 1,925,
bringing the total ADF permanent workforce to 55,068. This is an increase of 3.6 per cent on the
2007-08 total of 53,143.

Multicultural Recruitment and Retention Strategy

Defence has continued to encourage multicultural recruitment and retention in the ADF.
Research into impediments to the enlistment of individuals with culturally diverse backgrounds
has led to the development of a recruiting marketing campaign, currently progressing through
Government clearance processes, an alumni visit program for personnel from multicultural
backgrounds to promote the ADF, mentoring, coaching, partnering research with tertiary
institutions, as well as community engagement with Ethnic Councils.
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Indigenous Participation

Indigenous recruitment and retention is also a priority for Defence. The Directorate of
Indigenous Affairs was launched in July 2008 to provide a single point of contact for Defence
Indigenous issues. The Directorate oversees the implementation of initiatives and strategies
arising from the Defence Reconciliation Action Plan, which is available at
<http://www.defence.gov.au/fr/>

The ADF Indigenous Employment Strategy

The ADF Indigenous Employment Strategy encompasses initiatives to attract and recruit more
Indigenous people from remote, regional and urban communities throughout Australia. Work is
in progress under its three themes of changing perceptions; specialised pathways; and ongoing
support to Indigenous ADF members. A cultural integration package is being developed to assist
Defence workplaces in embracing cultural diversity on a daily basis. Indigenous pre-recruitment
courses have been trialled in Townsville, Newcastle and Western Sydney, resulting in a
promising level of enlistments.

The APS Indigenous Employment Strategy is under review to comprehensively address the
attraction and retention of Indigenous Australians through increasing opportunities to participate
more fully in the Defence APS workforce. This includes participation by Defence in the National
Indigenous Cadetship Project, Indigenous Graduate Recruitment, Indigenous entry level
recruitment and the Indigenous Contract Management Diploma Course. Staff also attended
several Indigenous Employment and Carers Expos in Queensland. In addition, the Defence
Science Indigenous Scholarship was awarded for the first time in March 2009.

Army Aboriginal Community Assistance Program

The Aboriginal Community Assistance Program is a cooperative program between the

Department of Families, Housing, Community Services and Indigenous Affairs and the Army to
improve environmental health conditions within remote Aboriginal communities.
The program seeks to maximise benefits to Indigenous communities by focusing on projects that
allow the Army to make best use of its construction and capability, by capitalising on the Army’s
ability to holistically deliver a range of services to remote Indigenous communities that would
not normally be available in a single project.

Indigenous Liaison Officers

Indigenous Liaison Officers develop and maintain links with local Indigenous communities.
They are responsible for consulting with Indigenous groups on issues pertaining to the use and
upkeep of Defence training areas on heritage land as part of Defence Heritage Management
Plans and Indigenous Land Use Agreements.

The Defence estate

The Defence estate is the largest real estate portfolio in Australia. It covers approximately 374
major properties (including 60 major bases), 25,000 assets, and millions of hectares of land
embracing five world heritage areas. Defence provides facilities and infrastructure in support of
the activities of personnel across all states and territories in Australia.
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Climate Change

Defence is serious about our environmental responsibilities to ensure a sustainable future. As

part of the ‘Combat Climate Change’ initiative, Defence achieved a reduction of more than five
per cent in electricity usage across the portfolio in the past year. In addition, 234 infrastructure
and capability related projects were subject to environmental impact assessments, and Defence
continues to implement and develop the Environmental Management System across the three
million hectares of Defence estate.

Defence Housing Australia (DHA)

DHA provides high quality housing and relocation services to members of the ADF to meet the
operational requirements of Defence.

DHA was established as a statutory authority under the Defence Housing Australia Act 1987
(Cwlth). DHA manages around 17,000 residences in all states and territories of Australia,
representing around $7 billion worth of housing stock. Over 60 per cent of these residences are
owned by private investors and leased back to DHA through the Sale and Leaseback Program.
DHA manages approximately 24,500 relocations for ADF members and their families each year.
This service includes arrangement of removal requirements; payment of entitlements; allocation
of homes and a smooth move-out process. Staff support ADF members from 22 Housing
Management Centres and other offices located across Australia.
DHA has an innovative sale and leaseback program, which ensures efficient use of DHA's
capital, allowing DHA to develop quality residential properties in key locations across the
country, sell them to investors and then lease them back.

On 3 February 2009 the Government announced details of funding to be provided to DHA as

part of its Nation Building - Economic Stimulus Plan. The focus of the funding is on jobs
creation and securing long term economic growth. As part of the stimulus plan, $251.58 million
will be provided to DHA to construct an additional 802 new residential houses throughout
Australia over the new two years.

These 802 additional houses will supply much needed accommodation to serving ADF members
and their families and will also materially increase the supply of residential housing at a time of
historically low national rental vacancy. This will assist with improving rental accommodation
affordability for the community.

For more information about the DHA, refer to its website <http://www.dha.gov.au>.

BIBLIOGRAPHY

REFERENCES

Department of Defence publications can be found at

<http://defence.gov.au/publications.cfm>, including:

Defence White Paper 2009: Defending Australia in the Asia Pacific

Century: Force 2030

Defence Annual Report 2008-09

Defence Portfolio Budget Statements 2009-10

Defence Fast Facts 2009

WEBSITES

Department of Defence, last viewed November 2009, <http://www.defence.gov.au>

Defence Materiel Organisation, last viewed November 2009,

<http://www.defence.gov.au/dmo>

Defence Housing Australia, last viewed November 2009, <http://www.dha.gov.au>

Defence Annual Reports, last viewed November 2009,
<http://www.defence.gov.au/annualreports/>

Air Force capability, last viewed November 2009,

<http://www.airforce.gov.au/aircraft>

Infrastructure Division, last viewed November 2009, <http://www.defence.gov.au/id>

POPULATION

INTRODUCTION

Population statistics measure the size, growth, composition and geographic

distribution of the population, as well as the components that shape population
change - births, deaths and migration. Population statistics underpin discussion on a
wide range of topical issues, including dynamics in family structures, fertility,
ageing and migration. Statistics on population trends assist governments in
developing social and economic policies in areas such as health, education,
housing, the labour market, and the environment.

There are important legislative requirements for the Australian Bureau of

Statistics (ABS) to produce population estimates. The legislation which determines
the distribution of state, territory and local government grants uses the ABS
population estimates as one of the bases for calculation. Population estimates are
also used to determine the number of seats each state and territory is entitled to in
the House of Representatives.

The Census of Population and Housing, which has been held every five years since
1961, is the primary source of information on Australia's population. The most
recent Census was conducted in August 2006.

This chapter contains the article Characteristics of the Population.

POPULATION SIZE AND GROWTH

Australia's estimated resident population (ERP) at 30 June 2008 was 21.4 million, an increase of
1.7% (or 359,300 people) from the previous year (table 7.1).
ERP figures for Australia and its states and territories are calculated using a base figure obtained
from the most recent Census of Population and Housing. To obtain ERP figures from the Census
results, the raw Census population count is adjusted for visitors from overseas and interstate on
Census night, Australian residents temporarily overseas on Census night and an estimate of both
the number of people missed and those counted more than once. ERP figures for dates between
Censuses are estimated by adding births and net overseas migration to the Census-based figure,
and subtracting deaths. For state and territory figures, interstate migration estimates are also
applied. Table 7.1 illustrates the components used to estimate ERP and population change.
7.1 COMPONENTS OF POPULATION CHANGE AND ESTIMATED RESIDENT
POPULATION(a)(b)
ERP at start of Natural Net overseas ERP at end of
Births Deaths IncreaseIncrease
period increase migration period
'000 '000 '000 '000 '000 '000 '000 %

2002-03 19 651.4 246.7 132.2 114.4 116.5 19 895.4 244.0 1.24

2003-04 19 895.4 249.1 133.2 115.9 100.0 20 127.4 231.9 1.17
2004-05 20 127.4 255.9 131.4 124.6 123.8 20 394.8 267.4 1.33
2005-06 20 394.8 263.5 134.0 129.5 146.8 20 697.9 303.1 1.49
2006-07 20 697.9 277.7 136.0 141.7 232.8 21 072.5 374.6 1.81
2007-
21 072.5 287.7 142.0 145.6 213.7 21 431.8 359.3 1.71
08(c)

(a) For futher information on the components of population change please refer to the Explanatory Notes in ABS
Australian Demographic Statistics (3101.0).
(b) Differences between total increase and the sum of the components of population change prior to September
quarter 2006 are due to intercensal discrepancy.
(c) Preliminary estimate.
Source: ABS Australian Demographic Statistics (3101.0)

Over the past decade, Australia's ERP has grown by 14.5% or 2.7 million people. The growth of
Australia's population has two components: natural increase (the excess of births over deaths)
and net overseas migration (i.e., net gain or loss of population through immigration to Australia
and emigration from Australia). For state and territory estimates, a third component, net
interstate migration, is also included. Since Federation in 1901, Australia's population has
increased by 17.6 million people. Graph 7.2 shows the growth in Australia's population since
Federation.
 7.2 POPULATION OF AUSTRALIA

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Over the last 50 years, population growth has occurred unevenly across the states and territories
(table 7.3). Consequently, the proportion of Australia's population resident in each state and
territory has changed over time. From 1958 to 2008, the proportion of the Australian population
living in the following states decreased: New South Wales (from 37.5% to 32.5%), Victoria
(from 27.6% to 24.8%), South Australia (9.1% to 7.5%) and Tasmania (3.4% to 2.3%). The
proportion of Australia's population living in all other states and territories increased over the
same period, with Queensland increasing from 14.6% to 20.0%, Western Australia from 7.1% to
10.1%, the Australian Capital Territory from 0.4% to 1.6% and the Northern Territory from
0.2% to 1.0%. Western Australia overtook South Australia to become the fourth most populous
state in 1982.
7.3 POPULATION, By state and territory(a)
NSW Vic. Qld SA WA Tas. NT ACT Aust.(b)
30 June '000 '000 '000 '000 '000 '000 '000 '000 '000

1958 3 692 2 718 1 439 897 700 333 22 41 9 842

1968 4 359 3 324 1 729 1 122 915 380 68 112 12 009
1978 5 054 3 864 2 172 1 296 1 228 418 110 218 14 359
1988 5 707 4 263 2 740 1 405 1 535 451 159 272 16 532
1998 6 339 4 638 3 448 1 490 1 823 472 190 310 18 711
2005 6 756 5 049 3 995 1 553 2 017 486 206 330 20 395
2006 6 816 5 127 4 091 1 568 2 059 490 211 334 20 698
2007 6 905 5 221 4 196 1 586 2 113 493 215 341 21 072
2008 6 984 5 314 4 294 1 603 2 171 498 220 346 21 432

(a) Prior to 1971, estimates of the population were based on the number of people actually present in Australia.
From 1971 onwards the concept of estimated resident population (ERP) was introduced. See Explanatory Notes of
ABS Australian Demographic Statistics (3101.0) for more information.
(b) Includes Other Territories from 1998 onwards.
Source: ABS Australian Historical Population Statistics (3105.0.65.001); ABS Australian Demographic Statistics
(3101.0) .
Components of population growth

The Australian population has more than doubled from 9.8 million in 1958 to 21.4 million in
2008. Since the start of the ERP measure in 1971, natural increase has been the main component
of population growth in Australia. However, in the last three years net overseas migration has
been the larger contributor to population growth. Net overseas migration, is more volatile than
natural increase, fluctuating under the influence of government policy as well as political,
economic and social conditions in Australia and the rest of the world.

Annual growth at 30 June due to natural increase and net overseas migration from 1972 to 2008
is shown in graph 7.4.
7.4 Components of population growth, At 30 June

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In 1972, the excess of births over deaths resulted in a natural increase of 161,800 persons.
Declining fertility led to a fall in natural increase at around 110,000 to 130,000 before peaking at
141,600 in 1991. Natural increase again dropped to a low of 114,420 persons in 2003. In recent
years due to an increase in births, there has been a rise in natural increase to 145,600 persons in
2008. Since 2006, net overseas migration has contributed more people to the population than
natural increase, adding 213,700 people in 2008.

In 2008 the crude death rate was 6.7 deaths per 1,000 population, falling from 8.3 in 1972. The
crude birth rate declined from 19.9 births per 1,000 population in 1972 to 13.8 in 2008. The
lowest crude birth rate during this period, 12.4 births per 1,000 population, was recorded in 2004.
Crude birth and death rates from 1972 to 2008 are shown in graph 7.5.
 7.5 Crude birth and death rates

Population age and sex structure

Over the last 50 years the absolute number of people increased in all age groups. However, the
proportion of the population in older age groups increased while the proportion in younger age
groups declined. Graph 7.6 shows the proportions of the population by age group and sex in
1958 and 2008, illustrating the ageing of Australia's population. Australia's population is ageing
because of sustained below replacement level fertility, resulting in proportionally fewer children
in the population, and increased life expectancy, resulting in proportionally more older people in
the population.
 7.6 Age distribution of population

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In 1958 there were 110,800 more males than females in Australia's population, while in 2008
there were 109,900 more females than males. Since 1979 Australia has been home to more
females than males. At 30 June 2008, the sex ratio of Australia's population was 99.0 males per
100 females.

In 1958 people aged 0-14 years represented 30.0% of Australia's population, while those aged
15-64 years represented 61.5%, those aged 65 years and over represented 8.5% and those aged
85 years and over represented 0.4%. Although Australia's population continued to grow since
1958, the proportion of children aged 0-14 years decreased to 19.3% by 2008. In contrast, the
proportion of people aged 15-64 years increased to 67.5% and the proportion of the population
aged 65 years or more increased to 13.2%. The proportion of those aged 85 years and over
increased four-fold to 1.7% (graph 7.7).
 7.7 Proportion of population, By age group

The change in the age structure of Australia's population over time is illustrated by the change in
the median age (the age at which half the population is older and half is younger). In 2008 the
median age of the Australian population was 36.9 years, an increase of 5.3 years over the median
age of 31.6 years in 1988. Graph 7.8 shows the median ages of the population of the states and
territories in 1988 and 2008.

In 2008 the population of Tasmania had the highest median age of all states and territories (39.4
years), closely followed by South Australia (39.0 years). The Northern Territory (31.1 years) had
the lowest median age in 2008.

Tasmania experienced the largest increase in median age over the 20 years to 2008, increasing by
8.0 years from 31.4 years in 1988 to 39.4 years in 2008. The next largest increase was South
Australia, increasing by 6.3 years, from 32.7 years in 1988 to 39.0 years in 2008.
7.8 Median age of population

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In 2008 there were just over 2.8 million people aged 65 years or more in Australia, an increase of
67,700 people (2.5%) over 2007. All states and territories experienced growth in this age group,
with the Northern Territory experiencing the greatest increase (6.6%) (table 7.9).

The number of people aged 85 years and over in Australia has increased by 6.0% from 2007 to
2008, now equalling just over 362,000. Again, growth in this age group occurred in all states and
territories, with the Northern Territory experiencing the greatest increase of 9.8% closely
followed by the Australian Capital Territory (9.6%).
7.9 OLDER AUSTRALIANS(a), 30 June 2008
Aged 65 years and over Aged 85 years and over

Proportion of % Population % Population

Proportion of
Population in growth growth
Population in 2008
2008 from 2007 to 2008 from 2007 to 2008

New South
13.8 2.2 1.8 6.4
Wales
Victoria 13.5 2.2 1.8 5.7
Queensland 12.3 3.0 1.5 5.6
South
15.3 1.9 2.1 6.1
Australia
Western
11.9 3.2 1.4 6.1
Australia
Tasmania 15.0 2.3 1.9 4.8
Northern
5.1 6.6 0.3 9.8
Territory
Australian
Capital 10.0 3.8 1.2 9.6
Territory
Australia(b) 13.2 2.5 1.7 6.0

(a) Persons aged 65 years and over

(b) Includes Other Territories. Other Territories comprise Jervis Bay Territory, Christmas Island and the Cocos
(Keeling) Islands.
Source: ABS Australian Demographic Statistics (3101.0) .

Population projections

The ABS has published projections of the population of Australia to the year 2101 and of the
states, territories, capital cities and balances of state to the year 2051, based on assumptions
about future levels of fertility, mortality and overseas and interstate migration. Three main
projections (Series A, B and C) have been published using different combinations of
assumptions. The current set of population projections are based on preliminary population
estimates for 30 June 2007.

Assumptions used for the three series of projections were:

Series A
 a total fertility rate of 2.0 babies per woman from 2021 onwards,
  life expectancy at birth increasing to 93.9 years for males and 96.1 years for females by
2056 and remaining constant thereafter,
 net overseas migration of 220,000 people per year from 2011 onwards,
 high levels of interstate migration.

Series B
 a total fertility rate of 1.8 babies per woman from 2021 onwards,
 life expectancy at birth increasing to 85.0 years for males and 88.0 years for females by
2056 and remaining constant thereafter,
 net overseas migration of 180,000 per year from 2008 onwards,
 medium levels of interstate migration.

Series C
 a total fertility rate of 1.6 babies per woman from 2021 onwards,
 life expectancy at birth increasing to 85.0 years for males and 88.0 years for females by
2056 and remaining constant thereafter,
 net overseas migration of 140,000 per year from 2008 onwards,
 low levels of interstate migration.

Unless otherwise stated the following analysis uses Series A and C to depict a range, although
not the full range, of projected populations. At times, to simplify the analysis, only the medium
series (i.e. Series B) has been used.
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Australia's population in June 2007 of 21.0 million people is projected to increase to between
30.9 and 42.5 million in 2056, and reach between 33.7 and 62.2 million by 2101.

All three series project continuing population growth throughout the projection period. In Series
A, the population is projected to reach 42.5 million in 2056 and 62.2 million in 2101. In Series
B, the population will reach 35.5 million in 2056 and 44.7 million in 2101. In Series C, the
projected population is 30.9 million for 2056, and 33.7 million for 2101 (graph 7.10).
 7.10 Projected population, At 30 June

The growth rate of Australia's population reflects the interaction of the components of population
change - natural increase (the excess of births over deaths) and net overseas migration (NOM).

In the 10 years to June 2007, Australia's population increased by 1.3% per year on average, with
just over half of this growth resulting from natural increase and just under half from NOM. In the
last 2 years, Australia's population has grown by 1.5% per year, with NOM contributing more to
population growth than natural increase in the year ended June 2007. In 2006-07, there were
274,300 births and 134,800 deaths in Australia, resulting in a natural increase of 139,500 people,
while NOM contributed 177,600 people to Australia's population.

In Series C, a state of natural decrease, in which deaths outnumber births, is reached in 2048.
However, NOM more than compensates for losses due to natural decrease and Australia's
population continues to increase, albeit slowly, throughout the projection period. A state of
natural decrease is also reached in Series B, but only in the last year of the projection (2101). In
contrast to the 2004-based set of ABS population projections released in November 2005, no
series shows population decline for Australia before the end of the century.

Series B projects continuing population growth over the next 50 years in all states and territories
except Tasmania, where the population increases slowly before levelling out by around 2040 and
then decreasing marginally from 2051 onwards. Between June 2007 and 2056, the populations of
both Queensland and Western Australia are projected to more than double (with increases of
109% and 104% respectively) while the Northern Territory is projected to increase by 87%. In
comparison, the projected growth for Australia for the same period is 69%.
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In Series B, New South Wales is projected to remain the most populous state in Australia,
although its share of Australia's population will decline from 33% in June 2007 to 29% in June
2056. Queensland is projected to replace Victoria in 2050 as the second most populous state,
with Queensland's share of Australia's population increasing from 20% to 25% over the next 50
years, and Victoria's share decreasing marginally, from 25% to 24%. Western Australia is
projected to increase its share of Australia's population from 10% in June 2007 to 12% in June
2056, while South Australia's share will decline from 7.5% to 6.2% over the same period.
Similarly, Tasmania's share is projected to decline from 2.3% in June 2007 to 1.6% in June 2056.
The Northern Territory's share will remain at a similar level, increasing from 1.0% to 1.1%.
Likewise the Australian Capital Territory's share will change only marginally, decreasing from
1.6% to 1.4%.
7.11 ACTUAL AND PROJECTED POPULATION-30 June
2007(a) 2026 2056

Actual Series ASeries B Series C Series A Series B Series C

Capital city/balance of state '000 '000 '000 '000 '000 '000 '000
Sydney 4 334.0 5 487.2 5 426.3 5 358.2 7 649.0 6 976.8 6 565.2
Balance of New South Wales 2 554.0 3 189.9 2 968.8 2 780.2 4 140.1 3 233.4 2 646.1
New South Wales 6 888.0 8 677.0 8 395.1 8 138.5 11 789.1 10 210.2 9 211.3
Melbourne 3 805.8 5 272.3 5 038.1 4 861.7 7 970.7 6 789.2 6 100.9
Balance of Victoria 1 399.1 1 626.1 1 624.1 1 636.3 1 879.6 1 749.1 1 742.9
Victoria 5 204.8 6 898.3 6 662.2 6 498.0 9 850.3 8 538.3 7 843.8
Brisbane 1 857.0 2 908.0 2 681.1 2 465.6 4 955.1 3 979.3 3 237.0
Balance of Queensland 2 324.5 3 645.4 3 356.9 3 129.7 5 966.3 4 759.6 3 998.2
Queensland 4 181.4 6 553.3 6 038.0 5 595.2 10 921.3 8 738.9 7 235.2
Adelaide 1 158.0 1 410.8 1 384.5 1 391.8 1 848.5 1 651.8 1 623.7
Balance of South Australia 426.2 531.5 499.8 451.0 691.4 552.7 406.7
South Australia 1 584.2 1 942.3 1 884.4 1 842.9 2 539.9 2 204.5 2 030.4
Perth 1 554.1 2 455.2 2 267.6 2 112.1 4 164.4 3 358.4 2 815.5
Balance of Western Australia 552.0 796.8 732.9 660.5 1 207.6 935.0 702.3
Western Australia 2 106.1 3 252.0 3 000.5 2 772.7 5 372.0 4 293.4 3 517.7
Hobart 207.4 266.8 245.3 228.2 367.2 279.7 224.0
Balance of Tasmania 286.0 338.5 307.0 277.5 411.1 291.2 202.6
Tasmania 493.4 605.3 552.3 505.7 778.3 571.0 426.6
Darwin 117.4 189.3 165.2 142.4 334.9 243.0 169.2
Balance of Northern Territory 97.5 140.1 119.8 100.8 238.1 158.6 94.9
Northern Territory 214.9 329.4 285.0 243.3 573.0 401.6 264.2
Australian Capital
339.8 462.5 416.5 373.0 683.2 509.3 374.2
Territory(b)
Total capital cities(c) 13 373.4 18 452.0 17 624.7 16 933.0 27 973.0 23 787.5 21 109.6
Total balance of states and
7 641.7 10 271.0 9 611.9 9 038.9 14 537.3 11 682.5 9 796.5
territories(d)(e)
Australia(e) 21 015.0 28 723.0 27 236.7 25 971.9 42 510.4 35 470.0 30 906.1

(a) Projections based on 2007 estimated resident population.

(b) Canberra and Balance of ACT not projected separately
(c) Includes ACT.
(d) Excludes Balance of ACT.
(e) Includes Other Territories. Other Territories comprise Jervis Bay Territory, Christmas Island and the Cocos
(Keeling) Islands.
Source: ABS Population Projections, Australia, 2006 to 2101 (3222.0)
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Graph 7.12 illustrates the ageing of Australia's population projected to occur over the next 90
years. Ageing of the population is a trend which has been evident over recent decades as a result
of fertility remaining below replacement level and declining mortality rates. In all three series
this trend is projected to continue.

The median age of Australia's population is projected to increase from 36.7 years in June 2007 to
between 38.7 and 40.7 years in 2026, and to between 41.9 and 45.2 years in 2056. In 2101 the
median age of the population is projected to reach between 43.8 and 46.7 years.
7.12 Age structure of the projected population

Ageing of the population affects the relative sizes of different age groups within the population.
The proportion of the population aged under 15 years is projected to decrease from 19% (4.1
million people) of Australia's population in 2007 to between 15% and 18% (4.5 million and 7.5
million) in 2056, and to decline to between 14% and 17% (4.7 million to 10.4 million) in 2101.
In contrast, the proportion of the population aged 65 years and over is projected to increase, from
13% (2.8 million people) in 2007 to between 23% and 25% (7.8 million and 10.4 million) in
2056, and 25% and 28% (9.3 million and 17.1 million) in 2101.

Table 7.13 presents a range of indicators, such as population size and age structure, to illustrate
changes in Australia's population from 1901 to 2101.
7.13 POPULATION, Summary indicators
1901 1947 1971 2007(a) 2026(b) 2056(b) 2101(b)

Total population '000 3 774.1 7 579.4 13 067.3 21 015.0 27 236.7 35 470.0 44 744.8
Proportion of population
0-14 years % 35.2 25.1 28.7 19.4 17.9 16.6 16
15-64 years % 60.8 66.8 63 67.4 63.4 60.5 59
65 years and over % 4 8.1 8.3 13.2 18.7 22.9 25
85 years and over % 0.1 0.4 0.5 1.6 2.4 4.9 5.8
Sex ratio(c) ratio 110.1 100.4 101.1 98.8 99.4 100.3 101
Median age years 22.5 30.7 27.5 36.7 39.5 42.4 43.8
Proportion living in capital
% 36.8 51.2 63.5 63.6 64.7 67.1 na
cities(d)

na not available
(a) Preliminary estimated resident population at 30 June.
(b) Series B population projections.
(c) Males per 100 females.
(d) Includes Australian Capital Territory.
Source: ABS Australian Historical Population Statistics (3105.0.65.001); ABS Population Projections, Australia,
2006 to 2101 (3222.0)
GEOGRAPHIC DISTRIBUTION OF THE POPULATION

Most of Australia’s population is concentrated in two widely separated coastal regions - the
south-east and east, and the south-west. Of the two regions, the south-east and east is by far the
largest in area and population. The population within these regions is concentrated in urban
centres, particularly the state and territory capital cities.

Australia's population density at June 2008 was 2.8 people per square kilometre (sq km),
compared with 2.6 people per sq km in 2003. Of the states and territories, the Australian Capital
Territory had the highest population density at June 2008 with 147 people per sq km (reflecting
the fact that the city of Canberra constitutes a large proportion of the Australian Capital
Territory's area when compared to other capital cities), followed by Victoria with 23 people per
sq km. The Northern Territory had a population density of 0.2 people per sq km, the lowest of all
the states and territories (reflecting more recent settlement, distance from areas settled earlier,
large arid areas and, perhaps, climate).

Population density at June 2008 was highest in the city centres, particularly in the Sydney
Statistical Division where the two most densely populated Statistical Local Areas (SLAs) in
Australia were located. These were Sydney (C) - East (with 8,400 people per square kilometre)
and the neighbouring Sydney (C) - West (7,500). Waverley (A), which is located just east of the
Sydney (C) LGA and contains the beach-side suburbs of Coogee, Bronte and Bondi, also had
one of the highest population densities in Australia at 7,200 people per square kilometre. The
most densely populated SLA in Victoria was Melbourne (C) - Inner with 7,300 people per square
kilometre, making it the third most densely populated SLA in the country. Port Phillip (C) - St
Kilda, which is on the shores of the bay just south of the city centre, with 6,200 people per
square kilometre, completes the list of Australian SLAs that had more than 6,000 people per
square kilometre at June 2008. At the other extreme, there were over 250 SLAs in Australia with
less than 1 person per square kilometre, close to one-third of which were located in Western
Australia. The density of Australia's population at June 2008 is shown in map 7.14.
 7.14 Population Density-June 2008

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Regional population change

At June 2008, capital city Statistical Divisions (SDs) were home to 13.7 million people, or
around two-thirds (63.9%) of Australia's population. The capital city SD of Melbourne
experienced the largest increase in population of capital cities between 2003 and 2008, followed
by Sydney and Brisbane. In terms of percentage growth, however, Darwin was the fastest
growing capital city between 2003 and 2008, with an average annual growth rate of 2.3% per
year. Perth and Brisbane experienced the next highest average annual growth rates over this
period (both at 2.2%). Table 7.15 illustrates the changes in population of Australia's major
regions over the five-year period 2003-08.

Generally, the largest growth outside capital city SDs occurred in Australia's coastal regions. Of
these regions, the largest increase in population between 2003 and 2008 occurred in Gold Coast-
Tweed, up by an average 16,700 people per year (or 3.3% per year). Hervey Bay recorded the
fastest growth over the same period with an average growth rate of 5.4% per year. This growth
was also faster than any capital city. Mandurah and Bunbury, south of Perth, also had average
annual growth rates above 4.0% during the same period.
7.15 ESTIMATED RESIDENT POPULATION, By major regions(a)
June 2003 June 2008 Change 2003-08
'000 '000 no. %(b)

Capital city statistical division

Sydney 4 190 874 4 399 722 208 848 1.0

Melbourne 3 577 411 3 892 419 315 008 1.7
Brisbane 1 744 111 1 945 639 201 528 2.2
Adelaide 1 121 742 1 172 105 50 363 0.9
Perth 1 435 907 1 602 559 166 652 2.2
Greater Hobart 199 853 209 287 9 434 0.9
Darwin 107 440 120 652 13 212 2.3
Canberra 325 340 345 257 19 917 1.2

Statistical district

Newcastle (NSW) 503 160 531 191 28 031 1.1

Wollongong (NSW) 273 788 284 169 10 381 0.7
Nowra-Bomaderry (NSW) 31 007 33 212 2 205 1.4
Lismore (NSW) 30 664 31 926 1 262 0.8
Coffs Harbour (NSW) 47 803 51 538 3 735 1.5
Port Macquarie (NSW) 39 881 42 900 3 019 1.5
Tamworth (NSW) 43 119 45 615 2 496 1.1
Dubbo (NSW) 35 325 36 653 1 328 0.7
Wagga Wagga (NSW) 52 916 56 911 3 995 1.5
Bathurst (NSW) 31 137 32 942 1 805 1.1
Orange (NSW) 37 126 37 991 865 0.5
Albury-Wodonga (NSW/VIC) 97 528 102 894 5 366 1.1
Geelong (VIC) 162 543 172 300 9 757 1.2
Warrnambool (VIC) 30 317 32 712 2 395 1.5
Ballarat (VIC) 85 074 91 787 6 713 1.5
Bendigo (VIC) 81 434 88 031 6 597 1.6
Shepparton (VIC) 45 564 47 710 2 146 0.9
La Trobe Valley (VIC) 74 743 78 531 3 788 1.0
Mildura (VIC) 45 912 49 280 3 368 1.4
Sunshine Coast (QLD) 202 780 237 562 34 782 3.2
Bundaberg (QLD) 58 833 66 176 7 343 2.4
Hervey Bay (QLD) 43 123 56 165 13 042 5.4
Rockhampton (QLD) 69 040 75 497 6 457 1.8
Gladstone (QLD) 41 549 48 796 7 247 3.3
Mackay (QLD) 68 532 81 148 12 616 3.4
Townsville (QLD) 140 362 162 730 22 368 3.0
Cairns (QLD) 118 503 142 001 23 498 3.7
Toowoomba (QLD) 113 714 125 339 11 625 2.0
Gold Coast-Tweed (QLD/NSW) 475 472 558 888 83 416 3.3
Mandurah (WA) 63 562 78 612 15 050 4.3
Bunbury (WA) 51 366 63 202 11 836 4.2
Kalgoorlie/Boulder (WA) 29 890 31 509 1 619 1.1
Geraldton (WA) 31 861 35 361 3 500 2.1
Launceston (TAS) 100 515 104 649 4 134 0.8
Burnie-Devonport (TAS) 78 198 81 144 2 946 0.7
Canberra-Queanbeyan (ACT/NSW) 369 769 395 126 25 357 1.3
(a) Based on 2008 Australian Standard Geographical Classification boundaries.
(b) Average annual growth rate.
Source: ABS Regional Population Growth, Australia (3218.0).
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Interstate migration

A key contributor changing the distribution of Australia's population is internal migration.

During 2007-08, 360,800 people moved from one state or territory to another. This is an increase
of 2,100 people compared with the previous year.

In 2007-08, Queensland, Western Australia, Tasmania and the Northern Territory all experienced
net interstate migration gains, while New South Wales, Victoria, South Australia and the
Australian Capital Territory experienced net interstate migration losses. Queensland has
experienced positive net interstate migration for more than 30 years; in contrast, New South
Wales has experienced net losses every year since 1978-79. As table 7.16 illustrates, however,
any losses due to interstate migration in 2007-08 were offset by growth due to natural increase
and/or net overseas migration.

Queensland was the most popular destination for Australians moving interstate, receiving the
largest number of arrivals during 2007-08 (100,600 persons). New South Wales and Victoria
followed with 85,200 and 65,500 arrivals respectively.

The most common moves were between the three most populous states: New South Wales,
Queensland and Victoria. The largest interstate flow was from New South Wales to Queensland
(50,400 persons), while the counter flow from Queensland to New South Wales was the second
largest (35,500 persons), followed by the flow from New South Wales to Victoria (23,500
persons).

There were also significant movements between bordering states and territories. This is
especially apparent between the Australian Capital Territory and surrounding New South Wales,
with 10,900 arrivals to the Australian Capital Territory from New South Wales and 10,400
departing from the Australian Capital Territory to New South Wales in 2007-08.

The largest net flow in 2007-08 was between New South Wales and Queensland with
Queensland gaining a net 14,900 from New South Wales, and the second largest net movement
was between Victoria and Queensland, with Queensland gaining a net 4,400 people from
Victoria.
7.16 Components of population Growth rate-2007-2008
NSW Vic. Qld SA WA Tas. NT ACT
% % % % % % % %

Natural Increase 0.58 0.71 0.80 0.49 0.89 0.50 1.33 0.91
Net overseas migration 0.89 1.11 0.98 0.90 1.64 0.31 0.45 0.49
Net interstate migration -0.32 -0.05 0.55 -0.28 0.23 0.07 0.56 -0.08
Total population growth 1.15 1.77 2.33 1.11 2.76 0.88 2.33 1.32

Source: ABS Migration, Australia (3412.0).

ABORIGINAL AND TORRES STRAIT ISLANDER POPULATION

There are no accurate estimates of the population of Australia before European settlement. Many
estimates were based on post-1788 observations of a population already reduced by introduced
diseases and other factors. Smith (1980) estimated the absolute minimum pre-1788 population at
315,000. Other estimates put the figure at over one million people, while recent archaeological
evidence suggests that a population of 750,000 could have been sustained.

Whatever the size of the Indigenous population before European settlement, it declined
dramatically under the impact of new diseases, repressive and often brutal treatment,
dispossession, and social and cultural disruption and disintegration (see the article Statistics on
the Indigenous Peoples of Australia, in Year Book Australia 1994). The decline of the
Indigenous population continued well into the 20th century.

More recently, changing social attitudes, political developments, improved statistical coverage
and a broader definition of Indigenous origin have all contributed to the increased likelihood of
people identifying as being of Aboriginal or Torres Strait Islander (Indigenous) origin. This is
reflected in the large increases in the number of people who are identified as being Indigenous,
particularly in the 1996 and 2001 Censuses, with increases in excess of those which can be
attributed to natural increase in the Indigenous population. However, this phenomenon has not
been an issue in the 2006 Census of Population and Housing.
7.17 Experimental Estimates of Indigenous Population(a)
1996 2001 2006
000 % 000 % 000 %

New South Wales 119.3 29.3 136.3 29.4 152.7 29.5

Victoria 26.3 6.5 30.0 6.5 33.5 6.5
Queensland 112.2 27.5 128.6 27.8 144.9 28.0
South Australia 22.6 5.5 25.4 5.5 28.1 5.4
Western Australia 56.8 13.9 64.3 13.9 71.0 13.7
Tasmania 14.6 3.6 16.5 3.6 18.4 3.6
Northern Territory 52.1 12.8 58.0 12.5 64.0 12.4
Australian Capital Territory 3.3 0.8 3.8 0.8 4.3 0.8
Australia(b) 407.3 100.0 463.1 100.0 517.0 100.0

(a) As at 30 June and based on the 2006 Census of Population and Housing.
(b) Includes Other Territories, i.e., Jervis Bay, Christmas Island and Cocos (Keeling) Island.
Source: ABS Experimental Estimates and Projections, Aboriginal and Torres Strait Islander Australians, 1991 to
2021 (3238.0)

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In developing estimates of the size and age structure of the Indigenous population, Census counts
are adjusted for undercount as well as other factors, including cases where Indigenous status was
not known. These estimates are referred to as 'experimental' estimates of the Indigenous
population.

Table 7.17 shows the distribution of the experimental estimated resident Indigenous population
by state and territory for 1996, 2001 and 2006. The estimates for 1996 and 2001 are reverse
survival estimates based on the June 2006 final Indigenous population estimates, and the
experimental Indigenous life tables for the period 2005-2007. The final estimates for 2006 are
based on the August 2006 Census of Population and Housing and their geographical distribution
is in map 7.18.

The final estimated resident Indigenous population at 30 June 2006, was 517,000 people or 2.5%
of the total Australian population. Indigenous people of Aboriginal origin contributed 90% of the
total Indigenous population; people of Torres Strait Islander origin comprised 6%, and those of
both Aboriginal and Torres Strait Islander origin comprised 4%.

Of the total Indigenous population at 30 June 2006, 152,700 (29%) people lived in New South
Wales, 144,900 (28%) in Queensland, 71,000 (15%) in Western Australia and 64,000 (13%) in
the Northern Territory. The Northern Territory had the largest proportion of its population who
were Indigenous (30%), compared with 4% or less for all other states and the Australian Capital
Territory.
7.18 Indigenous Population Distribution-2006(a)

The Indigenous population is a relatively young population, with a median age of 21 years,
compared with 37 years for the non-Indigenous population. The younger age structure of the
Indigenous population is shown in graph 7.19. In 2006, 38% of Indigenous people were aged
under 15 years compared with 19% of non-Indigenous people. People aged 65 years and over
comprised 3% of the Indigenous population and 13% of the non-Indigenous population.
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7.19 Age Distribution of the Indigenous and Non-Indigenous Population-June 2006 (a)

The age structure of the Indigenous population reflects higher rates of fertility, and deaths
occurring at younger ages. Although the total fertility rate among Indigenous women has fallen
in recent decades, from around 6.0 babies per woman in the 1960s to 2.1 babies per woman in
2005, then a slight increase to 2.4 babies per woman in 2007, it remains higher than the fertility
rate for the total Australian female population (1.9 babies per woman in 2007). In the period
2005-2007, life expectancy at birth was estimated to be 67.2 years for Indigenous males and 72.9
years for Indigenous females. This is well below the estimates of 78.5 years and 82.4 years for
total males and females respectively, for the same period. Indigenous life expectancy estimates
for 2005-07 are considerably higher than the previously published ABS estimates for the period
1996-2001 (59.4 years for Indigenous males and 64.8 years for Indigenous females). The
observed differences in life expectancy estimates should not be interpreted as measuring changes
in Indigenous life expectancy over time.
The latest projections of the Indigenous population, produced by the ABS for the period 2007 to
2021, are based on the results of the 2006 Census of Population and Housing. Assuming that
Indigenous life expectancy at birth remains constant at 67.3 years for males and 73.0 years for
females (which are the estimates for the 2006-07 financial year), Australia's Indigenous
population is projected to increase from 517,000 people in 2006 to 640,700 people in 2016, and
to 713,300 people in 2021 (low series). Under the assumption that Indigenous life expectancy
increases by 5.0 years between 2006 and 2021(i.e. an average increase of 0.3 years per year of
projection), the Indigenous population is projected to increase to 643,800 people in 2016, and to
721,100 people in 2021 (high series). The projected average annual growth rate of the
Indigenous population is 2.2% for both the low series and the high series. This projected growth
rate is slightly higher than the observed increase in the total Australian population for the year
ending December 2008 (1.9%).

Indigenous populations of all states and territories are projected to continue growing between
2006 and 2021. Queensland is projected to have the fastest growing Indigenous population
among all the Australian states/territories, with an average annual growth rate between 2.6% and
2.7%. This is followed by Victoria, the Australian Capital Territory and Tasmania (between
2.3% and 2.5%). The Northern Territory Indigenous population is projected to have the lowest
average growth rate (between 1.6% and 1.7%), while New South Wales is projected to grow at a
lower rate of about 2.1% to 2.2% per year. Although the June 2006 experimental estimates of
Indigenous population in New South Wales are higher than in Queensland (152,700 versus
144,900), because of higher average growth rate the Indigenous population in Queensland is
projected to surpass the New South Wales Indigenous population by the year 2016.

BIRTHS

In 2007, there were 285,200 births registered in Australia, resulting in a total fertility rate of 1.92
babies per woman. This was 19,300 (7.2%) more births than the number registered during 2006.
Until recently, Australia had been experiencing the second of two long periods of fertility decline
since 1901 - from 1907 to 1934, and from 1962 to 2001 (excluding a plateau from 1966 to 1971).
The total fertility rate reached a low of 1.73 babies per woman in 2001 and has increased since
then, to 1.92 babies per woman in 2007.

During the first decade of the 20th century, the total fertility rate remained at around 3.7 to 4.0
babies per woman, then consistently declined over the next two and a half decades. By 1934,
during the Depression, the total fertility rate fell to 2.1 babies per woman. It then increased
during the second half of the 1930s, as women who had deferred child-bearing in the Depression
years began to have children. Fertility increased through World War II and the 1950s, and
peaked in 1961 when the total fertility rate reached 3.5 babies per woman (graph 7.20).
 7.20 Total fertility rate(a), Australia

After 1961, the total fertility rate fell rapidly, to 2.9 babies per woman in 1966. This fall can be
attributed to changing social attitudes, in particular a change in people's perception of desired
family size, facilitated to an extent by the oral contraceptive pill becoming available. During the
1970s, the total fertility rate dropped further, falling to replacement level (2.1 babies per woman)
in 1976, below which it has since remained. This fall was more marked than the fall in the early-
1960s and has been linked to increasing participation of women in education and the labour
force, changing attitudes to family size, lifestyle choices and greater access to contraceptive
measures and abortion.
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In the late 1970s, the total fertility rate began to decline at a slower rate, continuing through the
1980s and 1990s, until reaching a low of 1.73 babies per woman in 2001. Since then, the total
fertility rate has increased to 1.92 babies per woman in 2007, the highest recorded since 1985.

According to World Population Prospects: The 2008 Revision by United Nations Population
Division (UNPD), the world average total fertility rate for the five-year period 2005-2010 is
estimated at 2.56 babies per woman. However, total fertility rates for individual countries vary
considerably. Many factors can influence a country's fertility rate, such as differences in social
and economic development and the prevalence of contraceptive use. In general, developing
countries have higher fertility rates than developed countries.

Over the last 30 years, fertility has declined in most countries. According to the United Nations,
Indonesia displayed a large decline in the average total fertility rate, from 4.73 in the period
1975-1980 to 2.19 in 2005-2010 (graph 7.21). During the period 2005-2010, Macao (SAR of
China) is projected to have one of the lowest average total fertility rates (0.95), followed by
Hong Kong (SAR of China) (1.02). Several European countries also have low fertility, including
the Ukraine (1.31), Poland (1.27), Italy (1.38), Germany (1.32) and the Russian Federation
(1.37). Although below the world average of 2.56, Australia's total fertility rate for 2007 of 1.92
babies per woman is comparable to other developed countries.

In contrast, many African countries have high fertility. Projections for the period 2005-2010
have Niger (7.15) among the highest. In South-East Asia, Timor-Leste (6.53) has one of the
world's highest fertility rates, increasing from a total fertility rate in the period 1975-1980 of 4.31
babies per woman.
7.21 Total fertility rates(a), Selected countries

Despite the recent increase in fertility rates, Australian women are continuing to delay child-
bearing. The median age at child-bearing increased from 27.7 years in 1987 to 29.4 years in
1997, then to 30.7 years in 2007. Since 2003, the median age at child-bearing has experienced
little variation, remaining between 30.5 and 30.8 years. Over the last 20 years there has been a
fall in the fertility rate of teenagers, from 20.6 babies per 1,000 teenage females in 1987 to 16.0
in 2007. Conversely, the fertility rate of women aged 40-44 years more than doubled, from 4.8
babies per 1,000 women in 1987 to 12.6 in 2007 (graph 7.22). All child-bearing ages
experienced higher fertility in 2007 than in 2006. In recent years, Australia's total fertility rate
has been increasing, resulting in a higher total fertility rate in 2007 than that experienced in the
last 20 years.
7.22 age-specific fertility rates

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An alternative to the ‘snapshot’ measure provided by the total fertility rate is the total number of
children ever born per woman. These data reveal a decline over time in the average number of
children ever born by age of women. While at younger ages the decline in the average number of
children may be related to the postponement of child-bearing, the average number of children
among women aged 40-44 years also declined. Completed fertility (the average number of births
a cohort of females have borne) for women born in 1955 show an average of 2.2 births per
woman. The ABS projections show that females born in 2007 would have an average of 1.8
births per woman, if current trends were to continue.

Table 7.23 provides summary measures of fertility for the period 1997 to 2007.
7.23 Selected summary measures of fertility
Registered births Crude birth rate(a) Total fertility rate(b) Exnuptial births(c)
'000 no. no. %

1997 251.8 13.6 1.8 28.1

1998 249.6 13.3 1.8 28.7
1999 248.9 13.1 1.8 29.2
2000 249.6 13.0 1.8 29.2
2001 246.4 12.7 1.7 30.7
2002 251.0 12.8 1.8 31.3
2003 251.2 12.6 1.7 31.6
2004 254.2 12.6 1.8 32.2
2005 259.8 12.7 1.8 32.2
2006 265.9 12.8 1.8 32.7
2007 285.2 13.5 1.9 33.4

(a) Births per 1,000 population.

(b) Births per woman.
(c) Births to unmarried mothers as a proportion of total births.
Source: ABS Births, Australia (3301.0)

DEATHS

In 2007, there were 137,900 deaths (70,600 males and 67,300 females) registered in Australia, an
increase of approximately 4,100 deaths (or 3.1%) compared with the number of deaths registered
in 2006 (133,700). Since 1987. the number of deaths registered has increased by around 0.5%
per year on average for males and 1.1% per year for females, with year to year fluctuations. The
steady increase in the number of deaths over time reflects the increasing size of the population
and, in particular, the increasing number of older people. With the continued ageing of the
population, the number of deaths is projected to continue to increase throughout the remainder of
the century (Series B, Population Projections, Australia, 2006 to 2101(3222.0)).

Despite the ageing of the population over the last 20 years, death rates have continued to decline
over the long-term. The crude death rate declined from 7.2 deaths per 1,000 population in 1987
to 6.4 deaths per 1,000 population in 2005, and has risen slightly since then, to 6.5 deaths per
1,000 population in 2007. Given the ageing of Australia's population, the overall decline in the
crude death rate indicates a considerable decline in age-specific death rates over the period.
The standardised death rate (SDR), which eliminates the effect of changes in the age structure of
a population over time, was 6.0 deaths per 1,000 standard population in 2007, the same as the
previous two years and down by 34% from 1987 (9.1). The rates for 2005, 2006 and 2007 are the
lowest on record.

Life expectancy

Life expectancy is the average number of additional years a person of a given age and sex might
expect to live if the age-specific death rates of the given period were to continue throughout his
or her remaining lifetime.

Over the past century, male life expectancy at birth has increased by 24 years, from 55.2 years in
1901-1910 to 79.0 years in 2005-2007 (graph 7.24). Similarly, female life expectancy at birth has
increased by 25 years, from 58.8 years to 83.7 years. The increase in life expectancy at birth
reflects declining death rates at all ages.
7.24 Life expectancy at birth

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Improvements in living conditions in the early-20th century, such as better water supplies,
sewerage systems, food quality and health education resulted in an overall decline in mortality.
The continuing reduction in mortality in the latter half of last century is attributed to improving
social conditions and advances in medical technology such as mass immunisation and
antibiotics. The past two decades in particular have seen further increases in life expectancy.
These increases are due in part to lower infant mortality, fewer deaths among young adults from
motor vehicle accidents and fewer deaths among older men from heart disease. The reduction in
the number of deaths from heart disease has been related to medical advances and behavioural
changes such as improvements in diet and a reduction in smoking.

During the 20th century, life expectancy of new-born girls was consistently higher than that of
new-born boys, with the difference peaking at about seven years in the 1970s and early-1980s.
The difference was largely due to the significant decline in heart disease, stroke and respiratory
disease mortality among women. In recent years, the gap in life expectancy between new-born
males and females narrowed to around five years. This can be attributed to the large reductions
in death rates of males aged 45 years and over, and particularly to the reduction in heart disease
deaths among males.

The increase in life expectancy for older persons has implications for retirement planning and
income policies. Life expectancy of 65 year old males increased from 15 years in 1985-1987 to
19 years in 2005-2007, while life expectancy of 65 year old females increased from 19 years to
22 years during the same period.

Australians have a life expectancy at birth which compares well with that experienced in other
developed nations. Life expectancy at birth of Australian males (79.0 years) is exceeded only by
Iceland, Hong Kong (SAR of China) and Switzerland. Life expectancy at birth of Australian
females (83.7 years) is exceeded by Japan, Hong Kong (SAR of China), France, Switzerland,
Italy and Spain. Combined Australian male and female life expectancy of new-born babies for
2005-2010 was 81.5 years. This was higher than the level for Canada (80.7 years), New Zealand
(80.2 years), the United Kingdom (79.4 years) and the United States of America (79.2 years).

A life table is a statistical model that is constructed from the death rates of a population at
different ages. It is frequently used to express death in terms of the probability of dying. In its
simplest form, a life table is generated from age-specific death rates and the resulting values are
used to measure mortality, survivorship and life expectancy. Table 7.25 shows the expectations
of additional years of life at specific ages for Australian males and females using deaths for the
period 2005-2007.
7.25 Expectancy of life at specific ages(a)
Males Females

At exact age (years) years years

0 79.0 83.7
10 69.6 74.2
20 59.7 64.3
30 50.2 54.5
40 40.7 44.7
50 31.4 35.2
60 22.6 26.0
70 14.7 17.4
80 8.3 10.0
90 4.2 4.8
100 2.4 2.6

(a) Calculated using data for the three years 2005-07.

Source: ABS Deaths, Australia (3302.0).
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Table 7.26 provides selected summary measures of mortality for the period 1997 to 2007.
7.26 Selected summary measures of mortality
Life expectancy at birth(a)

Registered deaths Crude death rate(b) Infant mortality rate(c) Males Females
'000 no. no. years years

1997 129.4 7.0 5.3 75.6 81.3

1998 127.2 6.8 5.0 75.9 81.5
1999 128.1 6.8 5.7 76.2 81.8
2000 128.3 6.7 5.2 76.6 82.0
2001 128.5 6.6 5.3 77.0 82.4
2002 133.7 6.8 5.0 77.4 82.6
2003 132.3 6.6 4.8 77.8 82.8
2004 132.5 6.6 4.7 78.1 83.0
2005 130.7 6.4 5.0 78.5 83.3
2006 133.7 6.5 4.7 78.7 83.5
2007 137.9 6.5 4.2 79.0 83.7

(a) Data are based on 3-year averages, with the year shown being the last year of the 3-year period.
(b) Deaths per 1,000 population.
(c) Infant deaths per 1,000 live births.
Source: ABS Australian Historical Population Statistics (3105.0.65.001); ABS Deaths, Australia (3302.0).

INTERNATIONAL MIGRATION

Each year Australia's population increases as a result of net overseas migration and natural
increase (the number of births minus the number of deaths). Net Overseas Migration (NOM) is
the net gain or loss of population through immigration to Australia and emigration from
Australia. It is based on an international travellers' duration of stay being in or out of Australia
for 12 months or more. In 2007-08, there were 442,100 arrivals that contributed to NOM and
228,400 departures, providing a net gain of 213,700 people (Table 7.27).

Since 2006-07, Australia has employed an improved method of estimating NOM where a
traveller can be added to or subtracted from Australia's population through NOM if the traveller
has stayed in or been absent from Australia for a period of 12 months or more over a 16 month
period. The implementation of this method has resulted in a break in time series with earlier
NOM estimates based on a 12 out of 12 months rule.
7.27 Net Overseas Migration Components
2000-01 2002-03 2004-05 2006-07 2007-08(a)
'000 '000 '000 '000 '000

NOM Arrivals 348.6 392.9 431.1 437.5 442.1

NOM Departures 212.9 276.4 307.3 204.7 228.4
NOM(b) 135.7 116.5 123.8 232.8 213.7

(a) Estimates for 2007-08 are preliminary.

(b) Estimates for NOM contain a break in time series. Estimates from 2006-07 use an improved methodology based
on the 12/16 rule, all years prior to this use the 12/12 rule.
Source: ABS Migration, Australia (3412.0).

Until recently, Australia's population growth has predominantly come from natural increase.
However, since 1998-99, NOM comprised 45% or more of Australia's population growth, with
2003-04 being the exception (43%). In 2007-08, a NOM estimate of 213,700 people represented
59% of Australia's population growth for the year. The peaks and troughs in Australia's total
population growth are clearly driven by NOM as shown in graph 7.28.
 7.28 Growth and COMPONENTS OF POPULATION change, Australia

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The main effect of NOM on the age structure of Australia's population is that it results in a larger
proportion of persons of early working age (14-34 years). In 2007-08, persons aged 15-34 years
comprised 61% of NOM compared with 28% of Australia's total population. Persons aged 0-14
years comprised 20% of NOM and 19% of Australia's population, and persons aged 65 years and
over comprised 0.5% of NOM and 13% of Australia's population (graph 7.29).
7.29 Australian and Net Overseas Migration Population Structures, Age and sex-2007-08(a)

During 2007-08, travellers who contributed to NOM were born in over 200 countries. Migrants
born in China were the highest contributors to Australia's population with a positive NOM of
28,700 persons. This was followed closely by migrants born in New Zealand (27,400), the
United Kingdom (24,000) and India (23,900). Historically, the United Kingdom and New
Zealand have ranked as the major source countries. However, in 2005-06 China moved into the
top position.

In 2007-08, of the top 10 countries of birth contributing to NOM, only those who were born in
Australia had more departures than arrivals, with 19,800 persons being subtracted from
Australia's population (as seen in graph 7.30).
 7.30 NET OVERSEAS MIGRATION, Top 10 Countries of Birth: Australia - 2007-08(a)

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The United Nations' World Population Prospects: The 2008 Revision, presents international
migration statistics averaged over five years to improve comparability between countries. As
with Australia, countries such as Canada, the United States of America and United Kingdom
experienced high net international migration rates in 2005-10 (rates above 3.0 per 1,000
population). In numeric terms, in the 2005-10 period, for selected countries, the gains from net
international migration ranged from an average 10,000 persons per year for New Zealand to one
million persons for the United States of America. The losses ranged from 6,000 persons for the
Republic of (South) Korea to 346,000 persons for China (table 7.31).
7.31 NET INTERNATIONAL MIGRATION(a), Selected countries
Percentage change,
2000-05 2005-2010
2000-05 to 2005-10

Migration
Number Number Migration rate(b)
rate(b)
'000 rate '000 rate %

Australia 128 6.5 100 4.8 -21.9

Canada 218 6.9 210 6.3 -3.7
China -412 -0.3 -346 -0.3 -16.0
India -308 -0.3 -200 -0.2 -35.1
Japan 16 0.1 30 0.2 87.5
Korea, Republic of -13 -0.3 -6 -0.1 -53.8
Malaysia 30 1.2 26 1.0 -13.3
New Zealand 21 5.1 10 2.4 -52.4
South Africa 140 3.0 140 2.8 -
United Kingdom 190 3.2 190 3.1 -
United States of
1 135 3.8 1 010 3.3 -11.0
America

- nil or rounded to zero (including null cells)

(a) Medium variant.
(b) Net overseas migration per 1,000 population.
Source: United Nations Population Division, World Population Prospects: The 2008 Revision. Accessed 17 Sep
2009.
COUNTRY OF BIRTH

Australia's population has increased each year since the end of World War II, due to a
combination of high post-war fertility and high levels of migration. In 1901, 23% of Australia's
population was born overseas. By 1947, the proportion of the overseas-born population had
declined to 10%. The creation of a national government immigration portfolio in 1945
accompanied a gradual increase in the proportion of overseas-born Australians, reaching 22% by
1977. During the 1980s, 1990s and the early 2000s the overseas-born population fluctuated
between 21% and 23%. At 30 June 2008, the number of overseas-born Australians was 5.5
million, representing just over one-quarter (26%) of the total population (graph 7.32).
7.32 AUSTRALIA'S POPULATION BORN OVERSEAS(a)(b)

The past 25-30 years have seen patterns of immigration change and the diversity of countries of
birth increase. Of the overseas-born population, the United Kingdom remains the largest source
country, despite having fallen from 34% of the overseas-born population in 1981 to 21% in
2008. Some of the older migrant streams, such as people born in Italy and Greece, have declined
in absolute numbers as their populations aged and the number of deaths exceeded net gains in
population from more recent migration.

In contrast, over the same time frame, the New Zealand-born population living in Australia
nearly trebled, and in 2008 was the second largest overseas-born group making up 9% of the
overseas-born population. Some other migrant streams that have increased their proportion over
recent decades include those born in China, India, the Philippines, South Africa, and Malaysia
(see table 7.33). For example, the China-born population increased twelve fold, from 25,200
people in 1981 to 313,600 people in 2008 (making up 6% of the overseas-born population from
1% in 1981). The India-born population increased its share from 1% in 1981 (41,000 people) to
4% in 2008 (239,300 people).
7.33 Main Countries of Birth(a)
1954(b) 1961(b) 1971(b) 1981(b) 1996(c) 2001(c) 2006(c) 2008(c)
'000 '000 '000 '000 '000 '000 '000 '000

United Kingdom(d) 664.2 755.4 1 081.3 1 075.8 1 164.1 1 126.9 1 153.3 1 166.5
New Zealand 43.4 47.0 74.1 160.7 315.1 394.1 476.7 494.6
China(e) 10.3 14.5 17.1 25.2 121.1 157.0 203.1 313.6
India 12.0 14.2 28.7 41.0 84.8 103.6 153.6 239.3
Italy 119.9 228.3 288.3 275.0 259.1 238.5 220.5 221.7
Vietnam na na na 40.7 164.2 169.5 180.4 193.3
Philippines 0.2 0.4 2.3 14.8 102.7 112.2 135.6 155.1
South Africa 6.0 7.9 12.2 26.5 61.7 86.9 118.8 136.2
Greece 25.9 77.3 159.0 145.8 141.8 132.5 125.8 130.5
Germany 65.4 109.3 110.0 109.3 120.8 117.5 114.9 126.5
Malaysia 2.3 5.8 14.4 30.5 83.0 87.2 103.9 120.1
Netherlands 52.0 102.1 98.6 95.1 95.3 91.2 87.0 90.3
Lebanon 3.9 7.3 23.9 49.4 77.6 80.0 86.6 89.1
Hong Kong (SAR of China) 1.6 3.5 5.4 15.3 77.1 75.2 76.3 87.5
Total overseas-born 1 285.8 1 778.3 2 545.9 2 950.9 4 258.6 4 482.1 4 956.9 5 485.9
Australian-born 7 700.1 8 729.4 10 173.1 11 388.8 14 052.1 14 931.2 15 648.6 15 945.9
Total population(f) 8 986.5 10 508.2 12 719.5 14 516.9 18 310.7 19 413.2 20 605.5 21 431.8

na not available
(a) Country selection based on population at 30 June 2008.
(b) Census counts.
(c) Estimated resident population at 30 June.
(d) Includes Ireland in 1954, 1961 and 1971.
(e) Excludes SARs and Taiwan Province.
(f) Includes country of birth ‘Not stated’ and ‘At sea’.
Source: ABS Migration, Australia (3412.0).
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The 2006 Census data show that 26% of people born in Australia had at least one overseas-born
parent. Of these, 44% had both parents born overseas, 34% had their father (but not their mother)
born overseas and 23% had their mother (but not their father) born overseas (graph 7.34).
7.34 BIRTHPLACE OF PARENTS OF AUSTRALIAN-BORN PEOPLE - 2006

MARRIAGES, DIVORCES AND DE FACTO RELATONSHIPS

Marriages

Marriage rates in Australia have fluctuated since 1901, broadly in response to prevailing
economic and social conditions and changing age structures over time. The crude marriage rate
(the number of marriages registered in a calendar year per 1,000 population) has fallen in times
of depression or recession (e.g. in the 1930s) and increased at other times such as during, and
immediately after, the two world wars. Falls in the crude marriage rate since 1970 can be mainly
attributed to changes in attitudes to marriage and living arrangements that have occurred since
then.
7.35 Crude marriage rate

There were 118,756 marriages registered in Australia in 2008, resulting in a crude marriage rate
of 5.5 marriages per 1,000 population. The highest crude marriage rate recorded was 12.0
marriages per 1,000 population in 1942. Fluctuations in the crude marriage rate between 1958
and 2008 are shown in graph 7.35, which suggest that crude marriage rates in Australia have
remained steady over the last few years.

The median age of people married in 2008 was 31.6 years for males and 29.3 years for females.
Until recently, median age at marriage was increasing gradually over time for both males and
females. Since 2006, the median age for males has remained at 31.6 years. The median age for
females has been stable at 29.3 years since 2005. In 2008, the median age of males married for
the first time was 29.6 years, and 27.7 years for females. The gradual increase in the age profile
of people marrying for the first time is shown in graph 7.36. Part of this increase can be
attributed to the increasing incidence of de facto relationships. Another factor is young people
staying in education longer.
 7.36 Median age at first marriage

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Marriage data for 2008 reflect a continuation of a 30-year trend of more Australian couples
living together prior to registered marriage. In 1975, 16.0% of couples lived together prior to
marriage, while 77.7% of couples lived together prior to marriage in 2008. Widowed males who
remarried in 2008 were the least likely to have lived together before marriage and divorced
males and females were the most likely. Only 58.2% of widowed males and 64.4% of widowed
females who remarried in 2008 lived together before marrying their partner, while the proportion
of those divorced who lived together prior to remarriage was 80.8% for males and 81.0% for
females.

Table 7.37 shows summary measures for marriages between 1998 and 2008.
7.37 Selected summary measures of marriage
Median age at marriage

Registered marriages Crude marriage rate(a) Males Females

'000 rate years years

1998 110.6 5.9 29.8 27.7

1999 114.3 6.0 29.0 27.9
2000 113.4 5.9 30.3 28.3
2001 103.1 5.3 30.6 28.6
2002 105.4 5.4 31.0 28.9
2003 106.4 5.3 31.2 29.1
2004 111.0 5.5 31.5 29.2
2005 109.3 5.4 31.5 29.3
2006 114.2 5.5 31.6 29.3
2007 116.3 5.5 31.6 29.3
2008 118.8 5.5 31.6 29.3

(a) Marriages per 1,000 population.

Source: ABS Marriages and Divorces, Australia (3310.0); ABS Marriages, Australia (3306.0.55.001).
De facto relationships

Between 2001 and 2006, the census count of people aged 15 years and over in de facto
relationships rose by 25% from 951,500 to 1,193,400. This was marginally lower than the
increase between 1996 and 2001 (28%). In 2006, de facto partners represented 15% of all people
living as socially married - that is, all those either in a registered marriage or a de facto
relationship - up from 12% in 2001 and 10% in 1996. Total de facto partners in 2006 represented
7% of all persons aged 15 years and over, up from 6% in 2001 and 5% in 1996. These rises may
be due to both increases in the number of de facto partners and in the willingness of people to
identify themselves as living in de facto relationships. In 2006, the median age of males in de
facto relationships was 35.3 years while the median age of females was 33.3 years. Graph 7.38
shows the age distribution of male and female partners in de facto relationships in 2006.
7.38 De facto partners(a) - 2006

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De facto partnering has arisen as an alternative living arrangement prior to or instead of

marriage, and also following separation, divorce or widowhood. Of all people in de facto
relationships in 2006, 70% had never been in a registered marriage and 27% were either
separated or divorced. The likelihood of being never married was higher among people aged
under 35 years, counterbalanced by higher proportions of separated and divorced de facto
partners aged 35 years and over (graph 7.39).
 7.39 Persons in de facto relationships(a) - 2006

Divorces

For most of the 20th century, there was a slow but steady rise in the crude divorce rate (the
number of divorces in a calendar year per 1,000 population), increasing from 0.1 divorces per
1,000 population for each year between 1901 and 1910 to 0.8 divorces per 1,000 population
between 1961 and 1970. The most important factor involved in the higher divorce rates in the
latter quarter of the century was the introduction of the Family Law Act 1975 (Commonwealth)
which came into operation on 5 January 1976. This legislation allows only one ground for
divorce - irretrievable breakdown of the marriage, measured as the separation of the spouses for
at least one year.

Following the implementation of this law, there was a large increase in the divorce rate in 1976.
The rate then declined over the next three years as the backlog of applications was cleared. Since
then, the crude divorce rate has remained between 2.2 and 2.9 divorces per 1,000 population
(graph 7.40). In 2008, the crude divorce rate was 2.2 divorces per 1,000 population.
7.40 Crude divorce rate
The median duration of marriage to both separation and divorce has increased since the late
1980s, revealing that marriages are lasting longer on average (graph 7.41). In 2008, the median
duration of marriage to separation was 8.8 years compared with 7.8 years in 1998, while the
median duration of marriage to divorce was 12.3 years compared with 11.2 years in 1998. The
2008 rates are slightly lower than the peaks around 2005 or 2006.
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7.41 Median duration of marriage to separation and divorce

In 2008, 6.0% of divorces involved separation within the first year of marriage, 32.7% within the
first 5 years and a further 21.7% were separated within 5 to 9 years of marriage. Of divorcing
couples in 2008, 16.8% were married less than 5 years, 24.6% between 5 and 9 years and 58.6%
were married for 10 years or more. Around 17.2% of divorces occurred to couples who had been
married for 25 years or more.

Table 7.42 shows summary measures for divorces in the period 1998 to 2008.
7.42 Selected summary measures of divorces
Median age at divorce

Divorces granted Crude divorce rate(a) Males Females

'000 rate years years

1998 51 370 2.7 40.5 37.8

1999 52 566 2.8 40.9 38.2
2000 49 906 2.6 41.4 38.6
2001 55 330 2.9 41.8 39.1
2002 54 004 2.7 42.2 39.5
2003 53 145 2.7 42.6 39.9
2004 52 747 2.6 43.0 40.3
2005 52 399 2.6 43.5 40.8
2006 51 375 2.5 43.9 41.1
2007 47 963 2.3 44.2 41.3
2008 47 209 2.2 44.1 41.4
(a) Divorces per 1,000 population.
Source: ABS Marriages and Divorces, Australia (3310.0); ABSDivorces, Australia (3307.0.55.001).
HOUSEHOLDS AND FAMILIES

Households

Australian households have changed considerably in number, size and composition over the last
95 years. During this period, the Census number of private households increased from 894,400 in
1911 to 7.6 million (occupied private dwellings) in 2006, whereas the average number of persons
per household declined from 4.5 in 1911 to 2.6 in 2006. Much of this decline can be attributed to
reductions in completed family size and the increase in one-person and two-person households
(graph 7.43).
7.43 Average household size

Average household size is projected to continue decreasing to 2.3 people per household by 2026.
It should be noted that the projected household sizes in graph 7.44 and other household data
presented here for the years 2001 to 2026 are based on ABS Household and Family Projections
Series II, derived from the 2001 estimated resident population data in conjunction with the 2001
Census data, and therefore differ from the 2006 Census counts of households and families.
 7.44 Projected average household size

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There has been considerable growth in one and two-person households over the last three
decades. The proportion of one-person households increased from 15.7% of households in the
1976 Census to 24.4% in the 2006 Census. The proportion of two-person households also
increased from 28.1% of households in 1976 to 34.1% in 2006. The major decline during this
period occurred in the number and proportion of households with five or more persons. The
number of one-person households has grown largely as a result of population ageing combined
with longer life expectancy. Population ageing, increased childlessness among couples and an
increase in the number of one parent families also contributed to the increase in the number of
two-person households.
7.45 Household proportions, By number of persons living

Projections show the number of households in Australia will be growing to 10.4 million by 2026
(graph 7.46). Lone person households are projected to increase to 3.1 million (30.2% of all
households) in 2026. This represents the fastest projected increase of all household types over
the period 2001 to 2026. The ageing of the population coupled with the longer life expectancy of
women over men, increases in separation and divorce, and the delay of marriage are some of the
factors contributing to the growth in lone person households.

Family households are projected to remain the most common type of household, increasing from
5.3 million in 2001 to 6.9 million in 2026. However, as a proportion of all households, family
households are projected to decrease from 71.5% in 2001 to 66.3% in 2026.
7.46 Projected number of households, By household type

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7.47 Families, By selected family type
 7.48 Projected families, By selected family type

Families

Between the 2001 and 2006 Censuses, the number of families increased from 4.9 million in 2001
to 5.2 million in 2006. Couples with children continued to be the most common family type over
this period. However, as a proportion of all families, couple families with children decreased. In
2001, couple families with children made up 47.0% (2.3 million families) of all families while in
2006, this had decreased to 45.3% (2.4 million families) (graph 7.47). Other family types
increased in number between 2001 and 2006. The number of couple families without children
increased by 10.2%, from 1.8 million families in 2001 to 1.9 million families in 2006. One
parent families also increased, from 762,600 in 2001 to 823,300 in 2006, an increase of 7.9%.

Between 2001 and 2026, the number of couple families with children is projected to increase
slowly (graph 7.48). This scenario reflects a gradual trend away from this type of family and is
related to increasing numbers of couple families without children and increasing numbers of one
parent families.

The number of couple families with children is projected to increase to 2.6 million in 2026
(37.2% of all families). Couple families without children are projected to experience the largest
and fastest increases of all family types in Australia. As a result, couple families without children
are projected to outnumber couple families with children in 2011. Couple families without
children are projected to increase to 3.1 million families in 2026 (44.3% of all families). One
parent families are projected to increase to 1.2 million in 2026.

BIBLIOGRAPHY
ABS PRODUCTS

Australian Demographic Statistics (3101.0)

Australian Historical Population Statistics (3105.0.65.001)

Births, Australia (3301.0)

Census of Population and Housing: Population Growth and Distribution,

Australia, 2006 (2035.0)

Deaths, Australia (3302.0)

Divorces, Australia (3307.0.55.001)

Experimental Estimates of Aboriginal and Torres Strait Islander

Australians, Jun 2006 (3238.0.55.001)

Experimental Estimates and Projections, Aboriginal and Torres Strait

Islander Australians, 1991 to 2021 (3238.0)

Experimental Life Tables for Aboriginal and Torres Strait Islander

Australians, 2005-2007 (3302.0.55.003)

Household and Family Projections, Australia, 2001 to 2026 (3236.0)

Marriages, Australia (3306.0.55.001)

Marriages and Divorces, Australia (3310.0)

Migration, Australia (3412.0)

Population by Age and Sex, Australian States and Territories (3201.0)

Population Estimates: Concepts, Sources and Methods, 2009

(3228.0.55.001)

Population Projections, Australia, 2006 to 2101 (3222.0)

Regional Population Growth, Australia (3218.0)

Year Book, Australia 1988 (1301.0)

Year Book, Australia 1994 (1301.0)

Year Book, Australia 2008 (1301.0)

REFERENCES

Smith LR 1980, 'The Aboriginal Population in Australia', Australian National

University Press for the Academy of Social Sciences in Australia, Canberra

WEBSITES

United Nations Population Division (UNPD), 'World Population Prospects: the

2008 revision', last viewed September 2009, <http://www.un.org>

Labour
INTRODUCTION
The information contained in this chapter presents a picture of the labour market in Australia.
Unlike other statistics that have a particular economic or social focus, labour statistics cut across
both dimensions, and in so doing they provide useful insights into economic and community life
in Australia.

This chapter provides a broad overview of the Australian labour market. It briefly describes key
labour statistics concepts and measures (e.g. employment, unemployment and labour
underutilisation, hours worked, job vacancies, earnings, industrial disputes); highlights the main
features of the Australian labour market in 2008-09; examines developments in the Australian
labour market over the medium and long-term; and presents more detailed analysis of a number
of issues impacting on the Australian labour market.

The chapter contains two articles - Independent Contractors and Interstate Commuters.
LABOUR MARKET STATISTICS

Most labour market statistics focus on some aspect of labour demand or labour supply. In
Australia, surveys of businesses conducted by the Australian Bureau of Statistics (ABS) are the
primary source of data on labour demand. The types of data collected through business surveys
include labour costs, earnings and job vacancies. The ABS population census and household
surveys provide extensive information about the size and characteristics of labour supply; the
major source is the monthly Labour Force Survey (LFS) and the on-going program of
supplementary surveys. Information obtained through these types of collections include data on
labour force status, employment characteristics as well as demographic characteristics, such as
age. Diagram 8.1 illustrates how labour statistics from ABS household and business surveys
relate to the labour market.
The concepts and definitions underlying Australian labour statistics are based on the
conventions, recommendations and guidelines developed and maintained by the International
Labour Organisation and the United Nations Statistical Office. Australian labour statistics
comply in almost every respect with these international standards.
8.1 Australian labour statistics framework

LABOUR FORCE

The labour force represents the key official measure of the total supply of labour available to the
labour market during a given short reference period. It represents the labour available for the
production of economic goods and services. Therefore, people in the labour force are also
referred to as the 'currently economically active population'.

The Australian labour force framework classifies people into three mutually exclusive
categories: employed; unemployed; and not in the labour force. The employed and unemployed
categories together make up the labour force, which gives a measure of the number of people
contributing to the used or unused supply of available labour. The third category (not in the
labour force) represents the currently economically inactive population. This framework is
illustrated in diagram 8.2. Further details about the Australian labour force framework, and the
specific criteria for classifying people to these three basic categories, are available in
ABS Labour Statistics: Concepts, Sources and Methods (6102.0.55.001).

For the purpose of compiling Australian labour force statistics, the population is restricted to
people in the civilian population aged 15 years and over. This practice is consistent with
international guidelines for the collection of labour statistics.
8.2 Australian labour force framework(a)

Back to top
Characteristics of the labour force

The size and composition of the labour force are constantly changing. Changes in the size of the
labour force are caused by changes in labour force participation as well as changes in the size
and composition of the adult population. Between June 2008 and June 2009 the labour force
grew by 1.5%. During the same period the civilian population aged 15 years and over grew by
1.8%. The difference between these two growth rates reflects a decrease in the labour force
participation rate over this period.

The labour force participation rate is one of the most important indicators for analysing the
overall level of labour market activity. The participation rate is calculated by dividing the total
number of people in the labour force by the total number of people in the civilian population
aged 15 years and over. Analysis of participation rates, particularly by age, sex and family type,
provides the basis for monitoring changes in the size and composition of the labour supply.

During the last two decades the overall labour force participation rate has increased slowly,
rising from 62.6% in 1988-89 to 65.4% in 2008-09. This long-term rise in the labour force
participation rate has been driven by an increase in the female participation rate. The female
participation rate increased from 50.4% in 1988-89 to 58.7% in 2008-09. In contrast, the male
participation rate decreased from 75.2% to 72.3% over the same period. Graph 8.3 provides male
and female participation rates between 1988-89 and 2008-09, and shows the convergence of
male and female participation rates over this period.
8.3 labour force participation rates(a)

Underlying these trends in male and female participation rates are varying movements in the age-
specific participation rates. As shown in table 8.4, male and female participation rates were
similar in the 15-19 year age group. Participation rates for men and women rose as young people
moved from education and training to employment. For men, participation rates peaked in the
25-34 and 35-44 year age groups, while female participation rates peaked in the 45-54 year age
group.

A comparison of age-specific participation rates for women shows that labour force participation
rates have increased for all age groups except the 15-19 and 20-24 year age groups. While over
the last 20 years there has been a considerable increase in the labour force participation of
women in their peak child-bearing years (the 25-34 year age group), the largest gains have been
in the participation of older women. During the last two decades, the participation rate of women
aged 55-64 years increased by 28.1 percentage points and for women aged 45-54 years by 19.6
percentage points.

Participation rates for men declined between 1988-89 and 2008-09 for almost all age groups. The
exceptions were for men aged 55-64 years (61.7% to 68.6%) and men aged 65 years and over
(9.1% to 14.5%).

Back to top

8.4 LABOUR FORCE PARTICIPATION RATES(a), By age

MALES FEMALES

1988-89 2008-09 1988-89 2008-09

Age group (years) % % % %

15-19 60.8 57.2 58.9 58.9

20-24 90.0 84.6 77.3 77.3
25-34 94.4 91.9 63.4 74.0
35-44 94.1 91.3 68.7 75.5
45-54 88.9 88.6 58.1 77.7
55-64 61.7 68.6 23.5 51.6
65 and over 9.1 14.5 2.3 5.6
Total 75.2 72.3 50.4 58.7

(a) Annual averages.

Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).

During the period 2004-05 to 2008-09, the total number of employed people grew by 9.8% to
10.8 million (table 8.5). This comprised an increase of 9.2% in the level of full-time employment
and an increase of 11.5% in the level of part-time employment. Part-time employed people
represent more than a quarter (29%) of all employed people. Women account for the majority of
the part-time workforce (71% of all part-time workers).

The unemployment rate fell from 5.2% in 2004-05 to 5.0% in 2008-09. The unemployment rate
for women was slightly higher than for men in 2008-09 (5.0% compared with 4.9%).
8.5 LABOUR FORCE STATUS(a)
Employed Unemployed

Full- Part- Full- Part- Labour Civilian Unemploy- Participa-

Total Total
time time time time force population ment rate tion rate
'000 '000 '000 '000 '000 '000 '000 '000 % %

MALES

2004-
4 628.2 799.3 5 427.6 229.2 59.4 288.7 5 716.2 7 965.0 5.0 71.8
05
2005-
4 737.9 821.0 5 558.9 225.3 60.1 285.4 5 844.3 8 101.0 4.9 72.1
06
2006-
4 848.1 865.8 5 713.9 201.4 53.8 255.1 5 969.1 8 244.2 4.3 72.4
07
2007-
4 969.7 885.8 5 855.5 183.7 55.7 239.5 6 095.0 8 393.8 3.9 72.6
08
2008-
4 985.1 899.0 5 884.1 241.5 61.3 302.7 6 186.9 8 553.4 4.9 72.3
09

FEMALES

2004-
2 415.7 1 984.7 4 400.3 155.5 95.1 250.6 4 651.0 8 248.4 5.4 56.4
05
2005-
2 482.0 2 071.3 4 553.3 148.2 95.8 244.0 4 797.3 8 380.0 5.1 57.2
06
2006-
2 598.8 2 093.4 4 692.2 145.6 92.1 237.7 4 929.9 8 518.0 4.8 57.9
07
2007-
2 678.8 2 144.9 4 823.7 134.1 98.1 232.2 5 055.9 8 660.2 4.6 58.4
08
2008-
2 705.6 2 203.8 4 909.4 159.5 99.9 259.4 5 168.8 8 809.7 5.0 58.7
09

PERSONS

2004-
7 043.9 2 784.0 9 827.9 384.7 154.5 539.3 10 367.2 16 213.3 5.2 63.9
05
2005-
7 219.9 2 892.3 10 112.2 373.5 155.9 529.4 10 641.7 16 481.0 5.0 64.6
06
2006-
7 446.9 2 959.2 10 406.1 347.0 145.9 492.9 10 899.0 16 762.2 4.5 65.0
07
2007-
7 648.5 3 030.7 10 679.2 317.8 153.8 471.7 11 150.9 17 054.0 4.2 65.4
08
2008-
7 690.7 3 102.8 10 793.5 401.0 161.2 562.2 11 355.7 17 363.2 5.0 65.4
09

(a) Annual averages.

Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).
Back to top

Labour force participation, employment and unemployment vary across states and territories, and
across capital cities and regional areas. Table 8.6 shows labour force status by state/territory and
capital city/balance of state for 2008-09.

In 2008-09, of the states and territories, Tasmania had the lowest participation rate (61.9%) while
the Northern Territory had the highest participation rate (73.6%). The Australian Capital
Territory had the lowest unemployment rate (2.9%) and New South Wales had the highest
unemployment rate (5.7%).

All states had lower unemployment rates and higher participation rates in the capital cities than
in the balance of states, except South Australia, where in Adelaide the unemployment rate was
higher and the participation rate was lower than in the balance of South Australia.
8.6 LABOUR FORCE STATUS(a), By state and territory - 2008-09
Civilian
Employed Total Labour population Unemploy- Participation
Unemployed
full-time employed force aged 15 and ment rate rate
over
Capital
city/balance of ’000 ’000 ’000 ’000 ’000 % %
state
Sydney 1 635.4 2 221.9 131.6 2 353.5 3 567.1 5.6 66.0
Balance of New
805.1 1 174.4 72.2 1 246.6 2 092.1 5.8 59.6
South Wales
New South Wales 2 440.5 3 396.3 203.8 3 600.1 5 659.2 5.7 63.6
Melbourne 1 414.3 1 994.5 106.1 2 100.6 3 197.4 5.0 65.7
Balance of Victoria 436.1 662.9 36.7 699.6 1 139.5 5.2 61.4
Victoria 1 850.4 2 657.4 142.8 2 800.2 4 336.9 5.1 64.6
Brisbane 750.4 1 024.3 42.0 1 066.3 1 533.6 3.9 69.5
Balance of
862.1 1 202.9 60.7 1 263.6 1 913.6 4.8 66.0
Queensland
Queensland 1 612.5 2 227.2 102.7 2 329.9 3 447.2 4.4 67.6
Adelaide 392.3 574.2 35.9 610.1 969.7 5.9 62.9
Balance of South
150.2 218.4 9.4 227.7 348.1 4.1 65.4
Australia
South Australia 542.6 792.5 45.3 837.8 1 317.7 5.4 63.6
Perth 633.7 881.9 33.9 915.8 1 310.3 3.7 69.9
Balance of Western
207.9 287.6 11.9 299.5 446.9 4.0 67.0
Australia
Western Australia 841.6 1 169.5 45.8 1 215.4 1 757.2 3.8 69.2
Hobart 69.7 102.8 4.5 107.3 170.5 4.2 62.9
Balance of
93.1 135.5 6.9 142.4 232.6 4.8 61.2
Tasmania
Tasmania 162.8 238.2 11.4 249.6 403.2 4.6 61.9
Northern Territory 93.1 116.6 4.4 121.0 164.3 3.7 73.6
Australian Capital
147.2 195.7 5.9 201.6 277.5 2.9 72.7
Territory
Australia 7 690.7 10 793.5 562.2 11 355.7 17 363.2 5.0 65.4

(a) Annual averages.

Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).

In 2008-09 there were 11.4 million people in the Australian labour force, of whom over a quarter
(27%) were born overseas (table 8.7). The labour force participation rate of people born overseas
was 61.5% compared with 68.9% for people born in Australia. This in part reflects the older age
distribution of the overseas born population in Australia.
Back to top

8.7 LABOUR FORCE STATUS(a), By country of birth - 2008-09

Not in the
Employed Total Labour Unemploy- Participation
Unemployed labour
full-time employed force ment rate rate
force
'000 '000 '000 '000 '000 % %

Born in Australia 5 601.1 7 918.1 390.9 8 309.0 3 751.4 4.7 68.9

Born overseas 2 088.3 2 873.4 170.8 3 044.2 1 904.5 5.6 61.5
Oceania and
308.0 387.6 24.4 411.9 132.8 5.9 75.6
Antarctica
North-west Europe 603.5 839.0 29.8 868.8 555.4 3.4 61.0
Southern and
239.4 323.1 13.0 336.1 459.1 3.9 42.3
Eastern Europe
North Africa and
82.0 125.1 18.7 143.8 159.1 13.0 47.5
the Middle East
South-east Asia 290.2 384.9 26.2 411.1 202.7 6.4 67.0
 North-east Asia 175.7 255.1 18.0 273.1 176.6 6.6 60.7
Southern and
179.8 257.3 23.0 280.3 105.4 8.2 72.6
Central Asia
Americas 97.1 141.8 7.7 149.6 60.0 5.2 71.3
Sub-Saharan Africa 112.7 159.5 10.1 169.6 53.4 5.9 76.0
Total(b) 7 690.7 10 793.5 562.2 11 355.7 6 007.5 5.0 65.4

(a) Annual averages.

(b) Includes persons in institutions and persons whose country of birth was not specified or was unable to be
classified by the Standard Australian Classification of Countries (SACC), Australia (1269.0).
Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).

Table 8.8 provides an overview of the labour force status of people in 2008-09, according to the
family relationship within the household. For partners in couple families with dependants
present, husbands (or male partners) had a higher participation rate (93.7%) than wives (or
female partners) (69.5%). Of the partners who were employed, a higher proportion of males were
employed full-time (88%) than females (52%). For lone parents with dependants, the
participation rate of male parents (81.0%) was higher than female parents (63.9%). On average,
parents in a couple relationship with dependent children have a higher participation rate than
those without dependent children (81.7% compared with 60.0%), mostly due to the younger ages
of parents with dependants.
Back to top

8.8 LABOUR FORCE STATUS(a), By relationship in household - 2008-09

Civilian
Employed TotalUnem- Labour Not in the population Unemploy-Participation
full-time employed ployed force labour force aged 15 and ment rate rate
over
’000 ’000 ’000 ’000 ’000 ’000 % %

MALES

Family member 4 184.7 4 922.4 235.5 5 157.8 1 717.9 6 875.7 4.6 75.0
Husband or
3 409.4 3 783.4 101.5 3 884.9 1 180.8 5 065.8 2.6 76.7
partner
With
1 918.6 2 050.4 58.9 2 109.3 141.8 2 251.1 2.8 93.7
dependants
Without
1 490.7 1 733.0 42.7 1 775.6 1 039.0 2 814.6 2.4 63.1
dependants
Lone parent 100.8 119.2 7.6 126.8 48.3 175.2 6.0 72.4
With
64.0 77.3 5.6 83.0 19.5 102.5 6.8 81.0
dependants
Without
36.8 41.9 2.0 43.9 28.8 72.7 4.5 60.3
dependants
Dependent
19.4 217.2 35.9 253.0 292.2 545.2 14.2 46.4
student
Non-dependent
558.6 678.8 76.6 755.4 135.6 890.9 10.1 84.8
child(b)
Other family
96.7 123.7 13.9 137.6 60.9 198.6 10.1 69.3
person
Non-family member 735.1 873.5 55.1 928.6 427.1 1 355.7 5.9 68.5
Lone person 452.2 518.1 32.1 550.1 331.9 882.1 5.8 62.4
Not living alone 282.9 355.5 23.0 378.5 95.2 473.7 6.1 79.9
Relationship in
household not 65.3 88.2 12.2 100.4 221.6 322.0 12.1 31.2
determined
Total 4 985.1 5 884.1 302.7 6 186.9 2 366.6 8 553.4 4.9 72.3

FEMALES

Family member 2 214.7 4 202.6 219.6 4 422.2 2 635.6 7 057.8 5.0 62.7
Wife or partner 1 619.1 3 002.2 98.0 3 100.3 1 860.2 4 960.5 3.2 62.5
With
631.2 1 478.7 53.9 1 532.5 671.8 2 204.4 3.5 69.5
dependants
Without
987.9 1 523.6 44.2 1 567.7 1 188.4 2 756.1 2.8 56.9
dependants
Lone parent 208.5 397.4 40.5 437.8 320.9 758.7 9.2 57.7
With
144.5 302.2 36.1 338.2 191.3 529.6 10.7 63.9
dependants
Without
64.0 95.2 4.4 99.6 129.5 229.1 4.4 43.5
dependants
Dependent
16.7 281.5 35.0 316.5 247.5 563.9 11.1 56.1
student
Non-dependent
303.1 421.1 36.8 457.9 84.5 542.4 8.0 84.4
child(b)
Other family
67.4 100.4 9.4 109.7 122.6 232.3 8.5 47.2
person
Non-family member 452.9 637.1 33.5 670.6 683.7 1 354.3 5.0 49.5
Lone person 298.2 407.9 18.2 426.2 603.4 1 029.6 4.3 41.4
Not living alone 154.7 229.2 15.3 244.5 80.3 324.8 6.2 75.3
Relationship in
household not 37.9 69.6 6.3 76.0 321.6 397.6 8.3 19.1
determined
Total 2 705.6 4 909.4 259.4 5 168.8 3 640.9 8 809.7 5.0 58.7

PERSONS

Family member 6 399.4 9 124.9 455.1 9 580.0 4 353.5 13 933.5 4.8 68.8
Husband, wife or
5 028.4 6 785.6 199.6 6 985.2 3 041.0 10 026.2 2.9 69.7
partner
With
2 549.8 3 529.1 112.7 3 641.8 813.7 4 455.5 3.1 81.7
dependants
Without
2 478.6 3 256.6 86.8 3 343.4 2 227.3 5 570.7 2.6 60.0
dependants
Lone parent 309.3 516.6 48.1 564.7 369.2 933.8 8.5 60.5
With
208.5 379.5 41.7 421.2 210.8 632.0 9.9 66.6
dependants
Without
100.8 137.1 6.4 143.5 158.3 301.8 4.4 47.5
dependants
Dependent
36.1 498.7 70.8 569.5 539.7 1 109.2 12.4 51.3
student
Non-dependent
861.6 1 099.9 113.4 1 213.3 220.0 1 433.4 9.3 84.6
child(b)
Other family
164.0 224.1 23.3 247.4 183.5 430.9 9.4 57.4
person
Non-family member 1 188.0 1 510.7 88.6 1 599.3 1 110.8 2 710.1 5.5 59.0
Lone person 750.4 926.0 50.3 976.3 935.3 1 911.6 5.2 51.1
Not living alone 437.6 584.7 38.3 623.0 175.5 798.5 6.1 78.0
Relationship in
household not 103.3 157.9 18.5 176.4 543.2 719.6 10.5 24.5
determined
Total 7 690.7 10 793.5 562.2 11 355.7 6 007.5 17 363.2 5.0 65.4

(a) Annual averages.

(b) Aged 15 years and over.
Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).

EMPLOYED PEOPLE

People are considered to be employed if they were in paid work or worked without pay in a
family business, for one hour or more in the reference week of the ABS monthly LFS. People
who were absent from work in the reference week of the survey were also considered to be
employed, unless they had been on unpaid leave for more than four weeks. This section contains
information on people who are employed, including whether they worked full time or part time,
their industry and occupation, and the characteristics of their employment arrangements.

Measuring changes between employment levels and population levels enables evaluation of the
strength of employment growth compared with population growth. The measure relating these
two levels is the employment to population ratio. This ratio reflects net changes in the number of
people employed relative to changes in the size of the population, whereas movements in the
employment level reflect net changes in the number of people holding jobs.

The employment to population ratio rose from 60.6% in 2004-05 to 62.2% in 2008-09 (table
8.9). As in previous years, in 2008-09 the employment to population ratio was higher for men
than for women (68.8% compared with 55.7%), which reflects the higher participation of men in
the labour force.
8.9 EMPLOYED PERSONS, Employment to population ratio(a)
2004-05 2005-06 2006-07 2007-08 2008-09
% % % % %

Males 68.1 68.6 69.3 69.8 68.8

Females 53.3 54.3 55.1 55.7 55.7
Persons 60.6 61.4 62.1 62.6 62.2

(a) The employment to population ratio for any group is the annual average number of employed persons expressed
as a percentage of the annual average civilian population aged 15 years and over in the same group.
Source: ABS Labour Force, Australia (6202.0).

Full-time and part-time employment

Employed people are regarded as either full-time or part-time workers depending on the number
of hours worked. Full-time workers are those who usually work 35 hours or more per week in all
jobs, or usually work less than 35 hours a week but actually worked 35 hours or more during the
reference week of the LFS. Part-time workers are those who usually work less than 35 hours a
week and either did so during the reference week, or were not at work during the reference week.
Graph 8.10 shows annual percentage changes in part-time and full-time employment from 1988-
89 to 2008-09. Both full-time and part-time employment increased each year throughout the
period except between 1990-91 and 1992-93 and in 2001-02, when full-time employment
decreased. Part-time employment has generally increased at a faster rate than full-time
employment over the period. However, in recent years (2003-04, 2004-05, 2006-07 and 2007-08)
full-time employment grew at a faster rate.

The proportion of employed people who were working part-time was affected by these different
rates of change, rising from 20% in 1988-89 to 29% in 2008-09.

Back to top

Employment growth fluctuated during the strong economic growth of the late 1980s and the
subsequent economic downturn of the early 1990s. In 1988-89, growth in full-time employment
peaked at 3.6%. Part-time employment grew strongly in 1989-90 (8.2%). The rate of growth of
full-time and part-time employment subsequently began to slow. At the onset of the economic
downturn in 1990-91, full-time employment fell by 1.6%. The impact of the downturn and its
effects on the demand for labour intensified in 1991-92 when full-time employment fell more
strongly (down 3.4%). At the same time, the rate of growth of part-time employment increased,
from 3.2% in 1990-91 to 3.8% in 1991-92. A similar pattern was evident in 2001-02, when a
decrease in full-time employment was accompanied by strong growth in part-time employment.
After 2001-02, full-time employment grew to a peak of 3.1% in 2006-07 and slowed from 2.7%
to 0.6% between 2007-08 and 2008-09. Part-time employment growth has remained steady at
about 2.4% for the last three years.
8.10 EMPLOYED PERSONS, Change in annual average employment

In 2008-09 there were 10.8 million employed people, with almost three-quarters (71%) working
full time (table 8.11). Men were more likely than women to work full time (85% compared with
55%). Part-time work was most prevalent among the younger (15-19 years) and older (65 years
and over) age groups (67% and 54% respectively).
8.11 EMPLOYED PERSONS(a), Full-time and part-time workers - 2008-09
Age group (years)
15-19 20-24 25-34 35-44 45-54 55-59 60-64 65 and Total
 over

MALES

Full-time
'000 157.7 444.4 1 187.8 1 262.3 1 160.7 414.4 257.0 100.8 4 985.1
workers
Part-time
'000 206.7 152.9 119.1 96.5 101.1 64.7 71.1 86.8 899.0
workers
Total '000 364.4 597.3 1 306.9 1 358.9 1 261.8 479.1 328.1 187.6 5 884.1
Proportion of
part-time % 56.7 25.6 9.1 7.1 8.0 13.5 21.7 46.3 15.3
workers

FEMALES

Full-time
'000 79.6 330.0 711.1 580.7 657.2 220.8 100.4 25.8 2 705.6
workers
Part-time
'000 284.1 211.6 334.1 547.6 469.4 176.4 120.1 60.5 2 203.8
workers
Total '000 363.7 541.5 1 045.2 1 128.4 1 126.6 397.2 220.5 86.3 4 909.4
Proportion of
part-time % 78.1 39.1 32.0 48.5 41.7 44.4 54.5 70.1 44.9
workers

PERSONS

Full-time
'000 237.3 774.3 1 898.9 1 843.1 1 817.9 635.1 357.4 126.6 7 690.7
workers
Part-time
'000 490.8 364.5 453.2 644.2 570.5 241.2 191.2 147.3 3 102.8
workers
10
Total '000 728.1 1 138.9 2 352.1 2 487.2 2 388.4 876.3 548.6 273.9
793.5
Proportion of
part-time % 67.4 32.0 19.3 25.9 23.9 27.5 34.9 53.8 28.7
workers

(a) Annual averages.

Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).
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Employment by industry and occupation

The distribution of employed people across industries and occupations, and the changes over
time, provide an important insight into the structure of the labour market. Graph 8.12 shows the
proportion of employed people by industry, for the years 1998-99 and 2008-09.

The industry composition of the labour market has changed considerably over time. Historically,
the Manufacturing industry has been the largest employing industry, but its contribution to the
number of employed people has been declining. Over the past decade Manufacturing
employment fell from 12% of all employed people in 1998-99 to 9% in 2008-09. The proportion
of people employed in the Agriculture, forestry and fishing industry also fell over this period,
from 5% to 3%. During the same period, the greatest increase in the proportion of employed
people was in the Construction industry (from 7% to 9%).
 8.12 Employed persons(a), By industry(b)

Table 8.13 shows the proportion of employed people in each broad occupation group by age
group for 2008-09. The occupation groups with the highest proportions of employed people were
Professionals (21%) and Clerical and administrative workers (15%). The occupation group with
the lowest proportion of employed people was Machinery operators and drivers (7%).

There is a correlation between age and occupation, with a higher proportion of younger workers
employed in the lower-skilled occupations, and a higher proportion of older workers employed in
the more highly-skilled occupations. For example, 1% of 15-19 year old workers were employed
as Managers and 2% as Professionals, while at the other end of the age spectrum, for those aged
65 years and over, 28% were employed as Managers and 22% as Professionals. In the 15-19 year
age group, 34% of employed people were employed as Sales workers and a further 23% as
Labourers. The proportion of 20-24 year olds employed as Sales workers (15%) was
considerably lower than the proportion of 15-19 year olds employed in this occupation group. In
contrast, there was a much higher proportion of 20-24 year olds than 15-19 year olds employed
as Clerical and administrative workers (16% compared with 7%).
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8.13 EMPLOYED PERSONS(a), By occupation - 2008-09

AGE GROUP (YEARS)
65 and
Occupation group(b) 15-19 20-24 25-34 35-44 45-54 55-59 60-64 Total
over

Managers % 1.4 4.8 11.1 14.8 15.9 16.0 17.2 27.5 12.9
Professionals % 1.9 13.3 26.2 23.0 21.5 22.1 21.6 21.5 20.8
Technicians
and trades % 17.1 19.9 16.7 14.9 13.2 12.9 12.9 11.3 15.2
workers
Community % 12.7 13.8 8.3 8.1 8.4 8.0 6.3 4.9 8.9
and personal
service
workers
Clerical and
administrative% 7.2 16.1 15.3 16.1 17.0 16.3 15.3 11.4 15.4
workers
Sales workers % 34.4 15.0 7.7 6.5 6.2 6.1 6.5 5.9 9.4
Machinery
operators and % 2.5 4.6 5.9 7.3 8.1 8.0 8.6 5.7 6.7
drivers
Labourers % 22.7 12.5 8.8 9.2 9.7 10.6 11.5 11.7 10.7
Persons `000 715.1 1 129.3 2 348.5 2 486.4 2 390.6 875.7 552.1 269.1 10 766.6

(a) Annual average of quarterly data.

(b) Classified according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO),
First Edition (1220.0).
Source: ABS Labour Force, Australia, Detailed, Quarterly (6291.0.55.003).

There are large gender differences in occupations. Women were more likely than men to be
employed as Clerical and administrative workers, Community and personal service workers, and
Sales workers. In contrast, men were more likely than women to be employed as Technicians
and trades workers, Labourers, and Machinery operators and drivers (graph 8.14). For example,
in 2008-09, 24% of men were employed as Technicians and trades workers compared with 5% of
women, while 26% of women were employed as Clerical and administrative workers compared
with 7% of men. In the more highly-skilled occupations, proportionally more men were
employed as Managers (15% compared with 10% of women), while proportionally more women
were employed as Professionals (24% compared with 19% of men).
8.14 EMPLOYED PERSONS(a), By occupation(b) - 2008-09

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Characteristics of employment

Working life in Australia continues to change. There are more diverse employment
arrangements, greater flexibility in work patterns, and more people working part time. This
section looks at the types of arrangements people are employed under, and the hours they work.

Employment type
Employed people are classified to one of five employment categories on the basis of their main
job, that is, the job in which they usually work the most hours. When classifying people by
employment type, owner managers of incorporated enterprises are distinguished from other
employees. The employment types are:
 employees (excluding owner managers of incorporated enterprises) with paid leave
entitlements;
 employees (excluding owner managers of incorporated enterprises) without paid leave
entitlements (a proxy for casual employment);
 owner managers of incorporated enterprises;
 owner managers of unincorporated enterprises; and
 contributing family workers.

For more details see the article 'Changes in types of employment' in Australian Labour Market
Statistics, October 2004 ( 6105.0).

Table 8.15 shows the proportion of employed people by employment type. Of the 10.5 million
employed people at August 2008, over three-fifths (63%) were employees with paid leave
entitlements and 20% were employees without paid leave entitlements. A further 11% were
owner managers of unincorporated enterprises and 6% were owner managers of incorporated
enterprises.

The proportion of employed people who worked as employees with paid leave entitlements was
similar for men and women (64% and 63% respectively). However, a higher proportion of
women were employees without paid leave entitlements than men (25% and 16% respectively)
reflecting the fact that women are more likely to work part time than men, and that part-time
work is more closely associated with casual employment. A higher proportion of men were
owner managers compared with women (20% and 12% respectively).
8.15 EMPLOYED PERSONS, By employment type - August 2008
Employees
EmployeesOwner managers of Owner managers ofContributing
with paid
without paid leave incorporated unincorporated family Total
leave
entitlements(a) enterprises enterprises workers
entitlements(a)
% % % % % '000

Males 63.6 16.0 7.2 13.0 0.2 5 705.0

Female
62.7 24.8 4.0 8.3 0.3 4 767.5
s
Persons 63.2 20.0 5.7 10.9 0.2 10 472.5

(a) Excluding owner managers of incorporated enterprises.

Source: ABS Australian Labour Market Statistics, Datacubes, Table 2 (6105.0).
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The proportion of employees with paid leave entitlements declined slightly between 1994 and
2004 (from 61% to 59% of employed persons). However, since 2004 the proportion of
employees with paid leave entitlements increased by four percentage points, to stand at 63% at
August 2008 (graph 8.16). Employees without paid leave entitlements rose as a proportion of
total employment from 1994 to 1998 (from 18% to 20%). Since 1998 the proportion has
remained relatively stable. As a proportion of total employment, owner managers remained
stable between 1994 and 2007, but fell slightly in 2008. Of total employment, the proportion of
owner managers of incorporated enterprises increased from 5% in 1994 to 7% in 2006 and back
to 6% in 2008, while over the same period owner managers of unincorporated enterprises fell
from 15% to 11%. Owner managers of incorporated enterprises as a proportion of all owner
managers increased from 25% in 1994 to 34% in 2008.
8.16 Types of employment, Proportion of employed

Hours worked

Hours worked statistics have a wide range of uses, including the calculation of labour
productivity and monitoring of working conditions. Information on hours worked allows the
ABS to classify employed people as full time or part time, and also to identify underemployed
people (in conjunction with information about wanting to work more hours).

The LFS collects weekly hours worked data for employed people on three different bases:
 actual hours worked in all jobs - hours actually worked in the survey reference week,
including overtime and excluding time off
 actual hours worked in main job - hours actually worked in the survey reference week
(including overtime and excluding any time off) in the job in which the most hours are
usually worked
 usual hours worked in all jobs - hours usually worked per week by an employed person.

Data for the latter two measures are available from April 2001, while the first measure has been
collected since the LFS began in the 1960s.

In addition to the three reference week measures outlined above, the ABS also produces an
aggregate monthly hours worked series, which measures the total number of hours worked by
employed persons in a calendar month.
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Graph 8.17 shows average weekly hours worked for employed people for each of the three
measures. Average weekly hours worked is the hours worked by employed people during the
reference week divided by the number of employed people.

The two average weekly hours actually worked measures are influenced by seasonal factors (e.g.
customs in taking leave at particular times of the year), economic factors (e.g. workplace-related
influences such as seasonal employment), and absences from work due to public holidays,
sickness, irregular shifts, etc. Large movements occur around the months of January, April and
October. The average weekly hours worked in main job series closely follows the average
weekly hours worked in all job series, but at a slightly lower level. This indicates that the number
of hours worked in second and subsequent jobs, averaged across all employed people, is
relatively small.

Average weekly hours usually worked in all jobs exhibits much lower levels of variability (graph
8.17). This is because the usual hours worked series is not affected by seasonal factors and
absences from work that lead to fluctuations in the actual hours worked series.
8.17 Employed persons, Average weekly hours worked

In June 2009, more than a third (34%) of employed men worked between 35 and 44 hours per
week, and a further 28% worked 45 hours or more per week (graph 8.18). Women were most
likely to have worked between 16 and 34 hours per week (38%), or between 35 and 44 hours
(26%). Women who worked 45 hours or more per week made up 11% of all employed women.
 8.18 EMPLOYED PERSONS(a), Actual hours worked in all jobs - June 2009

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Average weekly hours actually worked by full-time employed people rose from 39.7 hours in
1988-89 to a peak of 41.4 hours in 1999-2000, an increase of 4% (graph 8.19). In 2008-09, full-
time employed people worked an average of 39.8 hours per week, a slight decrease from 40.3
hours per week recorded in 2007-08. Full-time employed men worked an average of 41.1 hours
per week in 2008-09 while full-time employed women worked an average of 37.3 hours per
week.
8.19 Average Weekly Actual Hours Worked(a), Full-time employed persons(b)

From 1988-89 to 2008-09 there was a steady increase in the number of hours actually worked by
part-time workers as a proportion of the total number of hours actually worked (graph 8.20). In
1988-89, 9% of all hours actually worked were in part-time employment; by 2008-09 this
proportion had risen to 14%. For men, 7% of the total number of hours actually worked were in
part-time employment in 2008-09, whereas for women the proportion was 26%.
 8.20 Part-time hours as a proportion of total actual hours worked(a)

Table 8.21 shows the average weekly hours usually worked by men was ten hours greater than
for women (41.1 hours and 31.2 hours respectively). This was partly due to men working longer
usual weekly hours in full-time employment than women (45.2 hours and 41.4 hours
respectively), and also because women were more likely to work part time than men. The usual
hours worked in all jobs by full-time employed people declined slightly over the last number of
years, from 44.5 hours per week in 2001-02 to 43.9 hours per week in 2008-09.
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8.21 EMPLOYED PERSONS, Average weekly hours usually worked(a) - 2008-09

Males Females Persons
hours hours hours

Full-time workers 45.2 41.4 43.9

Part-time workers 18.2 18.7 18.6
Total 41.1 31.2 36.6

(a) Annual averages.

Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).

Graph 8.22 shows average weekly hours usually worked in all jobs, by occupation, for full-time
employed people. In 2008-09, Managers had the highest average weekly usual hours worked for
full-time employed people (50.7 hours per week for men and 45.6 hours per week for women),
followed by Machinery operators and drivers (46.7 hours and 42.2 hours respectively). The
occupation with the lowest average weekly hours usually worked for full-time employed people
was Clerical and administrative workers (42.6 hours per week for men and 39.7 hours per week
for women).
 8.22 Average Weekly Hours Usually Worked(a), ^Full-time employed persons by
occupation(b) - 2008-09

In 2009, the ABS released a new hours worked series, aggregate monthly hours worked, which
measures the total number of hours worked by employed persons in a calendar month. This
series differs from the actual and usual hours worked series above since they relate only to the
hours worked in the reference week. Aggregate monthly hours worked is available as both
seasonally adjusted and trend series. This allows for comparison between months, with the
estimates having been adjusted for seasonality and the effects of holidays.

Actual and usual hours worked cannot be aggregated across time to produce either quarterly or
annual estimates as they relate to only a single week in the month. Therefore, the annual data
presented in graphs 8.19 to 8.22 are annual averages. In contrast, aggregate monthly hours
worked estimates are a true monthly measure which can be aggregated across time to produce
annual estimates.

The annual trend estimate of aggregate hours worked has generally increased since 1988-89. The
only exceptions have been in the economic downturns in the early 1990s and 2000-01.
Aggregate hours worked increased from 13,579 million hours in 1992-93 to 18,395 million hours
in 2008-09. In 2008-09, men worked 11,314 million hours (62% of all hours worked), while
women worked 7,081 million hours.
 8.23 aggregate hours worked(a)

FEATURE ARTICLE 1: INDEPENDENT CONTRACTORS

Independent contractors are sometimes referred to as consultants or freelancers. The term
'contractors' is also used, however this is a broad term that is often used to describe people with a
variety of forms of employment, for example, not only true independent contractors, but also
employees engaged in short-term or fixed-term work, often engaged through a third party (e.g. a
labour hire firm/employment agency). The measure of independent contractors used in this
article refers to people who are not employees, but who may be operating in a similar manner to
employees, and comes from the ABS Forms of Employment Survey (FOES) (6359.0).

In FOES, independent contractors are defined as those who operate their own business and who
contract to perform services for others without having the legal status of an employee, that is,
they are engaged by a client under a commercial contract, rather than as an employee under an
employment contract. Thus, independent contractors have the same rights as their clients under
common law to control the terms of the contract.

FOES also identifies two other groups of employed people: employees; and other business
operators. Employees are those who work for a public or private employer and receive
remuneration in wages or salary. They are engaged under a contract of service (an employment
contract) and take directions directly from their employer on how the work is performed. Other
business operators are employed people who operate their own business but are not operating as
independent contractors. They are distinguished from independent contractors in that they
usually generate their income from managing staff or from selling goods or services to the
public, rather than providing a labour service directly to a client.

Overview

In November 2008 there were 10.7 million employed people aged 15 years and over in Australia.
Of these, 1.0 million were independent contractors in their main job, making up 9% of employed
people. A further 8.6 million people (81%) were employees in their main job, while 1.1 million
(10%) were other business operators in their main job. A further 100,000 employed people who
were multiple job holders and who were not independent contractors in their main job were
independent contractors in their second job. Therefore, the total number of employed people
working as independent contractors in November 2008 was 1.1 million, or 10% of all employed
people. While employed people may be independent contractors in their main or second job, the
remainder of this article focuses on those employed people who were independent contractors in
their main job.
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Age and sex

Men were more likely to be independent contractors, with 12% of employed men working as
independent contractors in their main job, compared with 5% of women, and across all age
groups there were proportionally more men who were independent contractors than women.
Consequently, men made up the majority of independent contractors (75%). Around half of
independent contractors (50% of men and 58% of women) were aged 35-54 years.
8.24 Independent Contractors, proportion within each age group - By sex - November 2008

The proportion of independent contractors increases with age, with just 3% of 15-24 year old
employed people working as independent contractors, compared with 20% of those aged 65
years and over (graph 8.24). This indicates that once people pass the traditional retirement age,
they may move from being in employee positions to operating their own businesses, for example,
as consultants. This may be due to their ability as independent contractors to choose the hours
and conditions under which they work, particularly as part of a transition to retirement.

Occupation and industry

Male independent contractors were most likely to be Technicians and trades workers, with over
one third (36%) employed in this occupation (graph 8.25). In comparison, 24% of the total male
employed population were Technicians and trade workers. Female independent contractors were
more likely to be Professionals, with 32% of female independent contractors working in this
occupation, compared with 24% of the total female employed population who were employed as
Professionals.
 8.25 Independent Contractors, By sex and occupation(a) - November 2008

Back to top

Male independent contractors were most likely to be found operating their business in the
Construction industry, with over two fifths (41%) working in that industry (graph 8.26). Almost
two thirds (62%) of these men were employed as Technicians and trade workers, and a further
17% as Labourers. The highest proportion of female independent contractors was found in the
Professional, scientific and technical services industry (23%), with over half (52%) of these
women working as Professionals and over one third (34%) working as Clerical and
administrative workers. It should be noted that the industry of independent contractors reflects
the industry of the independent contractors' business, rather than the industry of their client.
8.26 INDEPENDENT CONTRACTORS, By selected industries(a) and sex - ^November 2008

Hours worked

The working hours of independent contractors in their main job varied from other forms of
employment. The average usual hours worked by male independent contractors was 44 hours per
week, which was higher than that of employees (41 hours), but lower than that of male other
business operators (49 hours). Female independent contractors, however, worked fewer hours
(27 hours) than both female employees and other business operators (both 33 hours) (graph
8.27).
8.27 Average weekly hours, By form of employment and sex - November 2008

Back to top

People who operate their own business tend to work longer hours than those who are employees.
Over one third (36%) of male independent contractors and over half (53%) of male other
business operators usually worked 49 hours or more, compared with just 18% of employees.
Like men, female other business operators were most likely to work longer hours, with over one
fifth (21%) usually working 49 hours or more per week.

Working patterns

The days on which independent contractors worked varied from those engaged in other forms of
employment. Over half (55%) of male independent contractors worked weekdays only. In
contrast, over two thirds (69%) of employees and less than half (43%) of other business
operators worked weekdays only. Female independent contractors were more likely than male
independent contractors to work on weekdays only, with two thirds (66%) working only on
weekdays. Like men, a large proportion (70%) of female employees worked weekdays only,
while about half (51%) of other business operators worked weekdays only (graph 8.28).
 8.28 Form of employment, By days of week worked - November 2008

EATURE ARTICLE 2: INTERSTATE COMMUTERS

The movement of workers across state and territory borders can have implications for how
federal, state/territory and local governments plan and distribute funding, infrastructure and other
amenities. This article uses data from the 2006 Census of Population and Housing to analyse
these movements and relates to the main job of the individual in the week prior to the Census.
Employed people who live in one state but work in another are referred to in this article as
interstate commuters.

According to the 2006 Census, 101,300 people commuted interstate for work in the week prior to
the Census, accounting for 1% of all employed persons. Of those, 62% were men and 38% were
women. The age distribution of people who commuted interstate for work was similar to that of
all employed people.

Commuting from...

In 2006, 4% of all employed people living in the Australian Capital Territory commuted
interstate for work in the week prior to the Census (table 8.29). The states and territories with the
next highest proportion of interstate commuters were New South Wales (2%) and the Northern
Territory (2%). People who lived in the Australian Capital Territory were more likely to
commute interstate for work due to its small size and the fact that it is surrounded by New South
Wales.

New South Wales had the largest number of people who commuted outside of the state to work
(48,300) followed by Victoria (20,200) and Queensland (15,500) (table 8.30).

Commuting to...

The Australian Capital Territory also received proportionally more interstate commuters than
any other state or territory. In 2006, 12% of people working in the Australian Capital Territory
were usual residents of another state or territory (table 8.29). These people commuted into
Canberra from nearby Queanbeyan, Yass and adjacent semi-rural areas of New South Wales.

New South Wales received the largest number of interstate commuters (30,000), followed by the
Australian Capital Territory (22,500), Victoria (17,900) and Queensland (16,900) (Table 8.30).
8.29 INTERSTATE COMMUTERS, Proportion of all employed persons(a) - August 2006
Proportion employed who commuted from
Proportion employed who commuted to
States and territories(b) % %

New South Wales 1.7 1.1

Victoria 0.9 0.8
Queensland 0.9 1.0
South Australia 0.7 0.5
Western Australia 0.4 0.6
Tasmania 0.9 0.5
Northern Territory 1.6 4.5
Australian Capital
3.5 12.1
Territory
Australia 1.2 1.2

(a) Excludes those employed persons who did not say where they were working (not stated).
(b) 'Other Territories' excluded from analysis due to very small numbers.
Source: Census of Population and Housing, 2006.
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8.30 Employed persons(a), Place of usual residence and place of work(b)

New South Western Australian Total
Queen- Tas- Northern Total
South Victoria Australi Australi Capital employed
land maniaTerritory employed
Wales a a Territory exited
Place of
Usual No. No. No. No. No. No. No. No. No. No.
Residence(b)

New South 2 718

12 352 11 816 739 1 373 229 734 21 016 48 259 2 766 582
Wales 323
2 141
Victoria 13 297 2 617 1 352 1 344 416 586 625 20 237 2 162 234
997
1 720
Queensland 9 081 2 267 742 1 388 203 1 330 490 15 501 1 736 248
747
South
921 1 341 834 655 089 686 72 483 153 4 490 659 579
Austraila
Western
865 945 748 432 884 869 74 544 126 3 734 888 603
Australia
Tasmania 365 585 366 109 249 194 508 86 74 1 834 196 342
Northern
191 197 298 149 389 14 80 942 44 1 282 82 224
Territory
Australian
Capital 5 328 230 188 47 79 10 52 163 524 5 934 169 458
Territory
Total 30 048 17 917 16 867 3 570 5 508 1 018 3 815 22 528 101 271 ..
employed
entered
Total 2 748 2 159 1 737
658 659 890 377 195 526 84 757 186 052 . . 8 661 270
employed 371 914 614

. . not applicable
(a) Excludes those employed persons who did not say where they were working (not stated).
(b) 'Other Territories' excluded from analysis due to very small numbers.
Source: Census of Population and Housing, 2006.

Commuting flows

Table 8.31 shows that of those who lived in New South Wales but worked interstate, 44%
worked in the Australian Capital Territory, 26% in Victoria and 25% in Queensland. The
combination of these three bordering states accounted for 94% of employed people who lived in
and commuted from New South Wales.

For employed people who lived in and commuted from Victoria, 66% worked in New South
Wales and 7% worked in South Australia, both of which share a border with Victoria. This
pattern was similar for most other states and territories. However, this was not the case with
Western Australia. About 68% of employed people who commuted from Western Australia
commuted to non-bordering states - Victoria (25%), New South Wales (23%) and Queensland
(20%).

Back to top

8.31 INTERSTATE COMMUTERS, Proportion from each state(a) - August 2006

Place of work(b)
New South Western Australian
Queens- Northern
South Victoria Australi AustraliTasmania Capital Total
land Territory
Wales a a Territory
Place of Usual
% % % % % % % % %
Residence(b)

New South Wales .. 25.6 24.5 1.5 2.8 0.5 1.5 43.5 100.0
Victoria 65.7 .. 12.9 6.7 6.6 2.1 2.9 3.1 100.0
Queensland 58.6 14.6 .. 4.8 9.0 1.3 8.6 3.2 100.0
South Australia 20.5 29.9 18.6 .. 15.3 1.6 10.8 3.4 100.0
Western Australia 23.2 25.3 20.0 11.6 .. 2.0 14.6 3.4 100.0
Tasmania 19.9 31.9 20.0 5.9 13.6 .. 4.7 4.0 100.0
Northern Territory 14.9 15.4 23.2 11.6 30.3 1.1 .. 3.4 100.0
Australian Capital
89.8 3.9 3.2 0.8 1.3 0.2 0.9 .. 100.0
Territory

. . not applicable
(a) Excludes those employed persons who did not say where they were working (not stated).
(b) 'Other Territories' excluded from analysis due to very small numbers.
Source: Census of Population and Housing, 2006.
In which industries do commuters work?

Interstate commuting is more closely associated with some industries than others (table 8.32).
For example, the Public administration and safety industry accounted for just 7% of all employed
people in 2006 but represented 14% of all interstate commuters in 2006. Similarly, the Mining
industry accounted for 1% of all employment in 2006, but 3% of all interstate commuters.

The industries with the highest proportion of interstate commuters varied by state and territory.
Manufacturing was the most common industry of people who commuted to New South Wales
and Victoria. In 2006, 11% of those who commuted to New South Wales and 16% of those who
commuted to Victoria worked in Manufacturing. In contrast, Mining was the most common
industry of commuters to South Australia (13%) and Western Australia (19%). This is associated
with the large amount of mining activity in these states. People working in the Construction
industry accounted for 20% of those who commuted to work in the Northern Territory and 15%
of those who commuted to Queensland, reflecting the high levels of construction activity
occurring within these two economies with some of this construction associated with
developments in mining.

In the Australian Capital Territory, more than one third of commuters (34%) came to work in
Public administration and safety, reflecting the fact that this is the largest employing industry in
the Australian Capital Territory, accounting for 32% of total employment in 2006.
8.32 Proportion of Employed Persons who Commuted to state/territory, By industry(a) -
August 2006
Place of work(b)
Australian
New South Western
Queens- Northern Australi
South Victoria Australi Australi Tasmania
land Territory Capital a
Wales a a
Territory
% % % % % % % % %

Agriculture, forestry
4.5 3.3 4.4 7.5 4.0 7.2 5.4 0.3 3.5
and fishing
Mining 1.0 1.4 3.9 13.3 18.5 2.8 12.0 - 3.1
Manufacturing 11.1 15.9 9.3 12.6 7.0 7.5 7.2 4.1 9.7
Electricity, gas, water
1.3 0.9 0.8 1.3 1.2 2.7 0.3 0.8 1.0
and waste services
Construction 8.2 6.4 14.7 9.6 17.3 7.0 19.9 5.6 9.4
Wholesale trade 5.4 6.4 4.0 3.6 2.8 2.9 1.2 2.6 4.3
Retail trade 10.1 11.0 8.0 5.4 5.5 7.7 4.0 7.1 8.6
Accommodation and
8.3 5.3 9.1 4.3 5.8 5.4 6.8 3.8 6.5
food services
Transport, postal and
7.9 7.1 6.1 9.3 8.3 17.3 5.4 3.1 6.4
warehousing
Information media and
1.7 2.3 1.9 2.3 1.2 1.8 1.1 2.4 2.0
telecommunications
Financial and insurance
2.8 3.0 2.2 2.0 1.1 2.8 0.5 1.9 2.3
services
Rental, hiring and real
1.4 1.1 2.1 0.7 0.9 1.9 0.7 1.2 1.3
estate services
Professional, scientific
5.3 6.8 6.3 5.4 6.4 4.7 3.7 10.3 6.8
and technical services
Administrative and 2.5 3.3 3.4 3.5 2.7 2.5 3.9 2.5 2.9
support services
Public administration
9.4 7.6 5.4 7.1 8.3 5.5 13.3 34.3 14.0
and safety
Education and training 5.3 5.4 4.5 3.0 2.1 4.9 4.0 6.8 5.2
Health care and social
8.9 8.5 9.0 5.0 4.2 10.8 6.4 8.2 8.2
assistance
Arts and recreation
2.2 1.6 2.2 2.5 1.0 3.0 2.3 1.4 1.9
services
Other services 2.7 2.7 2.7 1.9 1.7 2.0 1.9 3.6 2.8
Total(b) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

- nil or rounded to zero (including null cells)

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006
(1292.0).
(b) 'Other Territories' excluded from analysis due to very small numbers.
Source: Census of Population and Housing, 2006.
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In which occupations do commuters work?

In 2006, the occupational distribution of interstate commuters broadly reflected the occupational
distribution of all employed people, although people in the higher skilled occupations were
slightly more likely to commute than others (table 8.33). Those working in the Professional
occupation group accounted for 22% of all interstate commuters, while they represented 21% of
all employed. Conversely, Sales workers accounted for 10% of the total employed, but they only
represented 8% of interstate commuters.

For almost all states and territories (except Western Australia and the Northern Territory), people
working as Professionals formed the largest single group of interstate commuters, reflecting the
fact that this is the largest occupation group among employed people. In particular, for Tasmania
and the Australian Capital Territory, Professionals were a particularly important group of
commuters, accounting for 29% of people commuting to Tasmania, and 27% of people
commuting to the Australian Capital Territory.

However, for those resource rich states experiencing high levels of mining and construction
activity, the importance of Technicians and trade workers was apparent. While people in this
occupation group accounted for 14% of all employed people in 2006, they represented 29% of
workers commuting to the Northern Territory, 25% of those commuting to work in Western
Australia, 19% going to Queensland and 18% of those going to South Australia.
8.33 Proportion of Employed Persons Who Commuted to Each State/Territory, By
occupation(a) - August 2006
Place of work(b)
Australian
New South Western
Queens- Northern
South Victoria Australi Australi Tasmania Australia
land Territory Capital
Wales a a
Territory
% % % % % % % % %

Managers 15.7 15.3 13.0 14.9 11.3 16.6 9.7 17.7 15.2
Professionals 21.1 21.2 19.3 20.3 21.9 28.5 19.7 26.7 22.1
Technicians and
14.8 13.8 18.7 17.7 25.2 14.3 28.9 11.7 15.8
trades workers
Community and
personal service 9.9 8.4 9.1 8.4 6.1 10.4 8.6 8.5 8.9
workers
Clerical and
administrative 11.5 10.3 10.3 6.1 6.0 7.0 5.9 21.4 12.5
workers
Sales workers 9.3 11.2 8.4 5.9 3.7 6.4 3.1 5.3 7.9
Machinery operators
7.5 7.8 7.7 12.9 11.4 3.3 9.7 3.6 7.1
and drivers
Labourers 10.2 11.9 13.5 13.8 14.4 13.5 14.4 5.1 10.5
Total(b) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

(a) Classified according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO),
First Edition (1220.0).
(b) 'Other Territories' excluded from analysis due to very small numbers.
Source: Census of Population and Housing, 2006.

UNEMPLOYED PEOPLE

In the monthly LFS, people aged 15 years and over are considered to be unemployed if they
satisfy three criteria: they are not employed; they are available to start work; and they are taking
active steps to find work.

Two important measures of unemployment are the number of people unemployed and the
unemployment rate. The unemployment rate, defined as the number of unemployed people
expressed as a percentage of the labour force, offers an insight into the level of unutilised labour
resources within the economy.

Movements in the unemployment rate over the last 20 years have been dominated by the
economic downturn of the early 1990s, the subsequent period of economic recovery and the
recent global financial crisis. In trend terms, the unemployment rate peaked at 10.7% in
September 1992, before generally falling from the mid-1990s to 4.1% in February 2008. Since
then, the unemployment rate has been steadily increasing (graph 8.34).

For most of the period from June 1989 to June 2009, the male unemployment rate was higher
than the female unemployment rate, including from March 2009 to June 2009. However, from
June 1989 to September 1990, and from August 2003 to January 2009, the female rate was
higher than the male rate.
 8.34 Unemployment rate(a)

In conjunction with the decline in the unemployment rate, the number of unemployed people has
generally fallen from the levels recorded in the early 1990s although it has increased sharply
over the last year.

Over the past five years the proportion of unemployed people who have been in long-term
unemployment (i.e. lasting 52 weeks or more) has steadily decreased, from 20% in 2004-05 to
14% in 2008-09 (table 8.35). In contrast, the proportion of unemployed people who have been in
relatively short-term unemployment (lasting less than 26 weeks) has increased, from 68% in
2004-05 to 74% in 2008-09.
8.35 UNEMPLOYED PERSONS(a), By duration of unemployment
Weeks 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Under 26 % 68.3 68.9 70.8 73.3 73.7

Under 8 % 42.8 41.8 43.4 46.3 43.2
8 to under 26 % 25.5 27.1 27.3 27.0 30.5
26 to under 52 % 12.3 12.9 12.4 11.6 12.4
52 and over % 19.5 18.3 16.9 15.0 13.9
52 to under 104 % 8.0 7.9 7.7 7.4 7.4
104 and over % 11.4 10.3 9.1 7.6 6.6
Persons '000 539.3 529.4 492.9 471.7 562.2

(a) Annual averages.

Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001).
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Educational qualifications can have a significant bearing on labour market prospects. Table 8.36
shows the relationship between the level of highest non-school qualifications and the duration of
unemployment. At July 2008, the proportion of unemployed people who had been unemployed
for a year or more was highest among those with a Certificate III/IV (19%), compared with those
with a Certificate I/II (18%) or Bachelor degree or higher (15%), and lowest among those with
an Advanced diploma or diploma (9%).
8.36 UNEMPLOYED PERSONS, Level of highest non-school qualification and duration of
unemployment - July 2008
 Duration of current period of unemployment (weeks)
Under 8 8 to under 26 26 to under 52 52 and over Total Number
% % % % % '000

Level of highest non-

school qualification(a)
Bachelor degree or
49.0 26.6 8.9 15.4 100.0 46.9
above
Advanced diploma or
48.6 30.0 12.2 9.1 100.0 33.3
diploma
Certificate III / IV 47.8 26.2 7.3 18.7 100.0 43.8
Certificate I / II(b) 38.8 31.2 12.3 17.7 100.0 29.3
Without non-school
38.0 29.9 17.1 15.0 100.0 261.6
qualification
Total(c) 40.8 29.5 14.6 15.1 100.0 422.6

(a) For further details on how level of highest non-school qualification is determined see Education and Work,
Australia (6227.0).
(b) Includes 'Certificate not further defined'.
(c) Includes 'Level not determined'.
Source: ABS Job Search Experience, Australia (6222.0).
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Unemployed people encounter a variety of difficulties in finding work. Women were more likely
than men to report 'Unsuitable hours' as their main difficulty (13% compared with 5%),
'Insufficient work experience' (10% compared with 8%) and 'Difficulties with child care, other
family responsibilities' (7% compared with 3%). Men were more likely than women to report
their main difficulty as 'Own ill health or disability' (13% compared with 7%), 'Too far to
travel/transport problems' (10% compared with 7%) and 'Considered too old by employers' (6%
compared with 4%) (graph 8.37).
8.37 UNEMPLOYED PERSONS, Main difficulty in finding work - July 2008
UNDERUTILISED LABOUR

The extent to which the available supply of labour is utilised is an important social and economic
issue. From a social viewpoint, concern centres around the number of people whose aspirations
for work are not being met. From an economic perspective, there is interest in measuring the
extent to which available labour resources are not being fully utilised within the economy.

Measures such as the unemployment rate and long-term unemployment rate do not reflect the
full extent of labour underutilisation. As a result, the ABS also produces labour underutilisation
measures based on the number of people whose labour is underutilised (headcount measures),
and the number of hours of available labour that are underutilised (volume measures). These
measures take into account groups of people such as underemployed workers and discouraged
jobseekers.

Headcount measures of labour underutilisation

The ABS has produced three supplementary measures of labour underutilisation which are
formed by combining information on unemployed people with that of other groups whose labour
is underutilised:

Underemployment rate - the number of underemployed workers as a proportion of the labour

force. Underemployed people comprise part-time workers who would prefer more hours, and are
available to work more hours, and full-time workers who worked part-time hours in the reference
week for economic reasons.

Labour force underutilisation rate - the sum of the unemployed and the underemployed (the
underutilised population), expressed as a proportion of the labour force.

Extended labour force underutilisation rate - the sum of the unemployed, the underemployed,
and two groups of people marginally attached to the labour force, as a proportion of the labour
force augmented by those two groups. The two groups of marginally attached people are: people
actively looking for work, not available to start work in the reference week, but available to start
within four weeks; and discouraged jobseekers. This is the broadest of the ABS measures of
underutilised labour.

Table 8.38 shows there were more than half a million (634,500) underemployed people in
August 2008. The underemployment rate was higher for women than men (7.6% and 4.0%
respectively). This is related to the higher proportion of women who are in part-time
employment.

The labour force underutilisation rate was 9.6% in August 2008. Women had a higher labour
force underutilisation rate than men (11.9% compared with 7.6%), reflecting their higher rate of
underemployment. Underemployment contributed more people to the total number of people
considered to be underutilised (634,500, or 59%) than unemployment (432,600, or 41%).

In August 2008 the extended labour force underutilisation rate was 10.6%. The extended labour
force underutilisation rate was higher for women than men (13.2% compared with 8.5%), not
only because women had a higher rate of underemployment, but also because women were more
likely to be in the marginally attached populations that contribute to this rate.
8.38 LABOUR UNDERUTILISATION - August 2008
Males Females Persons

Unemployed '000 218.0 214.5 432.6

Long-term unemployed '000 30.0 33.5 63.5
Underemployed '000 246.2 388.3 634.5
Marginally attached to the labour force(a) '000 58.0 75.3 133.2
Labour underutilisation rates
Unemployment rate % 3.6 4.2 3.9
Long-term unemployment rate % 0.5 0.7 0.6
Underemployment rate % 4.0 7.6 5.7
Labour force underutilisation rate % 7.6 11.9 9.6
Extended labour force underutilisation rate % 8.5 13.2 10.6

(a) Includes only a subset of marginally attached groups.

Source: ABS Australian Labour Market Statistics, (6105.0), ABS Labour Force, Australia, Detailed - Electronic
Delivery (6291.0.55.003).

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The trend historical labour force underutilisation rate shows a number of periods in which
underutilisation has been an increasing or decreasing concern for the labour market, and these
closely align with the peaks and troughs of the economic cycle. Graph 8.39 shows the relatively
steep increase in the early 1990s, and a sharp increase from May 2008 to May 2009.

The pattern of labour force underutilisation has been similar since May 1989, with the rate for
women consistently higher than for men. The difference was most pronounced in February 2004,
with a different of 5.3 percentage points (15.7% for women and 10.4% for men), and least
pronounced in November 1992, with a difference of 2.6 percentage points (19.6% and 17.0%
respectively).
8.39 Labour force underutilisation rate(a), By sex
The labour force underutilisation rate decreases with age. As seen in graph 8.40, in August 2008,
15-19 year olds had the highest underutilisation rate (25.4%), followed by 20-24 year olds
(13.2%), whereas the lowest rate was for people aged 65 and over (3.4%), a pattern reflected in
both the unemployment rate and the underemployment rate. Underutilisation was higher for
women than for men in all age groups.
8.40 Labour Force Underutilisation Rate, By age and sex - August 2008

Back to top
Volume measures of labour force underutilisation

Labour underutilisation can also be measured in terms of the number of potential hours of labour
that are not used. The volume of underutilised labour in the labour force is defined as the number
of hours sought by unemployed people plus the preferred number of additional hours of work of
underemployed workers. The volume labour force underutilisation rate is the ratio of unutilised
hours to the total number of utilised and unutilised hours in the labour force.

Table 8.41 shows volume measures of labour force underutilisation for August 2008. For all
three underutilisation measures ( i.e. unemployment, underemployment and labour force
underutilisation), the volume measures are usually lower than headcount measures, as the
average number of potential extra hours of unemployed or underemployed people is generally
less than the average hours actually worked by employed people.

In August 2008, the hours sought by unemployed people (13.5 million hours) formed the largest
component of the volume of underutilised labour in the labour force (61%), while additional
hours preferred by underemployed formed the remainder (8.8 million hours or 39% of the
volume of underutilised labour). As with the headcount measure, underemployed hours for
women comprised a larger proportion (45%) of female underutilised labour than for men (34%).
8.41 VOLUME MEASURES OF LABOUR UNDERUTILISATION - August 2008
Males Females Persons

Volume of potential labour in the labour force

Unemployed persons (hours of
million hours 7.5 6.1 13.5
work sought)
 Underemployed workers (additional
million hours 3.8 5.0 8.8
hours of work preferred)
Employed persons (hours worked)
million hours 242.8 152.3 395.1
(a)
Total(b) million hours 254.0 163.5 417.4
Volume measures of labour force
underutilisation
Volume unemployment rate % 2.9 3.7 3.2
Volume underemployment rate % 1.5 3.1 2.1
Volume labour force
% 4.4 6.8 5.3
underutilisation rate

(a) Actual hours worked in the reference week for underemployed full-time workers and usual hours worked for all
other employed persons.
(b) The volume of potential labour in the labour force is equal to the hours of labour sought by unemployed persons,
plus the hours of labour preferred by underemployed workers (both utilised and unutilised), plus the hours of labour
usually provided by employed persons who are not underemployed.
Source: ABS Australian Labour Market Statistics (6105.0).

PERSONS NOT IN THE LABOUR FORCE

Persons not in the labour force represent that group of the population who, during the reference
week of the ABS monthly LFS, are neither employed nor unemployed (see diagram 8.2). Interest
in this group centres primarily on their potential to participate in the labour force.

There were 5.5 million people aged 15 years and over not in the labour force at September 2008
(table 8.42). Some 15% of people (820,300) outside the labour force were marginally attached to
the labour force. These people wanted to work and were either actively looking for work but
were not available to start work in the reference week, or were not actively looking, but available
to start work (in the reference week or within four weeks). Of people not in the labour force, a
slightly higher proportion of women were marginally attached compared with men (15% and
14% respectively). Of those marginally attached, a higher proportion of men were actively
looking for work compared with women (11% and 7%).

In September 2008 there were 73,900 discouraged jobseekers. Discouraged jobseekers are
people who are marginally attached to the labour force, want to work and are available to start
work, but are not actively looking for work as they believe they will not find a job for labour
market related reasons, such as 'No jobs in locality or line of work', 'Considered too old by
employers' or 'Lacked the necessary schooling, training, skills or experience'. Of men who were
marginally attached to the labour force, 11% were discouraged jobseekers, compared with 8% of
women.
8.42 LABOUR FORCE STATUS(a) - September 2008
Males Females Persons
'000 '000 '000

Civilian population aged 15 years and over 8 298.7 8 435.2 16 733.9

Persons in the labour force 6 137.5 5 088.0 11 225.5
Employed 5 886.0 4 856.5 10 742.5
Unemployed 251.5 231.5 483.0
Persons not in the labour force 2 161.2 3 347.2 5 508.4
 With marginal attachment to the labour force 304.1 516.1 820.3
Wanted to work and were actively looking for
33.2 37.0 70.2
work
Were available to start work within four
23.1 24.5 47.6
weeks
Were not available to start work within
10.1 12.5 22.6
four weeks
Wanted to work but were not actively looking
for work and were available to start work 270.9 479.1 750.0
within four weeks
Discouraged jobseekers 34.7 39.3 73.9
Other 236.3 439.9 676.1
Without marginal attachment to the labour force 1 857.1 2 831.0 4 688.1
Wanted to work but were not actively looking
for work and were not available to start work 119.3 240.7 360.0
within four weeks
Did not want to work 1 575.7 2 451.9 4 027.6
Permanently unable to work 162.1 138.4 300.5

(a) Civilian population aged 15 years and over.

Source: ABS Persons Not in the Labour Force, Australia (6220.0).

EARNINGS

Statistics on earnings are used to help evaluate the standard of living of employees and to make
policy decisions regarding income redistribution, social welfare, taxation and wage setting.

The ABS concept of earnings is based on the definition adopted by the twelfth International
Conference of Labour Statisticians in 1973. Earnings refers to remuneration to employees for
time worked or work done, as well as remuneration for time not worked (e.g. paid annual leave).

The ABS produces a range of statistics on earnings paid to employees. The quarterly Survey of
Average Weekly Earnings (AWE) and the two-yearly Survey of Employee Earnings and Hours
(EEH) provide a number of statistical measures of the remuneration paid to employees. The EEH
survey also provides estimates of earnings for employees covered by each of the pay-setting
methods (i.e. awards, collective agreements and individual arrangements). Information regarding
pay-setting methods is available in the
Workplace relations section. The Survey of Employee Earnings, Benefits and Trade Union
Membership, which is conducted each August as a supplement to the monthly LFS, also provides
information about the earnings of employees.

The quarterly Labour Price Index (LPI) measures changes in wages and salaries, and other 'non-
wage' components which contribute to the cost to employers of employing labour ( i.e. annual
leave, superannuation, payroll tax and workers' compensation). Unlike earnings measures
produced from the AWE and EEH surveys, the LPI is unaffected by changes in the quality or
quantity of work performed, that is, it is unaffected by changes in the composition of the labour
force, hours worked, or changes in characteristics of employees (e.g. work performance). The
LPI consists of two components: a wage price index, published quarterly; and a non-wage price
index, which is available for each financial year. Information regarding the LPI is available in
the Prices chapter.

Level of earnings

Data on the level of earnings reflect the variations within different population groups, and across
industries and occupations. Changes in the level of earnings are also of interest in reflecting the
strength of labour demand and supply.

The AWE survey provides an estimate of the gross weekly earnings paid to employees by
measuring earnings during a one-week reference period in the middle month of a quarter
(excluding irregular payments not related to the reference period). Data are collected from the
payroll records of a sample of employers.

The AWE survey provides three types of earnings measures. The first is average weekly ordinary
time earnings (commonly referred to as AWOTE) for full-time adult employees, which relates to
that part of total earnings attributable to award, standard or agreed hours of work. A second
measure is full-time adult total earnings, which includes both ordinary time and overtime pay. A
third measure is total earnings for all employees (including full-time and part-time, adult and
junior).

Graph 8.43 shows AWOTE from May 1999 to May 2009. Over the ten-year period, AWOTE for
full-time adult male employees increased from $796 to $1,268 (or 59%), while for full-time adult
female employees it increased from $668 to $1,054 (or 58%).
8.43 Average Weekly Ordinary Time Earnings(a)

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In May 2009 the difference between male and female average weekly earnings was lowest for
full-time adult AWOTE (where female earnings were 83% of the male figure of $1,268) and
highest for all employee total earnings (where female earnings were 65% of the male figure of
$1,110) (table 8.44). The latter difference reflects the inclusion of part-time employees (a higher
proportion of female employees work part time) and the inclusion of overtime pay (of which
men earn more than women). In May 2009, 44% of female employees worked part time
compared with 16% of male employees.
8.44 AVERAGE WEEKLY EARNINGS - May 2009
Males Females Persons
$ $ $

Full-time adult ordinary time earnings 1 267.7 1 053.7 1 187.8

Full-time adult total earnings 1 334.3 1 068.1 1 234.9
All employees total earnings 1 110.3 726.6 918.6

Source: ABS Average Weekly Earnings, Australia (6302.0).

Table 8.45 presents AWOTE for full-time adult men and women by states and territories in May
2009. The highest weekly earnings for men and women were in the Australian Capital Territory
($1,408 for men and $1,256 for women). The lowest weekly earnings were in Tasmania for both
men ($1,037) and women ($934).
8.45 AVERAGE WEEKLY EARNINGS(a), By state and territory - May 2009
Males Females Persons
$ $ $

New South Wales 1 280.1 1 085.4 1 206.5

Victoria 1 239.5 1 041.9 1 165.9
Queensland 1 241.4 1 004.6 1 152.9
South Australia 1 180.4 1 018.6 1 118.5
Western Australia 1 401.3 1 062.6 1 287.0
Tasmania 1 037.4 933.5 1 001.7
Northern Territory 1 247.5 1 037.2 1 150.9
Australian Capital Territory 1 407.7 1 256.3 1 340.3
Australia 1 267.7 1 053.7 1 187.8

(a) Full-time adult ordinary time earnings.

Source: ABS Average Weekly Earnings, Australia (6302.0).
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In May 2009, the Mining industry recorded the highest AWOTE for full-time adults ($1,950 for
men and $1,528 for women) (graph 8.46). The industries with the lowest AWOTE for full-time
adults were Accommodation and food services ($922 for men and $790 for women) and Retail
trade ($950 and $822 respectively) .

AWOTE for full-time adult women was less than for men in all industries. The largest difference
between the earnings of full-time adult males and females occurred in Rental, hiring and real
estate services, with females earning 67% of males. The difference in earnings was smallest in
Transport, postal and warehousing (the average earnings of full-time adult females were 92% of
full-time adult males).
 8.46 Average Weekly Ordinary Time Earnings(a), By industry(b) - May 2009

Data on earnings are also available from the EEH survey. This survey provides additional
information on employee characteristics such as occupation. Average weekly ordinary time cash
earnings (i.e. including amounts salary sacrificed) for full-time adult employees by occupation
for August 2008 are shown in graph 8.47. For men and women, Labourers recorded the lowest
average weekly ordinary time cash earnings of all the occupation groups ($866 for men and $747
for women). The occupation group with the highest weekly earnings was Managers ($1,886 for
men and $1,494 for women).

Men had higher average weekly ordinary time cash earnings than women in each major
occupation group. For full-time adult employees, the proportional difference between average
weekly ordinary time cash earnings for men and women was smallest for Machinery operators
and drivers (average earnings of women were 93% of those of men) and greatest for Managers
and Community and personal service workers (both 79%).
 8.47 AVERAGE WEEKLY ORDINARY TIME CASH EARNINGS(a), By occupation(b) -
^August 2008

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The Survey of Employee Earnings, Benefits and Trade Union Membership provides data on
average weekly earnings across a range of socio-demographic characteristics.

In August 2008, average weekly earnings of full-time workers was more than double that of part-
time workers across all age groups. Full-time workers earned, on average, $1,163 per week in all
jobs, compared with $428 for part-time workers. Workers with the lowest average weekly
earnings were those aged 15-19 years ($536 for full-time workers and $154 for part-time
workers) while those with the highest average weekly earnings were aged 35-44 years ($1,333
for full-time workers and $535 for part-time workers) (graph 8.48).
8.48 Average weekly earnings(a), By age group - August 2008

WORKPLACE RELATIONS

Workplace relations can be regarded as the relationships and interactions in the labour market
between employers and employees (and their representatives), and the intervention in these
relations by governments, government agencies and tribunals (e.g. Fair Work Australia).

Historically, governments have regulated the Australian labour market to varying degrees.
Changes to the structure or processes underpinning the workplace relations environment have
generally followed changes in governments, and periods of social or economic change. For most
of the last century, employee-employer relationships were shaped by highly centralised
Commonwealth and state tribunal-based systems of conciliation and arbitration. However, since
the late 1980s, the workplace relations environment in Australia has undergone significant
change and is now characterised by more decentralised arrangements.

The field of workplace relations is complex and diverse and, for statistical purposes, is not easily
measured. The ABS collects information on a number of topics to provide an insight into the
state of the workplace relations environment, including the methods used for setting pay (i.e.
awards, collective agreements and individual arrangements), industrial disputes, and trade union
membership.

How pay is set

Information on the methods of setting the main part of employees' pay is collected in the EEH
survey. Three different methods of setting pay are identified - awards, collective agreements, and
individual arrangements.

Awards or pay scale only - awards are legally enforceable determinations made by federal or
state industrial tribunals that set the terms of employment (pay and/or conditions), usually in a
particular industry or occupation. From March 2006, pay rates for employees in the federal
jurisdiction who were previously paid according to an award are now contained within the
Australian Pay and Classification Scales (Pay Scales). An award or pay scale may be the sole
mechanism used to set the pay and/or conditions for an employee or group of employees, or
alternatively may be used in conjunction with an individual or collective agreement. Employees
are classified to the award or pay scale only category if they were paid at the rate of pay
specified in the award pay scale. If an employee was paid more than the rate of pay specified in
the award or pay scale they are included in the individual arrangement category.

Collective agreements, which include enterprise and workplace agreements, are agreements
between an employer (or group of employers) and a group of employees (or one or more unions
or employee associations representing employees). Collective agreements set the terms of
employment, and are usually registered with a state or federal industrial tribunal or authority.

Individual arrangements are arrangements between an employer and an individual employee

for the terms of employment (pay and/or conditions) for the employee. Employees whose pay is
set by an individual arrangement include those whose pay is set by an individual contract,
registered individual agreement (e.g. an Australian Workplace Agreement), common law
contract and employees receiving over award payments. Working proprietors of incorporated
businesses are included in the individual arrangements category within EEH.

In August 2008, 40% of employees had their pay set by collective agreement, 39% by a
registered or unregistered individual arrangement and 17% of employees had their pay set by
award or pay scale only. Working proprietors of incorporated businesses accounted for 5% of
employees (graph 8.49).

The proportion of employees who had their pay set by an award or pay scale decreased from
19% in May 2006 to 17% in August 2008. The coverage of this method of setting pay has
declined over the last 8 years, from 23% in May 2000 to 17% in August 2008. For registered and
unregistered individual arrangements, there was a 4 percentage point increase between May 2006
(35%) and August 2008 (39%). The proportion of employees whose pay was set by a collective
agreement had a 1 percentage point decrease between May 2006 (41%) and May 2008 (40%).
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8.49 METHODS OF SETTING PAY

In August 2008 nearly half (45%) of employees in the private sector had their pay set by an
unregistered individual arrangement (i.e. which was not registered with a federal or state
tribunal) and a further 26% of employees in the private sector had their pay set by a registered
collective agreement. In contrast, almost all (96%) of the public sector employees had their pay
set by a registered collective agreement (table 8.50).

The proportion of female employees who had their pay set by award or pay scale only was 20%,
compared with 13% of male employees. Collective agreements were also a more common
method of setting pay for female employees (43%) than for male employees (37%), while
registered or unregistered individual arrangements were more common amongst male employees
than female employees (43% compared with 34%). Male employees were twice as likely (8%) to
be working proprietors of incorporated businesses than female employees (4%).
8.50 METHODS OF SETTING PAY, Proportion of employees, By sector - August 2008
Collective Agreement Individual Arrangement
Award All
Working Proprietor
or pay methods
Registered Unregistered Registered Unregistered of Incorporated Total
scale of setting
Business
only pay
% % % % % % % %
 Males

Private
15.7 25.2 *0.6 2.7 47.5 8.3 58.6 100.0
Sector
Public
*0.3 94.5 0.9 1.2 3.1 .. 4.3 100.0
Sector
All
13.3 35.9 0.6 2.5 40.7 7.0 50.2 100.0
Sectors

Females

Private
25.8 26.1 0.8 2.0 41.5 3.8 47.3 100.0
Sector
Public
*0.5 97.0 *0.3 0.9 1.3 .. 2.2 100.0
Sector
All
19.9 42.6 0.7 1.8 32.2 2.9 36.9 100.0
Sectors

Persons

Private
20.4 25.6 0.7 2.4 44.7 6.2 53.3 100.0
Sector
Public
*0.4 96.0 0.5 1.1 2.0 .. 3.1 100.0
Sector
All
16.5 39.2 0.6 2.2 36.5 5.0 43.7 100.0
Sectors

* estimate has a relative standard error of 25% to 50% and should be used with caution
. . not applicable
Source: ABS Employee Earnings and Hours, Australia, August 2008 (6306.0).
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The use of the various methods of setting pay differs between occupation groups (table 8.51).
Collective agreements were most common for Professionals (52%) and least common for
Managers (20%). Registered or unregistered individual arrangements were the most common
method of setting pay for Managers (59%), Clerical and administrative workers (47%) and
Technicians and trades workers (46%). Award or pay scale only as a method of setting pay was
highest for Community and personal service workers (32%), Sales workers (31%) and Labourers
(30%).
8.51 METHODS OF SETTING PAY, Proportion of employees, By occupation(a) - August
2008
Individual Arrangement
Award
Working proprietor
or pay Collective Registered or All methods
of incorporated Total
scale agreement(b) unregistered of setting pay
business
only
% % % % % %

Managers 2.3 19.8 59.0 18.9 77.9 100.0

Professionals 4.2 52.4 37.7 5.6 43.3 100.0
Technicians and trades
18.4 28.6 45.7 7.3 53.0 100.0
workers
Community and personal
31.7 46.6 20.9 *0.8 21.7 100.0
service workers
Clerical and 10.7 38.6 46.8 3.9 50.7 100.0
administrative workers
Sales workers 30.5 36.5 31.7 1.3 33.0 100.0
Machinery operators and
12.7 44.8 39.0 3.5 42.5 100.0
drivers
Labourers 29.8 41.0 27.8 *1.4 29.2 100.0
Total all occupations 16.5 39.8 38.7 5.0 43.7 100.0

* estimate has a relative standard error of 25% to 50% and should be used with caution
(a) Classified according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO),
First edition (1220.0).
(b) Includes registered and unregistered collective agreements.
Source: ABS Employee Earnings and Hours, Australia, August 2008 (6306.0).

The industries with the highest proportion of employees with their pay set by collective
agreements were Public administration and safety (88%) and Education and training (81%) (table
8.52). This is consistent with the high proportion of employees in the public sector who had their
pay set by collective agreements (96%). With one in two employees having their pay set by
award or pay scale only, Accommodation and food services has the highest proportion of
employees (50%) for this method of setting pay. Registered and unregistered individual
arrangements were most common in the Wholesale trade (76%) and Professional, scientific and
technical services (71%) industries and least common in Public administration and safety (8%)
and Education and training (10%).
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8.52 METHODS OF SETTING PAY, By industry(a) - August 2008

Individual Arrangement
Award or
Collective Registered or Working proprietor of All methods of
pay scale Total
agreement(b) unregistered incorporated business setting pay
only
% % % % % %

Mining *1.2 30.9 66.1 1.8 67.9 100.0

Manufacturing 12.2 29.9 54.3 3.6 57.9 100.0
Electricity, gas, water
*5.4 67.5 25.8 1.2 27.0 100.0
and waste services
Construction 9.1 25.6 49.1 16.1 65.3 100.0
Wholesale trade 9.0 10.1 75.5 5.3 80.8 100.0
Retail trade 28.9 36.2 31.1 3.8 34.9 100.0
Accommodation and
50.3 19.3 28.4 2.1 30.5 100.0
food services
Transport, postal and
8.3 48.9 35.9 6.9 42.8 100.0
warehousing
Information media and
5.6 31.1 59.2 4.1 63.3 100.0
telecommunications
Financial and
*2.2 38.9 53.0 6.0 59.0 100.0
insurance services
Rental, hiring and real
20.2 *11.9 57.5 10.4 67.9 100.0
estate services
Professional, scientific
5.4 8.6 70.9 15.0 85.9 100.0
and technical services
Administrative and
33.9 15.7 48.0 2.5 50.5 100.0
support services
Public administration
*3.6 88.2 7.9 *0.3 8.2 100.0
and safety
Education and training *8.4 81.2 9.7 *0.7 10.4 100.0
Health care and social
17.2 64.5 16.2 2.1 18.2 100.0
assistance
Arts and recreation
14.2 37.9 43.6 4.3 47.9 100.0
services
Other services 25.4 7.3 58.2 9.1 67.3 100.0
Total all industries 16.5 39.8 38.7 5.0 43.7 100.0

* estimate has a relative standard error of 25% to 50% and should be used with caution
(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006
(1292.0).
(b) Includes registered and unregistered collective agreements.
Source: ABS Employee Earnings and Hours, Australia, August 2008 (6306.0).

Industrial disputes

The ABS defines an industrial dispute as a disagreement over an issue or group of issues
between an employer and its employees, which results in employees ceasing work. Industrial
disputes comprise: strikes, which are a withdrawal from work by a group of employees; and
lockouts, which are a refusal by an employer or group of employers to permit some or all of their
employees to work.

This section presents statistics on industrial disputes involving work stoppages of ten or more
working days lost. 'Working days lost' refers to working days lost by employees directly and
indirectly involved in the dispute. Directly involved employees are those who actually
participated in the dispute. Indirectly involved employees are those who were stood down at the
location where the stoppage occurred, but who were not themselves parties to the dispute.

Graph 8.53 shows that the number of working days lost per year, and the number of employees
involved, have fluctuated from year to year, but have decreased over the last two decades.
8.53 Industrial Disputes

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There were 196,500 working days lost due to industrial disputes in 2008, an increase from the
49,700 working days lost in 2007 (table 8.54). There were also more disputes in 2008 than in
2007 (177 compared with 135). The average number of working days lost per dispute also
increased (from 368 to 1,110). From 2007 to 2008, the number of employees involved in
industrial disputes increased from 36,000 to 172,900.
8.54 INDUSTRIAL DISPUTES
Disputes Employees involved Working days lost Working days lost per dispute
no. ’000 ’000 no.

2004 692 194.0 379.8 549

2005 472 241.0 228.3 484
2006 202 122.7 132.6 656
2007 135 36.0 49.7 368
2008 177 172.9 196.5 1 110

Source: ABS data available on request, Industrial Disputes collection.

Table 8.55 shows that from 2007 to 2008, the number of working days lost per thousand
employees increased from 5 to 21. All industries recorded increases between 2007 and 2008,
except for Coal mining and Other manufacturing. The Education and Health and community
services industry grouping recorded the largest increase in working days lost per thousand
employees between 2007 and 2008 (from 11 to 76).
8.55 WORKING DAYS LOST PER THOUSAND EMPLOYEES, By selected industries(a)
2004 2005 2006 2007 2008
no. no. no. no. no.

Mining
Coal 294.5 500.1 97.1 139.4 52.7
Other 117.5 27.2 13.5 0.5 2.3
Manufacturing
Metal products; Machinery
71.7 103.7 102.1 20.3 30.1
and equipment
Other 34.1 27.7 12.9 11.9 6.6
Construction 223.7 153.8 24.0 10.1 19.9
Transport and storage; Communication
37.9 20.0 15.8 3.2 5.3
services
Education; Health and community
81.8 28.9 29.2 11.4 75.7
services
Other industries(b) 10.0 2.2 1.7 0.4 3.4
All industries 45.5 26.4 14.9 5.4 21.0

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993
(1292.0).
(b) Includes: Agriculture, forestry and fishing; Electricity, gas and water supply; Wholesale trade; Retail trade;
Accommodation, cafes and restaurants; Finance and insurance; Property and business services; Government
administration and defence; Cultural and recreational services; and Personal and other services.
Source: ABS data available on request, Industrial Disputes collection.

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Trade union membership

A trade union is defined as an organisation, consisting predominantly of employees, whose

principal activities include the negotiation of rates of pay and conditions of employment for its
members. In August 2008 there were 1.8 million employees who were trade union members.
This represents 19% of all employees. Table 8.56 shows in 2008 the public sector had a higher
proportion of employees with trade union membership than the private sector (42% compared
with 14%).
8.56 TRADE UNION MEMBERSHIP - August 2008
Males Females Persons
Sector % % %

Public 43.9 40.6 41.9

Private 14.8 11.9 13.6
All sectors 19.0 18.8 18.9

Source: ABS Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0).

Graph 8.57 shows that the rate of trade union membership peaked at 61% in 1962, before
declining rapidly between 1962 and 1970. This period was followed by increasing membership
during the 1970s. Since then the proportion of employees who were trade union members has
steadily declined.
8.57 Trade Union Membership, Proportion of employees who were^trade union members

Some of the factors contributing to the decline in trade union membership include the changing
workplace relations environment and the changing industry composition of the workforce, for
example, the emergence of industries that are not highly unionised. Another factor in the decline
in trade union membership is the increase in part-time and casual employment. These types of
employment have historically been less unionised than full-time employment.

Graph 8.58 shows that the level of trade union membership varied considerably across industries,
with the Education and training (40%), Public administration and safety (34%), Electricity, gas,
water and waste services (32%), and Transport, postal and warehousing (31%) industries being
the most unionised in 2008. The least unionised industries were Professional, scientific and
technical services and Agriculture, forestry and fishing, both at 4%. Rental, hiring and real estate
services, Wholesale trade and Accommodation and food services were the next least unionised
industries, all at 5%.
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8.58 Employees who were trade union members, By industry(a) - August 2008

Graph 8.59 shows that the level of trade union membership also varied considerably across
occupation groups, with Machinery operators and drivers (28%), Professionals (25%), and
Community and personal service workers (23%) being the most unionised in 2008. The least
unionised occupation group was Managers at 9%.
8.59 Employees who were trade union members, ^By occupation(a) - August 2008

BIBLIOGRAPHY
ABS PRODUCTS

Australian and New Zealand Standard Classification of Occupations (ANZSCO), First

Edition, 2006 (1220.0)

Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993

Edition (1292.0)

Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006

Edition (1292.0)

Australian Labour Market Statistics (6105.0)

Average Weekly Earnings, Australia (6302.0)

Census of Population and Housing, 2006

Employee Earnings and Hours, Australia (6306.0)

Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0)

Forms of Employment, Australia (6359.0)

Industrial Disputes, Australia (6321.0.55.001)

Job Search Experience, Australia (6222.0)

Job Vacancies, Australia (6354.0)

Labour Force, Australia (6202.0)

Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001)

Labour Force, Australia, Detailed, Quarterly (6291.0.55.003)

Labour Price Index, Australia (6345.0)

Labour Report, 1912-1958 (microfiche no. 61-002)

Labour Statistics: Concepts, Sources and Methods (6102.0.55.001)

Persons Not in the Labour Force, Australia (6220.0)

Trade Union Members, Australia (6325.0)

Underemployed Workers, Australia (6265.0)

WEBSITES

Australian Industrial Relations Commission, last viewed November 2009,

<http://www.airc.gov.au>

Income and welfare

INTRODUCTION

The economic wellbeing or standard of living of individuals is largely dependent on

the economic and social resources available to provide for their consumption of
goods and services and for participation in society. Such resources may be in the
form of income received from wages and salaries, investments, income support
from government, and the like. However, income does not always accurately
indicate command over goods and services, particularly when income is variable or
expenditure can be financed through running down assets or acquiring debts. Other
resources can also contribute to the level of consumption of goods and services,
including the resources of government and welfare organisations which provide
services such as aged care, respite care and child care, and the resources of family
and friends who provide assistance when needed.

Government programs aim to support Australians to achieve social and economic

outcomes and to participate in society. Such programs provide income support for
the retired, people with disabilities, carers, unemployed people, students, and
families with children. Others provide income support for other special groups, such
as war veterans, and war widows and their families. In addition to providing income
security and supporting families with children, government programs help people to
meet specific needs. For example, assistance is also provided for a range of goods
and services through pensioner concession and health cards, and other types of
programs such as those which aim to provide assistance with employment, and
advocacy for people with disabilities.

This chapter provides information on the levels and sources of income of Australia's
population, on the levels and patterns of expenditure on goods and services, and on
the levels of wealth. Information is also provided on the major income and
community support programs of the Australian Government, describing the
eligibility requirements, number of beneficiaries and government expenditure on
these programs.
This chapter contains the article Indigenous Disadvantage and Selected
Measures of Wellbeing

HOUSEHOLD INCOME, EXPENDITURE AND WEALTH

Income

This section provides indicators of the level and distribution of after-tax (disposable) household
income, after adjusting for household size and composition. The estimates of disposable income
are derived from the gross income data collected by the Australian Bureau of Statistics (ABS), in
the 2007-08 Survey of Income and Housing, and deducting estimates of income tax liability and
the Medicare levy.

Gross income includes:

 wages and salaries, and other receipts from employment including income provided as
part of salary sacrifice and/or salary packaging arrangements
 profit or loss from own unincorporated business (including partnerships)
 net investment income (in the form of interest, rent, dividends, royalties)
 government pensions and allowances
 private transfers in the form of superannuation, child support, workers' compensation and
financial support from members not living in the household.

While income is usually received by individuals, it is normally shared between partners in a

couple relationship and with dependent children. To a lesser degree, there may be sharing with
other members of the household. Even when there is no transfer of income between members of
a household, nor provision of free or cheap accommodation, members are still likely to benefit
from the economies of scale that arise from the sharing of dwellings. The income measures
shown in this section therefore relate to household income.

However, larger households normally require a greater level of income to maintain the same
material standard of living as smaller households, and the needs of adults are normally greater
than the needs of children. The income estimates are therefore adjusted by equivalence factors to
standardise the income estimates with respect to household size and composition, while taking
into account the economies of scale that arise from the sharing of dwellings. The equivalised
disposable income estimate for any household in this section is expressed as the amount of
disposable income that a single person household would require to maintain the same standard of
living as the household in question, regardless of the size or composition of the latter.

To calculate the equivalised disposable income of a household, each member of the household is
allocated 'equivalence points'. Taking the first adult in the household as having a weight of 1
point, each additional person aged 15 years or older is allocated 0.5 of a point, and each child
under the age of 15 years is allocated 0.3 of a point. Equivalised disposable household income is
then derived by dividing disposable household income by a factor equal to the sum of the
'equivalence points' allocated to the household members. The equivalised disposable income of a
single person household is the same as its unequivalised disposable income.

In 2007-08, average (mean) equivalised disposable household income for all persons living in
private dwellings (i.e. the income that a single person household would require to maintain the
same standard of living as the average person living in all private dwellings in Australia) was
$811 per week. There were approximately 20.6 million people living in private dwellings.

In 2007-08, improvements were made to income measures resulting in an increase of 5.5% in

mean equivalised disposable income, compared with the previous basis. Estimates for 2003-04
and 2005-06 were recompiled on the new basis where data were available to support the
calculation. However comparisons with these periods, and with earlier periods, will be affected
by the changed basis introduced in 2007-08.

After adjusting for changes in prices, average real equivalised disposable household income in
2007-08 ($811 per week) was 16% higher than in 2005-06 ($699 per week) and 58% higher than
in 1994-95 ($512 per week).
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For low income people (represented by the 20% of people with household income between the
bottom 10% and bottom 30% of incomes), average equivalised disposable household income
grew by 12% ($44 per week) from 2005-06 to 2007-08. A 14% increase was recorded for middle
income people and a 20% increase for high income people (graph 9.1). Over the period from
1994-95 to 2007--08 there was a 48% increase in the average real incomes of low income people
compared with 52% for middle income people and 70% for high income people.
9.1 Changes in mean real equivalised disposable household income(a)

Household characteristics

Households with different characteristics tend to have different income levels, as shown in table
9.2. Wages and salaries were the principal source of income for households with middle and high
income levels in 2007-08, while government pensions and allowances dominated for low income
households. However, low income households had the highest incidence of full ownership of
their home, reflecting the high proportion of older people in the low income category.

Middle income households contained more people on average than high income households (2.9
compared with 2.5) but contained considerably fewer employed persons (1.6 compared with 1.9).
In part, this reflects the different age profiles of the two groups, with middle income households
containing more people of non-working age. Low income households had an average of 0.7
employed persons and housed an average of 2.6 persons.
9.2 HOUSEHOLD CHARACTERISTICS, By income group - 2007-08
Low Middle High All
income(a) income(b) income(c) households

Mean equivalised disposable household income

$ 409 692 1 646 811
per week
Has PSI of wages and salaries(d) % 30.7 78.7 87.4 61.5
Has PSI of government pensions and
% 55.1 2.9 - 23.2
allowances(d)
Owns home without a mortgage % 45.8 30.3 26.9 33.2
Owns home with a mortgage % 20.1 39.5 48.9 35.1
Rents from state/territory housing authority % 6.5 *1.0 **0.2 4.5
Rents from private landlord % 23.9 26.2 21.5 23.9
Average number of persons in the household no. 2.6 2.9 2.5 2.6
Average number of employed persons in the
no. 0.7 1.6 1.9 1.3
household
Average age of household reference person years 56.4 47.2 44.8 49.9

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
- nil or rounded to zero (including null cells)
(a) Persons in the second and third income deciles.
(b) Persons in the middle income quintile.
(c) Persons in the highest income quintile.
(d) PSI = Principal source of income.
Source: ABS Household Income and Income Distribution, Australia, 2007–08 (6523.0).
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Life-cycle stages

Income levels across the population partly reflect the different life-cycle stages that people have
reached. A typical life cycle includes childhood, early adulthood, and the forming and maturing
of families. Table 9.3 compares households in different life-cycle stages.
9.3 INCOME AND HOUSEHOLD CHARACTERISTICS FOR SELECTED LIFE
CYCLE GROUPS - 2007-08
Mean
Average Average number Proportion with equivalised Proportion
Number of
number of of employed govt. pensions and disposable owning home
household
persons in persons in allowances as household without a
s
household household PSI(a) income mortgage
per week
Household
('000) no. no. % $ %
composition

Lone person,
351.2 1.0 0.9 7.3 796 *3.5
under 35
Couple only,
reference person 390.9 2.0 1.8 **1.3 1 155 *1.6
under 35
Couple with
dependent
children only
Eldest child
430.0 3.4 1.5 *4.2 871 6.2
under 5
Eldest child 5-
834.8 4.2 1.6 8.0 769 14.0
14
Eldest child 15-
509.2 4.1 2.3 5.1 824 25.5
24
Couple with
Dependent and
non-dependent 289.2 4.8 3.0 **3.5 857 28.8
children only
Non-dependent
443.1 3.3 2.3 8.1 989 52.7
children only
Couple only,
reference person 552.0 2.0 1.2 11.5 907 63.0
55-64
Couple only,
reference person 717.2 2.0 0.2 64.5 558 85.6
65 and over
Lone person aged
734.7 1.0 - 76.3 434 69.0
65 and over
One parent, one-
family
households with 497.7 3.0 0.9 44.8 520 8.1
dependent
children
All households 8 077.3 2.6 1.3 23.2 811 33.2

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
- nil or rounded to zero (including null cells)
(a) PSI = Principal source of income.
Source: ABS Household Income and Income Distribution, Australia, 2007–08 (6523.0).

Of the groups included in table 9.3, younger couples without children had the highest average
equivalised disposable household income of $1,155 per week, with an average of 1.8 employed
persons in the household. For couples with dependent children only, and with the eldest child
being under five years, average equivalised disposable household income was $871 per week
(25% lower than for the young couples without children). This lower income principally reflects
the lower average number of employed persons in these households (1.5) and the larger average
number of persons in these households (3.4) over which incomes are shared.

Average incomes were higher for households with non-dependent children, reflecting higher
proportions of employed persons in these households, but incomes were lower again for
households comprising older couples and lone persons, where the numbers of employed persons
were substantially lower.

People living in households where the reference person was aged 65 years and over had the
lowest average incomes, with lone persons' incomes at $434 per week, somewhat lower than for
couple only households ($558 per week). Older lone persons were more likely than older couples
to have government pensions and allowances as their principal source of income (76% compared
with 65%), while couples were more likely to fully own their home (86% compared to 69%).

Households comprising one parent with dependent children had an average income of $520 per
week, similar to that of older couples ($558 per week), but only 8% fully owned their home and,
therefore, a substantially greater proportion had to make mortgage or rental payments from their
income. Of these households, 45% had government pensions and allowances as their principal
source of income. On average there were 0.9 employed persons in the household.
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States and territories

There were considerable differences in the average levels of income between the states and
territories (table 9.4). Tasmania's average equivalised disposable household income was 19%
below the national average and South Australia was 8% below. The Australian Capital Territory
and the Northern Territory are shown to have the highest average incomes (27% and 8% above
the national average respectively). The high income levels reflect in part the younger age profile
of the Australian Capital Territory and the Northern Territory and the greater number of
employed persons per household. However, it also reflects the exclusion from the results of
households in areas of the Northern Territory defined as very remote which, if included, would
be likely to reduce the average income in that territory.

There are also considerable differences between the equivalised disposable household incomes
recorded in the capital cities of Australia compared with those earned elsewhere. At the national
level, average incomes in the capital cities were 25% above those in the balance of state, with all
states recording capital city average incomes above those in the balance of state. Separate
information for balance of state is not available for the Australian Capital Territory and Northern
Territory.
9.4 HOUSEHOLD INCOME PER WEEK, By state and territory - 2007-08
NSW Vic. Qld SA WA Tas. NT ACT Aust.
$ $ $ $ $ $ $ $ $

CAPITAL CITY(a)

Gross household
income per week
Mean income 1 981 1 734 1 941 1 473 1 821 1 350 1 874 2 100 1 830
Median
1 435 1 383 1 492 1 125 1 438 1 071 1 694 1 762 1 410
income
Equivalised
disposable household
income per week
Mean income 912 829 913 783 886 718 887 1 026 874
Median
737 713 754 682 763 659 808 939 734
income

BALANCE OF STATE(b)

Gross household
income per week
Mean income 1 244 1 366 1 443 1 171 1 539 1 133 na na 1 339
Median
1 041 1 036 1 177 860 1 250 938 na na 1 076
income
Equivalised
disposable household
income per week
Mean income 667 714 726 640 780 616 na na 699
Median
613 593 645 583 702 531 na na 627
income

ALL HOUSEHOLDS

Gross household
income per week
Mean income 1 690 1 632 1 664 1 395 1 753 1 224 1 847 2 100 1 649
Median
1 285 1 286 1 313 1 074 1 400 975 1 669 1 762 1 285
income
Equivalised
disposable household
income per week
Mean income 821 798 810 745 860 659 877 1 026 811
Median
676 689 696 648 740 576 811 939 692
income

na not available
(a) Capital city estimates for the ACT relate to total ACT.
(b) NT households included in Australian total for balance of state. NT estimates are not shown separately since
estimates for the NT other than Darwin are not considered reliable. Households in areas defined as very remote were
excluded, accounting for about 23% of the population in the NT.
Source: Household Income and Income Distribution, Australia, 2007-08 (6523.0).
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Income distribution

While the average equivalised disposable household income of all households in Australia in
2007-08 was $811 per week, the median (i.e. the midpoint when all people are ranked in
ascending order of income) was lower at $692 per week. This difference reflects the typically
asymmetric distribution of income where a relatively small number of people have relatively
high household incomes, and a large number of people have relatively lower household incomes
(graph 9.5).
 9.5 Distribution of equivalised disposable household income - 2007-08

Percentile ratios are one measure of the spread of incomes across the population. To illustrate the
full spread of the income distribution, the percentile ratio needs to refer to points near the
extremes of the income distribution, for example, the P90/P10 ratio. P90 (i.e. the income level
dividing the bottom 90% of the population from the top 10%) and P10 (i.e. dividing the bottom
10% of the population from the rest) are shown in graph 9.5. In 2007-08, P90 was $1,360 per
week and P10 was $317 per week, giving a P90/P10 ratio of 4.30. Various percentile ratios for
selected years are shown in table 9.6, and the changes in these ratios can provide a picture of
changing income distribution over time.

Another measure of income distribution is provided by the income shares going to groups of
people at different points in the income distribution. Table 9.6 shows that, in 2007-08, 10.1% of
total equivalised disposable household income went to people in the 'low income' group (i.e. the
20% of the population in the second and third income deciles), with 40.5% going to the 'high
income' group (represented by the 20% of the population in the highest income quintile).

The Gini coefficient is a single statistic that lies between 0 and 1 and is a summary indicator of
the degree of income inequality. Values closer to 0 represent a lesser degree of inequality (if 0,
then all household incomes would be equal), and values closer to 1 represent greater inequality
(if 1, a single household would have all the income). The smaller the Gini coefficient the more
even the distribution of income. For 2007-08, the Gini coefficient was 0.331, up from 0.314 in
2005-06. Some of the changes in the income distribution measures between 2005-06 and 2007-
08 reflect the improvements introduced in the 2007-08 cycle.
Back to top
 9.6 SELECTED INCOME DISTRIBUTION INDICATORS, Equivalised disposable
household income
1997-98 1999-2000 2000-01 2002-03 2003-04 2005-06 2007-08

Ratio of incomes of households at top

of selected income percentiles
P90/P10 ratio 3.77 3.89 3.97 4.00 3.87 4.05 4.30
P80/P20 ratio 2.56 2.64 2.63 2.63 2.55 2.58 2.63
P80/P50 ratio 1.56 1.57 1.56 1.57 1.53 1.55 1.56
P20/P50 ratio 0.61 0.59 0.59 0.60 0.60 0.60 0.59
Percentage share of total income
received by persons with
Low income(a) % 10.80 10.53 10.48 10.57 10.60 10.40 10.10
Middle income(b) % 17.65 17.65 17.63 17.62 17.60 17.40 17.00
High income(c) % 37.86 38.36 38.49 38.27 38.40 39.20 40.50
Gini coefficient no. 0.303 0.310 0.311 0.309 0.306 0.314 0.331

(a) Persons in the second and third income deciles.

(b) Persons in the middle income quintile.
(c) Persons in the highest income quintile.
Source: ABS Household Income and Income Distribution, Australia, 2007-08 (6523.0).

Household expenditure

The latest household expenditure information available is from the 2003-04 Household
Expenditure Survey, conducted by the ABS. This survey collected detailed information on the
expenditure, income and characteristics of households in Australia.

The household is the usual unit of analysis for expenditure because it is assumed that sharing of
the use of goods and services occurs at this level. If smaller units are adopted, for example,
persons, then it is difficult to attribute the use of shared items such as accommodation and
household goods, and of expenditure on items consumed by others, such as food.

In 2003-04, Australian households spent an average of $893 per week on goods and services
(table 9.7). The level and pattern of expenditure differed between households, reflecting
characteristics such as income, household composition, household size and location.

Predictably, the level of household expenditure differs between households with differing
income levels. In 2003-04, low income households (represented by the 20% of people in the
second and third income deciles) spent $564 per week on goods and services, compared with
$1,320 spent by high income households (those in the highest income quintile). Low and high
income households had average gross weekly incomes of $511 and $2,380 respectively.

The composition of a household’s weekly expenditure is also affected by the level of household
income. For example, food and non-alcoholic drinks accounted for 21% of the expenditure on
goods and services of low income households, compared with 15% for high income households.
In general, the proportion spent on household services, domestic fuel and power and tobacco
products also declined as household income rose, while the proportion spent on recreation,
clothing and footwear, and alcohol increased.

Since the Household Expenditure Survey does not collect information on all forms of income
and expenditure, and there are significant timing differences between the different components
of income and expenditure collected, caution should be exercised in comparing the income and
expenditure data. Nevertheless, for both the lowest and the second lowest income quintiles,
average weekly household income as measured in the survey is less than average weekly
household expenditure.

This does not necessarily mean that these households are spending beyond their means. Some of
the households in these quintiles will have had higher income in the past and so can finance their
expenditure by drawing on past savings. This is especially so for retired people. The lowest
quintile also includes households who reported zero or negative income. These households’
losses from their unincorporated businesses or investments equalled or were greater than their
income from all other sources. In general this group can also draw on economic resources other
than income to maintain their standard of living, at least in the short term.
Back to top
9.7 HOUSEHOLD EXPENDITURE AND CHARACTERISTICS, By equivalised
disposable household income quintile groups - 2003-04(a)
Lowest Second Third Fourth Highest All Second and
quintile quintile quintile quintile quintile households third deciles

Mean gross household income

$ 340 707 1 049 1 432 2 380 1 161 511
per week
Mean equivalised disposable
household $ 232 369 504 662 1 073 567 399
income per week
Average age of household year
57 52 47 43 44 49 53
reference person s
Average number of persons in
no. 2.1 2.8 2.8 2.7 2.4 2.5 2.5
the household
Average number of employed
no. 0.3 0.9 1.4 1.8 1.9 1.2 1.2
persons in the household
Mean household net worth $ 285 253 366 989 410 979 490 190 829 310 473 831 297 727
Family composition of
households(b)
Couple family with
% 15.0 31.9 36.0 33.5 22.7 26.9 20.2
dependent children
One parent family with
% 10.3 9.0 6.3 4.9 1.9 6.6 12.6
dependent children
Couple only % 25.6 27.6 19.7 22.5 35.9 26.5 33.9
Other one family
% 4.5 9.8 12.3 12.8 14.2 10.5 6.7
households
Multiple family
% *0.7 *1.0 *1.5 *1.8 *1.3 1.2 *1.3
households
Lone person household % 42.2 18.8 21.2 20.2 19.6 25.4 23.8
Group household % 1.6 1.9 2.9 4.4 4.4 3.0 1.6
Expenditure(c)
Current housing costs-
% 17.8 15.5 15.8 15.6 16.0 16.1 16.5
selected dwelling
Domestic fuel and power % 3.8 3.2 2.6 2.4 2.1 2.6 3.6
Food and non-alcoholic
% 19.9 19.1 17.5 16.3 15.4 17.1 20.5
beverages
 Alcoholic beverages % 1.9 2.2 2.5 2.9 3.0 2.6 1.7
Tobacco products % 2.0 1.4 1.4 1.4 0.8 1.3 1.8
Clothing and footwear % 3.5 3.7 3.9 4.1 4.2 3.9 3.6
Household furnishings
% 5.9 5.8 5.7 5.7 5.9 5.8 5.8
and equipment
Household services and
% 7.1 6.4 6.2 6.1 5.3 6.1 6.9
operation
Medical care and health
% 4.8 5.2 4.9 5.5 5.1 5.1 5.0
expenses
Transport % 14.1 14.9 16.2 16.9 15.3 15.6 13.9
Recreation % 10.3 12.5 12.6 12.3 14.7 12.8 11.5
Personal care % 1.8 1.8 1.8 2.0 2.0 1.9 2.0
Miscellaneous goods and
% 7.2 8.2 8.7 8.9 10.1 8.9 7.2
services
Mean expenditure on all
$ 490 729 917 1 082 1 320 893 564
goods and services per week
Number of households '000 1 882.7 1 418.9 1 388.1 1 441.8 1 604.3 7 735.8 1 582.7

* estimate has a relative standard error of 25% to 50% and should be used with caution
(a) Income data used in this table has been made consistent as far as possible with revised treatment of income used
in the 2007-08 Survey of Income and Housing.
(b) As a proportion of all households.
(c) As a proportion of total mean expenditure in goods and services.
Source: ABS data available on request, 2003-04 Household Expenditure Survey.

Back to top
Wealth

Wealth is a net concept measuring the extent to which the value of household assets exceeds the
value of liabilities. The 2003-04 and 2005-06 Surveys of Income and Housing collected a
comprehensive range of information on household assets and liabilities to enable the production
of statistics on net worth (or wealth). In 2005-06, the mean value of household assets was
$655,300 (table 9.8). The mean value of household liabilities was $92,500, resulting in average
household net worth of $562,900.

Owner occupied dwellings were the main form of asset held by households. Around 70% of all
households own their home outright or with a mortgage, with an average home value of
$412,500. When averaged across all households, that is, across both owner occupiers and non-
owner occupiers, the average was $286,100 and represented 44% of total average household
assets. About 20% of households owned property other than their own home, including holiday
homes and residential and non-residential property for rent. These accounted for 14% of total
household assets. Balances in superannuation funds were the largest financial asset held by
households, averaging $84,500 per household across all households and accounting for 13% of
total household assets. Around 75% of households had some superannuation assets.

Loans outstanding on owner occupied dwellings were the largest household liability. They
averaged $142,300 for owner occupier households with a mortgage, giving them a net value in
their dwellings of $275,000. Across all households, the average value of loans outstanding on
owner occupied dwellings was $49,900, or 54% of total household liabilities. Loans outstanding
for other property averaged $29,200 and accounted for 32% of total household liabilities.

The distribution of wealth (net worth) across households is very unequal, partly reflecting the
common pattern of people gradually accumulating wealth throughout their working life. In 2005-
06, the 20% of households with the lowest net worth accounted for only 1% of the net worth of
all households, with an average net worth of $27,400 per household. The share of net worth
increases with each higher net worth quintile, with 6% for the second quintile, 12% for the third
quintile, 20% for the fourth quintile, while the wealthiest 20% of households in Australia
accounted for 61% of total household net worth, with average net worth of $1.7 million per
household.

The distributional pattern of net worth is also marked when considered in terms of sources of
income. Households where the principal source of household income is 'other' income
(principally investment income) had average household net worth of $1.6 million, while those
where the principal source of income was government pensions and allowances had average
household net worth of $275,000. Net worth in renter households was on average about 13% of
the net worth for owner households without a mortgage, and about 20% of the net worth for
owner households with a mortgage.

The picture of wealth (net worth) is a little different and more equally distributed when viewed
from the perspective of the distribution of equivalised disposable incomes. The households in
which the 20% of people with the lowest household incomes live accounted for 12% of total
household net worth, similar to the shares of net worth held by the households with people in the
second and third household income quintiles. The households in which the 20% of people with
the highest household incomes live accounted for 39% of total household net worth.
9.8 HOUSEHOLD ASSETS AND LIABILITIES, AND CHARACTERISTICS, By
household net worth quintile groups(a) - 2005-06
Lowest Second Third Fourth Highest All
quintile quintile quintile quintile quintile households

ASSETS (mean values)

Financial assets
Value of accounts held with financial
$'000 3.0 9.9 14.5 25.4 71.2 24.8
institutions
Value of shares (excl. own incorporated
$'000 0.3 2.0 4.6 9.6 97.3 22.7
business)
Value of trusts $'000 0.1 0.8 2.0 4.9 42.3 10.0
Value of debentures and bonds $'000 - 0.1 0.2 0.6 3.6 0.9
Value of own incorporated business (net of
$'000 - 0.4 1.9 4.1 219.7 45.2
liabilities)
Balance of accounts with government
$'000 1.3 7.8 10.9 26.7 50.7 19.5
superannuation funds
Balance of accounts with non-government
$'000 6.6 20.5 29.1 55.5 213.5 65.0
superannuation funds
Total financial assets(b) $'000 11.5 42.0 64.1 127.4 720.4 193.0
Non-financial assets
Value of owner occupied dwelling $'000 6.5 134.7 267.5 377.7 644.0 286.1
Value of other property $'000 3.3 17.4 37.3 64.4 331.1 90.7
Value of own unincorporated business (net of
$'000 0.1 1.4 3.1 5.8 61.3 14.3
liabilities)
Value of contents of dwelling $'000 16.3 41.2 51.3 61.4 84.5 50.9
Value of vehicles $'000 6.1 15.3 17.7 22.1 35.8 19.4
Value of assets nec $'000 0.1 0.4 0.4 0.3 3.2 0.9
Total non-financial assets $'000 32.5 210.4 377.2 531.8 1 159.9 462.3
Total assets $'000 43.9 252.4 441.3 659.1 1 880.4 655.3

LIABILITIES (mean values)

Property loans
Principal outstanding on loans for owner
$'000 5.7 70.2 70.0 55.9 47.9 49.9
occupied dwelling
Principal outstanding on other property loans $'000 3.6 11.3 19.9 29.0 82.3 29.2
Total property loans $'000 9.2 81.5 89.9 84.9 130.2 79.1
Other liabilities
Debt outstanding on study loans $'000 2.6 1.4 1.1 1.0 1.3 1.5
Amount owing on credit cards $'000 1.4 2.3 2.0 2.0 3.1 2.2
Principal outstanding on loans for vehicle
$'000 2.3 3.9 3.2 2.7 2.1 2.8
puchases (excl. business loans)
Principal outstanding on investment loans
$'000 - 0.5 1.3 3.0 20.9 5.1
(excl. business and rental property loans)
Principal outstanding on loans for other
$'000 1.1 2.2 2.1 1.3 2.1 1.7
purposes (excl. business and investment loans)
Total liabilities $'000 16.6 91.8 99.5 94.8 159.7 92.4

NET WORTH (mean values)

Total household net worth $'000 27.4 160.6 341.7 564.3 1 720.7 562.9

CHARACTERISTICS

Average number of persons in the household no. 2.2 2.4 2.5 2.7 2.8 2.5
Average number of employed in the household no. 0.9 1.3 1.2 1.4 1.6 1.3
Average age of household reference person years 40.3 44.2 52.4 53.9 54.9 49.2
Mean equivalised disposable household income
$ 451.1 611.5 573.4 654.2 933.4 657.2
per week(c)
Has wages and salaries as PSI(d) % 50.2 68.4 57.2 62.0 59.3 59.4
Has government pensions and allowances as
% 43.3 24.2 32.4 24.0 6.6 26.1
PSI(d)
Owns home without a mortgage % *0.8 16.0 40.6 53.1 61.0 34.3
Owns home with a mortgage % 3.3 43.7 50.1 42.4 35.4 35.0
Rents from state/territory housing authority % 20.4 2.4 **0.1 *0.3 - 4.7
Rents from private landlord % 65.9 31.6 7.1 2.6 2.8 22.0

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
- nil or rounded to zero (including null cells)
(a) Household weighted.
(b) Includes value of other financial investments, children's assets and loans to persons not in the same household.
(c) Income data used in this table has been made consistent as far as possible with revised treatment of income used
in the 2007-08 Survey of Income and Housing.
(d) PSI = Principal source of income.
Source: ABS data available on request, Survey of Income and Housing 2005-06.

BIBLIOGRAPHY
ABS PRODUCTS

Household Income and Income Distribution, Australia, 2007-08 (6523.0)

Household Expenditure Survey: Australia: Summary of Results, 2003-04 (6530.0)

Household Wealth and Wealth Distribution, Australia, 2005-06 (6554.0)

REFERENCES

Centrelink, A Guide to Australian Government Payments, 20 March-30 June 2008

and 20 March-30 June 2009

Department of Education, Employment and Workplace Relations, 2007, Annual

Report 2006-07, Canberra

Department of Families, Housing, Community Services and Indigenous Affairs, 2009,

Annual Report 2008-09,Canberra

Department of Health and Ageing, 2009, Annual Report 2008-09, Canberra

Department of Veterans' Affairs, 2009, Annual Report 2008-09,Canberra

Attorney-General's Department, 2009, Annual Report 2008-09, Canberra

WEBSITES

Department of Education, Employment and Workplace Relations, last viewed

November 2009, <http://www.dewr.gov.au>

Department of Families, Housing, Community Services and Indigenous Affairs, last

viewed November 2009, <http://www.fahcsia.gov.au>

Department of Health and Ageing, last viewed November 2009,

<http://www.health.gov.au>

Department of Veterans' Affairs, last viewed November 2009,

<http://www.dva.gov.au>

Centrelink, last viewed November 2009, <http://www.centrelink.gov.au>

Attorney-General's Department, last viewed November 2009,
<http://www.ag.gov.au>

Health
INTRODUCTION
The Australian health system has a diversity of arrangements for planning, funding, delivering
and regulating health services, with a mix of private and public sector involvement.

The Australian Government, through the Health and Ageing portfolio, has significant financial
and policy responsibility for health services, including hospitals, public health and mental health,
while the state and territory governments are largely responsible for the direct provision of such
services. Local governments and non-government organisations are also involved in the direct
provision of health services. Private, non-salaried practitioners provide most medical, dental and
allied health care. Two major national subsidy schemes - Medicare and the Pharmaceutical
Benefits Scheme - are funded by the Australian Government to cover all Australian citizens and
permanent residents. The schemes are discussed in Health care delivery and financing. In
2007-08 total expenditure on health as a proportion of Australia's gross domestic product was
9.1%.

This chapter contains two articles. The article Children who are Overweight or Obese
discusses the influence of socio-economic factors and physical activity on childhood obesity.
Mental Health examines the prevalence of anxiety, affective and substance use disorders in
Australians aged 16-85 years.

Data in this chapter are obtained from the most up-to-date sources available, including
information from the ABS on the health status of Australians collected in the 2007-08 National
Health Survey (NHS), the 2003 Survey of Disability, Ageing and Carers (SDAC) and from
Causes of Death collection. Previous health surveys were conducted in 1995, 2001 and 2004-05.
The chapter also draws extensively on data from the Australian Institute of Health and Welfare
(AIHW) and the Australian Government Department of Health and Ageing (DoHA).

Data from the 2007-08 NHS in this chapter are presented using the International Classification
of Diseases, 10th revision (ICD-10).

HOW AUSTRALIANS RATE THEIR HEALTH

The World Health Organisation (WHO) defines health as 'a state of complete physical, mental
and social wellbeing, and not merely the absence of disease or infirmity'. While the level of
disease or infirmity can be assessed by mortality, disability and morbidity statistics, the presence
of positive wellbeing is more difficult to measure.

Health and wellbeing

In 2007-08 the majority of Australians aged 15 years and over considered themselves to be in
good health, with 85% reporting their health status as good, very good or excellent. This is
similar to the proportion reported in the 2004-05 NHS (84%). The proportion of people reporting
fair or poor health increased with age, from 7% among those aged 15-24 years to 39% among
those aged 75 years and over.

In 2007-08 people with higher educational qualifications were generally more likely to report
their health to be excellent. Similarly, people who were employed or with a higher income were
more likely to report their health as very good or excellent (table 11.1).
11.1 SELF-ASSESSED HEALTH STATUS(a)(b) - 2007-08
Excellent Very good Good Fair Poor
Population Characteristics % % % % %

Highest educational qualification(c)

Bachelor degree or
28.7 39.0 23.4 6.6 2.2
above
Advanced
23.7 39.4 27.4 7.3 2.2
Diploma/Diploma
Certificate 17.1 36.1 32.3 10.8 3.6
Labour force status
Employed 22.9 40.0 28.3 7.3 1.5
Unemployed 20.4 29.8 32.0 14.5 3.3
Not in the labour force 15.0 26.6 30.3 18.4 9.7
Location
Major cities 21.4 35.7 29.0 10.2 3.8
Inner regional 19.8 34.9 28.5 12.0 4.8
Outer regional/ other
15.3 35.9 30.6 13.3 4.9
areas
Household composition
Person living alone 16.2 30.6 30.1 16.2 6.9
Couple only 17.6 35.0 28.9 12.9 5.6
Couple with children 24.8 37.9 27.5 7.8 2.0
All other households 18.1 34.8 31.5 11.1 4.5
Household income(d)
1st quintile 10.1 22.4 30.6 24.6 12.2
5th quintile 26.1 40.5 26.1 6.1 1.1
Index of disadvantage(e)
1st quintile 13.2 32.4 30.7 16.2 7.4
5th quintile 26.4 38.4 25.0 8.0 2.1
Persons 20.3 35.5 29.1 11.0 4.1

(a) This table shows the percentage of persons in the specified population (eg persons employed) who have reported
their health status as either excellent, very good, good, fair or poor. The age distribution of the population should be
considered in interpreting these estimates.
(b) Persons aged 15 years and over.
(c) 18 years and over
(d) Gross weekly cash income.
(e) Where the first quintile represents the 20% of the total population living in areas with the most disadvantage and
the fifth quintile represents the 20% of the population with the least disadvantage.
Source: ABS data available on request, 2007-08 National Health Survey.
HEALTH STATUS

Morbidity

The 2007-08 NHS found 75% of the Australian population reported one or more long-term
conditions (i.e. conditions that have lasted, or are expected to last, for six months or more). In
most cases, respondents were asked about conditions which had been medically diagnosed.

Among adults aged 18 years and over in 2007-08, women in general were more likely than men
to report selected long-term conditions with the exception of total/partial hearing loss, back
problems and diabetes (table 11.2). They have a longer life expectancy at birth, 83.5 years
compared with 78.7 for men (based on statistics for 2006). This results in higher proportions of
women in the older age groups where long-term conditions are common.
11.2 SELECTED LONG-TERM CONDITIONS(a)(b) - 2007-08
Males Females Persons
% % %

Long sightedness 29.0 35.5 32.3

Short sightedness 25.0 31.0 28.1
Arthritis 16.9 22.6 19.8
Back problems(c) 18.3 17.1 17.7
Hayfever & allergic rhinitis 15.9 18.3 17.1
Total/partial hearing loss 16.8 9.3 13.0
Hypertensive disease 11.6 13.0 12.3
Asthma 7.8 11.7 9.8
Diabetes mellitus 6.0 4.4 5.1

(a) Conditions which have lasted or are expected to last six months or more.
(b) Persons aged 18 years and over.
(c) Includes back pain, back problems n.e.c and disc disorders.
Source: ABS data available on request, 2007-08 National Health Survey.

The most commonly reported long-term conditions were problems with eyesight affecting 60%
of adults, including long and short sightedness (32% and 28% respectively), arthritis (20%), back
problems (18%), hayfever and allergic rhinitis (17%), deafness (13%) hypertensive disease
(12%), and asthma (10%).

The most commonly reported long-term conditions among children and young adults were
respiratory conditions (17% of children under 15 years and 28% of persons aged 15-24 years),
with asthma being the most prevalent for children under 15 years of age (10%)(graph 11.3) and
hayfever and allergic rhinitis for those aged 15-24 (17%).

While respiratory conditions were also common among people aged 65 years and over (29%),
other conditions were more prevalent in this age group. Sight conditions, arthritis, hypertension
and hearing loss were the most common long-term conditions among those aged 65 years and
over.
 11.3 SELECTED LONG-TERM CONDITIONS(a), By age 2007-08

Mortality

There were 137,854 deaths registered in 2007, consisting of 70,569 males and 67,285 females.
The age-standardised death rate of 595 deaths per 100,000 population in 2007 was 4.6% lower
than the corresponding rate of 624 in 1997. This is consistent with continuing improvements in
life expectancy in Australia (see the Population chapter).

Malignant neoplasms (cancer) and diseases of the cardiovascular system, together account for
almost two-thirds of all deaths. Over the ten years to 2007, death rates from cancer and diseases
of the cardiovascular system have both declined, though the decline has been more substantial in
death rates from diseases of the cardiovascular system (graph 11.4).
Back to top

11.4 DEATH RATES FROM CARDIOVASCULAR DISEASE AND CANCER(a)

11.5 LEADING CAUSES OF DEATH 2007(a)

Rank(c) Underlying Cause of Death ICD-10 code rate(b)
 MALES

1 Ischaemic heart disease I20-I25 128

2 Cerebrovascular disease I60-I69 49
3 Trachea and lung cancer C34 46
4 Chronic lower respiratory disease J40-J47 33
5 Prostate cancer C61 31
6 Dementia and Alzheimer's disease F01, F03, G30 24
7 Colorectal cancer C18-C21 22
8 Blood and lymph cancer C81-C96 21
9 Diabetes E10-E14 20
10 Suicide(d) X60-X84 14
All causes 595

FEMALES

1 Ischaemic heart disease I20-I25 71

2 Cerebrovascular disease I60-I69 47
3 Dementia and Alzheimer's disease F01, F03, G30 31
4 Trachea and lung cancer C34 24
5 Breast cancer C50 22
6 Chronic lower respiratory disease J40-J47 19
7 Colorectal cancer C18-C21 15
8 Diabetes E10-E14 14
9 Diseases of the kidney and urinary system N00-N99 12
10 Heart failure I50 11
All causes 486

(a) Cause of death data for 2007 are subject to revision.

(b) Rate per 100,000.
(c) Causes listed are the leading causes of death registered in 2007 based on the WHO recommended tabulation of
leading causes.
(d) Excludes sequelae of suicide (Y87.0). Care needs to be taken in interpreting figures relating to suicide due to
limitations in the data.
Source: ABS data available on request, 2007 Causes of Death.

Causes of death

Ischaemic heart diseases (heart attack and related disorders) are the leading causes of death,
followed by cerebrovascular disease for both males and females (table 11.5). Gender differences
are apparent among other leading causes.

Back to top

11.6 LIFE EXPECTANCY AT BIRTH, OECD COUNTRIES (years) - 2006

Female Male
Australia 83.5 78.7
Austria 82.7 77.1
Belgium 82.3 76.6
Canada 83.0 78.4
Czech Republic 79.9 73.5
Denmark 80.7 76.1
Finland 83.1 75.9
France 84.1 77.2
Germany 82.4 77.2
Greece 82.0 77.1
Hungary 77.4 69.0
Iceland 83.0 79.4
Ireland 82.2 77.4
Italy 84.2 78.5
Japan 85.8 79.0
Korea 82.4 75.7
Luxembourg 81.9 76.8
Mexico 77.2 72.4
Netherlands 81.9 77.6
New Zealand 82.2 78.0
Norway 82.9 78.2
Poland 79.6 70.9
Portugal 82.3 75.5
Slovakia 78.2 70.4
Spain 84.4 77.7
Sweden 82.9 78.7
Switzerland 84.2 79.2
Turkey 75.3 71.1
United Kingdom 81.7 77.3
United States of America 80.7 75.4

Source: OECD Health Data 2009.

Lung cancer is ranked third for males followed by chronic lower respiratory diseases; while for
females, dementia and Alzheimer's disease is third and trachea and lung cancer fourth.

International comparisons

Australia's death rates from all causes are among the lowest in the world, consistent with
Australia's relatively high life expectancy. Life expectancy at birth for males and females in
selected countries are shown in table 11.6.
 11.7 Infant mortality rates(a) 1907-2007

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Infant mortality

In 2007, 1,179 infant deaths were registered in Australia. The infant mortality rate (IMR) is
defined as the number of deaths of children under one year of age per 1,000 live births. The
infant mortality rate of 4.1 infant deaths per 1,000 live births in 2007-08 was lower than the
2005-06 rate (4.9), and less than half that recorded in 1987 (8.7 deaths per 1,000 live births).

Australia's infant mortality has declined significantly in the last 100 years. In 1907, around one
in 12 infants did not survive to their first birthday (IMR of 81.1 in 1907); in 2007, approximately
one in 250 infants born did not survive their first year of life (IMR of 4.1) (graph 11.7).

The decline in infant mortality in the early 20th century has been linked to improvements in
public sanitation, increased standard of living and health education and improvements in medical
technology such as neonatal intensive care units.

DISABILITY STATUS

The World Health Organisation (WHO) defines disability in the context of health as 'an umbrella
term for impairments, activity limitations and participation restrictions. It denotes the negative
aspects of the interaction between an individual (with a health condition) and that individual's
contextual factors (environmental and personal factors)'.

The 2003 Survey of Disability, Ageing and Carers (SDAC) found that one in five people in
Australia (20%) had a reported disability, with the rate much the same for males and females
(20%). The disability rate increased with age, reaching 92% for those aged 90 years and over.

Some 6% of the population had a profound or severe core activity limitation (sometimes or
always needing assistance with self-care, mobility or communication). The level of profound or
severe core activity limitation gradually increased from 3% among those aged 0-4 years, to 10%
among those aged 65-69 years, then increased sharply to 74% for those aged 90 years and over
(graph 11.8).
11.8 DISABILITY RATES - 2003

HEALTH RISK BEHAVIOURS

A range of factors influence the health outcomes of an individual or the population. These
include the interaction of socio-economic, biomedical and environmental factors which
contribute to illness and injury. There are also specific lifestyle behaviours which may have
further impact on people's health, increasing the risk of chronic disease.

The 2007-08 NHS collected information on a number of lifestyle behaviours:

 21% of adults were current smokers.
 73% of adults reported sedentary or low exercise levels in the two weeks prior to
interview.
 13% of adults consumed alcohol at levels which, if continued, would be risky or a high
risk to their health in the long term.

The following information is based on the National Health and Medical Research Council's
(NHMRC) Dietary Guidelines for Australians recommended daily intake of fruit and vegetables
at specific ages:
 9% of adults reported they usually consumed five or more serves of vegetables every day.
 51% of adults reported they usually consumed two or more serves of fruit every day.

Comparisons between the 1995 and 2007-08 National Health Surveys showed an increase in the
proportion of adults who were overweight or obese. In 1995 38% of adults were overweight and
19% obese. The 2007-08 results found that 37% of adults were overweight and 25% obese. For
more information on this topic see article, Children who are Overweight or Obese in this
edition of Year Book Australia.
  61% of adults were classified as overweight or obese based on their measured height and
weight.
 25% of children aged 5-17 were classified as overweight or obese based on their
measured height and weight.

The proportion of adults currently smoking decreased from 24% to 21% between 1995 and 2007-
08. There was an increase in the proportion of adults reporting sedentary or low levels of
exercise from 69% to 73% and the proportion of adults drinking at risky levels (8% to 13%).

FEATURE ARTICLE 1: CHILDREN WHO ARE OVERWEIGHT OR OBESE

Obesity is a major contributor to the global burden of chronic disease and disability. Around the
world, levels of childhood obesity have been rising for a number of reasons including a shift in
diet towards increased intake of foods that are high in fat and sugars and a reduction in the
amount of time spent on physical activity.

Obesity not only has significant health and social impacts, but also considerable economic
impacts. According to Access Economics, in 2008, the total annual cost of obesity in Australia,
including health system costs and productivity and carers costs was estimated to be around $58
billion.

In 2007, the Australian Government announced the development and promotion of healthy
eating and physical activity guidelines for children. These measures will form part of the
Government's Plan for Early Childhood and Plan for Tackling Obesity. One of the main aims of
the National Preventative Health Taskforce is to develop a National Obesity Strategy.

Changes over time

In 2007-08, one-quarter of all Australian children, or around 600,000 children aged 5-17, were
overweight or obese, up four percentage points from 1995. The obesity rate for children
increased from 5% in 1995 to 8% in 2007-08 (graph 11.9).
11.9 CHILDRENS BODY MASS INDEX - 1995, 2007-08(a)
Age and sex

Between 1995 and 2007-08 there was a significant increase in the proportion of boys who were
obese. The rate of obesity for boys aged 5-17 years doubled from 5% in 1995 to 10% in 2007-08.
Increases in obesity occurred for younger and older boys. For boys aged 5-12 years, 8% were
obese, up from 4% in 1995. Of boys aged 13-17 years, 13% were obese, up from 6% in 1995.

While for boys there were significant increases in obesity, there were no such increases for girls.
The obesity rate for girls aged 5-17 remained unchanged at 6%. While the obesity rate for girls
did not change from 1995 to 2007-08, the proportion of girls who were overweight increased.
The increase occurred for girls aged 13-17 years, up from 12% in 1995 to 20% in 2007-08. In
contrast, there was no change for younger girls aged 5-12 years, with the overweight rate
remaining constant at 17% in both time periods.

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Socio-economic factors

The Socio-Economic Indexes for Areas (SEIFA) Index of Disadvantage summarises various
attributes such as income, unemployment and educational attainment of an area in which people
live. Children living in the areas of greatest relative disadvantage had more than double the rate
of obesity (28%) of children living in areas with the lowest relative disadvantage (13%). Aside
from socio-economic differences between areas in terms of education, income and employment,
some areas may also offer greater opportunities for physical activity and greater access to healthy
food options.

Physical activity

The 2004 Australia's Physical Activity Recommendations for Children suggest that children aged
5-18 years need a minimum of 60 minutes of moderate to vigorous physical activity every day.
The following section looks at physical activity using results from two ABS surveys. The 2006
Children's Participation in Culture and Leisure Activities Survey collected information on the
participation of children aged 5-14 years in organised sports and informal sports during the 12
months prior to interview. It provides insight into some of the physical activities in which
children aged 5-14 are participating. The 2007-08 National Health Survey collected information
for children aged 15-17 only.
 11.10 CHILDREN'S PARTICIPATION IN ORGANISED SPORT(a) - 2006

Children aged 5-14 years

In 2006, 63% of children had played sport which had been organised by a school, club or
association outside of school hours, an increase from 59% in 2000. Over the six year period,
girls' participation in organised sport rose by six percentage points from 52% to 58%, compared
with three percentage points for boys from 66% to 69%. While the participation rates of about
45% were similar for children aged 5 years, by 13 years of age the participation rate for boys was
73% and for girls was 55%. The highest rate of participation for boys was at 10 years (77%),
while for girls it was 9 years (67%) (graph 11.10).

Children who did participate were spending 6 hours per fortnight on average on organised sport
participation. Swimming and outdoor soccer were the most popular sports. The survey also
collected information on informal sports, such as bike riding, rollerblading and skateboarding, to
get some indication of children's involvement in informal physical activity. The survey found
that around two thirds of children had been bike riding and a quarter had been skateboarding or
rollerblading in the previous two weeks. The amount of time spent on these informal activities
was the same as organised sport participation, with an average of 6 hours per fortnight (graph
11.10).
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Children aged 15-17 years

In 2007-08 over three-quarters of children aged 15-17 took part in sport or recreational exercise
in the two weeks prior to the National Health Survey. However, just under one quarter said that
they either did no exercise, or very low amounts during the two week period.

Sedentary lifestyles
According to the Department of Health and Ageing Australia's Physical Activity
recommendations for children, children who do not get enough physical activity and spend
significant amounts of time in sedentary states increase their likelihood of poor fitness, raised
cholesterol and being overweight in adulthood. Related research has also shown that the
incidence of obesity is highest among children who watch TV for long periods each day,
compared with children who watch TV for a smaller amount of time each day. Australian
guidelines recommend that children should not spend more than two hours a day watching TV,
playing computer games or using other electronic media for entertainment.
11.11 PROPORTION OF CHILDREN'S TIME SPENT ON SELECTED ACTIVITIES(a)
- 2006

In 2006, almost all children aged 5-14 had watched television, videos or DVDs during the two-
week period of the survey and almost two-thirds had played electronic or computer games.
Around 45% of children who watched television, videos or DVDs, and 10% of children who
played electronic or computer games, did so for 20 hours or more over the fortnight period.
Overall, the average amount of time spent on these two activities by most children averaged
across a two-week period, was 2 hours per day (graph 11.10).

Data sources and definitions

The information in this article comes from the 2007-08 NHS and 2006 Children's Participation in
Cultural and Leisure Activities Survey (4901.0). Physical activity results from these surveys may
not represent total physical activity, since the surveys only cover sport organised by a school,
club or association which has been played outside of school hours. The article looks at children
aged 5-17 years unless stated otherwise. Body Mass Index (BMI) was calculated from measured
height and weight information (using the formula weight (kg) divided by the square of height
(m)). Height and weight were measured for children in the 2007-08 NHS. Overweight and
obesity are defined according to the BMI scores, indicating a relationship between height and
weight. There are BMI cutoffs for children which are based on the definitions of adult
overweight and obesity adjusted to specific age and sex categories for children. For a detailed list
of the cutoffs used to calculate BMI for children, please see the ABS National Health Survey
Users' Guide (4363.0.55.001).
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REFERENCES

World Health Organisation Global Strategy on Diet, Physical Activity and Health, Overweight
and Obesity, viewed 6 July 2009.

Access Economics, The Cost of Obesity, Canberra, 2008.

Department of Health and Ageing, Early Childhood Nutrition, viewed 15 June 2009.

Australian Health Ministers Communique, Delivering Results, 18 April 2008.

Australian Institute of Health and Welfare, Making Progress, Canberra, 2008.

King, T et al. 2005, 'Weight and place; a multilevel cross sectional survey of area-level
disadvantage and overweight and obesity in Australia' International Journal of Obesity,
viewed 5 August 2009.

ABS Australian Social Trends, (4102.0) September 2009.

Department of Health and Ageing, Australia's Physical Activity Recommendations for

children, viewed 21 May 2009.

CHRONIC DISEASE

Diseases such as diabetes, heart disease, cancer and arthritis are associated with a high burden of
disease and account for a high financial burden in Australia. The burden of disease and injury is
a measurement of the time lost due to premature death along with years of healthy life lost due to
disability. Cancer and cardiovascular disease accounted for 37% of the total burden of disease
and injury in Australia in 2003, mortality from these diseases accounting for 80% of that burden.
Mental disorders and neurological and sense disorders were the next leading causes of the burden
of disease and injury, together accounting for a further 25% of the total burden. However,
mortality from these disorders contributed little.

Many chronic diseases can be prevented or delayed by addressing lifestyle factors such as poor
diet or insufficient exercise, or by better management of conditions such as high blood pressure
or obesity. There are a range of initiatives in place to prevent and manage chronic disease and
reduce its impact.

Table 11.12 shows health expenditure on seven major disease groups. In total, expenditure in
these areas in 2004-05 accounted for $25.5 billion (b), equivalent to 48% of allocated health
expenditure for the year.
11.12 HEALTH EXPENDITURE BY DISEASE GROUP, 2004-05 ($million)
 Community and public
Selected disease groups Hospital(a) Pharmaceuticals(b)(c) Research Total
health(d)

Cardiovascular disease 4 142 1 636 - 164 5 942

Arthritis and other
3 184 680 - 92 3 956
musculoskeletal disease
Injuries 3 267 124 - 14 3 405
Mental disorders 1 949 854 1 177 148 4 128
Cancer 2 951 236 222 378 3 787
Diabetes mellitus 659 275 - 55 989
Respiratory disease 2 516 725 - 69 3 310
Total selected disease
18 668 4 530 1 399 920 25 517
groups
Total allocated health
36 121 8 144 1 399 1 715 52 660
expenditure

- nil or rounded to zero (including null cells)

(a) Includes public and private acute and psychiatric hospitals. Also includes medical services provided to private
admitted patients in hospital.
(b) Includes all pharmacueticals for which a prescription is needed, inluding benefit paid, private and under
copayment prescriptions.
(c) Excludes over the counter medicaments such as vitamins, minerals, patent medicines, first aid and wound care
products, analgesics, feminine hygiene products, coldsore preparations and a number of complementary health
products that are sold in both pharmacies and other retail outlets.
(d) Comprises expenditure on community mental health services and public health cancer screening programs.
Source: Australian Institute of Health and Welfare, Health Expenditure Australia 2007-08. HWE 46, Canberra.

Cardiovascular disease

Cardiovascular disease encompasses all diseases and conditions involving the heart and blood
vessels including high blood pressure, heart disease, stroke and peripheral vascular diseases.
While ischaemic heart disease has been the leading cause of death in Australia over the past 10
years, the number of deaths due to this cause has decreased, from 28,299 in 1998 to 22,729 in
2007.

In 2004-05, the highest health expenditure of all disease groups was for cardiovascular disease,
accounting for 11.3% of total allocated health spending.
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Morbidity

The 2007-08 NHS indicated that around 3.4 million Australians (16%) reported having a
cardiovascular disease as a long-term condition (having lasted or being expected to last for six
months or more). The most common cardiovascular disease reported was hypertension (high
blood pressure) reported by 9% of the population. In the 45-54 age group, 10% reported having
hypertension. Of those aged 75 years and over, the proportion increased to 39%.

Cardiovascular disease was mostly experienced by people in middle and older age groups.
Almost one in five (19%) of those aged 45-54 years had a current long-term cardiovascular
disease, rising progressively to 62% of those aged 75 years and over.

Mortality

Despite declines in mortality rates in the last 30 years, cardiovascular disease remains one of the
leading causes of death in Australia in 2007, accounting for 46,626 or 34% of all deaths.
Ischaemic heart disease accounted for 17% of all deaths, and cerebrovascular diseases a further
8%.

The standardised death rate for cardiovascular disease was 197 per 100,000 population in 2007, a
decrease from 201 per 100,000 population in 2006 and 300 per 100,000 population in 1998
(graph 11.13). The standardised death rate for males in 2007 was 236 per 100,000 and 164 per
100,000 for females.
11.13 DEATH RATES FOR CARDIOVASCULAR DISEASE(a) 1997-2007

Arthritis and other musculoskeletal diseases

Osteoarthritis, rheumatoid arthritis and osteoporosis are the most commonly occurring
musculoskeletal conditions. Although they are not immediately life threatening and have low
associated mortality, they have substantial influence on the quality of life and impose a heavy
economic burden on the community.

In 2004-05, total health expenditure attributable to musculoskeletal diseases was $4.0b, which
accounted for 7.5% of allocated health system expenditure (table 11.12).

Osteoarthritis is one of the most common types of arthritis and affects the cartilage in the joints.
Cartilage cushions the ends of bones where bones meet to form a joint. In osteoarthritis this
cartilage degenerates. Osteoarthritis is most commonly found in the knees, neck, lower back, hip
and fingers.

Rheumatoid arthritis is the most common form of inflammatory arthritis. Inflammatory arthritis
is characterised by joint swelling and destruction. In rheumatoid arthritis the immune system
attacks the tissues lining the joints. As a result of this attack, inflammation occurs causing pain,
heat and swelling. The disease can also cause inflammation of connective tissue, blood vessels
and organs.

Osteoporosis (porous bones) is a disease where bone density and structural quality deteriorate,
leading to an increased risk of fracture. The most common sites of fracture are the bones of the
spine, the hip and the wrist. However other bones are commonly affected, including the shoulder,
ribs and the pelvis.
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Morbidity

The 2007-08 NHS shows 15% of people reported that they currently had arthritis; 13% of males
and 17% of females. Of those with arthritis, 51% had osteoarthritis and 14% rheumatoid arthritis.
The proportion of people with arthritis increased with age from less than 1% of people less than
25 years to 48% of people aged 65 years and over (graph 11.14).

Overall, 3% of people had osteoporosis: 1% of males and 5% of females.The proportion of

people with osteoporosis increased, from less than 1% of people aged less than 45 to 11% of
people aged 65-74, then decreased to 9% in people aged over 75.
11.14 PREVALENCE OF ARTHRITIS AND OSTEOPOROSIS 2007-08

Injuries and deaths due to external causes

Injury and poisoning are broad terms that encompass the adverse effects on the human body that
may result from events. These events may be accidental, such as falls, vehicle accidents and
exposure to chemicals, or intentional such as suicide attempts and assaults by other people. Such
events, and the factors involved in them, are collectively known as 'external causes of injury and
poisoning', and are a significant source of preventable illness, disability and premature death in
Australia.

Males and females, and people in different age groups, experience different levels and types of
risk from injury events (risk in this sense refers to both the probability of an injury event
occurring and the severity of the injuries that may result). High risk drinking, drug use and
hospitalisation due to transport accidents and assault are all more prevalent among the 15-24 age
groups. Young people, especially young men, are at a greater risk than other age groups of
experiencing injury and death due to the above behaviours.

Morbidity

The 2007-08 National Health Survey found that nearly 2.5 million people (12%) had a condition
that was caused by injury. The most common conditions that were caused by an injury were back
problems, affecting 8.2% of people, and partial deafness or hearing loss, affecting 1.0% of
people.

Injuries that resulted in long-term conditions most commonly occurred at work (42%), as a result
of exercise or sport (20%), in a motor vehicle accident (17%), or in the home (12%) (graph
11.15).
11.15 LOCATION AT WHICH INJURY OCCURRED

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Mortality

In 2007, external causes were responsible for 7,893 deaths, or 5.7% of all registered deaths. The
standardised death rate for external causes was 36.1 per 100,000 people in 2007, a decrease from
36.7 in 2006, and 44.6 in 1998.

Males are more likely to die from external causes than females, and at a younger age. In 2007,
consistent with previous years, nearly two-thirds (65%) of deaths resulting from external causes
were males. Median age at death for deaths from external causes was 45.5 years for males and
66.6 years for females.

There were 1,880 deaths attributed to intentional self-harm (suicide) in 2007, accounting for 24%
of deaths from external causes. Transport accidents accounted for 1,340 deaths, or 17% of total
deaths from external causes.

Cancer
Cancer is a disease of the body's cells. Normally, cells grow and reproduce in an orderly manner,
however, sometimes, abnormal cells will grow. These abnormal cells may then reproduce and
spread uncontrolled throughout the body. Cancer is the term used to describe about 100 different
diseases including malignant tumours, leukaemia (a disorder of the white blood cells), sarcoma
of the bones, Hodgkin's disease and non-Hodgkin's lymphoma (affecting the lymph nodes) in
which uncontrolled cell growth threatens the rest of the body. Malignant neoplasms (cancer) are
a major cause of death in Australia and accounted for 7.2% of allocated health system
expenditure in 2004-05 (table 11.12).

Morbidity

It should be noted that the 2007-08 National Health Survey excluded people in hospitals, nursing
and convalescent homes and hospices. This is expected to have a greater effect on data for cancer
than for most other conditions.

In the 2007-08 NHS, an estimated 326,600 Australians (1.6%) reported they currently had a
medically diagnosed malignant neoplasm.

According to the AIHW and the Australasian Association of Cancer Registries there were
100,514 new cancer cases registered in 2005. During the 1998-2004 period, the five-year relative
survival proportions calculated for all cancers for females were 64% (53% in 1982-1986), higher
than those for males - 58% (41% in 1982-86). All cancer 5 year relative survival rates increased
for diagnoses made during the 1998-2004 period, compared to earlier data, which may be a result
of earlier detection and treatment advances.

Of all cancers in 2005, prostate cancer was the most commonly occurring followed by colon and
rectal. The next most common cancers were breast, followed by skin melanoma and lung cancer
(table 11.16). Cancer occurred more commonly in males than females and was most prevalent in
people aged 65 years and over (6%) but just over two-thirds (66%) of those with skin cancer
were aged less than 65 years.
11.16 DEATHS, INCIDENCE AND SURVIVAL RATES FOR COMMON
REGISTERABLE CANCERS
DEATHS (2007) INCIDENCE (2005) FIVE YEAR SURVIVAL(a)

Males Females Males Females Males Females

Cancer site no. no. no. no. % %

Stomach 704 425 1 228 676 24.4 25.3

Colon 1 295 1 244 4 400 4 184 60.9 61.6
Rectum(b) 474 293 2 222 1 247 61.9 64.5
Pancreas 1 233 1 015 1 119 1 062 4.5 4.7
Lung(c) 4 713 2 910 5 738 3 444 10.7 14.0
Skin (melanoma) 864 415 6 044 4 640 89.7 94.1
Breast 26 2 680 95 12 170 82.0 87.8
Uterus - 338 - 1 830 - 82.1
Cervix - 208 - 734 - 71.8
Ovary - 848 - 1 205 - 39.8
Prostate 2 938 - 16 349 0 85.3 -
Testis 26 - 677 0 96.8 -
Bladder 630 295 1 707 555 62.3 54.8
Kidney 539 316 1 528 769 65.6 66.0
Brain 666 457 812 610 18.5 19.4
Thyroid 41 64 396 1 216 87.7 95.3
Unknown primary 1 318 1 211 1 658 1 568 10.6 7.6
Hodgkin's Disease 43 27 279 248 84.8 85.8
Non-Hodgkin's
733 586 2 094 1 809 61.6 62.6
Lymphoma
Leukemia 892 577 1 568 1 023 48.2 47.3
All cancers 22 774 17 513 56 158 44 356 58.4 64.1

- nil or rounded to zero (including null cells)

(a) Cohort of records diagnosed in 1998-2004.
(b) Excluding anus and anal canal.
(c) Including trachea and bronchus.
Source: ABS data available on request, 2007 Causes of Death; Australian Institute of Health and Welfare, Cancer
survival and prevalence in Australia: cancers diagnosed from 1992 to 2004, CAN 38.

Mortality

In 2007 cancer accounted for 40,287 deaths or 29% of all deaths registered. Of these, there were
22,774 male deaths and 17,513 female deaths (table 11.16).

More males than females died of cancer with 130 male deaths per 100 female deaths for the 2007
registration year. The median age of people dying from cancer in 2007 was 74.7 years for males,
75.3 years for females and 74.9 years for all cancer deaths. Potential life lost due to cancer deaths
was 186,439 years for males and 148,808 years for females.

Mortality is influenced by the number of new cases of cancer (incidence) and the length of time
lived after the initial diagnosis of cancer is made (survival). Relative survival is a measure that
takes into consideration the crude survival (time between diagnosis and death) in the cancer
population, and the corresponding expected survival in the general population.
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Diabetes mellitus

Diabetes mellitus is a long-term condition characterised by high blood glucose level, which
results from either the body producing little or no insulin, or the body not using the insulin
properly (insulin resistance). Insulin is a hormone produced by the pancreas that helps the body
cells use glucose.

There are three major types of diabetes mellitus. Type 1 diabetes is marked by extremely low
levels of insulin. Type 2 diabetes is marked by reduced levels of insulin, or the inability of the
body to use insulin properly. Gestational diabetes (which occurs in about 5% of pregnancies of
women who have not been previously diagnosed with diabetes) is not usually long-term.
However, for women diagnosed with gestational diabetes, there is an increased risk of
developing Type 2 diabetes later in life.
Diabetes is a costly disease, associated with substantial morbidity and mortality, primarily from
cardiovascular complications, eye and kidney diseases, and limb amputations. In 2004-05, total
health expenditure attributable to diabetes was nearly $1.0b, accounting for 1.9% of allocated
recurrent health system expenditure (table 11.12).

Morbidity

Results from the 2007-08 NHS indicate that 818,200 Australians or around 4% reported having
diabetes as a long-term condition. Results from the three successive surveys show diabetes is a
growing health problem in Australia. The prevalence of diabetes has risen from 3.0% in 2001, to
3.5% in 2004-05 and 4.0% in 2007-08.

Mortality

In 2007, diabetes mellitus was the underlying cause of death in 3,810 deaths, 2.8% of all deaths
registered. Of these, 1,923 deaths were males and 1,887 females. The highest number of deaths
resulting from diabetes over the past ten years was recorded in 2007, with the proportion of all
deaths represented by this cause increasing from 2.3% in 1998 to 2.8% in 2007.

In addition to deaths where diabetes was the underlying cause, there were a further 9,291 deaths
in 2007 where diabetes was listed as an associated (or contributing) cause of death. Where
diabetes was recorded as the underlying cause of death, other conditions listed as associated
causes included ischaemic heart disease (51%) and hypertensive diseases (32%).

Asthma

Asthma is a chronic inflammatory disorder of the lung's air passages which makes them narrow
in response to various triggers. This leads to episodes of shortness of breath and wheezing.
Asthma can begin at all ages, including the very young. The disease can start as a mild chronic
cough and lead to mild or severe wheezing, and sometimes even to respiratory arrest.

Although asthma has low associated mortality, people with asthma can experience reduced
quality of life and require a range of health services, from general practitioner care to emergency
department visits or hospital in-patient care. It is one of the most frequent reasons for
hospitalisation among children aged 0-9 years.

The management of asthma is an important public health issue because of the personal burden it
places on those with asthma, often with onset in childhood, and the financial burden it places on
the health system. Of respondents with long-term asthma in 2007-08, 22% had a day away from
work, school or study and 9% visited a hospital or emergency department in the 12 months prior
to interview.
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Morbidity

The prevalence of asthma in Australia is one of the highest in the world, with more than two
million Australians (10%) reporting the disease in 2007-08. Asthma is more prevalent in young
people than older age groups. For people under 25 years of age, the prevalence of asthma was
11%. Up to 14 years of age, asthma was more common among males, however asthma was more
prevalent among females in all age groups 15 years and over.

FEATURE ARTICLE 2: MENTAL HEALTH

An individual's ability to relate with their family, friends, work-mates and the broader
community is affected by their mental health. People suffering from a mental disorder can
experience significant distress and disability.

The annual cost of mental illness in Australia has been estimated at $20 billion, which includes
the cost of lost productivity and labour force participation. In 2003, mental disorders were
identified as the leading cause of healthy years of life lost due to disability.

This article focuses on people aged 16-85 years who had experienced mental illness or substance
use disorder in the 12 months prior to being surveyed in 2007.

Definitions

Unless otherwise stated, the information in this article relates to people aged 16-85 years and is
based on the International Classification of Diseases and Related Health Problems (ICD-10).
Some ICD-10 disorder criteria have a 'diagnostic exclusion rule', so that one disorder takes
precedence over another. This means that if, for example, a person's symptoms of anxiety are due
to the presence of post-traumatic stress disorder, that person will not also be diagnosed with
generalised anxiety disorder.

All prevalence data presented (including comorbidity data) are subject to diagnostic exclusion
rules. While this article often separates the discussion of mental disorders by type, some of the
people interviewed had more than one mental disorder which may add to the effects and/or
severity they experience.

Data source

Most of the information in this article comes from the 2007 National Survey of Mental Health
and Wellbeing (SMHWB). Measuring the prevalence of mental disorders in the community is a
complex task, as such disorders are usually determined through clinical diagnosis. The SMHWB
only covered those disorders which could be identified using an interview-based household
survey. A modified version of the Composite International Diagnostic Interview was used to
diagnose disorders.

The SMHWB was also conducted in 1997 but there were differences in the application of the
diagnostic criteria in 1997 compared with 2007, so the results are not comparable and 1997 data
are not shown in this article.

PREVALENCE
In 2007, 45% of Australians aged 16-85 years, (or 7.3 million people), had at some point in their
lifetime experienced a mental disorder. In the 12 months prior to the survey women were more
likely than men to have had symptoms of mental illness. A higher rate of anxiety disorders
among women was the main contributor to this difference (graph 11.17).
11.17 PROPORTION OF PEOPLE AGED 16-85 WITH A MENTAL DISORDER(a) 2007

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Anxiety disorders

Anxiety disorders generally involve feelings of tension, distress or nervousness. In 2007, anxiety
disorders were the most common class of mental disorders, affecting 14% of all people aged 16-
85 years in the 12 months prior to the survey. Women were more likely to have experienced
anxiety disorders than men, 18% to 11% (graph 11.18). Anxiety disorders were most common in
women aged 16-54 years, (21%), compared with women aged 65-85 years (6.3%).

Affective disorders

Affective or mood disorders involve mood disturbance or change in affect. Depression and
dysthymia may involve signs such as a depressed mood, loss of self-confidence and esteem and
reduced energy or activity over a period of at least two weeks. Bipolar disorder involves episodes
of mania either alone or together with depressive episodes. Manic episodes may be characterised
by less need for sleep, increased activity or restlessness and reckless behaviour. Affective
disorders affected 6.2% of people aged 16-85 years, 7.1% of women and 5.3% of men. The rate
was higher for those aged 16-44 years (7.6%) than for those aged 55-85 years (3.3%) (graph
11.18).

Substance use disorders

Substance use disorders, involving harmful use of, or dependency on, alcohol or other drugs
were slightly less prevalent than other types of mental disorders, affecting 5.1% of people aged
16-85 years. Substance use disorders were more common in men than in women and most
prevalent in men aged 16-24 years (13%) (graph 11.18).
11.18 Proportion of people with a mental disorder in the^ previous 12 months - 2007

Severity

A range of criteria, such as suicide attempts, substance dependence and interference in various
areas of a person's life, are combined to obtain a measure of the overall level of impairment
experienced by people with mental disorders. The impairment is categorised into three levels:
severe, moderate and mild. Higher levels of severity may be associated with a range of factors, in
particular, affective disorders and comorbidity. Of all people with a mental disorder in 2007, just
over one-fifth (21%) had a severe disorder, one-third (33%) had a moderate disorder and just
under half (46%) had a mild disorder.

Comorbidity

People with a mental illness may have more than one disorder at any one time. This is known as
comorbidity. The disorders may or may not be from the same group of mental health disorders.
Having multiple mental disorders is associated with greater impairment, higher risk of suicidal
behaviour and greater use of health services.

In 2007, 1.4 million or 38% of people with a disorder had two or more 12-month mental
disorders. A mix of affective and anxiety disorders was the most common combination.
Back to top

Work

Employment provides income as well as an opportunity for social engagement and improved
self-esteem. In 2007, unemployment was higher for those with a mental illness (4.0%) than those
without (2.7%). The employment to population ratio was lower for people with a mental illness
(69%) than those without (76%). The gap was greater for women than men (8 percentage points
compared with 3 percentage points).

MENTAL HEALTH SERVICE USE

Recent decades have seen less use of residential mental institutions and increased use of
community mental health services. People with a mental illness may use a variety of services to
help improve their ability to work or care for themselves.

In 2007, nearly two-thirds (65%) of people with a mental disorder had not used services for their
mental health problems in the 12 months before the survey. Most of those people who did not
access any services reported that they had no need for any type of assistance.

People aged 16-34 years were less likely to have used services for their mental health problems
(29%) than people aged 35-54 (41%) or 55-85 years (37%) (table 11.19). The most common
group of disorders for young people was substance use disorders (often related to alcohol). These
were more likely to be mild disorders and may have therefore contributed to the lower rate of
service use.

Women (41%) were more likely than men (28%) to have used services for mental health
problems. This is consistent with higher usage of health services by women in general.

Of people with an affective disorder, 50% reported using services for mental health problems,
compared with less than a quarter of people with an anxiety disorder or 11% of those with a
substance use disorder. This may be related to the differing severity levels of these types of
disorders, since over half of those people with an affective disorder were rated as severe.
11.19 People with mental disorders(a), by health services used for mental health problems(b)
- 2007
General Total who used services
Other(c People who had a need not
practitione Psychologist for mental health
) fully met
r problems
% % % % %

Sex
Male 18.0 13.1 15.1 27.5 25.2
Female 29.9 13.2 19.9 40.7 28.9
Age group
(years)
16-34 20.3 11.8 14.7 28.6 26.2
35-54 27.7 16.2 21.0 40.5 30.3
55-85 28.9 8.7 17.6 37.3 22.1
Geography
Major Cities of
25.5 15.5 18.6 36.9 29.4
Australia
Other areas of
22.9 8.3 16.0 30.8 22.7
Australia
Mental
disorders
Mood disorder
41.9 *21.0 23.0 49.7 33.5
only
Anxiety 12.2 6.5 10.4 22.0 15.8
disorder only
Substance-use
*6.9 **4.5 *5.6 *11.1 7.2
disorder only
One mental
15.8 8.4 11.3 24.0 16.7
disorder only
Two or more
mental 39.3 21.0 28.3 52.7 44.6
disorders
Total aged 16-
24.7 13.2 17.8 34.9 27.3
85 years

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
(a) People aged 16-85 years with mental disorders within the previous 12 months
(b) Health services used within the previous 12 months. Includes consultations with: psychiatrist, mental health
nurse, social worker, counsellor, medical specialist, and complementary/alternative therapist
(c) Other health professional includes: medical specialists, other professionals providing general services and
complementary and alternative therapists.
Source: ABS data available on request, National Survey of Mental Health and Wellbeing.

The most common service used was visiting a GP (25%), followed by seeing a psychologist
(13%) (table 11.19). GP consultation was the most common service used by both sexes, across
all ages, types of mental disorders and across geographical areas.

Men and women with mental disorders were equally likely to use the services of a psychologist
for mental health problems however people from major cities were almost twice as likely to have
used a psychologist (15%) compared with those from other areas (8%). This may be related to
less access to such services outside major cities.

In 2007, there were about 872,000 people who had a mental health disorder and felt they had an
unmet need for assistance. The most common type of perceived unmet need was for counselling
(16%), followed by information (14%) and social intervention (12%).

Mental health services in Australia

In the four years to 2007-08, expenditure on state and territory mental heath services as a whole
increased by an average of 5.6% per year, to $3.0 billion.

The introduction of Medicare Benefits Schedule (MBS) allied health items for people with
chronic conditions and complex care needs in July 2004, followed by the introduction of the
MBS items provided by psychologists, occupational therapists and social workers from
November 2006, resulted in the overall number of services subsidised by Medicare for both
psychiatrists and allied health professionals to almost double to nearly 4 million in 2007-08,
from just over 2 million services per annum in the three years prior to 2006-07.

The number of visits to GPs for mental health reasons increased by an average of 4.4% per year
in the four years to 2007-08, to an estimated 11.9 million encounters that year.

Geographic differences were also evident in the MBS subsidised mental health services provided
by psychiatrists and allied health professionals (psychologists, social workers and occupational
therapists) in 2007-08. The age standardised rate per 1,000 mental health services per person was
12.3 in Major cities, 2.9 services per 1,000 people in Remote areas and 1.6 services per 1,000
people in Very remote areas.
Back to top

REFERENCES

Australian Bureau of Statistics, 2007 National Survey of Mental Health and Wellbeing:
Summary of Results, (4326.0).

Australian Bureau of Statistics, 2004-05 National Health Survey: Summary of Results,

(4364.0).

Australian Institute of Health and Welfare (2008), Australia's Health 2008, AIHW AUS 99,
<http://www.aihw.gov.au/publications>

Australian Institute of Health and Welfare (2008), Mental Health Services in Australia 2006-
07

Australian Institute of Health and Welfare (2004), Rural, regional and remote health - A guide
to remoteness classifications, PHE 53

Council of Australian Governments (2006), National Action Plan on Mental Health 2006-
2011.

Kessler, RC, Chui, WT, Demler, O and Walters, EE, 2005, Prevalence, severity, and
comorbidity of 12 month DSM-IV disorders in the National Comorbidity Survey
Replication in the Archives of General Psychiatry, vol.62, no. 6, viewed 6 May 2009 at
<http://archpsych.ama-assn.org>

Senate Community Affairs Committee (2008), Towards recovery: mental health services in
Australia.

World Health Organization, 'International Classification of Diseases', viewed 17 December

2008, <http://www.who.int/classifications/icd/en/>

FEATURE ARTICLE 2: MENTAL HEALTH

An individual's ability to relate with their family, friends, work-mates and the broader
community is affected by their mental health. People suffering from a mental disorder can
experience significant distress and disability.
The annual cost of mental illness in Australia has been estimated at $20 billion, which includes
the cost of lost productivity and labour force participation. In 2003, mental disorders were
identified as the leading cause of healthy years of life lost due to disability.

This article focuses on people aged 16-85 years who had experienced mental illness or substance
use disorder in the 12 months prior to being surveyed in 2007.

Definitions

Unless otherwise stated, the information in this article relates to people aged 16-85 years and is
based on the International Classification of Diseases and Related Health Problems (ICD-10).
Some ICD-10 disorder criteria have a 'diagnostic exclusion rule', so that one disorder takes
precedence over another. This means that if, for example, a person's symptoms of anxiety are due
to the presence of post-traumatic stress disorder, that person will not also be diagnosed with
generalised anxiety disorder.

All prevalence data presented (including comorbidity data) are subject to diagnostic exclusion
rules. While this article often separates the discussion of mental disorders by type, some of the
people interviewed had more than one mental disorder which may add to the effects and/or
severity they experience.

Data source

Most of the information in this article comes from the 2007 National Survey of Mental Health
and Wellbeing (SMHWB). Measuring the prevalence of mental disorders in the community is a
complex task, as such disorders are usually determined through clinical diagnosis. The SMHWB
only covered those disorders which could be identified using an interview-based household
survey. A modified version of the Composite International Diagnostic Interview was used to
diagnose disorders.

The SMHWB was also conducted in 1997 but there were differences in the application of the
diagnostic criteria in 1997 compared with 2007, so the results are not comparable and 1997 data
are not shown in this article.

PREVALENCE

In 2007, 45% of Australians aged 16-85 years, (or 7.3 million people), had at some point in their
lifetime experienced a mental disorder. In the 12 months prior to the survey women were more
likely than men to have had symptoms of mental illness. A higher rate of anxiety disorders
among women was the main contributor to this difference (graph 11.17).
11.17 PROPORTION OF PEOPLE AGED 16-85 WITH A MENTAL DISORDER(a) 2007

Back to top

Anxiety disorders

Anxiety disorders generally involve feelings of tension, distress or nervousness. In 2007, anxiety
disorders were the most common class of mental disorders, affecting 14% of all people aged 16-
85 years in the 12 months prior to the survey. Women were more likely to have experienced
anxiety disorders than men, 18% to 11% (graph 11.18). Anxiety disorders were most common in
women aged 16-54 years, (21%), compared with women aged 65-85 years (6.3%).

Affective disorders

Affective or mood disorders involve mood disturbance or change in affect. Depression and
dysthymia may involve signs such as a depressed mood, loss of self-confidence and esteem and
reduced energy or activity over a period of at least two weeks. Bipolar disorder involves episodes
of mania either alone or together with depressive episodes. Manic episodes may be characterised
by less need for sleep, increased activity or restlessness and reckless behaviour. Affective
disorders affected 6.2% of people aged 16-85 years, 7.1% of women and 5.3% of men. The rate
was higher for those aged 16-44 years (7.6%) than for those aged 55-85 years (3.3%) (graph
11.18).

Substance use disorders

Substance use disorders, involving harmful use of, or dependency on, alcohol or other drugs
were slightly less prevalent than other types of mental disorders, affecting 5.1% of people aged
16-85 years. Substance use disorders were more common in men than in women and most
prevalent in men aged 16-24 years (13%) (graph 11.18).
 11.18 Proportion of people with a mental disorder in the^ previous 12 months - 2007

Severity

A range of criteria, such as suicide attempts, substance dependence and interference in various
areas of a person's life, are combined to obtain a measure of the overall level of impairment
experienced by people with mental disorders. The impairment is categorised into three levels:
severe, moderate and mild. Higher levels of severity may be associated with a range of factors, in
particular, affective disorders and comorbidity. Of all people with a mental disorder in 2007, just
over one-fifth (21%) had a severe disorder, one-third (33%) had a moderate disorder and just
under half (46%) had a mild disorder.

Comorbidity

People with a mental illness may have more than one disorder at any one time. This is known as
comorbidity. The disorders may or may not be from the same group of mental health disorders.
Having multiple mental disorders is associated with greater impairment, higher risk of suicidal
behaviour and greater use of health services.

In 2007, 1.4 million or 38% of people with a disorder had two or more 12-month mental
disorders. A mix of affective and anxiety disorders was the most common combination.
Back to top

Work

Employment provides income as well as an opportunity for social engagement and improved
self-esteem. In 2007, unemployment was higher for those with a mental illness (4.0%) than those
without (2.7%). The employment to population ratio was lower for people with a mental illness
(69%) than those without (76%). The gap was greater for women than men (8 percentage points
compared with 3 percentage points).
MENTAL HEALTH SERVICE USE

Recent decades have seen less use of residential mental institutions and increased use of
community mental health services. People with a mental illness may use a variety of services to
help improve their ability to work or care for themselves.

In 2007, nearly two-thirds (65%) of people with a mental disorder had not used services for their
mental health problems in the 12 months before the survey. Most of those people who did not
access any services reported that they had no need for any type of assistance.

People aged 16-34 years were less likely to have used services for their mental health problems
(29%) than people aged 35-54 (41%) or 55-85 years (37%) (table 11.19). The most common
group of disorders for young people was substance use disorders (often related to alcohol). These
were more likely to be mild disorders and may have therefore contributed to the lower rate of
service use.

Women (41%) were more likely than men (28%) to have used services for mental health
problems. This is consistent with higher usage of health services by women in general.

Of people with an affective disorder, 50% reported using services for mental health problems,
compared with less than a quarter of people with an anxiety disorder or 11% of those with a
substance use disorder. This may be related to the differing severity levels of these types of
disorders, since over half of those people with an affective disorder were rated as severe.
11.19 People with mental disorders(a), by health services used for mental health problems(b)
- 2007
General Total who used services
Other(c People who had a need not
practitione Psychologist for mental health
) fully met
r problems
% % % % %

Sex
Male 18.0 13.1 15.1 27.5 25.2
Female 29.9 13.2 19.9 40.7 28.9
Age group
(years)
16-34 20.3 11.8 14.7 28.6 26.2
35-54 27.7 16.2 21.0 40.5 30.3
55-85 28.9 8.7 17.6 37.3 22.1
Geography
Major Cities of
25.5 15.5 18.6 36.9 29.4
Australia
Other areas of
22.9 8.3 16.0 30.8 22.7
Australia
Mental
disorders
Mood disorder
41.9 *21.0 23.0 49.7 33.5
only
Anxiety
12.2 6.5 10.4 22.0 15.8
disorder only
Substance-use
*6.9 **4.5 *5.6 *11.1 7.2
disorder only
One mental
15.8 8.4 11.3 24.0 16.7
disorder only
Two or more
mental 39.3 21.0 28.3 52.7 44.6
disorders
Total aged 16-
24.7 13.2 17.8 34.9 27.3
85 years

* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
(a) People aged 16-85 years with mental disorders within the previous 12 months
(b) Health services used within the previous 12 months. Includes consultations with: psychiatrist, mental health
nurse, social worker, counsellor, medical specialist, and complementary/alternative therapist
(c) Other health professional includes: medical specialists, other professionals providing general services and
complementary and alternative therapists.
Source: ABS data available on request, National Survey of Mental Health and Wellbeing.

The most common service used was visiting a GP (25%), followed by seeing a psychologist
(13%) (table 11.19). GP consultation was the most common service used by both sexes, across
all ages, types of mental disorders and across geographical areas.

Men and women with mental disorders were equally likely to use the services of a psychologist
for mental health problems however people from major cities were almost twice as likely to have
used a psychologist (15%) compared with those from other areas (8%). This may be related to
less access to such services outside major cities.

In 2007, there were about 872,000 people who had a mental health disorder and felt they had an
unmet need for assistance. The most common type of perceived unmet need was for counselling
(16%), followed by information (14%) and social intervention (12%).

Mental health services in Australia

In the four years to 2007-08, expenditure on state and territory mental heath services as a whole
increased by an average of 5.6% per year, to $3.0 billion.

The introduction of Medicare Benefits Schedule (MBS) allied health items for people with
chronic conditions and complex care needs in July 2004, followed by the introduction of the
MBS items provided by psychologists, occupational therapists and social workers from
November 2006, resulted in the overall number of services subsidised by Medicare for both
psychiatrists and allied health professionals to almost double to nearly 4 million in 2007-08,
from just over 2 million services per annum in the three years prior to 2006-07.

The number of visits to GPs for mental health reasons increased by an average of 4.4% per year
in the four years to 2007-08, to an estimated 11.9 million encounters that year.

Geographic differences were also evident in the MBS subsidised mental health services provided
by psychiatrists and allied health professionals (psychologists, social workers and occupational
therapists) in 2007-08. The age standardised rate per 1,000 mental health services per person was
12.3 in Major cities, 2.9 services per 1,000 people in Remote areas and 1.6 services per 1,000
people in Very remote areas.
Back to top

REFERENCES

Australian Bureau of Statistics, 2007 National Survey of Mental Health and Wellbeing:
Summary of Results, (4326.0).

Australian Bureau of Statistics, 2004-05 National Health Survey: Summary of Results,

(4364.0).

Australian Institute of Health and Welfare (2008), Australia's Health 2008, AIHW AUS 99,
<http://www.aihw.gov.au/publications>

Australian Institute of Health and Welfare (2008), Mental Health Services in Australia 2006-
07

Australian Institute of Health and Welfare (2004), Rural, regional and remote health - A guide
to remoteness classifications, PHE 53

Council of Australian Governments (2006), National Action Plan on Mental Health 2006-
2011.

Kessler, RC, Chui, WT, Demler, O and Walters, EE, 2005, Prevalence, severity, and
comorbidity of 12 month DSM-IV disorders in the National Comorbidity Survey
Replication in the Archives of General Psychiatry, vol.62, no. 6, viewed 6 May 2009 at
<http://archpsych.ama-assn.org>

Senate Community Affairs Committee (2008), Towards recovery: mental health services in
Australia.

World Health Organization, 'International Classification of Diseases', viewed 17 December

2008, <http://www.who.int/classifications/icd/en/>

COMMUNICABLE DISEASES

Communicable diseases are capable of being transmitted from one person to another, or from
one species to another. Two major groups of communicable diseases, classified in the ICD-10,
are certain infectious and parasitic diseases (ICD-10 codes A00-B99) and acute respiratory
infections (ICD-10 codes J00-J22) which includes influenza and pneumonia as well as other
acute upper and lower respiratory infections. In 2007, these two groups accounted for 3.4% of all
deaths in Australia (4,641 deaths). Influenza and pneumonia accounted for 57% (2,623) of these
deaths. Death rates increased with age, and were greater for males than females in most age
groups. In 2007-08, there were 91,273 hospital separations in Australia with a principal diagnosis
of infectious and parasitic diseases.

Through the National Notifiable Diseases Surveillance System (NNDSS), state and territory
health authorities submit reports of more than 60 communicable disease notifications for
compilation by the Department of Health and Ageing.

The total of notifications to NNDSS in 2008 was 160,498, an increase of 9.1% on the 147,555
notifications made in 2007 (table 11.20). In 2008, sexually transmitted infections (STI) were the
most commonly reported communicable diseases, accounting for 43% of all notifications,
followed by vaccine preventable diseases (21%) and gastrointestinal diseases (17%).

Chlamydia was the most common STI (58,515 notifications, 84% of total STIs);
campylobacteriosis the most common gastroenteritis (15,533 notifications, 57% of total) and
hepatitis C (unspecified) was the most common blood-borne disease (10,932 notifications, 60%
of total).
11.20 NATIONAL NOTIFIABLE DISEASE SURVEILLANCE SYSTEM (NNDSS)
REPORTS
NOTIFICATIONS RATE(a)

Disease(b) 2007 2008 2007 2008

Bloodborne diseases
Hepatitis B (incident) 294 245 1 1
Hepatitis B (unspecified) 6 883 6 591 33 31
Hepatitis C (incident) 384 385 2 2
Hepatitis C (unspecified) 11 906 10 932 57 51
Hepatitis D 34 43 - -
Hepatitis (NEC) - 1 - -
Gastrointestinal diseases
Botulism 1 - - -
Campylobacteriosis 16 997 15 533 120 108
Cryptosporidiosis 2 812 2 005 13 9
Haemolytic uraemic syndrome (HUS) 19 31 - -
Hepatitis A 165 277 1 1
Hepatitis E 18 44 - -
Listeriosis 50 68 - -
STEC, VTEC(c) 106 107 1 1
Salmonellosis 9 534 8 313 45 39
Shigellosis 602 829 3 4
Typhoid 90 105 - 1
Other bacterial infections
Legionellosis 306 273 2 1
Leprosy 13 11 - -
Meningococcal disease (invasive) 306 285 2 1
Tuberculosis 1 174 1 225 6 6
Quarantinable diseases
Cholera 4 4 - -
Plague - - - -
Rabies - - - -
Smallpox - - - -
Viral haemorrhagic fever (NEC) - - - -
Yellow fever - - - -
Sexually transmissible infections
Chlamydial infection 52 043 58 515 248 274
Donovanosis 3 2 - -
Gonococcal infection 7 677 7 675 37 36
Syphilis - - - -
Syphilis - congenital 7 7 - -
Syphilis < 2 years duration 1 422 1 298 7 6
Syphilis > 2 years or unspecified
1 740 1 940 8 9
duration
Vaccine preventable diseases
Diphtheria - - - -
Haemophilus influenzae type b 17 25 - -
Influenza (laboratory confirmed) 10 448 9 136 50 43
Measles 12 65 - -
Mumps 586 286 3 1
Pertussis 5 347 14 524 25 68
Pneumococcal disease (invasive) 1 483 1 629 7 8
Poliomyelitis 1 - - -
Rubella 34 37 - -
Rubella Congenital 2 - - -
Tetanus 3 4 - -
Varicella zoster (Chickenpox) 1 668 1 790 8 8
Varicella zoster (Shingles) 1 561 2 313 7 11
Varicella zoster (Unspecified) 4 287 4 426 20 21
Vectorborne diseases
Arbovirus infection (NEC) 22 28 - -
Barmah Forest virus infection 1 716 2 101 8 10
Chikungunya virus infection - 9 - -
Dengue virus infection 314 559 2 3
Japanese encephalitis virus infection - 1 - -
Kunjin virus infection 1 1 - -
Malaria 568 532 3 3
Murray Valley encephalitis virus
- 2 - -
infection
Ross River virus infection 4 207 5 651 20 26
Zoonoses
Anthrax 1 - - -
Australian bat lyssavirus - - - -
Brucellosis 38 47 - -
Leptospirosis 108 112 1 1
Lyssavirus (NEC) - - - -
Ornithosis 93 103 - 1
Q fever 448 373 2 2
Tularaemia - - - -
Total 147 555 160 498 702 751

- nil or rounded to zero (including null cells)

(a) Rate per 100,000 population is calculated using the ERP at the midpoint of 2007-08.
(b) Diseases reported to NNDSS from all jurisdictions except incident Hepatitis C not reported from QLD;
campylobacteriosis not reported from NSW.
(c) SLTEC/VTEC: Shiga-like toxin producing E.coli infections.
Source: Commonwealth Department of Health and Ageing, National Notifiable Disease Surveillance System.
Back to top
HIV and AIDS

In collaboration with the state and territory health authorities and the Australian Government,
surveillance for human immunodeficiency virus (HIV) and acquired immune deficiency
syndrome (AIDS) is conducted by the National Centre in HIV Epidemiology and Clinical
Research. This centre is part of the Faculty of Medicine, University of New South Wales and is
funded primarily by the Department of Health and Ageing (DoHA).

At 31 December 2008, the cumulative number of cases of newly diagnosed HIV infections since
1985 was 28,330 (table 11.21). The average number of new HIV cases diagnoses from 2004-
2008 was 984 per year.
11.21 NEWLY DIAGNOSED HIV CASES(a), AIDS cases and deaths following AIDS(b)(c)
2004 2005 2006 2007 2008 Total(d)

HIV cases(a) 911 962 1 007 1 046 995 28 330

AIDS cases(b) 202 232 221 161 99 10 348
AIDS deaths 91 69 83 53 24 6 765

(a) Not adjusted for multiple reporting. Cumulative to 31 December 2008.

(b) Number of AIDS cases diagnosed in NSW in 2008 are not available and not included in Totals.
(c) The number of HIV/AIDS diagnoses for each year may be revised over time due to late reports, updated
information on exposure and testing history for reported cases, and removal of previously unrecognised duplicate
diagnoses.
(d) Includes all cases reported prior to 2004
Source: HIV/AIDS, viral hepatitis and sexually transmissible infections in Australia Annual Surveillance Report
2009', National Centre in HIV Epidemiology and Clinical Research, University of New South Wales; Australian
Institute of Health and Welfare.

Transmission of HIV in Australia continues to be mainly through sexual contact between men,
66% in 2008, however, the rate of exposure through heterosexual contact has risen from 19.3%
in 2005 to 27.1% in 2008 (table 11.22).
11.22 CHARACTERISTICS OF CASES OF NEWLY DIAGNOSED HIV INFECTION(a),
Number of cases and proportion of total cases
YEAR OF DIAGNOSES(a)

2004 2005 2006 2007 2008 Total(b)

Total cases no. 911.0 962.0 1 007.0 1 046.0 995.0 28 330

Males % 86.0 90.2 85.3 87.0 86.3 91.3
State and territory
New South Wales % 45.1 42.2 39.1 39.7 36.6 54.3
Victoria % 23.6 26.7 28.4 27.3 28.6 22.0
Queensland % 17.2 17.6 16.4 18.7 20.2 12.0
South Australia % 5.9 5.3 6.1 5.4 4.7 4.0
Western Australia % 5.5 6.6 7.6 7.2 7.6 5.6
Tasmania % 1.0 0.6 0.7 0.5 0.4 0.4
Northern Territory % 0.9 0.3 1.1 0.5 1.1 0.6
Australian Capital Territory % 0.8 0.7 0.6 0.9 0.7 1.1
Exposure category(c)
 Male homosexual contact % 67.5 72.3 67.6 68.4 66.0 75.7
Male homosexual contact and
% 4.0 4.3 3.9 2.8 3.2 4.3
injecting drug use
Injecting drug use(d) % 4.4 3.4 2.8 2.9 3.1 4.0
Heterosexual contact % 23.8 19.3 25.0 24.9 27.1 13.5
Haemophilia/coagulation
% - - - - - 1.2
disorder
Receipt of blood/tissue % 0.1 0.1 - - 0.1 1.0
Mother with/at risk of HIV
% 0.1 0.6 0.6 0.9 0.6 0.4
infection
Health care setting % 0.1 - - - - -
Other/undetermined % 6.9 8.5 6.8 6.4 4.8 13.9

- nil or rounded to zero (including null cells)

(a) The number of HIV/AIDS diagnoses for each year may be revised over time due to late reports, updated
information on exposure and testing history for reported cases, and removal of previously unrecognised duplicate
diagnoses.
(b) Includes all reported cases prior to 2004. Not adjusted for multiple reporting.
(c) The ‘Other/undetermined’ category was excluded from the calculation of the percentage of cases attributed to
each HIV exposure category.
(d) Excludes males who also reported a history of homosexual/bisexual contact.
Source: 'HIV and AIDS, viral hepatitis and sexually transmissible infections in Australia Annual Surveillance
Report 2009', National Centre in HIV Epidemiology and Clinical Research, University of New South Wales;
Australian Institute of Health and Welfare.

According to the National Centre in HIV Epidemiology and Clinical Research, the per capita rate
of HIV and AIDS diagnosis in Australia from 2003-2007 was at least five times higher among
people born in countries in sub-Saharan Africa than among Australian born people. In the past
five years, 60% of cases of HIV infection attributed to heterosexual contact were in people from
high HIV prevalence countries or their sexual partners.
Back to top
Children's immunisation

Immunisation programs for children are recognised as an effective public health intervention,
and have been responsible for eradicating or minimising infectious diseases such as diphtheria,
whooping cough and polio as major causes of death and disability in Australia.

The Australian Childhood Immunisation Register (ACIR), which commenced operation on 1

January 1996, aims to provide accurate and comprehensive information about immunisation
coverage for all children under the age of seven. The register is administered by Medicare
Australia and is a key component of initiatives to improve the immunisation status of Australian
children.

Immunisation coverage goals for Australia for the year 2000, recommended by the NHMRC,
called for 90% or more coverage of children at two years of age, and near universal coverage of
children at school-entry age, against diphtheria, tetanus, pertussis (whooping cough),
poliomyelitis, measles, mumps, rubella and Hib (Haemophilus influenza type b).

ACIR data indicated, at 31 December 2008, 92% of one year olds, 93% of two year olds (see
graph 11.23) and 89% of six year olds were fully immunised according to the NHMRC
Recommended Australian Standard Vaccination Schedule.
11.23 Proportion of children aged 24-27 months fully immunised, 1998-2008(a)

HEALTH OF ABORIGINAL AND TORRES STRAIT ISLANDER AUSTRALIANS

Aboriginal and Torres Strait Islander peoples experience disadvantage across a range of socio-
economic indicators. There is strong evidence from Australia and other developed countries that
low socio-economic status is associated with poor health and increased exposure to a range of
health risk factors.

General health

In the 2004-05 National Aboriginal and Torres Strait Islander Health Survey (NATSIHS),
conducted by the ABS, just over three-quarters of Indigenous people aged 15 years and over
assessed their health as good, very good or excellent while 22% reported their health as fair or
poor. After adjusting for differences in the age structure between the Indigenous and non-
Indigenous populations, Indigenous people were almost twice as likely to report their health as
fair or poor.

Long-term conditions

Around two-thirds (65%) of Indigenous people had at least one long-term health condition in
2004-05 (table 11.30). While Indigenous and non-Indigenous people overall were equally likely
to report a long-term condition, the prevalence of long-term condition(s) was higher among
Indigenous Australians than non-Indigenous Australians in the age groups from 25-54 years.

Eye/sight problems (30%), asthma (15%), back and disc disorders (13%), heart/circulatory
diseases (12%) and ear/hearing problems (12%) were the most commonly reported long-term
health conditions among Aboriginal and Torres Strait Islander peoples in 2004-05. In addition,
6% of Indigenous people reported diabetes mellitus and 2% reported kidney disease. After
adjusting for differences in the age structure between the Indigenous and non-Indigenous
populations, Indigenous people were more than ten times as likely as non-Indigenous people to
have kidney disease, three times as likely to have diabetes, and one and a half times as likely to
have asthma.

For detailed information on cardiovascular disease, diabetes and kidney disease among
Indigenous Australians, refer to Selected chronic conditions among Aboriginal and Torres
Strait Islander peoples in Australian Social Trends, 2007 (4102.0).
11.30 INDIGENOUS PERSONS: Selected long-term health conditions and risk factors -
2004-05
Total Indigenous Indigenous to non-Indigenous rate ratio(a)
% %

Long-term health conditions (ICD-10)

Eye/sight problems 30 0.9
Asthma 15 1.6
Back problems 13 1.2
Ear/hearing problems(b) 12 1.0
Heart and circulatory problems/diseases 12 1.3
Arthritis 9 1.2
Diabetes mellitus 6 3.4
Kidney disease 2 10.0
Neoplasms/cancer 1 0.7
Osteoporosis 1 0.7
Lifestyle risk factors(c)
Overweight/obese 60 1.2
Current daily smoker 50 2.2
Risky/high risk alcohol consumption -
19 2.1
short-term
Risky/high risk alcohol consumption - long-
16 1.1
term

(a) Indigenous age-standardised proportion divided by the non-Indigenous age-standardised proportion.

(b) Rate ratio is not age-standardised for ear/ hearing problems
(c) Persons aged 18 years and over.
Source: ABS data available on request, 2004-05 National Aboriginal and Torres Strait Islander Health Survey,
Australia.

Lifestyle risk factors

Based on self-reported height and weight information collected in the 2004-05 National
Aboriginal and Torres Strait Islander Health Survey (NATSIHS), six in ten Indigenous adults
were overweight (29%) or obese (31%), similar to non-Indigenous adults (rate ratio of 1.2) (table
11.30). The proportion of Indigenous adults who smoked regularly (usually one or more
cigarettes a day) was also high at 50%, and more than twice the rate for non-Indigenous adults.

Alcohol consumption risk levels are based on National Health and Medical Research Council
2001 (NHMRC) guidelines for risk of harm in the short and long-term. In the 2004-05
NATSIHS, around half of all Indigenous adults (49%) reported having consumed alcohol in the
week prior to being surveyed, and 16% reported drinking at long-term risky/high risk levels. In
addition, one in five Indigenous adults (19%) reported drinking at short-term risky/high risk
levels at least once a week in the last 12 months, double the rate reported by non-Indigenous
adults.
BIBLIOGRAPHY

ABS PRODUCTS

Australian Demographic Statistics 2007–08, (3101.0)

Australian Historical Population Statistics 2006, (3105.0.65.001)

Australian Social Trends, 2008, (4102.0)

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Causes of Death, Australia, 2007, (3303.0)

Census of Population and Housing, Australia 2006, (2914.0.55.002)

Children's participation in Cultural and Leisure Activities, Australia, 2006, (4901.0)

Deaths, Australia, 2007, (3302.0)

Disability, Ageing and Carers, Australia 2003: Summary Results, (4430.0)

How Australians Measure Up, 1995, (4359.0)

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Australia, 2001, (2039.0)

Labour Force, Australia, 2006, (2068.0)

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National Health Survey: Summary of Results, Australia, 2004-05, (4364.0)

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National Survey of Mental Health and Wellbeing: Summary of Results, Australia, 2007,
(4326.0)

Private Hospitals, Australia, 2006-07, (4390.0)

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Australian Bureau of Statistics (ABS) and Australian Institute of Health and Welfare (AIHW)
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(ABS cat. no. 4704.0) and AIHW (IHW14)

Australian Health Ministers Communique, Delivering Results, 18 April 2008

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Australia's Health 2008, US 99, AIHW, Canberra

Australian Hospital Statistics 2007-08, AIHW, HSE 71

Cancer age-specific data cube, last viewed October 2009,<http://www.aihw.gov.au>

'Cancer survival and prevalence in Australia:cancers diagnosed from 1992 to 2004', AIHW
CAN 38, <http://www.aihw.gov.au/publications/can/cspia-cdf-82-04/cspia-cdf-82-04.pdf>

GRIM (General Record of Incidence of Mortality) Books, last viewed October 2009,
<http://www.aihw.gov.au>

Health Expenditure in Australia 2007-08, AIHW HWE 46

Making Progress 2008, AIHW PHE 104

<http://www.aihw.gov.au/publications/index.cfm/title/10653>

Mental Health Services in Australia 2006-07, AIHW 74.

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Blakely, T, Hales, S & Woodward, A 2004, Poverty: Assessing the Distribution of Health
Risks by Socioeconomic Position at National and Local Levels, WHO Environmental Burden
of Disease Series, no. 10, WHO, Geneva

Commonwealth Department of Health and Ageing:

'Australia's Physical Activity Recommendations for Children', last viewed May 2009,
<http://www.health.gov.au/internet/main/publishing.nsf/Content/health-pubhlth-strateg-active-
recommend.htm>

Clinical Practice Guidelines for the Management of Overweight and Obesity in Children
and Adolescents 2003, last viewed May 2009
<http://www.health.gov.au/internet/main/publishing.nsf/Content/obesityguidelines-guidelines-
children.htm>

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viewed October 2009, <http://www9.health.gov.au/cda/source/Rpt_2_sel.cfm>

Early Childhood Nutrition, last viewed June 2009,

<http://www.health.gov.au/internet/main/publishing.nsf/Content/phd-early-childhood-nutrition-
index>

Council of Australian Governments (2006), COAG, 'National Action Plan on Mental Health
2006-2011'

King, T et al. 2005, 'Weight and place: a multilevel cross sectional survey of area-level
disadvantage and overweight and obesity in Australia', International Journal of Obesity,
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<http://www.medicareaustralia.gov.au/provider/patients/acir/statistics.jsp#N1002D>

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2009,<https://www.medicareaustralia.gov.au/statistics/mbs_item.shtml>

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2009, Canberra, <https://www.medicare.gov.au/statistics/pbs_group.shtml>

National Centre in HIV Epidemiology and Clinical Research, 'HIV/Aids, Viral Hepatitis and
Sexually Transmissible Infections in Australia' Annual Surveillance Report 2009,The
University of New South Wales, Sydney, NSW, Australian Institute of Health and Welfare,
Canberra, ACT, 2009

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<http://www.nhmrc.gov.au/publications/synopses/dietsyn.htm>

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Employment, Labour and Social Affairs, OECD Health Data 2009,

<http://www.oecd.org/document/16/0,3343,en_2649_34631_2085200_1_1_1_1,00.html>

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<http://www.phiac.gov.au/for-industry/industry-statistics/statistical trends>

Senate Community Affairs Committee (2008), Towards recovery: mental health services in
Australia

Smart, D and Vassallo, S 2005, 'In the driver's seat: understanding young adult's driving
behaviour', Australian Institute of Family Studies, Melbourne, <http://www.aifs.gov.au>

Turrell, G & Mathers, C 2000, 'Socio--economic status and health in Australia', Medical
Journal of Australia, vol. 172

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'International Classification of Diseases', <http://www.who.int/classifications/acd/en/>

'Global Strategy on Diet, Physical Activity and Health, Overweight and Obesity, last viewed
July 2009, <http://www.apps.who.int>

WHOSIS, WHO Statistical Information System, last viewed November 2009,

<http://apps.who.int/whosis/data>
Back to top
WEBSITES

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<http://www.medicareaustralia.gov.au>

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<http://www.aihw.gov.au>

Department of Health and Ageing (DoHA), last viewed November 2009,

<http://www.health.gov.au>

Medicare Australia last viewed October 2009, < http://www.medicareaustralia.gov.au>

National Centre in HIV Epidemiology and Clinical Research, University of NSW,

<http://www.nchecr.unsw.edu.au>

National Health and Medical Research Council, last viewed November

2009,<http://www.nhmrc.gov.au>

Organisation for Economic Co-operation and Development (OECD), last viewed November
2009, <http://www.oecd.org>

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<http://www.phiac.gov.au>

World Health Organization (WHO), last viewed November 2009, <http://www.who.int>

Education and training

INTRODUCTION
Educational activity can occur within a variety of learning environments, some more formal than
others. Typically, formal learning occurs within the distinct sectors of preschool, school,
vocational education and training, and higher education. Structured learning within formal
institutions is characterised by delivery that is systemic, planned and organised ahead of time,
and which usually involves some evaluation of achievement. Many other kinds of structured
learning can take place outside formal institutions and can continue after a person has completed
schooling or gained trade or higher qualifications. For instance, structured learning might be
undertaken as a short teacher-based course in the workplace in order to acquire, develop or
upgrade work-related skills.

Non-formal education is delivered in an unstructured way, and on an ad hoc basis. It does not
necessarily involve any student-teacher relationship or evaluation of achievement. Non-formal
education includes on-the-job training and self-directed learning.

There were 3.7 million students in the 15,000 preschools, primary and secondary schools in
Australia at August 2008. The education industry contributed 4% of Australia's gross domestic
product in 2007-08, and 7.6% of employed persons in August 2009.

Core measures of educational activity in Australia currently focus on participation (the process
of education), attainment (the outputs, such as national testing, qualifications and non-award
courses) and educational resources (the inputs, such as funding and human resources). The
structure of this chapter reflects these core measures. After a brief discussion of government
responsibilities in education, the chapter describes participation in each sector of education, from
preschool through to higher education. It then examines educational participation and attainment,
and concludes with information on sources of educational funding.

The chapter contains two articles - Overseas student enrolments with higher education
providers and Trends in International Mathematics and Science Study.

GOVERNMENT RESPONSIBILITIES IN EDUCATION

State and territory governments' responsibilities in education and training include:

the constitutional responsibility for providing schooling to all school-aged children;
the major financial responsibility for government schools and contributing
supplementary funds to non-government schools; and regulating school policies and
programs. They determine curricula, course accreditation, student assessment and
awards for both government and non-government schools. They are also
responsible for the administration and major funding of vocational education and
training (VET), and for legislation relating to the establishment and accreditation of
higher education courses.

The Australian Government has special responsibilities in education and training for
Aboriginal and Torres Strait Islander peoples, migrants, international partnerships in
education, and financial assistance for students. It is principally responsible for
funding non-government schools and higher education institutions, and provides
supplementary funding for government schools and VET.

Governments' responsibilities for education and training extend beyond funding and
administration. They have broader responsibility to plan for future demand both for
education resources and for particular skills in the Australian workforce.
Governments are also responsible for monitoring the performance of education
services, and evaluating the outcomes of education.

EDUCATION REFORM AGENDA

In 2008, the Council of Australian Governments (COAG) committed to a comprehensive

education reform agenda for Australia. This reform impacts on education policy at all levels.

Inter-governmental agreements (IGAs) address key areas for economic and social growth. Three
are of specific relevance to the Education and Training sector:
 National Education Agreement (NEA)
 National Agreement for Skills and Workforce Development (NASWD)
 National Indigenous Reform Agreement (NIRA).

There are high level performance indicators and targets in each national agreement. The COAG
Reform Council (CRC) is charged with reporting on these indicators to inform the general public
about government performance in making progress towards the targets. The CRC published its
first reports on the NEA and NASWD in November 2009.

A number of national partnership agreements have also been developed to fund specific projects
and deliver on nationally-significant reforms. Agreements relating to the education and training
sector include: Building the Education Revolution; Literacy and Numeracy; Improving Teacher
Quality; TAFE Fee Waiver for Child-Care Places; Low Socio-Economic Status School
Communities; Early Childhood Education; and Youth Attainment and Transitions. These
agreements will require similar measurement of targets and progress towards meeting them. All
these COAG agreements can be found on the COAG website <http://www.coag.gov.au>.

EARLY CHILDHOOD EDUCATION

Early childhood education in Australia encompasses early learning programs in preschools and
other organisations, and the skills development of children from birth onwards. A number of
studies at the domestic and international level have noted that young children who do not have
appropriate learning opportunities may suffer from adverse outcomes later in life, although
difficulties may be overcome by quality interventions which support families and individuals.
Research also indicates that a child's brain undergoes the most rapid development in the first five
years of life, reaching the peak of their learning potential up to the age of 8 years. This has
prompted educational providers to introduce formal programs to maximise the uptake of basic
skills in the early years. Such programs, aimed at raising children's readiness for school, are
generally available in preschool and in a range of child care settings.

Of the 1,028,000 children aged 4-8 years who attended school in June 2008, 82% usually
attended a preschool or a preschool program in long day care in the year prior to attending
school. Of those children who usually attended, parents reported that 94% made a good
adjustment to school compared to 88% of children that did not attend either preschool or a
preschool program in long day care in the year prior to attending school. See Childhood
Education and Care, Australia, June 2008 (4402.0) on the ABS website.

Preschool students

Preschool generally refers to structured educational programs that are provided for children in
the year prior to commencing full-time primary education; it excludes preschool programs that
are run in long day care centres . The responsibility for providing preschool education rests with
individual states and territories. Preschools may be operated by government, community
organisations or the private sector.

Similar educational programs or curricula may be provided in long day child care centres and
other settings. Preschool programs in long day care centres are structured and planned as part of
an early childhood education program with specific educational aims and objectives. The
program aims to meet the educational and developmental needs of children who are at least 3
years of age, although some younger children may be involved in such programs.

According to the 2008 ABS Childhood Education and Care Survey, 257,200 children attended
preschool in the reference week, with 4 year olds representing 61% of this total. The 4 year olds
attending preschool in the reference week amounted to 60% of all 4 years olds surveyed. In
contrast, only 11% of 5 year olds surveyed attended preschool in the reference week, which
reflects the fact that most 5 year olds have entered primary school by that age.

Graph 12.1 shows that the proportion of 4 year olds attending preschool has fluctuated between
1993 and 2008, while the proportion attending long day care centres has increased steadily (from
12% in 1993 to 30% in 2008).
12.1 PARTICIPATION OF FOUR YEAR OLDS(a), June

The National Preschool Census (NPC), conducted annually for the Department of Education,
Employment and Workplace Relations, collects information about the number of children
attending preschools, which are registered providers and have a preschool educational program.
The NPC found that there were 215,500 children enrolled in preschool in August 2008, an
increase of 1% from the previous year's enrolments. Government preschools held 24% of
enrolled children.
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Indigenous preschool students

The NPC provides a basis for the allocation of Australian Government funding to preschools in
which Indigenous students are enrolled. The 2008 NPC reported 10,014 Indigenous children
enrolled in government and non-government preschools, representing 5% of total preschool
enrolments. Of these Indigenous enrolments, 28% were in New South Wales. Between 2007 and
2008, the number of Indigenous children enrolled in preschools increased by 4%, and the number
of non-Indigenous enrolments increased by 1% (table 12.2). Indigenous enrolments were
reported by 1,819 preschools or 39% of preschools. Fifty-three percent of Indigenous
preschoolers were enrolled in government preschools.
12.2 INDIGENOUS PRESCHOOL ENROLMENTS
2003 2004 2005 2006 2007 2008

New South Wales 2 694 2 672 2 773 2 763 2 679 2 780

Victoria 559 535 523 597 589 677
Queensland(a) 896 862 738 810 1 301 1 347
South Australia 1 114 1 148 1 047 1 066 1 097 1 297
Western Australia 1 834 1 858 1 905 2 127 1 981 2 042
Tasmania 331 341 356 322 358 324
Northern Territory 1 535 1 544 1 543 1 477 1 519 1 399
Australian Capital Territory 88 95 134 113 103 148
Total Indigenous
9 051 9 055 9 019 9 275 9 627 10 014
enrolments
Total non-Indigenous
202 576 205 004 212 653 203 723 202 775 205 512
enrolments

(a) Excludes children who were in Queensland's part-time Pre Year 1 program that was delivered by schools before
2007. This program was expanded to a full-time program in 2007 and is now considered a primary school program.
Source: Department of Education, Employment and Workplace Relations (DEEWR), 'National Preschool Census'.

PRIMARY AND SECONDARY EDUCATION

School attendance

Following preschool, primary schooling in most states and territories begins with a preparatory
or kindergarten year (pre-year 1), followed by six or seven year/grade levels. Secondary
schooling involves a further five to six years to complete a full course of school study. Although
primary and secondary schools are mostly separate institutions there is a growing trend,
particularly in independent schools, towards combined primary and secondary schools. In 2008
almost 14% of schools (excluding special schools) were combined, compared with 10% in 1998.

School attendance has traditionally been compulsory between the ages of 5 or 6 to 15 or 16,
depending upon the state or territory. Recent policy has focused on either extending those
compulsory years of schooling (to 17), or ensuring that an alternative study arrangement and/or
employment is being undertaken.
While the vast majority of primary school children are studying full-time, a sizable proportion of
secondary school students study on a part-time basis. More than 20% of Year 12 students in
Tasmania, and almost 17% in South Australia, were defined as part-time in 2008. Similarly,
while most school staff are full-time, almost 30% work part-time.

School organisation and operation

In Australia, schools are classified as either government or non-government. Government

schools are those which are the direct responsibility of the Director-General (or equivalent) of
education within each state or territory and receive their basic funding from the relevant state or
territory government. The term 'non-government school', refers to all other institutions delivering
school education. They operate under conditions determined by state and territory government
regulatory authorities and receive Australian and state or territory government funding.

Although each state and territory has its own approach to schooling, ongoing negotiations
between the state and territory jurisdictions and the Australian Government are aimed at
standardising core education curriculum modules (such as mathematics, science and English) and
the age of commencement of students.

To address these issues, in May 2009, the Australian Curriculum, Assessment and Reporting
Authority (ACARA) was established. ACARA has governance over a number of responsibilities
in the schooling sector, including:
 a national schooling curriculum, in specific areas, from kindergarten to year 12
 a national assessment program, which is aligned to the national curriculum, and measures
students' progress
 a national data collection and reporting program that supports analysis, evaluation,
research and resource allocation; and accountability and reporting on individual schools;
and broader national achievement.

Schools in Australia have considerable autonomy. Most states and territories have regional
administrations which are responsible for matters such as planning school buildings and
deploying staff, while a central curriculum unit provides general guidelines on course planning.
Individual schools typically determine teaching and learning approaches within given guidelines,
and offer various course options. Assessment of students varies across states and territories,
some having a completely school-based assessment system, while others combine school-based
assessment with external examinations.

Primary schooling

The main emphasis in early primary school is on the development of basic language and literacy
skills, simple arithmetic, moral values and social education, health training and personal
development, and some creative activities.

In upper primary school, the focus is on developing the skills learned in earlier years. English,
mathematics, social studies, science, music appreciation, art and craft, physical education and
health are studied. There are also optional subjects such as religious instruction, foreign and
community languages, and specific music courses.
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Secondary schooling

In some jurisdictions the first one or two years of secondary school consist of a general program
which is undertaken by all students, although there may be some electives. In the middle
secondary years, a basic core of subjects is retained, with students able to select additional
optional subjects. In other jurisdictions, students select options from the beginning of secondary
school.

In senior secondary schooling (Years 11 and 12) a wider range of subject options is available in
the larger schools. Individual schools increasingly develop courses suited to the needs and
interests of their students, subject to accreditation and moderation procedures. Vocational
programs are included in the senior secondary curriculum in all jurisdictions. School students
may obtain certificates and undertake apprenticeships in the VET sector as part of their senior
school study, and may undertake some parts of these programs in the workplace.

Students reaching the minimum school leaving age may leave school and seek employment, or
enrol in a vocational course with a VET institution, such as a technical and further education
(TAFE) college or a private business college. For many VET courses, completion of Year 10 is a
minimum entry requirement. For those continuing to the end of secondary school, opportunities
for further study are available at higher education institutions, VET institutions and other
educational institutions. For students continuing to higher education, eligibility to undertake
university courses is almost always based on satisfactory completion of a senior secondary
school certificate (Year 12 qualification).

Other schooling arrangements

Children may be exempted from attending a school if they live too far away from an appropriate
institution or have a disability. These children receive tuition through various means, including
distance education, School of the Air, and use of computer, facsimile, and satellite technologies.

Children of some Indigenous groups in remote areas of the Northern Territory, who live in small
decentralised communities, receive schooling mainly in Homeland Learning Centres or Catholic
Indigenous schools. They are taught by Indigenous teaching assistants supported by visiting
teachers from established schools.

Boarding facilities are available at some non-government schools, mainly in cities and some
larger towns. A small number of government schools, in particular those catering for groups such
as Indigenous people, have residential hostels located close by.

Children may be home-schooled, if they have met the criteria set down by the relevant state or
territory Department of Education. They must be enrolled as a student at a day school and be
available when required for assessment against the regular school year curriculum.
Special instruction for physically and/or mentally disabled or impaired students or those with
social problems is provided as 'special education' by government and non-government
authorities. It may be provided in special classes or units in regular schools, by withdrawal from
regular classes for periods of intensive assistance by specialist staff, or in specialist schools.
Parents in all states and territories have also formed voluntary organisations to establish
additional schools, which cater for their children's special needs. The Australian Government
provides funds to states and territories, non-government authorities and community groups to
assist in the provision of services, maintenance and upgrading of special education facilities.

School students and teaching staff

There were 9,562 schools operating in Australia at the time of the August 2008 schools census,
of which 71% were government schools. In this chapter, student enrolments are generally
reported as absolute numbers. Staff however, are generally reported as 'full-time equivalent'
(FTE), which is calculated by adding the full-time equivalent of part-time staff to the respective
full-time count. There were 161,351 FTE teaching staff employed in government schools (65%
of all teachers) and a further 85,755 FTE employed in non-government schools (table 12.3).
12.3 SCHOOLS, STUDENTS AND TEACHING STAFF - August 2008
NON-GOVERNMENT SCHOOLS

Government
Catholic Independent Total All schools
schools

Schools(a) no. 6 833 1 705 1 024 2 729 9 562

Students
Males '000 1 173.1 349.0 237.2 586.2 1 759.3
Females '000 1 111.7 348.4 237.7 586.1 1 697.7
Persons '000 2 284.8 697.4 474.9 1 172.2 3 457.0
Teaching staff
(FTE)(b)
Males '000 47.7 14.3 14.5 28.8 76.6
Females '000 113.6 32.1 24.9 56.9 170.5
Persons '000 161.4 46.4 39.4 85.8 247.1

(a) Includes special schools.

(b) Full-time teaching staff plus full-time equivalent of part-time teaching staff.
Source: ABS data available on request, 2008 National Schools Statistics Collection.

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The 3.5 million students attending primary and secondary schools in August 2008 comprised 2.3
million (66%) in government schools, and 1.2 million (34%) in non-government schools.
Overall, while student enrolments at all schools increased by 7.2% (232,900) between 1998 and
2008, this growth was not uniform across government and non-government schools. Non-
government schools experienced a 22% growth (211,600) in enrolments over this period. In
contrast enrolments in government schools increased slightly, by 0.9% (21,400), over the same
period (graph 12.4).
 12.4 STUDENTS, By category of school - August 2008

Table 12.5 shows the number of school students in 2008, at each year level and their distribution
by category of school. Among all primary school students, 70% attended government schools
and 30% attended non-government schools. At secondary level, 61% attended government
schools and 39% attended non-government schools. A fifth of all school students attended
Catholic schools (19% of primary school students and 20% of secondary school students).
12.5 STUDENTS, By category of school and year/level - August 2008
NON-GOVERNMENT SCHOOLS ALL SCHOOLS

Government
Catholic Independent Total Males Females Persons
schools
% % % % % % '000

Primary
Pre-year 1 70.1 19.6 10.4 29.9 51.4 48.6 270.3
Year 1 69.2 20.1 10.7 30.8 51.5 48.5 246.4
Year 2 69.9 19.8 10.3 30.1 51.1 48.9 266.6
Year 3 69.9 19.6 10.5 30.1 51.0 49.0 269.9
Year 4 69.8 19.5 10.7 30.2 51.1 48.9 268.8
Year 5 69.3 19.2 11.4 30.7 51.2 48.8 269.6
Year 6 68.5 19.3 12.1 31.5 51.1 48.9 260.4
Year 7(a) 69.2 16.4 14.3 30.8 51.3 48.7 106.0
Ungraded 91.6 1.7 6.7 8.4 69.5 30.5 19.7
Total 69.7 19.2 11.0 30.3 51.4 48.6 1 977.8
Secondary
Year 7(a) 60.0 24.0 16.0 40.0 51.0 49.0 167.3
Year 8 60.9 21.9 17.1 39.1 51.1 48.9 277.7
Year 9 61.6 21.6 16.8 38.4 51.0 49.0 276.8
Year 10 61.5 21.2 17.3 38.5 50.8 49.2 274.0
Year 11 61.0 20.4 18.5 39.0 49.0 51.0 247.4
Year 12 58.6 21.9 19.5 41.4 47.0 53.0 210.4
Ungraded 88.4 4.2 7.4 11.6 59.7 40.3 25.5
Total 61.2 21.4 17.4 38.8 50.2 49.8 1 479.2
All students 66.1 20.2 13.7 33.9 50.9 49.1 3 457.0

(a) Year 7 is classified as primary school in Qld, SA and WA, and secondary school in other states and territories.
The NT commenced classifying Year 7 as secondary school education for the first time in 2008.
Source: ABS data available on request, 2008 National Schools Statistics Collection.

Graph 12.6 shows student/teacher ratios by category of school by level, in 1998 and 2008. These
ratios represent the FTE number of school students divided by the FTE number of teaching staff.
Over the decade 1998 to 2008, student/teacher ratios fell from 15.4 to 13.9 students, across all
schools in Australia. This decline was more marked in primary schools where the student/teacher
ratio declined by 12% from 17.7 to 15.6 students per teacher over this period.

In 1998, student/teacher ratios were similar for government and non-government schools at 15.5
and 15.2 respectively. By 2008 these ratios had decreased to 14.1 for government schools, and to
13.7 in non-government schools.
12.6 STUDENTS TO TEACHING STAFF(a), By category of school

Apparent retention rates

Apparent retention rates are regarded as important measures of the performance of education
systems and related government policies. The apparent retention rate is an estimate of the
proportion of students of a given cohort who continued to a particular level or year of school
education. In 2008 the apparent retention rate of full-time secondary school students from Year
7/8 to Year 12 was 75%. As in previous years, the 2008 apparent retention rate to Year 12 for
full-time female students was higher (81%) than the corresponding rate for full-time male
students (69%).

Consistent with apparent retention from the commencement of secondary schooling, apparent
retention from Year 10 to Year 12 also remains higher for females than males. In 2008, the
apparent retention rate from Year 10 to Year 12 full-time students, was 81% for females
compared with 70% for males (graph 12.7).
 12.7 APPARENT RETENTION RATES(a), Year 10 to Year 12

The apparent retention rate in 2008 of full-time students from Year 10 to Year 12 was 1.4
percentage points higher for males, and 1.6 percentage points higher for females, than in 1998.
While both male and female retention has risen over this time, and peaked between the years
2002 and 2004, the difference between male and female retention remains similar, a gap of 10.5
percentage points in 1998 and 10.7 percentage points in 2008 (graph 12.7).
12.8 APPARENT RETENTION RATES(a)(b), Year 10 to Year 12
 12.9 APPARENT RETENTION RATES(a)(b), Year 7/8 to 12

Indigenous retention rates generally increased over the years 1998 to 2008, but have shown
stronger growth since 2005. The Year 7/8 to Year 12 series and the Year 10 to Year 12 series
were at an historical high in 2008, for both male and female students.

Care should be taken in interpreting apparent retention rates as their calculation does not take
into account a range of factors such as overseas migration, repeating students, mature-age
students, the change in part-time students and other net changes to the school population.

Indigenous school students

The age profile of the Indigenous population differs markedly from the non-Indigenous
population. At 30 June 2006, 38% of the Indigenous population was aged 0-14 years, compared
with 19% of non-Indigenous people.
12.10 INDIGENOUS SCHOOL STUDENTS(a), By level of school education - August
Year NSW Vic. Qld SA WA Tas. NT ACT Aust.

PRIMARY

1998 19 185 3 406 19 231 4 509 11 697 2 422 9 614 475 70 539
2008 26 999 5 384 29 108 5 809 15 221 2 807 9 989 724 96 041

SECONDARY

1998 9 898 1 749 8 659 1 518 4 464 1 686 3 303 350 31 627
2008 17 606 3 457 15 551 2 825 7 622 2 210 5 904 453 55 628

TOTAL

1998 29 083 5 155 27 890 6 027 16 161 4 108 12 917 825 102 166
2008 44 605 8 841 44 659 8 634 22 843 5 017 15 893 1 177 151 669

(a) Full-time students.

Source: ABS data available on request, National Schools Statistics Collection.

In August 2008, there were 96,000 Indigenous students attending primary schools (70,500 in
1998) and a further 55,600 attending secondary schools (31,600 in 1998) (table 12.10).

Table 12.10 shows increased Indigenous full-time student enrolments in every state and territory
between 1998 and 2008, for both primary and secondary schooling. Overall, Indigenous
enrolments increased across Australia by almost 50% over this period. A greater proportionate
increase in secondary school enrolments (76%) than primary school enrolments (36%), is largely
a reflection of the increased retention of Indigenous students in secondary schooling over that
period. Also, in 2008, the Northern Territory government changed its grade structure to identify
Year 7 students as being in secondary education, removing about 3,000 students from the
primary student total and reclassifying them as secondary students for the first time.

In 1998, numbers of Indigenous students declined steadily between Years 1 to 8 (graph 12.11).
In 2008 the decline in student numbers between Year 1 through to Year 10 is much less marked,
which significantly boosts the potential for Year 12 completion.
12.11 Indigenous school students(a), By grade - August

VOCATIONAL EDUCATION AND TRAINING (VET)

There are almost 5,000 registered training organisations in Australia. While there are around
3,700 private training providers of VET, most VET students are engaged with publicly-funded
training providers. These are predominantly government administered TAFE colleges or
institutes. Other publicly-funded VET can be provided by higher education institutions,
secondary schools and colleges, agricultural and technical colleges, and adult and community
organisations. Private providers of VET can include private training organisations, business
colleges, industry associations, adult and community organisations and employers.
VET providers offer a wide range of subjects and programs including traditional trades,
advanced technical training, para-professional and professional studies as well as basic
employment and educational preparation. While formal VET study provides skills and nationally
recognised qualifications for employment, students may complete only one or two subjects to
gain specific skills, without completing a full qualification, if that is their choice.

Students and courses

Overall, the number of students in publicly-funded VET in 2008 declined by 1.5% from 2000.
Over this period, male student numbers increased by 2.6% while female student numbers
decreased by 3.5%. The number of publicly funded VET students increased by 2% between 2007
and 2008 (graph 12.12).
12.12 VET STUDENTS(a)

During 2008, there were 1.7 million students enrolled in publicly-funded VET courses with 52%
being males (table 12.13). Enrolments by persons aged 19 years or younger increased by 3%,
between 2007 and 2008. All age groups showed an increase in enrolments from 2007 to 2008 for
both sexes with the exception of females in the 40-49 age group. In 2008, 58% of male students
and 48% of female students were under 30 years of age.
12.13 VET STUDENTS(a), Vocational and preparatory courses(a)
2007 2008

Males Females Persons(b) Males Females Persons(b)

Age group
'000 '000 '000 '000 '000 '000
(years)

19 years and
247.6 196.3 444.2 254.9 201.6 456.7
under
20 to 24 years 163.4 112.0 275.6 167.1 112.1 279.3
25 to 29 years 90.6 72.7 163.5 94.7 75.8 170.7
30 to 39 years 147.1 140.9 288.4 149.7 141.0 291.0
40 to 49 years 113.0 144.5 257.9 113.8 144.2 258.3
50 to 59 years 68.8 85.0 153.9 69.7 87.5 157.4
60 years and 28.1 31.1 59.4 29.6 34.0 63.7
over
Not stated 9.3 11.7 22.1 8.1 10.5 19.4
Total students 868.0 794.2 1 665.0 887.5 806.7 1 696.4

(a) Includes all VET delivery by TAFE and other government providers, multi-sector higher education institutions,
registered community providers and publicly funded delivery by private providers. Fee-for-service VET delivery by
private providers has been excluded. School students undertaking VET in schools have also been excluded. A
student is an individual who was enrolled in a subject or completed a qualification at any time in 2008.
(b) Includes 'sex not stated'.
Source: National Centre for Vocational Education Research, data available on request, National VET Provider
Collection.
Back to top

VET courses are classified according to specific fields of education. Table 12.14 shows the
number of course enrolments in 2008 in 11 fields of education and for mixed field programs.
Since students may be enrolled in more than one VET course, the number of course enrolments
is greater than the total number of students. In 2008, there were 2.1 million course enrolments
taken up by 1.7 million students.

Some 21% of enrolments in VET courses in 2008 were in the Management and commerce field,
while 17% were in each of Engineering and related technologies, and mixed field programs. A
further 11% of enrolments were in Food, hospitality and personal services.

Male enrolments were most dominant in the education fields of Architecture and building (93%);
Engineering and related technologies (89%); Agriculture, environmental and related studies
(75%); and Information technology (71%). In contrast, females were in the majority in the fields
of Society and culture (74%); Management and commerce (63%); Food, hospitality and personal
services (62%); Creative arts (60%); Health (59%); Education (59%); and Natural and physical
sciences (58%).
12.14 VET COURSE ENROLMENTS(a), Vocational and preparatory courses - 2008
Males Females Persons(b)
Field of education '000 '000 '000

Natural and physical sciences 3.1 4.3 7.4

Information technology 29.9 12.2 42.0
Engineering and related technologies 305.1 35.7 340.9
Architecture and building 131.8 9.8 141.7
Agriculture, environmental and
63.1 20.5 83.7
related studies
Health 43.1 61.3 104.4
Education 24.1 35.0 59.2
Management and commerce 154.4 266.7 421.4
Society and culture 55.0 153.8 209.0
Creative arts 20.8 31.3 52.1
Food, hospitality and personal
84.2 135.1 219.4
services
Mixed field programs 158.9 186.7 346.0
Total enrolments(a) 1 073.6 952.1 2 027.3

(a) Includes all VET delivery by TAFE and other government providers, multi-sector higher education institutions,
registered community providers, and publicly-funded delivery by private providers. Fee-for-service VET delivery by
private providers has been excluded. School students undertaking VET in schools have also been Excluded.
(b) Includes 'sex not stated'.
Source: National Centre for Vocational Education Research, data available on request, VET Provider Collection.

Apprenticeships and traineeships

Of the 426,700 apprentices and trainees in training at 31 March 2009, about two-thirds were
males (66%). Some 47% of all apprentices and trainees were in the Technicians and trades
workers occupational group. Within this occupation group, Automotive and engineering trades
workers represented 28%, followed by Construction (27%) and the Electrotechnology and
telecommunications (17%) sub-groups. Females in these three sub-groups represented only 2%
of all female apprentices and trainees in 2009 (table 12.15).

Most of the Technicians and trades apprentices and trainees in 2009 were male (88%).
Construction trades workers notably comprised 99% males. In contrast to Technicians and trades
workers, the proportion of males among the 225,700 non-trades apprentices and trainees was less
than that of females (47% males and 53% females).

The number of apprentices and trainees reduced slightly from March 2008 (427,000) to March
2009 (426,700). Over the same period, apprentices and trainees in the non-trades groups of
Managers and Professionals increased by 26% and 16% respectively.
Back to top

12.15 APPRENTICES AND TRAINEES, In-training - 31 March 2009

Males Females Persons
Occupation(a) '000 '000 '000

Managers 2.3 5.4 7.7

Professionals 6.3 2.5 8.8
Technicians and Trades Workers
Engineering, ICT and Science Technicians 3.8 1.1 4.8
Automotive and Engineering Trades Workers 54.9 1.1 56.0
Construction Trades Workers 53.7 0.6 54.3
Electrotechnology and Telecommunications Trades Workers 34.4 0.7 35.0
Food Trades Workers 14.1 5.0 19.1
Skilled Animal and Horticultural Workers 5.8 2.0 7.8
Other Technicians and Trades Workers 9.4 14.5 23.9
Total Trades Workers 176.1 24.9 201.0
Community and Personal Service Workers 14.0 34.4 48.3
Clerical and Administrative Workers 22.4 36.6 59.1
Sales Workers 16.6 28.4 45.0
Machinery Operators and Drivers 29.5 4.3 33.8
Labourers 15.6 7.4 23.0
Total 282.8 143.9 426.7

(a) Classified according to the ABS Australian and New Zealand Standard Classification of Occupations
(ANZSCO), First Edition, 2006 .
Source: National Centre for Vocational Education Research, National Apprentice and Trainee collection.
Staff

Table 12.16 provides estimates of the number of teachers working in TAFE and other VET
institutes in 2008-09. Of all VET teachers 61% were employed full time. The majority of full-
time VET teachers were male (69%). In contrast, 56% of part-time VET teachers were female.
12.16 VET TEACHING STAFF(a)(b) - 2008-09
Full-time staff(b) Part-time staff All teaching staff
'000 '000 '000

Males 16.8 6.5 23.3

Females 7.9 9.7 17.5
Persons 24.7 16.2 40.8

(a) Annual average of quarterly data.

(b) Refers to persons working 35 hours or more in the survey week.
Source: ABS Labour Force, Australia, Detailed, Quarterly, Aug 2009, (6291.0.55.003).

Training courses

According to the 2005 ABS Survey of Education and Training, 5.3 million people aged 15-69
years (54% of whom were male), completed one or more work-related training courses in the
previous 12 months. Of the 11.2 million work-related training courses completed, 30% were in
the Management and professional field. Other commonly reported fields of training were Health
and safety (21%), and Technical and para-professional (14%). Graph 12.17 shows the fields of
work-related training courses completed by males and females in 2005.
Back to top

12.17 Work-related training courses completed(a), Field of training - 2005

HIGHER EDUCATION

Public and private providers of higher education that receive funding from the Australian
Government include both self-accrediting and non-self-accrediting institutions. Self-accrediting
providers, like universities are generally established under state and territory legislation, are
autonomous bodies, and operate in accordance with the requirements for Australian Government
funding.

Non-self-accrediting higher education providers are accredited by state and territory authorities.
They are mainly private providers of varying sizes, and include theological colleges and other
providers that offer courses in areas such as business, information technology, natural therapies,
hospitality, health, law and accounting.

Higher education providers offer a range of undergraduate and post-graduate courses including
traditional academic areas of learning and research, as well as more practical courses with a
vocational orientation. Courses may vary in form, entry requirements, duration and method of
assessment. For instance, courses can be full time or part time, delivered on-campus, by distance
education, or a mix of these modes. In addition, some institutions offer courses which associate
full-time study with periods of employment. Courses cover many disciplines such as the
humanities, social sciences, education, environmental education, science, mathematics and
computing, visual/performing arts, engineering and processing, health sciences, business,
economics, law and agriculture.

Students and courses

In 2008, there were 1.1 million students enrolled in higher education courses, of whom 63%
were aged less than 25 years and 55% were female (graph 12.18 and table 12.19).
12.18 HIGHER EDUCATION STUDENTS - 2008

Table 12.19 shows a 4% increase in the number of higher education students from 2007 to 2008.
Male student numbers increased by 3% (13,800 students), and females by 4% (22,449 students),
between the two years. The number of students choosing multi-modal tuition, that is a mixture of
face-to-face and external study, increased by 7% (4,899 students). Internal (on-campus) students
increased by 4% (29,327 students). There was a 5% increase (an addition of 18,700) in full-time
female students overall.
12.19 HIGHER EDUCATION STUDENTS, By mode and type of enrolment(a)
2007 2008

Males Females Persons Males Females Persons

Internal
Full time 291.2 332.1 623.3 304.2 347.0 651.2
Part time 95.0 109.9 204.9 94.9 111.4 206.3
Total 386.2 442.0 828.2 399.2 458.4 857.5
External
Full time 9.3 14.5 23.8 9.2 15.6 24.8
Part time 43.0 63.5 106.5 42.3 65.2 107.5
Total 52.3 78.0 130.3 51.5 80.8 132.3
Multi-modal
Full time 18.7 34.3 52.9 20.2 37.0 57.2
Part time 6.3 12.1 18.5 6.4 12.7 19.1
Total 25.0 46.4 71.4 26.6 49.7 76.3
Total
Full time 319.1 380.9 700.0 333.6 399.6 733.2
Part time 144.3 185.5 329.8 143.6 189.3 332.9
Total 463.5 566.4 1 029.8 477.3 588.8 1 066.1

(a) This relates to the delivery of education to the student. 'Internal' is where the delivery of education is done
entirely within the institution, 'external' refers to delivery of course material to students off-campus, and 'multi-
modal' is where at least one, but not all units, are provided at the institution.
Source: Department of Education, Employment and Workplace Relations (DEEWR), data available on request,
'Students: Selected Higher Education Statistics'.
Back to top

The basic undergraduate course at most institutions is a bachelor degree of three or four years
duration. In 2008, 67% of higher education students were enrolled in bachelor degree courses.
Most institutions also offer postgraduate level study ranging from one to two years of full-time
study for a master's degree and three to five years for a doctoral degree. In 2008, 27% of higher
education students were enrolled in postgraduate courses.

In 2008, higher education enrolments were most commonly in the fields of: Management and
commerce; Society and culture; Health; and Education (table 12.20). These four fields accounted
for 74% of all higher education course enrolments.
12.20 HIGHER EDUCATION STUDENTS, By level and field of education - 2008
Level of education of study

Graduate
Advanced
Post-graduate diploma/ Bachelor Other
Field of education diploma/ Total courses
degree Graduate degree education
Diploma
certificate

Natural and
physical % 6.1 3.0 8.6 1.2 0.4 7.3
sciences
Information
% 6.5 2.5 4.4 5.4 0.2 4.6
technology
Engineering
and related % 6.2 3.4 7.8 5.2 1.0 6.9
technologies
Architecture
% 2.1 1.6 2.6 0.8 - 2.3
and building
Agriculture,
environment
% 2.0 1.4 1.5 1.1 0.3 1.5
and related
studies
Health % 9.5 15.1 15.1 3.6 0.6 13.2
Education % 8.9 20.6 9.0 0.8 4.9 9.4
Managemen
t and % 38.2 23.6 28.1 60.4 2.6 29.8
commerce
Society and
% 17.3 25.7 23.0 9.7 10.4 21.3
culture
Creative arts % 3.4 3.4 8.2 9.1 2.6 6.7
Food,
hospitality
% - - - 2.8 - 0.1
and personal
services
Mixed field
% - - - - 12.5 0.4
programs
Non-award % - - - - 64.4 2.1
All
no. 215 692 73 566 716 776 25 393 34 668 1 066 095
students(a)

- nil or rounded to zero (including null cells)

(a) Students undertaking combined courses are counted in each field they are studying. Because of this, the sum of
the field of education components may add to more than 100%.
Source: Department of Education, Employment and Workplace Relations (DEEWR), Selected Higher Education
Statistics Staff 2008.

Staff

Higher education staff may be classified as academic or non-academic. In 2008, there were more
non-academic than academic staff. The most frequent classification of academic staff was at the
lecturer level.

Table 12.21 shows a declining ratio of male to female higher education staff between 2003 and
2008. Males comprised 48% of all staff in 2003, but only 45% in 2008. Males outnumber
females at and above senior lecturer levels of academic staff while females are higher at lecturer
levels and below. In 2008, 58% of all academic staff were male, compared with 61% in 2003.
Back to top

12.21 HIGHER EDUCATION STAFF(a)

MALES FEMALES PERSONS PERSONS
Staff classification % % % 000
2003
Academic staff
Above senior lecturer 80.9 19.1 100 7.8
Senior lecturer 66.3 33.7 100 8.8
Lecturer 53.6 46.4 100 12.3
Below lecturer 46.8 53.2 100 7.0
Total 61.3 38.7 100 35.9
Non-academic staff 37.8 62.2 100 48.6
All staff 47.8 52.2 100 84.4
2008
Academic staff
Above senior lecturer 75.5 24.5 100 10.5
Senior lecturer 60.9 39.1 100 10.2
Lecturer 49.8 50.2 100 14.4
Below lecturer 45.0 55.0 100 8.4
Total 57.7 42.3 100 43.6
Non-academic staff 35.4 64.6 100 54.8
All staff 45.3 54.7 100 98.4

(a) Includes full time and fractional full time staff.

Source: Department of Education, Employment and Workplace Relations (DEEWR), Selected Higher Education
Statistics Staff 2008.

ADULT AND COMMUNITY EDUCATION (ACE)

ACE is the most decentralised of the education sectors. ACE courses range broadly from general
interest, recreational and leisure activities, personal development, social awareness and craft,
through to vocational courses and remedial education.

ACE activity often complements the formal programs and qualification pathways provided by
the school, VET and higher education sectors. While some ACE is provided by these sectors,
many programs are delivered by a variety of community providers.

The 2005 Survey of Education and Training found that 594,800 adults were enrolled for study
that did not lead to a qualification (table 12.25). Females comprised two-thirds (67%) of these
persons and outnumbered males in all fields of study except for Architecture and building (92%
male), and Engineering and related technologies (54% male).

The proportion of females was highest in Education (84% female) and in Food hospitality and
personal services (80% female). Half of all persons enrolled in non-qualification study in 2005
were enrolled in either Creative arts (20% female and 5.6% male) or Society and culture (16%
female and 8.8% male) studies.
12.25 PERSONS ENROLLED IN STUDY NOT LEADING TO QUALIFICATIONS, By
gender and institutions - 2005
Male Female Persons
Institution % % 000

School,uni,tafe,business college 38.9 61.1 103.5

Other training centers(a) 34.8 65.2 361.9
Adult or community education centre 24.9 75.1 129.4
Total 33.4 66.6 594.8

(a) Industrial skills centre, job network, professional industry associations, manufacturers, training organisations.
Source: ABS data available on request, Survey of Education and Training.

PARTICIPATION IN EDUCATION

In May 2009, 2.9 million people aged 15-64 years applied to enrol in a course of study. Of these,
93% gained a place and were enrolled in a course of study (table 12.26).
12.26 PARTICIPATION IN EDUCATION(a) - May 2009
Males Females Persons
'000 '000 '000

Applied to enrol 1 355.8 1 525.6 2 881.4

Studying 1 275.6 1 401.4 2 676.9
Gained placement but deferred study 47.6 82.9 130.5
Unable to gain placement 32.6 41.3 73.9

(a) Persons aged 15-64 years.

Source: ABS data available on request, 2009 Survey of Education and Work.

In the period 2004-09, the demand for enrolment in a course of study increased. For example,
applications from people aged 20-24 years increased by 14% (graph 12.27). The number of 20-
24 year olds studying increased by 15% over the same period and the number of 25-64 year olds
studying increased by 12%.
12.27 DEMAND FOR EDUCATION, by age group

Many young people continue in full-time education immediately after completing compulsory
schooling, either in post-compulsory schooling or in other forms of education, such as VET. In
May 2009, 69% of 15-19 year olds were in full-time education (including 51% still at school).
Some young people return to full-time study following a period of absence after completing
compulsory schooling. In the 20-24 years age cohort, excluding persons still at school, 29% were
undertaking full-time tertiary study and 11% were undertaking part-time tertiary study (table
12.28).

Many people aged 25 years and over return to study, to upgrade their skills or to gain new skills,
often while employed. Some 6% of all persons aged 25-64 years in May 2009, were studying
part-time at a tertiary institution, compared with 3% studying full-time.
12.28 EDUCATION PARTICIPATION RATES - May 2009
Age group (years)

15-19 20-24 25-64

% % %

Attending school 50.9 0.1 -

Attending tertiary(a)
Full time 18.4 29.2 2.5
Part time 7.7 10.7 6.0
Total 26.1 39.9 8.5
Attending 77.0 39.9 8.6
Not attending 23.0 60.1 91.4

- nil or rounded to zero (including null cells)

(a) Educational institutions other than schools.
Source: ABS data available on request, 2009 Survey of Education and Work.
Back to top

Between 2004 and 2009, the enrolment of 20-24 year olds in tertiary study increased by 16%.
The number of full-time participants in this age group increased by 80,600 (22%) compared with
an increase in part-time participation of 2,400 (2%). Over the same period, there was a 10%
growth in the number of 15-19 year old participants. While the number of 25-64 year old
participants increased by 12% overall, full-time participation by this age group increased by
28%, whereas part-time participation increased by 6% (graph 12.29).
12.29 Participation in Tertiary Education, By age group
Education and work

Graph 12.30 shows the labour force status of all students aged 15-64 years in May 2009. Labour
force participation was lowest among those in Year 12 or below (40%) and greatest for those
undertaking a Certificate III or IV (86%). Of the 1.6 million students who were employed in May
2009, some 41% were enrolled for a Bachelor degree or above.
12.30 Participation IN EDUCATION(a), By labour force status - May 2009

Among young people enrolled to study in May 2009, full-time employment was much higher
among those aged 20-24 years than those aged 15-19 (22% compared with 8%). In both age
groups, students who undertook part-time study were more frequently employed full-time than
part-time.

Full-time participation

The 'full-time participation rate' describes the proportion of the population who are fully engaged
in education or work or a combination of both. This includes: full-time education; full-time
work; or both part-time education and part-time work. The full-time participation rate can be
useful to determine the proportion of young people not fully engaged in education and/or work,
and who might be at risk of future marginal participation in the labour market.

In May 2009, 224,200 (16%) young people aged 15-19 years and 336,600 (22%) 20-24 year olds
were not full-time participants. Some 54,000 (4%) 15-19 year olds and 109,000 (7%) 20-24 year
olds were neither enrolled to study nor in the labour force (table 12.31).
12.31 YOUTH PARTICIPATION IN EDUCATION, By labour force status - May 2009
Enrolled in all study(a)

Full-time Part-time Total Not enrolled Total

'000 '000 '000 '000 '000

15-19 YEARS

In the labour force

 Employed
Full-time 8.1 84.6 92.7 119.2 211.8
Part-time 378.5 15.2 393.7 91.9 485.6
Total 386.6 99.7 486.4 211.0 697.4
Unemployed 64.9 7.9 72.8 66.9 139.7
Not in the labour force 550.6 3.5 554.1 54.0 608.1
Total 1 002.1 111.2 1 113.3 331.9 1 445.2

20-24 YEARS

In the labour force

Employed
Full-time 17.4 113.5 130.9 586.6 717.6
Part-time 216.5 34.2 250.7 142.2 392.9
Total 233.9 147.7 381.6 728.9 1 110.5
Unemployed 31.6 7.7 39.3 71.0 110.3
Not in the labour force 176.2 6.6 182.9 109.0 291.8
Total 441.8 162.0 603.8 908.8 1 512.7

(a) All persons participating in education, including those whose study will not lead to a qualification.
Source: ABS data available on request, 2009 Survey of Education and Work.

EDUCATIONAL ATTAINMENT

Formal educational qualifications are the desired outcome of most study at educational
institutions. When issued by an accredited authority they denote a particular level of knowledge,
skills and competencies. This assists the graduates themselves when entering the labour market,
employers in selecting appropriate personnel, and clients in assessing the quality of professional
services. The classification of educational attainment to level assists in measuring the stocks of
available skills in a community, enabling policy makers to monitor the volume of skill levels
compared with skills demand, and to influence the direction of future educational focus.

In May 2009, of the 14.4 million people aged 15-64 years, 8 million (55%) held at least one non-
school qualification. These comprised 3.3 million whose highest non-school qualification was a
Bachelor degree or above. A further 1.3 million reported an Advanced diploma or Diploma, 2.3
million reported a Certificate III or IV and 0.7 million reported a Certificate I or II as their
highest qualification. Over half the population of 15-64 year olds (54%) had completed Year 12,
and around two-thirds (68%) of those with Year 12 held a non-school qualification. Among
those without a non-school qualification, 38% had completed Year 12, 14% had completed Year
11 and a further 30% had completed Year 10 as their highest year of schooling (table 12.32).
12.32 LEVEL OF HIGHEST NON-SCHOOL QUALIFICATION,
By highest year of school completed(a) - May 2009
Highest year of school completed

Year 12 Year 11 Year 10 Year 9 or below Total(b)

Level of education '000 '000 '000 '000 '000

Postgraduate degree 562.9 7.4 na na 582.2

Graduate 317.4 12.7 na na 354.0
diploma/Graduate
certificate
Bachelor degree 2 185.8 51.7 77.3 8.4 2 323.2
Advanced
905.5 131.1 171.9 28.3 1 236.8
diploma/Diploma
Certificate III/IV 876.0 363.9 858.4 187.5 2 286.5
Certificate I/II 247.5 107.8 225.1 60.4 640.9
Certificate not
99.4 29.9 58.8 15.9 204.0
further defined
Level not
80.8 15.6 47.8 13.9 158.2
determined
Total with non-
5 275.4 720.2 1 470.7 318.9 7 785.9
school qualification
Total without non-
2 478.1 896.7 1 901.7 1 080.3 6 377.3
school qualification
Total 7 753.6 1 616.9 3 372.4 1 399.2 14 163.1

na not available
(a) Persons aged 15-64 years.
(b) Includes persons who never attended school.
Source: ABS data available on request, 2009 Survey of Education and Work.

Graph 12.33 shows the proportion of males and females aged 15-64 years and the level of their
highest non-school qualification in 1999, 2004, and 2009. During this period the proportion of
people aged 15-64 years with a Bachelor degree or above increased by 5.1 percentage points for
males and by 8.3 percentage points for females. In 1999, some 16% of both males and females
held a Bachelor degree or above. By 2004, these proportions had increased to 18% and 20%
respectively. The proportions of males and females with a Bachelor degree or above continued to
increase, reaching 21% for males and 25% for females at May 2009. Conversely, the proportion
of males and females without non-school qualifications fell over this period, by 5.8 and 11.8
percentage points, respectively.
12.33 Level of highest non-school qualification(a)

Overall, people 25 years and over are more qualified than those under 25 years, as many young
adults are still involved in study and are yet to obtain a non-school qualification. Around half
(51%) of 15-19 year olds were still attending school in 2009 and 40% of 20-24 year olds were
attending a tertiary education institution. Tables 12.34 and 12.35 show the level and field of the
highest non-school qualification held by people aged 15-64 years in May 2009. Some 62% of all
25-64 year olds held a non-school qualification. This compares with 26% of 15-24 year olds and
the most qualified age group of 25-34 years, of which 69% held a non-school qualification.

In 2009, 35% of people aged 25-34 years had a Bachelor degree or above, compared with 20% in
the 55-64 years age group. There was little difference however for Certificates III or IV held by
these age groups (17% for 25-34 year olds compared with 16% for 55-64 year olds).
12.34 LEVEL OF HIGHEST NON-SCHOOL QUALIFICATION, By age - May 2009
Age group (years)

15 - 24 25-34 35-44 45-54 55-64 Total(a)

Level of
’000 '000 ’000 ’000 ’000 ’000
education

Postgraduate
16.2 172.8 155.8 136.5 101.0 582.2
degree
Graduate
diploma/Graduate 12.4 68.8 103.8 98.6 70.3 354.0
certificate
Bachelor degree 227.6 785.2 569.8 454.2 286.3 2 323.2
Advanced
105.8 302.0 330.7 283.7 214.6 1 236.8
diploma/Diploma
Certificate III/IV 269.4 512.1 579.6 548.4 376.8 2 286.5
Certificate I/II 94.5 95.3 154.7 165.5 130.9 640.9
Certificate not
46.0 73.0 31.5 32.2 21.3 204.0
further defined
Level not
11.7 26.0 36.2 51.4 32.7 158.2
determined
Total with non-
school 783.8 2 035.4 1 962.2 1 770.6 1 234.0 7 785.9
qualifications
Total without
non-school 2 174.1 932.6 1 090.8 1 126.2 1 053.6 6 377.3
qualifications
Total 2 957.9 2 968.0 3 052.9 2 896.8 2 287.6 14 163.1

(a) Persons aged 15-64 years.

Source: ABS Education and Work, Australia, May 2009 (6227.0).

The most common main fields of education for the highest non-school qualification held by
people aged 15-64 years were Management and commerce (24% of those with qualifications),
and Engineering and related technologies (18%). Mature aged persons (45-64 years) most
frequently had qualifications in the fields of Engineering and related technologies (21%),
Management and commerce (21%) and Society and culture (14%).
Back to top

12.35 MAIN FIELD OF HIGHEST NON-SCHOOL QUALIFICATION, By age - May

2009
 Age group (years)

15-24 25-34 35-44 45-54 55-64 Total(a)

Field of
’000 ’000 ’000 ’000 ’000 ’000
education

Natural and
25.8 74.9 60.2 55.9 50.5 267.2
physical sciences
Information
37.4 121.2 71.9 44.9 16.6 292.1
technology
Engineering and
related 101.5 287.0 360.6 349.6 289.3 1 388.1
technologies
Architecture and
42.4 114.9 125.4 127.0 80.0 489.7
building
Agriculture,
environment and 27.4 53.1 60.4 43.9 24.4 209.2
related studies
Health 44.6 193.5 189.8 200.7 141.1 769.7
Education 20.4 97.9 135.3 154.1 124.3 532.1
Management and
208.0 539.5 469.7 375.9 242.1 1 835.2
commerce
Society and
117.5 279.0 248.4 250.7 168.5 1 064.1
culture
Creative arts 49.4 127.4 80.3 56.6 31.5 345.3
Food, hospitality
and personal 96.1 124.0 126.8 79.1 44.9 471.0
services
Other(b) 13.2 23.0 33.2 32.0 20.8 122.2
Total 783.8 2 035.4 1 962.2 1 770.6 1 234.0 7 785.9
Persons without a
non-school 2 174.1 932.6 1 090.8 1 126.2 1 053.6 6 377.3
qualification

(a) Persons aged 15-64 years.

(b) Includes Field not determined and Mixed field programmes.
Source: ABS Education and Work, Australia, May 2009 (6227.0)

BIBLIOGRAPHY

ABS PRODUCTS

ANZSCO - Australian and New Zealand Standard Classification of Occupations, First

Edition, 2006 (1220.0)

Australian Social Trends, Sep 2009 (4102.0)

Australian System of Government Finance Statistics: Concepts, Sources and

Methods(5514.0.55.001)

Australian System of National Accounts (5204.0)

Australian National Accounts, June 2009 (5206.0)

Childhood Education and Care, Australia (4402.0)

Education and Training Experience, Australia (6278.0)

Education and Work, Australia (6227.0)

Government Finance Statistics, Education, Australia, 2005-06 (5518.0.55.001)

International Trade in Services, 2008-09 (5368.0.55.003)

Labour Force, Australia, Detailed, August 2009 (6291.0.55.003)

Schools, Australia (4221.0)

REFERENCES

Australian Government Department of Education, Employment and Workplace Relations:

Annual Reports
National Preschool Census 2008, Technical Report, DEEWR/14, Canberra
National Preschool Census 2008, Summary Report, DEEWR/14, Canberra

Australian Council for Educational Research :

TIMSS 2007 - Australia Highlights
TIMSS 2007 - Australia Full Report

National Center for Education Statistics (NCES):

TIMSS 2007 Highlights

WEBSITES

Australian Curriculum, Assessment and Reporting Authority (ACARA), last viewed November
2009, <http://www.acara.edu.au>

Australian Council for Educational Research (ACER), last viewed November 2009,
<http://www.acer.edu.au>

Australian Government Department of Education, Employment and Workplace Relations, last

viewed November 2009, <http://www.dest.gov.au>

Council of Australian Governments (COAG), last viewed November 2009,

<http://www.coag.gov.au>
Ministerial Council for Education, Early Childhood Development and Youth Affairs
(MCEECDYA), last viewed November 2009, <http://www.mceecdya.edu.au>

National Center for Education Statistics (NCES), last viewed November 2009,
<http://nces.ed.gov>

National Centre for Education and Training Statistics (NCETS), last viewed November 2009,
<http://www.abs.gov.au>

National Centre for Vocational Education Research (NCVER), last viewed November 2009,
<http://www.ncver.edu.au>

Parliament of Australia - Library, last viewed November 2009, <http://www.aph.gov.au/library/>

Culture and recreation

INTRODUCTION
Cultural and recreational activities are important contributors to the wellbeing of individuals and
communities. They take many forms including involvement in visual and performing arts, music,
literature, cultural heritage, religious activities, libraries, radio, television, and sports and
physical recreation.

This chapter reviews a range of cultural and recreational activities undertaken by Australians
and, where available, presents a statistical summary for those activities. The chapter also presents
information about the industries providing a range of cultural and recreational services in
Australia.

Statistics have been drawn from surveys of households and businesses conducted by the
Australian Bureau of Statistics (ABS), and also from its compilations of administrative data,
such as that which provides information about government funding of arts and heritage activities.
Other Australian Government organisations have contributed to some of the data presented in
this chapter.

Further information on the operations of organisations referred to in this chapter, including their
administrative and legislative backgrounds, may be obtained from their individual websites, the
addresses of which are provided at the end of the chapter.

This chapter contains the article Participation of migrants in culture and leisure activities.
ARTS AND CULTURAL HERITAGE

Experiencing the arts and heritage

Adult participation and attendance

Attendance at arts and cultural heritage venues and events is a significant aspect of the cultural
life of many Australians. The 2005-06 Survey of Attendance at Selected Cultural Venues and
Events found that the vast majority of Australians (85%) visited at least one cultural venue or
event in the 12 months prior to interview.

Zoological parks or aquariums, libraries and botanic gardens were the most popular heritage
venues in 2005-06, all attended by more than one third of Australians aged 15 years and over.
There were 5.7 million visitors to zoological parks and aquariums in 2005-06, 5.5 million at
libraries, and 5.4 million at botanic gardens. Art galleries and museums both recorded an
attendance rate of 23% (3.6 million people).

Attendance at cinemas was the most highly attended arts venue or event. Table 14.1 shows that
65% of the Australian population aged 15 years and over (10.4 million people) attended a
cinema, drive-in or other public screening of a film at least once in the 12 months prior to
interview in 2005-06. Popular music concerts were the second most attended arts venue or event
in 2005-06, with a quarter of Australian adults (4.0 million people) attending. Theatre
performance and other performing arts both recorded attendance rates of 17% (or 2.7 million
people), while 16% (or 2.6 million people) attended a musical or opera performance.

Residents in the Australian Capital Territory recorded the highest attendance rates for most
cultural venues and events of all states and territories. However, Western Australian residents
had the highest attendance rate at zoos and aquariums, and South Australian residents had the
highest rate at other performing arts and libraries.
14.1 PERSONS ATTENDING CULTURAL VENUES AND EVENTS, By state and
terrritory, 2005-06
NSW Vic. Qld SA WA Tas. NT(a) ACT Australia

ATTENDANCE RATE (%)

Heritage
Art galleries 20.8 23.9 22.0 24.0 22.8 24.0 25.9 39.7 22.7
Museums 21.3 20.9 21.7 26.9 22.2 30.8 38.2 47.3 22.6
Zoological parks and
33.2 37.0 33.2 37.9 43.4 31.6 36.0 41.4 35.6
aquariums
Botanic gardens 28.3 36.7 37.2 36.5 33.4 32.3 38.8 44.4 33.7
Libraries(b) 31.9 33.2 35.1 40.3 36.7 35.6 28.1 34.9 34.1
Arts
Classical music concerts 9.7 9.3 8.2 9.7 10.8 9.3 *7.9 13.3 9.4
Popular music concerts 23.9 23.6 25.8 26.2 30.8 24.1 29.5 34.1 25.2
Theatre performances 16.9 17.9 15.2 17.6 16.8 19.5 12.1 25.5 17.0
Dance performances 10.9 9.9 8.7 11.2 9.7 7.5 *9.6 16.6 10.2
Musicals and operas 16.6 18.4 15.4 13.0 14.8 15.3 9.4 19.1 16.3
Other performing arts 15.3 16.7 16.4 20.5 17.6 16.9 14.8 19.7 16.6
Cinemas 62.9 67.1 66.8 64.0 66.6 56.4 68.2 71.3 65.2
At least one venue or event 82.9 84.9 86.3 85.1 87.6 81.5 89.2 89.8 84.8

* estimate has a relative standard error of 25% to 50% and should be used with caution
(a) Includes predominantly urban areas only.
(b) National, state or local government libraries only.
Source: ABS Attendance at Selected Cultural Venues and Events, Australia, 2005-06 (4114.0).
Attendance rates for females tended to be higher than for males across all cultural venues and
events (table 14.2). Other than cinema attendance (males 63%, females 68%), the highest
attendance rate for males was zoological parks and aquariums (34%), while females were most
likely to visit a library (41%).

The cinema was the most highly attended cultural venue for all age groups, with attendance
peaking in the 15-24 age group. Other popular venues and events for the 15-24 age group were
zoological parks and aquariums, libraries and popular music concerts, all of which recorded an
attendance rate of 37% in 2005-06.

People aged 25-34 and 35-44 years were more likely to attend heritage venues than arts venues
or events, with high attendance rates at zoological parks and aquariums, botanic gardens and
libraries. The most popular arts event for these age groups was popular music concerts, followed
by other performing arts.

Heritage venues were also generally more popular than arts venues in the 45-54 and 55-64 age
groups. Botanic gardens were the most popular venue in these age groups, closely followed by
libraries and zoological parks and aquariums. Popular music concerts were also highly attended
in the 45-54 age group.

People aged 65 and over were most likely to attend libraries (32%), botanic gardens (30%) or art
galleries (19%).

Back to top

14.2 ATTENDANCE AT CULTURAL VENUES AND EVENTS(a), Attendance rates(b) -

by sex and age groups - 2005-06
SEX AGE GROUP (YEARS)

65 and
Males Females Persons 15-24 25-34 35-44 45-54 55-64
over

ATTENDANCE RATE (%)

Heritage
Art galleries 19.9 25.4 22.7 19.2 22.5 23.4 26.6 25.8 18.8
Museums 21.7 23.4 22.6 18.5 23.6 27.2 25.1 24.9 15.5
Zoological parks and
33.7 37.5 35.6 37.4 46.5 46.0 32.0 31.0 17.5
aquariums
Botanic gardens 31.0 36.3 33.7 26.4 37.6 35.9 35.2 37.4 29.8
Libraries(c) 26.7 41.2 34.1 37.4 32.7 37.3 33.6 30.3 31.9
Arts
Popular music concerts 24.8 25.6 25.2 37.4 30.9 25.1 26.5 18.7 10.0
Classical music concerts 8.2 10.6 9.4 6.1 7.0 8.3 12.4 12.8 10.8
Dance performances 6.9 13.3 10.2 11.4 9.4 12.3 12.8 8.5 5.6
Musicals and operas 12.0 20.6 16.3 15.0 13.6 17.0 19.0 19.9 14.0
Theatre performances 13.1 20.8 17.0 18.4 15.4 15.5 20.3 20.1 12.6
Other performing arts 14.8 18.3 16.6 17.3 19.0 19.3 17.3 15.9 9.6
Cinemas 62.5 67.7 65.2 87.0 75.7 68.6 62.7 55.6 36.6
(a) Attendance at least once in the twelve months prior to interview.
(b) An attendance rate is the number of people who attended, expressed as a percentage of the number of people in
that population group.
(c) National, state or local government libraries only.
Source: ABS Attendance at Selected Cultural Venues and Events, Australia, 2005-06 (4114.0).

Participation and attendance by children

The 2009 Survey of Children's Participation in Cultural and Leisure Activities found that in the
12 months to April 2009, just over one in three children aged 5-14 years (916,300 children)
participated in at least one selected organised cultural activity outside school hours, such as
playing a musical instrument, or participating in dancing, singing or drama. The same survey
showed that 71% of children (1.9 million) attended at least one selected cultural venue or event,
such as a public library, museum or art gallery, or performing arts event.

Overall, participation rates for children in at least one cultural activity did not change
significantly between 2006 and 2009. The more notable increases in attendance rates between
2006 and 2009 were for museums or art galleries, which increased from 37% in 2006, to 41% in
2009, and attending performing arts events (30% in 2006 compared with 34% in 2009) (table
14.3).

Table 14.4 shows that in the 12 months prior to interview in 2009, involvement in each of the
arts and cultural heritage activities varied by sex. For example, 26% of girls were involved in
dancing compared with 3% of boys.

Girls had generally higher attendance at cultural venues and events. The attendance rate for girls
at performing arts events (38%) was significantly higher than for boys (29%) in 2009.
Attendance rates at public libraries were also higher for girls (56%) than for boys (52%). In
contrast, there was no significant difference in the proportion of girls and boys visiting museums
and art galleries in the same 12 month period.

An estimated 45% of girls and 23% of boys were involved in at least one of the selected cultural
activities. Playing a musical instrument remained the most popular selected cultural activity for
boys (19%), while dancing remained the most popular cultural activity for girls (26%).
14.3 Childrens Participation and Attendence in Arts and Cultural Heritage, By sex - 2006
and 2009
2006 2009 2009 2009
Total Male Female Total

PARTICIPATION RATE (%)

Cultural venues and events

Visited public library 55.1 51.6 55.9 53.7
Visited museum or art gallery 37.3 40.9 41.8 41.3
Attended performing arts event 30.4 29.1 38.3 33.6
At least one selected venue or event 70.5 68.9 73.0 70.9
Organised cultural activities
Playing a musical instrument 19.5 18.7 20.7 19.7
 Singing 5.5 3.1 9.2 6.1
Dancing 12.5 3.0 26.3 14.3
Drama 4.5 2.8 6.6 4.7
At least one selected venue or event 32.6 23.0 44.9 33.7

Source: ABS Children's Participation in Cultural and Leisure Activities, Australia, April 2009 (4901.0).

Participation rates for singing, dancing and drama were similar for boys for all the age groups
(table 14.4). However, participation rates for playing a musical instrument in the boys aged 9 to
11 age group (25%) was more than double the boys aged 5 to 8 group (12%).

For playing a musical instrument the rate of participation for girls increased from 13% at ages 5
to 8, to 27% at ages 9 to 11. In contrast, participation rates for girls for dancing declined from
31% in the 5 to 8 age group to 20% in the 12 to 14 age group.

Back to top
14.4 Children's Participation and Attendence in Arts and Cultural Heritage, By sex and
age group - 2009
AGE BY GROUP (YEARS)

5-8 9-11 12-14 Total

% % % %

MALE

Cultural venues and events

Visited public library 53.9 54.6 45.8 51.6
Visited museum or art gallery 47.7 41.4 31.6 40.9
Attended performing arts event 30.9 28.6 27.2 29.1
Organised cultural activities
Playing a musical instrument 11.5 24.8 21.7 18.7
Singing 2.9 3.7 2.8 3.1
Dancing 3.1 3.2 2.6 3.0
Drama 2.4 3.5 2.4 2.8

FEMALE

Cultural venues and events

Visited public library 56.2 54.8 56.5 55.9
Visited museum or art gallery 45.8 44.5 34.1 41.8
Attended performing arts event 37.3 39.0 38.9 38.3
Organised cultural activities
Playing a musical instrument 13.4 26.7 24.1 20.7
Singing 6.3 10.0 11.9 9.2
Dancing 31.1 26.5 19.8 26.3
Drama 4.2 7.5 8.8 6.6

Source: ABS Children's Participation in Cultural and Leisure Activities, Australia, Apr 2009 (4901.0).

The 2009 Survey of Children's Participation in Cultural and Leisure Activities also collected
information on activities such as reading for pleasure, watching television, videos or DVDs, and
playing electronic or computer games - activities which involve children experiencing products
of the arts.

While participation rates were similar for boys and girls for some leisure activities (watching
television, DVDs and videos and homework or other study) they varied for others (table 14.5).
Boys were more likely to take part in other screen-based activities (boys 87% compared to girls
80%), riding a bike (boys 66% compared with girls 54%) and skateboarding, rollerblading or
riding a scooter (boys 56% compared with girls 42%). On the other hand, girls were more likely
to participate in reading for pleasure (80%) and art and craft activities (60%) than boys (65% and
37% respectively).

Nearly all children participated in at least one of the selected activities.

14.5 Children's Participation in Selected Leisure Activities(a), By sex - 2009
Males Females Persons

Attendance rate (%)

Skateboarding, rollerblading or riding a

55.9 42.4 49.3
scooter
Bike riding 66.1 54.4 60.4
Watching TV, DVDs or videos 97.0 97.7 97.4
Other screen-based activities(b) 86.5 79.7 83.2
Art and craft 37.4 59.9 48.3
Reading for pleasure 64.6 80.2 72.2
Homework or other study 80.1 84.8 82.4
At least one selected other activity 99.8 99.7 99.7

Number ('000)

Total population aged 5-14 years 1 395.8 1 326.7 2 722.5

(a) Children aged 5 to 14 years who participated in selected activities outside of school hours during the 12 months
prior to interview in April 2009.
(b) Any screen-based activities aside from watching TV, DVDs and videos. This may include, but is not limited to,
using the computer or Internet, playing games on a games console or mobile phone, and creating music playlists or
viewing photos on an MP3 player.
Source: ABS Children's Participation in Cultural and Leisure Activities, Australia, Apr 2009 (4901.0).

Industry

Museums

Museums (including art galleries) engage in the acquisition, collection management,

conservation, interpretation, communication and exhibition of heritage objects and artefacts.
Heritage objects include those that inform people about natural science, applied science, history,
transport, art and other cultures. The Collections Australia Network (CAN) website provides
access to a database of information on national, state, territory, regional and local museums.
CAN includes a searchable database of objects from collecting institutions across Australia.
At the end of June 2008 there were 180 art museums/galleries, 768 social history museums, 425
historic properties/sites and 83 other museum locations operating in Australia (table 14.6). Just
under half (48%) of the locations were operated without paid employees, relying on the work of
9,889 volunteers. Volunteers were also important to museums operating with employees. The
753 museum locations with paid employees employed a total of 7,856 persons assisted by 13,537
volunteers. There were 52.5 million museum objects and artworks held by museums at the end of
June 2008. However, only 5.4% of these were on display. There were 30.7 million admissions to
museums during 2007-08. Art museums received income of $396m during this time, while all
the other types of museums combined received $603m. The main source of income was
government funding ($658m) for all types of museums.

Back to top
14.6 Museums, at 30 June 2008
Social history Art museums / Historic properties / Other
Total
museums galleries sites museums

Locations no. 768 ^180 ^425 ^83 1 456

Employment no. 1 886 2 509 1 411 2 050 7 856
Volunteers no. ^12 752 ^3 741 ^4 898 ^2 035 23 426
Income $m 224.5 396.0 135.3 242.7 998.4
Expenses
Labour costs $m 77.2 126.4 54.6 122.4 380.7
Other $m 123.9 181.3 63.1 111.0 479.4
Total expenses $m 201.1 307.7 117.8 233.5 860.1
Number of 30
'000 ^8 778.7 ^12 949.6 3 728.1 5 261.1
admissions 717.5

^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
Source: ABS Museums, Australia, 2007-08 (8560.0).

Libraries

The main activities of libraries are the acquisition, collection, organisation, preservation and loan
of library materials such as books, magazines, manuscripts, musical scores, maps and prints. The
National Library of Australia (NLA) is the country's largest reference library and its role is to
ensure that documentary resources of national significance relating to Australia and the
Australian people - as well as significant non-Australian library materials - are collected,
preserved and made accessible. The NLA website provides online visitors with access to
information about more than 5,400 Australian libraries, their collections and services via the
Australian Libraries Gateway.

As at June 2008 there were over 1,500 Public Libraries in Australia (table 14.7). Over a quarter
(394) were located in New South Wales (NSW), 340 (22%) in Queensland and 317 (21%) in
Victoria. There were over 9.9m registered library users in Australia and almost one third of these
were registered in NSW, however the number of registered library users (per capita) was highest
in South Australia with 62% (or 991,000 persons).

In 2007-08, almost all public libraries (93%) provided members of the public with internet
access, with all public libraries within NSW and Victoria providing access to the internet. On
average there were 5.5 public terminals with internet access per public library in Australia. The
average was highest in Tasmania with approximately 11 such terminals per public library.
14.7 PUBLIC LIBRARIES AUSTRALIA, 2007-08
NSW Vic. Qld SA WA Tas. NT ACT Australia

LIBRARIES
Fixed point no. 372 290 321 136 232 46 32 8 1 437
Mobile no. 22 27 19 7 1 - - 2 78
Total no. 394 317 340 143 233 46 32 10 1 515
STAFF
Qualified librarians,
no. 828.5 554.2 366.9 177.2 294.9 45.1 20.2 30.2 2 317.3
FTE(a)
Total staff, FTE(a) no. 2 368.8 2 675.5 1 397.1 700.1 1 076.7 160.7 86.0 86.7 8 551.4
PUBLIC INTERNET
ACCESS(b)
Service points with
Internet no. 394 317 320 134 172 45 25 9 1 416
terminals
Percentage of total service
points with Internet % 100 100 94 94 74 98 78 90 93
terminals
Internet Terminals
no. 2 414 1 630 1 615 746 811 484 61 60 7 821
provided
Persons
Registered library users 3 179.0 2 497.5 1 973.3 990.7 887.9 142.0 67.8 162.1 9 900.3
('000)
Expenditure on Public
Library Value ($m) 282.5 190.3 165.6 66.5 96.2 15.2 4.0 10.3 830.5
Services

- nil or rounded to zero (including null cells)

(a) FTE = Full Time Equivalent
(b) As at 30 June 2008
Source: Australian Public Libraries Statistical Report 2007-08, Public Library Services, State Library of
Queensland, September 2009.

Performing arts

There are a range of arts and heritage industries operating within Australia, which contribute to
the cultural output of the country.

The latest data on performing arts industries from the service industry surveys is from 2006-07.

At 30 June 2007, there were 726 performing arts operation businesses or organisations (table
14.8). Of these, 180 were primarily involved in popular music performance, 102 in symphony
and choral performance, 143 in drama production, 36 in dance production and 264 in other music
and theatre production. These 726 organisations comprised 381 for-profit businesses and 345
not-for-profit organisations. Collectively, these organisations employed 6,569 people at the end
of June 2007. In addition to paid employment, there were 6,582 volunteers during the month of
June 2007.
During 2006-07, performing arts operation organisations or businesses generated a total income
of $733m and incurred total expenses of $683m.
14.8 SELECTED PERFORMING ARTS INDUSTRIES - 2006-07
No. $M

Businesses /
Performing Employment Volunteers during Total Operating profit /
organisations at end Total income
arts at end June the month of June expenses surplus before tax
June

Popular music
180 644 19 55.8 47.2 8.7
performance
Symphony and
choral 102 1 679 2 111 168.2 153.1 15.1
performance
Drama
143 1 580 1 137 151.8 149.2 2.5
production
Dance
36 636 148 65.4 63.5 2.0
production
Other music
and theatre 264 2 030 3 166 292.2 269.8 22.0
production
Total 726 6 569 6 582 733.4 682.7 50.4

Source: ABS Performing Arts, Australia, 2006-07 (8697.0).

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Film and video production

The film and video production industry comprises businesses mainly engaged in the production
of motion pictures on film or video tape for theatre or television projection, and includes services
such as casting, film editing and titling. The industry is well-developed in Australia and
comprises, for the most part, small specialised companies producing programs ranging from
feature films to sports coverage, documentaries and television commercials. According to Screen
Australia the major market for Australian audiovisual products is the domestic television
broadcast industry. However, export markets are also important for feature films and television
dramas, some high-budget documentaries and some commercials.

At the end of June 2007 there were 2,492 businesses primarily engaged in providing film and
video production and post-production services, employing 13,844 people. The total income of
these businesses for 2006-07 was $2,028m, with 56% ($1,132m) coming from film and video
production, followed by post-production services (21.1% or $428m), and production services
(16.9% or $344m) (table 14.9).

There were 10,032 people employed in the television broadcasting industry at the end of June
2007. These businesses earned a total income during 2006-07 of $6,813m with expenses totalling
$6,153m. This produced an operating profit/ surplus before tax of $671m.
14.9 TELEVISION, FILM, VIDEO PRODUCTION INDUSTRIES, 2006-07
No. $M

Employment at Total income Total Operating profit surplus

 end June expenses before tax

Television(a)
Commercial free-to-air
6 980 4 530.1 3 703.6 834.3
television broadcasting
Subscription television
3 052 2 282.6 2 449.5 -163.0
broadcasting
Total 10 032 6 812.7 6 153.1 671.3
Film and video production and
13 844 2 028.1 1 857.4 173.9
post-production services

(a) Excludes public and community television broadcasters.

Source: ABS Television, Film and Video Production, Australia, 2006-07 (8679.0).

During 2006-07, businesses undertaking television, film and video production incurred $1,882m
in production costs. Productions made specifically for television accounted for most of this
amount ($1,366m or 73%). Of these productions, the highest costs were incurred by news and
current affairs programs ($412m) and light entertainment and variety ($306m). However, these
types of programs were among the cheapest to produce on a cost-per-hour basis at $20,000 and
$59,300 respectively. These figures contrast starkly with the corresponding figures for drama
($341,500 per hour), children's drama ($229,200) and documentaries ($140,900) (graph 14.10).
14.10 Average cost per hour, By type of production(a) - 2006-07

Commercial broadcast hours represent the airtime of completed first release programs, including
commercial breaks. Program re-runs are excluded. In 2006-07 there were 55,546 commercial
broadcast hours for first release productions made primarily for television. Sport accounted for
the highest number of broadcast hours with 22,181 hours (40%), followed by news and current
affairs with 20,556 hours (37%) (graph 14.11).
 14.11 first release commercial broadcast hours, By type of production(a) - 2006-07

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Employment and other involvement

The 2006 Census of Population and Housing provides information on the number and
characteristics of people aged 15 years and over whose main job in the week prior to the Census
was in a heritage or arts occupation. People who had unpaid involvement in heritage or arts
activities - or who worked part time in these activities but had another job they regarded as their
main job in the week prior to the Census - were not recorded in the Census as having heritage
arts occupations.

Employment

The 2006 Census found that 284,793 people had their main (paid) job in a cultural occupation.
Of this number, the majority, 224,040 (79%) worked in an arts occupation, compared to 35,573
(12%) who worked in a heritage occupation and 25,180 (9%) who worked in an other cultural
occupation not attributable to heritage or arts.

Of the people who reported having a heritage occupation, 75% were females. Females were more
highly represented in most selected heritage occupations apart from environmental manager,
gallery or museum technician and park ranger.

In contrast, the Census showed that the majority of people who held an arts occupation as their
main (paid) job, were male (58%). Males were more heavily represented in almost all arts
occupations apart from music teacher (private tuition).

Table 14.12 shows the number of people who were recorded as having their main (paid) job in
selected heritage and arts occupations in the 2006 Census.
14.12 Persons employed in cultural occupations, By sex - 2006
Males Females Persons
 NUMBER

Heritage(a)
Archivist 331 565 896
Arts Administrator or Manager 567 1 173 1 740
Conservator 129 255 384
Environmental Manager 1 149 463 1 612
Gallery or Museum Curator 351 620 971
Gallery or Museum Guide 370 769 1 139
Gallery or Museum Technician 164 84 248
Librarian 1 658 8 422 10 080
Library Assistant 1 174 7 081 8 255
Library Technician 727 5 781 6 508
Park Ranger 1 551 427 1 978
Total Heritage(b) 9 059 26 514 35 573
Arts(a)
Graphic Designer 11 320 11 018 22 338
Architect 10 195 3 088 13 283
Architectural Draftsperson 6 847 1 936 8 783
Printing Machinist 6 705 647 7 352
Photographer 4 540 3 002 7 542
Urban and Regional Planner 4 472 3 030 7 502
Musician 4 443 1 460 5 903
Print Journalist 3 202 3 104 6 306
Media Producer 3 195 2 400 5 595
Music Teacher (private tuition) 3 159 6 130 9 289
Total Arts(b) 130 736 93 304 224 040
Other Cultural Occupations 15 990 9 190 25 180
Total Cultural Occupations 155 785 129 008 284 793

(a) Heritage/Arts occupations with the highest number of persons employed.

(b) Totals include other Heritage/Arts occupations not listed.
Source: Census of Population and Housing, 2006.

Volunteers

Many cultural industries are run as commercial operations and are exclusively staffed by paid
employees. A few industries, however, rely heavily on the assistance of volunteers. The Service
Industry Surveys found that there were 23,426 people volunteering at museums during June
2008, which is more than three times the number of people who were in paid employment in the
industry, during the same period. Similarly, 6,582 people undertook voluntary work in
performing arts operation during June 2007, which was slightly more than the number of paid
employees.

Some 6,853 people volunteered in public libraries during June 2004 (approximately one
volunteer for every two paid employees). Performing arts venue operations had 1,935 people
volunteering in the industry in 2007, compared to 5,876 paid employees.

Government support

The Cultural Ministers Council (CMC) was established in 1984 to provide a forum for the
exchange of views on issues affecting cultural activities in Australia and New Zealand. It
comprises those ministers from the Australian, state and territory governments who have
responsibility for the arts and cultural heritage. The corresponding minister from the New
Zealand Government is also a member. Additional information about the CMC and its activities
can be obtained from the website.

The Australia Council for the Arts is the Australian Government's arts funding and advisory
body. The Australia Council supports young, emerging, developing and established Australian
artists - and arts organisations - through diverse funding options and a range of grant programs.
During 2007-08, 4,091 grant and project applications were made to the Australia Council, of
which 1,736 were successful. These grants totalled $146.9m. Around 67% of the grants,
amounting to 93% of the funding, went to organisations or groups, while the remaining grants,
with an average value of $17,460, were paid directly to individual artists. Further information
about the Australia Council and its activities can be obtained from its website.

In 2007-08, total government funding for cultural activities was around $6.3 billion (table 14.13).
Of this, the Australian Government contributed $2,359m (37%) to total cultural funding while
the state and territory governments contributed $2,952m (47%) and local governments provided
$1,000m (16%).

The Australian Government continues to allocate the majority of its cultural funding (76%) to
Arts activities. In 2007-08 the Australian Government allocated $1,788m to Arts activities and
$571m to Heritage activities. In contrast, the state and territory governments expended the
majority of their funds on Heritage with $2,266m (77%) of their total cultural funding in this
area while Arts activities received $686m or 23% of funding. In 2007-08, local government
funding for both heritage and arts activities was $1000m. This was an increase of $75m (or 8%)
on 2006-07 when local government funding was $926m.

Radio and television services received the majority of Australian government Arts funding at
$1,353m (76%) while Other museums and cultural heritage received the majority of Heritage
funding at $232m (41%). Across all categories, the largest recipient of state and territory
government funding was Environmental heritage which received $1,345m, accounting for 46%
of the total state and territory cultural funding. The majority of state and territory Arts funding
was allocated to Performing arts venues which received $235m (34.%). Almost two thirds of the
local government funding in 2007-08 went to libraries ($653m).

Back to top

14.13 CULTURAL FUNDING, By level of government, 2007-08

Australian State and territory Local
Total
Government government government

VALUE OF FUNDING ($M)

Heritage
Art museums 58.2 178.2 51.0 287.4
Other museums and cultural
232.3 365.0 33.1 630.4
heritage
Environmental heritage 121.0 1 345.4 . . 1 466.4
 Libraries and archives
Libraries 65.4 317.6 653.4 1 036.4
Archives 93.8 60.1 .. 153.9
Total 159.1 377.7 653.4 1 190.3
Total heritage(a) 570.7 2 266.3 . . 2 837.0
Arts
Literature and print media 27.2 8.2 .. 35.4
Performing arts
Music performance 35.3 103.1 .. 138.4
Drama 31.9 23.3 .. 55.3
Dance 36.8 14.4 .. 51.2
Music theatre and opera 8.7 16.8 .. 25.5
Other performing arts 8.4 35.1 .. 43.5
Total(b) 121.2 192.7 38.1 352.0
Performing arts venues - 235.2 .. 235.2
Music composition and publishing 1.8 1.1 .. 2.8
Visual arts and crafts 32.5 28.2 .. 60.7
Design 0.1 3.4 .. 3.4
Broadcasting, film and multimedia
Radio and television services 1 352.7 2.3 . . 1 355.0
Film and video production and
115.5 91.8 .. 207.3
distribution
Multimedia 3.7 6.3 .. 10.0
Total 1 472.0 100.4 . . 1 572.4
Other arts 133.5 116.8 .. 250.2
Total arts(a) 1 788.2 685.8 . . 2 474.0
Total cultural or arts services
.. .. 224.8 224.8
nec(a)
Total government funding 2 358.9 2 952.2 1 000.3 6 311.4

. . not applicable
- nil or rounded to zero (including null cells)
(a) Totals are not available at this level for local government. Totals for heritage and arts for local government are
included in cultural or arts services n.e.c.
(b) Limited detailed data are available from local government.
Source: ABS Cultural Funding by Government, Australia, 2007-08 (4183.0).

An ABS survey of the performing arts industry, conducted in respect of 2006-07, found that
government funding contributed $166m to the income of businesses mainly involved in
performing arts venue operations, and $174m to performing arts operations. These amounts
comprised 34% and 24% respectively of total income.

A survey of museums conducted in respect of 2007-08, found that funding from all levels of
government contributed $658m to the total income of museums. This amount included both
current and capital funding, and funding for one-off projects. Art museums received $258m of
the funding, and other museums and historic properties/sites the remaining $400m.

SPORTS AND PHYSICAL RECREATION

Participation by adults
Australia is recognised internationally as a nation that is very much involved in sport. It is widely
accepted that there are many benefits associated with participation in sport and physical activity
including enjoyment, social interaction, health, personal achievement, national pride and
community involvement. In many ways, sport unites and personifies the nation. Interestingly,
Australians were competing internationally as 'Australia' even before Australia was federated as
a nation.

The ABS conducted a household survey during the period July 2005 to June 2006 to measure
participation in sport and physical recreation. The survey included sports, such as football or
netball, which are usually organised by a club or association. It also included other sports and
physical recreation activities which may not have been organised, such as walking for exercise.

The 2005-06 survey found 66% of the population aged 15 years and over (or 10.5 million
people) participated as a player (rather than in a support role) at least once during the 12 months
prior to interview in one or more sports or physical recreation activities (table 14.14). The
participation rate was highest for the 25 to 34 year age group (75%), then declined with age to
49% for persons aged 65 years and over. The overall participation rates for males and females
were very similar. However, for the 43% (6.8 million) of the population who participated at least
weekly (on average), female participation (44% or 3.6 million) was higher than male
participation (41% or 3.2 million).
14.14 PARTICIPATION IN SPORTS AND PHYSICAL RECREATION(a) - 2005-06
MALES FEMALES PERSONS

Participation Participation Participation

Number Number Number
rate rate rate
Age group
'000 % '000 % '000 %
(years)

15-17 307.8 77.3 302.8 72.1 610.5 74.6

18-24 735.2 73.3 671.3 71.8 1 406.4 72.6
25-34 1 054.5 76.3 1 033.9 74.0 2 088.3 75.1
35-44 975.4 66.7 1 035.9 69.1 2 011.2 68.0
45-54 871.8 63.5 923.4 65.7 1 795.2 64.6
55-64 670.1 60.4 716.3 64.6 1 386.5 62.5
65 and over 591.0 50.8 652.9 48.2 1 243.9 49.4
Total 5 205.7 66.0 5 336.4 65.7 10 542.1 65.9

(a) Relates to persons aged 15 years and over who participated in sports or physical recreation as a player at least
once during the 12 months prior to interview in the 2005-06 survey.
Source: ABS Participation in Sports and Physical Recreation, Australia , 2005-06 (4177.0).

The 2005-06 survey found that the activities which attracted the most participants during the 12
months prior to interview were walking for exercise (4.0 million people), aerobics/fitness (2.0
million), swimming (1.4 million) and cycling (1.0 million).

For both males and females, the two most popular activities were walking and aerobics/fitness.
Golf was the third most popular activity for males, while for females it was swimming. Table
14.15 shows the ten sports or physical recreation activities in which the most men participated
and the ten in which the most women participated.
14.15 PARTICIPATION IN SELECTED SPORT AND PHYSICAL RECREATION
ACTIVITIES(a) - 2005-06
Number Participation rate
'000 %

MALES
Walking for exercise 1 298.6 16.5
Aerobics/fitness 744.5 9.4
Golf 695.6 8.8
Cycling 691.0 8.8
Swimming 633.3 8.0
Running 425.9 5.4
Tennis 389.5 4.9
Soccer (outdoor) 311.5 3.9
Cricket (outdoor) 309.7 3.9
Bush walking 248.1 3.1
FEMALES
Walking for exercise 2 659.7 32.8
Aerobics/fitness 1 271.5 15.7
Swimming 814.0 10.0
Netball 387.5 4.8
Tennis 379.4 4.7
Cycling 320.7 3.9
Bush walking 271.4 3.3
Running 255.4 3.1
Yoga 248.7 3.1
Golf 179.9 2.2

(a) Relates to persons aged 15 years and over who participated in sports or physical recreation as a player at least
once during the 12 months prior to interview in the 2005-06 survey.
Source: ABS Participation in Sports and Physical Recreation, Australia , 2005-06 (4177.0).

The 2007-08 National Health Survey conducted by the ABS found that almost two-thirds (65%)
of all adults had exercised for recreation, sport or fitness during the two weeks prior to interview,
and the proportions of males and females exercising were similar. However, females were more
likely to exercise at a lower level than males. The percentage of females exercising at a low level
was 40% compared with 34% of males, whereas 8.4% of males exercised at a high level
compared with 4.0% of females (table 14.16).

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14.16 EXERCISE LEVEL(a)(b), By sex - 2007-08
Males Females Persons
% % %

Sedentary 34.2 36.1 35.2

Low 33.8 40.0 36.9
Moderate 23.4 19.9 21.6
High 8.4 4.0 6.2
Total(c) 100.0 100.0 100.0

(a) Exercise undertaken in the two weeks prior to interview.

(b) Relates to persons aged 15 years and over during the two weeks prior to interview in the year shown.
(c) Includes persons for whom level of exercise was not stated.
Source: ABS National Health Survey, Summary of Results, Australia, 2007-08 (4364.0).

Participation by children

A survey of children's activities in the 12 months to April 2009 found 1.7 million children aged 5
to 14 years (63%) participated in at least one sport outside of school hours which had been
organised by a school, club or association. A comparison of the data from 2003 to 2009 shows
that the participation rate in organised sport did not increase significantly (62% in 2003 and 63%
in 2009).

Participation in organised sport peaked at 74% for 12 to 14 year old boys and at 65% for girls
aged 9 to 11 years. Participation rates were higher for boys across all age groups compared with
girls, with the greatest difference occurring in the 12 to 14 years age group. The total
participation rate was 70% for boys and 56% for girls (table 14.17).
14.17 CHILDREN PARTICIPATING IN ORGANISED SPORT(a) - 2009
NUMBER PARTICIPATION RATE(b)

Males Females Persons Males Females Persons

Age group (years) '000 '000 '000 % % %

5-8 349.5 264.8 614.2 63.9 51.0 57.6

9-11 302.8 258.1 560.9 72.1 64.6 68.4
12-14 318.6 224.0 542.6 74.2 54.9 64.8
Total participants 970.8 746.9 1 717.8 69.6 56.3 63.1

(a) Children aged 5 to 14 years who participated in organised sport (excluding dancing) outside of school hours
during the 12 months prior to interview in April 2009.
(b) A participation rate is the number of persons involved in an activity expressed as a percentage of the total
population of that group.
Source: ABS Children's Participation in Cultural and Leisure Activities, Australia, April 2009 (4901.0).

Participation rates in organised sport varied between the states and territories, ranging from 58%
in Tasmania to 71% in the Australian Capital Territory.

The most popular organised sports for children in 2009 were swimming with a participation rate
of 19%, outdoor soccer at 13% and Australian Rules football at 9% (table 14.18). For boys, the
most popular sports were outdoor soccer (20%), swimming (17%), and Australian Rules football
(16%). In comparison, the sports most popular among girls were swimming (20%), netball (17%)
and gymnastics (7.6%).

Male and female participation rates in at least one organised sport did not show any significant
change between 2006 and 2009 increasing from 69% to 70% for boys and decreasing from 57%
to 56% for girls.
14.18 CHILDREN PARTICIPATING IN MOST POPULAR ORGANISED SPORTS(a), By
sex
2006 2009

Males Females Persons Males Females Persons

% % % % % %

Swimming 16.5 18.2 17.4 17.2 19.8 18.5

Soccer (outdoor) 19.6 6.4 13.2 19.9 6.2 13.2
Australian Rules football (b)13.8 0.9 (b)7.5 16.0 0.9 8.6
Netball *0.1 17.3 8.5 *0.3 17.0 8.4
Tennis 8.0 6.6 7.3 9.4 6.3 7.9
Basketball 7.4 5.7 6.6 8.5 6.3 7.4
Martial arts (b)6.1 2.9 (b)4.5 7.5 3.7 5.7
Cricket (outdoor) 10.1 *0.4 5.4 9.7 *0.5 5.2
Gymnastics 1.6 (b)5.5 (b)3.5 1.7 7.6 4.6
Rugby league 7.9 *0.3 4.2 7.0 - 3.6
Athletics, track and field 2.6 3.2 2.9 3.0 3.5 3.3
Soccer (indoor) 3.3 1.1 2.2 4.3 1.3 2.8
Hockey 1.7 2.2 1.9 1.8 2.4 2.1
All other organised sports 17.5 (b)17.0 (b)17.3 15.8 12.1 14.0
At least one organised
68.8 56.5 62.8 69.6 56.3 63.1
sport(c)

* estimate has a relative standard error of 25% to 50% and should be used with caution
- nil or rounded to zero (including null cells)
(a) Children aged 5 to 14 years who participated in organised sport (to a maximum of three per child), excluding
dancing, outside of school hours during the 12 months prior to interview in April.
(b) Difference between this participation rate and the 2009 participation rate is statistically significant.
(c) May not add to sum of components as some children participated in more than one activity.
Source: ABS Children's Participation in Cultural and Leisure Activities, Australia, April 2009 (4901.0).

Although boys had the higher participation rate in organised sport, girls had a much higher
participation rate than boys in another form of organised physical activity - dancing. During the
12 months ended April 2009, there were 348,500 girls who participated in organised dancing
outside school hours - a participation rate of 26%. The number of boys participating was 41,900 -
a participation rate of 3.0% (table 14.19).

Besides organised sport and dancing, the survey also asked about participation in several non-
organised physical recreation activities - bike riding and skateboarding, rollerblading or riding a
scooter. For both activities, a significantly higher percentage of boys (70% and 56%
respectively) participated than did girls (54% and 40%). However, participation by girls in bike
riding was significantly lower in April 2009 than it had been in April 2006 - 54% compared with
62%.

Back to top
14.19 CHILDREN PARTICIPATING IN SELECTED OTHER ACTIVITIES(a), By sex
 2006 2009

Number Participation rate Number Participation rate

'000 % '000 %

Males

Skateboarding, rollerblading or
.. .. 780.4 55.9
riding a scooter(b)
Bike riding 1 003.0 (c)73.4 922.5 69.5
Dancing(d)(e) 32.5 2.4 41.9 3.0

Females

Skateboarding, rollerblading or
.. .. 562.2 40.3
riding a scooter(b)
Bike riding 803.2 (c)61.9 721.1 54.4
Dancing(d)(e) 300.1 (c)23.1 348.5 26.3

Persons

Skateboarding, rollerblading or
.. .. 1 342.6 49.3
riding a scooter(b)
Bike riding 1 806.2 (c)67.8 1 643.6 60.4
Dancing(d)(e) 332.6 (c)12.5 390.4 14.3

. . not applicable
(a) Children aged 5 to 14 years who were involved in selected activities outside of school hours during the last two
school weeks prior to interview in April.
(b) Riding a scooter was included in this category for 2009 data.
(c) Difference between this participation and the 2009 participation rate is statistically significant.
(d) Although actually a cultural activity, dancing is included here because of the physical exertion it requires.
(e) Children aged 5 to 14 years who participated in organised dancing (lessons or performances) outside of school
hours during the 12 months prior to interview in April.
Source: ABS Children's Participation in Cultural and Leisure Activities, Australia, April 2009 (4901.0).

Attendance

Attending sporting events (such as club matches and international competitions) is a popular
pastime for many Australians. An ABS household survey conducted during the period July 2005
to June 2006 indicated that 7.1 million people, or 44% of all people aged 15 years and over,
attended a sporting event (excluding junior and school sport) at least once in the 12 months prior
to interview. Men (52%) were more likely to have attended a sporting event than women (37%).
Attendance rates were highest for men in the 25 to 34 year age group (62%) and women in the
18 to 24 year age group (53%). For both sexes, attendance declined with age. Among men aged
65 years and over, the attendance rate was 29%, while for women in this age group it was 18%.

The sport with the highest attendance was Australian Rules football - 2.5 million people attended
this sport on at least one occasion during the year (table 14.20). Horse racing (2.0 million),
Rugby League (1.5 million) and motor sports (1.5 million) also attracted large numbers of
spectators.
14.20 ATTENDANCE AT SELECTED SPORTING EVENTS(a) - 2005-06
 Number Attendance rate(b)

Males Females Persons Males Females Persons

'000 '000 '000 % % %

Australian Rules football 1 515.5 1 011.3 2 526.7 19.2 12.5 15.8

Horse racing 1 091.5 912.2 2 003.7 13.8 11.2 12.5
Rugby League 943.8 542.6 1 486.4 12.0 6.7 9.3
Motor sports 1 023.1 462.1 1 485.2 13.0 5.7 9.3
Cricket (outdoor) 547.5 183.2 730.7 6.9 2.3 4.6
Rugby Union 449.6 232.4 682.0 5.7 2.9 4.3
Soccer (outdoor) 348.6 212.2 560.7 4.4 2.6 3.5
Harness racing 253.7 190.5 444.2 3.2 2.3 2.8
Tennis 104.3 163.5 267.9 1.3 2.0 1.7
Dog racing 139.7 85.2 224.8 1.8 1.0 1.4
Basketball 132.6 104.6 237.2 1.7 1.3 1.5
Netball 58.0 130.8 188.8 0.7 1.6 1.2

(a) Attendance at least once in the 12 months prior to interview in the 2005-06 survey, by persons aged 15 years and
over.
(b) The number of people who attended, expressed as a percentage of the number of people in that population group.
Source: ABS Sports Attendance, Australia, 2005-06 (4174.0).

Government support

Governments of all levels play an important role in the development of sport and physical
recreation in Australia at both the elite and grassroots levels. The functions of some government
(and non-government) national administrative bodies are described below.

The Sport and Recreation Ministers' Council (SRMC) provides a forum for cooperation and
coordination between the Australian Government and state and territory governments on matters
relating to the development of sport and recreation. The governments of New Zealand and Papua
New Guinea are also represented on SRMC. Its membership comprises government ministers
with prime responsibility for sport and recreation.

The Australian Sports Commission (ASC) is the Australian Government agency responsible for
the funding and development of sport at the national level. The ASC supports a wide range of
programs designed to develop sporting excellence and increase participation in sport by all
Australians. The Australian Institute of Sport (AIS) is a major program within the ASC and is
responsible for developing elite sport on a national basis with a particular focus on success at the
international level. More information about the ASC and AIS can be obtained from their
websites.

The Commonwealth Department of Health and Ageing has a diverse set of responsibilities,
which include supporting sport, particularly at the community level, and increasing Australians'
participation in physical and recreational activities to promote physical and mental health.

Individual sports in Australia are managed and coordinated by National Sporting Organisations
(NSOs), each managing participation in, and development of, a specific sport. Many NSOs
receive funding from the ASC. More information about most NSOs can be obtained from the
Australian Sports Directory on the ASC website.

Surveys of organisations (both private and public) providing sport and physical recreation
services were conducted by the ABS in respect of 2004-05. It was found that the total funding
provided by Commonwealth, state and local governments to these organisations was $1,564m -
18% of their combined total income ($8,821m). Of the funding provided by government, $695m
went to Commonwealth, state and territory government organisations providing sport and
physical recreation services, $481m funded local government organisations, $46m went to
organisations operating to make a profit, and $342m funded organisations operating on a 'not-
for-profit' basis. The amount of government funding by type of sport and physical recreation
service can be seen in table 14.21.

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14.21 GOVERNMENT FUNDING FOR ORGANISATIONS PROVIDING SPORTS AND
PHYSICAL RECREATION SERVICES, 2004-05
Funding
Type of sports and
physical recreation service $m
organisation

Sports and physical

157.2
recreation venues(a)
Sports and physical
recreation administrative 188.1
organisations
Sports and physical
recreation clubs, teams and 25.2
sports professionals
Sports and physical
17.1
recreation support services
Government organisations
Commonwealth,
and state or 735.8
territory
Local 440.1
Total 1 175.9
Total 1 563.6

(a) Includes health and fitness centres and gymnasia; and other sports and physical recreation venues, grounds and
facilities.
Source: ABS Sports and Physical Recreation Services, Australia, 2004-05 (8686.0).

Industry

Surveys of businesses and other organisations providing sport and physical recreation services
were conducted by the ABS in 2004-05. At the end of June 2005 there were 8,656 private sector
organisations involved in the provision of sport and physical recreation services (table 14.22).
The total income of these organisations for 2004-05 was $7,342m, while total expenses were
$6,959m. At the end of June 2005, total employment was 100,468 assisted by 181,832 volunteers
during the month of June. Of these volunteers, 18,126 (10%) assisted non-employing
organisations.

While 42% of the private-sector organisations were 'not for profit', these were mainly
concentrated in sports administration, where all 1,147 organisations operated on a not-for-profit
basis; and in sports clubs, where 1,824 (69%) were not for profit. The highest proportions of
organisations operating for profit occurred in the categories of health and fitness centres and
gymnasia (94%), and other sports services (93%).

At least 57% of the employees in sports administration, sports clubs, and horse and dog racing
were male. Health and fitness centres and gymnasia had the highest level of female employment,
both in absolute terms (11,362) and as a percentage of people employed (67%).

Organisations in the categories of sports administration, sports clubs and other sports services
were the most likely to make use of volunteer labour. Together, they accounted for 97% of the
181,832 volunteers assisting organisations providing sports and physical recreation services. For
these three categories, volunteers outnumbered employees by over three and a half to one
overall. However, for the remaining three categories, employees outnumbered volunteers by nine
to one overall.

The main sources of income for each category of sport and physical recreation service were:
 horse and dog racing - net industry and TAB distributions (44% of total income) and
training fees (14%)
 health and fitness centres and gymnasia - membership and competition fees (79%) and
casual playing fees (6.8%)
 other sports and physical recreation venues - casual playing fees (20%) and
membership and competition fees (17%)
 sports administration - television and other broadcasting rights (17%) and sponsorship,
fundraising and donations (16%)
 sports clubs - sponsorship, fundraising and donations (22%) and membership and
competition fees (19%)
 other sports services - coaching, training and instructing (56%) and casual playing fees
(16%).
14.22 SPORTS AND PHYSICAL RECREATION SERVICES, 2004-05
Sports and
Horse Health and Other sports Sports and physical Other
and fitness and physical physical recreation sports
Total
dog centres and recreation recreation clubs, teams services(a
racing gymnasia venues administration and )
professionals

Businesses/organisations
at 30 June
For profit no. 759 ^777 872 .. 825 1 774 5 007
Not for profit no. 359 47 145 1 147 1 824 ^127 3 649
Total no. 1 119 ^824 1 016 1 147 2 649 1 900 8 656
Total employment at 30
June
Males no. 9 826 5 509 9 309 6 084 12 890 6 333 49 951
Females no. 6 719 11 362 10 005 4 535 9 326 8 571 50 518
100
Persons no. 16 544 16 871 19 314 10 619 22 216 14 904
468
Total volunteers during 181
no. 3 457 ^343 ^2 031 ^65 131 54 342 56 527
the month of June 832
$ 1 7
Total income(b) 679.4 1 109.8 1 531.0 1 884.1 582.0
m 556.3 342.6
$ 1 6
Total expenses 649.4 1 020.3 1 461.7 1 815.1 496.6
m 515.5 958.7
Operating profit/surplus $
^41.3 ^30.3 90.1 ^70.9 70.6 ^85.7 388.8
before tax(b)(c) m

^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
. . not applicable
(a) Includes sports services such as education and coaching.
(b) Includes capital funding.
(c) This item is derived as total income minus total expenses, plus closing inventories minus opening inventories.
Source: ABS Sports and Physical Recreation Services, Australia, 2004-05 (8686.0).

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Employment and other involvement

The 2006 Census of Population and Housing provides information on the number and
characteristics of people aged 15 years and over whose main job in the week prior to the Census
was in a sport and physical recreation occupation. People who had unpaid involvement in sport
and physical recreation activities and people who worked in sport and physical recreation as a
'second job' were not recorded as being in sport and physical recreation occupations, unless their
main job (in terms of hours worked) was also a sport and physical recreation occupation.

The 2006 Census found that in August 2006, 75,155 persons (0.7% of all employed persons) had
their main (paid) job in a sport and physical recreation occupation. This is a 22% increase from
the 2001 Census when 61,818 persons (0.7%) had their main job in a sport and physical
recreation occupation, and compares with a 9.7% increase for all occupations.

Of those employed in a sport and physical recreation occupation in August 2006, fitness
instructors (13,799 persons) and greenkeepers (12,137 persons) were prominent (table 14.23).
There were more males (44,443 or 59%) than females (30,712 or 41%) employed in sport and
physical recreation occupations. By comparison, of all employed persons, 54% were male.
14.23 Persons employed in selected sports and physical recreation occupations(a) - 2006
Occupation Males Females Persons

Fitness instructor 5 075 8 724 13 799

Greenkeeper 11 816 321 12 137
Swimming coach or instructor 1 607 5 978 7 585
Stablehand 1 613 2 267 3 880
Other sports coach or instructor 2 529 932 3 461
Sports centre manager 2 071 1 336 3 407
Horse trainer 1 967 797 2 764
Lifeguard 1 687 907 2 594
Sports umpire 1 804 579 2 383
Tennis coach 1 677 468 2 145

(a) The Australian and New Zealand Standard Classification of Occupations was used for the collection of ABS
occupation data.
Source: ABS Employment in Sport and Recreation, Australia, August 2006 (4148.0).

The ABS conducted a household survey in April 2007 to measure people's involvement in
organised sport and physical activities over the previous 12 months. In the year ended April
2007, 4.5 million people (27% of all people aged 15 years and over) were involved in sport and
physical activity organised by a club, association or other organisation (table 14.24). This
involvement included not only players and participants, but also people involved in non-playing
roles that support, arrange and/or run organised sport and physical activity. There were 1.6
million people (9.9% of all people aged 15 years and over) who were involved as coaches,
referees, scorers, administrators or in other non-playing roles.

Of the 4.5 million people involved in organised sport and physical activity, 22% were both a
player and involved in at least one non-playing role. Of the 1.6 million people with non-playing
involvement, 40% participated in more than one non-playing role. In all, these 1.6 million people
had 2.6 million involvements in non-playing roles in the 12 months prior to interview.

Of the 3.8 million players, 3.0% received some payment (in dollars and/or goods and services)
for their involvement and, of the 1.6 million non-playing involvements, 16% attracted some
payment (table 14.24). These data, and the figures in table 14.22, indicate how heavily reliant
sport organisations are on the support of unpaid helpers.
14.24 PERSONS INVOLVED IN ORGANISED SPORT AND PHYSICAL ACTIVITY

Some paid Unpaid involvement Total involvements Participation rate(b)

involvement only(a)

2004 2007 2004 2007 2004 2007 2004 2007

'000 '000 '000 '000 '000 '000 % %

3
Playing 87.7 114.7 3 580.5 3 668.2 3 815.0 23.4 23.4
700.3
Non-playing
involvement
Coach, instructor,
122.1 145.1 472.3 513.4 594.5 658.5 3.8 4.0
teacher
Referee or umpire 78.6 81.8 256.8 299.4 335.4 381.2 2.1 2.3
Committee
member or 21.6 41.0 552.8 641.6 574.4 682.6 3.7 4.2
administrator
Scorer or
16.7 26.6 496.3 589.2 513.0 615.8 3.3 3.8
timekeeper
Medical support
and other 14.1 18.4 90.4 159.8 104.5 178.2 0.7 1.1
involvement
Other
14.0 16.6 113.9 79.0 127.9 95.6 0.8 0.6
involvement
 Total persons
1
with non-playing 247.4 265.9 1 250.1 1 497.5 1 621.4 9.6 9.9
467.7
involvement(c)
Total persons 4
297.9 348.7 3 971.9 4 269.8 4 455.4 27.2 27.3
involved(d) 306.9

(a) Includes those who did not know whether they would be paid for their involvement.
(b) The total number of persons involved in organised sport and physical activity, expressed as a percentage of the
population in the same group.
(c) Components do not add to total as some persons were involved in more than one non-playing role.
(d) Components do not add to total as some persons were involved in both playing and non-playing roles.
Source: ABS Involvement in Organised Sport and Physical Activity, Australia, April 2007 (6285.0).

A household survey, conducted by the ABS during March to July 2006, collected information on
the types of organisations, clubs and associations to which people provided unpaid help in the
form of time, services or skills (volunteers). The survey found that just over a third (34%) of
Australians aged 18 years and over (5.2 million people) undertook some form of voluntary work
in the 12 months prior to interview in 2006 (table 14.25). Sport and physical recreation
organisations had the largest number of volunteers at 1.7 million, giving a volunteer rate of 11%.
Although the overall volunteer rate for females (36%) was higher than for males (32%), the
reverse was true for sport and physical recreation organisations with the male volunteer rate
being 14% and the female 8.7%. The peak age group for volunteering for sport and physical
recreation organisations was 35 to 44 year olds with a volunteer rate of 17%.

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14.25 Sport and physical recreation and other volunteers, By age and sex - 2006
Sport & Total
Sport & physical
physical Total sport & Persons
recreation and Other Total Not a
recreation physical recreation aged 18
other organisations onlyvolunteers volunteer
organisation(s) organisation(s) years &
organisation(s)
only over

VOLUNTEERS ('000)

Male 672.9 366.9 1 039.9 1 365.3 2 405.2 5 148.1 7 553.3

Female 294.8 378.1 672.9 2 148.4 2 821.3 4 932.5 7 753.8

VOLUNTEERS ('000)

Male 8.9 4.9 13.8 18.1 31.8 68.2 100.0

Female 3.8 4.9 8.7 27.7 36.4 63.6 100.0

VOLUNTEERS ('000)

Age
group
(years)
18-24 147.5 62.8 210.3 364.0 574.3 1 365.8 1 940.1
25-34 167.9 112.7 280.6 578.3 858.9 1 950.3 2 809.2
35-44 241.0 269.4 510.4 764.7 1 275.1 1 713.2 2 988.3
45-54 251.9 172.4 424.2 677.4 1 101.6 1 698.6 2 800.2
55-64 90.5 79.1 169.6 556.8 726.4 1 512.9 2 239.3
65 &
68.9 48.7 117.6 572.8 690.4 1 839.5 2 529.9
over
Total 967.7 745.1 1 712.8 3 513.7 5 226.5 10 080.6 15 307.1

VOLUNTEERS ('000)

18-24 7.6 3.2 10.8 18.8 29.6 70.4 100.0

25-34 6.0 4.0 10.0 20.6 30.6 69.4 100.0
35-44 8.1 9.0 17.1 25.6 42.7 57.3 100.0
45-54 9.0 6.2 15.1 24.2 39.3 60.7 100.0
55-64 4.0 3.5 7.6 24.9 32.4 67.6 100.0
65 &
2.7 1.9 4.6 22.6 27.3 72.7 100.0
over
Total 6.3 4.9 11.2 23.0 34.1 65.9 100.0

Source: ABS data available on request, General Social Survey.

BIBLIOGRAPHY

ABS PRODUCTS

Attendance at Selected Cultural Venues and Events, Australia, 2005-06 (4114.0)

Australian and New Zealand Standard Classification of Occupations (ANZSCO), 2006

Edition (1220.0)

Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006

Edition (1292.0)

Children's Participation in Cultural and Leisure Activities, Australia, April 2009

(4901.0)

Cultural Funding by Government, Australia, 2007-08 (4183.0)

Environmental Issues: People's Views and Practices, March 2004 (4602.0)

Employment in Culture, Australia, 2006 (6273.0)

Employment in Sport and Recreation, Australia, 2006 (4148.0)

General Social Survey: Summary Results, Australia, 2006 (4159.0)

Involvement in Organised Sport and Physical Activity, Australia, April 2007 (6285.0)

Museums, Australia, 2007-08 (8560.0)

National Health Survey: Summary of Results, Australia, 2007-08 (4364.0)

Participation in Sports and Physical Recreation, Australia, 2005-06 (4177.0)

Performing Arts, Australia, 2006-07 (8697.0)

Sports Attendance, Australia, 2005-06 (4174.0)

Sports and Physical Recreation Services, Australia, 2004-05 (8686.0)

Television, Film and Video Production, Australia, 2006-07 (8679.0)

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