Budget 2021: ‘Freeze’ ends but ABC, SBS face cuts

The broadcasting budgets of the ABC and SBS could be cut by up to 6 per cent in real terms over the next four years.

ABC Headquarters at Ulitmo in Sydney. Picture: NCA NewsWire/David Swift

The broadcasting budgets of the ABC and SBS could be cut by up to 6 per cent in real terms over the next four years, despite the assumption that the federal government’s controversial “indexation freeze” on the ABC’s operational budget will be scrapped in 2022.

According to the budget papers, funding for public broadcasting — which includes both the ABC and SBS — is set for a modest 0.8 per cent dip from 2020-21 to 2021-22, and a forecast 6 per cent trim from 2021-22 to 2024-25.

However, the numbers beyond 2021-22 are indicative only, as the ABC is funded on a triennial basis, with the current agreement due to expire on June 30, 2022. The next triennial funding arrangement has not yet been announced.

The expected cuts are largely explained by the planned termination — at the end of 2021-22 — of the enhanced local and regional news program, which has cost the government $43.7m annually since it was introduced in 2019-20 as a supplementary funding stream for the ABC and SBS.

But the savings banked by the axing of that program are to be partially offset by the assumption in the outer years that the freeze on the indexing of the ABC’s operational budget — a decision taken by the Turnbull government in 2018 — will be eased from 2022-23 onwards.

The three-year indexation freeze affected the ABC’s operational budget only; the national broadcaster’s transmission and distribution components were unaffected, and are being maintained in real terms over the next four years.

The ABC’s estimated total revenue from government over the next four years ranges from $1.065bn in 2020-21 to $1.070bn in 2021-22, $1.061bn in 2022-23, $1.076bn in 2023-24, and $1.090bn in 2024-25.

The ABC’s average staffing level for 2021-22 remains at 4030 people, as it was in 2020-21.

For SBS, total broadcasting funding — which covers general operation, transmission and distribution — is $416m in 2020-21, $432m in 2021-22, $431m in 2022-23, $428m in 2023-24, and $426m in 2024-25.

The federal government will also inject a further $11.9m into children’s television over four years from 2021-22, to support the development and distribution of quality Australian children’s content. This is in addition to the funding of $20.2m over two years provided in the 2020-21 budget.

Newswire Australian Associated Press has been awarded charity status for the next five years, and has also been given a further funding tranche of $15m over two years.

This year’s budget provides an additional $8m over two years to its community broadcasting program to assist Australia’s 450 community radio broadcasters.

Communications Minister Paul Fletcher said the money would support the “regional, national and international news, to regional media outlets”.

“This allows regional media businesses to concentrate on covering local news stories that are important to their communities,” Mr Fletcher said.