The ABC is, arguably, at the mercy of the government of the day.
Though governments for years have been claiming the ABC’s disappearing budget is not a result of budget cuts, rather some form of linguistic magic trick where the both disappears and is still there the whole time.
The government has consistently cut the budget of the ABC since 2014, $780,000,000.
source: Transparency.gov
If the government won’t preserve the ABC’s budget, and by proxy its vital services, maybe it is time we took the power out of the hands of the government entirely.
How can we secure reliable budget numbers for a culture war wounded ABC/SBS?
It’s time to rethink the payment model.
Hear me out this isn’t a privatisation rant, I am not here to try and sneak a pro-Coalition talking point through as a ploy to save the ABC from the government, no.
A tax deductible licensing fee on top of the government funding might be the way to secure a reliable budget for the ABC/SBS.
Think of the licensing fee as a Patreon for independent news, emergency information services, and experimental new television.
One of the nice things about being our own country is we can do things our own way.
Australia has a history of being a bit of a cultural hybrid of America and the UK and, we share an intimate knowledge of US history through American TV and also have a strong hatred for American remakes of British TV, The Office aside obviously.
Essential services previously run through the ABC like ABC life, servicing country Australia and its Pacific broadcast services, helping foster relations throughout the pacific region.
The 2021 budget proposes a further $10 million loss to the budget of the ABC.
It’s been a long hard year and almost east for those who don’t live in impacted areas that the summer bushfires prior to COVID happened, it feels like such a long time ago.
But those outbreaks meant the corporation had to absorb an additional $3m in emergency broadcasting costs.
By March 2020 the ABC had made 935 emergency broadcasts already compared to 371 the year before and 256 in 2017-18. These services can no longer face the continual fear of cuts.
I am proposing a change to the funding model. A hybrid funding model, part government funding, part TV licensing fee. A hybrid model for our hybrid cultural influences.
I know it reads as double dipping on taxes but there are a lot of models we can build from that would simply make this a small and manageable payment which supports local productions, investigative news, and essential emergency broadcasting.
Germany has a TV license model that is built into your electricity bill, so monthly or quarterly fees could be included into a service you already budget for.
The average licensing fee in most European countries comes to under 200 euros and we can keep it low, lower if you have a concession, are a senior, or are a low income household.
The BBCs licencing fee nets it around £3.4 billion a year, the amount the ABC receives over its triennial funding period.
This money allows the BBC to frequently top lists of the most trusted news source in the world.
It also allows for the experimental TV that causes us to love BBC comedy, Fawlty Towers, Monty Python, Mighty Boosh, Red Dwarf, The Thick of it (inspiration for VEEP), and is responsible for introducing the world to the joys of David Attenbrough’s distinct narration of the world.
The detractors of the ABC say it is a socialist venture, despite demonstrably not being so, why not lean into that a little?
An ABC without fear of budget cuts is an ABC that can truly serve us all even those who desperately pine for the return of ABC Classical.
We need an ABC that can support all Australians.
Budget cutbacks over the latest ABC triennial funding periods, the current one ends in 2022, resulted in a significant reduction in programming, loss of Olympics coverage on ABC radio and non-news television production outside Melbourne and Sydney.
Not to mention the previous loss of support for women’s sport, VFL and other local sports in 2014, loss of five local newsrooms, and shortwave radio in the Northern Territory being shut down.
If the government expects the ABC to serve more people than just the city elites then they need to provide finances to get services to those people.
Australia’s most remote communities are as far as 1,000km from the nearest town. These are the places that will be left behind in the event of a national emergency if there isn’t sufficient funding to ensure the ABC is capable of reaching the most remote areas.
A report by independent think tank Per Capita for GetUp said the ABC was now operating with the smallest budget since the Howard government’s 2% funding cut in 1996, but has vastly more services to run even with service losses.
Maybe we can run our ABC patreon on a multi-tier system. The more you give you get rewards, executive producer credits on a show, some tote bags, or a simple thank you credit on ABC TV shows and movies for giving slightly above the minimum license rate.
We don’t have to be the same as other countries, we just need to be more forward thinking and, like the ABC, willing to take a chance on something new and experimental.
To protect the ABC, maybe it’s time to re-think the payment model
I’m intrigued by the idea of a tax deductible license fee. Would it differ from a donation because it’s a set amount, or would you be able to give us much as you wanted?
Perhaps the Aus gov should set up a list of government services which accept tax deductible donations so when you do your tax you’re given the option of getting a better return by donating to services like the ABC etc.
Otherwise, I don’t think license fees make sense now unless you’re already used to them, and I imagine they would be hard to implement unless they were optional. As of 2019 Australia’s population is 25.36m vs the UK’s 66.65m so potentially an optional “license fee” would bring in enough money for the ABC to replace the $10m lost in the latest budget.
But if you were donating money to the ABC would you want greater say on what they spent money on too? Perhaps when you donated you could select which subjects interest you, so then we can finally get the 24 hour gardening channel I’ve been petitioning for.
Thorough exploration Matt. I particularly like the standpoint that we CAN do our own thing – crisis creates innovation, if we let the innovation happen.
Looking at different models to serve regional and rural areas is key – I think people are willing to pay for news if they know it’s a service with a face behind it, and they might be even more willing if it felt charitable in a sense. Who doesn’t love a tax deduction. But if such a hybrid model didn’t work, and the cuts continue, then perhaps independent non profits have to fill the gaps and serve regional communities – this would also require a change to news organisations tax deduction status though, to aid philanthropy.
And good point on the additional emergency broadcast costs! that’s alarming.
Interesting article, Matt.
I do think most people would baulk at the idea of paying a licensing fee. I also think the vital importance of the ABC, especially in times of crisis like during the bushfires, goes to show that it is a public good that should be publicly funded. James’ idea of a tax-deductible donation is interesting.
I’ll take the tote bag though!
Hi Matt, great article. You presented the impact of funding cuts in such a concise and interesting manner – so many great programs and shows lost over the years. A licensing fee is something I’ve never thought of, and it sounds great to me. I do think some people would be hesitant, especially those who err on the conservative side of politics. But, now would be the perfect time to sell this idea to the public. The ABC’S excellent coverage of the bushfires is still fresh in the minds of the nation. On top of this, we are constantly turning to the ABC for COVID updates and live coverage of press conferences delivered by various state premiers. We are therefore constantly reminded of the ABC’s crucial role in providing emergency information to Australian society. Thanks for this very informative article, I really enjoyed its humorous undertones and am glad you made an exception for the Office!