Federal budget includes $84 million to reverse ‘cut’ to ABC’s funding under the Coalition

The federal budget includes tens of millions of dollars in additional funding for the ABC, reversing a previous “cut”.

Tonight’s federal budget includes more than $80 million in extra funding for the ABC, reversing a “cut” under the previous government that forced the national broadcaster to axe hundreds of jobs.

In 2018, when Malcolm Turnbull was prime minister, the then-Coalition government announced it would pause the ABC’s annual funding indexation for three years, meaning its budget would no longer keep up with inflation.

The freeze went into effect from July of 2019. The government argued it was not, in fact, a cut, as the broadcaster’s funding would continue to rise – just not by as much.

Whatever you call the move, it resulted in the ABC’s funding being about $84 million lower than it would have been otherwise.

“It is true that over the three years the ABC budget does still increase, but by a reduced amount, due to indexation on the fixed cost of transmission and distribution services,” ABC chair Ita Buttrose said in 2020.

“Previously, it was rising by a further $83.75 million over the same three years for indexation on our operational base.

“This is the funding that has been cut and (is being) considered a saving by the government.”

The indexation freeze was announced when Malcolm Turnbull was PM. Picture: Dan Himbrechts/AAP

Her remarks came as the ABC cut 250 jobs, citing the lower funding. Labor reacted to those job cuts by promising to restore the $84 million shortfall.

“The ABC is an essential service and we saw during the bushfires that the ABC literally saved lives,” then-opposition leader Anthony Albanese said at the time.

“It’s vital for regional Australia and it’s important that it be funded at an appropriate level.

“There’s (fewer) news bulletins, for example, going out at a quarter to eight every morning – something that people have relied upon for their whole lives, something that people have relied upon for their whole lives, something that’s been a part of who we are.

“We will put additional money, that money, back into the ABC budget, because it’s what Australians expect.”

Paul Fletcher, who was the Coalition’s communications minister, called this “essentially a nonsensical, meaningless non-promise”.

“He’s saying if they come into government, halfway through 2022, they would in some way be able to provide funding over a period from mid-2019 to mid-2022. That period will be almost over,” Mr Fletcher said.

The ABC logo on its building in Ultimo, Sydney. Picture: Danny Casey/AAP

The budget delivered by Treasurer Jim Chalmers on Tuesday night, Labor’s first since winning this year’s election, included $83.7 million in extra funding, spread out over four years.

The budget also includes $500,000 for the ABC to run a feasibility study into the idea of expanding its radio station double j from digital to FM frequencies.

And it contains $32 million across four years to help the broadcaster expand its services in the Pacific region. That cash has been allocated by the Department of Foreign Affairs and Trade.