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2003

YEAR BOOK AUSTRALIA

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2003 YEAR BOOK AUSTRALIA

2003 YEAR BOOK AUSTRALIA

Dennis Trewin Australian Statistician

NUMBER 85 AUSTRALIAN BUREAU OF STATISTICS CANBERRA ABS Catalogue No. 1301.0

ISSN 0312–4746 © Commonwealth of Australia 2003

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights in this publication should be addressed to The Manager, Intermediary Management, Australian Bureau of Statistics, Locked Bag 10, Belconnen ACT 2616, by telephone (02) 6252 6998, fax (02) 6252 7102, or email . In all cases the ABS must be acknowledged as the source when reproducing or quoting any part of an ABS publication or other product.

Cover:

Summertime panorama of the Murray River from Murtho Lookout, near Renmark, South Australia. The Murray is the principal river of Australia and flows through New South Wales, Victoria and South Australia. Photograph by John P. Baker .

Table of contents Chapter

1

Page

Preface

vii

Introduction

ix

Article — Towards sustainability — an overview

1

Geography and climate

13

Article — Climate change

34

Government

45

Article — Should the House of Representatives have four-year terms?

62

3

International relations

77

4

Defence

95

5

Population

109

6

Labour

151

7

Income and welfare

191

8

Housing

227

9

Health

253

10

Education and training

295

11

Crime and justice

333

12

Culture and recreation

365

13

Industry overview

403

14

Environment

417

Article — Australia’s rivers

449

Energy

457

Article — Renewable energy in 2003

478

Agriculture

491

Article — The wool industry — looking back and forward

527

17

Forestry and fishing

535

18

Mining

567

19

Manufacturing

597

2

15

16

20

Construction

615

Article — Construction and the environment

640

21

Service industries

649

22

Tourism

687

Article — Sustainable tourism in the Great Barrier Reef Marine Park

703

Transport

707

Article — Environmental impacts of Australia’s transport system

735

24

Communications and information technology

743

25

Science and innovation

761

26

Financial system

779

27

Government finance

803

28

Prices

827

29

National accounts

845

Article — Accounting for the environment in the national accounts

874

International accounts and trade

887

List of articles contained in this issue

927

List of articles contained in previous issues

929

Acknowledgements

933

For more information. . .

935

Index

937

23

30

Preface Year Book Australia is the principal reference work produced by Australian Bureau of Statistics (ABS). It provides a comprehensive and detailed statistical overview of various aspects of the economy and social conditions in Australia, together with their administrative and legislative background. In addition, it contains descriptive matter dealing with Australia’s government, international relations, defence, geography and climate. The first Official Year Book of the Commonwealth was published in 1908, although individual Australian states and colonies had been producing year books for several decades previously. This 85th edition of Year Book Australia has environmental issues, and particularly sustainable development, as a major theme. A number of articles throughout this edition address aspects of Australia’s environment. The statistics contained in this edition are the most recent available at the time of its preparation. In many cases, the ABS web site and the web sites of other organisations provide access to more recent statistics. The sources of information are shown throughout and at the end of chapters of the Year Book, while the ABS Catalogue of Publications and Products (1101.0) lists all current publications of the ABS. ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated. Particular thanks and appreciation are extended to those organisations which have kindly supplied material for inclusion in this 2003 edition of Year Book Australia. I also take the opportunity to extend my thanks to the many ABS staff who contribute each year to the preparation and production of the Year Book.

Australian Bureau of Statistics Canberra January 2003

Dennis Trewin Australian Statistician

Introduction Year Book Australia provides a comprehensive overview of the economic and social conditions of contemporary Australia. Environmental issues, and particularly sustainable development, are a major theme of this 2003 edition. It is a statistically oriented publication with sufficient background information to establish a context for the statistics and to assist in understanding and interpreting them.

represent only a relatively small part of the statistics and other information available. The Year Book is aimed primarily at providing a ready and convenient source of reference, both to those familiar and unfamiliar with a particular subject. In other words, because of the range of subjects, and limitations on the size of the Year Book, it aims at breadth rather than depth of information.

Many of the statistics are derived from the ABS, the official statistical agency which produces the Year Book. However, a great deal of the information is also contributed by other, predominantly government, organisations. The official nature of the contributors to the Year Book ensures a high degree of objectivity and reliability in the picture presented of contemporary Australia.

For those requiring information in greater depth, the Year Book also serves as a directory to more detailed sources, with the source shown for each statistical table, graph and map. Where the ABS is the source, the title and catalogue number of the relevant publication are quoted. For other sources, the name of the organisation is shown, and the publication title where appropriate. Relevant ABS and other publications are also listed at the end of each chapter, together with a selection of relevant web sites. A useful complementary publication is the ABS Catalogue of Publications and Products (1101.0) which lists all current publications and products of the ABS.

The Year Book also presents some historical and international perspectives on Australia. This current (85th) edition is the latest in a long series of Year Books extending back to the first edition in 1908. This series provides a valuable source of information on the state of Australia at any point in this period. Year Book Australia 2003 is also available on CD-ROM. Its contents are included in Australia Now on the ABS web site at . The Year Book is also the source for Australia at a Glance (1309.0).

Finding information The contents pages at the beginning of the Year Book and preceding each chapter provide a guide to the broad subjects contained in each chapter. The index assists in locating information on more specific subjects. A list of articles which have appeared in previous editions is contained at the end of the Year Book. A collection of articles is included in Australia Now on the ABS web site. The tables and graphs in a chapter are numbered and the text is cross-referenced, as necessary, to the table or graph to which it relates.

Further information While the statistics and descriptive information contained in the Year Book provide a comprehensive overview of Australia, they

Year Books or Statistical Summaries produced by the ABS for each state or territory provide information similar to that contained in Year Book Australia, for the state or territory concerned. As well as the information included in this Year Book, the ABS may have other relevant data available on request. Charges are generally made for such information. Inquiries should be made to the National Information and Referral Service on 1300 135 070. The annual reports of government departments and agencies also provide a valuable source of more detailed information on subjects covered in the Year Book. For a variety of reasons, it is not possible for all statistics in the Year Book to relate to the latest or the same year. Readers wishing to obtain or clarify the latest available statistics should contact the relevant source.

Comments from readers The ABS endeavours to keep the balance of the contents of the Year Book in line with the ever-changing nature of the nation. For this reason comments on the adequacy and balance

x

Year Book Australia 2003

of the contents of the Year Book are welcomed and should be directed to the attention of the Editor of the Year Book, Australian Bureau of Statistics, Locked Bag 10, Belconnen ACT 2616.

m2

square metre

m3

cubic metre

MB

megabyte

Symbols and abbreviations

mill.

million

The following symbols and abbreviations, are shown in tables and graphs:

ML

megalitre

’000

thousand

mm

millimetre

$’000 thousand dollars

Mt

megatonne

$m

million dollars

no.

number

$b

billion dollars

n.a.

not available

%

percentage

n.e.c. not elsewhere classified



nil or rounded to zero (including null cells)

n.e.i.

..

not applicable

*

subject to high standard errors and should be used with caution

**

subject to sampling variability too high for practical purposes (i.e. relative standard error greater than 50%)

<

less than

°C

degrees Celsius

CO2

carbon dioxide

CO2-e carbon dioxide equivalent

not elsewhere included

n.e.s. not elsewhere specified n.f.d. not further defined n.p.

not for publication

n.y.a. not yet available p.a.

per annum

PJ

petajoule

t

tonne

excl.

excluding

FTE

full-time equivalent

incl.

including

SAR

special administrative region

VET

vocational education and training

Gg

gigagram

GJ

gigajoule

GL

gigalitre

ha

hectare

kg

kilogram

The following abbreviations are used for the titles of the Australian states and territories and Australia:

km

kilometre

NSW

New South Wales

km2

square kilometre

Vic.

Victoria

km3

cubic kilometre

Qld

Queensland

kt

kilotonne

WA

Western Australia

kWh

kilowatt hour

SA

South Australia

L

litre

Tas.

Tasmania

m

metre

NT

Northern Territory

Introduction

ACT

Australian Capital Territory

Aust.

Australia

Yearly periods shown, for example, as 2000, refer to the year ended 31 December 2000; those shown, for example, as 2000–01, refer to the year ended 30 June 2001. Other yearly periods are specifically indicated. The range of years shown in the table headings, for example, 1901 to 1999–2000, indicates the period covered, but

xi

does not necessarily imply that each intervening year is included or that the yearly period has remained the same throughout the series. Values are shown in Australian dollars ($) or cents (c) unless another currency is specified. Where figures have been rounded, discrepancies may occur between sums of the component items and totals.

Towards sustainability — an overview The Johannesburg World Summit on Sustainable Development in 2002 marked 10 years since the first summit in Rio de Janeiro in 1992. The year 2003 is the International Year of Freshwater. Given these milestones, and the importance and topicality of sustainable development and environmental issues generally, the ABS decided to make environmental issues, and particularly sustainable development, a major theme of the 2003 edition of Year Book Australia. A number of articles throughout this edition address environmental issues. The purpose of this article is to draw together the threads in those articles, and thereby present a brief statistical overview of environmental issues in Australia. Many environmental, social and sustainable economic development issues are interrelated. The article addresses them in the following order: n

rising per capita income and national wealth

n

sustainable forestry

n

sustainable fisheries and marine ecosystems

n

sustainable mining

n

sustainable land and water use, and protecting Australia’s biodiversity

n

energy, greenhouse gases and climate change

n

impacts of industrial activities, and of households.

What do we mean by sustainable development? The World Commission on Environment and Development (1987) defined Ecologically Sustainable Development as: development which meets the needs of the present without compromising the ability of future generations to meet their own needs.

The National Strategy for Ecologically Sustainable Development commits all Australian governments to the following three core objectives: n

to enhance individual and community wellbeing and welfare by following a path of economic development that safeguards the welfare of future generations

n

to provide for equity within and between generations

n

to protect biological diversity and maintain essential ecological processes and life support.

These objectives in turn suggest the following kinds of economic and environmental aims: n

rising national wealth per capita as well as income per capita — to achieve both implies replacing any natural resources used with alternative resources of an equal value

n

using natural resources prudently and efficiently — this implies not using renewable resources (such as forests and wild fisheries) in excess of their natural regeneration. It also implies not consuming other resources (such as groundwater and surface water, fossil fuels and other mineral resources) beyond a critical level

n

maintaining biodiversity, and not using sink functions beyond their assimilative capabilities

n

minimising human contributions to global warming.

These aims provide the sustainability backdrop to the articles on environmental issues in this edition of Year Book Australia.

2

Year Book Australia 2003

while there have been some fluctuations over this period, the trend has been strongly positive. The growth in both these indicators suggests that broadly the needs of the present generation are being met (through increasing levels of income) and that the needs of future generations are not being compromised (to the extent that national wealth, which underpins future national income, is increasing).

Rising per capita income and national wealth At the World Summit on Sustainable Development, many countries attached a high priority to improving the material wellbeing of their residents. Chapter 29, National accounts illustrates that, for Australia, progress has been strong in this area. Two indicators compiled for Measuring Australia’s Progress, 2002 (1370.0) show this to be the case. Graph S1 shows a strong and continuous rise in real net national disposable income per head since 1992. Graph S2 shows, for real national net worth per head, that

Frameworks for measuring progress and wellbeing are discussed in an article Beyond GDP: Towards wider measures of wellbeing in Chapter 29, National accounts.

S1 REAL NET NATIONAL DISPOSABLE INCOME PER CAPITA $'000 28

26

24

22

1990–91

1992–93

1994–95

1996–97

1998–99

20 2000–01

Source: ABS 2002b.

S2 REAL NATIONAL NET WORTH PER CAPITA(a) — At 30 June $'000 128 126

124 122

120

118

116

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

(a) Reference year for chain volume estimates is 1999–2000. Data are not available prior to 1992. Source: ABS 2002b.

Towards sustainability — an overview

Sustainable forestry Two articles, Sustainable forest management and Forest conservation, in Chapter 17, Forestry and fishing describe the framework and processes used in Australia to manage Australia’s forest resources in a way that strikes a reasonable balance between the economic, ecological, social and cultural values of forests for current and future generations. The Montreal Process, established in 1994, is being used as a tool to assist in monitoring and reporting on Australia’s progress toward sustainable forest management. A number of threatening processes directly or indirectly jeopardise the health and vitality of forest ecosystems. These include clearing and fragmentation of habitats, mining, timber harvesting, the impact of invasive species, altered fire regimes, and climate change. In recognition of the potentially adverse impacts of these threatening processes on Australia’s forests, the Commonwealth Government and the state and territory governments have moved to protect Australia’s forest ecosystems through forest conservation. About 26.8 million hectares (ha) of native forest are protected and conserved in reserves, representing 16% of Australia’s remaining native forest estate.

Establishing a conservation reserve system is one of the key objectives of the Regional Forest Agreement (RFA) process implemented through the 1990s. The RFA process added 2.9 million ha to the existing estate of forest reserves, giving RFA regions a total of 10.4 million ha of forest in conservation reserves. This increased the reserved forest area in RFA regions by about 39%. More than 8.5 million ha are within formal dedicated conservation reserves. The RFAs increased old-growth forest protection across the 10 RFA regions by about 42%, from 2.4 million ha to 3.4 million ha. As a consequence, about 68% of existing old-growth forests in RFA regions have been reserved. Unfortunately neither the Montreal indicators nor the information publicly available from the RFAs indicate the degree to which native forest timber resources are being depleted. The best available information is in an article in the June quarter 2002 edition of Australian National Accounts: National Income, Expenditure and Product (5206.0). This shows that the real or volume estimates of native standing timber available for production fell by 8% between 1993 and 2001 (graph S3), but appear to have stabilised in recent years.

S3 NATIVE FOREST ASSETS — As at 30 June Current price Volume measure(a)

$b 3.0

2.5

2.0

1.5

1993

1995

1997

(a) Reference year for volume measure is 1999–2000. Source: ABS 2002a.

1999

2001

3

4

Year Book Australia 2003

Sustainable fisheries and marine ecosystems An article Fishing and the environment, in Chapter 17, Forestry and fishing, discusses the extent to which Australian fisheries stocks are being managed in a sustainable manner and the effects of fishing on habitat and non-target species. It shows that fisheries production of a number of species has been declining since the late 1980s. Reasons for declines in some fisheries include overfishing, use of non-selective fishing gear, loss of habitat, pollution, natural disasters, and the complexity of Australia’s marine jurisdiction, which hinders management of fish stocks. An article Aquaculture and the environment in the same chapter discusses Australia’s rapidly expanding aquaculture industry (production rose by 146% in the decade to 2000–01, compared to a rise of 46% in the total gross value of fisheries production) and its environmental impacts. Aquaculture takes some pressure off wild fisheries, but it has the potential to alter coastal foreshores, estuaries, mangroves, salt marshes, and marine and other aquatic environments. The main environmental impacts of aquaculture are water pollution, pest species, the strain placed on wild fish populations for brood and feed purposes, and the culling of natural predators. The potential also exists to introduce diseases and for farmed exotic fish to escape into the wild. Chapter 14, Environment discusses population and human settlement pressures on Australia’s marine and coastal area (one of the largest in the world, extending over some 16 million square kilometres), which hosts a wide variety of habitats including estuaries and mangroves, dunes and beaches, rocky and coral reefs, seagrasses, gulfs and bays, seamounts, and a huge area of continental shelf. At 30 June 1996, 83% of Australia’s population lived within 50 km of the coast. All states except the Northern Territory and South Australia are experiencing higher rates of population growth and urban development within 3 km of the coast than elsewhere within the state (Newton et al. 2001). The coastal strip is an ecologically sensitive zone, and urban sprawl, and pollution of rivers, lakes and seas, were described by the Resource Assessment Commission as the two most important problems faced by the coastal zone (RAC 1993).

Australia’s estuaries in particular face a number of pressures from urban and industrial development in coastal areas, and from disturbance through land use and vegetation clearance in catchments. For example, estuaries are often used for dumping, sand or water extraction, and construction of marinas, ports and canal estates, and are susceptible to changes in natural flows caused by the construction of dams and weirs. Such pressures threaten the condition of estuaries by causing excess nutrient concentrations, sedimentation, loss of habitat, weed and pest infestation, and the accumulation of pollutants. Another focus of the Environment chapter is coral reefs, which are among the most productive and complex ecosystems in the world. The Great Barrier Reef is the largest coral reef in the world, consisting of about 3,000 individual reefs covering an area of 345,950 square kilometres. Australian coral reefs face a variety of pressures. These include: run-off of sediment and nutrients at a number of coastal locations, which is steadily increasing through human activities (primarily from the effects of agriculture and land use practices, as well as increasing industrial and urban development); increased recreational and commercial fishing; increasing pressure from tourism developments; threats from invasive and pest species such as the crown of thorns starfish; and coral bleaching, possibly due to global warming (SoE 2001). The article Sustainable tourism in the Great Barrier Reef Marine Park following Chapter 22, Tourism addresses management of the impacts of tourism on the Park.

Sustainable mining The article Mining and the environment in Chapter 18, Mining briefly discusses the main environmental impacts of mineral mining, such as wastes, and the rate of resource use (where the supply of minerals depends on the rate of resource use, which is affected by the economic life of mineral deposits and the rate at which new reserves are discovered). The article also summarises environmental management initiatives, such as the use of legislation, environmental impact assessments, environmental

Towards sustainability — an overview

protection expenditure, rehabilitation and industry self-regulation.

are characterised by relatively low and variable flows.

Data from the national balance sheet, presented in the Chapter 29, National accounts, show that the quantity of economically viable mineral reserves is increasing (as new discoveries are made and new technologies and lower production costs make existing reserves more profitable).

In much of the intensive land use zone of Australia, catchment land use has significantly modified the physical and chemical nature of the rivers. These now carry higher than natural levels of sediment and nutrient. In some regions, the biological condition of the rivers, wetlands and groundwater dependent ecosystems has been severely impacted by the extraction of large volumes of water for agricultural, urban and industrial use.

Sustainable land and water use, and protecting Australia’s biodiversity Since European settlement of Australia, around 100 million ha of forest and woodland have been cleared, mostly for agricultural production (NFI 1998), and land continues to be cleared for agriculture. Today around 456 million ha, or 59% of land in Australia, are used for agriculture, making it the dominant form of land use. Agriculture is also the largest consumer of water in Australia; in 1996–97 it accounted for 15,500 gigalitres (GL) or 70% of total water use. This edition of Year Book Australia contains a number of articles on sustainable land and water use, and protecting Australia’s biodiversity. An article Environmental impacts of agriculture in Chapter 16, Agriculture discusses land degradation and related issues, including salinity. Chapter 14, Environment discusses Australia’s biodiversity, extent and clearing of native vegetation, and invasive species. That chapter is followed by an article Australia’s rivers. Some of the main findings from these articles follow.

Australia’s rivers Water is essential for all living organisms. Australia is considered one of the driest inhabited continents. Compared to other continents, Australia is also characterised by variable climatic conditions and high levels of evapotranspiration. These factors result in a low proportion of rainfall converted to streamflow, making freshwater a valuable resource. By world standards Australia is a dry continent with few freshwater resources. Australian rivers

The consumption of Australia’s freshwater resources from lakes, rivers and underground aquifers has increased strongly in the last two decades. Between 1983–84 and 1996–97 national water consumption increased from 14,600 GL to 23,300 GL annually (NLWRA 2001c). Across Australia, catchment land use and diverting water are considered the most serious threats to the ecological condition of Australia’s rivers, wetlands and groundwater dependent ecosystems. Based on state assessments of sustainable yield, the 2001 National Land and Water Resources Audit determined that 34 (11%) of Australia’s 325 surface water basins are overused, with a further 50 (15%) highly developed. On the other hand, 60% of Australia’s river basins have less than 30% of the nominated sustainable flow regime diverted (NLWRA 2001c). Almost all of the basins with a high volume of unused sustainable yield are in the northern parts of Australia. Land use in the catchment, combined with how well this use is managed, is a major driver of river condition. In the non-urban regions, most of the elevated nutrient and sediment loads to rivers are a consequence of using land for agricultural production. High fertiliser application rates, and other agricultural practices, have resulted in some landscapes leaking more nutrients into the waterways than they did before the adoption of European agricultural production systems (NLWRA 2001a).

5

6

Year Book Australia 2003

Environmental impacts of agriculture The article of this name looks at the impact of agricultural activities on the Australian environment. In particular it examines land and water use, salinity and the adoption of various land management practices. The combined impacts of land and water use for agricultural production have been substantial. For example: n

The removal of native vegetation and the introduction of exotic species have contributed to the extinction and decline of many species of Australian wildlife (SoE 2001).

n

The construction of dams and diversion of water from rivers have greatly altered water flows, reducing the amount of water flowing down rivers, and have changed the times of peak flows (ABS 2001a).

n

There has been a deterioration of soil and water quality in many areas.

Salinity, sodicity and acidity are all naturally occurring conditions of Australian soils, but these have been exacerbated by agricultural activities. In recent years salinity has gained prominence as a national environmental issue. Early results from the 2001 ABS Agricultural Census show that around 25,000 farmers have salinity and/or are managing salinity on their properties. The proportion of farms reporting managing for salinity is greater than those reporting salinity, an indication that farmers are taking action to prevent or reduce the impact of salinity on agricultural land. The impacts of salinity extend beyond the agriculture sector. Roads, houses and water supply infrastructure can all be degraded by it. Over four states (New South Wales, Victoria, South Australia and Western Australia) the roads, buildings and/or water supply infrastructure of 68 towns are at risk of damage from salinity. Biodiversity is also at risk through the loss and degradation of native vegetation. Across Australia around 630,000 ha of native vegetation and 80 wetlands, including wetlands of international importance, are at risk (NLWRA 2001b).

One factor contributing to salinity is the rise in water tables due to increased amounts of water entering underground water bodies from irrigated land. This ultimately results in increased salt loads entering river systems. Reduced river flows, brought about by the construction of dams, weirs and water diversions, compound the problem as the flow is insufficient to dilute saline groundwater inflows (ABS 1996). Between 1990 and 2000 the area of irrigated land increased by more than half a million ha (30%). The growth in irrigated area was greatest in Queensland, where an additional 236,000 ha (or 76%) were irrigated in 2000, compared to the area irrigated in 1990. Irrigation can also cause a decline in soil structure and water quality, while the method of irrigation used influences the efficiency of water use and impacts on the environment (Smith 1998). Impacts on water quality result from the high levels of fertiliser use in conjunction with some irrigation methods. Continued awareness of the need for greater efficiency and technological advances can be expected to improve land management practices and reduce the decline in the health of land and water assets. For example, there has been a growth in the use of irrigation methods that are more efficient in terms of water delivery. In 2000 around 30% of irrigators reported using spray, micro spray or drip irrigation methods compared to 23% in 1990. The increasing use of more efficient irrigation methods, the implementation of salinity management activities and adoption of other land use practices are an indication that farmers are more aware of the environmental impact of their activities than in the past. Much of the impact on the environment is the result of historical land management decisions, and has taken decades to manifest. The impact of agriculture on the environment can be reduced, and there are a number of community groups and government programs dedicated to achieving this. However, it is likely that the damage already done will take decades to abate and repair.

Towards sustainability — an overview

Australia’s biodiversity Australia is identified as one of 17 megadiverse countries. The loss of biodiversity is considered one of the most serious environmental problems in Australia. Clearing of native vegetation is a significant threat to terrestrial biodiversity. Other threats include invasive species (i.e. pests and weeds), dryland salinity, pollution, nutrient loading and sedimentation of waterways and coastal areas, altered hydrological and fire regimes, and climate change. These processes constitute major threats to sustainable management of our ecosystems and the environment, as well as to the social and economic values of biodiversity. Native vegetation is a key element contributing to Australia’s biodiversity. In 2000, there were 5,251 protected areas in Australia, occupying 61.4 million ha and accounting for 8% of the total land area.

Energy, greenhouse gases and climate change Using Australia’s energy resources prudently and efficiently, and minimising energy-related contributions to greenhouse gas emissions and global warming, are important environmental issues. The sorts of questions which are relevant include the extent to which Australia is energy sufficient, the extent of depletion of our reserves, and whether and how we are managing to reduce the links between economic growth on the one hand and energy use and greenhouse gas emissions on the other. Australia has an abundance of fossil fuel and mineral energy resources which are not being depleted to any great extent by current patterns of use. The rate of energy use and the extent of greenhouse gas emissions appear no longer to be linked to gross domestic product (GDP). The factors underlying this favourable trend include: the continued growth in the dominance of service industries (relatively low users of energy and generators of greenhouse gases) in the economy, the increasing share of natural gas in overall energy use (natural gas produces less greenhouse gases per unit of energy), and continuing, albeit small, gains in how efficiently energy is used by industry and households. The energy intensive export industries, such as heavy manufacturing and natural gas liquefaction,

have a major impact on Australia’s energy use and greenhouse gas emissions. In 1994–95, goods and services produced for export accounted for 29% of energy use, either directly or indirectly.

Energy Chapter 15, Energy shows that Australia has an abundance of energy resources, and our trends of energy production and use are a reflection of this abundance. Australia’s per capita energy consumption is one of the highest in the world, with a heavy reliance on fossil fuels. Between 1990–91 and 1998–99 Australia’s total energy consumption increased by 23%. Over the same period, population increased by just under 10%, and real GDP by over 34%. The aggregate energy intensity (energy consumed per unit of output) of the economy declined by around 9% from 1990–91 to 1998–99, partly due to improved energy efficiency, but mainly due to a change in the structure of the economy towards less energy intensive service industries. Australia is far more dependent on coal for the production of electricity than most Organisation for Economic Co-operation and Development (OECD) countries. The article following the Energy chapter, Renewable energy in 2003, shows that 94% of domestic energy use comes from fossil fuels. In 1999, of the 6% share of total primary energy coming from renewable energy, the major contributors were biomass in the form of bagasse (39%) which was used to generate electricity and steam, wood (39%) which was used primarily for home heating, hydro-electricity (21%) and solar (1%). Renewable energy contributed 11% to electricity generation; most electricity was generated from large-scale hydro-electric schemes (ABARE 1999). Use of natural gas constituted the fastest growing primary energy use over the 20 years 1978–79 to 1998–99. The growth of coal (black and brown) use was also above the overall trend, due primarily to the strong growth in electricity generation over the period. The consumption of crude oil has also grown significantly, reflecting the heavy use of petroleum products in the transport sector. The annual growth in consumption of renewable energy sources has declined over the years (ANZMEC 2001).

7

8

Year Book Australia 2003

Although depletion of fossil fuels is not an important issue for Australia for the foreseeable future, many environmental benefits are to be gained from renewable energy development. Renewable energy, energy efficiency and use of cleaner fossil fuel technologies are key tools in a strategy for sustainable energy use and reductions in greenhouse gas emissions. As well as being perpetually available, renewable energy sources are low pollutants and produce very little or no net greenhouse gas emissions when operating. In Australia, government, industry and community support are driving renewable energy growth, particularly for electricity generation and transport use.

Developed countries are committed to reducing their greenhouse gas emissions by at least 5% from 1990 levels by the period 2008–12. In recognition of the fact that all developed countries have different economic circumstances and differing capacities to make emissions reductions, each developed country has a specific, differentiated target (AGO 2002). Australia has signed (but not ratified) the treaty, which has a target increase for Australia of 8% above 1990 levels by this time. This target includes a one-off benefit from land clearing, where reduced emissions compensate for large increases in transport and power generation.

Greenhouse gas emissions and climate change

The chapter shows that the stationary energy sector (emissions from fuel combustion in energy industries such as the electricity industry) is the biggest contributor of greenhouse gases (graph S4), accounting for 49% of net emissions in 2000, with electricity generation accounting for the majority of this sector’s contributions (264 megatonnes of carbon dioxide equivalents (CO2-e )). Large reductions in emissions have taken place in the forest and land use sector.

Chapter 14, Environment discusses greenhouse gas emissions and climate change. It describes the history behind and targets associated with the Kyoto Protocol (an international treaty under which developed countries have agreed to limit net greenhouse gas emissions).

S4 GREENHOUSE GAS EMISSIONS (CO2-e), By sector Mt CO2-e 300

1990 2000

200

100

0

Stationary(a) Transport Fugitive(b) Industrial

Agric.

Waste F & LUC(c)(d)

(a) Stationary energy. (b) Fugitive emissions from the production and distribution of coal and gas. (c) Estimated emissions from land clearing. These assessments should be treated as indicative only due to high uncertainties in emissions estimates. (d) Forestry and land use change. Source: AGO 2002.

Towards sustainability — an overview

Chapter 1, Geography and climate is followed by an article Climate change, and Chapter 14, Environment also contains some discussion of climate change. The article Climate change discusses natural versus human induced climate change and whether, for example, the recent systematic drying of the south-west corner of Australia is due to some natural long-term fluctuation in (say) the southern ocean or whether it is a manifestation of large-scale geographically-anchored circulation changes forced by enhanced greenhouse warming. It makes the point that, with the current state of knowledge it will be very difficult to provide temperature and climate projections which will be sufficiently reliable to support planning for adaptation over a lengthy timescale (a century). The discussion of climate change in Chapter 14, Environment suggests that one of the key factors causing environmental change is temperature. Australia’s annual average temperatures have increased since 1910. Environmental impacts that may result from increasing temperatures include changed rainfall patterns, effects on vegetation distribution, the ability of areas to support land uses such as agriculture and global phenomena such as rising sea levels. Other changes include more intensive and frequent flooding (which may result in greater property damage and higher rates of erosion) and different trends in tropical cyclone activity.

Impacts of industrial activities and of households Through their behaviour, industries and households have direct and indirect impacts on whether natural resources are used prudently and efficiently, and on the extent of waste and pollution. A number of articles address environmental issues associated with the manufacturing, construction, transport and tourism industries and the behaviour of households. Chapter 19, Manufacturing contains an article Manufacturing and the environment. After agriculture and mining, manufacturing has the next largest environmental impact. This industry: n

consumes considerable natural resources such as energy and water (19% of total primary

energy use and 21% of total secondary energy use in 1997–98; 1% of water used in 1996–97, the sixth highest use) n

disposes of waste into the atmosphere, rivers and oceans, or as landfill (11% of the estimated total particulate emissions reported to the National Pollutant Inventory for 2000–01; 17% of total CO2-e by Australian industries in 1997–98, the second highest source of greenhouse gas emissions after the electricity industry).

Chapter 20, Construction contains two articles, The WasteWise Construction Program and Attitudes of residential builders to energy issues and usage, and is followed by an article Construction and the environment. The first article shows that Australians currently send approximately one tonne of construction and demolition waste per person per year to landfill. This can make up to 40% of landfill and represents a potentially valuable natural resource being wasted. Materials include metals, concrete and bricks, glass, fittings and fixtures from demolished or refurbished buildings, wood and wall panelling. Since its beginnings in 1995 the WasteWise Construction Program has, with the cooperation of five major Australian construction companies, pioneered best practice in waste reduction and recycling. The participating organisations have successfully decreased the amount of their waste going to landfill, in some cases by more than 90%. The second article shows that most builders are also sympathetic to the concept of the ‘clean, green’ home. In 2001–02 the majority of builders surveyed were installing dual flush toilets (99%), ceiling insulation (71%), wall insulation (63%), gas hot water systems (60%) and hot water temperature control (56%). The article Construction and the environment discusses the significant impact on the environment of the construction of residential buildings, commercial buildings and other infrastructure. Direct impacts include use of land, materials and energy, which in turn leads to greenhouse gas emissions and the production of other

9

10

Year Book Australia 2003

wastes. Indirect impacts include the energy consumed in providing building materials and in operating the completed buildings. Chapter 23, Transport is followed by an article Environmental impacts of Australia’s transport system. Topics covered include the use of energy and greenhouse gases by the transport system, the increasing size of the transport task, increases in fuel efficiency, and the impact of transport on wildlife, biodiversity and aquatic environments. A number of indirect impacts of transport are also discussed, such as air pollution and related illnesses, the livability of urban environments and the environmental impacts of the materials used by the transport system. As indicated Chapter 22, Tourism contains an article Sustainable tourism in the Great Barrier Reef Marine Park.

reporting that they sometimes used water saving measures. The main method used by Australian home gardeners was to water either early in the morning or late in the evening when it was cooler. The next two most common practices were to water less frequently but for longer periods (20%), and to use recycled water (18%). The section of the Environment chapter on household waste management found that: n

Australia is among the top 10 solid waste generators within the OECD.

n

The main form of waste disposal in Australia is landfill, which accounts for over 95% of solid waste disposal in some states and territories.

n

The impacts of landfill disposal include: use of land that could otherwise be used for another purpose; potential leachates from toxic wastes; release of methane from the decomposition of organic wastes; and greenhouse gas emissions through the transportation of wastes to landfills, which are mostly on the fringes of cities.

n

Household recycling increased in Australia during the 1990s: in 1992 around 85% of people recycled at least one item of their household waste; by 2000 the vast majority of Australians (97%) practised at least some recycling, with 7% doing so for all recyclable items.

Chapter 14, Environment has sections dealing with households’ views and practices regarding water supply, quality and conservation, and household waste management. The first of these shows that: n

In 2001, 73% of Australians were satisfied with the quality of tap-water for drinking.

n

South Australians were the least satisfied (68%), to the extent that 10% of people indicated they did not drink any tap-water at all.

n

Satisfaction with the quality of tap-water for drinking increased in most states and territories over the 1990s, the exceptions being South Australia and Tasmania.

n

Australian households used 1.8 million megalitres of water in 1996–97, making households the second largest users of water after the agriculture sector.

n

In 2001, 64% of households had a dual flush toilet (up from 55% in 1998), and 35% of households had a reduced flow shower head (up from 32% in 1998).

n

Just over half (58%) of Australian households with a garden reported that they regularly conserve water in the garden, a further 3%

Chapter 15, Energy shows that a majority (about 56%) of Australia’s energy-related greenhouse gases were emitted in the production and consumption of goods and services for the purpose of household final consumption. The consumption of electricity by households indirectly produced the greatest amount of energy-related greenhouse gas emissions (17%). This was followed by direct emissions by households (14%), most of which were due to the consumption of motor vehicle fuels.

Towards sustainability — an overview

References ABARE (Australian Bureau of Agricultural and Resource Economics) 1999, Australian Energy Markets and Projections to 2014–15, Canberra. ABS (Australian Bureau of Statistics) 1996, Australian Agriculture and the Environment, cat. no. 4606.0, ABS, Canberra. ABS 2001a, Australia’s Environment: Issues and Trends, cat. no. 4613.0, ABS, Canberra. ABS 2001b, Australian System of National Accounts, 2000–01, cat. no. 5204.0, ABS, Canberra. ABS 2002a, Australian National Accounts: National Income, Expenditure and Product, June Quarter 2002, cat. no. 5206.0, ABS, Canberra. ABS 2002b, Measuring Australia’s Progress, 2002, cat. no. 1370.0, ABS, Canberra. AGO (Australian Greenhouse Office) 2002, National Carbon Accounting System — factsheet1.doc. Last viewed August 2002, . ANZMEC (Australian and New Zealand Minerals and Energy Council) 2001, Energy Trends: An Analysis of Energy Supply and Use in the National Energy Market — 2000. Newton PW, Baum S, Bhatia K, Brown SK, Cameron AS, Foran B, Grant T, Mak SL, Memmott PC, Mitchell VG, Neate KL, Pears A, Smith N, Stimson RJ, Tucker SN & Yencken D 2001, ‘Human Settlements’, in Australia State of the Environment Report 2001 (Theme Report), CSIRO Publishing on behalf of the Department of the Environment and Heritage, Canberra. NFI (National Forest Inventory) 1998, Australia’s State of the Forests Report, National Forest Inventory, Bureau of Rural Sciences, Canberra. NLWRA (National Land and Water Resources Audit) 2001a, Australian Agricultural Assessment, National Land and Water Resources Audit, Canberra. NLWRA 2001b, Australian Dryland Salinity Assessment 2000, NLWRA, Canberra. NLWRA 2001c, Australian Water Resources Assessment 2000, Surface water and groundwater — availability and quality, National Land and Water Resources Audit, Canberra. NLWRA 2002, Australians and Natural Resource Management, National Land and Water Resources Audit, Canberra. RAC (Resource Assessment Commission) 1993, Coastal Zone Inquiry — Final Report, AGPS, Canberra. Smith DI 1998, Water in Australia, Resources and Management, Oxford University Press, Melbourne. SoE (State of the Environment) 2001, Australia State of the Environment Report 2001, CSIRO Publishing on behalf of the Department of the Environment and Heritage, Canberra. World Commission on Environment and Development (Brundtland Commission) 1987, Our Common Future, Oxford University Press, Oxford.

11

1

Geography and climate Introduction

15

Geography of Australia

15

Position and area

15

Landforms and their history

16

Rivers and lakes

19

Climate of Australia

19

Climatic controls

19

Rainfall and other precipitation

21

Temperature

25

Other aspects of climate

27

Water resources

29

Bibliography

33

Article — Climate change

34

Chapter 1 — Geography and climate

Introduction Geography is the science of the Earth’s form, its physical features, climate and population, and how they relate to each other. The first part of this chapter describes Australia’s land forms and topographic features and how they were formed. The second part describes the island continent’s wide range of climatic conditions. The third part discusses water resources, a major factor in land form and climate which impacts on many aspects of life in Australia. This chapter is followed by an article Climate change.

Geography of Australia Position and area

15

(Cape York, Queensland) and 43° 38¢ south (South East Cape, Tasmania) and between longitudes 113° 09¢ east (Steep Point, Western Australia) and 153° 38¢ east (Cape Byron, New South Wales). The most southerly point on the mainland is South Point (Wilson’s Promontory, Victoria) 39° 08¢ south. The latitudinal distance between Cape York and South Point is about 3,180 km, while the latitudinal distance between Cape York and South East Cape is 3,680 km. The longitudinal distance between Steep Point and Cape Byron is about 4,000 km. The area of Australia is almost as great as that of the United States of America (excluding Alaska), about 50% greater than Europe (excluding the former USSR) and 32 times greater than the United Kingdom. Tables 1.2 and 1.3 show the area of Australia in relation to areas of other continents and selected countries.

Australia comprises a land area of about 7,692,024 square kilometres (see table 1.1). The land lies between latitudes 10° 41¢ south

1.1

AREA, COASTLINE, TROPICAL AND TEMPERATE ZONES Estimated area

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Jervis Bay Territory Australia

Total km2 800 642 227 416 1 730 648 983 482 2 529 875 68 401 1 349 129 2 358 73 7 692 024

Total area % 10.4 3.0 22.5 12.7 33.0 0.9 17.5 <1 <1 100.0

Proportion of total area Length of coastline(a) km 2 137 2 512 13 347 5 067 20 781 4 882 10 953 .. 57 59 736

Tropical zone % .. .. 54 .. 37 .. 81 .. .. 39

Temperate zone % 100 100 46 100 63 100 19 100 100 61

(a) Includes islands. Source: Bureau of Meteorology; Geoscience Australia 2002, Geoscience Australia, Canberra, viewed 22 August 2002, .

16

Year Book Australia 2003

1.2 AREAS OF CONTINENTS ’000 km2

Continents Asia Africa North America South America Antarctica Europe Australia and Oceania Total landmass

44 900 30 300 24 700 17 800 14 000 9 900 8 500 150 100

Source: Encyclopaedia Britannica.

1.3

AREAS OF SELECTED COUNTRIES ’000 km2

The continent can be divided into three parts: n

the Western Plateau

n

the Central Lowlands

n

the Eastern Highlands.

The Western Plateau consists of very old rocks (some over 3,000 million years old), and much of it has existed as a landmass for over 500 million years. Several parts have individual plateau names (e.g. Kimberley, Hamersley, Arnhem Land, Yilgarn). In the Perth area, younger rocks along a coastal strip are separated from the rest by the Darling Fault escarpment. The Nullabor Plain is virtually an uplifted sea floor, a limestone plain of Miocene age (about 25 million years).

COUNTRIES (SEVEN LARGEST) Russia Canada United States of America China Brazil Australia India

17 075 9 971 9 809 9 556 8 512 7 692 3 204

The Central Lowlands stretch from the Gulf of Carpentaria through the Great Artesian Basin to the Murray–Darling Plains. The Great Artesian Basin is filled with sedimentary rocks which hold water that enters in the wetter Eastern Highlands.

SELECTED OTHER COUNTRIES Belarus France Germany Indonesia Japan Kazakhstan Papua New Guinea New Zealand Ukraine United Kingdom

208 547 357 1 919 377 2 717 462 268 604 242

Much of the centre of Australia is flat, but there are numerous ranges (e.g. Macdonnells, Musgrave) and some individual mountains of which Uluru (Ayers Rock) is probably the best known. Faulting and folding in this area took place long ago. The area was worn to a plain, and the plain was uplifted and then eroded to form the modern ranges on today’s plain. In looking at Uluru, one remarkable thing is not so much how it got there, but that so much has been eroded from all around to leave it there.

Source: Encyclopaedia Britannica.

Landforms and their history Australia is the lowest, flattest and, apart from Antarctica, the driest of the continents. Unlike Europe and North America, where some landscapes date back to ‘only’ 20,000 years ago, when great ice sheets retreated, the age of landforms in Australia is generally measured in many millions of years. This fact gives Australia a very distinctive physical geography. Map 1.4 shows the elevation of the Australian continent.

In the South Australian part of the Central Lowlands, fault movements are more recent, and the area can be considered as a number of blocks that have been moved up and down to form a series of ranges (Mt Lofty, Flinders Ranges) and hills (such as the Adelaide Hills), with the down-faulted blocks occupied by sea (e.g. Spencer Gulf) or lowlands including the lower Murray Plains. The Eastern Highlands rise gently from central Australia towards a series of high plateaus, and even the highest part around Mt Kosciuszko (2,228 metres) is part of a plateau. There are a few younger faults and folds, such as the Lake George Fault near Canberra, and the Lapstone Monocline near Sydney.

Chapter 1 — Geography and climate

17

Source: Australian Surveying and Land Information Group, 1996.

Some plateaus in the Eastern Highlands are dissected by erosion into rugged hills, and the eastern edges of plateaus tend to form high escarpments. Many of these are united to form the Great Escarpment that runs from northern Queensland to the Victorian border. Australia’s highest waterfalls (Wollombi on the Macleay, Wallaman Falls on a tributary of the Herbert, Barron Falls near Cairns, and Wentworth Falls in the Blue Mountains) all occur where rivers flow over the Great Escarpment. For most of its length the Great Dividing Range (separating rivers flowing to Central Australia from rivers flowing to the Pacific) runs across remarkably flat country. In eastern Victoria, however, the old plateau has been eroded into separate high plains (such as Dargo High Plain).

The present topography results from a long landscape history which can be started in the Permian, about 290 million years ago, when much of Australia was glaciated by a huge ice cap. After the ice melted, parts of the continent subsided and were covered with sediment to form sedimentary basins such as the Great Artesian Basin. By early Cretaceous times, about 140 million years ago, Australia was already so flat and low that a major rise in sea level divided it into three landmasses as the shallow Cretaceous sea spread over the land. In the following Tertiary times, Australia can be regarded as a landscape of broad swells varied by a number of sedimentary basins (Murray, Gippsland, Eucla, Carpentaria, Lake Eyre and

18

Year Book Australia 2003

other basins). These slowly filled up and some are now sources of coal or oil. The Eastern Highlands were uplifted at about this time. Throughout the Tertiary, volcanoes erupted in eastern Australia. Some individual volcanoes were the size of modern Vesuvius, and huge lava plains covered large areas. Volcanic activity continued up to a few thousand years ago in Victoria and Queensland. Australia’s youngest volcano is Mt Gambier in South Australia, about 6,000 years old. Between 55 and 10 million years ago, Australia drifted across the surface of the Earth as a plate, moving north from a position once adjacent to Antarctica. There have been many changes in the climate of Australia in the past, but oddly these do not seem to be due to changing latitude (associated with global-scale plate movements). Even when Australia was close to the South Pole, the climate was relatively warm and wet, and this persisted for a long time despite changes in latitude. It was probably under this climate that the deep weathered, iron-rich profiles that characterise much of Australia were formed. Aridity only seems to have set in after Australia reached its present latitude, and the northern part was probably never arid. Today a large part of Australia is arid or semi-arid. Sand dunes are mostly longitudinal and are aligned with dominant wind directions associated with the regular passage of high pressure cells (anticyclones). These ‘highs’ rotate anticlockwise and track at about 28° south in winter and 38° south in summer, resulting in predominantly south-east to easterly flows in the north and north-west to westerly flows in the south. Looking down from above, the south-east Trade Winds or ‘Trades’ would be those winds in the top right hand quarter of a hypothetical, stationary ‘high’ centred on the Australian continent. The dunes are mostly fixed now. Stony deserts or gibber plains (covered with small stones or ‘gibbers’) are areas without a sand cover and occupy a larger area than the dune fields. Salt lakes occur in many low positions, in places following lines of ancient drainage. They are often associated with lunettes, dunes formed on the downwind side of lakes. Many important finds of Aboriginal prehistory have been made in lunettes. Despite the prevalence of arid conditions today, real aridity seems to be geologically young, with no dunes or salt lakes older than a million years.

The past few million years were notable for the Quaternary ice age. There were many glacial and interglacial periods (over 20) during this time, the last glacial period occurring about 20,000 years ago. In Tasmania there is evidence of three different glaciations: the last glaciation, one sometime in the Quaternary, and one in the Tertiary. On the mainland there is evidence of only the last glaciation, and the ice then covered only 25 square kilometres, in the vicinity of Mt Kosciuszko. The broad shape of Australia has been influenced over long periods by Earth movements associated with large tectonic processes. However, much of the detail has been carved by river erosion. A significant number of Australia’s rivers, like the Diamantina River, drain inland. While they may be eroding their valleys near their highland sources, their lower courses are filling up with alluvium, and the rivers often end in salt lakes which are dry for most of the time. Other rivers reach the sea, and have dissected a broad near-coast region into plateaus, hills and valleys. Many of the features of the drainage pattern of Australia have a very long history, and some individual valleys have maintained their position for hundreds of millions of years. The salt lakes of the Plateau in Western Australia are the remnants of a drainage pattern that was active before continental drift separated Australia from Antarctica. During the last ice age, sea level was more than 100 metres lower than it is today; the current outer reef area of the Great Barrier Reef would have been the coast at that time. The rivers tended to cut down to the lower level, especially towards the sea. When the sea level rose again, some of the lower valleys were drowned, making fine harbours — like Sydney Harbour — while others tended to fill with alluvium as the sea rose, making the typical lowland valleys around the Australian coast. Coastal geomorphology is also largely the result of the accumulation of sediment in drowned coasts. In some areas, such as Ninety Mile Beach (Victoria) or the Coorong (South Australia), there are beaches made simply from this accumulation. In much of the east there is a characteristic alternation of rocky headland and long beach, backed by plains filled with river and marine sediments. The offshore shape of Australia, revealed in isobath contours, results mainly from the pattern of break-up of the super-continent of which Australia was once a part. In some areas, such as the Great Australian Bight, there is a broad

Chapter 1 — Geography and climate

continental shelf bounded by a steeper continental slope. In other areas, like south-east New South Wales around Merimbula and much of the Tasmanian coastline, the continental shelf is very narrow, sometimes coming to within 20 nautical miles of the coast. The Queensland coast is bounded by a broad plateau on which the Great Barrier Reef has grown in only the last two million years. In South Australia, the continental shelf is grooved by submarine canyons. The Australian landforms of today are thus seen to result from long continued processes in a unique setting, giving rise to typical Australian landscapes, which in turn provide the physical basis for the distribution and nature of biological and human activity in Australia.

Rivers and lakes As can be inferred from the elevation and relief map (map 1.4), the rivers of Australia may be divided into two major classes: those of the coastal margins with moderate rates of fall, and those of the central plains with very slight fall. Of the rivers of the east coast, the longest in Queensland are the Burdekin and the Fitzroy, while the Hunter is the longest coastal river of New South Wales. The longest river system in Australia is the Murray–Darling, which drains part of Queensland, the major part of New South Wales and a large part of Victoria, finally flowing into the arm of the sea known as Lake Alexandrina, on the eastern side of the South Australian coast. The length of the Murray is about 2,520 km, and the Darling and Upper Darling together are also just over 2,000 km long. The rivers of the north-west coast of Australia, for example, the Murchison, Gascoyne, Ashburton, Fortescue, De Grey, Fitzroy, Drysdale and Ord, are of considerable length. So also are those rivers in the Northern Territory, for example, the Victoria and Daly, and those on the Queensland side of the Gulf of Carpentaria, such as the Gregory, Leichhardt, Cloncurry, Gilbert and Mitchell. The rivers of Tasmania have short and rapid courses, as might be expected from the configuration of the land. There are many types of lake in Australia, the largest being drainage sumps from the internal rivers. In dry seasons these lakes finally become beds of salt and dry mud. The largest are Lake Eyre 9,500 square kilometres, Lake Torrens 5,900 square kilometres and Lake Gairdner 4,300 square kilometres.

19

Other lake types are glacial, most common in Tasmania; volcanic crater lakes, predominantly in Victoria and Queensland; fault angle lakes, of which Lake George near Canberra is a good example; and coastal lakes formed by marine damming of valleys.

Climate of Australia The island continent of Australia features a wide range of climatic zones, from the tropical regions of the north, through the arid expanses of the interior, to the temperate regions of the south. Widely known as ‘The Dry Continent’, the landmass is relatively arid, with 80% having a median rainfall less than 600 mm per year and 50% less than 300 mm (the average is 450 mm). Seasonal fluctuations can be large, with temperatures ranging from above 50°C to well below zero. However, extreme minimum temperatures are not as low as those recorded in other continents, due to Australia’s relatively low latitude, the lack of high mountains to induce orographic cooling (which is in the order of –0.6°/100 m increase in elevation) and because of the large expanse of relatively warm surrounding oceans. Although the climate can be described as predominantly continental, the insular nature of the landmass produces modifications to the general continental pattern. Australia experiences many of nature’s more extreme phenomena, particularly droughts, floods, tropical cyclones, severe storms and bushfires.

Climatic controls The generally low relief of Australia is evident in the elevation and relief map (map 1.4). Compared to other continents, Australia causes little obstruction to the atmospheric systems which control the climate. A notable exception is the eastern uplands which modify the atmospheric flow, sometimes causing the ‘Easterly Dip’ which is evident in some surface pressure charts. In the winter half of the year (May–October) anticyclones, or high pressure systems, pass from west to east across the continent and may remain almost stationary over the interior for several days. These anticyclones may be 4,000 km wide and, in the Southern hemisphere, rotate anticlockwise. Northern Australia is thus influenced by mild, dry south-east winds, and southern Australia experiences cool, moist

20

Year Book Australia 2003

westerly winds. The westerlies, and the frontal systems associated with extensive depressions (lows, sometimes called extra-tropical cyclones) travelling over the Southern Ocean, have a controlling influence on the climate of southern Australia during the winter season, causing rainy periods. Periodic north-west cloud bands in the upper levels of the atmosphere over the continent may interact with southern systems to produce rainfall episodes, particularly over eastern areas. Cold outbreaks, particularly in south-east Australia, occur when cold air of Southern Ocean origin is directed northwards by intense depressions having diameters up to 2,000 km. Cold fronts associated with the southern depressions, or with secondary depressions over the Tasman Sea, may produce strong winds and large day-to-day variations in temperature in southern areas, particularly in south-east coastal regions. In the summer half of the year (November–April) the anticyclones travel from west to east on a more southerly track across the southern fringes of Australia, directing easterly winds generally over the continent. Fine, warmer weather predominates in southern Australia with the passage of each anticyclone. Heat waves occur when there is an interruption to the eastward progression of the anticyclone (‘blocking’) and winds back northerly and later north-westerly. Northern Australia comes under the influence of summer disturbances associated with the southward intrusion of warm moist monsoonal air from north of the intertropical convergence zone, resulting in a hot rainy season. Southward dips of the monsoonal low pressure trough sometimes spawn tropical depressions, and may prolong rainy conditions over northern Australia for up to three weeks at a time. Tropical cyclones are strong, well-organised low pressure systems of tropical origin where average surface winds are expected to reach at least gale force (speed equivalent of 63–87 km/h) — gusts can be up to 50% higher than the average. Winds associated with severe tropical cyclones reach at least hurricane force (119 km/h) — the highest wind speed recorded in Australia was 267 km/h, which occurred with Tropical Cyclone Vance (March 1999). Tropical cyclones develop over the seas around northern Australia where sea surface temperatures exceed 26°C in summer. Interestingly, tropical cyclones do not usually form within 5° (or so) north or south of the Equator because the Coriolis Force associated

with the rotation of the Earth is close to zero in this zone and this ‘twist’ is important for cyclone formation. Their frequency of occurrence and the tracks they follow vary greatly from season to season. On average, about three cyclones per season directly affect the Queensland coast, and about three affect the north and north-west coasts. Tropical cyclones approaching the coast usually produce very heavy rain and high winds in coastal areas. Some cyclones move inland, losing intensity but still producing widespread heavy rainfall and, occasionally, moderate to severe damage. The climate of eastern and northern Australia is influenced by the Southern Oscillation (SO), a see-sawing of atmospheric pressure between the northern Australian–Indonesian region and the central Pacific Ocean. This Oscillation is one of the most important causes of climatic variation after the annual seasonal cycle over eastern and northern Australia. The strength of the SO is defined by the Southern Oscillation Index, which is a measure of the difference in sea level atmospheric pressure between Tahiti in the central Pacific and Darwin in northern Australia. At one extreme of the Oscillation, the pressure is abnormally high at Darwin and abnormally low at Tahiti. Severe and widespread drought over eastern and northern Australia generally accompanies this extreme. These conditions generally commence early in the year, last for about 12 months, and have a recurrence period of two to seven years. The above extreme is sometimes immediately preceded or followed by the opposite extreme where pressures at Darwin are abnormally low and those at Tahiti are abnormally high. In this case, rainfall is generally above average over eastern and northern Australia. The SO is linked to sea surface temperatures (SSTs) in the Pacific Ocean. Dry extreme SO years are accompanied by above normal SSTs in the central and/or eastern equatorial Pacific and vice versa. Dry extreme years are called El Niño years (El Niño is ‘baby boy’ in Spanish). Wet extreme years are called La Niña years (La Niña is ‘baby girl’). Continuing research into the El Niño/La Niña phenomenon is revealing the connectivity between atmospheric circulation, SSTs, currents (surface as well as deep currents) and their interaction with the landmasses. An article following the Geography and climate chapter of Year Book Australia 1998 provides further detail.

Chapter 1 — Geography and climate

Rainfall and other precipitation Annual The area of lowest rainfall is in the vicinity of Lake Eyre in South Australia, where the median annual rainfall is only about 100 mm. Another very low rainfall area is in Western Australia in the region of the Giles-Warburton Range, which has a median annual rainfall of about 150 mm. A vast region, extending from the west coast near Shark Bay across the interior of Western Australia and South Australia to south-west Queensland and north-west New South Wales, has a median annual rainfall of less than 200 mm. This region is not normally exposed to moist air masses for extended periods and rainfall is irregular, averaging only one or two days per month. However, in favourable synoptic situations, which occur infrequently over extensive parts of the region, up to 400 mm of rain may fall within a few days and cause widespread flooding.

The region with the highest median annual rainfall is the east coast of Queensland between Cairns and Cardwell, where Happy Valley has a median of 4,436 mm (43 years from 1956 to 2000 inclusive) and Babinda a median of 4,092 mm (84 years from 1911 to 2000 inclusive). The mountainous region of western Tasmania also has a high annual rainfall, with Lake Margaret having a median of 3,565 mm (76 years to 1987 inclusive). The Snowy Mountains area in New South Wales also has a particularly high rainfall. While there are no gauges in the wettest area, on the western slopes above 1,800 metres elevation, runoff data suggest that the median annual rainfall in parts of this region exceeds 3,000 mm. Small pockets with median annual rainfall exceeding 2,500 mm also exist in the mountainous areas of north-east Victoria and some parts of the east coastal slopes. Map 1.5 shows average annual rainfall over the Australian continent.

1.5 AVERAGE ANNUAL RAINFALL

DARWIN

BRISBANE

PERTH SYDNEY

CANBERRA

ADELAIDE

mm 1,500 or more 1,200 – 1,500 900 – 1,200 600 – 900 300 – 600 Less than 300

Source: Bureau of Meteorology.

21

MELBOURNE

HOBART

22

Year Book Australia 2003

Seasonal As outlined earlier, the rainfall pattern of Australia is strongly seasonal in character, with a winter rainfall regime in the south and a summer regime in the north. The dominance of rainfall over other climatic elements in determining the growth of specific plants in Australia has led to the development of a climatic classification based on two main parameters, median annual rainfall and the incidence of seasonal rainfall. Evaporation and the concept of rainfall effectiveness are taken into account to some extent in this classification, by assigning higher median annual rainfall limits to the summer zones than to the corresponding uniform and winter zones. The main features of the seasonal rainfall are: n

marked wet summer (the ‘Monsoon’) and dry winter of northern Australia

n

wet summer and relatively dry winter of south-eastern Queensland and north-eastern New South Wales

n

uniform rainfall in south-eastern Australia — much of New South Wales, parts of eastern Victoria and southern Tasmania

n

marked wet winter and dry summer of south-west Western Australia and, to a lesser extent, much of the remainder of southern Australia directly influenced by westerly circulation (sometimes called a ‘Mediterranean’ climate)

n

an arid area comprising about half the continent extending from the north-west coast of Western Australia across the interior and reaching the south coast at the head of the Great Australian Bight.

Table 1.6 shows the monthly rainfall for all capital cities, as well as for Alice Springs and Davis Base in Antarctica.

Darwin shows the rainfall distribution pattern typical of the wet summer and dry winter seen in far northern Australia, and Brisbane the wet summer/relatively dry winter typical of south-eastern Queensland. By contrast, Adelaide and Perth show the wet winter/dry summer pattern whereas Sydney, Melbourne, Canberra and Hobart show a relatively uniform pattern of rainfall throughout the year. Alice Springs shows a low rainfall pattern throughout the year typical of arid inland areas. Precipitation at Davis Base is mainly as snow, but is measured as water after melting. The pattern reflects the very low precipitation levels on the Antarctic continent.

Rainday frequency A rainday occurs when more than 0.2 mm of rain falls in 24 hours, usually from 9 am to 9 am the next day. The frequency of raindays exceeds 150 per year in much of Tasmania (with a maximum of over 250 in western Tasmania), southern Victoria, parts of the north Queensland coast and in the extreme south-west of Western Australia. Over most of the continent the frequency is less than 50 raindays per year. The area of low rainfall with high variability, extending from the north-west coast of Western Australia through the interior of the continent, has less than 25 raindays per year. In the high rainfall areas of northern Australia, the number of raindays is about 80 per year, but heavier falls occur in this region than in southern regions.

Rainfall intensity The values in table 1.7 represent intensities over only small areas around the recording points because turbulence and exposure characteristics of the measuring gauge may vary over a distance of a few metres. The highest 24-hour falls (9 am to 9 am) are listed in table 1.8. Most of the very high 24-hour falls (above 700 mm) have occurred in the coastal strip of Queensland, where a tropical cyclone moving close to mountainous terrain provides ideal conditions for spectacular falls. The highest annual rainfalls are listed by state/territory in table 1.9.

Chapter 1 — Geography and climate

23

1.6 MONTHLY RAINFALL AND AVERAGE TEMPERATURES, Capital cities, Alice Springs and Davis Base(a) Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

20.2 16.2 23.8 17.9 20.1 15.2 32.5 16.0 27.0 –13.3

22.3 18.9 25.6 20.9 22.4 17.2 33.1 19.2 30.8 –9.1

23.9 21.5 27.3 23.6 25.5 18.8 33.2 22.4 33.6 –2.6

25.6 24.3 28.6 25.5 28.8 20.5 32.5 26.0 35.4 2.3

7.9 5.8 10.0 7.5 8.1 4.5 20.6 0.9 6.1 –20.6

10.1 7.0 12.5 8.8 8.9 5.9 23.1 3.1 10.2 –20.2

13.0 8.5 15.6 10.6 10.2 7.4 25.0 6.0 14.8 –15.4

15.1 10.1 18.0 12.5 12.5 9.0 25.4 8.6 17.9 –7.8

17.3 11.9 19.8 14.4 14.8 10.6 25.3 11.2 20.2 –2.2

80.8 47.2 42.7 50.6 119.5 47.3 5.9 47.2 10.3 7.1

62.2 50.7 34.9 46.8 71.0 39.9 15.6 52.6 8.9 4.5

72.9 58.6 94.4 39.9 46.8 48.2 72.7 65.6 21.8 4.4

82.0 60.1 96.5 24.8 25.4 44.6 139.7 64.5 25.1 2.4

74.9 49.1 126.2 24.3 11.2 56.2 249.4 53.1 36.5 2.0

MEAN DAILY MAXIMUM TEMPERATURE (°C) Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra Alice Springs Davis Base(a)

26.3 26.0 29.1 27.9 31.5 22.3 31.7 27.7 36.2 3.0

26.3 26.6 28.9 28.1 31.8 22.3 31.4 27.0 35.0 –0.4

25.2 23.9 28.1 25.3 29.5 20.6 31.8 24.4 32.6 –5.8

Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra Alice Springs Davis Base(a)

18.6 13.5 20.9 15.7 16.9 11.9 24.8 13.0 21.4 –1.3

18.9 14.1 20.9 16.0 17.4 12.0 24.7 12.9 20.7 –4.6

17.3 12.6 19.5 14.3 15.9 10.6 24.5 10.7 17.5 –11.0

13.9 10.1 16.9 11.6 13.0 8.7 24.0 6.6 12.6 –16.2

Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra Alice Springs Davis Base(a)

100.4 45.7 157.7 17.8 9.1 40.5 425.8 61.5 38.7 1.8

110.6 40.7 171.7 19.0 15.3 36.9 354.0 53.6 43.7 3.7

121.7 38.7 138.5 21.8 15.3 36.5 321.7 52.6 33.6 9.9

106.4 46.6 90.4 36.1 41.1 45.2 101.6 49.5 18.2 9.7

22.8 20.0 26.3 22.0 25.4 18.1 32.6 19.8 27.9 –10.5

19.9 16.5 23.5 18.4 21.5 15.1 32.0 15.3 22.9 –12.8

17.4 13.4 21.2 15.9 18.8 12.8 30.6 12.1 19.8 –12.4

16.9 12.9 20.6 14.9 17.7 12.3 30.4 11.2 19.6 –14.4

18.1 14.2 21.7 15.8 18.3 13.3 31.3 12.9 22.4 –14.1

MEAN DAILY MINIMUM TEMPERATURE (°C) 10.8 8.3 13.8 9.5 10.4 6.5 22.1 3.2 8.4 –19.0

8.4 6.1 10.9 7.6 9.1 4.5 20.0 0.9 5.3 –18.7

6.9 5.2 9.5 6.9 8.1 4.0 19.3 –0.2 4.1 –20.5

MEAN RAINFALL (mm) 98.1 45.6 98.8 55.6 103.9 36.4 21.0 48.6 19.8 11.8

123.0 40.6 71.2 55.1 171.2 29.0 1.2 39.7 14.6 9.2

69.3 36.9 62.6 62.7 162.2 46.5 1.0 42.0 14.2 8.4

(a) Antarctica. Source: Bureau of Meteorology 2002, Bureau of Meteorology, Melbourne, viewed 14 August 2002, .

Thunderstorms and hail A thunderday at a given location is a calendar day on which thunder is heard at least once. The average annual number of thunderdays varies from 88 per year near Darwin to less than 10 per year over parts of the southern regions. Convectional processes during the summer wet season cause high thunderstorm incidence in northern Australia. The generally high incidence of thunderdays (40–60 annually) over the eastern upland areas is caused mainly by orographic uplift of moist air streams.

Hail, mostly of small size (less than 10 mm diameter), occurs with winter–spring cold frontal activity in southern Australia. Summer thunderstorms, particularly over the uplands of eastern Australia, sometimes produce large hail (greater than 10 mm diameter). Large hail capable of piercing light-gauge galvanised iron occurs at irregular intervals and sometimes causes widespread damage.

24

Year Book Australia 2003

1.7

HIGHEST RAINFALL INTENSITIES Period in hours

Station

Adelaide Alice Springs Brisbane Broome Canberra Carnarvon Charleville Darwin (airport) Esperance Hobart Meekatharra Melbourne Mildura Perth Sydney Townsville

Years of complete records 96 46 87 49 40 41 42 42 31 88 42 107 42 45 83 44

Period of record 1897–2000 1951–1998 1911–1998 1948–2000 1937–2000 1956–2000 1953–1999 1953–2000 1963–1998 1911–1999 1953–2000 1873–2000 1953–2000 1946–1992 1913–2000 1953–1999

1

3

6

12

24

mm 59 75 99 157 40 44 48 89 39 28 60 75 53 33 120 131

mm 133 87 142 322 57 64 75 160 50 56 67 91 60 63 191 253

mm 141 109 182 429 67 83 88 214 51 87 81 91 68 87 197 361

mm 141 160 266 470 76 99 118 263 76 117 111 97 68 113 244 482

mm 141 207 327 497 135 121 142 380 86 168 120 130 91 121 340 564

Source: Pluviograph records in Bureau of Meteorology archives.

1.8 HIGHEST DAILY RAINFALLS(a) mm

New South Wales Dorrigo (Myrtle Street) Cordeaux River Victoria Tanybryn Club Terrace Queensland(b) Beerwah (Crohamhurst) Finch Hatton PO South Australia Motpena Nilpena Western Australia Roebourne (Whim Creek) Roebuck Plains Tasmania Cullenswood Mathinna Northern Territory Roper Valley Station Angurugu (Groote Eylandt) Australian Capital Territory Lambrigg

1.9 Date

809 573

21.2.1954 14.2.1898

375 285

22.3.1983 24.6.1998

907 878

3.2.1893 18.2.1958

273 247

14.3.1989 14.3.1989

747 568

3.4.1898 6.1.1917

352 337

22.3.1974 5.4.1929

545 513

15.4.1963 28.3.1953

182

27.5.1925

Station Tallowwood Point Falls Creek SEC(a) Bellenden Ker (Top Station) Aldgate State School Kalumburu Lake Margaret Darwin Botanic Gardens

Year mm 1950 4 540 1956 3 739 2000 12 461 1917 1 853 2000 2 288 1948 4 504 1998 2 906

(a) State Electricity Commission. Source: Bureau of Meteorology.

Snow

(a) The standard daily rainfall period is 9 am to 9 am. (b) Bellenden Ker (Top Station) has recorded a 48-hour total of 1,947 mm on 4–5 January 1979, including 960 mm from 3 pm on the 3rd to 3 pm on the 4th. No observation was made at 9 am on the 4th. Source: Bureau of Meteorology.

NSW Vic. Qld SA WA Tas. NT

HIGHEST ANNUAL RAINFALLS

Generally, snow covers much of the Australian Alps above 1,500 metres for varying periods from late autumn to early spring. Similarly, in Tasmania the mountains are covered fairly frequently above 1,000 metres in these seasons. The area, depth and duration are highly variable. Light snowfalls can occur in these areas at any time of year. In some years, snow falls in the altitude range of 500–1,000 metres. Snowfalls at levels below 500 metres are occasionally experienced in southern Australia, particularly in the foothill areas of Tasmania and Victoria, but falls are usually light and short lived. In some seasons, parts of the eastern uplands above 1,000 metres from Victoria to south-eastern Queensland have been covered with snow for several weeks. On sheltered slopes around Mt Kosciuszko (2,228 metres) small areas of snow may persist through summer, but there are no permanent snowfields.

Chapter 1 — Geography and climate

Temperature Average temperatures Average annual air temperatures range from 28°C along the Kimberley coast in the extreme north of Western Australia to 4°C in the alpine areas of south-eastern Australia. Although annual temperatures may be used for broad comparisons, monthly temperatures are required for detailed analyses. July is the month with the lowest average temperature in all parts of the continent. The months with the highest average temperature are January or February in the south and December in the north (except in the extreme north and north-west where it is November). The slightly lower temperatures of mid-summer in the north are due to the increase in cloud during the wet season. Average monthly maximum and minimum temperatures for all capital cities, and also for Alice Springs and Davis Base in Antarctica, are shown in table 1.6. Temperatures in Darwin in tropical northern Australia are relatively constant throughout the year. In other cities, there is a greater seasonal variation between summer and winter months. The seasonal variation in temperature, as well as the difference between maximum and minimum value in any month, is greater for the inland cities of Canberra and Alice Springs than it is for the coastal cites, where proximity to the ocean moderates temperature extremes.

Average monthly maxima In January, average maximum temperatures exceed 35°C over a vast area of the interior and exceed 40°C over appreciable areas of the north-west. The consistently hottest part of Australia in terms of summer maxima is around Marble Bar in Western Australia (150 km south-east of Port Hedland) where the average is 41°C and daily maxima during summer may exceed 40°C consecutively for several weeks at a time.

25

In July, a more regular latitudinal distribution of average maxima is evident. Maxima range from 30°C near the north coast to 5°C in the alpine areas of the south-east.

Average monthly minima In January, average minima range from 27°C on the north-west coast to 5°C in the alpine areas of the south-east. In July, average minima fall below 5°C in areas south of the tropics (away from the coasts). Alpine areas record the lowest temperatures; the July average low is –5°C.

Extreme maxima The highest extreme maxima in Australia are recorded in two regions: the Pilbara and Gascoyne regions of north-western Western Australia; and a broad belt extending from south-western Queensland across South Australia into south-eastern Western Australia. Many stations in this region have exceeded 48°C. Extreme temperatures in this southern belt are higher than those further north, due to the long trajectory over land of hot north-west winds from northern Australia, and the lower moisture levels in summer compared with northern Australia. Most other stations in mainland Australia, except those near parts of the Queensland or Northern Territory coasts or above 500 metres elevation, have extreme maxima between 43 and 48°C. Most Tasmanian stations away from the north coast have extreme maxima between 35 and 40°C. The lowest extreme maxima are found in northern Tasmania (e.g. 29.5°C at Low Head, near George Town) and at high elevations (e.g. 27.0°C at Thredbo (Crackenback)). While high temperatures are more common inland than they are near the coast, the highest temperatures recorded differ little between the two, except in Queensland, the Northern Territory and northern Tasmania. Notable extreme maxima observed near the coast include 50.5°C at Mardie and 49.1°C at Roebourne in Western Australia, and 49.4°C at Whyalla and 47.9°C at Ceduna in South Australia. Extreme maximum temperatures recorded at selected stations, including the highest recorded in each state/territory, are shown in table 1.10.

26

Year Book Australia 2003

1.10 EXTREME MAXIMUM TEMPERATURES Station

New South Wales Wilcannia Victoria Swan Hill Queensland Cloncurry South Australia Oodnadatta Western Australia Mardie Tasmania Bushy Park Hobart Northern Territory Finke Australian Capital Territory Canberra (Acton)

°C

Date

50.0

11.1.1939

49.4

18.1.1908

53.1

16.1.1889

50.7

2.1.1960

50.5

20.2.1998

40.8 40.8

26.12.1945 4.1.1976

48.3

1 & 2.1.1960

42.8

11.1.1939

Source: Bureau of Meteorology.

1.11

EXTREME MINIMUM TEMPERATURES

Station

New South Wales Charlotte Pass Victoria Mount Hotham Queensland Stanthorpe South Australia Yongala Western Australia Booylgoo Springs Tasmania Shannon Butlers Gorge Tarraleah Northern Territory Alice Springs Australian Capital Territory Gudgenby

°C

Date

–23.0

18.6.1994

–12.8

30.7.1931

–11.0

4.7.1895

–8.2

20.7.1976

–6.7

12.7.1969

–13.0 –13.0 –13.0

30.6.1983 30.6.1983 30.6.1983

–7.5

12.7.1976

–14.6

11.7.1971

Source: Bureau of Meteorology.

Extreme minima

Heat waves

The lowest temperatures in Australia have been recorded in the Snowy Mountains, where Charlotte Pass (elevation 1,760 metres) recorded –23.0°C on 18 June 1994 (table 1.11). Outside the Snowy Mountains, the lowest extreme minima on the Australian mainland are found above 500 metres elevation in the tablelands and ranges of New South Wales, eastern Victoria and southern Queensland. Many stations in this region have recorded –10°C or lower, including –14.6°C at Gudgenby and –14.5°C at Woolbrook. Temperatures below –10°C have also been recorded in central Tasmania. At lower elevations, most inland places south of the tropics have extreme minima between –3 and –7°C, and such low temperatures have also occurred in favoured locations within a few kilometres of southern and eastern coasts, such as Sale (–5.6°C), Bega (–8.1°C), Grove (–7.5°C) and Taree (–5.0°C).

Periods with a number of successive days having a temperature higher than 40°C are relatively common in summer over parts of Australia. With the exception of the north-west coast of Western Australia, however, most coastal areas rarely experience more than three successive days of such conditions. The frequency increases inland, and periods of up to 10 successive days have been recorded at many inland stations. This figure increases to more than 20 days in parts of western Queensland and north-west Western Australia. The central part of the Northern Territory and the Marble Bar–Nullagine area of Western Australia have recorded the most prolonged heat waves. Marble Bar is the only known station in the world where temperatures of more than 37.8°C (100°F) have been recorded on as many as 161 consecutive days (30 October 1923 to 7 April 1924).

In the tropics, extreme minima below 0°C have been recorded at many places away from the coast, as far north as Herberton (–5.0°C). Some locations near tropical coasts, such as Mackay (–0.8°C), Townsville (0.1°C) and Kalumburu (0.3°C) have also recorded temperatures near 0°C. In contrast, some exposed near-coastal locations, such as Darwin, have never fallen below 10°C, and Thursday Island, in the Torres Strait, has an extreme minimum of 16.1°C.

Heat waves are experienced in the coastal areas from time to time. During 11–14 January 1939, for example, a severe heat wave affected south-eastern Australia: Melbourne had a record of 45.6°C on the 13th and Sydney a record of 45.3°C on the 14th. This heatwave also set record high temperatures in many other centres in New South Wales, Victoria and South Australia. The Kimberley district of Western Australia is the consistently hottest part of Australia in terms of annual average maximum temperature. Wyndham, for example, has an annual average maximum of 35.6°C.

Chapter 1 — Geography and climate

Other aspects of climate Frost The frequency of frost, which can cause serious losses of agricultural crops, depends on a number of factors. In coastal areas the relatively warm ocean temperatures ameliorate those on land, while distance from the Equator and elevation above sea level are major cooling influences. In addition, variations in topography can lead to local effects such as the accumulation of cold air in frost hollows. Hence frost hazard is greatest in areas which are away from the coast, are at relatively high elevations and have complex terrain which allows cold air drainage down slopes. Parts of Australia most subject to frost are the eastern uplands from north-eastern Victoria to the western Darling Downs in southern Queensland where there may be more than 10 nights a month with readings of 0°C (or under) for three to five months of the year. On Tasmania’s Central Plateau similar conditions occur for three to six months of the year. Frosts may occur within a few kilometres of the coasts except in the Northern Territory and most of the north Queensland coasts. Frosts may occur at any time of the year over most of Tasmania, large areas of the tablelands of New South Wales and much of inland Victoria, particularly the north-east. Frosts start in April and end in October over most of the interior of the continent, and on the highlands of Queensland as far north as the Atherton Plateau. Minimum temperatures below 0°C can be experienced in most of the subtropical interior in June and July. The median frost period over the continent varies from over 200 days per year in the south-eastern uplands areas south of the Hunter Valley, to none in northern Australia. The annual frost period generally decreases from about 100 days inland to below 50 days towards the coast in the southern regions of the continent, but there is widespread local variation. In Tasmania the frost period exceeds 300 days on the uplands and decreases to 100 days near the coast.

Humidity Australia is a dry continent in terms of the water vapour content or humidity of the air, and this element may be compared with evaporation to which it is related. Moisture content can be expressed by a number of parameters, of which the most commonly known is relative humidity. This can be thought of as the relative evaporating power of the air; when the humidity is low, a wet

27

surface, like our skin, can evaporate freely. When it is high, evaporation is retarded. People can feel this as discomfort or even stress as the body’s ability to perspire (and hence cool) decreases with increasing relative humidity. The combination of high temperature and high humidity is potentially dangerous for people who are active in such conditions. The main features of the relative humidity pattern are: n

Over the interior of the continent there is a marked dryness during most of the year, notably towards the northern coast in the dry season (May–October).

n

The coastal fringes are comparatively moist, although this is less evident along the north-west coast of Western Australia where continental effects are marked.

n

In northern Australia, the highest values occur during the summer wet season (December–February) and the lowest during the winter dry season (June–August).

n

In most of southern Australia the highest values are experienced in the winter rainy season (June–August) and the lowest in summer (December–February).

Global radiation Global (short wave) radiation includes that radiation energy reaching the ground directly from the sun and that received indirectly from the sky, scattered downwards by clouds, dust particles, etc. A high correlation exists between daily global radiation and daily hours of sunshine. On the north-west coast around Port Hedland, where average daily global radiation is the highest for Australia (640 milliwatt hours), average daily sunshine is also highest, being approximately 10 hours. Sunshine is more dependent on variations in cloud coverage than is global radiation, since the latter includes diffuse radiation from the sky as well as direct radiation from the sun. An example is Darwin where, in the dry month of July, sunshine approaches twice that of the wet (cloudy) month of January, but global radiation amounts for the two months are comparable.

Sunshine Sunshine here refers to bright or direct sunshine. Australia receives relatively large amounts of sunshine although seasonal cloud formations have a notable effect on its spatial and temporal distribution. Cloud cover reduces both incoming

28

Year Book Australia 2003

solar radiation and outgoing long wave radiation, and thus affects sunshine, air temperature and other climatic elements on the Earth’s surface. Most of the continent receives more than 3,000 hours of sunshine a year, or nearly 70% of the total possible. In central Australia and the mid-west coast of Western Australia, totals slightly in excess of 3,500 hours occur. Totals of less than 1,750 hours occur on the west coast and highlands of Tasmania; this amount is only 40% of the total possible per year (about 4,380 hours). In southern Australia, the duration of sunshine is greatest about December when the sun is at its highest elevation, and lowest in June when the sun is lowest. In northern Australia, sunshine is generally greatest over the period August to October prior to the wet season, and least over the period January to March during the wet season.

Cloud Seasonal changes in cloudiness vary with the distribution of rainfall. In the southern parts of the continent, particularly in the coastal and low-lying areas, the winter months are generally more cloudy than the summer months. This is due to the formation of extensive areas of stratiform cloud and fog during the colder months, when the structure of the lower layers of the atmosphere favours the physical processes resulting in this type of cloud. Particularly strong seasonal variability of cloud cover exists in northern Australia where skies are clouded during the summer wet season and mainly cloudless during the winter dry season. Cloud coverage is greater near coasts and on the windward slopes of the eastern uplands of Australia and less over the dry interior.

Fog The formation of fog depends on the occurrence of favourable meteorological elements — mainly temperature, humidity, wind and cloud cover. The nature of the local terrain is important for the development of fog and there is a tendency for this phenomenon to persist in valleys and hollows. The incidence of fog may vary significantly over distances as short as one kilometre. Fog in Australia tends to be more common in the south than the north, although parts of the east coastal areas are relatively fog-prone even in the tropics. Incidence is much greater in the colder months, particularly in the eastern uplands. Fog may persist during the day, but rarely until the afternoon over the interior. The highest fog

incidence at a capital city is at Canberra which has an average of 47 days per year on which fog occurs, 29 of which are in the period May to August. Brisbane averages 20 days of fog per year. Darwin averages only two days per year, in the months of July and August.

Winds The mid-latitude anticyclones are the chief determinants of Australia’s two main prevailing wind streams. In relation to the west-east axes of the anticyclones these streams are easterly to the north and westerly to the south. The cycles of development, motion and decay of low-pressure systems to the north and south of the anticyclones result in diversity of wind-flow patterns. Wind variations are greatest around the coasts where diurnal land and sea-breeze effects are important. Orography affects the prevailing wind pattern in various ways, such as the channelling of winds through valleys, deflection by mountains and cold air drainage from highland areas. An example of this channelling is the high frequency of north-west winds at Hobart caused by the north-west to south-east orientation of the Derwent River Valley. Perth is the windiest capital with an average wind speed of 15.6 km/h; Canberra is the least windy with an average wind speed of 5.4 km/h. The highest wind speeds and wind gusts recorded in Australia have been associated with tropical cyclones. The highest recorded gust was 267 km/h at Learmonth, Western Australia on 22 March 1999 (occurring with Tropical Cyclone Vance); gusts reaching 200 km/h have been recorded on several occasions in northern Australia with cyclone visitations. The highest gusts recorded at Australian capitals were 217 km/h at Darwin and 156 km/h at Perth.

Droughts Drought, in general terms, refers to an acute deficit of water supply to meet a specified demand. The best single measure of water availability in Australia is rainfall, although parameters such as evaporation and soil moisture are significant, even dominant in some situations. Demands for water are very diverse, hence the actual declaration of drought conditions for an area will generally also depend on the effects of a naturally occurring water deficit on the principal local industries.

Chapter 1 — Geography and climate

29

Since the 1860s there have been 10 major Australian droughts. Some of these major droughts could be described as periods consisting of a series of dry spells of various lengths, overlapping in time and space, and totalling up to about a decade. The drought periods of 1895–1903 (the so-called ‘Federation drought’), 1958–68, 1982–83 and 1991–95 were the most devastating in terms of their extent and effects on primary production. The latter drought resulted in a possible $5b cost to Australia’s economy, and $590m in drought relief by the Commonwealth Government. The remaining major droughts occurred in 1864–66 (and 1868), 1880–86, 1888, 1911–16, 1918–20 and 1939–45.

draining the interior lowlands into Lake Eyre. This widespread rain may cause floods over an extensive area, but it soon seeps away or evaporates, occasionally reaching the lake in quantity. The Condamine and other northern tributaries of the Darling also carry large volumes of water from flood rains south through western New South Wales to the Murray, and flooding occurs along their courses at times.

In this same period, several droughts of lesser severity caused significant losses over large areas of some states. They occurred in 1922–23 and 1926–29, 1933–38, 1946–49, 1951–52, 1970–72, 1976 and 1997–2000.

Water resources

South-eastern Australia (New South Wales, southern Queensland, Victoria, Tasmania and the settled parts of South Australia) contains about 75% of the nation’s population, and droughts affecting this region have a markedly adverse impact on the economy. There have been nine severe droughts in south-eastern Australia since 1888, and these were encompassed within the major Australian droughts specified above, except for the severe drought in 1972. Drought definitions, and the area of coverage and length of droughts, together with related information, may be obtained from the article Drought in Australia, in Year Book Australia 1988.

Floods Widespread flood rainfall may occur anywhere in Australia, but it has a higher incidence in the north and in the eastern coastal areas. It is most economically damaging along the shorter streams flowing from the eastern uplands eastward to the seaboard of Queensland and New South Wales. These flood rains are notably destructive in the more densely populated coastal river valleys of New South Wales — the Tweed, Richmond, Clarence, Macleay, Hunter and Nepean–Hawkesbury — all of which experience relatively frequent flooding. Although chiefly caused by summer rains, they may occur in any season. The great Fitzroy and Burdekin river basins of Queensland receive flood rains during the summer wet seasons. Much of the run-off due to heavy rain in north Queensland west of the eastern uplands flows southward through the normally dry channels of the network of rivers

Flood rains occur at irregular intervals in the Murray–Murrumbidgee system of New South Wales and Victoria, the coastal streams of southern Victoria and the north coast streams of Tasmania.

Rainfall, or the lack of it, is the most important single factor determining land use and rural production in Australia. The scarcity of both surface water and groundwater resources, together with the low rates of precipitation which restrict agriculture (quite apart from economic factors), has led to extensive programs to regulate supplies by construction of dams, reservoirs, large tanks and other storages. The major topographical feature affecting the rainfall and drainage patterns in Australia is the absence of high mountain barriers. Australia’s topographical features encompass sloping tablelands and uplands along the east coast Main Divide, the low plain and marked depression in the interior, and the Great Western Plateau. Only one-third of the Australian land area drains directly to the ocean, mainly on the coastal side of the Main Divide and inland with the Murray–Darling system. With the exception of the latter, most rivers draining to the ocean are comparatively short, but account for the majority of the country’s average annual discharge. Surface drainage is totally absent from some arid areas of low relief. Australia’s large area (just under 7.7 million square kilometres) and latitudinal range (3,680 km) have resulted in climatic conditions ranging from alpine to tropical. Two-thirds of the continent are arid or semi-arid, although good rainfalls (over 800 mm annually) occur in the northern monsoonal belt under the influence of the Australian–Asian monsoon, and along the eastern and southern highland regions under the influence of the great atmospheric depressions of the Southern Ocean. The effectiveness of the rainfall is greatly reduced by marked alternation of wet and dry seasons, unreliability from year to year, high temperatures and high potential evaporation.

30

Year Book Australia 2003

1.12

AUSTRALIA’S MAJOR GROUNDWATER RESOURCES Major divertible resource

State/territory

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australia

Area of aquifers

Fresh

Marginal

Brackish

Saline

Total

Abstraction during 1983–84

km2 595 900 103 700 1 174 800 486 100 2 622 000 7 240 236 700 5 226 440

GL 881 469 1 760 102 578 47 994 4 831

GL 564 294 683 647 1 240 69 3 380 6 877

GL 431 69 255 375 652 8 43 1 833

GL 304 30 144 86 261 — 10 835

GL 2 180 862 2 840 1 210 2 740 124 4 420 14 376

GL 242 146 962 504 355 5 24 2 238

Source: Australian Water Resources Council, 1987.

The availability of water resources controls, to a large degree, the possibility and density of settlement; this in turn influences the quality of the water through production and disposal of waste. Most early settlements were established on the basis of reliable surface water supplies and, as a result, Australia’s population is concentrated along the coast, mainly in the comparatively fertile, well-watered east, south-east and far south-west. As settlement spread into the dry inland grazing country, the value of reliable supplies of underground water was realised. Observations of the disappearance of large quantities of the rainfall precipitated on the coastal ranges of eastern Australia eventually led to the discovery of the Great Artesian Basin which has become a major asset to the pastoral industry. Development, however, has not been without costs. Significant environmental degradation and deterioration in water quality are becoming evident. Table 1.12 summarises Australia’s major groundwater resources. Permanent rivers and streams flow in only a small part of the continent. The average annual discharge of Australian rivers has been recently assessed at 387 thousand gigalitres, of which 100 thousand gigalitres are now estimated to be exploitable on a sustained yield basis. This is small in comparison with river flows on other continents. In addition, there is a pronounced concentration of run-off in the summer months in northern Australia, while the southern part of the continent has a distinct, if somewhat less marked, winter maximum.

Even in areas of high rainfall, large variability in flow means that, for local regional development, most streams must be regulated by surface storage. However, in many areas evaporation is so great that storage costs are high in terms of yield. Extreme floods also add greatly to the cost of water storage, because of the need for adequate spillway capacity. Table 1.13 provides a broad comparison of rainfall and run-off by continent. Map 1.14 shows the location of Australia’s Drainage Divisions, and table 1.15 summarises Australia’s surface water resources by Drainage Division. The Drainage Division with the highest intensity of run-off is Tasmania with 11.8% of the total from only 0.9% of the area. Conversely, the vast area of the Western Plateau (2,450,000 square kilometres, approximately 32% of Australia) has no significant run-off at all.

1.13

RAINFALL AND RUN-OFF OF THE CONTINENTS

Continent

Africa Asia Australia Europe North America South America

Average yearly rainfall mm 690 600 465 640 660 1 630

Run-off mm 260 290 57 250 340 930

% 38 48 12 39 52 57

km3 7 900 13 000 440 2 500 6 900 16 700

Source: O’Brien WT, McGregor A & Crawshaw B 1983, ‘In-stream and Environment Issues’, “Water 2000: Consultant’s Report No. 9", AGPS, Canberra.

Chapter 1 — Geography and climate

1.14 DRAINAGE DIVISIONS AND RUN-OFF

 

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Source: National Land and Water Resources Audit, 2000.

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31

32

Year Book Australia 2003

1.15

Drainage division

North-East Coast South-East Coast(a) Tasmania(b) Murray–Darling(a) South Australian Gulf(c) South-West Coast Indian Ocean Timor Sea Gulf of Carpentaria Lake Eyre Bulloo-Bancannia Western Plateau Total

SURFACE WATER RESOURCES

Area km2 451 000 274 000 68 200 1 060 000 82 300 315 000 519 000 547 000 641 000 1 170 000 101 000 2 450 000 (d)7 680 000

Mean annual run-off GL 73 411 42 390 45 582 23 850 952 6 785 4 609 83 320 95 615 8 638 546 1 486 387 184

Mean annual run-off % 19.0 10.9 11.8 6.2 0.2 1.8 1.2 21.5 24.7 2.2 0.1 0.4 100.0

Mean annual outflow GL n.a. 40 591 45 336 5 750 797 5 925 3 481 81 461 24 748 n.a. — n.a. ..

Volume diverted GL 3 182 1 825 451 12 051 144 373 12 48 52 7 <1 1 18 147

(a) South-East Coast and Murray–Darling Division. The volume diverted represents the sum of available data (NSW has not reported water use for unregulated surface water management areas). (b) Tasmanian Division. Volume diverted does not include the Hydro scheme diversions. (c) South Australian Gulf Division. Mean annual outflow includes the flow from surface water management areas Willochra Creek and Lake Torrens, which do not flow to the sea, but flow into the terminal lake, Lake Torrens. (d) Total area differs slightly from that in table 1.1, due to improvements in mapping reflected in that table, but not in this table. Source: National Land and Water Resources Audit, 2000.

To summarise, the mean annual run-off across Australia is 387 thousand gigalitres. The portion of run-off able to be diverted for use is very low compared to that in other continents, and results from the high variability of stream flow, high rates of evaporation and the lack of storage sites on many catchments. On an Australia-wide basis, only about a quarter of the divertible resource has currently been developed for use; much of the remaining resource is available in remote regions where development is impractical and uneconomic. In areas such as the Murray–Darling Division, where water is scarce, there are few resources not yet developed, and management is focusing on greater efficiency in water use. Water resources are assessed within a framework comprising four levels: n

The total water resource is the volume of water present in the environment, measured as mean annual run-off for surface water, and mean annual recharge for groundwater.

n

The divertible resource is the portion of run-off and recharge which can be developed for use.

n

The developed resource is the portion of the divertible resource which has been developed for use.

n

Resource utilisation is a measure of the portion of the developed resource which is actually used.

Emphasis is given to the second level of assessment, the divertible resource, as the prime measure of the resource. The divertible resource is defined as the average annual volume of water which, using current technology, could be removed from developed or potential surface water or groundwater sources on a sustained basis, without causing adverse effects or long-term depletion of storages. Australia’s water resources are managed by a large number of resource management agencies, irrigation authorities, metropolitan water boards, local government councils and private individuals. State authorities dominate the assessment and control of water resources as, under the Commonwealth Constitution, primary responsibility for management of water rests with the individual state governments. The Commonwealth Government is responsible for matters relating to the territories, and participates indirectly through financial assistance or directly in the coordination or operation of interstate projects through bodies such as the Murray–Darling Basin Commission. A description of the management, main storage and use of water resources across the states and territories is contained in the chapter Water resources in the 1994 and earlier editions of Year Book Australia.

Chapter 1 — Geography and climate

33

Bibliography Publications Australian Bureau of Statistics, Year Book Australia 1988, article Drought in Australia Australian Surveying and Land Information Group (AUSLIG), in September 2001 merged with AGSO — Geoscience Australia to form Geoscience Australia, the national agency for spatial information Australian Water Resources Council 1987, 1985 Review of Australia’s Water Resources and Water Use, Volume 1: Water Resources Data Set, Department of Primary Industries and Energy, AGPS, Canberra Bureau of Meteorology: 1988, Climatic Averages, Australia, Canberra 1989a, Climate of Australia, Canberra 1989b, Selected Rainfall Statistics, Australia, Canberra 2000, Climatic Atlas of Australia: Rainfall, Canberra Encyclopaedia Britannica National Land and Water Resources Audit, Australian Water Resources Assessment 2000 O’Brien WT, McGregor A & Crawshaw B 1983, ‘In-stream and Environment Issues’, Water 2000: Consultant’s Report No. 9, AGPS, Canberra Parkinson G (ed.) 1986, Climate, Atlas of Australian Resources, Volume 4 Stern H, de Hoedt G & Ernst J 2000, ‘Objective classification of Australian climates’, Aust. Met. Mag. no. 49, pp. 87–96

Web sites ACT Electricity and Water, Bureau of Meteorology, Bureau of Rural Sciences, Department of Natural Resources and Environment, Victoria, Department of Primary Industries, Water and Environment, Tasmania, Geoscience Australia, and National Land and Water Resources Audit, NSW Department of Land and Water Conservation, Power and Water, Northern Territory, Queensland Department of Natural Resources and Mines, South Australia Department of Primary Industry and Resources, Water and Rivers Commission, Western Australia, Western Australia Department of Agriculture,

Climate change This article was contributed by Professor John W Zillman AO. Professor Zillman has been Director of Meteorology since July 1978. He has served as Principal Delegate of Australia to the Intergovernmental Panel on Climate Change since 1994 and has been President of the World Meteorological Organization since 1995.

There is a lot of confusion in the world about climate change. The first purpose of this article is to explain what is meant by ‘climate’ and ‘climate change’ in order to understand why so much of the discourse on the subject seems like the dialogue of the deaf — why the proponents of alternative perspectives still appear to be talking past each other on even very basic issues of climate science and policy; and why it has proved so difficult to achieve consensus on practical strategy for reducing whatever adverse long-term impacts humans may be having on climate and helping the world to prepare for whatever future the global climate system delivers over the coming decades and coming centuries. The second purpose is to look back over the 20th century and show how Australian climate has changed in the past; and then to summarise what can, at present, be said, and what can not be said, about how it might change over the century ahead.

The meaning of climate change We all have an intuitive sense of what we mean by climate. It is both our synthesis of the weather we have experienced in the past and our expectation of what it will be like in the future, at a particular place and time of year. Our recollections of the past are not so much of the monthly or yearly averages of temperature, humidity, cloud, wind and rainfall, but of the impacts on significant occasions in our lives of their hour-to-hour, day-to-day and week-to-week variability; and especially of the extreme events — the severe storms, the gales, the heatwaves and the droughts and floods — from which these long-term averages derive. We remember that we have had both hot and cold summers in the past and we sense that we must expect them again in the future. Those with long memories recall the years of widespread drought in the 1960s just as they do the floods of the 1970s and 1990s. And

there are few Australians over fifty who have not asserted that ‘the weather these days isn’t like it was when I was young’. The statistics of Australia’s meteorological records tend to bear out these subjective impressions and, in a very real sense, the climate has always been changing — from year-to-year, decade-to-decade, and century-to-century. We also know from proxy — mainly geological — evidence that it has been changing also on much longer timescales, from thousands to millions of years, as the Earth moved into and out of the great ice ages of the past before returning to the more benign climates of the present ten-thousand-year-long Holocene ‘interglacial’. Contemporary Earth system science can explain most of the features of present-day climate and how it has changed over time: why the tropics are warm and the polar regions cold; how the ‘greenhouse effect’ of water vapour, carbon dioxide and other trace gases in the atmosphere keeps the Earth’s surface some 70°C warmer than it is 10 km above, where jet aircraft fly, and some 33°C warmer than it would be, on average, if there were no radiatively active gases in the atmosphere; how the large-scale distribution of the continents modifies the north-south overturning of the atmosphere and oceans that is driven by the solar heating of the equatorial belt; and, perhaps most significantly of all, how the instabilities in the jet streams generated by the north-south overturning provide the energy source for most of the day-to-day weather phenomena that make up our climate. Because of the differing natural timescales of the atmosphere and ocean and the strength of the coupling between them, the explanation of the mechanisms of climate involves an integrated scientific understanding of the entire Earth system, consisting of the

Chapter 1 — Geography and climate

atmosphere, the oceans, and the land surface and inland waters and of all the physical, chemical and biological processes that take place within them. If this is the nature and origin of climate, what then do we mean by ‘climate change’? Until a few decades ago, the term ‘climate change’ was mostly taken to mean the major astronomically-induced shifts from ice-age to interglacial on timescales of tens to hundreds of thousands of years or, less usually, systematic change of the long-term (by international convention, 30 years) statistics of the climate elements (temperature, pressure, wind, rain, etc.) sustained for several decades or longer. The situation became greatly confused in the early 1990s as a result of the emerging concern that, in addition to the natural variability of climate on all timescales, the build-up of greenhouse gases in the atmosphere from the burning of fossil fuel and other human activities may be leading to systematic long-term increase of globally-averaged surface temperature (via an enhanced greenhouse effect) and other irreversible changes in climate. With its focus on human interference with the working of the climate system, the United Nations Framework Convention on Climate Change, signed by more than 150 countries at the 1992 Rio Earth Summit, defined climate change as ‘a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’. Thenceforth, to those who speak and listen in the language of the Convention, any statement that climate change is occurring has meant that it is attributable to human activity. The scientific community, however, have taken a different approach. The Intergovernmental Panel on Climate Change (IPCC), the assessment body set up in 1988 by the World Meteorological Organization and the United Nations Environment Programme to provide objective, expert assessment of the state of understanding of the science, impacts and response strategy for climate change, has defined climate change as ‘any change in climate over time whether due to natural variability or as a result of human activity’. It is this (IPCC) usage which is adopted here with the purpose of summarising what can be said about past and future climate change in Australia as a result of both natural variability and human interference with the global climate system.

35

The controls on Australian climate The broad-scale controls on Australian climate are shown schematically in figure S1.1. The two major influences are: n

the north-south overturning of the atmosphere that generates the mid-latitude jet stream and the succession of ‘highs’ and ‘lows’ that move across southern Australia from west to east, bringing the never-ending succession of fronts, troughs, warm northerlies, cold southerlies, rain and fine weather

n

the slow east-west overturning of the atmosphere across the tropical Pacific that is driven by the ocean temperature differences between the warm western Pacific and cool eastern Pacific Ocean, and which fluctuates on an approximately two to seven-year timescale as the central and eastern Pacific warms and cools with the irregular cycle of El Niño and La Niña events.

In El Niño years, when the central and eastern Pacific are warm, the ascent and cloudiness over the western Pacific are suppressed and there is a lower probability of rain-bearing systems affecting northern and eastern Australia. La Niña events, on the other hand (which are characterised by an unusually cold eastern Pacific and a warm western Pacific), usually mean a higher probability of rain-bearing systems and flooding over northern and eastern Australia.

Climate change over the past century The 20th century witnessed some major fluctuations and trends in Australian temperature and rainfall as well as in a host of other characteristics of Australian climate. Graph S1.2 shows the annual mean temperature averaged across Australia on the basis of a network of high-quality observing stations and presented in terms of anomalies (departures) from the 1961–90 ‘normal’. It is evident that, with the notable exception of 2000 and 2001, most years of the past two decades have been above the 1961–90 normal and approximately half a degree warmer than the average for the first half of the century. The general warming trend over

36

Year Book Australia 2003

the 20th century is evident in both summer and winter temperatures as well as in daily maxima and minima, with night-time minimum temperatures generally rising faster than daytime maxima. The distinct warming trend of the past half-century, evident in graph S1.2 which is of the same general magnitude as the observed globally-averaged warming described in the recent Third Assessment Report of the IPCC (IPCC 2001a) is not, however, uniform across

Australia, as can be seen in map S1.3. Whereas parts of Queensland have warmed by more than one degree over the past 50 years (with the greatest warming evident in the night time minima), parts of New South Wales and Victoria and large areas of north-west Australia have experienced only minimal warming, or have actually cooled, over the period.

S1.1 LARGE-SCALE CONTROLS ON AUSTRALIAN CLIMATE

Note: The solar heating of the tropics drives the north-south (Hadley) overturning of the atmosphere (shown schematically on the left), which generates the meandering westerly jet stream (wind speed cross section shown on the right with wind speeds of a few hundred km per hour in the jet core) and the migratory weather-producing lows and highs of the middle latitudes. The east-west (Walker) circulation of the tropics is driven primarily by the temperature differences between the warm western and cool eastern Pacific Ocean. Its season-to-season and year-to-year fluctuations (and occasional reversal) exert a major influence on the occurrence of cloud and rain producing systems in Australian longitudes.

S1.2 CHANGES OF ANNUAL MEAN TEMPERATURE

Temperature anomaly (°C)

1.0

0.5

0.0

-0.5

-1.0 Based on 1961–1990 normal

-1.5 1910 1920

1930

1940

1950

1960

1970

1980

1990

2000

Note: The changes of annual mean temperature (°C) averaged over Australia since 1910. Temperatures are shown as departures from the 1961–90 ‘normal’.

Chapter 1 — Geography and climate

37

S1.3 AVERAGE TREND IN ANNUAL MEAN TEMPERATURE (°C/10 yrs) — 1950–2001

Note: Pink and red areas have experienced average warming over the period while blue areas have experienced a cooling trend.

The long-term record of area-average rainfall over Australia is shown in graph S1.4, which highlights the large year-to-year and decade-to-decade variability of rainfall with long, dry periods following Federation and again in the 1920s, 1930s, 1940s and 1960s, and above-average rain in the mid 1950s and 1970s and for most of the past decade. While there is a very slight long-term trend towards increased rainfall for Australia as a whole, the pattern is highly variable from region to region and, over the past 50 years, most of central and north-west Australia has got wetter, while south-west Western Australia, Victoria and much of New South Wales and Queensland have got drier (map S1.5).

The cause of the observed change Much of the Australian and international climate research effort over recent decades has been aimed at developing sufficiently reliable models of the global climate system to enable scientists to find out how much of the observed change over the past century is the result of various forms of natural variability and how much can be attributed confidently to the influence of human activities; and then to use those models to provide an indication as to how climate might evolve over the next century, both as a result of natural processes and in response to human influences through greenhouse gas emissions or in other ways.

38

Year Book Australia 2003

S1.4 MEAN ANNUAL RAINFALL 900 800

Rainfall (mm)

700 600 500 400 300 200 100 0

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

Note: It is evident that, for the country as a whole, the rainfall has changed markedly from year-to-year and decade-to-decade, with the very wet years of the 1970s and over the period 1997–2001 suggesting a slight long-term trend towards a wetter Australia.

At the global level, the IPCC, in its Third Assessment Report, has concluded, on the basis of the longer and more closely scrutinised temperature record and new model estimates of both natural variability and climate system response to forcing by natural processes (e.g. volcanoes and changes in solar output) and human influences (especially emission of greenhouse gases and aerosols), that ‘there is new and stronger evidence that most of the warming observed over the last 50 years is attributable to human activities’ (IPCC 2001a). Although it is more difficult to demonstrate on a sound scientific basis and there may still be extraneous influences (e.g. from the so-called ‘urban heat island’ effect) in even the high quality data sets on which graph S1.2 is based, there appears to be good reason to believe that the overall warming trend over Australia over the past half century is also largely a result of enhanced greenhouse warming. It is almost impossible, however, to separate out the effect of human influence from natural factors on smaller space and time scales in, say, explaining why Queensland has warmed more than parts of New South Wales (map S1.3). In the absence of any convincing basis for attribution of the geographic pattern of warming to human influence (albeit some plausible physical hypotheses have been

advanced), the presumption must be in favour of natural processes as the primary explanation of the spatial variability of the observed rate of warming over Australia. It is impossible to determine, with any confidence, at this stage whether the spatial pattern of trend in rainfall (map S1.5) is the product of processes associated with natural large-scale and long-term fluctuations in the oceanic and atmospheric circulation of the Southern Hemisphere (the so-called Antarctic circumpolar wave, natural long-term variability of the El Niño–Southern Oscillation mechanisms or the like) or whether the circulation changes causing these patterns of rainfall trend (and at least part of the associated pattern of temperature trends) are an early manifestation of the systematic shifts in climate patterns that some global climate models suggest should be expected from the build-up of atmospheric greenhouse gas concentrations over the past century. Some features of the pattern (drying in south-west Western Australia and Victoria) are, however, broadly consistent with the majority of presently available model projections under an enhanced greenhouse warming scenario.

Chapter 1 — Geography and climate

39

S1.5 AVERAGE TREND IN TOTAL RAINFALL (mm/10 yrs) — 1950–2001

Note: The average trend (mm/decade) in annual total rainfall over Australia over the past half century, showing the strong trend towards wetter conditions over north-west Australia and a drying trend over much of eastern Australia and the southwest corner.

Impacts of climate change Considerable research has been carried out over the past century on the impacts of climate change on the Australian environment, economy and way of life (Gibbs 1978; Pittock et al. 1978; Maunder 1989); and in particular on Australian water resources and agriculture. One of the most important components has been the work on assessment of the probability and return periods of extreme rainfall events of various magnitude for design of dams and other long-term water resource-related infrastructure. The Australasian chapter of the IPCC Special Report on Regional Impacts of Climate Change (IPCC 1998) and the corresponding section of the Third Assessment Report on Impacts, Adaptation and Vulnerability (IPCC 2001b) provide an overview of present knowledge of both past and

prospective impacts of climate change in such sectors as water supply, ecosystems and conservation, food and fibre, settlements and industry, and human health. It is clear from the experience of the past century that the challenge of living with climate change in Australia has not so much been that of adapting to long-term trends resulting from human activity, but rather that of planning and managing for the large natural year-to-year and decade-to-decade variability of rainfall and other characteristics of Australian climate. The lessons learned from this experience will be critical to the 21st century challenge of living with whatever human-induced long-term change is superimposed on the continuing natural variability.

40

Year Book Australia 2003

Modelling anthropogenic climate change The major challenge faced by climate scientists, called on to advise policymakers on how increasing anthropogenic emissions of carbon dioxide and other greenhouse gases will affect future global and regional climate, focuses on the construction of sufficiently soundly-based and demonstrably reliable global climate models to simulate how the real atmosphere and ocean would respond to a range of possible future emissions of greenhouse gases and aerosols through the 21st century. The IPCC’s Third Assessment Report (IPCC 2001a, b) has indicated that some 20 to 30 models around the world have reached a sufficient level of sophistication and reliability to justify confidence in their assessment of the sensitivity of the large scale features of global climate (global mean temperature, rainfall etc.) to increasing greenhouse gas emissions, but that it is still not possible to attach much confidence to the models’ projections of the anthropogenic component of climate change at the regional level. The use of these climate models to explore possible future anthropogenic climate change is based on the rigorous, but widely misunderstood, methodology of feeding a range of emission scenarios (not predictions) into atmospheric chemistry models to produce concentration scenarios (not predictions) which are then used, in turn, to produce corresponding projections (not predictions) of how the enhanced greenhouse effect would be expected to modify the real climate. This methodology avoids the impossible task of trying to predict a future which would itself be significantly influenced by society’s response to the prediction. It enables us to gain an understanding of the sensitivity of the global climate system to increasing (or decreasing) emissions without making any assumption about the actual likelihood of one future emission profile relative to another. A schematic summary of the global warming and sea level projections for the 21st century included in the IPCC’s Third Assessment Report (IPCC 2001a) is shown in graph S1.6.

The current state of knowledge The current state of the science of climate change is reported comprehensively in the Third Assessment Report (IPCC 2001a). The key conclusions, which the IPCC includes in its Summary for Policymakers, are the following:

n

An increasing body of observations gives a collective picture of a warming world and other changes in the climate system.

n

Emissions of greenhouse gases and aerosols due to human activities continue to alter the atmosphere in ways that are expected to affect the climate.

n

Confidence in the ability of models to project future climate has increased.

n

There is new and stronger evidence that most of the warming observed over the last 50 years is attributable to human activities.

n

Human influences will continue to change atmospheric composition throughout the 21st century.

n

Global average temperature and sea level are projected to rise under all IPCC SRES (Special Report on Emissions Scenarios) scenarios.

n

Anthropogenic climate change will persist for many centuries.

Despite the exhaustive process of peer review and the IPCC policy of explicitly identifying areas of uncertainty and disagreement in its reports, there is a substantial body of sceptical literature taking issue with its main conclusions (e.g. Lomborg 2001). While much of this appears to be based on misunderstanding of the IPCC reports (e.g. confusion between the IPCC and Convention definitions of ‘climate change’, failure to understand the significance of the difference between scenarios, projections and predictions and even failure to understand the implications of the basic physics of the greenhouse effect), other critics have focused on perceived inconsistencies in the observational record and the various well-known sources of uncertainty in physical processes and model limitations1. While it is expected that the Fourth Assessment Report, due in 2006–07, will bring both new confidence and new sources of uncertainty, the conclusions of the Third Assessment Report remain the most up-to-date and most reliable summary of the state of knowledge of the science of climate change (Zillman 2001).

Chapter 1 — Geography and climate

41

S1.6 MODELLED SENSITIVITY OF GLOBAL MEAN TEMPERATURE AND SEA LEVEL TO GREENHOUSE GAS EMISSIONS

Note: The graphs show, for a wide range of emission scenarios (the lowest, highest and two ‘illustrative’ scenarios — A1FI (fossil intensive) and B1 (clean technology) — published in the IPCC Special Report on Emission Scenarios (SRES) (IPCC 2000)), the carbon dioxide emission profiles to 2100 (bottom left), the resulting carbon dioxide concentrations (top left), the model projections of global mean temperature rise (top right) and sea level rise (bottom right). The temperature panel provides an indication of the range of uncertainty of the projections resulting from the different climate sensitivities of the individual models (pink shading) as well as the model mean projections for the A1FI and BI scenarios and the envelope of climate change projections associated with the envelope of emission scenarios included in the IPCC Report.

Future climate change over Australia By contrast with short-term weather prediction which has achieved increasingly high levels of skill over the past 50 years, climate prediction is still in its infancy as a science (WMO 2002). While a number of empirical systems for assessing the probability of above or below normal rainfall and temperature are employed operationally (e.g. by the National Climate Centre of the Commonwealth Bureau of Meteorology) for producing usefully skilful seasonal climate outlooks, and coupled atmosphere–ocean models are now available which can predict the broad evolution of ocean temperature and other climate patterns for six to twelve months ahead, most of the forecast skill runs out beyond a year or so and it is not possible to indicate likely

climate patterns, either globally or for individual geographic regions, with much confidence on longer timescales. Given contemporary understanding of the mechanisms of global and regional climate, the most confident statement that can be made about the next decade and the next century is that Australia must expect to continue to experience the major El Niñoand La Niña-associated multi-year fluctuations of temperature and rainfall which have earned it its reputation for climate extremes and its image as a land of ‘droughts and flooding rains’. There is, as yet, no sound scientific basis for predicting any specific change to this year-to-year and decade-to-decade variability, which must be expected to continue to be the dominant climatic influence on Australia’s environment, economy and way of life. But it

42

Year Book Australia 2003

is certainly possible that some large-scale fluctuation, outside the range of experience of the past two hundred years of instrumental records, will manifest itself in Australian climate patterns over the next century.

concentrations and greater warming than B2) for summer and winter (table S1.7), it seems that little can be said, with any confidence, about future climate change on the scale of the individual states of Australia at this stage.

The next most confident thing that we can say about future climate change in Australia is that there seems likely to be a general warming trend, as a result of the inevitable continued build-up of greenhouse gases in the atmosphere, of up to perhaps a few degrees over the century, superimposed on whatever temporal and spatial change (including short-term variability) occurs as a result of natural processes. While the IPCC Third Assessment Report (IPCC 2001a) has indicated that, for the full range of greenhouse gas emission scenarios considered by the IPCC, and allowing for uncertainties in the climate models ‘the globally averaged surface temperature is projected to increase by 1.4 to 5.8°C over the period 1990 to 2100’ and that ‘it is very likely that nearly all land areas will warm more rapidly than the global average’, it is clearly not possible, at this stage, to know how actual emissions will increase (or decrease) over the next hundred years, and therefore how large will be the globally averaged temperature rise due to enhanced greenhouse warming. It is even more difficult, given the possibility of significant rearrangement of the large-scale circulation (e.g. through changes in the behaviour of the El Niño–La Niña cycle) to predict the actual temperature rise (and any associated change in rainfall) over Australia as a whole. And it is quite impossible, given all these uncertainties and the still substantial limitations of the climate models, to indicate what the enhanced greenhouse effect might mean by way of regional changes of rainfall patterns for the individual states and territories. While the IPCC Third Assessment Report (IPCC 2001a) includes some broad indications of the extent and nature of inter-model consistency in the projections of temperature and rainfall trends for northern Australia (north of 28ºS) and southern Australia separately, for two different SRES emission scenarios (A2 and B2 which fall broadly within the envelope of the A1FI and B1 scenarios of graph S1.6, with A2 producing larger

While other, higher resolution, assessments have been undertaken for a range of global emission scenarios and using a number of different models to indicate the corresponding range of projected changes in regional climate (e.g. Whetton et al. 2002), which provide a basis for sensitivity studies as an aid to planning for adaptation to future climate, these regional model projections should not be interpreted as predictions of the human-induced component of future climate change and certainly not as predictions of future climate. It may still be decades before that is likely to be done with confidence, and it is not yet possible to say whether it will ever be done with reliability.

The challenges ahead The attribution of observed climate change to human activities and the projection of human impacts on future climate are likely to remain controversial, but progress in both areas will be essential to planning for efficient adaptation to future climate. Until, for example, we know whether the recent systematic drying of the south-west corner of Australia (Indian Ocean Climate Initiative Panel 2002; see also map S1.5) is due to some natural long-term fluctuation in (say) the southern ocean — in which case we would expect rainfall to increase again in the future; or whether it is a manifestation of large-scale geographically-anchored circulation changes forced by enhanced greenhouse warming — in which case we would expect the drying trend to continue — it will be very difficult to provide a reliable basis for planning for adaptation on the century timescale. The importance and urgency of better monitoring and modelling of Australian climate cannot be overstated.

Chapter 1 — Geography and climate

S1.7

43

INTER-MODEL CONSISTENCY OF THE PROJECTIONS OF FUTURE TEMPERATURE AND RAINFALL CHANGE — Northern and southern Australia Summer

Scenario

Winter

Temperature

Rainfall

Temperature

Rainfall

Northern Australia A2 B2

0 0

0 0

+ +

– –

Southern Australia A2 B2

0 0

+ 0

0 0

– –

Note: A summary of inter-model consistency of the projections of future temperature and rainfall change separately for northern Australia (north of 28ºS) and southern Australia for the IPCC A2 and B2 emission scenarios. The results are from nine models used by the IPCC. A ‘0’ means that there is little consistency between models on the size or sign of the projection. In the case of temperature, this means that the model projected regional warming may be either above or below the model projected global warming and, in the case of rainfall, it means that some models project a rainfall increase and others a rainfall decrease. A ‘+’ means that at least seven of the nine models agree on greater than global average warming (for the model concerned) or a small projected rainfall increase (between 5 and 20%). Similarly a ‘–’ sign means that at least seven of the nine models agree on a small (between 5% and 20%) decrease in rainfall.

Endnote 1. Chapter 14, Environment refers to even more recent concerns raised about some of the underlying assumptions associated with the scenarios outlined in the Third Assessment Report (ed.).

References Gibbs WJ 1978, The Impact of Climate on Australian Society and Economy, CSIRO Division of Atmospheric Physics, 44 p. Indian Ocean Climate Initiative Panel 2002, Climate variability and change in southwest Western Australia, Department of Environment, Water and Catchment Protection (Western Australia) (in press). IPCC 1998, The Regional Impacts of Climate Change: An Assessment of Vulnerability, A Special Report of the Intergovernmental Panel on Climate Change (RT Watson, MC Zinyowera, RH Moss & DJ Dokken (eds)), Cambridge University Press, 516 p. IPCC 2000, Emission Scenarios, A Special Report of Working Group III of the Intergovernmental Panel on Climate Change, (N Nakicenovic et al. (eds)), Cambridge University Press, 599 p. IPCC 2001a, Climate Change 2001: The Scientific Basis, Contribution of Working Group I to the Third Assessment Report of the Intergovernmental Panel on Climate Change, (JT Houghton, Y Ding, DJ Griggs, M Noguer, PJ van der Linden, X Dai, K Maskell & CA Johnson (eds)), Cambridge University Press, 881 p. IPCC 2001b, Climate Change 2001: Impacts, Adaptation and Vulnerability, Contribution of Working Group II to the Third Assessment Report of the Intergovernmental Panel on Climate Change, (IJ McCarthy, OF Canziani, NA Leary, DJ Dokken & KS White (eds)), Cambridge University Press, 1032 p. Lomborg B 2001, The Sceptical Environmentalist, Cambridge University Press, Cambridge, 515 p. Maunder WJ 1989, The Human Impact of Climate Uncertainty, Routledge, London & New York, 170 p. Pittock AB, Frakes LA, Jenssen D, Peterson JA & Zillman JW 1978, Climate Change and Variability — a Southern Perspective, Cambridge University Press, Cambridge, 455 p. Whetton PH, Suppiah R, McInnes KL, Hennessy KJ & Jones RN 2002, Climate Change in Victoria: High Resolution Regional Assessment of Climate Impacts, CSIRO and Department of Natural Resources and Environment, 44 p.

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Year Book Australia 2003

WMO 2002, WMO Statement on the scientific basis for, and limitations of, weather and climate forecasting, Abridged Report with Resolutions, Fifty-fourth Session of the WMO Executive Council, Geneva, 2002. Zillman JW 2001, ‘The IPCC Third Assessment Report on the Scientific Basis of Climate Change’, Australian Journal of Environmental Management, 8, pp. 43–59.

2

Government This chapter was contributed by the Department of the Parliamentary Library of the Parliament of the Commonwealth of Australia.

Introduction

47

The constitutional basis of government

47

Commonwealth Constitution

47

The Sovereign

47

The Governor-General

48

Powers and functions

48

Holders of office

48

The Commonwealth Parliament

48

The powers of Parliament

48

The functions of Parliament

48

The Commonwealth Government

49

Prime Minister

49

Ministers

49

Cabinet

51

The Australian Public Service

51

Commonwealth elections

52

Franchise

52

Parliamentary terms

53

Electorates

53

2001 election

54

State government

56

State governors

56

State parliaments

56

Territory government

58

Self-governing

58

Non–self governing

58

Local government

58

Political parties

59

The party system

59

Parties and Parliament

59

National anthem and colours of Australia

59

Reference notes

60

Bibliography

61

Article — Should the House of Representatives have four-year terms?

62

Chapter 2 — Government

47

Introduction

Commonwealth Constitution

Australia has a federal system of government within which there are four divisions: Commonwealth, state, territory and local government.

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

This chapter outlines the basic features of the Australian system of government, including:

Amendment of the written Commonwealth Constitution is by Act of Parliament followed by public referendum. Any proposed law for the alteration of the Constitution must be passed by an absolute majority of each House of Parliament (except in circumstances specified in Section 128 of the Constitution which permits a referendum to proceed if passed by only one chamber). It must also be submitted to a referendum of the electors in each state and territory. An amendment must be approved by a majority of the voters in a majority of the states and by a majority of all voters.

n

the constitutional basis of government

n

the Sovereign

n

the Governor-General

n

the Commonwealth Parliament

n

the Commonwealth Government

n

the Australian Public Service

n

Commonwealth elections

n

state government

n

territory government — self-governing

n

territory government — non–self governing

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

n

local government

1906 — election of senators

n

the party system.

It also provides details of the Commonwealth ministry, and of the state and territory political leaders.

1910 — state debts 1928 — state debts 1946 — social services

The chapter concludes with an article Should the House of Representatives have four-year terms?

1967 — Aboriginal people 1977 — Senate casual vacancies

The constitutional basis of government Australia is a constitutional democracy based on a federal division of powers. The constitutional basis of government consists of: n

the Commonwealth Constitution, including amendments made to that Constitution

n

legislation passed by the Commonwealth Parliament and the state and territory parliaments

n

High Court judgments

n

state and territory Constitutions, including amendments

n

significant conventions of responsible government adopted from the system of government in use in the United Kingdom (the ‘Westminster’ system) that are in use at both the Commonwealth and state levels of government.

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 (for state and territory government, see later sections).

The Sovereign Since 7 February 1952, the Australian Sovereign has been Queen Elizabeth the Second. 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.

48

Year Book Australia 2003

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

Powers 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: n

appoint times for holding the sessions of the Parliament

n

prorogue Parliament

n

dissolve the House of Representatives

n

cause writs to be issued for general elections of members of the House of Representatives

n

assent in the Queen’s name to a proposed law passed by both houses of the Parliament

n

choose and summon executive councillors, who hold office during the Governor-General’s pleasure

n

appoint ministers of state for the Commonwealth of Australia.

In addition, the Governor-General, as the Queen’s representative, is Commander-in-Chief of the Defence Forces. 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 of the Australian territories. The Governor-General also has 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.

Holders of office The present Governor-General is His Excellency the Right Reverend Dr Peter John Hollingworth, AO, OBE. Those persons who have held the office of Governor-General from the inception of the Commonwealth of Australia until 1988 are pictured in Year Book Australia 1988. Pictures of all holders of the office can be found in the

Government section of Australia Now on the ABS web site .

The Commonwealth Parliament Commonwealth legislative power is vested in the Commonwealth Parliament, comprising the House of Representatives (150 members) and the Senate (76 members).

The 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 one of the most powerful upper houses in the world. Australia having a federal system means that the powers of the Commonwealth Parliament are limited to areas of national importance. Among the powers granted by the Constitution are trade and commerce, taxation, postal services, foreign relations, defence, immigration, naturalisation, quarantine, currency and coinage, weights and measures, copyright, patents and trade marks. High Court decisions and Commonwealth–state agreements have seen the Commonwealth gain influence in regard to various matters including industrial relations, financial regulation, companies and securities, health and welfare, and education.

The functions of Parliament Parliament has five primary functions: n

to provide for the formation of a government

n

to make the law

n

to provide a forum for popular representation

n

to scrutinise the actions of government

n

to provide a forum for the alternative government.

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 coalition of parties wins a majority of seats, resulting in the formation of a new government. The Prime Minister always sits in the House of Representatives.

Chapter 2 — Government

The Hon. JW Howard, MP (Liberal Party of Australia) has been Prime Minister since March 1996.

The Commonwealth Government

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; private members’ legislation is rare.

Prime Minister

The representation of the people is an important role of members of the House of Representatives and senators. Looking after 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. During the 1990s the Parliament averaged 64 sitting days per year. The scrutiny function is seen most obviously in the formal periods of Question Time, in both houses, that are a 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 a range of parliamentary committees which are established in order that Parliament’s legislative, inquiry and scrutiny functions can be carried out more 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. In Westminster system 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. The Hon. SF Crean, MP (Australian Labor Party) has been Leader of the Opposition since November 2001.

49

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 incoming Prime Minister then goes about the process of finding members of his or her parliamentary party or coalition to serve as ministers in the Government. The office of Prime Minister is not recognised by the formal Constitution, being a conventional part of the constitutional arrangements. The Prime Minister has the following powers: n

nominates the Governor-General

n

is the sole source of formal advice for the Governor-General

n

advises the Governor-General when Parliament should be dissolved

n

has responsibility for setting the date for House of Representatives elections

n

allocates positions in the Cabinet

n

is chairperson of Cabinet.

Ministers It is customary for all ministers to be members of parliament, and if a minister is not, it is obligatory for that minister to become an MP within three months of his/her appointment. Reshuffles of the ministry may occur at any time between elections. Ministers are invariably members of the same party or coalition as the Prime Minister. The 56 Commonwealth ministries since Federation are listed in table 2.1. In most cases, new governments are formed after general elections have been held to determine the composition of the House. 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.

50

Year Book Australia 2003

2.1 Number of Ministry 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

Ministry Barton Deakin Watson Reid–McLean Deakin Fisher Deakin Fisher Cook Fisher Hughes Hughes Hughes Hughes Bruce–Page Scullin Lyons Lyons Page Menzies Menzies Menzies Fadden Curtin Curtin Forde Chifley Chifley Menzies Menzies Menzies Menzies Menzies Holt Holt McEwen Gorton Gorton Gorton McMahon Whitlam Whitlam Fraser Fraser Fraser Fraser Fraser Hawke Hawke Hawke Hawke Keating Keating Howard Howard Howard

COMMONWEALTH MINISTRIES SINCE 1901

Period of office 1 January 1901 to 24 September 1903 24 September 1903 to 27 April 1904 27 April 1904 to 17 August 1904 18 August 1904 to 5 July 1905 5 July 1905 to 13 November 1908 13 November 1908 to 2 June 1909 2 June 1909 to 29 April 1910 29 April 1910 to 24 June 1913 24 June 1913 to 17 September 1914 17 September 1914 to 27 October 1915 27 October 1915 to 14 November 1916 14 November 1916 to 17 February 1917 17 February 1917 to 8 January 1918 10 January 1918 to 9 February 1923 9 February 1923 to 22 October 1929 22 October 1929 to 6 January 1932 6 January 1932 to 7 November 1938 7 November 1938 to 7 April 1939 7 April 1939 to 26 April 1939 26 April 1939 to 14 March 1940 14 March 1940 to 28 October 1940 28 October 1940 to 29 August 1941 29 August 1941 to 7 October 1941 7 October 1941 to 21 September 1943 21 September 1943 to 6 July 1945 6 July 1945 to 13 July 1945 13 July 1945 to 1 November 1946 1 November 1946 to 19 December 1949 19 December 1949 to 11 May 1951 11 May 1951 to 11 January 1956 11 January 1956 to 10 December 1958 10 December 1958 to 18 December 1963 18 December 1963 to 26 January 1966 26 January 1966 to 14 December 1966 14 December 1966 to 19 December 1967 19 December 1967 to 10 January 1968 10 January 1968 to 28 February 1968 28 February 1968 to 12 November 1969 12 November 1969 to 10 March 1971 10 March 1971 to 5 December 1972 5 December 1972 to 19 December 1972 19 December 1972 to 11 November 1975 11 November 1975 to 22 December 1975 22 December 1975 to 20 December 1977 20 December 1977 to 3 November 1980 3 November 1980 to 7 May 1982 7 May 1982 to 11 March 1983 11 March 1983 to 13 December 1984 13 December 1984 to 24 July 1987 24 July 1987 to 4 April 1990 4 April 1990 to 20 December 1991 20 December 1991 to 24 March 1993 24 March 1993 to 11 March 1996 11 March 1996 to 21 October 1998 21 October 1998 to 26 November 2001 26 November 2001

Source: Department of the Parliamentary Library.

Party Protectionist Protectionist Australian Labor Party Free Trade–Protectionist Protectionist Australian Labor Party Protectionist–Free Trade–Tariff Reform Australian Labor Party Liberal Australian Labor Party Australian Labor Party Nationalist Labour Nationalist Nationalist Nationalist–Country Party Australian Labor Party United Australia Party United Australia Party Country Party–United Australia Party United Australia Party United Australia Party–Country Party United Australia Party–Country Party Country Party–United Australia Party Australian Labor Party Australian Labor Party Australian Labor Party Australian Labor Party Australian Labor Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Australian Labor Party Australian Labor Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Liberal–Country Party Australian Labor Party Australian Labor Party Australian Labor Party Australian Labor Party Australian Labor Party Australian Labor Party Liberal–National Party of Australia Liberal–National Party of Australia Liberal–National Party of Australia

Chapter 2 — Government

Cabinet In practice, government policy is determined by the most senior ministers meeting in a body known as Cabinet. Such meetings are chaired by the Prime Minister. The Governor-General does not attend such meetings. Cabinet is not a body that is recognised by the formal Constitution, being a conventional part of the constitutional arrangements. Despite this, Cabinet effectively controls not only the legislative program, but also the departments of state. In effect, therefore, Cabinet is the dominant political and administrative element in Australia’s national government. Ministers not included in Cabinet are referred to collectively as the Outer Ministry. Particulars of the Third Howard Ministry, comprising Cabinet ministers and the Outer Ministry, are shown in table 2.2.

The Australian Public Service The Australian Public Service provides policy advice to the Commonwealth Government and facilitates the delivery of programs to the community. The Australian Public Service is part of the broader public sector, which includes parliamentary staff, statutory authorities, a separate public service for each of the states and territories, and local government employees. As at November 2001, some 1,552,500 Australians, 16.9% of the employed work force, worked in the public sector. There are currently eighteen departments in the Australian Public Service. Each department is managed by a chief executive officer, or secretary, who is responsible to the relevant minister for the efficient, effective and ethical use of resources. The minister, in turn, takes political responsibility for the actions of the department. Each department administers particular legislation that is specified in Administrative Arrangements. The

51

management of financial and human resources is governed by Commonwealth legislation such as the Financial Management and Accountability Act 1997 and the Public Service Act 1999. Public servants are required to uphold the values and standards of behaviour specified in the Public Service Act 1999. These include responsiveness to the Government, high ethical standards, accountability, impartiality, merit in employment, integrity, courtesy, lawfulness, confidentiality and the proper use of resources. As well as answering to the relevant minister, the Australian Public Service is accountable to the Australian community through a variety of mechanisms including parliamentary committees, administrative law, the Ombudsman and the Auditor-General. Over the last two decades, the Australian Public Service has undergone substantial change, both in its internal management processes and in its methods of service delivery. Examples of management changes include the introduction of accrual budgeting in the 1999–2000 Budget, an emphasis on reaching performance targets, the costing of government ‘outputs’, the imposition of capital use charges, the devolution of responsibility to departments and more flexible employment practices. Examples of changes to service delivery include the trend towards providing information and other services on the Internet, increased contracting of service delivery to the private sector and the establishment of customer service charters. Public resources are harnessed by the public sector to give practical effect to government policies. Traditionally, this process has been known as public administration. Increasingly, it is known as public management, reflecting the growing expectation that public sector managers will take responsibility for achieving results, as well as the increasing emphasis on efficiency.

52

Year Book Australia 2003

2.2

THIRD HOWARD MINISTRY — At July 2002 CABINET MINISTERS

Prime Minister Minister for Transport and Regional Services and Deputy Prime Minister Treasurer Minister for Trade Minister for Foreign Affairs Minister for Defence and Leader of the Government in the Senate Minister for Communications, Information Technology and the Arts, and Deputy Leader of the Government in the Senate Minister for Employment and Workplace Relations Minister for Immigration and Multicultural and Indigenous Affairs Minister for the Environment and Heritage (Vice-President of the Executive Council) Attorney-General Minister for Finance and Administration Minister for Agriculture, Fisheries and Forestry Minister for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women Minister for Education, Science and Training Minister for Health and Ageing Minister for Industry, Tourism and Resources

The Hon. JW Howard, MP The Hon. JD Anderson, MP The Hon. PH Costello, MP The Hon. MA Vaile, MP The Hon. AJG Downer, MP Senator the Hon. RM Hill Senator the Hon. RKR Alston The Hon. AJ Abbott, MP The Hon. PM Ruddock, MP The Hon. Dr DA Kemp, MP The Hon. DR Williams, AM, QC, MP The Hon. NH Minchin, MP The Hon. WE Truss, MP Senator the Hon. AE Vanstone The Hon. Dr BJ Nelson, MP Senator the Hon. KCL Patterson The Hon. IE Macfarlane, MP

OUTER MINISTRY Minister for Regional Services, Territories and Local Government Minister for Revenue and Assistant Treasurer Minister for Veterans’ Affairs and Minister Assisting the Minister for Defence Minister for the Arts and Sports Minister for Employment Services Minister for Citizenship and Multicultural Affairs Minister for Justice and Customs Special Minister of State Minister for Forestry and Conservation Minister for Children and Youth Affairs Minister for Science (Deputy Leader of the House) Minister for Ageing Minister for Small Business and Tourism Parliamentary Secretary to the Prime Minister Parliamentary Secretary to the Cabinet Parliamentary Secretary to the Minister for Transport and Regional Services Parliamentary Secretary to the Treasurer (Manager of Government Business in the Senate) Parliamentary Secretary to the Minister for Foreign Affairs Parliamentary Secretary to the Minister for Defence Parliamentary Secretary to the Minister for the Environment and Heritage Parliamentary Secretary to the Minister for Finance and Administration Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry Parliamentary Secretary to the Minister for Family and Community Services Parliamentary Secretary to the Minister for Health and Ageing Parliamentary Secretary to the Minister for Industry, Tourism and Resources

The Hon. CW Tuckey, MP Senator the Hon. HL Coonan The Hon. DS Vale, MP Senator the Hon. CR Kemp The Hon. MT Brough, MP The Hon. GD Hargrave, MP Senator the Hon. CM Ellison Senator the Hon. E Abetz Senator the Hon. ID Macdonald The Hon. LJ Anthony, MP The Hon. PJ McGauran, MP The Hon. KJ Andrews, MP The Hon. JB Hockey, MP The Hon. JM Kelly, MP The Hon. PN Slipper, MP Senator the Hon. RLD Boswell Senator the Hon. IG Campbell The Hon. CA Gallus, MP The Hon. FE Bailey, MP The Hon. Dr SN Stone, MP The Hon. PN Slipper, MP Senator the Hon. JM Troeth The Hon. RA Cameron, MP The Hon. PM Worth, MP Mr WG Entsch, MP

Source: Department of the Parliamentary Library.

Commonwealth elections Franchise Any Australian citizen aged 18 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 an

electorate for a period of one month before enrolment is necessary to enable a qualified person to enrol. Enrolment and attendance at a polling place on polling day (except under certain lawful exceptions) are compulsory for all eligible persons.

Chapter 2 — Government

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 elections for the Senate are usually held at the same time as elections for the House of Representatives, though they need not be. At times of disagreement between the House of Representatives and the Senate, both houses may be dissolved and an election called for both houses. Six of the forty Commonwealth elections have been double dissolution elections. Table 2.3 shows the number and terms of all parliaments since Federation.

Electorates For the purpose of House of Representatives elections each state or territory is divided into single-member electorates corresponding in number to the number of members to which the state or territory is entitled. In Senate elections the whole state or territory constitutes a single electorate. Redistributions of House of Representatives electorates must be held at least every seven years. A redistribution must take into account current and projected enrolments, community of economic, social and regional interests, means of communication and travel, physical features and area, and existing electorate boundaries. Within each state and territory the electorates must, as far as possible, be equal in numbers of electors. There is usually a variation in size of electorates from one state or territory to another. The Electoral Commissioner determines the representation entitlements of the states and territories during the 13th month after the first meeting of a new House of Representatives. Determinations are based on the latest population statistics as provided by the Australian Statistician. The representation entitlements of the states and territories at the 1999 determination are shown in table 2.4, which also shows the total size of the House of Representatives at the time of the following election. Tasmania has a constitutional entitlement to five members of the House of

53

Representatives based on it being a state at the time of Federation in 1901. The Australian Capital Territory and the Northern Territory have gained representation since 1901, and current legislation provides a minimum representation of one member of the House of Representatives for each.

2.3 Number of Parliament 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

COMMONWEALTH PARLIAMENTS Date of opening 9 May 1901 2 March 1904 20 February 1907 1 July 1910 9 July 1913 8 October 1914 14 June 1917 26 February 1920 28 February 1923 13 January 1926 6 February 1929 20 November 1929 17 February 1932 23 October 1934 30 November 1937 20 November 1940 23 September 1943 6 November 1946 22 February 1950 12 June 1951 4 August 1954 15 February 1956 17 February 1959 20 February 1962 25 February 1964 21 February 1967 25 November 1969 27 February 1973 9 July 1974 17 February 1976 21 February 1978 25 November 1980 21 April 1983 21 February 1985 14 September 1987 8 May 1990 4 May 1993 30 April 1996 10 November 1998 12 February 2002

Date of dissolution 23 November 1903 5 November 1906 19 February 1910 23 April 1913 30 July 1914(a) 26 March 1917 3 November 1919 6 November 1922 3 October 1925 9 October 1928 16 September 1929 27 November 1931 7 August 1934 21 September 1937 27 August 1940 7 July 1943 16 August 1946 1 October 1949 19 March 1951(a) 21 April 1954 4 November 1955 14 October 1958 2 November 1961 1 November 1963 31 October 1966 29 September 1969 2 November 1972 11 April 1974(a) 11 November 1975(a) 8 November 1977 19 September 1980 4 February 1983(a) 26 October 1984 5 June 1987(a) 19 February 1990 8 February 1993 29 January 1996 31 August 1998 8 October 2001 ..

(a) A dissolution of both the Senate and the House of Representatives. Source: Department of the Parliamentary Library.

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Year Book Australia 2003

2.4 REPRESENTATION ENTITLEMENTS, 1999 Determination State/territory

New South Wales Victoria Queensland Western Australia South Australia Tasmania Australian Capital Territory Northern Territory Total

Seats 50 37 27 15 12 5 2 2 150

Source: Department of the Parliamentary Library.

2.5 COMMONWEALTH PARLIAMENTARY ELECTION OF 10 NOVEMBER 2001, Electors enrolled State/territory

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia

4 227 937 3 234 874 2 336 698 1 039 025 1 206 422 331 675 111 022 221 184 12 708 837

Source: Department of the Parliamentary Library.

2001 election Parliament was dissolved on 8 October 2001 and an election called for 10 November 2001, for the House of Representatives and half the Senate. At that election the Liberal–National Party coalition was returned to office. The numbers of electors enrolled for the 2001 election are shown in table 2.5. The state of the parties in the Commonwealth Parliament at November 2002 is shown in table 2.6. First preference votes cast for the major political parties in each state and territory at the 2001 election for each House of the Commonwealth Parliament are shown in tables 2.7 and 2.8.

2.6

STATE OF THE PARTIES, Commonwealth Parliament — November 2002 House of Representatives Liberal Party 68 Australian Labor Party 64 National Party 13 Country Liberal Party 1 Independent 3 The Greens 1 Total 150 Senate Liberal Party Australian Labor Party National Party Australian Democrats The Greens Country Liberal Party One Nation Independent Total Source: Department of the Parliamentary Library.

31 28 3 7 2 1 1 3 76

Chapter 2 — Government

55

2.7 COMMONWEALTH PARLIAMENTARY ELECTIONS, House of Representatives votes — 10 Nov 2001 First preference votes Liberal Party National Party Country Liberal Party Australian Labor Party Australian Democrats The Greens Pauline Hanson’s One Nation Others Formal votes Informal votes Total votes recorded First preference votes Liberal Party National Party Country Liberal Party Australian Labor Party Australian Democrats The Greens Pauline Hanson’s One Nation Others Formal votes Informal votes Total votes recorded

NSW

Vic.

Qld

SA

1 272 208 349 372 .. 1 380 822 160 706 180 079 180 813 264 460 3 788 460 217 169 4 005 629

1 154 493 91 048 .. 1 230 764 184 564 174 396 37 812 81 938 2 955 015 122 575 3 077 590

767 959 192 454 .. 730 914 90 679 73 467 148 932 101 847 2 106 252 106 995 2 213 247

430 441 .. .. 316 362 98 849 34 141 44 574 13 340 937 707 55 040 992 747

WA

Tas.

NT

ACT

Aust.

449 036 11 052 .. 402 927 50 581 64 939 67 992 38 268 1 084 795 56 134 1 140 929

114 283 .. .. 145 305 13 785 24 052 8 847 1 746 308 018 10 856 318 874

.. .. 36 961 39 111 4 795 3 665 3 486 3 143 91 161 4 436 95 597

65 651 .. .. 95 215 16 266 14 335 5 576 5 623 202 666 7 386 210 052

4 254 071 643 926 36 961 4 341 420 620 225 569 074 498 032 510 365 11 474 074 580 591 12 054 665

Source: Department of the Parliamentary Library.

2.8

COMMONWEALTH PARLIAMENTARY ELECTIONS, Senate votes — 10 Nov 2001

First preference votes Liberal–National Party Liberal Party National Party Country Liberal Party Australian Labor Party Australian Democrats The Greens Pauline Hanson’s One Nation Christian Democratic Party Others Formal votes Informal votes Total votes recorded First preference votes Liberal–National Party Liberal Party National Party Country Liberal Party Australian Labor Party Australian Democrats The Greens Pauline Hanson’s One Nation Christian Democratic Party Others Formal votes Informal votes Total votes recorded

NSW

Vic.

Qld

SA

1 620 235 .. .. .. 1 299 488 240 867 216 522 169 139 72 697 260 495 3 879 443 142 281 4 021 724

1 155 854 .. .. .. 1 073 667 228 272 71 605 174 817 17 162 196 890 2 918 267 173 592 3 091 859

.. 750 416 196 845 .. 682 239 143 942 215 400 71 102 22 703 67 430 2 150 077 65 450 2 215 527

.. 440 431 .. .. 321 422 121 989 44 055 33 385 .. 5 733 967 015 30 556 997 571

WA

Tas.

NT

ACT

Aust.

.. 443 597 26 015 .. 377 547 64 773 77 757 64 736 13 809 37 295 1 105 529 41 025 1 146 554

.. 119 720 .. .. 113 709 14 273 10 169 42 568 .. 8 223 308 662 10 493 319 155

.. .. .. 40 680 36 500 6 796 4 353 3 978 .. 755 93 062 2 640 95 702

.. 70 475 .. .. 86 331 22 072 4 485 14 825 3 602 3 684 205 474 4 924 210 398

2 776 089 1 824 639 222 860 40 680 3 990 903 842 984 644 346 574 550 129 973 580 505 11 627 529 470 961 12 098 490

Source: Department of the Parliamentary Library.

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Year Book Australia 2003

State government Each state experienced a period of colonial self-government prior to the achievement of Federation. The fact of Australia having a federal system of government means that significant powers are held by the state and territory governments.

The governors of the states at July 2002 are shown in table 2.9.

State parliaments

State governors The governor is the representative of the Sovereign, appointed by the Sovereign on the advice of the relevant state 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 Commonwealth Australia Act 1986, as well as under the Acts of the parliaments of the states. Governors may administer the prerogative of mercy by the reprieve or pardon of criminal offenders, and may remit fines and penalties due to the Crown in right of their state. In the performance of his/her functions generally, the governor of a state acts on the advice of ministers.

2.9 New South Wales Victoria Queensland Western Australia South Australia Tasmania

The governor also has 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.

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, headed by an opposition leader. Tables 2.10 and 2.11 set out the state premiers and opposition leaders at July 2002. 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 all upper houses is Legislative Council. The members of the parliaments of each state are elected by the residents of that state using either the alternative vote (preferential voting) or the single transferable vote variant of proportional representation.

GOVERNORS OF THE STATES — July 2002 Her Excellency the Professor Marie Bashir, AC John Landy, AC, MBE His Excellency Major-General Peter Arnison, AO His Excellency Lieutenant-General John Murray Sanderson, AC, AM Her Excellency Mrs Marjorie Jackson Nelson, AC, MBE His Excellency the Honourable Sir Guy Green, AC, KBE

Source: Department of the Parliamentary Library.

2.10 PREMIERS, States — July 2002 New South Wales Victoria Queensland Western Australia South Australia Tasmania

The Hon. RJ Carr, MP (ALP) The Hon. SP Bracks, MP (ALP) The Hon. P Beattie, MP (ALP) The Hon. GI Gallop, MP (ALP) The Hon. M Rann, MP (ALP) The Hon. JA Bacon, MP (ALP)

Source: Department of the Parliamentary Library.

2.11

OPPOSITION LEADERS, States — July 2002

New South Wales Victoria Queensland Western Australia South Australia Tasmania

JG Brogden, MP (LP) RKB Doyle, MP (LP) MJ Horan, MP (NP) The Hon. CJ Barnett, MP (LP) Hon. RG Kerin, MP (LP) MT Hidding, MP (LP)

Source: Department of the Parliamentary Library.

Chapter 2 — Government

The state of the parties in each of the state and territory parliaments is set out in table 2.12. The extent of state legislative powers is defined by the Commonwealth and state Constitutions, and includes education, police, public health, public transport, agriculture, roads and the overseeing of local government.

2.12

STATE OF THE PARTIES, States and territories — July 2002 Seats

NEW SOUTH WALES Legislative Assembly Australian Labor Party Liberal Party National Party Independent Total Legislative Council Australian Labor Party Liberal Party National Party Christian Democratic Party The Greens Australian Democrats One Nation Party Others Total

55 20 13 5 93 16 9 4 2 2 1 1 7 42

VICTORIA Legislative Assembly Australian Labor Party Liberal Party National Party Independent Total Legislative Council Liberal Party Australian Labor Party National Party Total QUEENSLAND Legislative Assembly Australian Labor Party National Party Liberal Party One Nation Party Independent Total

44 35 6 3 88 24 14 6 44

66 12 3 2 6 89 ...continued

57

2.12 STATE OF THE PARTIES, States and territories — July 2002 — continued Seats

SOUTH AUSTRALIA House of Assembly Australian Labor Party Liberal Party National Party Independent Total Legislative Council Liberal Party Australian Labor Party Australian Democrats Independent Total WESTERN AUSTRALIA Legislative Assembly Australian Labor Party Liberal Party National Party Independent Total Legislative Council Australian Labor Party Liberal Party The Greens One Nation National Party Total TASMANIA House of Assembly Australian Labor Party Liberal Party The Greens Total Legislative Council Australian Labor Party Independent Total

23 20 1 3 47 9 7 3 3 22

32 16 5 4 57 13 12 5 3 1 34

14 10 1 25 5 10 15

NORTHERN TERRITORY Legislative Assembly Australian Labor Party Country Liberal Party Independent Total

13 10 2 25

AUSTRALIAN CAPITAL TERRITORY Legislative Assembly Australian Labor Party Liberal Party Australian Democrats The Greens Total

8 7 1 1 17

Source: Department of the Parliamentary Library.

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Year Book Australia 2003

Territory government

2.15 OPPOSITION LEADERS, Territories — July 2002 Northern Territory Australian Capital Territory

Self-governing The Australian Capital Territory and the Northern Territory are self-governing polities with powers almost matching those of the original 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 controls its own treasury and raises revenue under its own system of laws. Generally, Commonwealth laws do not apply to Norfolk Island unless expressed to do so, but where any Norfolk Island legislation is in conflict with ordinances made by the Governor-General, such legislation is deemed null and void. Norfolk Islanders may enrol for Commonwealth elections in the electoral division they nominate, with some exceptions. The Northern Territory and Norfolk Island both have an administrator of the territory, appointed by the Governor-General (table 2.13).

The Hon. DG Burke, MLA (CLP) The Hon. G Humphries, MLA (LP)

Source: Department of the Parliamentary Library.

Non–self governing 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 electoral division of Lingiari, Northern Territory. Residents of Jervis Bay are enrolled in the electoral division of Fraser, Australian Capital Territory.

2.13 ADMINISTRATORS, Territories — July 2002 Northern Territory Norfolk Island

His Honour John Christopher Anictomatis, OAM His Honour Anthony J Messner

Source: Department of the Parliamentary Library.

The Australian Capital Territory has neither administrator nor governor. Each territory has an elected Legislative Assembly, with a wide range of powers. Each territory has a government headed by a chief minister (table 2.14). The Northern Territory and the Australian Capital Territory have an opposition headed by an opposition leader (table 2.15).

2.14 CHIEF MINISTERS, Territories — July 2002 Northern Territory Australian Capital Territory Norfolk Island

The Hon. CM Martin, MLA (ALP) The Hon. J Stanhope, MLA (ALP) RC Nobbs

Source: Department of the Parliamentary Library.

Local government Local government has a limited constitutional position in Australia, being organised under state or territory legislation upon broadly similar lines across Australia. The main variation is the existence of various councils in the Northern Territory that are based on rural Aboriginal communities. There are no local councils in the Australian Capital Territory, where the territory government has direct responsibility for local services. Local government in Australia is unlike that in many other political systems, for it provides an unusually narrow range of services. Each state and the Northern Territory has a number of local government areas, known variously as cities, towns, municipalities, boroughs, shires or districts. The generic local body is the council. In May 2001 there were 687 local councils. Most 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 local 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 services across most of Brisbane; by contrast,

Chapter 2 — Government

many small rural councils provide a relatively small number of services. Among the local responsibilities are the management of health, sanitary and garbage services, road, street and bridge construction, water supply and sewerage, museums, fire brigades, harbour services and local libraries. The scope of local government duties differs a great deal around the nation, for in all states many of these duties are performed either directly by the state government or through semi-government authorities, known in Australia as statutory authorities. The provision of household water, for instance, is typically undertaken by a statutory authority operating under state legislation.

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 parliament were won by candidates from just three major groups. The outline of the modern system can be seen as early as 1909 when a fusion of the major non-Labor parties formed the first Liberal Party. This was confirmed in the election in the following year, which saw the election dominated by the Liberal and Australian Labor parties. In 1919 the Country Party won a significant number of seats, and by 1922 it was participating in a coalition government. Since that time the Australian party system has been dominated by the contest between Labor and a coalition of the Liberal and National (formerly Country) parties. Many minor parties have contested House of Representatives elections, but have not seriously threatened the dominance of the three major parties. Since 1949 the use of proportional representation for Senate elections has given minor parties a realistic chance of winning Senate seats, and the major parties have rarely controlled the upper house since the election of 1964.

Parties and Parliament The idea that Parliament ‘controls’ ministers, as well as government policy and the departments and statutory bodies which implement these policies, is a concept which had more relevance in the 19th century than it does today. Stable majority party government in the 20th century is perhaps the main reason for the decline in

59

absolute parliamentary control as well as for the decline in the influence of Parliament relative to that of the Executive. The impact of parties can be seen clearly in the operations of each house of Parliament, particularly in the legislative process. Many questions and queries may be raised in the House of Representatives, and amendments are often moved. However, because governments enjoy a majority in the House, questions may be avoided, amendments cannot be forced, and whether or not the Opposition’s views are accepted depends on the wishes of the government of the day. It is a different story in the Senate, where no government has enjoyed a majority since 1981. If the Government wants legislation to be passed by the Senate it often has to agree to amendments proposed by the Opposition and minor parties. It is for this reason that the Senate is far more active than the House in sending proposed legislation to committees.

National anthem and colours of Australia A national song poll was held on 21 May 1977. Voting was preferential and, after the distribution of preferences, ‘Advance Australia Fair’ became the national song of Australia. His Excellency, the Governor-General of the Commonwealth of Australia, issued the following Proclamation on 19 April 1984: I, SIR NINIAN MARTIN STEPHEN, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby declare: (a) that the anthem ‘God Save The Queen’ shall henceforth be known as the Royal Anthem and be used in the presence of Her Majesty The Queen or a member of the Royal Family; (b) that the National Anthem shall consist of the tune known as ‘Advance Australia Fair’ with the following words: Australians all let us rejoice, For we are young and free, We’ve golden soil and wealth for toil; Our home is girt by sea; Our land abounds in nature’s gifts Of beauty rich and rare, In history’s page, let every stage

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Year Book Australia 2003

Advance Australia Fair. In joyful strains then let us sing, Advance Australia Fair. Beneath our radiant Southern Cross We’ll toil with hearts and hands; To make this Commonwealth of ours Renowned of all the lands; For those who’ve come across the seas We’ve boundless plains to share; With courage let us all combine To Advance Australia Fair. In joyful strains then let us sing, Advance Australia Fair. (c) that the Vice-Regal Salute to be used in the presence of His Excellency the Governor-General shall consist of the first four bars and the last four bars of the tune known as ‘Advance Australia Fair’; (d) that the National Anthem shall be used on all official and ceremonial occasions, other than occasions on which either the Royal Anthem or the Vice-Regal Salute is used; and (e) that green and gold (Pantone Matching System numbers 116C and 348C as used for printing on paper) shall be the national colours of Australia for use on all occasions on which such colours are customarily used.

Reference notes The Australian Constitution is reproduced in Year Book Australia from time to time, the latest being the 1998 edition. In Year Book Australia 1924 the names are given of each ministry up to the Bruce–Page Ministry together with the names of the successive holders of portfolios therein. Year Book Australia 1953 contains a list which covers the period between 9 February 1923, the date on which the Bruce–Page Ministry assumed power, and 31 July 1951, showing the names of all persons who held office in each ministry during that period. 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. For further details of referendums see Year Book Australia 1966, pages 66–68, Year Book Australia 1974, pages 90–91, Year Book Australia 1977–78, pages 72–73 and Year Book Australia 1986, pages 55–56. Particulars of voting at Senate elections and elections for the House of Representatives up to 1998 appear in earlier issues of Year Book Australia. Full details are contained in the Election Statistics issued by the Electoral Commissioner following each election.

Chapter 2 — Government

61

Bibliography Publications Australian Electoral Commission 1999, Behind the scenes. The Australian Electoral Commission’s 1998 Federal Election Report, AusInfo, Canberra Bennett S 1992, Affairs of State. Politics in the Australian States and Territories, Allen and Unwin, Sydney Bennett S 1996, Winning and Losing. Australian National Elections, Melbourne University Press, Melbourne Carter J 2000, Parliamentary Government in Australia, 4th ed., Parliamentary Education Office, Canberra Commonwealth Local Government Forum n.d., Country Profile: Australia. The Local Government System in Australia, Department of the Parliamentary Library 2002, Parliamentary Handbook of the Commonwealth of Australia, 29th edition, Canberra, Hasluck P 1979, The office of Governor-General, Melbourne University Press, Melbourne Sawer M (ed.) 2001, Elections full, free & fair, Federation Press, Sydney Singleton G & Aitkin D 2000, Australian political institutions, 6th ed., Longman, Melbourne

Web sites Australian Electoral Commission, Parliament of Australia, Department of the Parliamentary Library, House of Representatives, Parliamentary Education Office, Senate,

Should the House of Representatives have four-year terms? This article was contributed by Scott Bennett of the Information and Research Services section of the Parliamentary Library, Canberra. The article is an abridged version of Parliamentary Library Research Paper No.4, 2000–01, ‘Four-year Terms for the House of Representatives?’. From 1965 to 1998 Mr Bennett lectured in Political Science at the University of NSW, the Royal Military College and the Australian National University. He has published extensively in the area of Australian politics and political history.

During the first months of 2002 there was much community discussion on the question of whether House of Representatives terms should be extended, possibly to four years. This is a question of long standing in Australia.

S2.1 NATIONAL LOWER HOUSE TERMS Length (years) 2 3

no. 1 13

4

55

Examples United States of America Including Australia, New Zealand, Sweden Including Austria, Belgium, Denmark, Germany, Japan Including Canada, France, Ireland, Italy, United Kingdom Morocco, Nicaragua, Sri Lanka

Background to the four-year term issue

5

76

6

3

Australian lower house terms

Source: Inter-Parliamentary Union, ‘Electoral Systems. A World-Wide Comparative Study’, Geneva, 1993.

There has been a trend to four-year terms in the Australian states and territories, with only Queensland and the Australian Capital Territory retaining three-year terms.

What is the ‘best’ term for a national lower house? Is there some optimum length for the term of a national lower house? What is the situation in other nations? According to a study published by the Inter-Parliamentary Union in 1993, the overwhelming number of national lower houses have terms of four or five years. Relatively few have a three-year term, and the United States of America House of Representatives is the only lower house with a two-year term. Table S2.1 gives the figures, and where possible includes examples of liberal democracies in each category.

What is the best length for a parliamentary term? Despite figures showing that four- or five-year terms are most preferred, the answer is far from clear cut, and a lack of research data does not help in the search for an answer.1 The best guidance that the Inter-Parliamentary Union can give poses the problem to be solved: In theory, elections to a Parliament should not be so infrequent that they fail to reflect the opinions of the electorate, nor be so frequent that they are likely to produce excessive discontinuities in the process of government.2

The question is, therefore, how Australia can balance a preference for stable government with the countervailing need to maintain democratic practices.

Chapter 2 — Government

Over the years Three-year terms were generally favoured throughout the process of constitution-writing in the 1890s. This presumably reflected the fact that five of the colonies had three-year terms at the time; only Western Australia had four-year terms. The initial draft at the 1897–98 Convention had provided for a four-year term, but this was reduced while the draft was in committee. By comparison with other issues, however, this was not a matter which stirred much debate among the constitution founders.

n

In April 2000 Senator Andrew Murray (Australian Democrats) introduced a bill for four-year terms, claiming that the longer term ‘has received support from all political parties, from a variety of institutions and political commentators and increasingly, strong support from the business sector and the public at large’.8

n

In June 2000 the Joint Standing Committee on Electoral Matters received a number of submissions favouring a four-year term. The Committee reiterated its 1997 support, ‘so as to facilitate better long-term planning by government and ensure consistency with state jurisdictions and cost savings’.9

n

In early 2002 the Sydney Morning Herald and Melbourne’s Age newspapers both called for four-year terms.10

n

In April 2002 the Liberal Party declared its support for the longer term.11

The Commonwealth Constitution (s. 28) therefore stated that: Every House of Representatives shall continue for three years from the first meeting of the House, and no longer, but may be sooner dissolved by the Governor-General.

Despite the near-unanimity of the Constitution writers, over the years there have been many calls to increase the House of Representatives term. Although some have called for five-year terms, most have expressed a preference for terms of a maximum of four years: n

The Royal Commission into the Constitution (1927–29) recommended that the life of Parliament be increased to ‘at least four years’.3

n

In 1982 the Reid Committee of Review into Commonwealth Administration expressed a hope that the Parliament ‘might see fit to adopt improved arrangements for conducting its business — even to the point of proposing constitutional reform to allow for four-year parliaments’.4

n

At the Adelaide session of the Australian Constitutional Convention (1983) a recommendation for a four-year term was made.5

n

A recommendation for four-year terms was made by the Constitutional Commission in 1988.6

n

Prime Minister John Howard (Liberal Party) spoke on the question during the 1998 Commonwealth election, stating that he thought it ‘a good idea to have a longer period of time to deal with medium and longer term issues’. He also stated his belief that ‘there is a lot of support in the Australian community’ for such an alteration to parliamentary terms.7

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In 1988, Roy Morgan Research Centre survey found 56% of Australians supportive of four-year terms; 38% were said to be opposed.12 It is likely that such views are at least as strongly held today.

Two amendment attempts In 1983 the Commonwealth Parliament passed the necessary legislation for five constitutional referenda that were to be held on 25 February 1984. Despite most senators and members being in favour of the second of the five — to extend the maximum life of the House of Representatives to four years — the Hawke Government eventually deferred the five referenda indefinitely.13 Two of the proposals were later put to referendum at the same time as the 1984 Commonwealth election, but the others, including the four-year term proposal, were never put to the people. In September 1988, voters were presented with a constitutional amendment which proposed replacing the current term with a maximum term of four years. Frustratingly for advocates of the longer term, however, the Hawke Government confused the issue by including in the proposed change a reduction of Senate terms to four years as well as a provision for simultaneous elections, the latter of which had been defeated on three previous occasions. Voters

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Year Book Australia 2003

could not pick which of the three aspects to support or reject, for they were required to vote YES or NO for the entire package. Voter opposition to changes to the Senate term, as well as to simultaneous elections, meant that eventually fewer than one-third of the electorate supported the change.14

Length of parliaments since 1901 Because the House of Representatives term is for maximum terms only, and because of the convention that prime ministers can call elections virtually whenever they choose, the 39 completed parliaments have had terms of greatly varying length (table S2.2). The 1910 election was held three years and 122 days after the 1906 election, while the break between the 1946 and 1949 elections was three years and 73 days. At the other end of the scale, eight elections have been held less than two years after the previous election, though four of these (1914, 1951, 1974, 1975) were double dissolution elections which cannot be called within six months of the expiry of the House, and are therefore far more likely to be announced early in a parliament than are ‘normal’ elections. The remaining four parliaments (ending in 1929, 1955, 1963, 1984) averaged 18 months, with the shortest period being the 10 months and 25 days between the 1928 and 1929 elections. Because of various constitutional provisions there is no constitutional barrier to an election being held more than three years after the previous election. There have, in fact, been 10 such occasions, most recently in 2002. The fact that more than one-quarter of all elections have been held after an interval greater than three years, suggests that if successive prime ministers were of a mind to do so, the elapsed time between elections could always be three years or slightly longer.

S2.2

ELAPSED TIME BETWEEN HOUSE OF REPRESENTATIVES ELECTIONS

Elapsed time Over 3 years

2 years 9 months — 3 years 2 years 6 months — 2 years 9 months 2 years 3 months — 2 years 6 months 2 years — 2 years 3 months 1 year 6 months — 2 years 1 year — 1 year 6 months Under 1 year

Date of election 1910, 1913, 1922, 1928, 1937, 1946, 1949, 1954, 1972, 2002 1906, 1925, 1940, 1943, 1958, 1961, 1966, 1969, 1980, 1993, 1996 1903, 1917, 1919, 1934, 1987(a), 1990, 1998 1983(a) 1931 1955, 1963, 1975(a), 1977, 1984 1914(a), 1951(a), 1974(a) 1929

(a) Double dissolution elections. Source: Australian Electoral Commission, ‘Electoral Pocket Book’, Canberra, 1999, pp. 66–71.

Since 1901 the average elapsed time between elections has been 30.7 months, though if the six double dissolution elections are not counted, this figure climbs to 32.5 months. If we look at specific periods, we note that there has been a marked reduction in term length during the past 30 years. The average for all elections drops to 28.5 months, though the holding of four double dissolution elections no doubt distorts the figures. Even with these four elections removed from the figures, the average parliament has lasted only 31 months (see table S2.3).

S2.3 AVERAGE ELAPSED TIME BETWEEN HOUSE OF REPRESENTATIVES ELECTIONS All elections

Double dissolution elections excluded

1901–2002 1901–1949 1949–2002 1901–1928 1928–1949

months 30.7 32.3 29.3 33.1 31.4

1949–1972 1972–2002

30.4 28.5

months 32.5 33.3 31.6 35.0 No double dissolutions in this period 32.3 31.0

Period

Source: Australian Electoral Commission, ‘Electoral Pocket Book’, Canberra, 1999, pp. 66–71.

Chapter 2 — Government

65

These figures suggest that parliamentary terms have been shortening over the long haul. There is, however, no reason why this should be so. Since the 1972 election Australia had a period (1974–87) during which House terms averaged only 25.8 months, yet the average length for elections between 1990 and 2001 was 34.5 months. As noted later in the article, a key factor in the whole issue of House of Representatives terms is the political reality that prime ministers will always be seeking to call elections at times of maximum benefit to their party or coalition.

would be less. If prime ministers followed previous practice, however, then the House usually would not be dissolved earlier than six months prior to its term expiring. The net impact therefore would be that the usual length of a House term would have been extended by a year — and any term that did run for the full term would, obviously, be a bonus. In order to guarantee a full four-year term, fixed terms would be necessary (for fixed terms, see below).

Despite this, even if all parliaments were to run full term, the question still remains: is a ‘three-year’ term too short for a modern national lower house?

A long-standing claim holds that longer terms would encourage governments to introduce policies that were long-term rather than merely politically expedient. There is a widespread view that increasing the term for the House would enable governments to enjoy the luxury of being able to take ‘more responsible, long-term views’ than is possible when the next election is quite likely to be less than two years away. The commonly-heard view of the typical three-year term is that governments:

The case for four-year maximum terms Over the years a number of the points once made in favour of four-year maximum terms have fallen into disuse, as can be seen in the report of the 1927–29 Royal Commission into the Constitution. At that time the commissioners believed that the three-year period was inadequate for Australia in view of: n

the great size of the country

n

the large area of some electorates

n

the large number of important problems with which Parliament had to deal

n

the impact of a short time between electoral contests

n

the necessity of the Prime Minister attending Imperial Conferences from time to time.15

Only the deleterious effect of a short period between elections remains an important argument. Modern critics of the status quo tend to focus on at least seven specific benefits they claim will flow from an extension of House of Representatives terms to four years. It must be noted, however, that most of these are essentially unprovable. It is also important to note that recent suggestions have referred to four-year maximum terms for the House of Representatives. If this change were to be made, there would be no expectation that each term would always last four years. As table S3.2 suggests, most terms

Policy-making

… tend to spend their first year settling in; begin taking tough and far-sighted decisions in the second year; and then effectively shut up shop in the third year because it is getting too close to the next election.16

This aspect of the governmental system can cause frustration within the bureaucracy. As the Queensland Constitutional Review Commission put it in 2000: It has been said that under a three-year term, the first budget is devoted to paying off the promises made at the previous election and the third budget in anticipating the promises to be made at the forthcoming election. Consequently, only one budget out of three, the second, it likely to address important, long term policies without the contamination of short-term political considerations.17

Quite clearly, there is ‘little time to engage simply in good government’.18 Associated with this, it is argued that four-year terms would give governments longer to weather any adverse responses to the implementation of policies seen as necessary though unpopular. It is said that this would be especially valuable in the area of economic management.

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Year Book Australia 2003

Business confidence It is claimed that longer terms would enhance business confidence. The private sector has long complained that national elections disrupt their long-term planning, with deleterious effects upon the national economy. It has been noted, for instance, that retail sales drop in the period before a Commonwealth election. Calls for longer terms in New Zealand have also tended to come from business organisations.19 The Business Council of Australia has been a keen advocate of a longer term. Former president of the Council, Sir Roderick Carnegie, has stated: The uncertainties created by frequent elections and consequent shifts in Government policy in turn have an adverse effect on business confidence and business investment. Very few other democratic nations suffer this disadvantage as most have maximum parliamentary terms that are significantly longer than that of Australia.20

According to Ron Brunton of the Institute of Public Affairs, business support for such a change also has a political dimension. He believes that government stability is less important for business than ‘the desire for a longer period of return on all the time and resources they spend in cultivating the party in power’.21

Cost of elections The longer the period between elections, the greater the saving for the taxpayers forced to foot the election bill.22 With national elections now costing about $100m, a great deal would be saved by having fewer national elections.

Voter dislike It is often said that Australians dislike the frequency with which they are required to vote, something that is believed to be linked to a distaste for the tough nature of our party and electoral politics. Fewer Commonwealth elections would reduce this to some extent. A former Professor of Politics at La Trobe University, Joan Rydon, has stated that any reduction in the number of elections should be seen as part of a process of ‘reducing the adversary nature of our party politics’.23

Bringing the House of Representatives into line A change to four-year terms would bring the House of Representatives term into line with most state and territory lower house terms. In both Queensland and the Australian Capital Territory there has been recent discussion about the possibility of changing from three- to four-year terms. If this occurs, the House of Representatives would be the only Australian lower house retaining the shorter term.

The local member Former MHR, Jim Snow (Australian Labor Party), has claimed that at the electorate level the current system does little for the representative function that is so important a part of the MP’s duties. He believes that three-year terms may make local members adept at campaigning, but they do not encourage them to work in a sustained way on long-term problems: ‘Members are tempted to become show ponies rather than watch dogs’.24

Political debate Might longer periods between elections raise the standard of political debate? It has been wondered if such a period might ‘create more opportunity for genuinely bipartisan discussion of a wider range of issues [than is normally the case]’.25

What to do with Senate terms? Any discussion of longer House of Representatives terms raises the important question of how such terms would be coordinated with the terms of the members of the Senate. Simultaneous elections are not a constitutional requirement, but they save money, and only six of 40 House elections have been held alone — the last was 30 years ago. The Australian experience has therefore been that the three-year/six-year model makes it relatively easy to hold both elections on the same day. However, if the House of Representatives maximum term became four years, with no alteration of Senate terms, simultaneous elections would be much rarer.

Chapter 2 — Government

Although there has been much agreement about the need to lengthen the lower house term, there is far less consensus about what should be done with the term for the upper house. The proposal which seems to have most popular support would increase the House term by a year and the Senate term by two years, with the coordination of election dates for the houses being optional, as has always been the case. The major doubt about this change is whether extending senators’ terms to eight years would be accepted by voters. Might it be seen as ‘cynical and self-serving by a somewhat jaded electorate’?26 Is an eight-year term just too long? While praising the idea of four-year House terms, the Melbourne Age has described eight years between elections as ‘a strange concept of democracy’.27 Professor James Crawford has noted that: An eight-year term for Senators is a very long one, which stretches any notion that parliamentary office is the result of a more-or-less current mandate from the electorate.28

Former senator Reg Withers (Liberal Party) asserted that if senators gained a longer term it would ‘almost be as good as being a tenured academic or a tenured public servant’.29 Major parties might also reject the idea of some minor party senators holding a seat for such a length of time. This has been an issue in New South Wales since the 1999 election following the election of some Legislative Council members with very small shares of the vote.30 Despite such views, this change would see the maintenance of a system very much like the current arrangements, and might, therefore, be the easiest to sell to an electorate traditionally sceptical of constitutional change. There have been many politicians who have supported it. Former deputy prime minister, Tim Fischer (National Party), for example, has expressed his support and, incidentally, the support of his party as well.31 Peter McGauran (National Party) has acknowledged the difficulty of selling eight-year Senate terms to a sceptical public, but sees it as a question of overall benefit to the Parliament and, hence, the nation. For him, the advantages of the four-year House term outweigh the disadvantages of longer Senate terms.32 Another MP has noted that to introduce four-year terms for the House probably leaves one with little option other than to double the Senate’s term.33 It is perhaps relevant to note that eight-year upper house terms were introduced in four states during the period 1972 and 1987. It is sometimes

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stated that extending senators’ terms in this way would weaken party discipline, but there is no evidence from the states that this would be so. Senators seeking re-election would still need party preselection, and an undisciplined performance would not be the way to guarantee continued party support. The Australian Labor Party has taken the view that it would be preferable to make this change if there were also the introduction of simultaneous elections, as well as a reduction in the power the Senate holds to destroy a government that controls the House of Representatives.34 The journalist Paul Kelly is another who has argued against such a change while ever Senate powers remain intact: ‘Any proposal to marry the Senate’s existing powers with even less frequent Senate elections is the worst [proposal] imaginable’.35 The question of Senate terms is therefore uncertain, and it may prove to be the area in which it is most difficult to get wide enough support to make any alteration in the term of the national lower house.

Five-year maximum terms? If an argument in favour of lengthening the House of Representatives term is that this would give government and business longer to plan and introduce policies, should the maximum term be increased from three to five years? The lower houses in Ireland, France, Canada and the United Kingdom all have terms of this length. Table S3.1 shows that more nations have five-year parliaments than any other term. Five-year terms have not been unknown in Australia. In the 19th century five of the colonies had five-year terms at some stage. Legislation passed in Tasmania in 1936 introduced such a term for the House of Assembly, and this remained in place until 1969. In 1937 South Australia also introduced five-year terms, though it reverted to the three-year term two years later, following public criticism. Some Australians have argued for a five-year term for the national lower house. As early as 1925, William Higgs MHR (Nationalist) noted that the average length of a parliament was two and one half years, and spoke of the difficulties this caused for members. The time spent on electioneering made the

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Year Book Australia 2003

performance of parliamentary duties, particularly in such a large country, extremely difficult. Higgs called for an increase in House terms to five years and Senate terms to ten years, asserting that:

noted that it was ‘in the control of members’ to alter their fixation with preparing themselves for the next Commonwealth election. Their concern was with democracy:

Trade, commerce, and industry would profit by the change, and members of Parliament would be able to give more time to the study of Commonwealth problems.36

The greater the control of Parliament by the electors the better for the people, and the lengthening of the term of Parliament tends to weaken this control.41

In 1955 a member of the House of Representatives, WM Bourke (Australian Labor Party–Anti-Communist) also made a call for a five-year term.37 Elaine Thompson of the University of New South Wales believes a move from three- to five-year terms would be too great a change for the electorate to accept, primarily because of concerns about a perceived reduction in the democratic elements of the political system. At the same time, she acknowledges that five-year terms might be expected to give greater stability and improved government ‘efficiency’.38 It is noteworthy that there have been 20 elections in Australia in the past 50 years, compared with only 13 in the United Kingdom and 16 in Canada. As Higgs appreciated, five-year House terms also open up the particularly awkward question of what to do with Senate terms. Should they be ten years, with half retiring every five years? Five-year terms in parallel with House terms? Equal to two House terms? Any of these would probably be seen as too long, creating a Senate that was said to be ‘out of touch’ with the electorate. If the present fixed Senate term of six years was retained, this would result in the holding of many more elections, something that would fly in the face of the aim of reducing the number of elections. On balance, it is unlikely that many members of parliament would support an increase from threeto five-year terms. Even in the United Kingdom there has been a significant amount of sentiment expressed that the House of Commons term of a maximum five years is too long.39

Should the three-year maximum term be retained?40 In a dissenting note to the 1929 Royal Commission on the Constitution, three members refused to accept the need for any increase in the House of Representatives term. They claimed that the three-year term was ‘quite long enough’, and

Former prime minister Keating (Australian Labor Party) has also referred to the question of democracy, claiming that the Australian democratic system is ‘very robust’ because ‘every three years or less’ the voters have a chance to change the parliament, and hence the government.42 The historian Geoffrey Blainey believes it would be a ‘harsh penalty’ to deprive the Australian people of the right after three years to dismiss an incompetent or lacklustre government.43 Similarly, Senator Brian Harradine (Independent) has said that ‘it is important that the people are given the chance regularly to audit what the government is doing by voting it in or out of office’. Harradine would seek to create a climate in which parliaments are allowed to run their full three-year term.44 Keating has also described senators as ‘substantially unrepresentative of both the polity and the wider community’, due to each state having an equal number of senators. He believes that to lengthen the Senate term would take it further from political relevance, particularly later in an eight-year term.45 Others have observed that the solution to the ‘problem’ of shortened parliamentary terms lies with the prime ministers who have often reduced the term of Parliament by calling early elections. The Clerk of the Senate, Harry Evans, has said that if prime ministers could restrain themselves, at a stroke we would have longer, and therefore, more stable parliaments. Nearly 20 years ago, three political scientists felt able to assert that it had ‘never’ been the case that Australians were bothered by elections every three years. The problem, they claimed, lay with prime ministers who did not allow the Parliament to last the full term: ‘It is the constant possibility of premature parliamentary elections that is so destructive of good government’.46 One difficulty with moving from the three-year term is the lack of evidence that such a change would actually bring the

Chapter 2 — Government

benefits that are claimed. Surprisingly, there appears to have been no research undertaken on the consequences of the change to four-year terms that occurred in four of the Australian states in the 1970s and 1980s. There is also a lack of international evidence in regard to this aspect of legislative behaviour, no doubt because political scientists have regarded it as a settled question in most countries. Even were research to be done, however, the findings could only be speculative. Claims are made about the deleterious impact of three-year terms upon the Australian economy, but as far as can be ascertained there is no methodologically sound study that establishes, without doubt, that economic performance has been materially affected by a legislative term. Australian business interests have not made any effort to substantiate their claims with hard evidence. A second problem relates to the contention that the existing term has a deleterious impact upon legislative performance. Critics point to the rush to legislate before the end of a parliament, but seem not to consider the possibility that the shorter term acts as a strong motivating instrument to get planning under way and legislation passed promptly. In addition, extending the House term to four years would not necessarily see the improved pursuit of medium- and long-term planning strategies. In many cases lengthy periods may be required after the passage of legislation before policies are seen to be producing results. The required lead time may be far longer than four years and the difference between three- and four-year terms may therefore be quite marginal. In summary, although there is a lot of sentiment in favour of the four-year term, most of it is based on speculation rather than hard evidence. Some, at the least, might prefer to stick with what is known rather than take the punt on longer terms.

Modifying Westminster — four-year fixed terms? Some argue that the power to choose the election date gives a substantial advantage to the Prime Minister, allowing ‘arbitrary, partisan and capricious early elections’.47 It is clear that while the House has provision for a maximum term, politics is going to remain in the equation, whether the term is three or four years. It has been argued that a four-year maximum term is:

69

The worst of all possible worlds. It gives an extra year to a government without accountability to the people and yet the opportunity for a prime minister to call an early election at will still remains.48

Accordingly, it can be argued that the only way to eradicate this problem is to introduce fixed terms. Even in the United Kingdom there have been occasional proposals to introduce fixed term parliaments to remove this prime ministerial prerogative.49 In her study of the length of lower house terms, Thompson saw merit in three-year fixed terms, primarily on the grounds of their retaining ‘more accountability’, with governments being ‘sensitive to the need for re-election throughout their term, rather than just at the end’.50 There has, though, been more interest in four-year fixed terms. Former South Australian attorney-general Chris Sumner (Australian Labor Party) is one who sees an important step forward in the removal of the partisan advantage enjoyed by incumbents in their choice of election date.51 Evans has pointed out that a change to fixed terms would also help provide a solution if the Supply problems of 1975 were to be repeated. The insertion into the Constitution of a fixed House term, that could only be shortened by a motion constitutionally identified as a motion of no confidence, would withdraw the usefulness of blocking or rejecting Supply as a parliamentary tactic.52 The Australian Labor Party developed an interest in fixed terms in the late 1970s, and the New South Wales Labor Opposition supported the change to fixed terms in the 1995 referendum held in that state.53 Former national leader, Gough Whitlam, still calls for fixed four-year terms for every Australian parliament, Commonwealth and state.54 Whitlam has warned that the rising costs of campaigning leaves the process open to corruption: ‘The cost of campaigns is the greatest source of political corruption confronting the Western democracies’. He wonders if creating fixed terms of parliaments would lessen the possible danger.55 One Labor proposal for fixed terms was in fact passed by the Senate in November 1982. This particular model involved simultaneous House and half-Senate elections on the third

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Saturday in November every third year. The only exceptions to this would be (a) when a government was defeated in the House on a formal vote of no confidence, and (b) when a double dissolution was called following a deadlock between the houses. If an extraordinary election were forced by either (a) or (b), the incoming government would be able only to see out the term of its predecessor to the normal date for a general election.56 Geoffrey Lindell, Professor of Law at Melbourne University, has described what he sees as the advantages of such a system:57 n

While not taking away any of the Senate’s powers over money bills, it would make their use irrelevant, for blocking of such legislation by the Senate could not force an early election.

n

There would be a reduction in the opportunities for the use of ‘vice-regal discretion’ as occurred in 1975.

n

A prime minister would not be able to manipulate election dates for reasons that are ‘purely arbitrary, partisan or capricious’.58

By contrast, some Coalition politicians, such as former prime minister Malcolm Fraser and Peter Durack (both Liberal Party), have been determined opponents of fixed terms, seeing them as ‘inappropriate, ineffective and dangerous’. In particular, they believe that fixed terms do not sit well with the Westminster system of government where ‘it is axiomatic that a government be able to appeal to the electorate at any time’ when it is felt to be necessary.59 It is this point about the modification of the Westminster model that is of great concern to some critics. Former chief justice Dixon has pointed out that in our system of government, we ‘insist on the dependence of Cabinet upon Parliament’. Furthermore, our governmental arrangements provide that ‘if a difficulty arises between the executive government and Parliament, it shall be resolved by an appeal to the people’.60 This is not possible under fixed term arrangements, except when the constitutional change is written so as to allow for earlier elections if a substantive no-confidence motion is passed.61 Former law lecturer, and later Labor minister for justice, Michael Tate, is another who has expressed doubts, focusing on the conventions of responsible government. He has particularly wondered what such a change would do to the office of the Prime Minister. At present a Prime Minister can go to the people if

circumstances warrant it, and Tate believes this power ought not be thrown away lightly. For example, if a Prime Minister is being frustrated by the Opposition, ‘he ought to be able to go to the people and renew his mandate’ — it is what Professor Don Aitkin has described as the ‘flexibility’ that exists in the Westminster model.62 David Clune of the New South Wales Parliamentary Library has noted other consequences. He maintains that if fixed terms are introduced then the Vice-Regal reserve powers have to be excluded, or else their existence must be acknowledged in the relevant legislation and constitutional amendment. The New South Wales Parliament took the latter option when fixed terms were introduced in that state, arousing strong opposition. Clune also notes that under a fixed term ‘a government could be fixed to an election in inauspicious or unfortunate circumstances that militate unfairly against its chances of re-election’.63 Not all on the Coalition side of politics are opposed to fixed terms. In New South Wales the change to fixed terms seems to have been accepted by the Liberal and National Parties, with no pressures to repeal the legislation. Former Liberal senator David Hamer has suggested that the idea of a fixed three-year term — with the unchanged fixed Senate term of six years — would be a way of avoiding the criticism that would be heard if the Senate term were increased to eight years.64 An interesting point made by the English academic, David Butler, that is usually not referred to in the Australian context, relates to the issue of the cost of elections. Butler has noted that flexible election dates — as in Australia — tend to produce shorter, and therefore cheaper, campaigns. Uncertainty over the date of an election means that there is usually little to be gained by an Opposition beginning to campaign well before the Prime Minister’s announcement.65 The Labor ‘mini-campaign’ of 1971 remains the only example in Australian electoral history. By contrast, a well-known feature of United States of America national elections — all of which are fixed term — is just how long the campaigning can take. This is not only because of fixed terms, but is certainly exacerbated by that aspect of the system.

Chapter 2 — Government

Writing nearly 20 years ago, Uhr claimed that while few Commonwealth MPs opposed four-year terms, ‘there is a considerable number of opponents to the notion of a fixed parliamentary term’.66 The position is probably still as Uhr described it, despite the Joint Standing Committee on Electoral Matters receiving a number of submissions in favour of fixed terms in recent years.

71

n

a bill ‘declared by resolution of the House of Assembly’ to be of special importance is passed by the House, but rejected by the Legislative Council

n

the governor is acting in pursuance with the double dissolution provisions of the Constitution Act 1934 (SA).

A mixed system?

As with Victoria, Legislative Council terms are equivalent to two terms of the Assembly, with half of the Council resigning at each election.70

In an effort to find a path through the thicket, some support has been heard for a mixed constitutional arrangement, which would combine elements of both maximum and fixed-term arrangements. The model usually referred to would give the House of Representatives a maximum term of four years, with the House not dissolvable during the first three years after an election. This restriction on early dissolution would be subject to some exceptions.67 This is the constitutional arrangement introduced in Victoria in 1984 and South Australia in 1985, and it has been recommended for introduction in Queensland by both the Queensland Constitutional Review Commission and the Parliament’s Legal, Constitutional and Administrative Review Committee.68

It can be suggested that this constitutional arrangement brings together several major benefits. Longer terms would presumably have the effect of bringing more stability and predictability to the political system, but a Prime Minister would still have the flexibility of choosing the election day, albeit only in the fourth and final year of each parliament. The period of uncertainty and indecision that inevitably affects governments prior to an election could be restricted to just the last quarter of a parliamentary term.71 The Melbourne Age has suggested that this model is a ‘useful’ guide to reform in Canberra, combining, as it does ‘the benefits of certainty and consistency of tenure without denying political parties their craving for flexibility’.72

In Victoria the Legislative Assembly cannot be dissolved during the first three years unless:

Senator Richard Alston (Liberal Party) has described this model as having ‘considerable appeal’, for he sees it as protecting the staggered electoral arrangement for the Senate which he describes as a safeguard for Senate independence.73

n

the Assembly passes a resolution expressing a lack of confidence in the government

n

the Legislative Council fails to pass, or rejects, an appropriation (supply) bill for ordinary annual services within one month of its being sent from the Legislative Assembly

n

a deadlock between the two houses develops over a bill deemed by the Legislative Assembly to be a ‘Bill of special importance’.

Legislative Council terms are equivalent to two terms of the Assembly, with half of the Council resigning at each election.69 In South Australia the Legislative Assembly cannot be dissolved during the first three years unless: n

a motion of no confidence in the government is passed in the House of Assembly

n

a motion of confidence in the government is rejected by the House of Assembly

A note on implementation Despite there being much support for four-year terms, it is by no means certain that voters would support the question in a constitutional referendum. Although a referendum for four-year terms passed comfortably in New South Wales in 1981, four-year term referenda were defeated nationally in 1988 and in Queensland in 1991. It seems that if an amendment on any topic is to be accepted by the voters, it needs to appear as non-controversial as possible. There certainly needs to be no division between the major parties.74

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Year Book Australia 2003

In regard to any proposal to increase House of Representatives terms, two obvious objections would be that: n

parliamentarians were merely seeking to give themselves longer parliamentary terms

n

the government of the day hoped to benefit from the change.

n

There seems to be little support for five-year terms.

n

The main opposition to an extended term is likely to be based on democratic grounds.

n

There is a great deal of uncertainty about fixed parliamentary terms, largely on the basis of the possible undermining of the Westminster aspects of our political system, though the recent change to fixed terms in New South Wales gives an opportunity to assess this.

n

Some observers have wondered about the merits of the Victorian and South Australian models which combine maximum term and fixed term elements.

On the first, there would seem to be little that could be done to lessen any possible impact this might have in a society that is said to be endemically suspicious of politicians. In regard to the second objection it would probably be prudent to have the amendment worded so that the change could not be waved away simply as a change being made solely to benefit the government of the day. Perhaps the first extended term should not begin for the following House of Representatives, but for the next after that?

Senate terms n

Although some see it as less than ideal, many supporters of four-year House of Representatives terms support an increase in Senate terms to eight years, either fixed or maximum.

n

However, critics from within both the Coalition and the Labor Party are doubtful about longer Senate terms on democratic grounds. Some in the Labor Party would support such a change only if there was a parallel reduction in Senate powers.

n

Reduction of Senate terms would be controversial, largely because of a desire to retain staggered elections.

n

There is probably no support for a four-year/six-year House and Senate term pattern.

In conclusion What are the main aspects of the debate on extended terms for the House of Representatives?

Commonwealth elections n

Some Australian opinion-leaders believe the number of Commonwealth elections needs to be reduced, on the grounds of cost and governmental and economic stability.

House of Representatives terms n

Most of those calling for longer House of Representatives terms over the years have agreed on the need for four-year maximum terms.

Endnotes 1. Appendix to the Journals of the House of Representatives of New Zealand 1986–87, vol. IX, p. 160. 2. Inter-Parliamentary Union, Parliaments of the World: A Comparative Reference Compendium, Gower, Aldershot, 2nd ed., 1986, vol. I, p. 18. 3. Report of the Royal Commission on the Constitution, Parliamentary Papers, 1929–30–31, vol. II, part 1, p. 268, p. 41. 4. Review of Commonwealth Administration, Report January 1983, Canberra, AGPS, 1983, pp. 24–5.

Chapter 2 — Government

5. Minutes of Proceedings, Official Record of Debates and Biographical Notes on Delegates and Representatives attending the Australian Constitutional Convention held in the House of Assembly Chamber Parliament House, Adelaide, 26–29 April 1983, Adelaide, Government Printer, 1983, p. 322. 6. Final Report of the Constitutional Commission 1988, vol. 1, Canberra, AGPS, 1988, p. 195. 7. Sydney Morning Herald, 1 October 1998. 8. Senate, Debates, 4 April 2000, p. 13282. , 5.128, p. 151. 9. Joint Standing Committee on Electoral Matters, The 1998 Federal Election, June 2000. 10. ‘Time for Federal four-year terms’, Sydney Morning Herald, 10 April 2002; ‘Four-year terms? Let’s do it’, Age, 14 April 2002. 11. Gerard McManus, ‘Four-year terms win support’, Sunday Herald Sun, 14 April 2002. 12. Constitutional Commission, ‘Term of Parliament: three years or four?’, Background Paper No. 2A, 1987, p. 8. 13. Fred Gruen & Michelle Grattan, Managing Government. Labor’s Achievements & Failures, Longman Cheshire, Melbourne, p. 224. 14. Campbell Sharman, ‘The Referendum Results and Their Context’, in Brian Galligan & JR Nethercote (eds), The Constitutional Commission and the 1988 Referendums, Canberra, Centre for Research on Federal Financial Relations and Royal Australian Institute of Public Administration (ACT Division), 1989, pp. 106–107. 15. Report of the Royal Commission on the Constitution, Parliamentary Papers, 1929–30–31, vol. II, part 1, p. 268, p. 41. 16. Business Council of Australia, Towards a Longer Term for Federal Parliament, Melbourne, (1987), p. 10. 17. Queensland Constitutional Review Commission, Report on the Possible Reform of and Changes to The Acts and Laws that relate to the Queensland Constitution, February 2000, pp. 39–40. 18. John McMillan, Haddon Storey & Gareth Evans, Australia’s Constitution. Time for change?, Allen and Unwin, Sydney, 1983, p. 261. 19. ‘A Four Year Term for Federal Parliament’, Business Council Bulletin, No. 30, January 1987, p. 11; Appendix to the Journals of the House of Representatives of New Zealand 1986–87, vol. IX, p. 156. 20. Business Council of Australia, op. cit., p. 1. 21. Ron Brunton, ‘Longer terms denigrates voters’, Courier-Mail, 26 February 2000. 22. For the Australian Electoral Commission’s guess at what would have been saved if four-year fixed terms had been in place since 1984, see Joint Standing Committee on Electoral Matters, The 1998 Federal Election, June 2000, , 5.127, p. 151. 23. Quoted, Business Council of Australia, op. cit., p. 7. 24. J Snow (ALP), House of Representatives, Debates, 17 November 1983, p. 2851; see also quote by unnamed New South Wales MP, in Tony Smith, ‘According to script: the media and the 1999 New South Wales State Election’, Legislative Studies, vol. 14, no. 2, Autumn 2000, p. 35. 25. Australian Constitutional Convention 1982, Standing Committee ‘D’, Fourth Report to Executive Committee, vol. 1, 27 August 1982, p. 60. 26. Kathryn Cole, ‘Senate Terms’, Law and Government Group, Parliamentary Research Service, Parliamentary Library, Parliament of Australia, 8 November 1990, p. 2. 27. Age, 8 March 1983.

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28. James Crawford, ‘Comment on Professor Cooray’s Paper’, in James Crawford & Stephen Odgers (eds), Change the Constitution?, University of Sydney, Committee for Post-Graduate Studies in the Department of Law, Sydney, 1988, p. 99. 29. R Withers, Senate, Debates, 13 October 1983, p. 1549. 30. David Clune, New South Wales Parliamentary Library, to author, 20 July 2000. 31. Canberra Times, 1 September 1998. 32. P McGauran (LP), House of Representatives, Debates, 17 November 1983, p. 2860; see also A Griffiths (ALP), House of Representatives, Debates, 17 November 1983, pp. 2862–3, A Lewis (LP), Senate, Debates, 13 October 1983, p. 1552. 33. J Spender (LP), House of Representatives, Debates, 20 October 1983, p. 2039. 34. M Young (ALP), House of Representatives, Debates, 18 March 1982, p. 1138; see also Australian Labor Party Platform, Resolutions and Rules as approved by the 37th National Conference, Hobart 1986, p. 36; Kim Beazley’s Plan for the Nation, n.d., p. 130. 35. Australian, 8 April 1987. 36. Report of the Royal Commission on the Finances of Western Australia, as Affected by Federation, Parliamentary Papers, 1925, vol. II, part 2, pp. cxxv–cxxvi. 37. W Bourke (ALP-Anti-Communist), House of Representatives, Debates, 4 October 1955, p. 1216. 38. Elaine Thompson, ‘Tenure of Parliament’, in Fixed-Term Parliaments, Australasian Study of Parliament Group, Third Annual Workshop, 29–30 August 1981, Canberra, p. 104. 39. Robert Blackburn, The Meeting of Parliament, Dartmouth, Aldershot, 1990, pp. 25–7. 40. For arguments used in regard to a single house parliament, see Legislative Assembly of Queensland, Legal, Constitutional and Administrative Review Committee, Review of the Queensland Constitutional Review Commission’s recommendation for four year parliamentary terms, Report No. 27, July 2000, pp. 18–24. 41. MB Duffy & DL McNamara (TR Ashworth concurring), Report of the Royal Commission on the Constitution, Parliamentary Papers, 1929–30–31, vol. II, part 1, p. 304. 42. ‘A Powerful Choice’, ABC TV Facilities Marketing and Corporate Production video, 1994. 43. Australian, 28 May 1988. 44. B Harradine (Ind), Senate, Debates, 13 October 1983, p. 1561. 45. Michelle Grattan, ‘Eight-year terms? The Senate is already full of unrepresentative time-servers, scoffs Keating’, Sydney Morning Herald, 11 April 2002. 46. Harry Evans, Constitutionalism and Party Government in Australia, Australasian Study of Parliament Group Occasional Paper No. 1, August 1988, p. 64; Elaine Thompson, Donald Horne & Sol Encel, Legislative Studies Newsletter, no. 1, April 1980, p. 9. 47. Dean Jaensch, Getting Our Houses in Order. Australia’s Parliament: how it works and the need for reform, Penguin, Ringwood, 1986, p. 172. 48. Thompson, Horne & Encel, op. cit., p. 9. 49. Kenneth Bradshaw & David Pring, Parliament & Congress, Quartet Books, London, 1973, pp. 81–2. See, for example, former Conservative Minister, Sir Ian Gilmour, Times (London), 22 April 1970. 50. Thompson, op. cit., pp. 105, 110–11. 51. A summary of Sumner’s argument is reproduced in Parliament of New South Wales, The Joint Select Committee on Fixed Term Parliaments, Report on the Constitution (Fixed Term Parliaments) Special Provisions Bill 1991, December 1991, pp. 8–9. 52. Evans, op. cit.

Chapter 2 — Government

53. See MR Egan (ALP), New South Wales, Legislative Council, Debates, 21 May 1993, p. 2555. Labor’s support was tepid, however, and although the party recommended a YES vote, it did not actively campaign for it. 54. Financial Review, 10 April 2000. 55. Sydney Morning Herald, 24 January 2000. 56. Bob Hawke & Gareth Evans, Labor and Quality of Government, FPLP Task Force on Government Administration, 9 February 1983, p. 26. 57. Geoffrey Lindell, ‘Fixed-term parliaments: the proposed demise of the early federal election’, Australian Quarterly, vol. 53, no. 1, Autumn 1981, pp. 16–17. 58. McMillan, Storey & Evans, op. cit., p. 264. 59. ibid, pp. 265–6. 60. Sir Owen Dixon, Jesting Pilate And Other Papers and Addresses, Law Book Company, Melbourne, 1965, p. 107. 61. For a list of arguments against fixed terms, see Philip Ruddock, ‘Australia: Fixed-term Parliaments debate’, Parliamentarian, vol. 63, no. 4, October 1982, pp. 314–15. 62. M Tate, Senate, Debates, 12 October 1983, p. 1503; Professor Don Aitkin, Canberra Times, 6 July 1987. 63. Clune, op. cit. 64. D Hamer, Senate, Debates, 12 October 1983, p. 1507. 65. David Butler, ‘Elections’, Blackwell Encyclopaedia of Political Science, Blackwell, Oxford, 1991, p. 190. 66. John Uhr, ‘Parliamentary Reform in Canberra’, Australian Quarterly, vol. 54, no. 3, Spring 1982, p. 222; Joint Standing Committee on Electoral Matters, The 1998 Federal Election, June 2000, 5.127, pp. 150–1. 67. The Constitutional Commission supported this scheme. See Final Report of the Constitutional Commission, 1988, vol. 1, pp. 195–210. 68. Queensland Constitutional Review Commission, Report on the Possible Reform of and Changes to The Acts and Laws that relate to the Queensland Constitution, February 2000, recommendation 5.2; Legislative Assembly of Queensland, op. cit., pp. 48–9. 69. Constitution (Duration of Parliament) Act 1984, ss. 4, 5, 7. 70. Constitution Act Amendment Act 1985, ss. 3, 4; see also Constitution Act 1934, s. 41. 71. Queensland Parliament, Legal, Constitutional and Administrative Review Committee, ‘Four Year Parliamentary Terms’, Background Paper, April 2000, p. 2. 72. Sunday Age, 9 June 1998. 73. Richard Alston, ‘The No Case’, in Brian Galligan & JR Nethercote (eds), The Constitutional Commission and the 1988 Referendums, Canberra, CRFFR and RAIPA, 1989, p. 88. 74. Ruddock, op. cit., p. 316.

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3

International relations This chapter was contributed by the Department of Foreign Affairs and Trade, and AusAID.

Introduction

79

Australia’s credentials and place in the international system

79

Australia’s bilateral relationships

80

United States of America

80

Japan

80

China

80

Indonesia

81

Korean Peninsula

81

Association of South East Asian Nations

81

East Timor

81

New Zealand

82

The South Pacific

82

Europe

82

South Asia

82

Canada and Latin America

83

The Middle East and Africa

83

Australia’s security interests

83

Australia’s economic interests

83

Australia’s engagement with the United Nations system

84

The Commonwealth

84

Australia’s human rights policy

85

The role of Department of Foreign Affairs and Trade in Australia’s international relations

85

Location and number of Department of Foreign Affairs and Trade staff

85

Services to the Australian community

86

Public information services

86

The Australian Overseas Aid Program

87

The Australian Agency For International Development

87

Key sectors of the aid program

87

Country programs

87

Global programs

89

Non-government organisation activities and volunteer programs

90

Australian Centre for International Agricultural Research

90

The network of Australian diplomatic and consular missions overseas

90

Bibliography

93

Chapter 3 — International relations

Introduction Australia’s international relations are driven by its core national interests — the security of the Australian nation and the prosperity and wellbeing of the Australian people. Australia’s international relations give high priority to: the Asia-Pacific region; bilateral relationships with the United States of America, Japan, Indonesia, China and other key partners; international trade liberalisation; and support for the World Trade Organization (WTO) and Asia-Pacific Economic Cooperation (APEC). Australia’s global interests require broad international engagement. The priority Australia attaches to its relationships with the countries of the Asia-Pacific region does not diminish the important interests Australia pursues in the Americas, Europe and elsewhere. In addition to maintaining and developing strong bilateral relationships, Australia advances its international interests by participating in regional and global institutions and forums. For example, the negotiation of multilateral trade agreements enhances access to foreign markets for Australian exports. Australia also has a strong national interest in guarding against the spread of weapons of mass destruction, especially in the Asia-Pacific region, and works to achieve this objective through international regimes dealing with non-proliferation and arms control. Our international relations are also shaped by economic globalisation. Globalisation provides opportunities for internationally competitive economies, but also brings challenges for political and economic management. Globalisation blurs the division between foreign and domestic policy, increases competitive pressures in markets, and makes globally based trade rules and disciplines even more important. Australia’s engagement with Asia is extensive and has been built over many decades. Australia continues to seek closer engagement with Asia because of the profound mutual benefits that flow from our relations with countries of the region. What happens in our own region affects us more deeply and more quickly than events that occur in most other areas of the world. Australia has substantial trade and economic interests at stake in the region. Despite the global economic downturn, Australia’s trade with regional economies has remained stable or continued to grow. East Asia takes more than 50%

79

of all our merchandise exports and others are transported through the region to markets elsewhere in the world. The Government is preparing to publish Australia’s second foreign and trade policy White Paper, Advancing the National Interest following significant changes to Australia’s international environment since the first White Paper of 1997. Advancing the National Interest will examine how Australia can best use its considerable credentials and attributes to advance its national interests in an increasingly globalised and fluid international environment.

Australia’s credentials and place in the international system In its international relations, Australia uses its assets — economic, strategic and cultural — as well as its reputation as a responsible, constructive and practical country. The values which Australia brings to its international relations are the values of a liberal democracy. These have been shaped by national experience and given vigour through cultural diversity. They include the rule of law, freedom of the press and the accountability of the government to an elected parliament. Australia has a modern industrial economy with a sophisticated manufacturing and services base. The Australian economy has been performing strongly, despite economic downturn and slower growth in some of our leading export markets. Over the past decade, Australia has been the sixth fastest growing economy in the Organisation for Economic Co-operation and Development (OECD), outperforming the United States of America, Canada and most countries in the European Union (EU). Australia has a strong skills base, high quality education and training institutions, advanced physical infrastructure, and high rates of information technology use. Strong civil institutions underpin a free society and encourage free enterprise. Australia’s cultural diversity gives Australian society a vigour and capacity to adapt rapidly to new opportunities. It is also a rich source of language and other skills which help us do business in a global economy.

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Australia’s defence capability is significant in regional terms. Australia has a broadly based relationship with the United States of America, whose strategic engagement and commitment underwrite the stability of East Asia.

Australia’s bilateral relationships As a nation with global interests, Australia deals with countries in many regions. The countries which engage Australia’s interests most substantially are those which influence the strategic and economic environment. These include the three major powers and largest economies of the Asia-Pacific region — the United States of America, Japan and China — and Australia’s neighbour, Indonesia. Australia also has significant relationships with the other states of the Association of South-East Asian Nations (ASEAN), the EU and its member states, the Republic of Korea and, in the South Pacific, New Zealand and Papua New Guinea (PNG).

United States of America The relationship between Australia and the United States of America is based on a strong commitment to democracy, security and an open trading system. The relationship complements and reinforces Australia’s practical commitment to the Asia-Pacific region. Within the alliance of the ANZUS Treaty, Australia and the United States of America cooperate closely in a range of areas to promote their own security and to contribute to broader regional and global security. The 50th anniversary of the signing of the Treaty occurred in 2001. Australia invoked the Treaty for the first time in September 2001 following the terrorist attacks in the United States of America. The bilateral relationship is underpinned by a program of high-level visits and consultations. The Australian Prime Minister visited the United States of America three times in financial year 2001–02. Australia’s and the United States of America’s shared strategic interests and values are complemented by dynamic trade and investment links. The United States of America is one of Australia’s leading trading partners and the most important in terms of two-way services trade and investment flows. The United States of America and Australia are discussing the possibility of negotiating a bilateral free trade agreement. People-to-people ties, including educational and cultural links, are extensive and wide-ranging.

Japan Japan is the world’s second largest economy and, as such, plays a primary economic and political role in our immediate region. Australia works hard to encourage close dialogue with Japan on a wide range of economic, political and strategic issues and the development of policies which are mutually reinforcing. Japan is Australia’s leading merchandise trading partner, accounting for 16% by value of our total merchandise trade in 2001–02. It is a significant investor in Australia and our second largest source of in-bound tourism behind New Zealand. Like Australia, Japan supports the long-term strategic engagement of the United States of America in the Asia-Pacific region. Japan also shares our interest in advancing APEC as a primary vehicle for economic cooperation in the Asia-Pacific region. The Australian Prime Minister’s visit to Japan in August 2001 and the Japanese Prime Minister’s visit to Australia in May 2002 helped build on the strong links between the two countries. Australia and Japan have agreed to discuss deeper economic linkages, including through a possible bilateral trade and economic agreement.

China China’s importance to Australia grows along with China’s increasing economic, political and strategic engagement with the Asia-Pacific region and the global economy. China’s relations with the countries of the Asia-Pacific region, particularly Japan and the United States of America, play a vital role in shaping the security context for the region. Australia encourages and supports Chinese participation in organisations which promote dialogue and cooperation on regional security issues. The 30th anniversary of the establishment of diplomatic relations between Australia and China occurred in 2002. The Australian Prime Minister visited China in May 2002. In March 2002 the Chinese Foreign Minister visited Australia, the first visit by a Chinese Foreign Minister since 1992. The Chairman of China’s National People’s Congress, visited Australia in September 2002. Over the last 10 years China has moved from being the tenth to the third largest merchandise trade partner with Australia, and the trade and investment relationship is expanding. Australia and China have agreed to negotiate a framework agreement which will explore opportunities to broaden and deepen the economic relationship. New opportunities to broaden the trade and

Chapter 3 — International relations

investment relationship between the two countries should also flow from China’s accession to the WTO in November 2001. In August 2002 the Chinese Government awarded a major gas supply contract to an Australian consortium, the largest foreign contract ever awarded to an Australian company. Under the agreement, which is worth up to $25b, Australia will supply three million tonnes of liquid natural gas each year for 25 years beginning in 2005. Within the parameters of the one-China policy Australia also pursues important economic and trade interests with Taiwan, our ninth largest merchandise trading partner.

Indonesia As one of Australia’s nearest neighbours, the relationship with Indonesia has long been one of our most important. The relationship is based on government-to-government links, expanding trade and investment and regional cooperation. Australia also maintains a large-scale bilateral program of economic, technical and humanitarian assistance to Indonesia. Productive, high-level ministerial contact in recent years has helped Australia and Indonesia work together on regional challenges. The Australian Prime Minister visited Indonesia twice in 2001–02. In February 2002 the Australian and Indonesian foreign ministers jointly chaired a Regional Ministerial Conference on People Smuggling, Trafficking in Persons and Related Transnational Crime. Australia also facilitated the inaugural trilateral ministerial meeting between Indonesia, East Timor and Australia in 2002. This meeting marked an important step toward improving regional stability and security. Indonesia is Australia’s tenth largest market for merchandise exports and our eighth largest source of imports. In 2001–02, two-way merchandise trade reached its highest point.

Korean Peninsula Relations between Australia and Republic of Korea (ROK) have become increasingly complementary and productive in recent years, reflecting a growing commonality of interests, shared emphasis on the importance of the Asia-Pacific region and mutual recognition of the benefits of close cooperation. The ROK is an important trading partner for Australia and the third largest merchandise export market. The Fourth Australia–Korea Forum, hosted by Australia in July 2002, built on the strong relationship between the two countries.

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Australia has a vital interest in rapprochement on the Korean Peninsula and welcomes high-level dialogue between the ROK and the Democratic People’s Republic of Korea (DPRK). Working closely with key regional partners, Australia has promoted stability in North Asia by engaging the DPRK in political dialogue and providing humanitarian assistance through multilateral organisations. Australia resumed diplomatic relations with the DPRK in May 2000 and the DPRK opened an embassy in Canberra in May 2002.

Association of South East Asian Nations (ASEAN) ASEAN is the key regional political institution in South-East Asia and has been instrumental in promoting regional political harmony and stability for over 30 years. Australia values greatly its close relationship with ASEAN as a grouping, and with its member states (Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam). Australia’s relations with ASEAN cover trade and investment, as well as cooperation in the technical, cultural, defence and educational fields. Australia is also involved in the ASEAN Regional Forum, which promotes regional security dialogue and confidence building, as well as the ASEAN Post-Ministerial Conference. Australia’s trade with ASEAN countries grew strongly in 2001–02, surpassing levels achieved before the financial crises hit the region in 1997.

East Timor As the world’s newest nation and close neighbour, East Timor is important to Australia. Australia worked closely with the United Nations (UN) and the East Timorese people in support of East Timor’s stable transition to independence in May 2002, and continues to play a leading role in the UN post-independence mission in East Timor. Australia established full diplomatic relations and opened an embassy on the first day of independence. The Australian Prime Minister attended the independence celebrations and the President of East Timor visited Australia in June 2002. Australia and East Timor signed the Timor Sea Treaty which provides an equitable basis for development of oil and gas resources in the Timor Sea. The Treaty will promote stability and economic development for East Timor. Australia is also one of East Timor’s largest aid donors.

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Year Book Australia 2003

New Zealand Australia and New Zealand have traditionally been natural allies and friendly rivals. Migration, trade and defence ties have helped shape the relationship. More than a million Australians and New Zealanders crossed the Tasman Sea in 2001 as tourists, for business purposes, or to visit family members. The Australia New Zealand Closer Economic Relations Trade Agreement (CER), which took effect in 1983, created a free-trade area between the two countries. New Zealand is Australia’s fifth largest merchandise trading partner. At a government-to-government level, the relationship is more extensive than with any other country. The respective prime ministers hold formal talks frequently; foreign ministers have met formally twice yearly for a number of years and the trade and defence ministers meet their counterparts annually.

The South Pacific Australia has a strong interest in the stability and economic viability of the island states of the Pacific. These countries face significant development challenges and, in some cases, political instability. Australia is the largest donor of development assistance to the South Pacific and is a major trade and investment partner for these countries. Australia supports local efforts to advance development and, where necessary, restore stability, in cooperation with other countries and institutions that have a long-term interest in the region. Australia pursues a close, constructive and friendly bilateral relationship with PNG aimed at promoting political stability, effective governance and economic self-reliance there. Australia provided training and assistance in support of the 2002 elections. We worked quickly to engage the newly elected government and underline our commitment to support ongoing reform efforts. Australia provides civilian and defence force personnel to the multinational Peace Monitoring Group in Bougainville, which is supporting the peace process paving the way to autonomy for the province. Australia provided substantial assistance to the Solomon Islands in the wake of unrest in 2000. Australia facilitated ceasefire and peace talks and led an International Peace Monitoring Team which supported implementation of a peace agreement. Australia is helping the Solomon Islands Government address continuing problems of lawlessness and economic decline.

In October 2001, following democratic elections in Fiji, Australia lifted bilateral sanctions introduced after the May 2000 coup and normalised the bilateral relationship.

Europe Australia has close ties with many countries in Europe. The EU is a leading participant in key forums such as the G8 (Group of Eight), and the states of Europe make valuable contributions to leading multilateral organisations such as the UN, the WTO and the OECD. As one of the key economic centres of the world, Europe is important to Australia’s trading interests. The EU as a common market is Australia’s most significant trading partner and the largest foreign investor in Australia. In 2001–02 the United Kingdom was Australia’s sixth largest merchandise trading partner. It is also the second largest single country investor in Australia and the second largest destination for outward investment from Australia. The key central and eastern European markets for Australia are Russia, Poland, Hungary, the Czech Republic and Romania, while the smaller transition economies — Slovenia, the Slovak Republic and Bulgaria — also offer trade opportunities for Australia. Australia’s relations with these and other regional countries have developed rapidly in recent years, and will continue to do so as many of them prepare to become members of the EU.

South Asia India is growing in strategic and economic importance in global and regional affairs and is an increasingly important dialogue partner for Australia. During 2002 heightened tensions between India and Pakistan threatened peace and stability in the region. Australia contributed to international diplomatic efforts to lower tensions between the two countries. Australia restored defence ties with Pakistan, which had been suspended following that country’s 1998 nuclear tests, in recognition of its constructive role in the international campaign against terrorism. Australia participated in the US-led international intervention in Afghanistan against the Taliban regime and the associated Al Qaida terrorist network. In 2002 Australia re-accredited a non-resident ambassador to Kabul, and Afghanistan established its first resident embassy in Canberra. Australia pledged

Chapter 3 — International relations

$50.7m in aid to Afghanistan, our second largest contribution to an international humanitarian relief effort.

Canada and Latin America Australia’s relationship with Canada is mature, productive and broadly based. The two countries have been trading for more than 100 years and established formal diplomatic links 60 years ago. In addition to the active trade and investment relationship, Australia and Canada cooperate closely on international security, trade and environmental issues. Trade and investment relations between Australia and the countries of Latin America have expanded in recent years. The size and diversity of the markets in the region offer significant opportunities for Australian exporters and investors. The Australian Government also pursues a productive relationship with Latin American countries on a range of international political and economic issues.

The Middle East and Africa Australia has growing commercial interests in the Middle East, a significant destination for Australian agriculture, services and manufactured exports. The Middle East has been the fastest growing regional market for Australian exports over the past decade. Australia’s most significant relationship in Africa is with South Africa, which is a growing market for Australia’s commercial interests and provides a base for trade with all the countries of the Southern African Development Community.

Australia’s security interests Australia’s national security and its economic interests are inextricably linked to the security and stability of the Asia-Pacific region. The key components of Australia’s security strategy are maintaining a strong national defence capability, the security alliance with the United States of America, developing bilateral defence and security relationships with countries throughout the Asia-Pacific region, and strengthening multilateral security links in the region, especially the ASEAN Regional Forum (ARF). Regular bilateral security dialogues with key countries in the Asia-Pacific region, and with key partners beyond the region, provide an opportunity to share views on a wide range of regional and global security issues, promote transparency and reinforce Australia’s

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commitment to working cooperatively with regional countries on security issues. The terrorist attacks in the United States of America in September 2001 heightened the regional and international focus on security, anti-terrorism and weapons of mass destruction. This was reinforced by the bombing attacks that killed and injured many Australians and others in Bali in October 2002. The ARF is an important means of encouraging a sense of strategic community in the region. It complements bilateral links when dealing with global and regional security issues and has a role in encouraging regional support for international regimes against the proliferation of weapons of mass destruction. In 2002 Australia negotiated bilateral agreements promoting closer cooperation on counter-terrorism with Indonesia, Thailand and Malaysia. Australia continues to play an active role in strengthening the international regimes to prevent the proliferation of nuclear, chemical and biological weapons and of missiles. An important Australian objective is to ensure that these regimes are implemented effectively in our region. Australia also encourages adherence to the international regime banning the use, stockpiling, production and transfer of anti-personnel landmines.

Australia’s economic interests Australia’s economic wellbeing and growth depend on a competitive domestic economy and access to foreign markets. Trade policy, industry policy and microeconomic reform all work to provide Australian business with the competitive foundations and opportunities to thrive in an increasingly globalised marketplace. As with Australia’s security interests, Australia’s economic interests are most closely engaged in the Asia-Pacific region. In 2001, 72% of Australia’s merchandise exports and half of Australian direct foreign investment went to APEC member countries. Australian trade policy combines bilateral, regional and multilateral efforts that aim to advance Australia’s commercial interests, particularly by securing market access. Strategies focus on reducing barriers and developing markets for Australian exports, services and investment.

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Year Book Australia 2003

The WTO is of particular significance to Australia. It is the major forum for global trade liberalisation and, through its rules and disciplines, provides a predictable and more transparent environment for business. It also provides an important means of resolving trade disputes. Australia leads the Cairns Group of WTO member countries seeking fair trade in agricultural products. The launch of the new round of WTO trade negotiations in Doha, Qatar in November 2001 met a key trade policy goal of Australia. The Doha Declaration gives specific commitment to negotiations on a wide range of issues, including services, industrial products, intellectual property, WTO rules (including anti-dumping), dispute settlement and some trade and environment issues. Ministers set an ambitious timeframe for the negotiations to be concluded by 1 January 2005. A key objective for Australia will be the elimination of export subsidies and significant cuts to domestic support that distort trade in agriculture, as well as significant improvements to market access. Australia is pursuing several initiatives for free trade agreements (FTAs) with major trading partners which complement our multilateral and regional trade liberalisation efforts. These negotiations aim to deliver substantial market access gains for Australian businesses that could not be achieved in a similar timeframe by other means. We are currently negotiating FTAs with Singapore and Thailand, and are working towards negotiations on an FTA with the United States of America. ASEAN, Australia and New Zealand endorsed a framework for the ASEAN Free Trade Area (AFTA) — CER Closer Economic Partnership. APEC is a significant regional forum for Australia. APEC economies are committed to achieving free and open trade and investment by 2010 for industrialised economies and by 2020 for developing economies. Australia is committed to achieving this goal, which would bring considerable long-term benefits for Australia and the region. Australia is working in the short and medium terms to ensure substantial progress in the liberalisation programs of individual APEC economies. APEC is the only regional forum

which brings together leaders from across the Asia-Pacific region. APEC meetings encourage dialogue between member countries and provide high-level networking opportunities, thereby increasing the level of trust and confidence among regional countries.

Australia’s engagement with the United Nations (UN) system Australia pursues important national interests in the UN system. The principal body, the General Assembly and its committees, is complemented by specialised agencies like the World Health Organization, and affiliated organisations, such as the International Atomic Energy Agency. Under the UN Charter the Security Council has primary responsibility for maintaining international peace and security. Australia places high priority on the UN’s efforts to promote multilateral cooperation in core areas: international peace and security; the development of international legal instruments and norms; the provision of humanitarian assistance; and protection of the environment and sustainable development. Priorities over the past year have included establishment of an International Criminal Court and strengthening multilateral cooperation on people smuggling and anti-terrorism. Reform of the UN is an important objective for Australia. Our aim is to ensure that the UN system can respond effectively to changing circumstances in a stable or declining budgetary environment.

The Commonwealth Australia also values the Commonwealth, an association of 54 countries dedicated to promoting political principles of importance to Australia: democracy, good governance and the rule of law. Australia hosted the CHOGM (Commonwealth Heads of Government Meeting) in March 2002 and the Australian Prime Minister is the current Commonwealth Chair-in-Office. Australia is one of the largest contributors to the Commonwealth.

Chapter 3 — International relations

Australia’s human rights policy Australia takes an active and constructive approach to improving human rights internationally through: targeting development cooperation programs; supporting the establishment of national human rights institutions and good governance; encouraging multilateral, regional and bilateral discussion of human rights issues; and working to develop and strengthen the effectiveness of regional and international human rights institutions and instruments. Australia has been elected to serve on the UN Commission on Human Rights for a three-year term from 2003. In addition to working through multilateral forums, Australia promotes human rights through bilateral dialogues with individual countries. Australia has held bilateral discussions with China and Vietnam and agreed to hold similar discussions with Iran.

The role of DFAT in Australia’s international relations The Department of Foreign Affairs and Trade (DFAT) is the principal source of advice to the Government on foreign and trade policy issues and is the agency primarily responsible for implementing the Government’s foreign and trade policies.

Its aim is to advance the interests of Australia and Australians internationally. The department’s staff in Canberra, in state and territory offices in Australia, and Australian diplomatic missions around the world, work towards the achievement of four primary outcomes: n

Australia’s national interests protected and advanced through contributions to international security, national economic and trade performance, and global cooperation

n

Australians informed about and provided access to consular and passport services in Australia and overseas

n

public understanding in Australia and overseas of Australia’s foreign and trade policy and a positive image of Australia internationally

n

efficient management of the Commonwealth overseas-owned estate.

Location and number of DFAT staff Graph 3.1 shows the location of DFAT staff. Graph 3.2 shows the number of Australia-based DFAT staff overseas by region.

3.1 AUSTRALIA-BASED DFAT STAFF — June 2002 no. 1500 1200 900 600 300 0 Canberra

State and territory offices

Source: Department of Foreign Affairs and Trade.

85

Australians overseas

Staff recruited overseas

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Year Book Australia 2003

3.2

LOCATION OF AUSTRALIA-BASED DFAT STAFF OVERSEAS — June 2002

no. 150 120 90 60 30 0 NZ/South Pacific

Mid/East/ Africa

Nth Asia

Sth/S-E Asia

Europe

The Americas

Source: Department of Foreign Affairs and Trade.

Services to the Australian community DFAT provides a range of services to the Australian community. The department provides 24-hour consular and passport services to Australians travelling overseas and their families in Australia through its network of overseas missions and honorary consulates, the consular operations centre in Canberra and consular cooperation arrangements with other countries. The services the department provides include: assisting Australians who are hospitalised, imprisoned or require welfare assistance overseas; helping family members when Australian travellers die or go missing; and coordinating evacuations from international trouble spots. Consular services are available to Australians at 164 locations overseas. The department keeps Australian travellers informed about international developments through media briefings and travel advice notices. In 2001–02 the department helped more than 24,000 Australians in difficulty. The department provides secure travel documents to eligible Australians under the authority of the Passports Act 1938 (Cwlth). Passport services are provided through passport offices located in Australia’s major cities and diplomatic and consular missions overseas.

Public information services DFAT provides a range of information services to the Australian public and media. It also promotes an accurate, positive and up-to-date image of Australia internationally focusing on technical capabilities, record of innovation, achievements in science and industry, and cultural diversity. On 31 December 2001 the ABC Asia-Pacific (ABCAP) television service began broadcasting news and information to countries in the Asia-Pacific region. DFAT manages the contract between the Government and ABCAP. Detailed information about Australia’s foreign and trade policy can be accessed through the DFAT web site, . The department also produces hard copy publications on many foreign and trade policy issues, which are available from the department or from Commonwealth government bookshops. Officials from the department provide regular media briefings on issues of the day. Further information and links are listed in the Bibliography.

Chapter 3 — International relations

The Australian Overseas Aid Program The Australian Overseas Aid Program aims to advance our national interest by assisting developing countries to reduce poverty and achieve sustainable development. Australian aid focuses on providing practical, well-targeted development assistance to the Asia-Pacific region and responds selectively to needs in South Asia, Africa and the Middle East. The aid program is an integral part of Australia’s engagement in the Asia-Pacific region and a practical demonstration of our commitment to helping build regional stability and prosperity. The aid program is also an expression of the conviction of the Australian people that it is right for Australia to help the millions of people, especially among our neighbours, whose lives are afflicted by extreme poverty. In 2002–03 the Australian Government is providing an estimated $1.815b in Official Development Assistance (ODA). Details of ODA distribution are set out in table 3.3. Australia’s ODA to gross national income ratio for 2002–03 is estimated to be 0.25%, above the latest (2001) donor average of 0.22%. Further information and publications on the Australian Government’s aid program can be sourced from the web sites and of the Australian Agency for International Development (see next section), and the web site of the Australian Centre for International Agricultural Research (ACIAR), .

The Australian Agency For International Development (AusAID) AusAID administers the bulk of Australia’s aid program. It is an administratively autonomous agency within the Foreign Affairs and Trade portfolio. AusAID’s principal organisational functions are: to provide professional policy advice and support to the Government on aid policy, program directions and international development issues; and to develop and implement programs of assistance in partnership with developing countries, international agencies, non-government organisations (NGOs) and Australian businesses.

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Key sectors of the aid program The aid program provides assistance in five key sectors: n

governance (includes improving economic and financial management, strengthening law and justice, increasing public sector effectiveness and developing civil society)

n

agriculture and rural development

n

health

n

education

n

infrastructure.

Activities in these sectors are underpinned by a commitment to environmental sustainability and gender equity. Country and regional strategies, which are developed in consultation with partner governments, are the primary means through which sectoral priorities are translated into programs on the ground. Strategies take account of partner government priorities, Australia’s strengths, and the activities of other donors. Within the sectoral framework, development assistance programs in partner countries comprise a range of activities. These include the provision of Australian goods and services, training and academic student scholarships, food aid and support for NGOs.

Country programs Papua New Guinea (PNG) Australia’s aid program with PNG is the largest aid program Australia has with any one country. Australia’s aid to PNG seeks to support PNG’s economic and social development by focusing on governance, health, education, infrastructure, sustainable management of natural resources, and the consolidation of the peace process in Bougainville. Australia is supporting a wide-ranging program of public sector reforms being undertaken by the PNG Government. In 2002–03 Australia is providing $30m through the contestable PNG Incentive Fund, rewarding agencies and institutions that demonstrate a proven track record in program and financial management.

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Year Book Australia 2003

Work in the education sector is assisting PNG to maximise the benefits that information technologies can provide. Australia is helping PNG to improve infrastructure maintenance and promote sustainable management in the forestry sector. Australia is supporting the Bougainville Provincial Administration as it moves towards autonomous government, and is assisting the social reintegration of ex-combatants.

The Pacific region Pacific Island Countries (PICs) face significant development challenges as a result of their economic and environmental vulnerability. Countries in the Pacific lack diversity in terms of production and export sectors, making them especially vulnerable to economic shocks and crop failure. Already facing the dual challenges of expanding populations and limited viable agricultural land, PICs are particularly susceptible to natural disasters and environmental deterioration. Furthermore, as small countries they often lack adequate capacity in their public or private sectors to cope with the range of challenges presented by the rapidly globalising world. They do not have access to a sufficiently large pool of people with the technical, administrative and managerial skills a modern state requires. Australia’s long-term objective is to help PICs achieve the maximum possible degree of self-reliance. Australia’s assistance is principally provided in governance and economic reform, education and training, environment and natural resources, health and private sector development. In countries such as the Solomon Islands, where tension and conflict have erupted, Australia is working through the aid program to address the causes of the tension and provide short-term support while working with the country to improve social and economic conditions in the longer term.

3.3

AUSTRALIAN AID FLOW — 2002–03(a)

Papua New Guinea

$m 351.4

Pacific Fiji Vanuatu Solomon Islands Samoa Tonga Kiribati Other and regional Total

19.7 22.1 36.2 15.8 11.4 11.1 48.7 165.0

Nauru additional(b)

6.8

East Asia Indonesia East Timor(c) Vietnam Philippines China Cambodia Thailand Laos Other and regional Total

121.6 36.0 72.2 63.0 55.5 39.6 21.6 19.0 42.3 470.8

South Asia Bangladesh India Sri Lanka Nepal Pakistan Other and regional Total

35.6 22.1 11.4 7.8 4.2 28.8 110.0

Africa and Other Africa Middle East Other Total

60.1 11.9 60.7 132.7

Reconciliation to Official Development Assistance (ODA) Other Government Department (OGD) unallocated(d) Core contributions to multilateral organisations, other ODA(e) Total Official Development Assistance (cash)

143.1 434.8 1 814.6

(a) Budget estimate for 2002–03. (b) Nauru additional represents additional funding appropriated under 2001–02 additional estimates and a new measure for 2002–03 to meet the $10m pledge of assistance agreed between the Nauru and Australian governments in December 2001. (c) Shows East Timor aid program only as OGD East Timor is included in OGD unallocated. (d) OGD unallocated includes ODA eligible expenditure by other government departments which has not been allocated to a particular country or region. (e) Includes adjustment of $6.5m for non-ODA eligible expenditure and other adjustments. Source: AusAID.

Chapter 3 — International relations

East Asia This year will be challenging for many East Asian countries. Achieving significant economic growth and poverty reduction is likely to remain problematic. Key factors will be the health of the world economy and the demand for regional exports. The global economic slowdown impacted significantly in 2001–02, with regional growth of around 4.3% in calendar year 2001, compared with around 7.6% in 2000. In East Asia, Australia has bilateral programs with Indonesia, Vietnam, the Philippines, China, Cambodia, East Timor, Thailand, Laos, Burma and Mongolia. The aid program in Indonesia is Australia’s second largest. Over the period 2001–03 Australian aid aims at addressing poverty reduction, sustainable economic recovery and democratisation in Indonesia. Australia is helping the newly independent East Timorese government to improve service delivery and public administration as well as supporting major programs in rural development, water supply and sanitation. In Vietnam Australia is supporting governance reforms by providing targeted policy advice and short-term training as well as continuing to address the needs of the rural poor. In the Philippines and China the livelihoods of the rural poor are also a focus, particularly in the southern islands of the Philippines and the west of China. The Asia regional program complements Australia’s bilateral assistance by addressing trans-boundary development challenges and strengthening regional cooperation and economic integration. Priority is given to governance (including economic management, trade and related economic integration issues and social protection) and health (including HIV/AIDS). Regional program activities aim to assist economic growth, while building capacity to address the needs of some of the poorest and most marginalised people in the region. International trade is crucial to sustainable development and poverty reduction in the region. Australia is assisting partner countries to engage effectively in the new round of multilateral trade negotiations agreed at the WTO meeting in Doha in November 2001.

South Asia In South Asia, Australia has bilateral programs with Bangladesh, India, Sri Lanka, Nepal, Pakistan, Maldives and Bhutan. To be effective and deliver quality outcomes, Australian aid to South Asia is focused on a few key sectors including basic education, water and sanitation, and natural

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resource management. Building capacity to assist women and children in the region is a particular theme. Australian assistance aims to enhance human capital and improve service delivery, support reform and assist in strengthening governance, and increase the ability of governments to address the needs of vulnerable groups.

Africa and the Middle East The development challenges facing Africa are enormous. Recurrent drought, food insecurity, illiteracy, poor health services and high rates of HIV/AIDS are often exacerbated by conflict, poor governance and a lack of social and economic investment. To help African countries meet these challenges, Australian aid focuses on governance, education and HIV/AIDS in southern Africa. This includes assistance to the African Virtual University in Nairobi to provide greater access to quality educational courses at lower cost, support to build the capacity of communities to combat gender violence and reduce poverty, and promotion of capacity building for government agencies in South Africa. Australia’s aid program to the Middle East continues to address the urgent social and economic situation in the West Bank and Gaza, through the United Nations Relief and Works Agency and Australian and local Palestinian NGOs.

Global programs Multilateral and international organisations Australia’s support for multilateral and international organisations extends the reach of the aid program and leverages the benefits Australia’s assistance can deliver. Australia supports a range of development banks, the Heavily Indebted Poor Countries Initiative, UN agencies, including the World Food Program, UN Children’s Fund and UN Development Program, as well as Commonwealth development agencies. Through support to international health programs Australia addresses persistent global health challenges, including tuberculosis, poor reproductive health, HIV/AIDS and polio, and emerging challenges such as non-communicable diseases, violence against women and mental health. Australia is also supporting international environment programs including the Global Environment Facility and the Montreal Protocol Multilateral Fund, to address the challenges of

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Year Book Australia 2003

climate change, conservation of biological diversity, ozone layer depletion and persistent organic pollutants.

and government sectors through the placement of young Australians on development assignments throughout the Asia-Pacific region.

Emergency and humanitarian assistance

Australian Centre for International Agricultural Research (ACIAR)

Australia’s emergency, humanitarian and refugee programs aim to mitigate the adverse impacts of conflict, natural and other disasters on vulnerable populations. To ensure effective responses to conflict and disasters Australia works in cooperation with international and domestic partners to improve preparedness and risk reduction strategies, especially in the Asia-Pacific region. The program focuses on preparedness through analysis and planning; increasing indigenous capacity to prepare for and respond to disasters; increasing Australian government and non-government capacity to respond to a broad range of crises; and greater engagement with multilateral humanitarian agencies.

Non-government organisation activities and volunteer programs Activities NGOs play a key role in the provision of Australian aid to developing countries. Through their strong links with communities in developing countries and partnerships with local organisations, NGOs are well placed to strengthen civil society and build longer term sustainable development at the grassroots level. NGOs have also been successful in mobilising public support and voluntary contributions for aid, and in engaging the Australian community in aid activities.

Volunteer programs Since the 1960s, when the Australian aid program first directly funded volunteers, they have been a key part of the human face of Australian aid. Volunteers help to reduce poverty through skills transfer and institutional strengthening, and enhance Australian community participation and interest in the aid program. Australia supports three types of volunteer services: short-term business volunteers; longer term community volunteers (through Australian Volunteers International); and short-term youth volunteers (through the Australian Youth Ambassadors for Development Program). The Youth Ambassadors program develops partnerships with Australian organisations, and with education, community

ACIAR is a statutory authority within the Foreign Affairs and Trade portfolio. As a part of Australia’s aid program it assists Australian researchers, institutions and international research centres to develop solutions to agricultural problems in order to reduce poverty, improve food security and enhance natural resources management to the benefit of developing countries and Australia. Collaboration with researchers in developing countries is integral to all ACIAR projects, and ACIAR provides training and infrastructure to help build the capacity of these countries to undertake and apply research. Funding for ACIAR in 2002–03 is $46.3m. This supports more than 180 bilateral research projects across the Asia-Pacific region with a primary focus in South-East Asia. ACIAR’s bilateral projects focus on agricultural systems economics and management, agricultural development policy, crop sciences, animal sciences, post-harvest technologies, land and water resources, forestry and fisheries. The major bilateral partners of ACIAR are China, Indonesia, Vietnam, India, PNG, the Philippines and Thailand. Under its multilateral program ACIAR also supports international agricultural research centres through grants that link them to Australia’s agricultural research organisations. Another component of ACIAR’s work involves funding training and development to assist progress and implementation of its research. This is primarily achieved through a small program of postgraduate fellowships provided to developing country scientists for study at Australian universities.

The network of Australian diplomatic and consular missions overseas DFAT manages an extensive network of Australian diplomatic and consular missions abroad (tables 3.4–3.7), supporting Australia’s international interests and providing consular and passport services. The department’s central office is in Canberra and it also maintains offices in all of the state capitals and in Darwin, as well as Newcastle and Thursday Island.

Chapter 3 — International relations

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3.4 AUSTRALIAN EMBASSIES, HIGH COMMISSIONS AND CONSULATES MANAGED BY DFAT(a) — 30 June 2002 Country

Argentina Austria Bangladesh Barbados Belgium Brazil Brunei Burma Cambodia Canada Chile China, Peoples Republic of

Croatia Cyprus Denmark East Timor Egypt Federated States of Micronesia Fiji France Germany Greece Hungary India Indonesia Iran Ireland Israel Italy Japan Jordan Kenya Kiribati Korea, Republic of Laos Lebanon Malaysia

Post Buenos Aires Vienna Dhaka Bridgetown Brussels Brasilia Bandar Seri Begawan Rangoon Phnom Penh Ottawa Santiago de Chile Beijing Guangzhou Hong Kong SAR Shanghai Zagreb Nicosia Copenhagen Dili Cairo Pohnpei Suva Paris(b) Berlin Athens Budapest New Delhi Jakarta Bali Tehran Dublin Tel Aviv Rome Tokyo Amman Nairobi Tarawa Seoul Vientiane Beirut Kuala Lumpur

Country

Malta Mauritius Mexico Nepal Netherlands New Caledonia New Zealand Nigeria Pakistan Papua New Guinea Philippines Poland Portugal Russia Samoa Saudi Arabia Singapore Solomon Islands South Africa Spain Sri Lanka Sweden Thailand Tonga Turkey United Arab Emirates United Kingdom United States of America

Vanuatu Vatican City Venezuela Vietnam Yugoslavia Zimbabwe

Post Valetta Port Louis Mexico City Kathmandu The Hague Noumea Wellington Lagos Islamabad Port Moresby Manila Warsaw Lisbon Moscow Apia Riyadh Singapore Honiara Pretoria Madrid Colombo Stockholm Bangkok Nuku’alofa Ankara Abu Dhabi London Washington DC Honolulu Los Angeles New York Chicago Port Vila Vatican City(c) Caracas Hanoi Ho Chi Minh City Belgrade Harare

(a) The Australian Chamber of Commerce and Industry maintains an office in Taipei. The staff at the office include employees seconded from the Department of Foreign Affairs and Trade, Austrade, the Department of Education, Science and Training, and the Department of Immigration and Multicultural and Indigenous Affairs. The Australian Government also maintains a Representative Office in Ramallah. The office manages dealings with the Palestinian Authority in the West Bank and Gaza and has responsibility for Australia’s development assistance program for the Palestinians. (b) The permanent delegation to UNESCO is located within the Embassy in Paris. (c) Embassy to the Holy See. Source: Department of Foreign Affairs and Trade.

92

Year Book Australia 2003

3.5 MULTILATERAL MISSIONS — As at 30 June 2002 Post Paris Geneva New York Vienna Geneva

OECD UN

WTO

Source: Department of Foreign Affairs and Trade.

3.6

CONSULATES MANAGED BY AUSTRADE — 30 June 2002

Country

Brazil Canada Germany India Italy Japan

New Zealand Peru Romania Turkey United Arab Emirates United States of America

Post Sao Paulo Toronto Frankfurt Mumbai Milan Fukuoka Nagoya Osaka Sapporo Sendai Auckland Lima Bucharest Istanbul Dubai Atlanta San Francisco

Source: Department of Foreign Affairs and Trade.

3.7

CONSULATES HEADED BY HONORARY CONSULS — 30 June 2002

Country

Angola Bolivia Brazil Bulgaria Canada Colombia Czech Republic Ecuador Estonia Finland Former Yugoslav Republic of Macedonia French Polynesia Greece Ghana Indonesia

Korea, Republic of Latvia Lithuania Malaysia

Mexico

Post Luanda La Paz Rio de Janeiro Sofia Vancouver Bogota Prague Guayaquil Tallinn Helsinki Skopje Papeete Thessaloniki Accra Balikpapan(a) Kupang(a) Medan Busan Riga Vilnius Kota Kinabalu Kuching Penang Guadalajara Monterrey

(a) Currently vacant. Source: Department of Foreign Affairs and Trade.

Country

Mozambique Norway Pakistan Papua New Guinea Russia Slovenia South Africa Spain Thailand Ukraine United Kingdom United States of America

Uruguay

Post Maputo Oslo Karachi Lae St Petersburg Vladivostok Ljubljana Cape Town(a) Durban Barcelona Seville Chiang Mai Koh Samui(a) Kyiv Edinburgh Manchester Boston(a) Denver Detroit Houston Miami Seattle Montevideo

Chapter 3 — International relations

93

Bibliography Much information about Australia’s foreign and trade policy can be accessed through the DFAT web site, . The department also produces hard copy publications on many foreign and trade policy issues, which are available from the department (Telephone: Canberra 02 6261 1111) or from Commonwealth government bookshops. The web site contains a browsable list of topic categories, as well as a continually updated current issues list. Documents of interest can be found on the web site by using its search facility. They include: Advancing the National Interest: White Paper on Australia’s Foreign and Trade Policy Department of Foreign Affairs and Trade Annual Report 2001–2002 Department of Foreign Affairs and Trade Corporate Plan 2000–2002 Hints for Australian Travellers Portfolio Budget Statements 2002–2003 Trade Outcomes and Objectives Statement 2002 For hints and information for Australians travelling overseas, see For information about services and assistance the department provides to Australian travelling overseas, see For information on the Asia-Pacific television service, visit For more detailed information about Australia’s bilateral relationships, visit For specific trade and investment information, see and For publications by the Economic Analytical Unit, see For a list of DFAT statistical publications, see For consular and passport information, see For information on Australia’s international treaty commitments, see For information on Australia’s human rights policy, see For information on Australia’s international environmental activities, see For links to web sites of the Australian foreign missions overseas, see

Related web sites Australian Agency for International Development (AusAID) . AusAID’s site contains a range of information, including: hot topics, country information, publications, Global Education, Australian Centre for International Agricultural Research, Australian Safeguards and Non-proliferation Office, Australian Trade Commission (Austrade), . There are separate home pages geared to Australian users, , and international users, Business in APEC, Export Finance and Insurance Corporation (EFIC),

4

Defence This chapter was contributed by the Department of Defence.

Introduction

97

Outcome and strategic objectives

97

Strategic environment

97

Global environment

97

Regional environment

97

Domestic environment

97

Article — 11 September 2001 — consequences for defence

98

Capabilities

98

Current capabilities

98

Future capabilities

99

Operations

100

Resources

102

The White Paper

103

People

104

Recruitment and retention

105

Article — Reserves and Cadets

105

Bibliography

107

Chapter 4 — Defence

Introduction The Australian Defence Forces (ADF) and the Department of Defence (hereafter referred to as ‘Defence’) are currently operating at an unprecedented level of activity, due primarily to the events of 11 September 2001, the resulting war against terrorism, increased concentration on border protection and unauthorised boat arrivals, and Australia’s continued commitments in East Timor. This chapter outlines Defence’s objectives and direction from the Government, the strategic environment in which Australia operates, Defence’s capabilities and operations, and its financial and human resources. Also included are articles on the aftermath of the events of 11 September 2001, and on the Reserve forces and the Cadet scheme.

Outcome and strategic objectives The outcome the Government requires from Defence is ‘the defence of Australia and its national interests’. This reflects the broad requirements for Defence in a complex modern strategic environment. The outcome recognises the reality that activities detrimental to Australia’s security and national interests may not necessarily involve the use of armed force. Hostile foreign intelligence activities, or economic aggression, deliberate introduction by a foreign power of non-weaponised biological agents, or cyber attack on economically or militarily sensitive cyber-sites, are activities that do not involve the use of armed force, but may be extremely damaging to Australia and its national interests. As outlined in Defence 2000 — Our Future Defence Force (the Defence White Paper), available at , the Government has identified for Defence four strategic tasks, which guide the development of defence capabilities. These are: n

to be capable of defending Australian territory from any credible attack, without relying on help from the combat forces of any other country

n

to have Defence Forces able to make a major contribution to the security of Australia’s immediate neighbourhood

n

to be able to contribute effectively to international coalitions of forces to meet crises beyond Australia’s immediate neighbourhood where Australia’s interests are engaged

n

97

to undertake regular or occasional tasks in support of wider national interests.

Strategic environment In the increasingly globalised world of which Australia is a part, the attacks of 11 September 2001 were a challenge to the order that underpins our security and prosperity. The war against terrorism, and a heightened awareness of terrorism and transborder crime, have been the dominant feature of the past year.

Global environment The global environment continues to be dominated by globalisation and the strategic importance of the United States of America. Since the events of 11 September 2001 (see the article following this section), there has also been an increased international focus on transnational threats, particularly those related to acts of terrorism, from traditional assaults such as bombings, to future possibilities such as cyber or biological attacks. A common approach to terrorism and greater cooperation between major powers have resulted, although deep-rooted causes of rivalry and tensions remain.

Regional environment Regionally, the climate has also been affected by the increased security concerns, cooperative measures and differing stances on the war against terrorism. Enduring issues such as governance, economic management and social cohesion, however, remain the primary strategic concerns in the region.

Domestic environment While the attacks in September 2001 changed Australia’s strategic environment in some important ways, a major attack on Australia remains only a remote possibility. Peacetime national tasks to ensure Australia’s security have become increasingly important. There is an increased emphasis on domestic security resulting from the 11 September attacks, with anti-terrorism efforts being invigorated. Border protection, again a transnational problem, has become the other major domestic security issue, with coastal surveillance, unauthorised boat arrivals, smuggling (both of people and goods), quarantine evasion and intrusions on Australian sovereignty (e.g. illegal fishing in Australian waters) all being targeted.

98

Year Book Australia 2003

11 September 2001 — consequences for defence On 11 September 2001, two civilian passenger aircraft were flown into the World Trade Center in New York, a third into the Pentagon in Washington and a fourth crashed into a field in Pennsylvania. This terrorist attack claimed over 3,000 lives, and caused a shift in the worldwide focus on security. Australia, like most of the international community, was left feeling shocked and insecure, forcing a rethink of both security and national defence. In Australia, national security has been reviewed and tightened with a focus on deterring and detecting terrorist attempts. Defence has been involved in this process in concert with other government agencies, through both individual and cooperative measures and task forces. The incident response regiment, an army unit originally created for the 2000 Olympics, has been reconstituted and is designed to help detect and react to explosives and chemical, biological and radiological threats. The Government has also increased Australia’s military counter-terrorist capability, with two new counter-terrorist units based at Holsworthy Barracks in Sydney, which have the capability to respond to national security threats. These units are the incident response regiment, which will be able to respond to chemical, biological, radiological, nuclear or explosive incidents both domestically and in support of Australian forces deployed overseas, and an east coast based tactical assault group which is an elite unit able to deploy at short notice to respond to a terrorist incident, such as a hostage siege.

The most obvious repercussion of 11 September 2001 has been the war against terrorism. Australia was one of the first nations to offer assistance in the emerging coalition against terrorism. The ANZUS Treaty was invoked for the first time in its 50-year history, not only to demonstrate Australia’s support and commitment to our major ally, but also in recognition of the common threat represented by terrorism. Australia will remain involved in the coalition against terrorism into the future, as the threat posed by terrorism and transnational crime will require vigilance and perseverance for an indeterminate period. Australia deployed over 1,550 personnel to contribute to the war against terrorism. These forces were committed to combined operations against the terrorist groups responsible for the 11 September attacks, to support the forces of the United States of America and other coalition partners in the campaign, and to provide protection for key coalition forward bases. The Australian Defence Forces have performed conspicuously well within the international coalition. Australian special forces deployed to fight in Afghanistan have proved to be a welcome and highly effective contribution. Navy and Air Force units have played a less visible but important and successful role in supporting the land forces and participating in related coalition operations.

Capabilities

scheduled to be at full capability by the end of 2004), supported by a replenishment ship and an oil tanker

Current capabilities Defence maintains a force structure with the following major combat elements: n

a surface combatant force consisting of six Adelaide Class guided missile frigates (FFG) and three ANZAC Class frigates rising to eight, together with onboard helicopters (this capability will be enhanced with the introduction of Seasprite helicopters,

n

a patrol boat force of 15 Fremantle Class patrol boats

n

a submarine capability consisting of five Collins Class submarines, rising to six

n

capabilities for mine warfare, amphibious lift, and hydrographic and oceanographic operations

n

Special forces consisting of a special air service regiment, a high-readiness commando battalion and a Reserve commando battalion

Chapter 4 — Defence

n

n

mechanised, motorised and light infantry forces, including a reconnaissance regiment equipped with Australian light armoured vehicles, a tank regiment, a mechanised infantry battalion, a medium artillery regiment, a motorised infantry battalion group, a field artillery regiment, three infantry battalions, a field artillery regiment, an armoured personnel carrier squadron, and engineer and logistic support signals, surveillance and specialist support, particularly logistics support, construction engineering, and topographical, electronic warfare, incident response and intelligence support systems

n

a re-roled and re-tasked Reserve force designed to sustain, reinforce and, to a lesser degree, rotate personnel and equipment

n

a capability for air strike/reconnaissance provided by F-111 aircraft, crews and weapon systems

n

a capability for fighter operations provided by F/A-18 Hornet aircraft, crews and weapon systems

n

strategic surveillance, involving sensors and battle management elements, including air traffic control radars, tactical air defence radars, the Jindalee Radar Facility and three tactical operations centres

n

a maritime patrol capability, involving P-3C aircraft, crews and weapon systems

n

the provision of airlift aircraft, crews and weapon systems, and air combat support wings.

For further details of the components of Defence capabilities, see the Defence Annual Report 2001–02, Chapter 2, available at .

Future capabilities To ensure that Australia will have the forces needed to achieve the tasks outlined in the Defence White Paper, the Government has formulated the Defence Capability Plan, a detailed, costed plan for Australia’s military capabilities over the next 10 years, with broad guidance on major capability directions over this period. The aim is to provide the ADF with clear, long-term goals for the development of our armed forces, and the funding needed to achieve those goals.

99

In light of the changes in Australia’s strategic environment, the Government has decided to review the adequacy of Defence’s current and planned capabilities to manage the broader range of potential contingencies that may arise, and the ability of Defence to sustain its operations. Defence’s first Annual Strategic Review will be submitted to the Government in late 2002. Described below are some of the major acquisition projects over the next decade: n

Two squadrons (around 20–24 aircraft) of armed reconnaissance helicopters are planned to enter service from 2004–05. These will constitute a major new capability for the Army, providing deployable, flexible, high-precision, and highly mobile firepower and reconnaissance.

n

An additional squadron (about 12 aircraft) of troop-lift helicopters will provide extra mobility for forces on operations. In particular, these helicopters will enhance the capability to operate off the amphibious lift ships, HMAS Manoora and Kanimbla. These helicopters are planned to enter service around 2007.

n

New air defence missile systems will supplement the existing RBS-70 and replace the existing Rapier systems, giving comprehensive ground-based air defence coverage to deployed forces. These systems are planned to enter service from around 2005 and 2009 respectively.

n

In 2006, 20 new 120 mm mortar systems mounted in light armoured vehicles will enter service.

n

A new thermal surveillance system and tactical uninhabited aerial vehicles to provide surveillance for deployed forces are planned to enter service from around 2003 and 2007 respectively.

n

The acquisition of four airborne early warning and control aircraft, with the possibility of acquiring a further three aircraft later in the decade. These aircraft will make a major contribution to many aspects of air combat capability, significantly multiplying the combat power of the upgraded F/A-18 fleet.

n

The acquisition is planned of up to five new-generation air-to-air refuelling aircraft, which would provide the capacity to refuel not only the F/A-18 aircraft, but also the F-111 and airborne early warning and control aircraft over a wide area of operations. These aircraft will also provide a substantial air cargo capability, and are planned to enter service around 2006.

100

n

Year Book Australia 2003

A major program to provide better electronic warfare self-protection from missiles for the transport aircraft and helicopters is planned by around 2004.

n

The FFGs are planned to be replaced when they are decommissioned from 2013 by a new class of at least three air-defence capable ships. It is expected that these ships will be significantly larger and more capable than the FFGs. The project is scheduled to commence in 2005–06.

n

Australia has decided to participate in the development phase of the F-35 Joint Strike Fighter, with the expectation that the F-35 would be the most likely aircraft to provide Australia’s future air combat capability, replacing the current fleets of F/A-18 Hornet and F-111 aircraft.

Operations With tasks and responsibilities stemming from Australia’s commitment to the international coalition against terrorism, its ongoing security roles in East Timor and Bougainville, and its role in the interception of illegal immigrants and in the maintenance of border integrity, Defence is at its highest level of activity since the Vietnam War. Defence also has personnel involved in United Nations and other peacekeeping missions around the world: in the former Yugoslavia, the Sinai, Israel, Syria, Lebanon, Sierra Leone, Ethiopia, Eritrea, and the Middle East. This high operational tempo will continue, with the Government making a strong commitment to strengthen Australia’s defences, fight the war against terrorism and further protect Australia’s borders. Tables 4.1–4.3 detail current ADF operations which are ongoing in nature. (For further details of ADF operations, see the operations tables in Chapter 2 of the Defence Annual Report 2001–02 or the Portfolio Budget Statements 2002–03, both available at .)

4.1

AUSTRALIAN DEFENCE FORCE, Major operations(a)

Operation

Objective

Slipper October 2001 — continuing

To contribute to the United States-led operation against international terrorism.

Damask 1991 — periodic and continuing Belisi II April 1998 — continuing Citadel May 2002 — continuing (a) Correct as at 30 August 2002. Source: Department of Defence.

To contribute to the Multinational Maritime Interception Force in the Persian Gulf in support of United Nations sanctions against Iraq. To support the Peace Monitoring Group in Bougainville by contributing specialist medical, logistic, communications and transport capabilities. The ADF contribution to the Post-Independence UN Mission of Support in East Timor.

Chapter 4 — Defence

4.2

101

AUSTRALIAN DEFENCE FORCE, Surveillance and regional operations(a)

Operation

Objective

Relex I and Relex II September 2001 — continuing

Gaberdine August 2001 — continuing Cranberry August 2001 — continuing Estes 1980 — continuing

To conduct air and surface patrols across Australia’s northern approaches to deter unauthorised boat arrivals. Operation Relex 1 ceased on 14 March 2002 to enable information concerning the operation to be declassified for the Senate Select Committee on a Certain Maritime Incident. To provide support to the Department of Immigration and Multicultural and Indigenous Affairs to manage any increase in unauthorised boat arrivals. To conduct surveillance in northern Australia supporting the civil surveillance program within the area of operation. To conduct surface patrols in Bass Strait. Since the successful implementation of the Bass Strait traffic separation scheme, there has been no requirement for ADF surface patrols to continue; however, RAN ships regularly transit the area.

Gateway 1981 — continuing

To conduct aerial surveillance of the northern Indian Ocean and South China Sea approaches to Australia.

Mistral 1998 — continuing

To support Australian sovereign rights and fisheries law enforcement in the Southern Ocean by contributing to the Southern Ocean fisheries patrols.

Solania 1988 — continuing

To contribute to South West Pacific regional engagement via aerial fisheries patrols.

Prowler 1996 — continuing

To collect military geographic information in northern Australia.

(a) Correct as at 30 August 2002. Source: Department of Defence.

4.3

AUSTRALIAN DEFENCE FORCE, Non-regional operations(a)

Operation

Paladin 1956 — continuing

Mazurka 1992 — continuing Osier March 1997 — continuing Pomelo January 2001 — continuing Husky January 2001 — continuing (a) Correct as at 30 August 2002. Source: Department of Defence.

Objective To contribute to the United Nations Truce Supervisory Organisation in the Middle East. This force of unarmed military observers supervises, observes and reports on the various cease-fire arrangements, truces and peace treaties that have been negotiated between Israel and neighbouring Arab nations since 1948. To provide personnel to the Multinational Force and Observers to monitor the security arrangements in the Sinai. To deploy Army personnel as part of the Stabilisation Force in Bosnia–Herzegovina and Croatia, and Kosovo Force in Kosovo. In both cases, personnel serve as individuals attached to United Kingdom forces. To contribute to United Nations peacekeeping efforts in Africa as part of the United Nations Mission in Ethiopa/Eritrea. To contribute to the nation building efforts in Sierra Leone via the International Military Advisory and Training Team.

102

Year Book Australia 2003

Resources In the decade preceding 2001–02 Defence funding remained relatively stable in real terms. Increases over this period, evident in graph 4.4, reflect maintenance of the Defence funding base against inflationary and unfavourable foreign exchange influences. Defence funding was increased in the 2001–02 budget (and forward estimates) to address a number of specific priorities detailed in the Defence White Paper. The White Paper provided a funding commitment for Defence and injects some $28b over the decade from 2001–02. This funding injection equates to an increase of some 3% average real growth per annum over the period.

In addition to the implementation of the White Paper, the Government has given a number of specific directions to Defence to meet emerging strategic priorities. These include the conduct of operations to protect Australia’s borders, a contribution to the international coalition fighting terrorism, and enhancement of domestic counter terrorism capabilities. Defence was provided with some $730m to address these and other emerging priorities in 2002–03. Graph 4.5 reflects the significance of both employee costs and the investment in specialist military equipment and infrastructure in delivering Defence capability. Increases in operating costs in 2001–02 and 2002–03 are attributable to the enhanced operational tempo associated with operational undertakings such as those occurring in East Timor and the war on terrorism.

4.4 DEFENCE OUTLAYS(a) $b 15 14 13 12 11 10 9 1992–93

1994–95

1996–97

1998–99

2000–01

2002–03

(a) 2001–02 and 2002–03 are estimates. Source: Department of Defence.

4.5 DEFENCE OUTLAYS, By category(a) Personnel Other operating Investment

% 50 40 30 20 10 0

1994–95 1995–96 1996–97 1997–98 1998–99 1999–00 2000–01 2001–02 (a) 2001–02 is an estimate. Source: Department of Defence.

Chapter 4 — Defence

Defence spending by Australia’s traditional strategic partners, the United States of America and the United Kingdom, has been declining subsequent to the end of the Cold War. Over the period 1992–2001, the United States of America and United Kingdom defence expenditure as a proportion of GDP declined from 4.8% to 3.2% and from 3.8% to 2.5% respectively. These downward trends may stabilise as a result of the events of 11 September 2001 and a changing strategic picture. The United Kingdom, for example, has recently concluded its 2002 spending review, which has resulted in a planned spending increase of some $10b over the period 2002–03 to 2005–06. Australia’s defence expenditure as a proportion of GDP is shown in graph 4.6. From a regional perspective, Australia has tended to spend more on defence than its neighbours. The ASEAN nations (Association of South-East

103

Asian Nations — Indonesia, Malaysia, Singapore, Thailand, Philippines and Vietnam), all spend less than Australia (table 4.7).

The White Paper The White Paper is the Government’s long-term security direction and capability enhancement framework for Defence. Within the context of the Government’s strategic objectives, it identifies the most important Defence priorities and establishes the primary priority as the defence of Australia. In doing so, the White Paper provides guidance on those elements of capability required to meet the Government’s strategic objectives. It aligns the acquisition of new equipment and the future needs of the workforce with realistic interpretations of available resources and the challenges faced by Defence and industry in making the best use of science and technology. For further detail on Defence’s strategic objectives, see the Portfolio Budget Statements 2002–03 at .

4.6 DEFENCE OUTLAYS, Proportion of GDP(a) % 3

2

1

1992–93

1994–95

1996–97

(a) 2001–02 and 2002–03 are estimates. Source: Department of Defence.

1998–99

2000–01

0 2002–03

104

Year Book Australia 2003

4.7 1991 US$b 6.2 2.0 2.1 3.1 3.0 0.8 —

Australia Malaysia Indonesia Singapore Thailand Philippines Vietnam

1992 US$b 6.4 2.0 2.3 3.4 3.4 0.8 1.2

1993 US$b 6.8 2.2 2.3 3.4 3.4 0.9 1.0

REAL DEFENCE SPENDING(a) 1994 US$b 7.1 2.2 2.5 3.5 3.7 1.0 1.6

1995 US$b 7.0 2.4 2.6 4.0 3.8 1.1 1.4

1996 US$b 7.2 2.5 2.9 3.9 3.9 1.1 1.9

1997 US$b 7.2 2.2 2.9 4.3 3.6 1.0 2.0

1998 US$b 7.3 1.8 2.3 5.0 2.9 0.9 1.6

1999 US$b 7.5 2.0 2.4 5.3 2.6 0.9 1.7

2000 US$b 7.7 1.9 2.3 5.1 2.7 1.2 2.1

2001 US$b 7.9 2.3 2.2 5.4 2.6 1.2 2.2

(a) Data calculated in US$billion 1995. Source: Defence Intelligence Organisation, ‘Defence Economic Trends in the Asia Pacific 2001’.

4.8 DEFENCE TOTAL STAFFING — 2001–02 '000 60

40

20

0 ADF permanent

Reserves

Civilian

Source: Department of Defence.

People With over 85,000 people, Defence is one of Australia’s largest employers. As shown in graph 4.8, over half this workforce (58%) are full-time ADF personnel. In addition, a significant proportion (22%) are employed in the ADF Reserves (consisting of almost 80% Army personnel) and a further 19% are civilians. Table 4.9 represents the division of Defence personnel across these categories. The table shows the distribution of ADF personnel across the three Services. Army personnel represent almost half the full-time ADF, and 80% of the Reserves, with the remaining personnel divided between the Navy and the Air Force.

4.9

AUSTRALIAN DEFENCE FORCE STAFFING, By Service — 2001–02

Navy Army Air Force Total

ADF full-time 12 598 25 012 13 322 50 932

Source: Department of Defence.

ADF Reserves 1 544 15 669 1 655 18 868

Chapter 4 — Defence

Recruitment and retention The ADF has experienced difficulty in recent years in maintaining personnel numbers. This has resulted from relatively high separation rates and an inability to achieve recruiting targets in order to compensate. A reversal of this downward trend

105

finally occurred in 2001–02 (see graph 4.10), with recruitment figures marginally higher than separation rates over the year. This is good news for the ADF, but the trend needs to continue into the coming years to be considered a success, and there remain shortages in specialist areas across the Services that still need to be addressed.

4.10 AUSTRALIAN DEFENCE FORCE, Recruitment and separation '000 7.0

6.0

5.0

4.0 Recruitment Separation

1993–94

1995–96

1997–98

1999–00

3.0

2001–02

Source: Department of Defence.

Reserves and Cadets Reserves The Australian Defence Forces (ADF) Reserves make up over a quarter of the total ADF and play a vital role in Australia’s defence capability. The role of the Reserves is changing to suit the needs of a modern defence force. They are no longer viewed as solely a mobilisation base in times of major conflict. Reserves also contribute to operations arising at short notice, help sustain operations, assist in domestic peacetime operations and provide additional capacity to support periods when the ADF requires extra personnel to accommodate training and operational schedules. This has been illustrated by recent deployments of Reserves to East Timor and Bougainville, as well as support to the 2000 Olympic and Paralympic Games. The November 2002 battalion rotation to East Timor, for the first time, will include a Reserve-based company. The Government has acknowledged the changing place of the Reserves in the Defence White Paper. Like the Cadet program, the

importance of the Reserves was emphasised in the White Paper, with initiatives outlined to improve legislation on their employment, training opportunities, recruitment and retention strategies, and links to the broader community.

Cadets The ADF Cadets is a youth training organisation that provides leadership and initiative training while developing the interest of young people in the ADF. The program is aimed at youth between the ages of twelve and a half and eighteen, and is conducted within a military context in schools and other community settings. There are currently around 25,000 Cadets participating in the program across Australia. The Cadet scheme performs the dual functions of developing the individual and strengthening the ADF. Cadets cultivate personal and team qualities that will benefit them, and their communities, regardless of what path they choose in later life, as well as fostering community spirit and service in participants.

106

Year Book Australia 2003

At the same time, the scheme provides a tangible link for the ADF to the wider community, encouraging community involvement with and support for the ADF. Nor is this the only benefit of the scheme to the ADF. The 1999 ADF census revealed that 22% of full-time ADF members, and 25% of active Reserves, were involved in the Cadet scheme

prior to joining the Services, and the retention rate for Service personnel previously involved in the Cadets is also proportionally higher. The Government recognised the value of Cadets to the community and the ADF in the Defence White Paper, with funding being boosted to $30m per year by 2002 in order to expand and improve the scheme.

Chapter 4 — Defence

107

Bibliography Publications Department of Defence: Defence 2000: Our Future Defence Force. Available at Defence Annual Report 2001–02. Available at Minister for Defence, Portfolio Budget Statements 2002–03. Available at

Defence web sites Department of Defence, Minister for Defence,

Related web sites Australian Strategic Policy Institute, Commonwealth Department of Foreign Affairs and Trade, Commonwealth Department of Immigration and Multicultural and Indigenous Affairs, Commonwealth Department of Veterans’ Affairs,

5

Population Introduction

111

Population size and growth

111

Population size

111

Population growth

112

Aboriginal and Torres Strait Islander population

114

Population projections

115

Population distribution

119

Population age–sex structure

122

Births

122

Deaths

126

International migration

128

Asia-born arrivals

130

Country of birth

132

Marriages and divorces

133

Marriages

133

De facto relationships

135

Divorces

136

Households and families Household and family projections

137 139

Citizenship

141

Religion

143

Languages

145

Bibliography

147

Chapter 5 — Population

Introduction Population statistics are measures of the size, growth, composition and distribution of the population as well as the components that shape population change. Although population statistics are not in themselves indicators of wellbeing, they underpin the discussion of a wide range of issues relating to the population, including immigration, cultural diversity, ageing and population sustainability. The changing size and distribution of Australia’s population have implications for service provision and delivery in areas such as health, education, housing and the labour market. Population trends underlie many social changes and assist in the planning of social and economic policy. The size, composition and distribution of the population are also important with respect to environmental issues and outcomes. The principal source of data on the Australian population is the Census of Population and Housing, which has been conducted at five-yearly intervals since 1961. The most recent census was in 2001, and some results from it are included in this chapter.

Population size and growth This section examines the size, growth, distribution and age structure of the Australian population. There is an emphasis on changes over time, especially changes in the growth rate of the population.

5.1

111

As shown in table 5.1, Australia’s estimated resident population at June 2001 was just under 19.5 million, an increase of 1.4% over the previous year. Australia’s growth rate of 1.3% for the 12 months to June 2000 was the same as the overall world growth rate. As shown in table 5.2, growth rates for Japan (0.2%), Germany (0.3%), the United Kingdom (0.3%) and New Zealand (0.5%) were considerably lower than that of Australia. In contrast, the populations of Singapore (with a growth rate of 3.6%), Papua New Guinea (2.5%), Hong Kong (SAR of China) (1.8%), Indonesia (1.7%) and India (1.6%) grew at faster rates than Australia’s population.

Population size Australia’s population of 19.5 million at June 2001 was around 2.2 million greater than in 1991 and over 15.7 million more than the 1901 population of 3.8 million. Graph 5.3 shows the growth in Australia’s population since 1788. The main component of Australia’s population growth has been natural increase (the difference between births and deaths), which has contributed about two-thirds of the total growth since the beginning of the 20th century. Net overseas migration has also contributed to natural increase, albeit indirectly, through children born to migrants. Components of population growth are discussed in more detail in the next section.

ESTIMATED RESIDENT POPULATION AND COMPONENTS OF POPULATION CHANGE(a) Population

Births(a) Deaths(a) Year ended 30 June

1996 1997 1998 1999 2000 2001

’000 250.4 253.7 249.1 250.0 249.3 248.7

’000 126.4 127.3 129.3 128.3 128.4 128.9

Natural increase(a)

Net permanent and long-term movement

Category jumping(b)

Net overseas migration(c)

’000 124.0 126.4 119.9 121.7 120.9 119.8

’000 109.7 94.4 79.2 96.5 107.3 n.y.a.

’000 –5.5 –7.3 7.2 –11.4 –8.2 n.y.a.

’000 104.1 87.1 86.4 85.1 99.1 109.7

At end of period Increase(d) Increase ’000 18 310.7 18 537.9 18 759.6 18 984.2 19 225.3 19 485.3

’000 239.0 227.1 221.7 224.6 241.2 259.9

% 1.3 1.2 1.2 1.2 1.3 1.4

(a) Numbers of births and deaths are on a year of occurrence basis and differ from those shown in the births and deaths sections of this chapter. (b) An adjustment for the effect of persons whose duration of stay (category) differs from their stated intentions, entailing a reclassification from short-term to permanent/long-term or vice versa. (c) Net overseas migration is the sum of the net permanent and long-term movement plus category jumping. (d) The difference between total growth and the sum of natural increase and net migration during 1996–2001 is due to preliminary intercensal discrepancy. Source: Australian Demographic Statistics (3101.0).

112

Year Book Australia 2003

5.2

POPULATION SIZE AND RATE OF GROWTH FOR SELECTED COUNTRIES Population as at June 1999 million 19.0 1 250.5 31.0 82.6 7.0 997.9 221.1 126.3 47.0 3.8 4.8 4.0 22.0 59.4 273.1 6 002.5

Country

Australia China Canada Germany Hong Kong (SAR of China) India Indonesia Japan Korea, Republic of New Zealand Papua New Guinea Singapore Taiwan United Kingdom United States of America World

2000 million 19.2 1 261.8 31.3 82.8 7.1 1 014.0 224.8 126.6 47.5 3.8 4.9 4.2 22.2 59.5 275.6 6 080.1

Increase % 1.3 0.9 1.0 0.3 1.8 1.6 1.7 0.2 0.9 0.5 2.5 3.6 0.8 0.3 0.9 1.3

Source: Australian Demographic Statistics (3101.0); Statistics New Zealand, ‘National Population Estimates’; US Bureau of the Census, ‘International Data Base’.

5.3 POPULATION OF AUSTRALIA million 20 15 10 5 0 1788

1830

1873

1915

1958

2001

Source: Australian Demographic Statistics (3101.0); Australian Demographic Trends (3102.0); Official Year Book of the Commonwealth of Australia 1901–1910.

Table 5.4 shows that population growth has not occurred evenly across the states and territories. At Federation, South Australia had nearly twice the population of Western Australia, which in turn had only slightly more people than Tasmania. However, in 1982 Western Australia surpassed South Australia as the fourth most populous state.

Population growth Population growth results from natural increase and net overseas migration (net permanent and long-term arrivals and departures plus an adjustment for category jumping (see footnote (b) to table 5.1)).

Australia’s population grew from 3.8 million at the beginning of the 20th century to 19.5 million in 2001. During the 1950s Australia experienced consistently high rates of growth, with an average annual increase of 2.3% from 1950 to 1959, while during the 1930s Australia experienced relatively low growth (0.9%). Natural increase has been the main source of the growth since the beginning of the 20th century, contributing two-thirds of the total increase between 1901 and 2001. Net overseas migration, while a significant source of growth, is more volatile, fluctuating under the influence of government policy as well as political, economic and social conditions in Australia and the rest of the world.

Chapter 5 — Population

5.4 30 June

1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 1999 2000 2001

NSW ’000 1 361.7 1 660.4 2 103.4 2 554.5 2 798.3 3 278.0 3 918.5 4 725.5 5 234.9 5 898.7 6 438.6 6 520.2 6 609.3

Vic. ’000 1 203.0 1 319.4 1 535.7 1 799.5 1 933.5 2 276.6 2 930.4 3 601.4 3 946.9 4 420.4 4 700.7 4 759.0 4 822.7

Qld ’000 502.3 617.5 766.4 926.8 1 038.3 1 227.7 1 527.5 1 851.5 2 345.2 2 961.0 3 508.6 3 570.3 3 635.1

113

POPULATION SA ’000 356.1 410.8 497.1 575.8 600.3 732.4 971.5 1 200.1 1 318.8 1 446.3 1 499.2 1 506.8 1 514.9

WA ’000 188.6 287.8 333.9 432.2 474.8 580.3 746.8 1 053.8 1 300.1 1 636.1 1 854.4 1 879.9 1 906.1

Tas. ’000 171.7 188.6 212.0 224.0 239.7 286.2 350.3 398.1 427.2 466.8 472.0 472.1 472.9

NT ’000 4.8 3.3 3.9 5.0 10.1 15.6 44.5 85.7 122.6 165.5 194.2 197.4 200.0

ACT ’000 .. 1.8 2.6 8.6 15.0 24.9 58.8 151.2 227.6 289.3 313.8 317.0 321.7

Aust.(a) ’000 3 788.1 4 489.5 5 455.1 6 526.5 7 109.9 8 421.8 10 548.3 13 067.3 14 923.3 17 284.0 18 984.2 19 225.3 19 485.3

(a) The population for Australia includes Other Territories in 1999, 2000 and 2001. Other Territories include Jervis Bay Territory, previously included with the ACT, as well as Christmas Island and the Cocos (Keeling) Islands, previously excluded from population estimates for Australia. Source: 1901–91: Australian Historical Population Statistics – on AusStats (3105.0.65.001); 1999–2001: Australian Demographic Statistics (3101.0).

The yearly growth rates due to natural increase and net overseas migration from 1901 to 2001 are shown in graph 5.5. In 1901 the rate of natural increase was 14.9 persons per 1,000 population. Over the next four decades the rate increased (to a peak of 17.4 per 1,000 population in the years 1912, 1913 and 1914), then declined (to a low of 7.1 per 1,000 population in 1934 and 1935). In the mid to late 1940s the rate increased sharply as a result of the beginning of the baby boom and the immigration of many young people who then had children in Australia, with a plateau of rates of over 13.0 persons per 1,000 population for every year from 1946 to 1962.

Since 1962, falling fertility has led to a fall in the rate of natural increase. In 1971 the rate was 12.7 persons per 1,000 population; a decade later it had fallen to 8.5. In 1996 the rate of natural increase fell below 7 for the first time, with the downward trend continuing from then on. ABS population projections indicate that continued low fertility, combined with the increase in deaths from an ageing population, will result in natural increase falling below zero sometime in the mid 2030s. Since 1901, the crude death rate has fallen from 12.2 deaths per 1,000 population to 6.6 in 2001. Crude birth and death rates from 1901 to 2001 are shown in graph 5.6.

5.5 COMPONENTS OF POPULATION GROWTH rate(a) 20

Natural increase Net overseas migration(b)

15 10 5 0 –5 1901

1915

1929

1943

1958

1972

1986

2001

(a) Rate per 1,000 population. (b) Excludes movements of troops for the periods 1914–20 and 1939–47. Source: Australian Demographic Statistics (3101.0); Australian Historical Population Statistics – on AusStats (3105.0.65.001).

114

Year Book Australia 2003

5.6 COMPONENTS OF NATURAL INCREASE rate(a) 32

Crude birth rate Crude death rate

24 16 8 0 1901

1921

1941

1961

1981

2001

(a) Rate per 1,000 population. Source: Australian Demographic Statistics (3101.0); Australian Historical Population Statistics – on AusStats (3105.0.65.001).

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 have put the figure at over 1 million, while recent archaeological finds suggest 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 (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 origin. This is reflected in the large increases in the number of people who are identified as Indigenous in each census, increases in excess of those which can be attributed to natural increase in the Indigenous population. Table 5.7 shows the distribution of the Indigenous population by state and territory between 1901 and 2001. The Indigenous population has a much younger age structure than that of the total Australian population (see graph 5.8), with 39% of the

population aged under 15 (compared to 21% for the total population), and only 3% aged over 65 (compared to 13% of the total population). In 2001, the median age of the Indigenous population was 21 years, compared to 36 years for the total population. This age structure is largely a product of high fertility and high mortality among the Indigenous population. Although the total fertility rate among Indigenous women has fallen in recent decades, from around six babies per woman in the 1960s to 2.1 babies per woman in 2001, it remains higher than the total fertility rate among the total female population (1.7 babies per woman in 2001). The high mortality experienced by the Indigenous population is reflected in life expectancy at birth, which in 1998–2000 was about 56 years for males and 63 years for females — around 20 years less than the respective life expectancies of all males and females in Australia in 1998–2000. While most of the total Australian population is concentrated along the east and (to a lesser extent) the south-west coasts, the Indigenous population is much more widely spread (see map 5.9). About 90% of Australia’s Indigenous population live in areas covering 23% of the continent whereas 90% of Australia’s total population are contained within just 2.2% of the continent. This reflects the fact that Indigenous people are much more likely to live in remote areas than the rest of the population, and that there is a higher level of urbanisation among the non-Indigenous population than the Indigenous population. However, most Indigenous people live in urban areas of Australia.

Chapter 5 — Population

5.7

ESTIMATES OF THE INDIGENOUS POPULATION(a) 1901(b)

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia

115

no. 7 434 652 26 670 5 185 30 000 157 23 235 .. 93 333

1991(c)

% 8.0 0.7 28.6 5.6 32.1 0.2 24.9 .. 100.0

no. 75 020 17 890 74 214 17 239 44 082 9 461 43 273 1 616 282 979

1996(d)

% 26.5 6.3 26.2 6.1 15.6 3.3 15.3 0.6 100.0

no. 109 925 22 598 104 817 22 051 56 205 15 322 51 876 3 058 386 049

% 28.5 5.9 27.2 5.7 14.6 4.0 13.4 0.8 100.0

2001(e) no. 135 319 27 928 126 035 25 620 66 069 17 442 57 550 3 941 460 140

% 29.4 6.1 27.4 5.6 14.4 3.8 12.5 0.9 100.0

(a) Australian estimates for 1996 and 2001 include Other Territories. ACT estimates for 1991 include Jervis Bay. (b) Estimates in 1901 based on separate state censuses. WA number was estimated without an enumeration of the Indigenous population. (c) Estimate based on the 1991 Census of Population and Housing. (d) Estimate based on the 1996 Census of Population and Housing. (e) Preliminary estimate based on the 2001 Census of Population and Housing. Source: Experimental Estimates of Indigenous Australians, Electronic Delivery (3238.0.55.001); Experimental Estimates of the Aboriginal and Torres Strait Islander Population (3230.0); Occasional Paper: Population Issues, Indigenous Australians (4708.0); Population Distribution, Aboriginal and Torres Strait Islander Australians (4705.0).

5.8 AGE STRUCTURES OF THE INDIGENOUS AND TOTAL POPULATIONS — 2001 Age 85+ 80–84

Indigenous population Total population

75–79 70–74 65–69 60–64 55–59 50–54 45–49 40–44 35–39 30–34 25–29 20–24 15–19 10–14 5–9 0–4 7

6

5

4 3 Males (%)

2

1

0

0

1

2

3 4 Females (%)

5

6

7

Source: Experimental Estimates of Indigenous Australians, Electronic Delivery (3238.0.55.001).

Population projections The ABS has published projections of the Australian population to the year 2101, based on a combination of assumptions concerning future levels of births, deaths and migration. Three main series of projections have been published, based on differing levels of these variables.

Series I assumes an annual net overseas migration gain of 110,000, high net internal migration gains and losses for states and territories and a total fertility rate of 1.75 babies per woman by 2008–09, then remaining constant. Series II assumes an annual net overseas migration gain of 90,000, medium net internal migration gains and losses for states and territories, and a total fertility rate falling to 1.6 babies per woman by 2008–09, then remaining constant. Series III assumes an

116

Year Book Australia 2003

annual net overseas migration gain of 70,000, generally small net internal migration gains and losses for states and territories, and a total fertility rate falling to 1.6 births per woman in 2008–09, then remaining constant. All series assume that the 1986–96 rate of improvement in life expectancy of 0.30 years per year for males and 0.22 years for females continues for the next five years and then declines gradually, resulting in life expectancy at birth of 83.3 years for males and 86.6 years for females in 2051. After this it is assumed to remain constant.

Graph 5.10 shows that Australia’s population is projected to grow from 19 million in 1999 to between 24.1 and 28.2 million in 2051. By 2101 the population is projected to rise to between 22.6 and 31.9 million. The rate of population growth is projected to vary at different times during the projection period, with a clear long-term declining trend from 1.2% in 1998–99 to between 0.0% and 0.4% by 2050–51 and to between –0.1% and 0.2% by 2100–01. The reason for this slowing in growth is mainly a projected decline in the natural increase (births minus deaths) of the population, as a result of the increasing number of deaths occurring in a rapidly ageing population as well as low and declining fertility levels.

5.9 DISTRIBUTION OF THE INDIGENOUS POPULATION(a) — 2001

 

 

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 (a) Represents a random distribution within Statistical Local Area boundaries. Source: ABS data available on request, 2001 Census of Population and Housing.

Chapter 5 — Population

117

5.10 PROJECTED POPULATION — As at 30 June million 33

Series I Series II Series III

30 27 24 21 18 1991

2011

2031

2051

2071

2091

2111

Source: Population Projections, Australia, 1999 to 2101 (3222.0).

5.11

ACTUAL AND PROJECTED POPULATION — 30 June 1999

2021

2051

Sydney Balance of New South Wales Total New South Wales

Actual ’000 4 041.4 2 370.3 6 411.7

Series I ’000 5 143.2 2 696.0 7 839.2

Series II ’000 5 039.7 2 560.7 7 600.4

Series III ’000 4 986.9 2 493.7 7 480.6

Series I ’000 6 215.8 2 785.8 9 001.6

Series II ’000 5 857.8 2 390.0 8 247.8

Series III ’000 5 704.7 2 206.0 7 910.7

Melbourne Balance of Victoria Total Victoria

3 417.2 1 295.0 4 712.2

4 101.6 1 324.9 5 426.5

4 081.8 1 337.3 5 419.0

4 177.5 1 371.5 5 549.0

4 492.6 1 135.5 5 628.1

4 393.2 1 154.0 5 547.3

4 638.8 1 238.3 5 877.1

Brisbane Balance of Queensland Total Queensland

1 601.4 1 910.9 3 512.4

2 364.4 2 824.7 5 189.1

2 215.5 2 593.2 4 808.7

2 083.3 2 453.0 4 536.2

3 311.0 3 917.9 7 229.0

2 864.1 3 237.2 6 101.3

2 510.9 2 862.8 5 373.7

Adelaide Balance of South Australia Total South Australia

1 092.9 400.2 1 493.1

1 142.2 421.3 1 563.6

1 172.3 390.5 1 562.8

1 221.2 367.7 1 588.9

1 031.1 392.0 1 423.1

1 102.2 308.3 1 410.5

1 228.6 248.5 1 477.1

Perth Balance of Western Australia Total Western Australia

1 364.2 496.8 1 861.0

1 929.5 682.6 2 612.1

1 817.5 650.7 2 468.2

1 725.2 611.0 2 336.2

2 565.4 912.3 3 477.7

2 231.5 806.3 3 037.8

1 981.8 692.7 2 674.5

Hobart Balance of Tasmania Total Tasmania

194.2 276.1 470.3

202.0 283.1 485.2

187.1 254.9 442.0

169.0 239.3 408.2

186.7 249.0 435.7

146.2 173.1 319.3

99.7 131.6 231.3

Darwin Balance of Northern Territory Total Northern Territory

88.1 104.8 192.9

145.4 163.2 308.7

129.3 135.8 265.0

104.5 123.2 227.7

242.8 263.9 506.6

192.2 177.4 369.5

121.2 141.8 263.0

Total Australian Capital Territory

310.2

397.9

356.5

309.6

489.3

371.7

248.3

Capital city/balance of state

Total capital cities Total balance of states and territories(a)(b) Australia(b)

12 109.5 15 426.1 14 999.5 14 777.3 18 534.7 17 159.0 16 533.9 6 857.3

8 399.7

7 927.0

7 662.9

9 660.0

8 249.6

7 525.1

18 966.8 23 825.9 22 926.4 22 440.2 28 194.7 25 408.5 24 059.0

(a) Excludes Balance of ACT. (b) Includes Other Territories. Source: Population Projections, Australia, 1999 to 2101 (3222.0).

118

Year Book Australia 2003

The projections show that the ageing of the population, already evident, is set to continue. The 1999 median age of 34.9 years is projected to increase to between 43.6 and 46.5 years in 2051 and to between 44.0 and 46.6 years in 2101.

The populations of most states and territories are expected to increase from 1999 to 2051, with the largest increases projected for the Northern Territory (between 36% and 163%), followed by Queensland (between 53% and 106%) and Western Australia (between 44% and 87%) which are well above those of Australia (between 27% and 49%).

The age structure of the population will change noticeably by 2101. Graph 5.12 shows a heavier concentration in the ages 50 years and over and smaller increases or slight declines in the younger ages.

Tasmania and South Australia are the only states where the population is projected to decline under each projection series. Tasmania’s population is projected to decline by between 7% and 51% by 2051, from 470,300 in 1999 to between 231,300 and 435,700 in 2051. South Australia’s population is projected to be between 1,410,500 and 1,477,100 persons in 2051, a decline of between 1% and 6% from its 1999 level of 1,493,100.

The proportion of the population aged 65 years and over is expected to increase substantially, from 12% in 1999 to between 24% and 27% in 2051 and to between 25% and 28% in 2101. The proportion aged 85 years and over is expected to almost quadruple, from a little over 1% in 1999 to around 5% in 2051 and around 6% in 2101. Table 5.13 summarises changes from 1901 to 1999, and projections to 2101, in population size, age structure, and proportion living in capital cities.

These projections are summarised in table 5.11.

5.12 AGE STRUCTURE OF THE POPULATION '000 400 300 200 1999 Series I, 2101 Series II, 2101 Series III, 2101

100 0 0

20

40

60 Age (years)

80

100(a)

(a) The 100 years age group includes all ages 100 years and over and therefore is not strictly comparable with single year ages in the rest of the graph. Source: Population by Age and Sex, Australian States and Territories (3201.0); Population Projections, Australia, 1999 to 2101 (3222.0).

5.13 Total population Proportion of population aged 0–14 years 15–64 years 65–84 years 85+ years Males per 100 females Median age Proportion living in capital cities

POPULATION, Summary indicators

Units ’000

1901 3 773.8

1947 7 579.4

1971 13 067.3

1999 18 966.8

2021(a) 22 926.4

2051(a) 25 408.5

2101(a) 25 254.1

% % % % no. years %

35.1 60.8 3.9 0.1 110.1 22.5 36.8

25.1 66.8 7.7 0.4 100.4 30.7 51.2

28.7 63.0 7.8 0.5 101.1 27.5 63.2

20.7 67.1 11.0 1.3 99.1 34.9 63.8

16.1 65.5 16.3 2.1 99.2 41.2 65.4

14.4 59.6 21.0 5.1 98.8 46.0 67.5

14.4 58.6 21.3 5.7 99.4 46.1 n.a.

(a) Series II population projections. Source: Australian Demographic Statistics (3101.0); Australian Demography, 1947; Census of the Commonwealth of Australia, 1911; Population Projections, Australia, 1999 to 2101 (3222.0).

Chapter 5 — Population

Population distribution Most of Australia’s population is concentrated in two widely separated coastal regions. By far the largest of these, in terms of area and population, lies in the south-east and east. The smaller of the two regions is in the south-west of the continent. In both coastal regions the population is concentrated in urban centres, particularly the state and territory capital cities. Australia’s population density at June 2001 was 2.5 people per square kilometre. The highest population density was in inner areas adjacent to city centres, such as Sydney (C) - Remainder (8,400 people per square kilometre), Waverley (A) (6,900) and North Sydney (A) (5,700) in Sydney,

and Port Phillip (C) - St Kilda (5,500) in Melbourne. At the other extreme, there were around 250 Statistical Local Areas (SLAs) in Australia with less than one person per square kilometre. The distribution of Australia’s population is shown in map 5.14. New South Wales remained the most populous state, with 6.6 million people at June 2001. From 1996 to 2001 the fastest growth occurred in the Northern Territory, which grew over the five years by a total of 10.0%, followed by Queensland (8.9% over five years) and Western Australia (8.0% over five years). Tasmania’s population declined over the five years to June 2001 (down by –0.3% over five years) (see table 5.15).

5.14 POPULATION(a) DISTRIBUTION — 2001

 

 

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uš?ršMu®®®š|Hr|fH

119





(a) Estimated resident population. Source: ABS data available on request, 2001 Census of Population and Housing.

120

Year Book Australia 2003

The main factor changing the distribution of Australia’s population has been internal migration. During 2000–01, 380,600 people moved from one state or territory to another, 13,200 more than in the previous year (367,400). In 2000–01, Victoria, Queensland and the Australian Capital Territory recorded net interstate migration gains. All other states, and the Northern Territory, experienced net losses due to interstate migration, although this was offset in all cases by growth due to natural increase and net overseas migration. Table 5.16 sets out the estimated resident population in major population centres at June 1996 and 2001. Australia’s capital cities accounted for 66% of Australia’s population growth between 1996 and 2001, the most significant increases

5.15 Year ended 30 June

NSW %

Vic. %

1996 1997 1998 1999 2000 2001

0.66 0.69 0.63 0.64 0.63 0.62

0.63 0.63 0.60 0.58 0.59 0.56

1996 1997 1998 1999 2000 2001

0.78 0.60 0.56 0.58 0.63 0.71

0.57 0.46 0.45 0.46 0.53 0.58

1996 1997 1998 1999 2000 2001

–0.24 –0.19 –0.22 –0.23 –0.24 –0.26

–0.28 –0.10 0.03 0.09 0.14 0.17

1996 1997 1998 1999 2000 2001

1.27 1.31 1.19 1.22 1.27 1.37

0.95 0.93 1.03 1.09 1.24 1.34

being on the outskirts of these metropolitan regions. Of all the capital cities, Sydney and Melbourne had the largest growth in the five years to 2001, with increases of 273,600 and 205,500 people respectively. The fastest capital city population growth over the 1996–2001 period occurred in Darwin, by an average of 2.5% per year, followed by Brisbane (1.7%). Many of Australia’s inner city areas, especially in the larger cities, grew rapidly in the five years to June 2001. The Local Government Area (LGA) of the City of Sydney recorded Australia’s highest average annual growth rate of 18.1%. The LGAs of Perth (up 7.3% per year) and Melbourne (up 5.6% per year) also experienced rapid growth between 1996 and 2001. The inner-Brisbane SLAs of Fortitude Valley - Inner and City - Inner were among the fastest-growing SLAs in Queensland over this period.

POPULATION GROWTH RATES Qld %

SA %

WA %

Tas. %

NT %

ACT %

Aust. %

0.53 0.52 0.44 0.56 0.44 0.50

1.59 1.50 1.51 1.44 1.40 1.42

1.00 0.99 0.92 0.94 0.89 0.90

0.69 0.69 0.65 0.65 0.64 0.62

0.08 0.05 0.02 0.02 0.08 0.03

0.32 0.30 0.34 0.50 0.45 0.50

0.13 –0.02 –0.03 –0.15 –0.08 —

0.58 0.48 0.47 0.45 0.52 0.57

–0.55 –0.77 –0.84 –0.78 –0.63 –0.54

0.18 0.98 –0.23 –0.48 –0.45 –0.84

–0.22 –1.04 –0.87 –0.39 –0.27 0.10

.. .. .. .. .. ..

0.16 –0.13 –0.29 –0.09 0.01 0.18

2.42 3.05 1.87 1.71 1.67 1.33

1.13 0.40 0.49 0.89 1.03 1.48

1.32 1.24 1.20 1.20 1.27 1.35

NATURAL INCREASE RATE 0.77 0.77 0.73 0.71 0.70 0.70

0.51 0.47 0.45 0.45 0.42 0.37

0.80 0.80 0.76 0.79 0.75 0.74

NET OVERSEAS MIGRATION RATE 0.40 0.38 0.41 0.34 0.46 0.46

0.25 0.21 0.23 0.14 0.23 0.24

0.71 0.69 0.71 0.67 0.70 0.79

NET INTERSTATE MIGRATION RATE 1.00 0.60 0.53 0.50 0.54 0.55

–0.42 –0.31 –0.22 –0.19 –0.32 –0.28

0.23 0.35 0.26 0.10 –0.04 –0.14

TOTAL POPULATION GROWTH

Source: Australian Demographic Statistics (3101.0).

2.25 1.75 1.68 1.58 1.76 1.82

0.33 0.51 0.61 0.56 0.51 0.53

1.82 1.78 1.68 1.51 1.37 1.39

Chapter 5 — Population

5.16

121

ESTIMATED RESIDENT POPULATION IN MAJOR CENTRES

Capital City Statistical Division Sydney Melbourne Brisbane Adelaide Perth Greater Hobart Darwin Canberra Statistical District Newcastle (NSW) Gold Coast-Tweed (Qld/NSW) Canberra-Queanbeyan (ACT/NSW) Wollongong (NSW) Sunshine Coast (Qld) Geelong (Vic.) Townsville (Qld) Cairns (Qld) Toowoomba (Qld) Launceston (Tas.) Albury-Wodonga (NSW/Vic.) Ballarat (Vic.) Bendigo (Vic.) Burnie-Devonport (Tas.) Bathurst-Orange (NSW) La Trobe Valley (Vic.) Mackay (Qld) Rockhampton (Qld) Mandurah (WA) Bundaberg (Qld) Wagga Wagga (NSW) Bunbury (WA) Coffs Harbour (NSW) Mildura (Vic.) Shepparton (Vic.) Tamworth (NSW) Hervey Bay (Qld) Gladstone (Qld) Port Macquarie (NSW) Dubbo (NSW) Geraldton (WA) Lismore (NSW) Nowra-Bomaderry (NSW) Warrnambool (Vic.) Kalgoorlie/Boulder (WA) (a) Average annual growth rate. Source: Australian Demographic Statistics (3101.0).

1996 ’000

2001 ’000

Change(a) %

3 881.1 3 283.3 1 520.0 1 078.4 1 295.1 195.7 95.8 307.9

4 154.7 3 488.8 1 653.4 1 110.5 1 397.0 197.8 108.2 321.3

1.4 1.2 1.7 0.6 1.5 0.2 2.5 0.9

463.4 354.1 345.1 255.7 156.4 152.2 122.4 106.7 102.0 98.8 92.7 79.1 74.2 79.2 71.6 75.5 61.1 64.5 50.0 54.1 51.4 42.4 42.1 41.1 41.1 40.8 35.9 37.3 32.7 33.0 29.7 31.4 28.7 27.4 29.0

494.4 426.4 364.4 271.1 185.7 160.1 134.6 113.4 109.3 98.8 97.9 83.8 79.7 77.6 76.0 75.3 64.8 63.4 60.1 56.9 52.1 50.2 46.1 45.0 44.9 42.4 39.7 39.2 38.1 35.2 31.5 31.0 30.5 29.6 29.5

1.3 3.8 1.1 1.2 3.5 1.0 1.9 1.2 1.4 — 1.1 1.1 1.4 –0.4 1.2 –0.1 1.2 –0.3 3.8 1.0 0.3 3.4 1.8 1.8 1.7 0.8 2.0 1.0 3.1 1.3 1.2 –0.3 1.2 1.6 0.3

122

Year Book Australia 2003

Other major population centres experiencing significant population increases between 1996 and 2001 were the Statistical Districts of Gold Coast-Tweed on the Queensland–New South Wales border, and Mandurah in Western Australia, both of which grew by 3.8%, while Sunshine Coast in Queensland and Bunbury in Western Australia increased by an average 3.5% and 3.4% per year respectively. Rapid population growth was also recorded in most LGAs elsewhere along the Queensland, New South Wales and Victorian coastline and in some LGAs in the south-west corner of Western Australia. Some areas of Australia have experienced significant population decline in recent years. While some of the population declines have occurred in established suburbs within capital cities and major urban centres, the fastest population decline has occurred in rural areas. Most of this decline has been caused by net migration loss. Such population loss is associated with technological, social and economic changes and industry restructuring in local economies. In 1901, 64% of Australians lived outside capital cities. This proportion fell steadily, and from 1962 only 40% lived outside capital cities. Between 1976 and 2001 the decline appeared to have halted, with a slight increase in the proportion of people living in the balance of states and territories (see graph 5.17), which may have been due to people moving to coastal regions and other urban centres.

Population age–sex structure Since the turn of the 20th century the population of all ages has grown significantly, but it has also aged. This is illustrated in graph 5.18 for the years 1901 and 2001. Since the first half of the 20th century, Australians have been having smaller families. This is reflected in a fall in the proportion of children (aged under 15 years) within the population from 35% in 1901 to 21% in 2001. Conversely, the proportion of the population aged 65 years and over has increased markedly, from 4% in 1901 to 13% in 2001. These features are shown in graph 5.19.

Births Since 1901 Australia has experienced two long periods of fertility decline: from 1907 to 1934, and from 1962 to the present. For 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 Great Depression, the total fertility rate had fallen 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 (see graph 5.20). After the 1961 peak 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 by the oral contraceptive pill becoming available.

5.17 POPULATION IN BALANCES OF STATES AND TERRITORIES % 75 60 45 30 15 0 1901

1921

1941

1961

1981

Source: Australian Historical Population Statistics – on AusStats (3105.0.65.001).

2001

Chapter 5 — Population

123

5.18 PROFILE OF AUSTRALIA’S POPULATION, By age and sex — 1901 and 2001 Age 100+

1901 2001

9595 9090 8585 8080 7575 7070 6565 6060 5555 5050 4545 4040 3535 3030 2525 2020 1515 1010 5 5 0 0 200

150 100 Males ('000)

50

0

0

50

100 150 Females ('000)

200

Source: Census of the Commonwealth of Australia, 1911; Population by Age and Sex, Australian States and Territories (3201.0).

124

Year Book Australia 2003

5.19 POPULATION, By age groups % 100

0–14 years 15–64 years 65+ years

80 60 40 20 0 1921

1941

1961

1981

2001

Source: Australian Demographic Statistics (3101.0); Australian Demography.

During the 1970s the total fertility rate dropped again, falling to below replacement level (2.1 babies per woman) in 1976, where it has remained since. This fall was more marked than the fall in the early 1960s and has been linked to the 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. According to United Nations projections, the world average total fertility rate for 2000–05 will be 2.68 babies per woman, declining from the relatively constant five births per woman that existed until the late 1960s and early 1970s. However, total fertility rates for individual countries vary remarkably. Many factors can influence a country’s fertility rate, such as differences in social and economic development and the use of contraceptives. In general, developing countries have higher fertility rates while developed countries usually have lower rates. While Australia’s total fertility rate for 2000 of 1.75 babies per woman is well below the world’s average, it is comparable to that of other developed countries, most of which have also experienced sustained fertility decline. According to the United Nations estimated average total fertility rates for 2000–05, Armenia, Bulgaria, Latvia and Ukraine share the lowest total fertility rate (1.10) followed by Spain (1.13), and Slovenia

and the Russian Federation (each 1.14). In contrast, the West African and Asian countries have relatively high fertility rates, with Niger (8.00) and Yemen (7.60) the highest. Over the past 50 years the total fertility rate has declined for most countries. Of the selected countries shown in graph 5.21, the total fertility rates of the Asian countries have shown the largest declines. Singapore and China experienced large declines in the total fertility rate of 5.0 and 4.4 children per woman respectively, between 1950–55 and 2000–05. Australian women continue to delay child-bearing. The median age at child-bearing has increased from 26.6 years in 1980 to 28.3 years in 1990, then to 29.8 years in 2000 (graph 5.22). In 1980 most births were to women aged 25 years and over, with 8.0% of all births to women aged 25 years. In 2000, most births were by women aged 29 years and over, with 7.6% of all births to women aged 28 years and 7.4% of all births to women at 29 years. Over the past 20 years there has been a fall in the proportion of births to teenage mothers, from 7.8% in 1980 to 4.6% in 2000. Conversely, the proportion of births to women aged 40 years and above has increased, from 0.8% in 1980 to 2.6% in 2000. Table 5.23 brings together summary measures of fertility for census years between 1901 and 1986, and individual years between 1990 and 2000.

Chapter 5 — Population

5.20 TOTAL FERTILITY RATE rate(a) 4

3

2

1901

1920

1940

1960

1 2000

1980

(a) Average number of babies per woman according to the age-specific fertility rates for each year. Source: Australian Demographic Trends (3102.0); Births, Australia (3301.0); Hugo 2001.

5.21 INTERNATIONAL TOTAL FERTILITY RATES Australia Canada China Greece Hong Kong (SAR of China) India Indonesia Italy Japan New Zealand Papua New Guinea Singapore Sweden United Kingdom United States of America

2000–05 1950–55

0

2

4 rate

6

8

Source: United Nations Population Division, 'World Population Prospects: The 2000 Revision'.

5.22 AGE DISTRIBUTION OF WOMEN HAVING BABIES % 8

1980 2000

6 4 2 0 10

20

Source: Births, Australia (3301.0).

30 Age (years)

40

50

125

126

Year Book Australia 2003

5.23 Year ended 31 December

1901 1911 1921 1933 1947 1954 1961 1966 1971 1976 1981 1986 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

SELECTED SUMMARY MEASURES OF FERTILITY Registered births no. 102 945 122 193 136 198 111 269 182 384 202 256 239 986 223 731 276 361 227 810 235 842 243 408 262 648 257 247 264 151 260 229 258 051 256 190 253 834 251 842 249 616 248 870 249 636

Crude births(a) rate 27.2 27.2 25.0 16.8 24.1 22.5 22.8 19.3 21.6 16.2 15.8 15.2 15.4 14.9 15.1 14.7 14.5 14.2 13.9 13.6 13.3 13.1 13.0

Total fertility(b) rate (d)3.93 (d)3.69 3.12 2.17 3.08 3.19 3.55 2.89 2.95 2.06 1.94 1.87 1.91 1.86 1.89 1.86 1.85 1.83 1.80 1.78 1.76 1.75 1.75

Ex-nuptial births(c) % n.a. 5.8 4.7 4.7 4.0 4.0 5.1 7.4 9.3 10.1 13.2 16.8 21.9 23.0 24.0 24.9 25.6 26.6 27.4 28.1 28.7 29.2 29.2

(a) Number of births expressed as a proportion of the total population; the rate is per 1,000 population. (b) The number of children a woman would bear during her lifetime if she experienced current age-specific fertility rates at each age of her reproductive life. (c) Proportion of total live births which were ex-nuptial. (d) Estimated total fertility rate. Source: Australian Demographic Trends (3102.0); Births, Australia (3301.0); Hugo 2001.

Deaths Over the past century, the average life expectancy of a new-born boy has increased from 55 years in 1901–10 to 77 years in 1998–2000. Likewise, the average life expectancy of a new-born girl has increased from 59 to 82 years during the same period (graph 5.24). These represent an increase of 21.4 years for boys and 23.2 years for girls. The increase in life expectancy is due to lower death rates at all ages. The reduction in mortality in the early part of the 20th century has been attributed to improvements in living conditions, such as better water supply, sewerage systems, food quality and health education. The continuing reduction in mortality in the latter half of last century has been attributed to improving social conditions, and to 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 behavioural changes, such as dietary improvements and reduced smoking. During the 20th century the life expectancy of new-born girls was consistently higher than that of new-born boys. Up until the early 1930s, a new-born girl had a life expectancy approximately four years greater than a new-born boy, with this difference peaking at about seven years in the 1970s and early 1980s, largely due to significant declines in heart disease, stroke and respiratory disease mortality among women, combined with a slight decline in male life expectancy from accidents among males aged 15–24 years and from heart disease among 45–84 year old males. In recent years, the gap in life expectancy between new-born males and females has narrowed to about five years (5.4 years in 1998–2000). 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.

Chapter 5 — Population

127

5.24 LIFE EXPECTANCY AT BIRTH years 90

Males Females

80 70 60 50 40 1886

1904

1923

1942

1961

1980

1999

Note: The years shown are the midpoints in ranges of years, for example, 1886 is the midpoint of the range 1881–90 and 1999 is the midpoint of the range 1998–2000. Source: Deaths, Australia (3302.0).

The increase in life expectancy for older persons has implications for retirement planning and income policies. Since 1980, life expectancy of 65 year olds has increased from 14 years for males and 18 years for females, to 17 years for males and 20 years for females. Australians have an average life expectancy which compares well with that experienced in other developed nations. Among the countries shown in table 5.25, the life expectancy at birth of Australian males and females (77 and 82 years respectively) was exceeded only by that in Japan (both males and females), Hong Kong (SAR of China) (both males and females) and France (females). The life expectancy of new-born babies in Australia was higher than in New Zealand, the United Kingdom, Canada and the United States of America. The standardised death rate removes the effect of different age structures of the population, and allows a more meaningful comparison of the death rates of different sub-populations. Over the past 20 years, standardised death rates for Australia and all states and territories have decreased by about one-third (table 5.26). Of the states and territories, the Northern Territory has had the highest standardised death rate in the country for the last two decades. This can largely be attributed to high death rates among the Indigenous population. In 2000, the highest standardised death rates for both males and females were recorded in the Northern Territory, with 10.8 deaths per 1,000 standard population for males and 7.0 deaths per 1,000 standard population for females. The Australian Capital Territory recorded the lowest

standardised death rate for males (6.0), while Western Australia had the lowest standardised death rate for females (4.3). Table 5.27 brings together summary measures of mortality for census years between 1901 and 1986, and individual years between 1991 and 2000.

5.25

LIFE EXPECTANCY AT BIRTH, Selected countries — 1999

Australia(a) Canada China France Germany Hong Kong (SAR of China) India Indonesia Italy Japan Korea, Republic of Netherlands New Zealand Papua New Guinea Singapore United Kingdom United States of America

Males years 76.6 75.9 68.3 74.5 74.3 76.7 62.4 63.9 75.2 77.3 70.9 75.3 74.8 55.4 75.2 75.0 73.9

(a) Reference period for Australia is 1998–2000. Source: Deaths, Australia (3302.0); United Nations Development Programme 2000.

Females years 82.0 81.4 72.5 82.3 80.6 82.2 63.3 67.7 81.6 84.1 78.4 80.7 80.1 57.3 79.6 80.0 79.7

128

Year Book Australia 2003

5.26

STANDARDISED DEATH RATES(a) 1980

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia(b)

Males 11.6 11.4 10.9 10.5 10.9 12.4 13.0 10.2 11.3

Females 6.7 6.5 6.3 6.0 6.4 7.0 10.4 6.3 6.5

Persons 8.8 8.6 8.4 8.0 8.4 9.4 11.6 8.0 8.6

1990 Males 9.5 9.0 9.0 9.0 8.4 10.2 14.2 8.2 9.2

Females 5.7 5.5 5.4 5.4 5.1 6.1 8.5 5.5 5.6

Persons 7.4 7.0 7.0 7.0 6.6 7.9 11.3 6.7 7.2

2000 Males 7.2 6.9 7.1 7.3 6.9 7.8 10.8 6.0 7.1

Females 4.6 4.4 4.5 4.5 4.3 4.9 7.0 4.4 4.5

Persons 5.8 5.5 5.7 5.8 5.4 6.2 8.9 5.1 5.7

(a) Deaths per 1,000 standard population. The standard population used is the June 1991 population. (b) Includes Other Territories. Source: Deaths, Australia (3302.0).

5.27

SELECTED SUMMARY MEASURES OF MORTALITY Life expectancy at birth(a)

Year ended 31 December

1901 1921 1933 1947 1954 1961 1966 1971 1976 1981 1986 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Registered deaths no. 46 330 54 076 59 117 73 468 81 805 88 961 103 929 110 650 112 662 109 003 114 981 119 146 123 660 121 599 126 692 125 133 128 719 129 350 127 202 128 102 128 291

Crude death rate(b) 12.2 9.9 8.9 9.7 9.1 8.5 9.0 8.5 8.0 7.3 7.2 6.9 7.1 6.9 7.1 6.9 7.0 7.0 6.8 6.8 6.7

Infant mortality rate(c) 103.6 65.7 39.5 28.5 22.5 19.5 18.7 17.3 13.8 10.0 8.8 7.1 7.0 6.1 5.9 5.7 5.8 5.3 5.0 5.7 5.2

Males years 55.2 59.2 63.5 66.1 67.1 67.9 67.6 68.3 69.4 71.4 72.9 74.4 74.5 75.0 75.0 75.5 75.5 75.9 76.3 76.6 77.1

Females years 58.8 63.3 67.1 70.6 72.8 74.2 74.2 74.8 76.4 78.4 79.2 80.4 80.4 80.9 80.9 81.1 81.3 81.4 81.8 82.0 82.3

(a) Data for 1901 are based on the period 1901–10. Data for 1921–66 are based on three-year averages, with the year shown being the midpoint of the range. Data for 1971 onwards are based on individual years. (b) Per 1,000 population. (c) Per 1,000 live births. Source: Australian Demographic Trends (3102.0); Deaths, Australia (3302.0).

International migration Overseas migration has played an important role in changing Australia’s population. Between 1995 and 2000, 1.4 million people arrived in Australia intending to stay for one year or more (table 5.28). This includes permanent (settler) arrivals, Australian residents returning from an overseas trip of 12 months or more, and overseas visitors intending to stay 12 months or more in Australia. About 879,000 people left Australia for overseas on a permanent or long-term basis in the five years to June 2000, including Australian

residents emigrating or going overseas for 12 months or more, and overseas visitors leaving Australia after staying for 12 months or more. In 1999–2000, for the first time, net long-term movement made a greater contribution to net overseas migration than did net permanent movement (56,100 people compared with 51,200). Because population estimates include permanent and long-term movers and exclude short-term movers, adjustments are required for the net effect of changes in travel intention from short-term to permanent/long-term and vice

Chapter 5 — Population

The number of visas issued to prospective settlers varies significantly from year to year. So too does the balance between the types of visas issued. Skilled migration is a volatile component of the migration intake. Table 5.30 shows that in the six years to 1999–2000, the proportion of settlers arriving under the skilled migration category ranged from 23% in 1994–95 to 35% in 1999–2000. Of skilled migrants arriving in 1999–2000, 24% came from Europe (about three-quarters of whom were from the United Kingdom and Ireland), while South-East Asia and Africa (excluding North Africa) contributed 18% each. North-East Asia (16%) and Southern Asia (15%) also contributed relatively high proportions of skilled immigrants to Australia during 1999–2000.

versa. For example, an Australian resident may state on departure an intention to stay abroad for less than 12 months (a short-term movement). If this resident remains overseas for 12 months or more, he or she has changed travel category from short- to long-term and is regarded as a category jumper. Estimates for category jumping ensure that the estimated population reflects the population who usually live in Australia. There has been a significant change in the source countries of permanent arrivals, with settlers arriving from more diverse regions of the world since the mid 1990s compared to the late 1960s. In the five years to June 1970 almost half (46%) of settler arrivals to Australia were born in the United Kingdom and Ireland, and the top six countries of birth represented 75% of all settler arrivals in Australia. In the five years to June 2000, the United Kingdom and Ireland contributed 12% of settlers and the top six countries of birth represented 54% of settler arrivals. New Zealand contributed the largest number of settlers in the five years to June 2000: 80,600 persons, or 18% of the total (table 5.29).

In 1999–2000, 22% of settlers came as part of the family component of Australia’s immigration program. The birthplaces of these immigrants partly reflect past migration patterns. About 24% were born in Europe, 23% were born in South-East Asia, and a further 18% were born in North-East Asia. Of the 7,300 settlers arriving as part of the Humanitarian Program, 3,300 (46%) came from Europe, almost all of whom were from Southern and Eastern Europe (in particular, Bosnia–Herzegovina and Croatia). A further 2,500 immigrants (35%) arriving on humanitarian visas were born in North Africa and the Middle East.

In 1999–2000, 92,300 people arrived in Australia intending to settle, the majority of these (57%) arriving as part of the Migration Program. Another 8% arrived as part of the Humanitarian Program, while 34% were eligible to settle in Australia because of their New Zealand citizenship. The remaining 1% were in other categories such as overseas-born children of Australian citizens.

5.28

129

NET OVERSEAS MIGRATION COMPONENTS — Five years ended 30 June

Arrivals Permanent (settlers) Long-term Australian residents Overseas visitors Total Departures Permanent departures Long-term Australian residents Overseas visitors Total Category jumping Net overseas migration

1985

1990

1995

2000

468 052

616 139

462 605

438 633

269 673 158 983 896 707

272 723 226 047 1 114 875

346 239 311 384 1 120 228

391 295 536 297 1 366 225

109 889

108 003

142 385

166 771

242 559 112 637 465 093

269 080 150 421 527 501

332 683 237 421 712 489

391 231 321 246 879 248

11 779

70 139

–96 011

–25 231

443 393

657 513

311 728

461 746

Source: Australian Historical Population Statistics – on AusStats (3105.0.65.001).

130

Year Book Australia 2003

5.29 COUNTRY OF BIRTH OF SETTLER ARRIVALS — Five years ended 30 June ’000

%

371.5 73.7 61.9 53.1 22.8 19.0 804.1

46.2 9.2 7.7 6.6 2.8 2.4 100.0

United Kingdom(a) New Zealand Vietnam Lebanon South Africa Malaysia All birthplaces

86.2 39.8 30.6 18.4 10.2 8.4 344.7

25.0 11.6 8.9 5.3 3.0 2.4 100.0

1990 United Kingdom(a) New Zealand Vietnam Philippines Hong Kong (SAR of China) Malaysia All birthplaces

107.0 82.5 38.9 36.3 27.5 26.6 616.1

17.4 13.4 6.3 5.9 4.5 4.3 100.0

2000 New Zealand United Kingdom(a) China (excl. SARs and Taiwan) Former Yugoslav Republics South Africa India All birthplaces

80.6 48.1 36.3 28.3 21.4 16.4 438.6

18.4 11.0 8.3 6.5 4.9 3.7 100.0

1970 United Kingdom and Ireland Yugoslavia Italy Greece New Zealand Germany All birthplaces 1980

(a) Excludes Ireland. Source: ABS data available on request, Overseas Arrivals and Departures Collection; Department of Immigration and Multicultural Affairs, ‘Australian Immigration — Consolidated Statistics’, No. 8, 1976.

Asia-born arrivals Over the last two decades, the countries of Asia (South-East Asia, North-East Asia and Southern Asia regions) have become an increasingly important source of both settler and long-term visitor arrivals. Before the 1970s the number of settlers from Asia was small, but following the final dismantling of the White Australia Policy in the early 1970s, and the acceptance of refugees from the Vietnam war, the number of migrants from Asia began to increase. Generally, the level of permanent arrivals from Asia has followed the patterns of total permanent arrivals, reflecting the constraints of the Migration and Humanitarian Programs. The proportion of Asia-born arrivals has fluctuated markedly, peaking in 1991–92 (51%, or 54,400 arrivals) (see graph 5.31). In 1999–2000 a total of 31,100 settlers born in Asia (34% of all settler arrivals) arrived in Australia. Graph 5.32 shows that levels of long-term visitor arrivals from Asia have increased greatly over the last 10 years, after being very low during the 1970s and early 1980s. Arrivals in 1999–2000 (70,100 or 53% of all long-term visitor arrivals) were over 10 times as high as in 1979–80 and almost three times as high as in 1989–90. The main reason for this growth has been the increasing number of students travelling to Australia from Asia for educational purposes. In 1999–2000 three-quarters of all Asia-born long-term visitor arrivals were for education.

Chapter 5 — Population

5.30

SETTLER ARRIVALS, By eligibility category

1994–95 37 078 20 210 13 632 13 618 2 890 87 428

Family Skill Humanitarian New Zealand Other Total

1995–96 46 458 20 008 13 824 16 234 2 615 99 139

1996–97 36 490 19 697 9 886 17 501 2 178 85 752

1997–98 21 142 25 985 8 779 19 393 2 028 77 327

1998–99 21 501 27 931 8 790 24 680 1 241 84 143

1999–2000 19 896 32 350 7 267 31 610 1 149 92 272

Source: Department of Immigration and Multicultural Affairs, ‘Immigration Update’.

5.31 ASIA-BORN SETTLER ARRIVALS, Proportion of all settler arrivals % 60 50 40 30 20

1975

1980

1985 1990 Year ended 30 June

1995

10 2000

Source: Migration, Australia (3412.0); Overseas Arrivals and Departures, Australia (3401.0).

5.32 LONG-TERM ARRIVALS OF THE ASIA-BORN '000 150

Asia-born long-term arrivals Total long-term arrivals

120 90 60 30 0 1980

131

1985

1990 Year ended 30 June

1995

2000

Source: Migration, Australia (3412.0); Overseas Arrivals and Departures, Australia (3401.0).

132

Year Book Australia 2003

Country of birth Since the end of World War II Australia has experienced large yearly increases in population due to a combination of high fertility and high levels of migration. In 1947 the proportion of the population born overseas was 10%, but by June 2000 this proportion had increased to 24% (table 5.33). As well as this increase, there has been a diversification of the population. In 1947, 81% of the overseas-born population came from the main English speaking countries (the United Kingdom and Ireland, New Zealand, South Africa, Canada and the United States of America), mainly from the United Kingdom and Ireland. By June 2000, only 39% of the overseas-born population had been born in the main English speaking countries. For the last few decades, the Italian, Greek and Dutch-born populations in Australia have been declining. The major migration flows from these countries occurred immediately after World War II, and there has been relatively little 5.33

United Kingdom and Ireland New Zealand Italy Former Yugoslav Republics Vietnam China Greece Philippines Germany India Malaysia Netherlands South Africa Lebanon Poland Indonesia United States of America Hong Kong (SAR of China)(e) Total overseas-born Australia Total population(f)

migration more recently. As these populations have moved into the older age groups, they have experienced high numbers of deaths. Furthermore, small numbers of people are returning to their countries of birth in their retirement. Population estimates for 2000 identified 24% of the population as overseas-born. The 1996 Census showed that 27% of persons born in Australia had at least one overseas-born parent; that is, they were second generation Australians. The variety and size of second generation populations reflect past migration and intermarriage patterns. In long-established overseas-born populations, such as those from the United Kingdom and Ireland, and from northern and southern Europe, second generation Australians account for more than half of the total population. In more recently arrived groups, such as persons born in Vietnam and China, second generation Australians form a smaller part of the birthplace group. This is illustrated in table 5.34.

MAIN COUNTRIES OF BIRTH OF THE POPULATION

1901(a) ’000 679.2 25.8 5.7 n.a. n.a. 29.9 0.9 n.a. 38.4 7.6 n.a. 0.6 n.a. n.a. n.a. n.a. 7.4 0.2 852.4 2 908.3 3 773.8

1947(a) ’000 541.3 43.6 33.6 5.9 n.a. 6.4 12.3 0.1 14.6 n.a. 1.0 2.2 5.9 n.a. 6.6 n.a. 6.2 0.8 743.2 6 835.2 7 579.4

1954(a) 1961(a) 1971(a) 1981(b) 1991(b) 2000(b) ’000 ’000 ’000 ’000 ’000 ’000 664.2 755.4 1 081.3 1 175.7 1 244.3 (c)1 164.1 43.4 47.0 74.1 175.7 286.4 374.9 119.9 228.3 288.3 285.3 272.0 241.7 22.9 49.8 128.2 156.1 168.0 210.0 n.a. n.a. (d)0.7 43.4 124.8 174.4 10.3 14.5 17.1 26.8 84.6 168.1 25.9 77.3 159.0 153.2 147.4 141.2 0.2 0.4 2.3 15.8 79.1 123.0 65.4 109.3 110.0 115.2 120.4 120.2 12.0 14.2 28.7 43.7 66.2 110.2 2.3 5.8 14.4 32.5 79.9 97.6 52.0 102.1 98.6 100.5 100.9 90.6 6.0 7.9 12.2 28.0 55.8 80.1 3.9 7.3 23.9 52.7 78.5 79.9 56.6 60.0 59.5 62.1 69.5 68.3 3.6 6.0 7.7 16.4 35.4 67.6 8.3 10.8 26.8 30.6 49.5 65.0 1.6 3.5 5.4 16.3 62.4 56.3 1 285.8 1 778.3 2 545.9 3 110.9 3 965.3 4 517.3 7 700.1 8 729.4 10 173.1 11 812.3 13 318.8 14 639.8 8 986.5 10 508.2 12 719.5 14 923.3 17 284.0 19 157.0

(a) Census counts. (b) Estimated resident population at 30 June. (c) Excludes Ireland. (d) Includes Cambodia and Laos for 1971. (e) Includes Macau. (f) Includes country of birth ‘Not stated’ and ‘At sea’ for 1901 to 1971. Source: Australian Historical Population Statistics – on AusStats (3105.0.65.001); Migration, Australia (3412.0).

Chapter 5 — Population

5.34

133

FIRST AND SECOND GENERATION AUSTRALIANS — 1996(a)

Country

United Kingdom Italy New Zealand Former Yugoslav Republics Greece Germany Netherlands Vietnam Lebanon Ireland China Philippines India Malaysia South Africa Total

Overseas-born ’000 1 072.6 238.2 291.4 175.4 126.5 110.3 87.9 151.1 70.2 51.5 111.0 92.9 77.6 76.3 55.8 3 901.9

Second generation Australians ’000 1 444.5 333.9 200.0 131.3 153.9 139.3 142.5 46.8 82.6 95.1 40.2 35.2 43.8 30.6 28.1 3 365.5

Total ’000 2 517.0 572.1 491.4 306.7 280.5 249.6 230.4 197.8 152.8 146.6 151.2 128.1 121.3 106.8 83.9 7 267.4

(a) 1996 Census counts. Source: ABS data available on request, 1996 Census of Population and Housing.

Marriages and divorces Marriages Marriage rates in Australia have fluctuated since 1901, broadly following the pattern of prevailing economic and social conditions. The crude marriage rate (the annual number of registered marriages per 1,000 population) has fallen in times of depression or recession (e.g. in the 1930s), and increased in other times such as the immediate post-war years of the early 1920s and late 1940s. Marriage rates have also increased during times of war. The 2001 crude marriage rate of 5.3 marriages per 1,000 population was the lowest rate on record. The previous lowest rate was 5.8 per 1,000, recorded in 1997. The highest crude marriage rate ever recorded was 12.0 per 1,000 in 1942. The crude marriage rate has been declining since 1970. This decline in the marriage rate can be mainly attributed to changes in attitudes to marriage and living arrangements that have occurred since then. The fluctuations in the crude marriage rate between 1901 and 2001 are shown in graph 5.35.

Marriage rates for the unmarried population (per 1,000 not currently married men or women aged 15 years and over) have also fallen over time. This long-term downward trend has been evident since these rates first became available in 1976. The marriage rate for men was 63 per 1,000 in 1976 while the rate for women was 61 per 1,000. In 2000 these rates fell to 34 and 32, respectively. Recent trends show that Australians are marrying later. The median ages of brides and bridegrooms at first marriage have increased from 21.1 and 23.4 years respectively in 1971 to 26.9 and 28.7 years in 2001 (graph 5.36). Part of this increase can be attributed to the increasing incidence of de facto marriages. Another factor is that young people are staying in education longer. In 2001, 66% of marriages had a groom older than the bride, and 23% of brides were older than grooms. However, there was a strong tendency for couples to be about the same age, with 45% of couples being within two years of each other, and only 10% being 10 or more years apart in age (graph 5.37).

134

Year Book Australia 2003

5.35 CRUDE MARRIAGE RATE rate(a) 13 11 9 7 5 1901

1921

1941

1961

1981

2001

(a) Rate per 1,000 population. Source: Australian Social Trends (4102.0); Marriages and Divorces, Australia (3310.0).

5.36 MEDIAN AGE AT FIRST MARRIAGE age 29

Males Females

26

23

20 1971

1981

1991

2001

Source: Marriages and Divorces, Australia (3310.0).

5.37 BRIDE AND GROOM AGE DIFFERENCE AT MARRIAGE, Proportion of all marriages — 2001 % 15

Groom older than bride Bride older than groom

10

5

0 0

4

8 12 Age difference (years)

Source: Marriages and Divorces, Australia (3310.0).

16

20

Chapter 5 — Population

Table 5.38 brings together summary measures of marriages for census years between 1901 and 1991, and individual years between 1992 and 2001.

De facto relationships Between 1992 and 1997, the number of people in de facto relationships rose by 6.4% from 710,800 to 756,500 people. In 1997, de facto partners 5.38

135

represented 9.1% of all persons living in couple relationships (up from 8.5% in 1992) and 5.3% of persons aged 15 years and over (the same as in 1992). The proportion in de facto relationships peaked among people aged 25–29. It was also high in the adjacent age groups and then fell away to lower levels with increasing age (graph 5.39). Of all de facto partners in 1997, 56% were aged 20–34.

SELECTED SUMMARY MEASURES OF MARRIAGES Median age at marriage

Year ended 31 December

1901 1921 1933 1947 1954 1961 1966 1971 1976 1981 1986 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Registered marriages no. 27 753 46 869 46 595 76 457 71 229 76 686 96 061 117 637 109 973 113 905 114 913 113 869 114 752 113 255 111 174 109 386 106 103 106 735 110 598 114 316 113 429 103 130

Crude marriage rate(a) 7.3 8.6 7.0 10.1 7.9 7.3 8.3 9.2 7.9 7.6 7.2 6.6 6.6 6.4 6.2 6.1 5.8 5.8 5.9 6.0 5.9 5.3

Bridegroom years n.a. 27.7 27.0 26.0 25.6 24.9 24.2 23.8 24.9 25.9 27.3 28.4 28.7 28.8 29.0 29.2 29.6 29.7 29.8 30.1 30.3 30.6

(a) Per 1,000 population. Source: Australian Demographic Statistics (3101.0); Marriages and Divorces, Australia (3310.0).

5.39 DE FACTO PARTNERS IN THE POPULATION % 20

1992 1997

15 10 5 0 15–19

25–29

35–39 45–49 Age group (years)

55–59

65 and over

Source: ABS data available on request, 1992 Survey of Families in Australia; 1997 Family Characteristics Survey.

Bride years n.a. 24.5 23.7 23.0 22.6 21.8 21.5 21.4 22.2 23.3 24.9 26.0 26.3 26.4 26.6 26.8 27.2 27.5 27.7 27.9 28.3 28.6

136

Year Book Australia 2003

Divorces

0.8 per 1,000 between 1961 and 1970. However, 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 (Cwlth) 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 until 1979 as the backlog of applications was cleared. Since then the crude divorce rate has fluctuated between 2.4 and 2.9 divorces per 1,000 population (graph 5.41). The crude divorce rate in 2001 was 2.8 per 1,000 population. The pattern of divorces per 1,000 married couples is very similar; in 2000 there were 12.0 divorces per 1,000 married men or women.

For most of the 20th century there was a slow but steady rise in the divorce rate, increasing from annual averages of 0.1 divorces per 1,000 population between 1901 and 1910 to

Table 5.42 brings together summary measures of divorces granted in census years between 1901 and 1991, and individual years between 1992 and 2001.

De facto partnering has arisen as an alternative living arrangement prior to, or instead of marriage, and following separation, divorce or widowhood. Some couple relationships, such as that between a boyfriend and girlfriend who live together but do not consider their relationship to be marriage-like, are classified as de facto. Of all people in de facto relationships in 1997, 69% had never been in a registered marriage, and 29% were either separated or divorced. The likelihood of being never married was higher among those aged under 35, counterbalanced by higher proportions of separated and divorced de facto partners aged 35 and over (graph 5.40). In 1997, 46% of de facto couples had children, compared with 39% in 1992.

5.40 PERSONS IN DE FACTO RELATIONSHIPS — 1997 % 100

Never married Separated or divorced

75 50 25 0 15–19

25–29

35–39 45–49 Age group (years)

Source: Family Characteristics, Australia (4442.0).

55–59

65 and over

Chapter 5 — Population

137

5.41 CRUDE DIVORCE RATE rate(a) 5 4 3 2 1 0 1901

1921

1941

1961

1981

2001

(a) Rate per 1,000 population. Source: Marriages and Divorces, Australia (3310.0).

5.42

SELECTED SUMMARY MEASURES OF DIVORCES Median age at date decree made absolute

Year ended 31 December

1901 1921 1933 1947 1954 1961 1966 1971 1976 1981 1986 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Divorces granted no. 398 1 490 1 954 8 705 6 457 6 712 9 859 12 947 63 230 41 412 39 417 45 652 45 729 48 363 48 312 49 712 52 466 51 288 51 370 52 566 49 906 55 330

Crude divorce rate(a) 0.1 0.3 0.3 1.1 0.7 0.6 0.8 1.0 4.5 2.8 2.5 2.6 2.6 2.7 2.7 2.8 2.9 2.8 2.7 2.8 2.6 2.8

Husband years n.a. n.a. n.a. n.a. 37.8 38.7 40.4 37.9 36.2 35.5 37.5 38.4 38.7 39.3 39.7 40.0 40.2 40.3 40.5 40.9 41.4 41.8

Wife years n.a. n.a. n.a. n.a. 34.5 35.9 36.9 34.4 33.1 32.8 34.7 35.5 35.9 36.4 36.8 37.1 37.4 37.6 37.8 38.2 38.6 39.1

(a) Per 1,000 population. Source: Australian Demographic Statistics (3101.0); Marriages and Divorces, Australia (3310.0).

Households and families At June 2001 there were an estimated 7.4 million households in Australia, which were home to 19.0 million Australians, or 97% of the resident population. Over the past 90 years the number of households has increased by an average 2.4% per year, compared to 1.6% average increase per year in the population over the same period. Reflecting the disproportionate growth in

households is the fall in average size of households — from 4.5 in 1911 to 2.6 in 2001 (graph 5.43). Much of the decline in the number of persons per household this century can be attributed to reductions in completed family size, and the associated increase in one- and two-person households over the period. The number of one-person households has grown largely from the ageing of the population, while a combination of ageing, increased childlessness

138

Year Book Australia 2003

among couples and an increase in the number of one-parent families has contributed to the increase in the number of two-person households. In 1976, 60% of families were made up of couples with children. By 2001 this had fallen to 41% (see graph 5.44). Part of this change can be attributed

to the increase in one-parent families with dependent children, but most of the change is due to the increase in the proportion of couple-only families. People are having children later in life, and are living longer. They are spending more time living in couple-only families, both before they have children and after their children have left home.

5.43 AVERAGE HOUSEHOLD SIZE, Persons per household no. 5.0 4.5 4.0 3.5 3.0 2.5 1911

1921

1931

1941

1951

1961

1971

1981

1991

2001

Source: Australian Demographic Statistics (3101.0); Census of Population and Housing, 30 June 1981: Summary Characteristics of Persons and Dwellings, Australia (2443.0); Household Estimates, Australia (3229.0); Year Book Australia 1988 (1301.0).

5.44 SELECTED LIVING ARRANGEMENTS % 70

Lone-person households One-parent familes (of all children under 15) Couple-only (of all couple families) Couples with children (of all families with children)

60 50 40 30 20 10 0

1991

1993

1995

Source: Australian Social Trends, 2002 (4102.0).

1997

1999

2001

Chapter 5 — Population

Household and family projections Household and family projections are estimates of future numbers of households and families, based on assumptions about changing living arrangements of the population. The ABS has published three series of projections for the years 1996–2021 (it will publish new projections based on the results of the 2001 Census late in 2003). These series are based on varying assumptions about trends in living arrangements. In Series A the pattern of living arrangements of individuals is the same as in 1996. In Series B and C, recent trends in the patterns of living arrangements are incorporated into the projections. In Series B the average annual rate of change in living arrangements experienced between 1986 and

1996 is applied in reducing levels (in full between 1996 and 2001, in fractions to 2011, and then held constant to 2021). In Series C the rate of change experienced between 1986 and 1996 is applied in full throughout the projection period.

Household types The projections show continuing growth in the number of households in Australia in the period 1996–2021. The number of households is projected to increase from 6.9 million in 1996 to between 9.4 and 10.0 million in 2021 (graph 5.45). This represents a growth in the number of households of between 38% and 46% between 1996 and 2021, compared to a projected 24% increase in the population over the same period.

5.45 PROJECTED NUMBER OF HOUSEHOLDS million 11

Series A Series B Series C

10 9

8

7 1996

2001

2006

139

2011

2016

Source: Household and Family Projections, Australia, 1996 to 2021 (3236.0).

2021

140

Year Book Australia 2003

Average household size in Australia is projected to decline from 2.6 persons in 1996 to between 2.2 and 2.3 persons per household in 2021. The projected decrease in average household size reflects the projected rise in the proportion of lone-person households and couples without children. Lone-person households are projected to grow by between 1.7% and 3.1% per year between 1996 and 2021 to comprise between one-quarter and one-third of all household types by 2021. The ageing of the population, increases in divorce and separation, and delaying marriage, are all contributing factors to the growth in lone-person households (Hugo 1999). While lone-person households are projected to grow the fastest of all household types, family households are projected to remain the predominant household type. Family households are projected to grow by between 0.9% and 1.2% per year over the 1996–2021 period, to comprise between 62% and 71% of all household types in 2021, compared to 73% of all households in 1996 (graph 5.46).

Family types The number of couple families with children is projected to either grow slowly or decline slowly, depending on the series employed. This trend is related both to the rapid increase in couple

families without children, and the increase in one-parent families, and is driven by ageing, the decline in fertility and increased marital break-up. In Series A, couple families with children are projected to grow from 2.5 million in 1996 to around 3.1 million in 2021, while in Series C (full continuation of recent trends), couple families with children are projected to decline to 2.0 million in 2021 (table 5.47). Of all family types, couple families without children are projected to increase most rapidly over the period 1996–2021. Couple families without children are projected to grow from 1.7 million in 1996 to between 2.7 and 2.9 million in 2021, with an average annual growth of between 1.7% and 2.1%. In Series B and C, couple families without children are projected to surpass couple families with children as the most common family type by the year 2016. One-parent families are projected to increase from 742,000 families in 1996 to between 966,000 and 1.2 million in 2021, representing average annual growth of between 1.1% and 2.0% over the period. Female one-parent families, which made up 85% of all one-parent families in 1996, are projected to maintain or slightly increase this proportion in 2021.

5.46 PROJECTED NUMBER OF HOUSEHOLDS, By household type: Series B million Family households 8 Group households Lone-person households

6

4

2

0 1996

2001

2006

2011

2016

Source: Household and Family Projections, Australia, 1996 to 2021 (3236.0).

2021

Chapter 5 — Population

5.47

PROJECTED NUMBER OF FAMILIES, By family type

Series A Couple families with children Couple families without children One-parent families One-parent families, male parent One-parent families, female parent Other families Total Series B Couple families with children Couple families without children One-parent families One-parent families, male parent One-parent families, female parent Other families Total Series C Couple families with children Couple families without children One-parent families One-parent families, male parent One-parent families, female parent Other families Total

141

1996 ’000

2001 ’000

2006 ’000

2011 ’000

2016 ’000

2021 ’000

2 483.8 1 735.1

2 660.7 1 894.2

2 798.2 2 078.2

2 902.1 2 281.1

2 985.7 2 482.5

3 054.7 2 658.8

742.3 114.9 627.4

797.1 126.3 670.8

845.7 136.4 709.3

889.6 145.2 744.4

929.6 152.8 776.8

966.2 159.6 806.6

94.4

98.4

103.7

109.3

114.3

118.2

5 055.6

5 450.4

5 825.8

6 182.1

6 512.1

6 798.0

2 483.8 1 735.1

2 448.1 1 952.5

2 471.4 2 168.7

2 513.5 2 389.9

2 589.8 2 597.5

2 654.0 2 782.2

742.3 114.9 627.4

852.5 129.6 722.9

929.2 141.3 787.9

987.7 150.9 836.8

1 028.9 158.7 870.2

1 066.4 165.6 900.9

94.4

96.7

101.3

105.6

108.3

109.1

5 055.6

5 349.7

5 670.6

5 996.7

6 324.4

6 611.8

2 483.8 1 735.1

2 448.1 1 952.5

2 366.3 2 195.8

2 252.1 2 455.0

2 122.6 2 712.3

1 988.1 2 946.5

742.3 114.9 627.4

852.5 129.6 722.9

956.2 142.6 813.6

1 054.1 153.6 900.4

1 146.3 163.0 983.3

1 231.4 170.4 1 061.0

94.4

96.7

102.5

110.1

117.4

123.1

5 055.6

5 349.7

5 620.8

5 871.2

6 098.6

6 289.2

Source: Household and Family Projections, Australia, 1996 to 2021 (3236.0).

Citizenship Citizenship is a relatively recent concept for Australia as a nation, having its origins in the Australian Citizenship Act 1948 (Cwlth). Prior to this, Australians were British subjects. Since the inception of the Australian Citizenship Act on Australia Day in 1949, more than three million people born overseas have acquired Australian citizenship. For these people, citizenship is voluntary, expressing a commitment to the laws and principles of Australia, and respect for its land and its people. It confers the opportunity to participate more fully in Australian society, giving the right to vote, to apply for public office, and to hold an Australian passport and therefore leave and re-enter Australia freely. Australian citizenship law and policy have been amended many times since their inception to reflect a more inclusive approach to the acquisition of Australian citizenship, with recent changes in policy towards creating more opportunities for young adults to acquire

citizenship (Department of Immigration and Multicultural and Indigenous Affairs 2001a). All migrants who meet set criteria are encouraged to become Australian citizens. Children acquire Australian citizenship at birth if at least one parent is an Australian citizen or a permanent resident of Australia. The 2001 Census indicated that almost three-quarters (74%) of people born overseas who had been resident in Australia for two years or more were Australian citizens. There were high proportions of Australian citizens among people born in Greece (97%). However, this citizenship rate is influenced by the age and period of residence of people from Greece. For Australians born in Greece, most (83%) arrived in Australia in 1970 or earlier, and three-quarters are aged 50 years and over. The longer overseas-born people reside in Australia, and consequently the older they get, the more likely it is that they have acquired Australian citizenship.

142

Year Book Australia 2003

Standardising gives the rates that would be expected if a given overseas-born population had the same profile of age and period of residence in Australia as the total overseas-born population (see table 5.48). Based on standardised rates, people born in the Philippines, Vietnam and China were the most likely to become Australian citizens. Unstable or changing political conditions in these countries may result in a greater desire for Australian citizenship than for people born in other countries. In contrast, people born in the United Kingdom and New Zealand were less likely to be Australian citizens. This may be because ‘the shared language, and strongly similar legal, political, and industrial arrangements of Australia and the other Anglo-American countries lead these immigrants to feel less need to make a choice of national identity’ (Evans 1988).

Even though the proportion of Australian residents born in the United Kingdom who take up Australian citizenship is comparatively small, people born in the United Kingdom comprise the largest group of overseas-born in Australia. In keeping with this, British citizens were the largest group to be granted Australian citizenship in 2000–01 (see table 5.49). Former British, Irish and New Zealand citizens have been among the largest sources of Australian citizens since the early 1970s, when legislative changes and visa requirements prompted many Commonwealth citizens to apply for Australian citizenship. Other residents who were granted Australian citizenship in 2000–01 were likely to have come from Asian countries, such as Chinese, Vietnamese, Indian and Filipino nationals (together comprising 19% of citizenship grants), citizens of South Africa (4%) and Bosnia–Herzegovina (4%). These figures reflect immigration from these countries in recent years, with China, South Africa, India and the Philippines all in the top 10 birthplaces for overseas-born people who have arrived in Australia since 1996.

5.48 CITIZENSHIP RATES, Overseas-born people resident in Australia for two years or more — 2001

Selected birthplace

Philippines Vietnam China (excludes SARs and Taiwan Province) Greece Italy United Kingdom Germany Netherlands New Zealand Total overseas born(c)

Persons ’000 90.4 141.8 114.2 108.3 204.6 951.5 100.5 78.7 281.5 3 560.3

Citizenship rate(a) % 90.4 95.3 80.3 97.1 79.5 65.6 76.5 78.3 37.7 74.4

Standardised citizenship rate(b) % 92.1 91.5 90.1 89.2 65.2 64.3 59.7 55.5 45.3 74.4

(a) People for whom citizenship was not stated were excluded prior to the calculation of percentages. (b) The rates of citizenship that would be expected if a given overseas-born population had the same age and period of residence profile as the total overseas-born population. (c) Excludes people whose birthplace was not stated, inadequately described, not elsewhere classified or at sea. Source: ABS data available on request, 2001 Census of Population and Housing.

Chapter 5 — Population

5.49 FORMER NATIONALITY, People granted Australian citizenship — 2000–01 Country of former nationality or citizenship

United Kingdom New Zealand China(a) South Africa Bosnia–Herzegovina India Philippines Vietnam Iraq Sri Lanka Fiji Yugoslavia, Federal Republic of Malaysia United States of America(b) Korea Taiwan Iran Afghanistan Croatia Ireland Somalia Lebanon Indonesia Yugoslavia (former) Canada Turkey Pakistan Italy Malta Thailand Cambodia Russian Federation Sudan Singapore Chile Germany Bangladesh Portugal Former Yugoslav Republic of Macedonia Ukraine Romania Egypt Other nationalities Stateless Not stated/other Total

no. 12 474 11 007 6 890 2 992 2 661 2 335 2 211 1 953 1 862 1 672 1 398 1 175 1 057 1 004 966 894 827 798 767 682 667 665 659 626 615 591 556 534 478 474 466 415 414 387 323 321 319 318

% 17.3 15.3 9.6 4.2 3.7 3.2 3.1 2.7 2.6 2.3 1.9 1.6 1.5 1.4 1.3 1.2 1.1 1.1 1.1 0.9 0.9 0.9 0.9 0.9 0.9 0.8 0.8 0.7 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.4 0.4 0.4

317 284 259 259 5 332 861 305

0.4 0.4 0.4 0.4 7.4 1.2 0.4

72 070 100.0

(a) People’s Republic of China including citizens of Hong Kong and Macau SARs. (b) Includes American Samoa. Source: Department of Immigration and Multicultural and Indigenous Affairs, ‘Annual Report, 2000–2001’.

143

Religion In 1983, the High Court of Australia defined religion as ‘a complex of beliefs and practices which point to a set of values and an understanding of the meaning of existence’. At the time of European settlement, the Aboriginal inhabitants followed their own religions which were animistic in nature, involving beliefs in spirits behind the forces of nature, and the influence of ancestral spirit beings. During the 1800s, European settlers brought their traditional churches to Australia. These included the Church of England (now the Anglican Church), and the Methodist, Catholic, Presbyterian, Congregationalist and Baptist churches. Section 116 of the 1900 Act to constitute the Commonwealth of Australia (Australian Constitution) provides that: The Commonwealth of Australia shall not make any law establishing any religion, or for imposing any religious observance, or for prohibiting the free exercise of any religion, and no religious test shall be required as a qualification for any office or public trust under the Commonwealth.

With the exception of a small but significant Lutheran population of Germanic descent, Australian society in 1901 was predominantly Anglo-Celtic, with 40% of the population being Church of England, 23% Catholic, 34% other Christian and about 1% professing non-Christian religions. While the population had more than doubled by 1954, the denominational mix had changed little. Further waves of migration helped to reshape the profile of Australia’s religious affiliations over subsequent decades. The impact of migration from Europe in the aftermath of World War II led to increases in affiliates of the Orthodox Churches, the establishment of Reformed bodies, growth in the number of Catholics (largely from Italian migration), and the creation of ethnic parishes among many other denominations. More recently, immigration from South-East Asia and the Middle East has expanded Buddhist and Muslim numbers considerably, and increased the ethnic diversity of existing Christian denominations. In response to the 2001 Census question, Australians’ stated religious affiliations were: 27% Catholic, 21% Anglican, 21% other Christian denominations and 5% non-Christian religions.

144

Year Book Australia 2003

Just over one-quarter of all Australians either stated that they had no religion, or did not adequately respond to the question. A question on religious affiliation has been asked in every census taken in Australia, with the voluntary nature of this question having been specifically stated since 1933. In 1971, the instruction ‘if no religion, write none’ was introduced. This saw a seven-fold increase in the proportion of Australians stating they had no religion, from the previous census year. Since 1971, this proportion has progressively increased, reaching 16% in 2001. Table 5.50 provides a summary of the major religious affiliations at each census since 1901. Between 1996 and 2001, Catholic affiliates increased by 4% and Baptist affiliates by 5%. However, as the Australian population grew by 6% during this period, the actual proportion of the population professing affiliation to these denominations remained virtually unchanged. The most notable decreases in Christian affiliation occurred for Churches of Christ (decreasing by 18%), the Uniting Church (decreasing by 7%), and Presbyterian and Reformed (decreasing by 6%). An increase was seen for Pentecostal affiliation, which increased by 11% between 1996 and 2001 (from 174,720). A substantial increase, associated with immigration from South Eastern Europe, was also seen for the Orthodox Churches, with the number of Orthodox affiliates increasing by 7% (from 497,015).

5.50

Affiliates of religions other than Christianity have shown the largest proportional increases since the 1996 Census, although they still comprised a relatively small proportion of the population in 2001 (5%). Stated affiliation to Buddhism increased by 79%, to Hinduism by 42%, to Islam by 40% and to Judaism by 5%. These changes partly resulted from trends in immigration. Although the most common religious affiliation of immigrants is Christianity, affiliates of other religions are more highly represented among recent immigrants than in the total population. Between 1996 and 2001, there were just over half a million new arrivals to Australia. Of these, 9% were affiliated to Islam, 9% to Buddhism, 5% to Hinduism and 1% to Judaism. In 2001, 82% of Australians aged 65 years and over identified themselves as Christian. This proportion was lower among younger age groups, with 60% of 18–24 year olds having identified themselves as Christian. Indeed, while 15% of all Christian affiliates were aged 65 years and over, 8% were aged between 18 and 24 years. In contrast, the other religions have a younger age profile. While 6% of Buddhist affiliates were aged 65 years and over in 2001, 13% were aged between 18 and 24 years. The largest group of Buddhist affiliates was 35–44 year olds. Similar trends were evident for Hindu and Muslim affiliates. In the 2001 Census, people in the 18–24 years age group were the most likely to state that they had no religion (20%).

MAJOR RELIGIOUS AFFILIATIONS Christianity

Census year

1901 1911 1921 1933 1947 1954 1961 1966 1971 1976 1981 1986 1991 1996 2001

Anglican % 39.7 38.4 43.7 38.7 39.0 37.9 34.9 33.5 31.0 27.7 26.1 23.9 23.8 22.0 20.7

Catholic % 22.7 22.4 21.7 19.6 20.9 22.9 24.9 26.2 27.0 25.7 26.0 26.0 27.3 27.0 26.6

Other % 33.7 35.1 31.6 28.1 28.1 28.5 28.4 28.5 28.2 25.2 24.3 23.0 22.9 21.9 20.7

Total % 96.1 95.9 96.9 86.4 88.0 89.4 88.3 88.2 86.2 78.6 76.4 73.0 74.0 70.9 68.0

Other religions % 1.4 0.8 0.7 0.4 0.5 0.6 0.7 0.7 0.8 1.0 1.4 2.0 2.6 3.5 4.9

(a) Includes ‘object to state’. Source: ABS data available on request, Census of Population and Housing.

No religion % 0.4 0.4 0.5 0.2 0.3 0.3 0.4 0.8 6.7 8.3 10.8 12.7 12.9 16.6 15.5

Not stated/ inadequately described % (a)2.0 (a)2.9 (a)1.9 12.9 11.1 9.7 10.7 10.3 6.2 11.4 11.4 12.4 10.5 9.0 11.7

Total ’000 3 773.8 4 455.0 5 435.7 6 629.8 7 579.4 8 986.5 10 508.2 11 599.5 12 755.6 13 548.4 14 576.3 15 602.2 16 850.3 17 752.8 18 769.2

Chapter 5 — Population

Table 5.51 shows the distribution of religious groupings by the number and percentage of affiliates at the 1996 and 2001 censuses, and the change which occurred during that five-year period.

Languages Even though English is Australia’s national language, due to cultural diversity in the population over 200 languages are spoken in the community. Languages other than English are not only spoken by migrants who have settled in Australia from all over the world; more than 60 different languages are spoken by Aboriginal and Torres Strait Islander Australians. The 2001 Census indicated that 2.8 million people (16% of the population) spoke a language other than English at home (see table 5.52), which represents an increase of 213,100 people or 8% since 1996. Over 50,000 people spoke an Australian Indigenous language (including Australian Creoles), which equates to 12% of all Indigenous Australians and 0.3% of the total Australian population. Two-thirds of Indigenous people in the Northern Territory and 17% of Indigenous people in South Australia spoke an Indigenous 5.51

language at home. The three Indigenous languages with the most speakers were Kriol (an Australian Creole) and two Central Australian languages: Pitjantjatjara and Warlpiri. In 2001 the five most commonly spoken languages other than English were Italian, Greek, Cantonese, Arabic (including Lebanese) and Vietnamese, with speakers of these languages together comprising 7% of the total population. The popularity of these languages is associated with immigration over the last 50 years from countries where these languages are spoken. While the number of settler arrivals from countries such as Italy and Greece was high at the end of World War II, large numbers of settler arrivals from Lebanon and Vietnam arrived during the 1970s and 1980s, and from China in the 1990s (Department of Immigration and Multicultural and Indigenous Affairs 2001c). Greek, Arabic and Italian speakers had the largest proportions of Australian-born speakers, reflecting the fact that these languages were mainly brought to Australia 20 or more years ago and have been maintained among their children. Languages spoken by migrants arriving in Australia more recently, such as Mandarin and Filipino, had a smaller proportion of Australian-born speakers.

RELIGIOUS AFFILIATION 1996

Christianity Anglican Baptist Catholic Churches of Christ Jehovah’s Witness Lutheran Orthodox Pentecostal Presbyterian and Reformed Salvation Army Uniting Church Other Christian Buddhism Hinduism Islam Judaism Other religions No religion Not stated/Inadequately described Total

145

2001

’000

%

’000

%

Change %

3 903.3 295.2 4 799.0 75.0 83.4 250.0 497.0 174.7 675.5 74.1 1 334.9 420.6 199.8 67.3 200.9 79.8 68.6 2 948.9 1 604.7 17 752.8

22.0 1.7 27.0 0.4 0.5 1.4 2.8 1.0 3.8 0.4 7.5 2.4 1.1 0.4 1.1 0.4 0.4 16.6 9.0 100.0

3 881.2 309.2 5 001.6 61.3 81.1 250.4 529.4 194.6 637.5 71.4 1 248.7 497.9 357.8 95.5 281.6 84.0 92.4 2 906.0 2 187.7 18 769.2

20.7 1.6 26.6 0.3 0.4 1.3 2.8 1.0 3.4 0.4 6.7 2.7 1.9 0.5 1.5 0.4 0.5 15.5 11.7 100.0

–0.6 4.8 4.2 –18.2 –2.8 0.2 6.5 11.4 –5.6 –3.7 –6.5 18.4 79.1 41.9 40.2 5.2 34.6 –1.5 36.3 5.7

Source: ABS data available on request, 1996 and 2001 Censuses of Population and Housing.

146

Year Book Australia 2003

5.52 PEOPLE WHO SPOKE A LANGUAGE OTHER THAN ENGLISH AT HOME — 2001

Italian Greek Cantonese Arabic (including Lebanese) Vietnamese Mandarin Spanish Tagalog (Filipino) German Macedonian Croatian Polish Australian Indigenous languages Turkish Serbian Hindi Maltese Netherlandic All other languages(b) Total

Males ’000 175.4 131.8 108.2 108.7 86.1 67.0 45.2 30.8 35.7 36.6 35.2 27.1 25.1 25.7 24.8 24.4 20.5 18.3 352.4 1 378.9

Females ’000 178.2 132.0 117.1 100.6 88.1 72.2 48.4 48.1 40.8 35.4 34.6 31.9 25.9 25.0 24.4 23.4 20.9 21.9 368.5 1 437.6

Persons ’000 353.6 263.7 225.3 209.4 174.2 139.3 93.6 78.9 76.4 72.0 69.9 59.1 51.0 50.7 49.2 47.8 41.4 40.2 720.9 2 816.5

Persons as a proportion of population % 2.0 1.5 1.3 1.2 1.0 0.8 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.2 4.0 15.8

Proportion born in Australia(a) % 42.7 50.9 20.0 43.2 25.5 12.2 22.7 8.8 19.4 38.6 34.0 20.0 99.6 39.7 22.1 13.5 28.7 14.6 19.0 29.5

(a) Persons whose birthplace was not stated, inadequately described, not elsewhere classified or at sea were excluded prior to the calculation of percentages. (b) Excludes languages that were not stated, inadequately described, and non-verbal so described. Source: ABS data available on request, 2001 Census of Population and Housing.

English proficiency among people who spoke a language other than English at home varied with the age of the speaker and according to whether he or she was born in Australia (see table 5.53). Around 88% of all people aged under 25 years who spoke a language other than English at home spoke English well or very well, compared with 60% of those aged 65 years and over.

5.53

People born in Australia who spoke a language other than English at home were generally more likely to speak English well or very well than the total population speaking other than English at home. Overall, 91% of those born in Australia spoke English well or very well, compared with 82% of the total population speaking other than English at home.

PROFICIENCY IN ENGLISH, People who spoke a language other than English at home — 2001 Age group (years)

Total population speaking other than English at home Speaks English well or very well Does not speak English well Does not speak English at all Total Total(a) Australian-born population speaking other than English at home Speaks English well or very well Does not speak English well Does not speak English at all Total Total(b)

Units

0–24

25–44

45–64

65 and over

Total

% % % %

88.1 8.4 3.5 100.0

87.2 11.5 1.3 100.0

77.1 20.1 2.8 100.0

59.9 29.5 10.7 100.0

81.6 14.9 3.5 100.0

no. 860 401 930 520 671 549

% % % %

86.7 8.6 4.6 100.0

354 019 2 816 489

97.4 2.3 0.3 100.0

92.9 6.1 1.0 100.0

81.3 14.2 4.5 100.0

90.5 6.5 3.0 100.0

no. 493 439 259 214

46 531

9 807

808 991

(a) Includes 45,000 people who did not state how well they spoke English. (b) Includes 20,000 people who did not state how well they spoke English. Source: ABS data available on request, 2001 Census of Population and Housing.

Chapter 5 — Population

147

Bibliography ABS publications Australian Demographic Statistics (3101.0) Australian Demographic Trends (3102.0) Australian Demography (Commonwealth Bureau of Census and Statistics, Bulletins produced 1900–69) Australian Historical Population Statistics – on AusStats (3105.0.65.001) Australian Social Trends (4102.0) Births, Australia (3301.0) Census of Population and Housing, 30 June 1981: Summary Characteristics of Persons and Dwellings, Australia (2443.0) Census of the Commonwealth of Australia, 3rd April 1911, Volume II (Commonwealth Bureau of Census and Statistics) Deaths, Australia (3302.0) Demographic Estimates and Projections: Concepts, Sources and Methods, available in the Statistical Concepts Library on the ABS web site at Estimated Resident Population by Country of Birth, Age and Sex, Australia (3221.0) Experimental Estimates of Indigenous Australians, Electronic Delivery (3238.0.55.001) Experimental Estimates of the Aboriginal and Torres Strait Islander Population, 30 June 1991 – 30 June 1996 (3230.0) Experimental Projections of the Aboriginal and Torres Strait Islander Population, 30 June 1996 – 30 June 2006 (3231.0) Family Characteristics, Australia (4442.0) Household and Family Projections, Australia, 1996 to 2021 (3236.0) Household Estimates, Australia (3229.0) Labour Force Status and Other Characteristics of Families, Australia (6224.0) Marriages and Divorces, Australia (3310.0) Migration, Australia (3412.0) Occasional Paper: Population Issues, Indigenous Australians (4708.0) Official Year Book of the Commonwealth of Australia, 1901–1910 (Commonwealth Bureau of Census and Statistics) Overseas Arrivals and Departures, Australia (3401.0) Population by Age and Sex, Australian States and Territories (3201.0) Population Distribution, Aboriginal and Torres Strait Islander Australians (4705.0) Population Projections, Australia, 1999 to 2101 (3222.0) Regional Population Growth, Australia and New Zealand (3218.0) Year Book Australia 1994, 1998 and 2001 (1301.0)

Other publications and references Australian Citizenship Council 2000, Australian Citizenship for a New Century, available on the web site of the Commonwealth Department of Immigration and Multicultural and Indigenous Affairs (the Citizenship Council page at ) Australian Institute of Aboriginal and Torres Strait Islander Studies 1994, Encyclopedia of Aboriginal Australia, Aboriginal Studies Press, Canberra. Also available on CD-ROM

148

Year Book Australia 2003

Bureau of Immigration, Multicultural and Population Research 1978, Australian Immigration — Consolidated Statistics, No. 10, AGPS, Canberra Commonwealth of Australia Constitution Act, available on the web site of the Parliament of Australia (the Senate page at ) Department of Immigration and Multicultural Affairs (DIMA) (now the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA)) (all DIMA publications were published in Canberra): Annual Report (various years) 1999, Australian Citizenship, 1996 Census: Statistical Report No. 26 Australian Immigration — Consolidated Statistics (various numbers, various years) Immigration: Federation to Century’s End, 1901–2000 1995, 1996, 1997, 1998, 1999, Immigration Update 2000, Population Flows: Immigration Aspects Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) (formerly the Department of Immigration and Multicultural Affairs) (all DIMIA publications are published in Canberra): 1999–2001, Australian Immigration — Consolidated Statistics 2000–2001, Immigration Update 2001a, Australian Citizenship: A Common Bond: Government Response to the Report of the Australian Citizenship Council 2001b, Fact Sheet 86, Overstayers and People in Breach of Visa Conditions 2001c, Population Flows: Immigration Aspects 2002, Fact Sheet 74, Unauthorised Arrivals by Air and Sea 2002, Fact Sheet 90, Australian Citizenship Evans M 1988, ‘Choosing to be a citizen: the time-path of citizenship’, in Australia International Migration Review, vol. 22, no. 2 Hugo G 1986, Australia’s Changing Population, Oxford University Press, Melbourne Hugo G 1999, Demographic Trends Influencing Housing Needs and Demands In Australia, Paper presented to AHURI Workshop on Innovation in Housing, Melbourne Hugo G 2001, ‘A Century of Population Change in Australia’, in Year Book Australia 2001 (1301.0) Smith LR 1980, The Aboriginal Population in Australia, Australian National University Press for the Academy of Social Sciences in Australia, Canberra Statistics New Zealand, National Population Estimates, March 2001 quarter United Nations 1999, 1997 Demographic Yearbook, United Nations, New York United Nations 1999, World Population Prospects, 1998 revision United Nations Development Programme (UNDP) 2000, Human Development Report 2000, UNDP, New York, Oxford, Oxford University Press, also available for downloading from the UNDP web site (see below) at United Nations Population Division, World Population Prospects: The 2000 Revision US Census Bureau, International Data Base, at

Chapter 5 — Population

149

Web sites Australian Institute of Aboriginal and Torres Strait Islander Studies, at Department of Immigration and Multicultural and Indigenous Affairs, at . The Australian Immigration Statistics page is at Statistics New Zealand/Te Tari Tatau, at United Nations Development Programme, at US Census Bureau, at

6

Labour Introduction

153

Labour market statistics

153

The labour force

153

Characteristics of the labour force

153

Article — Labour force experience

159

Persons employed

161

Full-time and part-time employment

161

Employment by industry and occupation

162

Persons unemployed

164

Job vacancies

167

Characteristics of employment

168

Working arrangements

169

Hours worked

171

Article — Work-related injuries

174

Earnings and benefits

176

Level of earnings

176

Changes in the price of labour

179

Non-wage benefits

181

Industrial relations

185

Industrial disputes

185

Trade union membership

187

Bibliography

190

Chapter 6 — Labour

Introduction The information contained in this chapter presents a picture of the labour market in Australia. In June 2002, 63.8% of the adult population in Australia were directly involved in the labour market (i.e. working or looking for work). 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, job vacancies, earnings, industrial disputes); highlights the main features of the Australian labour market in 2001–02; examines developments in the Australian labour market over the medium- and long-term; and presents more detailed analysis of a number of issues related to and/or impacting on the Australian labour market.

Labour market statistics The labour market can be viewed from a number of perspectives. Most labour market statistics focus on some aspect of labour demand or labour supply. In Australia, business surveys are the primary source of data on labour demand. The types of data collected through business surveys include labour costs, earnings, jobs and job vacancies. Population censuses and household surveys constitute the primary sources of information about the size and characteristics of labour supply. Information obtained through these types of collections includes data on current and previous labour force experience, as well as demographic data, such as age, sex, family status and country of birth. Diagram 6.1 illustrates the range of ABS labour statistics available from household and business surveys, and broadly how they relate to the labour market. For the purpose of compiling Australian labour market statistics, the population is restricted to persons in the civilian population aged 15 years and over. This practice is based on international guidelines for the collection of labour statistics. The concepts and definitions underlying Australian labour statistics are based on the conventions, recommendations and guidelines developed and maintained by the International

153

Labour Organisation and the United Nations Statistical Office. Australian labour statistics comply in almost every respect with these international standards.

The labour force Fundamental to the measurement of employment and unemployment is the concept of the labour force. The labour force represents the key official measure of the total supply of labour available to the labour market during a given period. It is equivalent to the supply of labour available for the production of economic goods and services. Therefore, persons in the labour force are also referred to as the ‘currently economically active population’. The labour force is divided into two broad groups — the employed and the unemployed. A person not classified as employed or unemployed is classified as not in the labour force (not economically active). The framework for classifying persons into these three basic categories (employed, unemployed, not in the labour force) is illustrated in diagram 6.2. Further details about the Australian labour force framework, and the specific criteria for classifying persons to these three basic categories, are available in Labour Statistics: Concepts, Sources and Methods, 2001 (6102.0).

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 adult population. Between June 2001 and June 2002 the labour force grew by 1.5%. During the same period the civilian population aged 15 and over grew 1.4%. The difference between these two rates is explained by changes in the participation rate over the same 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 persons in the labour force by the total number of persons in the civilian population aged 15 years and over. Analysis of participation rates, particularly in terms of age, sex and family status, provides the basis for monitoring changes in the size and composition of the labour supply.

154

Year Book Australia 2003

6.1 THE AUSTRALIAN LABOUR STATISTICS FRAMEWORK PRINCIPAL DATA SOURCE: Business surveys

PRINCIPAL DATA SOURCE: Household surveys

PERSONS Information about civilian population aged 15 years and over, e.g. age, sex, birthplace

EMPLOYING BUSINESSES Information about employing business, e.g. number of employees, industry

EMPLOYED

UNEMPLOYED

Information about employed persons, e.g. occupation, industry, hours worked

Information about unemployed persons, e.g. duration of unemployment, work preferences

NOT IN THE LABOUR FORCE Information about persons not in the labour force, e.g. reasons not in the labour force, marginal attachment

Surplus labour supply JOB VACANCIES

JOBS

EMPLOYEES

Information about jobs, e.g. earnings, hours paid, fulltime/part-time

Information about employees, e.g. earnings, employment benefits

OWN ACCOUNT WORKERS

CONTRIBUTING FAMILY WORKERS

Unmet labour demand Labour demand

EMPLOYERS

Actual labour supply (labour force)

Potential labour supply

Source: Labour Statistics: Concepts, Sources and Methods, 2001 (6102.0).

During the last two decades the overall labour force participation rate has increased slowly. It rose from a level of 61% in June 1982 to 64% in June 2002. The main force behind the long-term rise in the labour force participation rate has been an increase in the female participation rate. The female participation rate increased from 45% in June 1982 to 55% in June 2002. In contrast, the male participation rate fell from 77% to 72% over the same period. Graph 6.3 shows male and female participation rates between June 1982 and June 2002. The graph illustrates the convergence of male and female participation rates over time.

Underlying these contrasting trends in male and female participation rates are varying movements in the age-specific participation rates. As seen in table 6.4, male and female participation rates are similar in the 15–19 year age group. The low participation rate for persons in this age group reflects the fact that many young people are in full-time education and not in the labour force. Participation rates for males and females then rise as young people move from education and training to employment. For males, participation rates peak in the 25–34 and 35–44 age groups. Female participation rates peak in the 20–24 year age group.

Chapter 6 — Labour

155

6.2 THE AUSTRALIAN LABOUR FORCE FRAMEWORK(a) Civilian population aged 15 years and over

Did not work

Worked

Actively looked for work

Available to start work

Not available to start work

Unemployed

Employed

Did not actively look for work

Not in the labour force

In the labour force

Not in the labour force

(a) The rules for determining whether a person is classified as employed, unemployed or not in the labour force are detailed in ‘Labour Statistics: Concepts, Sources and Methods, 2001’ (6102.0), paragraphs 2.12 to 2.23. Source: Labour Statistics: Concepts, Sources and Methods, 2001 (6102.0).

6.3 LABOUR FORCE PARTICIPATION RATES: Annual averages % 90

Males Females Persons

80 70 60 50 40 1982–83

1985–86

1989–90

Source: Labour Force, Australia (6203.0).

1993–94

1997–98

2001–02

156

Year Book Australia 2003

6.4

LABOUR FORCE PARTICIPATION RATES, By age: Annual averages Males

Age group (years)

15–19 20–24 25–34 35–44 45–54 55–64 65 and over All age groups

1984–85 % 60.9 90.2 94.8 94.6 90.1 61.2 9.2 75.9

2001–02 % 59.3 86.1 91.5 91.4 87.7 61.8 10.3 72.4

Females

Change % –2.6 –4.5 –3.6 –3.4 –3.3 0.1 12.0 –4.6

1984–85 % 58.8 73.1 56.2 60.1 50.7 20.3 2.2 45.7

2001–02 % 60.0 77.4 70.6 71.4 71.2 38.4 3.4 55.3

Change % 2.0 5.9 25.6 18.8 40.4 89.2 54.5 21.0

Source: ABS data available on request, Labour Force Survey.

Examining changes in age-specific participation rates for women between 1984–85 and 2001–02, more women are remaining in the labour force during the child-bearing years. In 1984–85, the female participation rate fell from 73.1% for the 20–24 year age group to 56.2% for the 25–34 year age group, a decline of 16.9 percentage points. In 2001–02, the participation rate declined from 77.7% for the 20–24 year age group to 70.6% for the 25–34 year age group, and remained virtually unchanged through to the 45–54 year age group. Examining changes in age-specific participation rates for men between 1984–85 and 2001–02, for all age groups up to and including the 45–54 year age group, participation rates declined between the two periods. Going against the trend toward declining male participation rates, the participation rates for men over 55 years of age increased between 1984–85 and 2001–02, reflecting a trend toward later retirement. Within Australia, labour market participation varies across states and territories and across capital cities and regional areas. Table 6.5 shows broad regional participation rates. In 2001–02 the highest participation rate for 15–64 year olds was in the Northern Territory and the lowest was in Tasmania.

6.5

LABOUR FORCE PARTICIPATION RATES(a) — 2001–02

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia

Capital city % 65.0 64.5 66.2 60.3 65.7 57.6 ..

Balance All of state regions % % 58.3 62.6 61.5 63.7 64.1 65.0 61.3 60.6 68.7 66.5 58.8 58.3 74.3 74.3

..

71.6

71.6

64.6

62.3

63.7

(a) Participation rate calculated using population estimates which exclude those in institutions. Source: ABS data available on request, Labour Force Survey.

Table 6.6 shows changes in labour force status (i.e. employed, unemployed, not in the labour force) between 1996–97 and 2001–02. During this period the total number of persons employed grew by 9.9% to 9.2 million. This comprised an increase of 6.0% in the level of full-time employment and an increase of 21.3% in the level of part-time employment. Part-time employed persons now account for 27.9% of all employed persons. Women dominate the part-time labour force, accounting for 71.3% of part-time workers. The unemployment rate declined gradually from 8.3% in 1996–97 to 6.4% in 2000–01. During 2001–02, the unemployment rate rose slightly to 6.6%, although this was still well below the 1996–97 rate. Over this six-year period, the unemployment rate for women has remained consistently below that for men.

Chapter 6 — Labour

6.6

157

LABOUR FORCE STATUS, Civilian population: Annual averages Employed

Fulltime ’000

Parttime ’000

1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02

4 205.1 4 243.5 4 301.6 4 397.0 4 421.7 4 419.1

1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02 1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02

Unemployed

Total ’000

Fulltime ’000

Parttime ’000

561.2 584.8 622.1 636.2 684.3 741.3

4 766.3 4 828.3 4 923.6 5 033.2 5 106.0 5 160.4

395.4 380.7 352.3 307.6 308.7 318.1

52.3 52.9 52.1 56.1 57.0 62.9

2 071.0 2 085.3 2 130.5 2 193.6 2 269.4 2 232.4

1 566.6 1 604.9 1 649.2 1 713.0 1 754.4 1 839.2

3 637.7 3 690.3 3 779.7 3 906.7 4 023.9 4 071.6

221.1 212.8 192.5 177.0 163.7 180.9

96.1 91.3 94.8 93.7 95.9 94.8

6 276.1 6 328.8 6 432.1 6 590.7 6 691.2 6 651.5

2 127.9 2 189.8 2 271.3 2 349.2 2 438.8 2 580.5

8 404.0 8 518.6 8 703.4 8 939.9 9 129.9 9 232.0

616.5 593.5 544.7 484.6 472.5 499.1

148.4 144.3 146.9 149.8 153.0 157.7

Total ’000

Labour force ’000

Civilian population ’000

Unemployment rate %

Participation rate %

5 214.0 5 262.0 5 328.0 5 397.0 5 471.8 5 541.5

7 108.4 7 214.3 7 323.7 7 441.1 7 550.2 7 656.5

8.6 8.2 7.6 6.7 6.7 6.9

73.4 72.9 72.7 72.5 72.5 72.4

3 954.9 3 994.4 4 067.0 4 177.4 4 283.5 4 347.3

7 347.0 7 450.5 7 555.3 7 665.8 7 767.2 7 867.2

8.0 7.6 7.1 6.5 6.0 6.3

53.8 53.6 53.8 54.5 55.1 55.3

9 168.9 9 256.4 9 395.0 9 574.3 9 755.4 9 888.8

14 455.3 14 664.8 14 879.0 15 106.9 15 317.4 15 523.7

8.3 8.0 7.4 6.6 6.4 6.6

63.4 63.1 63.1 63.4 63.7 63.7

MALES 447.7 433.6 404.4 363.8 365.8 381.1

FEMALES 317.2 304.1 287.3 270.7 259.7 275.7

PERSONS 764.9 737.8 691.7 634.5 625.5 656.8

Source: ABS data available on request, Labour Force Survey.

6.7

LABOUR FORCE STATUS, By country of birth: Annual average — 2001–02 Employed

Birthplace

Born in Australia Born overseas Mainly English speaking countries Other than mainly English speaking countries Total

Full-time workers Total Unemployed ’000 ’000 ’000 4 950.8 6 970.9 484.8 1 700.8 2 261.1 171.9 713.5

Labour force ’000 7 455.8 2 433.0

Not in labour force ’000 3 605.8 1 769.0

Unemployment rate % 6.5 7.1

Participation rate(a) % 67.4 57.9

944.0

55.3

999.4

560.0

5.5

64.1

987.3 1 317.1 6 651.6 9 232.0

116.6 656.8

1 433.7 9 888.9

1 209.0 5 374.8

8.1 6.6

54.3 64.8

(a) Participation rate calculated using population estimates which exclude those in institutions. Source: ABS data available on request, Labour Force Survey.

In 2001–02 there were 9.9 million people in the Australian labour force, of whom 24.6% were born overseas (table 6.7). The labour force participation rate for persons born overseas was 57.9% compared with 67.4% for persons born in Australia. Migrants from mainly English speaking countries participated in the labour force at a higher rate than those from predominantly non–English speaking countries. The unemployment rate for migrants from mainly English speaking countries (5.5%) was lower than that for persons born in Australia (6.5%). The unemployment rate for migrants from mainly English speaking countries was also much lower than the unemployment rate among migrants

from predominantly non–English speaking backgrounds. Table 6.8 provides an overview of labour force status of persons at June 2002, according to the family relationship within the household. For couple families with dependants present, 83% of husbands (or partners) were employed full-time, compared with 25% of wives (or partners) (with a further 37% of wives employed part-time). Just over half of male lone parents with dependants (56%) were employed full-time compared with 21% of female lone parents with dependants. The unemployment rate for husbands and for wives was lower than for all other groups.

158

Year Book Australia 2003

6.8

LABOUR FORCE STATUS, Relationship in household(a) — June 2002 Employed

Full-time ’000

Total ’000

Unemployed ’000

Labour force ’000

Not in labour force ’000

Civilian population aged 15 and over ’000

Unemployment rate %

Participation rate %

MALES 3 636.1 4 261.5 Family member Husband or partner 2 977.7 3 290.7 1 727.1 1 861.8 With dependants Without dependants 1 250.6 1 428.9 Lone parent 72.4 84.0 45.1 54.3 With dependants 27.3 29.7 Without dependants Dependent student *3.5 182.9 Non-dependent child(b) 513.3 616.5 Other family person 69.2 87.4 Non-family member 647.0 777.7 Lone person 391.8 465.7 Not living alone 255.2 312.0

255.8 117.9 68.8 49.1 6.6 5.0 *1.6 31.5

4 517.3 3 408.6 1 930.6 1 478.0 90.6 59.3 31.3 214.4

1 551.9 1 096.0 157.3 938.8 43.0 20.5 22.4 273.7

6 069.2 4 504.6 2 087.9 2 416.8 133.6 79.9 53.7 488.1

5.7 3.5 3.6 3.3 7.3 8.4 5.1 14.7

74.4 75.7 92.5 61.2 67.8 74.2 58.2 43.9

84.8 15.0 79.3 38.7 40.6

701.4 102.4 857.0 504.4 352.6

89.6 49.5 394.2 302.9 91.2

790.9 151.9 1 251.2 807.4 443.9

12.1 14.6 9.3 7.7 11.5

88.7 67.4 68.5 62.5 79.4

Total

335.1

5 374.4

1 946.1

7 320.4

6.2

73.4

4 283.0 5 039.3

FEMALES 1 716.4 3 425.2 Family member Wife or partner 1 271.7 2 456.2 508.1 1 254.9 With dependants 763.6 1 201.3 Without dependants Lone parent 150.2 312.7 110.5 251.1 With dependants 39.7 61.6 Without dependants Dependent student 4.6 236.7 Non-dependent child(b) 250.4 360.2 Other family person 39.5 59.3 Non-family member 404.1 557.0 Lone person 247.5 329.5 Not living alone 156.6 227.6

222.6 93.6 52.2 41.4 48.0 43.6 4.4 35.8

3 647.7 2 549.8 1 307.1 1 242.7 360.7 294.7 66.0 272.5

2 543.1 1 790.6 689.1 1 101.5 348.1 230.7 117.5 238.6

6 190.8 4 340.4 1 996.3 2 344.1 708.9 525.4 183.5 511.1

6.1 3.7 4.0 3.3 13.3 14.8 6.7 13.1

58.9 58.7 65.5 53.0 50.9 56.1 36.0 53.3

36.2 9.0 38.6 21.7 16.9

396.4 68.3 595.7 351.2 244.5

55.3 110.4 678.9 593.7 85.3

451.7 178.7 1 274.6 944.8 329.8

9.1 13.1 6.5 6.2 6.9

87.7 38.2 46.7 37.2 74.1

Total

261.2

4 243.4

3 222.0

7 465.4

6.2

56.8

2 120.4 3 982.2

PERSONS 5 352.5 7 686.7 Family member Husband, wife or partner 4 249.4 5 746.9 2 235.2 3 116.8 With dependants Without dependants 2 014.2 2 630.1 Lone parent 222.7 396.7 155.6 305.4 With dependants 67.1 91.3 Without dependants Dependent student 8.1 419.7 Non-dependent child(b) 763.6 976.8 Other family person 108.7 146.7 Non-family member 1 051.0 1 334.7 Lone person 639.3 795.2 Not living alone 411.8 539.5

478.3

8 165.0

4 095.0

12 260.0

5.9

66.6

211.5 121.0 90.5 54.6 48.6 6.0 67.2

5 958.4 3 237.8 2 720.7 451.3 354.0 97.3 486.9

2 886.6 846.4 2 040.2 391.2 251.2 139.9 512.4

8 845.1 4 084.2 4 760.9 842.4 605.3 237.1 999.2

3.6 3.7 3.3 12.1 13.7 6.2 13.8

67.4 79.3 57.1 53.6 58.5 41.0 48.7

121.0 24.0 118.0 60.4 57.6

1 097.7 170.7 1 452.7 855.6 597.1

144.9 159.9 1 073.1 896.6 176.5

1 242.7 330.6 2 525.8 1 752.2 773.6

11.0 14.0 8.1 7.1 9.6

88.3 51.6 57.5 48.8 77.2

Total

596.3

9 617.7

5 168.1

14 785.8

6.2

65.0

6 403.5 9 021.4

(a) Civilians who were residents of private dwellings where family status was determined. Generally relationship in household is determined for more than 90% of all civilians aged 15 and over. (b) Aged 15 and over. Source: Labour Force, Australia, June 2002 (6203.0).

Chapter 6 — Labour

159

Labour force experience The Labour Force Experience Survey examines labour force activity over a 12-month period. It is a biennial survey of persons in Australia aged 15–69 years. The survey provides information about how many weeks each person spent working, looking for work or not in the labour force, and some additional variables about persons involved in these activities. Information from the latest survey relates to the year ending February 2001. Data from the Labour Force Experience Survey provide additional insights into labour market activity that are not available from data sources measuring labour market activity at a particular point in time. For example, during the 12 months to February 2001, about 59% of persons aged 15–69 were employed at any given point in time. Quite a different picture of the labour market is obtained by examining the labour force experience of persons aged 15–69 years over the same 12-month period. Over the year ended February 2001, about 74% of people worked at some time during the year. Similarly, examining unemployment data for the 12 months to February 2001, the unemployment rate at any given point in time during the year was around 6.8%; however, 17.5% of persons aged 15–69 were looking for work at some time during the year.

The contrast between point in time data (the currently economically active population) and labour force experience data (i.e. the usually active population) is illustrated in graph 6.9. The graph compares unemployment data from the monthly Labour Force Survey with the proportion of people who experienced unemployment at some time during the year. Data are compared over six 12-month periods during the past decade (i.e. those periods for which Labour Force Experience Survey data are available). The proportion of people who looked for work at some time in the previous 12 months was highest in March 1993, corresponding with a high unemployment rate. The number of people searching for work has declined steadily since March 1993. While the longitudinal data provide greater insight into labour market activity, they do not change the overall picture of the state of the labour market. Table 6.10 summarises the labour market experience of persons aged 15–69 in Australia during the year to February 2001. The table distinguishes between those people who changed their labour force status during the year and those who did not. It shows that 72.3% of persons aged 15–69 did not change their labour force status during the 12 months to February 2001. The remaining 27.7% changed their labour force status at some time during the year. Of those people who did not change their labour force status during the year, 67.7% spent the entire year working.

6.9 UNEMPLOYMENT EXPERIENCE % 25

Unemployment rate(a)(b) Looked for work some time during year(c)

20 15 10 5 0 Mar 1991

Mar 1993

Feb 1995

Feb 1997

Feb 1999

Feb 2001

(a) Calculated as the number of unemployed persons as a percentage of the labour force. (b) Annual average for the 12 months to February. (c) Calculated as the number of persons who looked for work at some time during the year as a percentage of persons in the labour force at some time during the year. Source: Labour Force, Australia (6203.0); Labour Force Experience, Australia (6206.0).

160

Year Book Australia 2003

6.10

LABOUR FORCE EXPERIENCE — Year ending February 2001 Units % %

Males 73.3 15.1

Females 71.2 28.9

Persons 72.3 22.0

% %

56.5 1.7

41.3 1.1

48.9 1.4

Change in labour force status during the year Worked part of the year(a) Worked 1 to under 26 weeks Worked 26 to under 39 weeks Worked 39 to under 52 weeks Other(b)

% % % % % %

26.7 24.5 6.4 4.4 13.8 2.2

28.8 25.2 7.5 4.7 13.0 3.6

27.7 24.8 6.9 4.6 13.4 2.9

Total

%

100.0

100.0

100.0

’000

6 722.6

6 691.3

13 413.9

No change in labour force status during the year Not in the labour force at any time during the year In the labour force for the whole year Worked whole year Looked for work all year

Number

(a) Labour force status during rest of the year not specified. (b) Looked for work for part of the year, not in the labour force the rest of the year. Source: Labour Force Experience, Australia, February 2001 (6206.0).

Also included among those who did not change their labour force status during the year were a number of people who remained outside the labour force for the entire year (22.0%). This category was dominated by women, with almost twice as many women as men not active in the labour force at any time during the year. In addition to those people who worked for the whole year and those who remained outside the labour force for the whole year, there was a relatively small group of persons aged 15–69 who looked for work for the whole year (1.4% or 188,500 persons). Of those persons aged 15–69 who changed their labour force status during the year, 90% worked for part of the year. More than half of the population in this group worked between 39 and 52 weeks. In addition, two-thirds of those who worked for part of the year spent the rest of the year not in the labour force. Altogether, about 1.7 million Australians looked for work at some time during the year ended February 2001. Table 6.11 shows the time they spent looking for work and the number of different periods during which they looked for a job. Of those people who looked for work during the year, 53.3% spent less than three months searching for a job. However,

10.9% of job searchers spent the entire year looking for work without finding a job. In terms of the number of spells looking for work, 72.2% of job searchers had only one spell looking for work, but 10.6% of those who looked for work had four or more periods during which they looked for a job.

6.11

PERSONS WHO LOOKED FOR WORK AT SOME TIME DURING THE YEAR — Year ending February 2001 ’000

%

Time spent looking for work 1 to under 4 weeks 4 to under 13 weeks 13 to under 26 weeks 26 to under 39 weeks 39 to under 52 weeks 52 weeks

318.6 603.0 267.5 212.2 140.8 188.5

18.4 34.8 15.5 12.3 8.1 10.9

Number of spells looking for work One Two Three Four or more

1 249.8 194.4 102.8 183.6

72.2 11.2 5.9 10.6

Total

1 730.6

100.0

Source: Labour Force Experience, Australia, February 2001 (6206.0).

Chapter 6 — Labour

Persons employed People are considered to be employed if they were in paid work for one hour or more in the reference week, or were contributing family workers working an hour or more. Those people who were absent from work in the reference week are also considered to be employed (unless they had been on unpaid leave for more than four weeks). This section contains information about people who are employed, including whether they worked full-time or part-time, and details about the industry and occupation they work in. Relating employment levels to population levels enables evaluation of the strength of job growth compared to population growth. The measure relating these two levels is the employment/population ratio. Its usefulness lies in the fact that, while movements in the employment level reflect net changes in the levels of persons holding jobs, movements in the ratio reflect net changes in the number of persons employed relative to changes in the size of the population.

Full-time and part-time employment In the Labour Force Survey, employed persons are regarded as either full-time or part-time, depending on the number of hours worked. Full-time workers are those who worked 35 hours or more during the reference week of the Labour Force Survey, or who usually worked 35 hours or more each week (in all jobs). Part-time workers are those who usually worked less than 35 hours a week and who did so during the reference week.

Males Females Persons

Graph 6.13 shows annual percentage increases in part-time and full-time employment since 1979–80. For most of this period part-time and full-time employment have followed much the same pattern. The major exceptions to this have been 1981–82 to 1982–83 and from 1999–2000 onwards. While the patterns of change have been similar, in every year part-time employment has increased at a greater rate than full-time employment in each year (or decreased at a lesser rate during the recession of the early 1990s). As part-time employment has been increasing at a faster rate than full-time employment over this period, it follows that the proportion of part-time employed persons has also risen over the period. The proportion of part-time employed persons has steadily increased, from 16% in 1979–80 to 28% in 2001–02. Following a period of strong economic growth in the late 1980s and early 1990s, and the subsequent recession of the early 1990s, employment growth fluctuated considerably. In 1991–92, both full-time employment (up 5%) and part-time employment (up 13%) recorded strong increases. In 1992–93, as the impact of the recession and its effects on the demand for labour were felt in the labour market, full-time employment and part-time employment both fell strongly, recording decreases of 8% and 6% respectively.

The overall employment/population ratio rose from 58.1% in 1996–97 to 59.5% in 2001–02; the latter represents a slight fall from 59.6% recorded in 2000–01 (table 6.12). In 2001–02, the employment/population ratio for males was considerably higher than for females (67.4% compared to 51.8%), which reflects the higher participation of males in the labour force.

6.12

161

In 2001–02 there were 9,232,000 employed persons, with 72.0% working full-time (table 6.14). Males were far more likely than females to work full-time (85.6% to 54.8%). Part-time work was most prevalent among the younger (aged 15–19) and older (65 and over) age groups (66.2% and 52.3% respectively). For females, at least a third of each age group worked part-time, with the 20–24 and 25–34 year age groups having the lowest proportion of part-time workers (37.0% and 34.2% respectively).

EMPLOYED PERSONS(a), Employment/population ratios(b)

1996–97 % 67.1 49.5 58.1

1997–98 % 66.9 49.5 58.1

1998–99 % 67.2 50.0 58.5

1999–2000 % 67.6 51.0 59.2

2000–01 % 67.6 51.8 59.6

2001–02 % 67.4 51.8 59.5

(a) Data have not been revised to reflect definitional changes in the Labour Force Survey questionnaire introduced in April 2001. Data collected from April 2001 onwards are not strictly comparable with data collected in earlier periods. For further information, see ‘Information Paper: Implementing the Redesigned Labour Force Survey Questionnaire’ (6295.0). (b) The employment/ population ratio for any group is the number of employed persons expressed as a percentage of the civilian population aged 15 and over in the same group. Source: ABS data available on request, Labour Force Survey.

162

Year Book Australia 2003

6.13 EMPLOYED PERSONS, Percentage change in annual average employment % Full-time 15 Part-time

10 5 0 –5 –10 1979–80

1982–83

1986–87

1990–91

1993–94

1997–98

2001–02

Source: ABS data available on request, Labour Force Survey.

6.14 EMPLOYED PERSONS, Full-time and part-time workers: Annual average(a) — 2001–02 Age group (years) Units 15–19

20–24

25–34

35–44

45–54 55–59 60–64

65 and over

Total

MALES Full-time workers Part-time workers Total Proportion of part-time workers

’000 ’000 ’000

145.4 191.8 337.1

415.3 122.6 537.9

%

56.9

22.8

1 129.0 109.3 1 238.3

1 182.4 93.1 1 275.5

1 027.4 86.5 1 113.9

313.6 47.1 360.7

146.1 42.3 188.4

60.0 48.7 108.7

4 419.1 741.3 5 160.4

8.8

7.3

7.8

13.1

22.4

44.8

14.4

634.0 329.0 963.1

517.2 485.7 1 003.0

519.9 383.2 903.1

124.6 123.3 247.9

38.7 55.7 94.5

13.4 31.7 45.1

2 232.4 1 839.2 4 071.6

34.2

48.4

42.4

49.8

59.0

70.3

45.2

1 547.3 438.2 184.9 469.7 170.4 98.0 2 017.0 608.6 282.8

73.4 80.4 153.8

6 651.5 2 580.5 9 232.0

52.3

27.9

FEMALES Full-time workers Part-time workers Total Proportion of part-time workers

’000 ’000 ’000

81.9 252.7 334.6

302.6 177.7 480.3

%

75.5

37.0

PERSONS Full-time workers Part-time workers Total Proportion of part-time workers

’000 227.3 ’000 444.5 ’000 671.8 %

66.2

717.9 300.3 1 018.2

1 763.0 438.3 2 201.3

1 699.6 578.9 2 278.5

29.5

19.9

25.4

23.3

28.0

34.6

(a) Annual averages based on monthly data. Source: ABS data available on request, Labour Force Survey.

Employment by industry and occupation The distribution of employed persons across industries and occupations, and the changes over time, provide an important insight into the structure of the labour market. Graph 6.15 provides information on the proportion of employed persons, by industry, for the years 1986–87 and 2001–02.

Since 1986–87, the industry composition of the labour market has changed considerably. Historically, the Manufacturing industry has been the dominant employing industry, but its contribution to the number of employed persons has been declining. As recently as 1990–91, the Manufacturing industry was the largest employer; however, it is now second to Retail trade, which has 15% of employed persons. Manufacturing has fallen from 16% of all employed persons in 1986–87, and 15% in 1990–91, to 12% in 2001–02. Employment in other traditional

Chapter 6 — Labour

commodity-based industries, such as Agriculture, forestry and fishing, and Mining, has also declined over this period. Over the same period, service-based industries have increased their share of employed persons. Property and business services has increased markedly, from 7% to 11% of employed persons, to now rate as the third biggest employing industry, while Health has risen from 8% to 10%, and Accommodation, cafes and restaurants from 3% to 5%.

163

Table 6.16 shows the number of employed persons in each occupation by age. In 2001–02, the most common occupation was Professionals (18.5%), followed by Intermediate clerical, sales and service workers (17.1%). Advanced clerical and service workers was the least prevalent occupation (4.3%). There is a correlation between age and occupation, with a higher proportion of employed persons in the younger age groups employed in the lower skilled occupations, and older age groups employed in the more highly skilled occupations.

6.15 EMPLOYED PERSONS, By industry(a) Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services

1986–87 2001–02

0

5

10 %

15

20

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). Source: Labour Force, Australia (6203.0).

6.16

EMPLOYED PERSONS, By occupation(a): Annual average(b) — 2001–02 Age group (years)

Managers and administrators Professionals Associate professionals Tradespersons and related workers Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers All occupations Number

Units 15–19 % 0.4 % 1.7 % 2.6

20–24 1.7 13.7 8.0

25–34 5.9 21.9 12.5

35–44 8.9 20.4 13.0

45–54 55–59 60–64 10.2 12.2 15.5 20.7 18.8 17.7 13.8 13.5 13.0

65 and over 28.0 18.7 12.2

All age groups 7.8 18.5 11.8

%

12.6

16.4

14.2

12.5

11.0

10.3

12.1

7.7

12.8

%

1.1

3.3

4.4

4.6

5.0

5.4

4.6

5.3

4.3

%

16.5

23.8

17.5

16.6

16.2

14.8

11.7

8.7

17.1

%

7.0

7.2

8.4

9.7

8.8

9.4

9.6

6.3

8.6

39.9 15.9 7.1 6.1 5.9 18.3 10.0 8.1 8.2 8.3 100.0 100.0 100.0 100.0 100.0 664.1 1 011.7 2 192.6 2 277.6 2 017.0

6.1 9.4 100.0 609.7

6.7 9.0 100.0 282.5

% % % ’000

5.8 9.8 7.3 9.2 100.0 100.0 152.2 9 207.3

(a) Classified according to the Australian Standard Classification of Occupations (ASCO). (b) Annual average of quarterly data. Source: Labour Force, Australia, June 2002 (6203.0).

164

Year Book Australia 2003

This is particularly evident in the lower age groups. Of all employed persons aged 15–19, 39.9% were employed as Elementary clerical, sales and service workers, and a further 18.3% as Labourers and related workers. However, in the 20–24 year age group, the proportions in these occupations were lower (15.9% and 10.0% respectively), with 23.8% employed as Intermediate clerical, sales and related workers and 13.7% employed as Professionals (compared to 16.5% and 1.7% in the 15–19 year age group respectively). In contrast, less than 1% of 15–19 year olds and 2% of 20–24 year olds were Managers and administrators, while at the other end of the age spectrum, in the age group 65 years and over, the highest proportion were Managers and administrators (28.0%). There are large gender differences in occupations, with females dominating clerical occupations, for example, Advanced clerical and service workers, Intermediate clerical, sales and service workers, and Elementary clerical, sales and service workers; and males dominating the trades, for example, Tradespersons and related workers and Intermediate production and transport workers (graph 6.17). For example, a higher proportion of males were employed as Tradespersons and related workers (21% compared to 3% for females), while a higher

proportion of females were employed as Intermediate clerical, sales and service workers (28% compared to 8% for males).

Persons unemployed In the Labour Force Survey, people are considered to be unemployed if they satisfy three criteria: they are not employed; they are available for work; and they are taking active steps to find work. Two important measures of unemployment are the number of persons unemployed and the unemployment rate. The unemployment rate is defined as the number of unemployed persons expressed as a percentage of the labour force. The unemployment rate has fluctuated over the past 20 years, with two significant periods of high unemployment reflecting the recessions of the early 1980s and early 1990s (graph 6.18). The unemployment rate peaked at 10.7% in December 1992, and has generally fallen over the rest of the 1990s, standing at 6.3% in June 2002. Historically, the unemployment rate for males has been lower than for females. However, just prior to the recession of the early 1990s, when unemployment increased dramatically, the male unemployment rate increased to a level above the female unemployment rate, and has remained higher ever since.

6.17 EMPLOYED PERSONS, By occupation(a) — 2001–02 Managers and administrators Professionals Associate professionals Tradespersons and related workers Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers

Males Females

0

10

20 %

(a) Classified according to the Australian Standard Classification of Occupations (ASCO). Source: Labour Force, Australia, June 2002 (6203.0).

30

Chapter 6 — Labour

165

6.18 UNEMPLOYMENT RATE: Trend estimates % 12

Males Females Persons

10 8 6 4 Jun 1978

Jun 1982

Jun 1986

Jun 1990

Jun 1994

Jun 1998

Jun 2002

Source: ABS data available on request, Labour Force Survey.

rate for all capital cities was 6.3%, compared to 7.3% for all regional areas. New South Wales had the largest difference, with Sydney recording an unemployment rate of 5.2%, while for the rest of New South Wales the rate was 8.0%. In contrast, South Australia, Western Australia and Tasmania all recorded lower unemployment rates in regional areas than in their capitals.

Unemployment rates vary across states (table 6.19). For 2001–02, the average unemployment rate was 6.6%, with the Australian Capital Territory (4.6%), New South Wales (6.1%), Victoria (6.3%) and Western Australia (6.5%) all below the national average. Tasmania (8.8%) and Queensland (7.9%) both recorded unemployment rates well above the national average.

The number of unemployed persons increased from 647,700 in 2000–01 to 656,800 in 2001–02 (table 6.20). This represents the first annual increase since the peak of 914,100 in 1992–93.

There are also differences in the rates of unemployment between the capital cities and regional areas. In 2001–02, the unemployment

6.19

Capital city Balance of state All regions

NSW % 5.2 8.0 6.1

UNEMPLOYMENT RATE: Annual average — 2001–02 Vic. % 6.2 6.4 6.3

Qld % 7.9 7.9 7.9

SA % 7.1 6.7 7.0

WA % 6.5 6.3 6.5

Tas. % 8.8 8.7 8.8

NT(a) % .. 6.8 6.8

ACT(a) % .. 4.6 4.6

Aust. % 6.3 7.3 6.6

(a) All included in balance of state. Source: ABS data available on request, Labour Force Survey.

6.20 Weeks

UNEMPLOYED PERSONS(a), Duration of unemployment: Annual average

Under 8 8 to under 26 26 to under 52 52 to under 104 104 and over Total

Units % % % % % %

1996–97 29.3 24.8 16.7 13.2 16.0 100.0

1997–98 27.9 23.9 16.6 14.5 17.2 100.0

1998–99 29.8 23.3 14.9 13.4 18.5 100.0

1999–2000 34.0 23.6 13.8 10.8 17.9 100.0

2000–01 35.8 25.7 13.9 9.7 14.9 100.0

2001–02 35.0 28.3 14.3 9.0 13.4 100.0

Number

’000

792.4

764.2

718.2

661.4

647.7

656.8

(a) Data have not been revised to reflect definitional changes in the Labour Force Survey questionnaire introduced in April 2001. Data collected from April 2001 onwards are not strictly comparable with data collected in earlier periods. For further information, see ‘Information Paper: Implementing the Redesigned Labour Force Survey Questionnaire’ (6295.0). Source: ABS data available on request, Labour Force Survey.

166

Year Book Australia 2003

In 2001–02, 63.3% of unemployed persons had been unemployed for less than 26 weeks, while 22.4% had been unemployed for 52 weeks or more (long-term unemployed). In contrast, in 1997–98, 51.8% of unemployed persons had been unemployed for less than 26 weeks, while 31.7% were long-term unemployed.

Year 10 or below. It also shows the relationship between the level of highest educational attainment and duration of unemployment. Of unemployed persons with a bachelor degree or above, 13% were long-term unemployed, compared to 30% of those who had completed Year 10 or below.

Educational qualifications have a significant bearing on labour market prospects. Table 6.21 shows that, as the level of educational attainment decreases, the unemployment rate increases, from 2.8% for those with a bachelor degree or higher to 11.0% for those who had completed

Unemployed persons can encounter a variety of difficulties in finding work, as shown in table 6.22. The most commonly reported difficulties were ‘Considered too young or too old by employers’ (11.7%), ‘Insufficient work experience’ (11.6%) and ‘Too many applicants for available jobs’ (11.5%).

6.21

UNEMPLOYED PERSONS, Educational attainment(a) and duration of unemployment — July 2001 Level of highest educational attainment

1 to under 8 8 to under 26 26 to under 52 52 to under 104 104 and over Total(c)

Units % % % % % %

Bachelor degree or above 41.3 27.7 18.3 3.8 8.8 100.0

Number(c)

’000

52.0

23.5

71.9

123.7

83.4

254.1

613.0

%

2.8

4.3

5.1

7.4

9.4

11.0

6.9

Duration of current period of unemployment (weeks)

Unemployment rate(d)

Advanced diploma or diploma Certificate 38.3 31.3 22.1 37.3 20.4 9.6 5.1 10.0 13.6 11.8 100.0 100.0

Year 12(b) 33.2 31.0 20.3 7.4 8.1 100.0

All Year Year 10 or unemployed 11(b) below(b) persons 30.8 30.3 32.2 30.8 25.5 28.7 15.8 14.1 15.6 10.7 10.1 8.9 11.9 20.0 14.6 100.0 100.0 100.0

(a) The levels of education are not necessarily listed in order from highest to lowest. See paragraphs 15–17 of the Explanatory Notes in ‘Education and Work, Australia’ (6227.0) for further details on how highest educational attainment is determined. (b) Includes persons who are currently undertaking school study. (c) Includes no educational attainment and level not determined. (d) From ‘Education and Work, Australia’ (6227.0). Source: Education and Work, Australia, May 2001 (6227.0); Job Search Experience, Australia, July 2001 (6222.0).

6.22

UNEMPLOYED PERSONS, Main difficulty in finding work — July 2001

Too many applicants for available jobs Lacked necessary skills or education Considered too young or too old by employers Insufficient work experience No vacancies at all No vacancies in line of work Too far to travel, transport problems Own ill health or disability Language difficulties Unsuitable hours Difficulties with childcare, other family responsibilities Other difficulties(a) No difficulties reported Total

Units % % % % % % % % % % % % % %

Males 11.9 11.1 12.2 9.6 12.4 12.1 7.4 6.7 2.6 2.5 *0.3 3.7 7.7 100.0

Females 10.9 9.4 11.0 14.5 8.1 7.9 5.8 4.3 *2.1 8.5 4.4 3.1 9.8 100.0

Persons 11.5 10.4 11.7 11.6 10.7 10.3 6.8 5.7 2.4 5.0 2.0 3.4 8.5 100.0

Number

’000

363.2

249.8

613.0

(a) Includes persons who reported difficulties because of ethnic background. Source: Job Search Experience, Australia, July 2001 (6222.0).

Chapter 6 — Labour

The proportions of males and females who reported most of the more common difficulties are largely similar. However, females were more likely to report insufficient work experience as their main difficulty (14.5% compared to 9.6% for males), as well as difficulties that relate to concerns outside of the workplace, such as ‘Unsuitable hours’ (8.5% to 2.5%) and ‘Difficulties with childcare, other family responsibilities’ (4.4% to 0.3%). Males were more likely to report their main difficulty as being related to the availability of work, for example, ‘No vacancies at all’ (12.4% compared to 8.1% for females) and ‘No vacancies in line of work’ (12.1% compared to 7.9% for females).

Job vacancies Job vacancy statistics can be used to assess changes in the demand for labour. The ABS conducts a quarterly Job Vacancies Survey. In this survey, a job vacancy is defined as a job available for immediate filling on the survey reference day and for which recruitment action has been taken by the employer. Recruitment action includes efforts to fill the vacancy by advertising, posting factory notices, notifying public or private employment agencies or trade unions, and contacting, interviewing or selecting applicants already registered with the business.

Graph 6.23 provides trend estimates of job vacancies, including the private and public sectors, for the period May 1982 to May 2002. It shows that, after peaking at 86,400 in February 1989, the estimated number of job vacancies in Australia fell rapidly to a low of 29,700 in August 1991. Vacancies subsequently rose to a new peak of 109,300 in May and August 2000. Public sector job vacancies have increased recently, standing at 16,300 in May 2002, after declining to below 10,000 through much of the 1990s. In contrast, the number of job vacancies in the private sector has been far more volatile. After reaching a low of 19,100 in May 1991, private sector job vacancies climbed to 93,800 in August 2000, the highest level recorded to that point. Table 6.24 shows that the number of job vacancies (original estimates) increased from 83,400 in May 2001 to 88,800 in May 2002. The overall increase in job vacancies of 5,400 was spread unevenly across the industries, with eight industries recording a decrease, six recording an increase, and two remaining unchanged. The largest increases occurred in Construction (by 4,400), Retail trade (by 3,500) and Manufacturing (by 1,600). The largest decreases were recorded in Wholesale trade (by 2,200), Finance and insurance (by 1,200) and Cultural and recreational services (by 1,100).

6.23 JOB VACANCIES: Trend estimates '000 125

Public sector Private sector All sectors

100 75 50 25 0 May 1982

May 1986

May 1990

Source: Job Vacancies, Australia (6354.0).

167

May 1994

May 1998

May 2002

168

Year Book Australia 2003

6.24

JOB VACANCIES, By industry(a) — May 1997 ’000 1.5 7.5 0.3 5.9 6.4 9.0 6.0 0.7 0.3 5.0 13.1 3.3 2.8 7.9 1.9 1.2 72.7

Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services All industries

1998 ’000 1.1 8.3 0.2 7.8 7.6 15.5 4.5 1.7 0.3 3.1 22.5 3.8 3.7 7.7 1.2 3.5 92.5

1999 ’000 1.1 12.2 0.3 4.6 6.6 9.0 8.9 2.7 1.2 3.1 17.2 4.7 3.1 7.7 3.1 3.4 88.9

2000 ’000 0.8 12.2 0.4 4.4 5.2 8.3 8.5 2.9 1.5 5.2 20.0 4.9 6.7 9.7 2.9 8.4 102.1

2001 ’000 1.2 8.4 0.3 3.4 5.9 7.9 6.1 1.5 0.6 4.9 15.3 5.9 3.6 11.0 2.9 4.5 83.4

2002 ’000 1.1 10.0 0.3 7.8 3.7 11.4 6.5 2.4 0.4 3.7 15.8 5.7 2.8 11.0 1.8 4.2 88.8

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). Source: Job Vacancies, Australia (6354.0).

Characteristics of employment

The job vacancy rate is the number of job vacancies expressed as a percentage of the number of employees plus the number of vacancies. The job vacancy rate for Australia was 1.16% in May 2002, compared to 1.10% in May 2001 and 1.36% in May 2000 (table 6.25). The job vacancy rate varied considerably across the states and territories in May 2002, with the Australian Capital Territory recording the highest job vacancy rate (1.97%) and Queensland the lowest (0.74%). Western Australia recorded the largest increase between May 2001 and May 2002 (0.89% to 1.24%), while Queensland recorded the largest decrease (1.03% to 0.74%).

6.25

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia Source: Job Vacancies, Australia (6354.0).

1997 % 1.04 0.77 1.20 0.68 1.44 1.14 1.52 0.79 1.01

Australia’s workforce continues to change. There is an increasing diversity of employment arrangements, more flexible working time patterns, and an increase in the extent of part-time hours within Australia. This section looks at working arrangements, specifically employment types, overtime and locations of work, and hours worked.

JOB VACANCY RATE — May 1998 % 1.06 1.20 1.46 0.58 1.89 0.45 2.35 1.13 1.22

1999 % 1.38 1.05 0.87 0.82 1.15 1.37 1.52 1.64 1.15

2000 % 1.67 1.28 1.22 0.95 1.08 0.77 1.51 2.02 1.36

2001 % 1.16 1.11 1.03 0.99 0.89 0.89 1.79 1.64 1.10

2002 % 1.22 1.28 0.74 1.28 1.24 0.84 1.60 1.97 1.16

Chapter 6 — Labour

There were 9,058,500 employed persons surveyed in November 2001. The predominant employment type was employees with paid leave entitlements (58.1%). Other large groups were self-identified casuals (20.0%) and owner managers of unincorporated enterprises (12.5%).

Working arrangements Working arrangements include employment arrangements, flexibility of hours worked, and the location where work is performed. Measures of working arrangements supplement measures of hours of work, full-time and part-time status, and other classifications of jobholders, and are useful in understanding changing workplace employment conditions.

Table 6.26 shows that the predominant employment type changes as employees age. Young persons aged 15–19 years were most likely to identify themselves as being casually employed (66.3%), while 16% of employed persons in all other age groups were self-identified casuals. People aged 20–64 were most likely to be employees with paid leave entitlements — over 60% of all employed persons in these age groups fitted into that category. The incidence of employment type being owner manager increased with age — 30% of all persons aged 45 and over were owner managers compared to 14% of persons aged under 45. Those aged 65–69 were more likely to be owner managers (56%).

This section discusses three aspects of working arrangements: employment type, overtime and location of work.

Employment types In the Forms of Employment Survey of November 2001, the ABS collected information on the structure and incidence of different employment arrangements, as well as data on aspects of job tenure, job security and control over working arrangements. Employed persons, excluding contributing family workers and persons working for payment in kind only, were classified to one of five employment types on the basis of their main job, that is, the job in which they usually worked the most hours. The employment types are: employees with paid leave entitlements; self-identified casuals; employees without paid leave entitlements (who did not identify as casual); owner managers of incorporated enterprises; and owner managers of unincorporated enterprises.

6.26

169

Graph 6.27 shows that although the proportion of employed persons who were employees with paid leave entitlements was similar for males (59%) and females (57%), more females identified themselves as casual employees (27%) than males (15%). In contrast, the proportion of males working in their own business was higher than for females (24% compared to 13%).

EMPLOYMENT TYPE, Employed persons(a) — November 2001 Age group (years)

Units 15–19 Employees with paid leave entitlements % 28.3 Self-identified casuals % 66.3

Employees without paid leave entitlements (who did not identify as casual) Owner managers of incorporated enterprises Owner managers of unincorporated enterprises Total Number

20–24 60.1 32.1

25–34 67.2 15.8

35–44 60.6 14.6

45–54 55–64 65–69 59.2 50.2 22.7 12.1 14.0 18.9

All age groups 58.1 20.0

%

4.0

3.2

2.7

2.3

1.9

2.2

*3.0

2.5

%

**0.1

0.6

3.8

8.5

11.0

12.5

18.8

6.9

%

1.2

4.0

10.6

14.1

15.7

21.1

36.7

12.5

%

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

656.6 1 000.1 2 172.4 2 260.1 2 005.7

871.5

92.1

9 058.5

’000

(a) Excluding persons who were contributing family workers and employees who worked for payment in kind only, in their main job. Source: Forms of Employment, Australia, November 2001 (6359.0).

170

Year Book Australia 2003

6.27 EMPLOYMENT TYPE — November 2001 Employees with paid leave entitlements Self-identified casuals Employees without paid leave entitlements(a) Owner managers of incorporated enterprises Owner managers of unincorporated enterprises

Males Females

0

20

40

60

% (a) Who did not identify as casual. Source: Forms of Employment, Australia, November 2001 (6359.0).

Overtime

6.29

Overtime refers to the work undertaken that is outside, or in addition to, ordinary working hours in an employee’s main job, whether paid or unpaid. As seen in table 6.28, almost one-third of all employees (33.0%) worked overtime on a regular basis. Males (39.3%) worked overtime on a regular basis more often than females (25.4%). Females (73.3%) were more likely to have not worked any overtime than males (58.9%).

6.28

WHETHER OVERTIME IS WORKED ON A REGULAR BASIS(a), In main job — November 2000 Units

Worked on a regular basis Not worked on a regular basis Overtime not worked Total Number

Males Females

Persons

%

39.3

25.4

33.0

%

1.8

1.3

1.6

%

58.9

73.3

65.5

%

100.0

100.0

100.0

’000 4 198.1 3 517.5 7 715.6

(a) Refers to employees aged 15 and over. Source: Working Arrangements, Australia, November 2000 (6342.0).

Table 6.29 shows that full-time employees were much more likely to work overtime on a regular basis than part-time employees (40.8% compared to 12.1%). While males working full-time are more likely to work overtime on a regular basis than females, males and females working part-time show the same incidence of working overtime on a regular basis (12.1%).

WORKING OVERTIME ON A REGULAR BASIS(a), In main job — November 2000 Males % 43.5 12.1 39.3

Full-time employees Part-time employees All employees

Females % 35.9 12.1 25.4

Persons % 40.8 12.1 33.0

(a) Refers to employees aged 15 and over. Source: Working Arrangements, Australia, November 2000 (6342.0).

Table 6.30 shows that between 1995 and 1997, of those employees who usually work overtime in their main job, the proportion receiving overtime pay decreased from 40.7% to 37.7%, but then increased to 38.4% in 2000. Unpaid overtime remained constant from 1995 to 1997 (around 35%) and then decreased to 33.5% in 2000.

6.30 WHETHER OVERTIME IS PAID, Employees who usually work overtime in main job(a)

Paid overtime Included in salary package Time off in lieu Unpaid overtime Other arrangements Total Number

Units %

August 1995 40.7

August November 1997 2000 37.7 38.4

% % %

19.7 4.0 34.8

22.7 3.8 34.9

21.2 5.2 33.5

%

0.8

0.9

1.7

%

100.0

100.0

100.0

’000

2 386.2

2 281.4

2 543.8

(a) Refers to employees aged 15 and over. Source: Working Arrangements, Australia (6342.0).

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171

6.31 MAIN LOCATION OF WORK IN MAIN JOB(a), Employed persons at work in reference week — June 2000

Locations of work Locations of work refers to the different types of places where people work. These include traditional workplaces, such as offices, factories and other business premises; homes, including both own homes and other homes; travelling workers who have no fixed location; and other locations including parks, beaches, streets and forests.

Own home(b) Employer’s or client’s home Business premises Travelling Other Total

Persons employed at home are defined as employed persons who worked all or most hours at home and employees who had an arrangement with their employer to work some hours at home, in their main or second job. In June 2000, there were 8,589,400 employed persons at work during the reference period, of whom 83.9% worked mainly at business premises (table 6.31). Females were more likely than males to work mainly at their own home (8.4% compared to 6.1%) and at business premises (87.4% compared to 81.2%). Males were more likely to travel as their main location of work (6.9% compared to 1.4%). Table 6.32 shows the main location of work in main job by employment status. Of employees, 89.3% worked mainly at business premises and just 3.4% worked at their own home. In contrast, 40.5% of own account workers worked mainly at business premises and 35.5% worked at their own home. Contributing family workers had the highest proportion working at their own home (50.1%). Own account workers had the highest proportion of travelling workers (9.1%).

Number

Units %

Males Females 6.1 8.4

Persons 7.1

% % % %

4.3 81.2 6.9 1.5

2.1 87.4 1.4 0.7

3.3 83.9 4.5 1.2

%

100.0

100.0

100.0

’000 4 380.8 3 758.6 8 589.4

(a) The main location of work is the place where the most hours were worked during the survey reference week, in their main job. (b) Includes another home. Source: Locations of Work, Australia, June 2000 (6275.0).

Hours worked Hours of work are defined as the number of hours that employed persons have actually worked in all jobs during the reference week, not necessarily the hours paid for. Hours data have a wide range of uses, for example, to calculate productivity, and to monitor working conditions, quality of life and living standards of employed persons. Information on hours of work allows the ABS to classify employed persons as full-time or part-time, and also to identify underemployed persons (in conjunction with measures of those ‘wanting to work’).

6.32 MAIN LOCATION OF WORK IN MAIN JOB, Employed persons at work in reference week — June 2000

Own home(a) Employer’s or client’s home Business premises Travelling Other Total

Units % % % % % %

Employee 3.4 2.2 89.3 4.1 1.0 100.0

Employer 21.6 9.0 63.4 4.1 1.8 100.0

Own account worker 35.5 12.7 40.5 9.1 2.2 100.0

Contributing family worker 50.1 *2.9 41.5 *1.5 *3.8 100.0

Number

’000

7 496.0

292.7

732.8

67.9

(a) Includes another home. Source: Locations of Work, Australia, June 2000 (6275.0).

172

Year Book Australia 2003

Average weekly hours worked is defined as aggregate hours worked by a group of employed persons during the reference week divided by the number of employed persons in that group. Graph 6.33 shows that the average weekly hours worked by full-time employed persons rose from 39.5 in 1983–84 to 42.5 in 1994–95, an increase of 8%. However, from 1995–96 to 2000–01 the average weekly hours worked by full-time employed persons remained almost unchanged (42.5 to 42.6). In 2001–02 there was a slight fall in the average to 42.3 hours per week for full-time employed persons. As shown in graph 6.34, the average weekly hours worked in full-time employment differed across occupations, although in almost all occupations,

males worked between three and five hours longer than females. The greatest difference was in the occupation Managers and administrators where on average males worked 5.3 hours per week longer than females. The smallest difference was in Tradespersons and related workers where on average males worked 1.7 hours per week longer than females. Persons employed as Managers and administrators recorded the highest average weekly hours for full-time employment for both males (51 hours per week) and females (46), followed by Associate professionals (47 and 43). The occupation with the lowest average weekly hours worked was Labourers and related workers (40 hours per week for males and 37 for females).

6.33 AVERAGE WEEKLY HOURS WORKED(a), Full-time employed persons: Annual average hours Males 46 Females Persons

44 42 40 38

1983–84

1986–87

1989–90

1992–93

1995–96

1998–99

36 2001–02

(a) Data have not been revised to reflect definitional changes in the Labour Force Survey questionnaire introduced in April 2001. Data collected from April 2001 onwards are not strictly comparable with data collected in earlier periods. For further information, see 'Information Paper: Implementing the Redesigned Labour Force Survey Questionnaire' (6295.0). Source: ABS data available on request, Labour Force Survey.

6.34 AVERAGE WEEKLY HOURS FOR FULL-TIME EMPLOYED PERSONS, By occupation(a): Annual average — 2001–02 Managers and administrators Professionals Associate professionals Tradespersons and related workers Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers

Males Females

36

39

42 45 hours

48

(a) Classified according to the Australian Standard Classification of Occupations (ASCO). Source: Labour Force, Australia, June 2002 (6203.0).

51

Chapter 6 — Labour

Table 6.35 shows that the average weekly hours worked for males (39.8) was almost 11 hours greater than for females (29.0). This was due partly to males working longer average weekly hours in full-time employment (43.7) than females (39.5), and also because females were more likely than males to work part-time.

6.35 EMPLOYED PERSONS, Average weekly hours worked(a): Annual average(b) — 2001–02

Full-time workers Part-time workers Full-time and part-time workers

Males hours 43.7 16.2

Females hours 39.5 16.4

Persons hours 42.3 16.3

39.8

29.0

35.0

(a) The estimates refer to actual hours worked, not hours paid for. (b) Annual averages based on quarterly data. Source: Labour Force, Australia, June 2002 (6203.0).

Graph 6.36 shows that in May 2002, 37% of employed males worked between 35 and 44 hours per week, and a further 37% worked more than 45 hours per week. In contrast, 14% of employed females worked more than 45 hours per week. Most females worked between 16 and 44 hours per week, with 30% working between 16 and 34 hours, and 31% between 35 and 44 hours. Graph 6.37 shows that, from 1983–84 through to 2001–02, there was a steady increase in the number of hours worked by part-time workers as a percentage of the total number of hours worked. In 1983–84, 8% of all hours worked were in part-time employment; however, in 2001–02 this had risen to 13%. For males, 6% of the total number of hours worked were attributed to part-time employment in 2001–02, whereas for females the proportion was much greater (26%).

6.36 AVERAGE WEEKLY HOURS WORKED — May 2002 % 40

Males Females

30

20

10

0 0–15

16–34

Source: Labour Force, Australia, May 2002 (6203.0).

173

35–44

45 and over

174

Year Book Australia 2003

6.37 PART-TIME HOURS AS A PROPORTION OF TOTAL HOURS WORKED: Annual average % 30

Males Females Persons

20

10

0 1983–84

1986–87

1989–90

1992–93

1995–96

1998–99

2001–02

Source: Labour Force, Australia (6203.0).

Work-related injuries People in the work force may experience injury or illness as the result of an incident in the workplace. Information about the incidence of work-related injury or illness was collected in the Work-related Injuries Survey, conducted in September 2000 as a supplement to the monthly Labour Force Survey. The survey provides a range of information on work-related injury or illness, including details about the incidence (rate) of work-related injury or illness, number of days/shifts absent from work due to the injury or illness and whether the person experiencing the injury or illness received workers’ compensation or some other form of financial assistance. For the purposes of the survey, work-related injuries or illnesses are broadly defined as those injuries or illnesses sustained as a result of work activities, or on a journey to or from work, or by aggravation of pre-existing conditions where employment was a contributory factor. During the year ending September 2000, 477,800 Australian workers experienced a work-related injury or illness. This represents 5% of persons who worked at some time during this year. As seen in table 6.38, the work-related injury rate for males (59.8 per 1,000) was almost double that of females (36.1 per 1,000).

6.38

WORK-RELATED INJURIES OR ILLNESSES — Year ending September 2000

Males Females Persons

Experienced a work-related injury or illness in the last 12 months

Worked at some time during the year

’000 323.9 154.0 477.8

’000 5 418.5 4 268.7 9 687.3

Workrelated injury/ illness rate(a) per 1,000 persons 59.8 36.1 49.3

(a) The work-related injury or illness rate is the number of persons who experienced a work-related injury or illness during the previous 12 months per 1,000 persons who had worked at some time during that period. Source: Work-Related Injuries, Australia, September 2000 (6324.0).

Of the 477,800 persons who experienced a work-related injury or illness during the year ending September 2000, almost half (45.6%) applied for or received workers’ compensation (table 6.39). Males were more likely to apply for or receive workers’ compensation than females (47.5% compared to 41.6%). For those who did not apply for workers’ compensation, about half reported that the main reason for not applying for workers’ compensation was ‘minor injury only/not considered necessary’. A further 7.7% reported that they were not covered, or they were not aware of the existence of a workers’ compensation benefit.

Chapter 6 — Labour

175

6.39 WORKERS’ COMPENSATION APPLICATIONS(a) — Year ending September 2000 Males %

Females %

Persons %

Main reason did not apply for workers’ compensation Not covered or not aware of workers’ compensation benefit Did not think eligible Minor injury only/not considered necessary Negative impact on current or future employment Inconvenient/required too much effort/paperwork Employer agreement to pay cost Other/don’t know Total

9.0 4.4 25.4 1.7 3.6 2.3 6.1 52.5

5.1 5.4 29.2 3.5 3.8 *2.6 8.9 58.4

7.7 4.7 26.7 2.3 3.6 2.4 7.0 54.4

Applied for or received workers’ compensation

47.5

41.6

45.6

100.0

100.0

100.0

Total (a) Refers to most recent work-related injury or illness. Source: Work-Related Injuries, Australia, September 2000 (6324.0).

6.40

WORKERS’ COMPENSATION APPLICATIONS(a), Absences from work — Year ending September 2000

Days or shifts absent from work

None Part of a day/shift One to four days Five to ten days More than ten days Total

Units % % % % % %

Males 16.4 4.4 27.3 14.7 37.0 100.0

Females 18.1 *4.3 28.6 15.5 33.6 100.0

Persons 16.9 4.4 27.7 14.9 36.1 100.0

Number

’000

135.9

53.5

189.4

(a) Refers to most recent work-related injury or illness. Source: Work-Related Injuries, Australia, September 2000 (6324.0).

6.41

WORK-RELATED INJURY OR ILLNESS — Year ending September 2000

Industry

Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services Total

Persons who experienced a work-related injury ’000 29.0 7.0 91.8 *3.8 49.1 18.4 54.1 26.6 32.7 9.7 7.4 25.3 14.4 25.2 52.9 12.1 18.4 477.8

Employed persons(a) ’000 444.0 79.2 1 444.4 65.0 713.4 454.3 1 306.2 459.0 418.6 175.0 329.6 1 070.3 349.1 634.4 852.0 221.0 332.8 9 348.3

Proportion who experienced a work-related injury(b) % 6.5 8.8 6.4 5.8 6.9 4.1 4.1 5.8 7.8 5.5 2.2 2.4 4.1 4.0 6.2 5.5 5.5 5.3

(a) From the Labour Force Survey conducted in August 2000. (b) Data on work-related injuries and employed persons not strictly comparable due to differences in timing. Source: Labour Force, Australia (6203.0); Work-Related Injuries, Australia, September 2000 (6324.0).

176

Year Book Australia 2003

Table 6.40 indicates the number of days or shifts absent from work for persons who applied for and received workers’ compensation. Of the 189,400 persons who applied for and received workers’ compensation, more than one-third (36.1%) had more than 10 days off work, while 27.7% were absent from work for between one and four days. In contrast, 16.9% of persons who applied for and received workers’ compensation reported that they were not absent from work as a result of the injury or illness.

Earnings and benefits The ABS concept of earnings is based on the definition adopted by the twelfth International Conference of Labour Statisticians in 1973. Earnings are considered to be remuneration to employees, for time worked or work done, as well as remuneration for time not worked (e.g. paid annual leave). Many employees also receive other benefits in addition to earnings, including sick leave, long-service leave and superannuation. Statistics on earnings are of interest to evaluate the standard of living of workers, and to make policy decisions regarding income redistribution, social welfare, taxation and wage fixation. Comprehensive earnings statistics are required by all levels of government, social and labour market analysts, industrial tribunals, trade unions, employer associations, academics and international agencies. Information about the benefits received by workers provides a broader picture of working conditions, and of rewards provided for work done. The ABS produces a range of statistics on earnings paid to workers. The Survey of Average Weekly Earnings (AWE) and the Survey of Employee Earnings and Hours (EEH) both provide a statistical measure of the gross remuneration paid to employees. The Survey of Employee Earnings, Benefits and Trade Union Membership, which is run as a Labour Force Supplementary Survey, provides information about the earnings of employees, as well the number and type of employee benefits received by workers. It does not, however, quantify the value of these benefits. The wage cost index (WCI) measures the changes to wages and salaries of a representative mix of employee jobs. Unlike the AWE and EEH surveys,

Table 6.41 shows that the incidence of work-related injury or illness varied according to industry of employment. Mining recorded the highest incidence of work-related injury or illness, with 8.8% of employed persons experiencing a work-related injury or illness, followed by Transport and storage (7.8%) and Construction (6.9%). Agriculture, forestry and fishing and Manufacturing also recorded high incidences of work-related injury or illness. In contrast, Finance and insurance (2.2%) and Property and business services (2.4%) both recorded a low incidence of work-related injury or illness.

the WCI is unaffected by changes in the quantity or quality of work performed. The ABS is currently developing a labour price index, which will also reflect changes in the price of ‘non-wage’ components (e.g. superannuation and workers’ compensation) which contribute to the cost to employers of employing labour. It is expected that the labour price index will be published from late 2004.

Level of earnings Data on the level of earnings reflect the variations within different population groups, and across industries and occupations, providing a more detailed picture of their comparative experiences. Differences in earnings are also of interest in reflecting the strength of labour demand and supply. The AWE 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 earnings not related to the reference period). The AWE collects three types of earnings data. Average weekly ordinary-time earnings for full-time adult employee jobs (commonly referred to as AWOTE) relate to that part of total earnings attributable to award, standard or agreed hours of work. A second measure of full-time adult total earnings includes both ordinary-time and overtime pay. A third measure includes all earnings (both full-time and part-time) for all employees (both adult and junior). The focus on adult full-time jobs reduces the variability of the measure, and can be used to provide an indication of how underlying earning levels are changing over time.

Chapter 6 — Labour

177

6.42 AVERAGE WEEKLY ORDINARY-TIME EARNINGS(a) $ 1000

Males Females

900 800 700 600 500 Feb 1992

Feb 1994

Feb 1996

Feb 1998

Feb 2000

Feb 2002

(a) For full-time adult employees. Source: Average Weekly Earnings, Australia (6302.0).

Graph 6.42 shows AWOTE from February 1992 to February 2002. In dollar terms, male earnings increased more than female earnings in the 10 years to February 2002 (male earnings increased by $285.30 to $910.50 whereas female earnings increased by $248.20 to $772.10). In February 2002, female earnings were at 85% of male earnings. This represents a slight increase from 84% recorded in February 1992. As shown in table 6.43, the difference between male and female average weekly earnings was least for AWOTE (females earned 85% of the male figure of $910.50) and greatest for All employees total earnings (females earned 66% of the male figure of $823.30). The latter difference reflects the inclusion of part-time employees, as a greater proportion of female employees work part-time. In 2001–02, 45% of female employees worked part-time compared to 14% of male employees. 6.43 AVERAGE WEEKLY EARNINGS — February 2002

Full-time adult ordinary-time earnings Full-time adult total earnings All employees total earnings

Males $

Females $

Persons $

910.50

772.10

860.50

961.80

783.80

897.50

823.30

543.10

687.60

Source: Average Weekly Earnings, Australia, February 2002 (6302.0).

Table 6.44 displays the male and female average weekly ordinary-time earnings for full-time adults by state in February 2002. Males recorded higher average weekly earnings than females across all states, although the degree of difference between male and female earnings varied by state. The smallest difference between male and female earnings occurred in South Australia with females earning 89% of the corresponding male figure of $831.00, and the largest difference was in Western Australia with female earnings 79% of male earnings of $927.30. The Mining industry recorded the largest average weekly ordinary-time earnings for full-time adults in February 2002 of $1,370.50. The industry with the lowest average was Retail trade, with earnings of $643.50, followed closely by Accommodation, cafes and restaurants ($669.30). Earnings by industry followed similar trends for both males and females, although males earned more on average in every industry (graph 6.45). Full-time adult females earned approximately two-thirds of male full-time adult ordinary-time earnings in the Finance and insurance industry (66%), rising to approximately 91% in the Retail trade industry.

178

Year Book Australia 2003

6.44 Full-time adult ordinary-time earnings

Males Females Persons

AVERAGE WEEKLY EARNINGS — February 2002 NSW Vic. Qld SA WA Tas. NT ACT Aust. $ $ $ $ $ $ $ $ $ 960.10 903.00 847.20 831.00 927.30 830.50 869.90 1 014.90 910.50 802.50 777.90 725.30 741.80 736.70 716.10 757.40 874.00 772.10 901.60 860.00 802.20 801.50 859.20 788.80 836.60 951.90 860.50

Source: Average Weekly Earnings, Australia, February 2002 (6302.0).

6.45 AVERAGE WEEKLY ORDINARY-TIME EARNINGS(a), By industry(b) — February 2002 Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services

Males Females

600

800

1000

1200

1400

1600

$ (a) For full-time adult employees. (b) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). Source: Average Weekly Earnings, Australia, February 2002 (6302.0).

6.46 AVERAGE WEEKLY TOTAL EARNINGS(a), By occupation(b) — May 2000 Managers and administrators Professionals Associate professionals Tradespersons and related workers Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers

Males Females

400

600

800

1000

1200

1400

$ (a) For full-time adult employees. (b) Classified according to the Australian Standard Classification of Occupations (ASCO). Source: Employee Earnings and Hours, Australia, May 2000 (6306.0).

Data on average weekly earnings are also available from the biennial EEH survey. This survey provides additional classifications of the data, such as category of employee, type of earnings and occupation. Average weekly total earnings for full-time adult employees by occupation are presented in graph 6.46. For both males and females, Elementary clerical, sales and service workers earned the lowest average weekly

earnings of all the occupations ($682 for males and $561 for females), whereas the highest earnings were for Managers and administrators ($1,356 for males and $1,146 for females). Men had higher average earnings than women in each occupation. For full-time adult employees, the proportional difference between male and female average weekly total earnings was smallest

Chapter 6 — Labour

for Managers and administrators (average earnings of females were 85% those of males) and greatest for Tradespersons and related workers (73%). The earnings level of a worker is a function of the employer’s demand for labour, the availability of suitably qualified workers in the labour market and the skill level of the individual worker. For many occupations, there is a relationship between average weekly earnings for full-time employees and the unemployment rate. Graph 6.47 plots average weekly earnings for full-time employees against a scaled unemployment rate. In May 2000, it appeared that a low unemployment rate for an occupation tended to be associated with a higher level of average weekly earnings. Managers and administrators, Professionals and Associate professionals had the highest average weekly earnings and the lowest unemployment rates, while Tradespersons had lower wages and relatively high unemployment. However, this relationship does not always hold, for example, Intermediate production and transport workers had relatively high average weekly earnings ($761), yet also had the second highest unemployment rate (4.4%).

Changes in the price of labour Changes in the price of labour are derived from quality adjusted average hourly rates of pay (excluding bonuses) of a representative sample of employee jobs. These data are compiled to form the WCI, which is published by the ABS each quarter. The WCI is a ‘pure’ price index which measures changes over time in wage and salary costs in the Australian labour market. The WCI is unaffected by changes in the quality and quantity of work performed. As shown in table 6.48, increases in the indexes for total hourly rates of pay excluding bonuses varied across sectors and across states and territories. In the 12 months to March 2002, public sector wages grew at 3.4% and private sector wages grew at 3.1%. The percentage growth (from the corresponding quarter of the previous year) of public sector wages has been higher than the growth in private sector wages since the March quarter 2000. For the states, the highest annual percentage increase in wages from the March quarter 2001 to the March quarter 2002 was recorded by Victoria (3.4%) and the lowest was recorded by Western Australia (2.8%). Tasmania recorded the smallest annual growth in the private sector WCI (2.8%), although it recorded the largest growth in the public sector WCI (4.3%).

6.47 AVERAGE WEEKLY EARNINGS(a) AND UNEMPLOYMENT(b) RATE(c), By occupation(d) — May 2000 Managers and administrators Professionals Associate professionals Tradespersons Advanced clerical Intermediate clerical Intermediate production Elementary clerical Labourers

Average weekly earnings Unemployment rate

0

250

179

500

750

1000

1250

1500

(a) For full-time adult employees. (b) Persons unemployed for less than two years are classified to t occupation of their last full-time job. Occupation is not obtained for persons unemployed for more than two years. (c) Multiplied by 150. (d) Occupation classified according to Australian Standard Classification of Occupations (ASCO). Source: Employee Earnings and Hours, Australia, May 2000 (6306.0); Labour Force, Australia (6203.0).

180

Year Book Australia 2003

6.48

TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES, By sector

December qtr 2001

March qtr 2002

Percentage change from corresponding quarter of previous year March qtr 2002

114.2 113.6 112.1 112.2 113.4 111.0 111.3 113.6 113.4

114.9 114.2 113.1 113.1 114.2 111.7 112.1 114.2 114.1

115.6 114.9 113.9 114.1 115.1 112.4 112.7 115.0 114.9

3.2 3.4 2.9 3.3 2.9 2.8 2.9 3.0 3.1

115.6 113.6 115.6 113.8 112.5 112.5 112.1 112.0 114.4

116.1 114.1 115.9 116.1 113.4 112.9 115.5 112.7 115.1

117.9 115.6 116.5 116.8 114.5 114.5 115.8 113.1 116.4

3.3 3.5 3.2 3.6 3.0 4.3 3.7 2.8 3.4

115.2 114.2 113.9 113.9 114.0 112.1 113.3 113.3 114.4

116.1 115.0 114.6 114.8 114.9 113.1 113.9 113.8 115.2

3.2 3.4 3.1 3.3 2.8 3.3 3.3 2.9 3.1

Index numbers(a) March qtr 2001

June qtr 2001

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia

112.0 111.1 110.7 110.5 111.9 109.3 109.5 111.6 111.4

112.7 112.1 111.1 111.0 112.8 109.8 109.7 112.1 112.1

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia

114.1 111.7 112.9 112.7 111.2 109.8 111.7 110.0 112.6

114.5 112.7 114.2 113.0 111.5 111.2 111.7 110.3 113.3

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Australia

112.5 111.2 111.2 111.1 111.8 109.5 110.3 110.6 111.7

113.1 112.2 111.9 111.6 112.5 110.3 110.5 111.0 112.4

September qtr 2001

PRIVATE

PUBLIC

ALL SECTORS 114.5 113.6 113.0 112.6 113.2 111.5 111.6 112.6 113.6

(a) Base of each index: September quarter 1997 = 100.0. Source: Wage Cost Index, Australia (6345.0).

For Australia, the annual wages growth to March 2001 was greater than the annual growth to March 2002 (3.7% compared to 3.1%). In both periods, annual wages growth for Professionals (4.3% to March 2001 and 3.5% to March 2002) was greater than the growth for other occupations. As shown in graph 6.49, in March 2002 Advanced clerical and service workers (2.4%) and Elementary clerical and service workers (2.5%) recorded the lowest annual growth rates.

Annual growth by industry is shown in graph 6.50. Although the annual growth rate of the WCI was lower to March 2002 than for the previous year for some industries, the rate of growth in wages increased in Mining, Electricity, gas and water supply, Finance and insurance, Health and community services, and Personal and other services. For the 12 months to March 2002, Electricity, gas and water supply had the highest rate of wages growth (4.6%). Transport and storage had the lowest rate of wages growth, of 2.4% for the 12 months to March 2002.

Chapter 6 — Labour

181

6.49 TOTAL HOURLY RATES OF PAY(a), By occupation(b) Managers and administrators Professionals Associate professionals Tradespersons and related workers Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers All occupations

Mar 2001 Mar 2002

2.0

2.5

3.0 3.5 % change(c)

4.0

4.5

(a) Excluding bonuses. (b) Classified according to the Australian Standard Classification of Occupations (ASCO). (c) Percentage change since corresponding quarter of previous year. Source: Wage Cost Index, Australia (6345.0).

6.50 TOTAL HOURLY RATES OF PAY(a), By industry(b) Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services 2.0

Mar 2001 Mar 2002

2.5

3.0

3.5 4.0 % change(c)

4.5

5.0

(a) Excluding bonuses. (b) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). (c) Percentage change since corresponding quarter of previous year. Source: Wage Cost Index, Australia (6345.0).

Non-wage benefits Among the most common types of non-wage benefits received by employees are superannuation, holiday leave, sick leave and long-service leave. Data on these employment benefits are collected in the Survey of Employee Earnings, Benefits and Trade Union Membership, covering the nature and type (but not the value) of benefits. These data are used to monitor the level of non-wage costs in employment.

In August 2001, 98% of the 5,454,800 full-time employees received one or more of the standard employment benefits in their main job. In comparison, 77% of the 2,317,300 part-time employees received one or more standard employment benefits. As shown in graph 6.51, superannuation coverage increased from 72% of all employees in 1991 to 90% in 2001 (see the next section for further information). During the same period, there has was a decline in the proportion of employees entitled to paid holiday or sick leave (80% of all employees in 1991 to 73% in 2001).

182

Year Book Australia 2003

6.51 EMPLOYEES IN MAIN JOB, By type of benefit received % 100

Long-service leave Superannuation Holiday leave Sick leave

87

73

60 1991

1993

1995

1997

1999

2001

Source: Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0); Trade Union Members, Australia (6325.0).

Full-time and part-time public sector employees were more likely to be entitled to benefits than their private sector counterparts (graph 6.52). The differences between public and private sector employees were much smaller for full-time employees than for part-time employees. Part-time private sector employees were most likely to receive superannuation (73%), followed by sick and holiday leave (both at 30%), and 26% were entitled to long-service leave. One-quarter of this group of employees were not entitled to any benefits. Part-time employees in the public sector were more likely to receive a range of employee benefits, with 90% entitled to superannuation and approximately 60% entitled to each of the other benefits (59%, 61% and 56%).

For all occupations, the proportion receiving sick leave was less than the proportion receiving superannuation benefits. However, there was considerable variation among the occupations. For most occupations, more than 90% of employees receives superannuation benefits in their main job (graph 6.53). The exceptions were Elementary clerical, sales and service workers with 74% and Labourers and related workers with 80%. These two occupations were also less likely to receive sick leave (43% and 53%) than other occupations. The incidence of entitlement to superannuation and sick leave is linked to the level of skill, with higher skilled occupations having a higher level of coverage for both superannuation and sick leave than lower skilled occupations.

6.52 EMPLOYEES RECEIVING A BENEFIT — August 2001 % 100

Full-time public Part-time public Full-time private(a) Part-time private(a)

80 60 40 20 0 Superannuation

Holiday leave

Sick leave

Long-service leave

No standard benefit

(a) There were 35,200 persons for whom sector of main job could not be determined. These persons are included in the private sector. Source: Employee Earnings, Benefits and Trade Union Membership, Australia, August 2001 (6310.0).

Chapter 6 — Labour

183

6.53 SUPERANNUATION AND LEAVE ENTITLEMENTS, By occupation(a) — August 2001 Managers and administrators Professionals Associate professionals Tradespersons and related workers Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers All occupations

Entitled to superannuation Entitled to sick leave

40

60

80

100

% (a) Classified according to the Australian Standard Classification of Occupations (ASCO). Source: Employee Earnings, Benefits and Trade Union Membership, Australia, August 2001 (6310.0).

Superannuation Under the Superannuation Guarantee introduced in 1992, employers are obliged to make superannuation contributions on behalf of most employees. As seen in graph 6.51, this has resulted in an increase in superannuation coverage provided by employers. There are some exempt employees: for example, employers are not obliged to contribute to superannuation for employees aged less than 18 years who are working not more than 30 hours a week, or for employees with low earnings. Young part-time employees (aged 15–19) are often exempt employees under the Superannuation Guarantee legislation. This is reflected in estimates of superannuation coverage for August 2001 — 36% of males and 41% of females in this age group received superannuation benefits in their job.

The lower coverage of superannuation for young employees is also the result of more young employees working in industries and occupations with lower wages (see table 6.16). Graph 6.54 presents the proportion of employees entitled to superannuation in August 2001. Generally, the proportion of male and female full-time employees entitled to superannuation was similar, with females having slightly higher coverage in the 20–24 year and 55–59 year age groups. The proportion of male and female full-time employees entitled to superannuation was higher than that of their part-time counterparts. While 75% of part-time employees receive superannuation benefits, 96% of full-time employees were entitled to superannuation benefits.

6.54 ENTITLED TO SUPERANNUATION — August 2001 % 100 80 60 Full-time male employees Part-time male employees Full-time female employees Part-time female employees

40 20 15–19

20–24

25–34

35–44 45–54 Age group (years)

55–59

60–64 65 and over

Source: Employee Earnings, Benefits and Trade Union Membership, Australia, August 2001 (6310.0).

184

Year Book Australia 2003

Male and female full-time employees receive superannuation benefits from their employer at the same rate, but part-time males are less likely to receive superannuation (63%) than their female counterparts (80%). In each age group, females working part-time were more likely to be entitled to superannuation benefits than males working part-time. In the 65 and over age group, 66% of females and 42% of males were entitled to superannuation benefits, although this age group represented less than 1% of the population (73,700 employees).

Other employee benefits Similar proportions of employees are entitled to paid sick leave and paid holiday leave (72%). However, long-service leave is less commonly offered by employers (61.8% of employees) (table 6.56). The total number of employees receiving leave benefits fell between 1996 and 2001, although full-time employees were still more likely to receive these benefits than part-time employees. Sick and holiday leave benefits were available to 87% of full-time employees and 75% received long-service leave. The proportion of part-time employees receiving benefits rose between 1996 and 2001, from 31% to 34% for those receiving holiday and sick leave benefits and from 26% to 31% for those receiving long-service leave benefits.

The degree of superannuation coverage provided by employers continued to increase between 1996 and 2001, and across industries. In 2001, superannuation was provided to 99% of persons employed in Mining, while 80% were covered in Accommodation, cafes and restaurants and 77% in Retail trade (graph 6.55). Accommodation, cafes and restaurants, and Retail trade also have the lowest average earnings (see graph 6.45).

Fewer females are entitled to leave benefits (i.e. sick leave and/or holiday leave) in their main job. However, full-time females are more likely to receive leave benefits than full-time males (90% compared to 86%), and part-time females are more likely to receive leave entitlements than part-time males (41% compared to 19%).

6.55 EMPLOYEES ENTITLED TO SUPERANNUATION IN MAIN JOB, By industry(a) Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services 70

1996 2001

80

90 %

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). Source: Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0).

100

Chapter 6 — Labour

6.56

185

EMPLOYEES IN MAIN JOB(a), By type of benefit received Working full-time Units

August 1996

% % % % %

93.4 87.0 86.7 77.3 3.8

’000

3 385.4

August 2001

Working part-time

All employees

August 1996

August 2001

August 1996

August 2001

95.5 85.9 85.7 73.7 2.8

52.5 15.6 15.6 11.4 43.6

63.0 18.2 19.1 16.5 34.7

88.0 77.5 77.3 68.5 9.1

90.3 75.1 75.1 64.5 7.9

3 515.0

518.0

669.3

3 903.3

4 184.3

MALES Superannuation Paid holiday leave Paid sick leave Paid long-service leave No benefits Total number of employees

FEMALES Superannuation Paid holiday leave Paid sick leave Paid long-service leave No benefits Total number of employees

% % % % %

94.9 90.3 90.0 80.9 2.3

97.1 90.1 90.2 77.7 1.4

70.7 36.6 36.7 30.8 26.6

80.2 40.5 41.2 36.3 18.2

84.3 66.8 66.7 59.0 12.9

89.3 67.3 67.7 58.6 9.1

’000

1 777.2

1 939.8

1 381.6

1 648.0

3 158.8

3 587.8

% % % % %

93.9 88.1 87.9 78.5 3.3

96.1 87.4 87.3 75.1 2.3

65.8 30.9 30.9 25.5 31.2

75.2 34.1 34.8 30.5 22.9

86.0 72.7 72.6 64.3 10.8

89.9 71.5 71.7 61.8 8.4

’000

5 162.6

5 454.8

1 899.6

2 317.3

7 062.1

7 772.2

PERSONS Superannuation Paid holiday leave Paid sick leave Paid long-service leave No benefits Total number of employees

(a) Excludes persons attending school. Source: Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0).

Industrial relations Industrial 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. the Australian Industrial Relations Commission). Historically, governments have regulated the Australian labour market, with any changes to the structure or processes underpinning the industrial relations environment generally following social change and adjustment in the Australian economy. For most of the last century, highly centralised Commonwealth and state tribunal-based systems of conciliation and arbitration shaped employee–employer relationships. However, since the late 1980s, the industrial relations environment in Australia has undergone significant change, and is now characterised by more decentralised arrangements. The field of industrial relations is complex and diverse, and is not easily measured for statistical purposes. The ABS collects information on a

number of topics to provide an insight into the state of the industrial relations environment, including trade union membership and industrial disputes.

Industrial disputes An industrial dispute is a state of disagreement over a particular issue or group of issues between employees and employers. 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 the loss of 10 working days or more at the establishments where the stoppage occurred. Working days lost refers to working days lost by workers directly or indirectly involved in disputes at those establishments. Directly involved employees are those who actually participated in the dispute, while indirectly involved employees are those who were stood down at the establishment where the stoppages occurred, but who were not themselves parties to the dispute.

186

Year Book Australia 2003

6.57 INDUSTRIAL DISPUTES million 7

Working days lost Number of employees

5

4

2

0 1951

1961

1971

1981

1991

2001

Source: Industrial Disputes, Australia (6321.0).

The number of working days lost per year, and the number of employees involved, have fluctuated from year to year, but have demonstrated a significant downward trend over the last two decades (graph 6.57). While there has been a downward trend in the levels of industrial disputation, certain years have gone against the trend, namely 1988, 1991 and 1996. The number of working days lost in 2001 was 393,100, a fall of over 16% on 2000 (table 6.58). Over the same period the total number of employees involved in industrial disputes (either directly or indirectly) fell by over 30% to 225,700. While the numbers of working days lost have been declining over the last six years, the number of disputes has actually been increasing. This indicates that the relative size of disputes, in terms of the length of the dispute or the numbers involved, is decreasing. For example, in 1996 there was an average of 1,710 working days lost per dispute, while in 2001 there was an average of 582 working days lost per dispute.

6.58

1996 1997 1998 1999 2000 2001

INDUSTRIAL DISPUTES

Disputes no. 543 447 519 731 698 675

Employees involved ’000 577.7 315.4 348.4 461.1 325.4 225.7

Working days lost ’000 928.5 534.2 526.3 650.5 469.1 393.1

Source: Industrial Disputes, Australia (6321.0).

Table 6.59 shows that the number of working days lost per thousand employees has declined over the last five years, although there have been fluctuations in a number of industries. Since 1996 the number of working days lost per thousand employees has fallen from 131 to 50. However, Manufacturing has gone against this trend, increasing from 216 to 406 working days lost per thousand employees. Coal mining continues to be the industry most affected by industrial disputation, with a total of 956 working days lost per thousand employees; however, this is considerably lower than the 7,171 working days lost per thousand employees recorded in 1996. The Construction industry, and the Education; Health and community services industry have fluctuated from year to year, although they have been generally falling. Construction fell from 892 to 275 working days lost per thousand employees between 1996 and 2001.

Chapter 6 — Labour

6.59

187

WORKING DAYS LOST PER THOUSAND EMPLOYEES(a)

Industry

Mining Coal Other Manufacturing Metal products; Machinery and equipment Other Construction Transport and storage; Communication services Education; Health and community services Other industries(b) All industries

1996 ’000

1997 ’000

1998 ’000

1999 ’000

2000 ’000

2001 ’000

7 171 73

4 206 19

2 732 23

1 445 35

1 933 60

956 33

146 70 892 43 187 17

189 107 290 101 73 11

71 106 524 114 57 7

282 120 381 42 165 7

170 121 234 52 79 9

258 148 275 27 8 7

131

75

72

87

61

50

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). (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: Industrial Disputes, Australia (6321.0).

Trade union membership A trade union is defined as an organisation consisting predominantly of employees, of which the principal activities include the negotiation of rates of pay and conditions of employment for its members. In August 2001 there were 1,902,700 employees who were trade union members in their main job. As shown in table 6.60, this represents 24.5% of all employees, down from 24.7% in August 2000. The public sector has a higher rate of unionisation, with 47.9% of employees having trade union membership, compared to 19.2% in the private sector. A higher proportion of males than females are trade union members (26.0% to 22.7%). Trade union membership in Australia experienced growth throughout much of the 20th century, peaking at 61% in 1962 (graph 6.61). Between 1962 and 1970 trade union membership declined rapidly. This was followed by increasing membership during the 1970s. However, since then the proportion of employees who were trade union members has steadily declined.

6.60

Sector

Public Private All sectors

TRADE UNION MEMBERSHIP — August 2001 Males % 51.9 21.2 26.0

Females % 44.5 16.6 22.7

Persons % 47.9 19.2 24.5

Source: Employee Earnings, Benefits and Trade Union Membership, Australia, August 2001 (6310.0).

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 labour market, for example, declines in employment levels in traditionally highly unionised industries and the emergence of industries that are not highly unionised. Another factor in the decline in trade union membership is the increases in part-time and casual employment which historically have been less unionised than full-time employment. Graph 6.62 shows that the proportion of part-time employees has increased from 20% in 1988 to 28% in 2001. Over this same period the proportion of full-time and part-time employees who were trade union members has decreased, with trade union membership of full-time employees declining from 46% to 27%, and trade union membership of part-time employees declining from 25% to 18%.

188

Year Book Australia 2003

6.61 TRADE UNION MEMBERSHIP % 70 60 50 40 30 20 1912

1921

1931

1941

1951

1961

1971

1981

1991

2001

Source: Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0); Labour Report, 1912–1958; Trade Union Members, Australia (6235.0).

6.62 TRADE UNION MEMBERSHIP, Full-time and part-time employees % 50 38 25 13

Trade union membership of full-time employees Trade union membership of part-time employees Part-time employment

1988

1991

1994

0 1997

2000

Source: Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0); Labour Force, Australia (6203.0).

6.63 EMPLOYEES WHO WERE TRADE UNION MEMBERS, By industry(a) Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services Total

1996 2001

0

20

40 %

60

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). Source: Employee Earnings, Benefits and Trade Union Membership, Australia (6310.0).

80

Chapter 6 — Labour

The level of trade union membership varies considerably across industries, with Electricity, gas and water supply (48%), Education (44%) and Government administration and defence (41%) being the most unionised (graph 6.63). The least unionised industries were Agriculture, forestry and fishing (6%), Property and business services (8%) and Wholesale trade (9%). Between 1996 and 2001, 16 of the 17 industries experienced a drop in their rate of unionisation. The largest falls occurred in the more unionised industries, with the proportion of employees who were trade union members in Communication

189

services falling from 62% to 39%, Electricity, gas and water supply from 65% to 48%, Finance and insurance from 34% to 22%, and Transport and storage from 48% to 39%. Over this period, the rate of union membership increased marginally in Personal and other services, from 29% to 30%. While the fall in the proportion of trade union members in Communication services was greater than in Manufacturing, the fall in Manufacturing had a more significant impact on the overall number of trade union members, as Manufacturing has a much higher level of employment.

190

Year Book Australia 2003

Bibliography ABS publications and standard data services Australian and New Zealand Standard Industrial Classification (ANZSIC) (1292.0) Australian Standard Classification of Occupations (ASCO) Second Edition (1220.0) Average Weekly Earnings, Australia (6302.0) Education and Work, Australia (6227.0) 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) Job Search Experience, Australia (6222.0) Job Vacancies, Australia (6354.0) Labour Force, Australia (6203.0) Labour Force Experience, Australia (6206.0) Labour Report, 1912 to 1958 Labour Statistics: Concepts, Sources and Methods, 2001 (6102.0), available in the Statistical Concepts Library on the ABS web site Locations of Work, Australia (6275.0) Trade Union Members, Australia (6325.0) Wage Cost Index, Australia (6345.0) Working Arrangements, Australia (6342.0) Work-Related Injuries, Australia (6324.0)

Web sites Centrelink, Commonwealth Department of Employment, Workplace Relations and Small Business (DEWRSB), International Labour Organisation (ILO),

7

Income and welfare Introduction

193

Household income and expenditure

193

Aggregate income and expenditure

193

Income distribution

194

Household expenditure

196

Article — An ageing Australia

197

Services provided by the Department of Family and Community Services

199

Introduction to the income support system

199

Income support programs

201

Other support programs

209

Aged care programs of the Department of Health and Ageing

212

National Strategy for an Ageing Australia

212

Residential Aged Care Program

212

Community care programs

213

Services provided by the Department of Veterans’ Affairs

215

Compensation Program

216

Health Program

222

Vietnam Veterans’ Counselling Service

224

The Office of Australian War Graves

224

Bibliography

225

Chapter 7 — Income and welfare

Introduction The economic wellbeing or standard of living of individuals and families 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 cash income received from wages and salaries or investments, or as income support from government. Other factors can also contribute to the level of consumption of goods and services, including using personal resources such as savings, services such as aged care, respite care and child care from government and welfare organisations, and assistance from family and friends. Government programs aim to help the economically disadvantaged to achieve social and economic outcomes and to participate in society. Such programs include those of the Department of Family and Community Services (FaCS), which provides income security for the retired, people with disabilities, carers, unemployed people, students, families with children, and Indigenous Australians. Other departments provide income support for other special groups, such as war veterans, war widows and their families, and students. In addition to cash income, government programs also help those with low incomes to meet payments for housing through rent assistance, and for a range of goods and services through pensioner concession and health cards, and other services aimed at helping people in personal and social hardship. Other types of

programs 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 and on the levels and patterns of expenditure on consumer goods and services. Further information is provided on the main income support programs of the Commonwealth Government, describing the eligibility requirements, numbers of beneficiaries and government expenditure on these programs. It covers these in four sections: Income support programs of the FaCS; Community support programs of the Department of Family and Community Services; Aged care programs of the Department of Health and Ageing; and services provided by the Department of Veterans’ Affairs.

Household income and expenditure Aggregate income and expenditure An overview of the income, expenditure and wealth of Australian residents is available from the Australian System of National Accounts. Selected aggregates relating to households are presented in graph 7.1. Between 1992–93 and 2000–01, gross household disposable income per capita and household final consumption expenditure per capita have been steadily growing. More information is available in Chapter 29, National accounts.

7.1 HOUSEHOLD INCOME, EXPENDITURE AND NET SAVING, Current price (per capita) $'000 25

Gross disposable income Final consumption expenditure Net saving

20 15 10 5 0 1992–93

1994–95

193

1996–97

Source: Australian System of National Accounts (5204.0).

1998–99

2000–01

194

Year Book Australia 2003

Income distribution Aggregate measures of household income and expenditure provide a broad picture of the economic wellbeing of Australians, but it is also of interest to examine the extent to which economic wellbeing differs between different groups within society. The sources used to compile the national accounts usually do not provide the detail needed to undertake such analysis. Instead, data need to be collected in household surveys such as the surveys of income and expenditure periodically conducted by the ABS. However, the surveys do not collect information from people living in institutions such as boarding houses, nursing homes, gaols, etc. Tables 7.2 and 7.3 provide a number of indicators of income distribution derived from the Survey of Income and Housing Costs. The preparation of measures to describe differences in economic wellbeing presents a number of conceptual and practical challenges. The main determinant of a person’s economic wellbeing is usually the income to which they have access, either directly or as a member of a family in which income is shared. But some people have access to savings from past income or other sources of wealth, and low levels of income may not imply low levels of economic wellbeing. Similarly, proprietors of unincorporated businesses who report low or even negative business income may not be experiencing low levels of economic wellbeing. Their business income is defined as their net profit (or loss), but the business may expect, and be financed to cope with, a period of low income such as that associated with a poor season or temporary high costs flowing from business start up or expansion. Studies have shown that households reporting very low incomes also often report expenditure levels that are higher than households with slightly higher incomes. Consequently, in the following tables, low income households are defined to include those falling in the 10–30% range of the income distribution and exclude those falling in the bottom 10%. Income can take a number of forms, some of which are difficult to quantify in household surveys. To date, ABS household surveys have

usually been restricted to collecting cash income data and have not regularly collected comprehensive information on income received in the form of fringe benefits (including employer contributions to employee superannuation), nor the notional income that can be conceived of as being received by people who own their homes. Relative economic wellbeing also reflects relative economic needs. Most importantly, people sharing accommodation will not normally need as much income to attain a given standard of living as people living alone. In order to reflect the sharing of income between family members and to enable adjustment for the lower economic needs of people sharing accommodation, the following analysis is on an equivalised income per household basis rather than an income per capita basis. Equivalising income estimates is a means of standardising them to take account of the varying size and composition of households. Table 7.2 shows some of the measures more commonly used to assess the distribution of income. Most of the movements have been small, showing little or no overall change in the level of income inequality among households during the period 1994–95 to 1997–98. Real income increased for all groups of households during the period. Real income of the low income households increased by 5%, with a 5% increase for the middle income group and 6% for the high income group. Similarly there have not been significant changes in the share of income received by high and low income households. The Gini coefficient (a commonly used summary measure of income distribution) also shows minimal change. The Gini coefficient is a single number that summarises the distribution. It takes values between zero and one (0 and 1) — higher values indicate greater inequality in the distribution of income; lower values indicate greater equality. While a little lower during the intervening years the coefficient in both 1994–95 and 1997–98 was the same at 0.32. Table 7.2 spans the period 1994–95 to 1997–98. Estimates for more recent periods are currently under review (see the article ‘Household Income and its Distribution’ in Australian Economic Indicators, April 2001(1350.0).

Chapter 7 — Income and welfare

7.2

195

HOUSEHOLD EQUIVALISED DISPOSABLE INCOME(a) Units

1994–95

1995–96

1996–97

1997–98

Mean weekly income for selected groups of households(b) Low income(c) Middle income(d) High income(e)

$ $ $

408 687 1 556

408 680 1 518

427 707 1 561

427 720 1 642

Share of total income received by households with Low incomes(c) High incomes(e)

% %

10.2 39.1

10.4 38.6

10.5 38.3

10.2 39.2

ratio

0.320

0.315

0.309

0.322

Gini coefficient(f)

(a) All estimates have been adjusted using the Organisation for Economic Co-operation and Development equivalence scales. (b) Adjusted for changes in the consumer price index; values presented in 1997–98 dollars. (c) Households in the 2nd and 3rd income deciles after being ranked by their equivalised income. (d) Households in the 3rd quintile (5th and 6th deciles) after being ranked by their equivalised income. (e) Households in the top income quintile (9th and 10th deciles) after being ranked by their equivalised income. (f) A summary measure of income distribution that lies between 0 and 1. As the measure approaches the value of 1, income inequality increases, and vice versa. Source: Measuring Australia’s Progress (1370.0).

low income group (those in the second and third lowest deciles of the income distribution) and under-represented (1%) in the highest income group (those with income in the top two deciles of the income distribution). Possibly associated with their age and employment circumstances, couples without children were over-represented in the highest income group and under-represented in the middle of the income distribution. Lone-person households were over-represented in the lowest income group and many would have been receiving the age pension.

Comparing households of various types in low and high income groups helps to characterise the types of households most likely to be economically disadvantaged. Households are classified in several ways in table 7.3, presenting data for 1997–98. The patterns shown could be expected to be broadly representative of the patterns seen throughout the 1990s. There are some substantial differences in the representation of certain household composition types in low and high income groups. One-parent families in one-family households with dependent children, for example, were over-represented (11%) in the 7.3

HOUSEHOLD CHARACTERISTICS OF SELECTED INCOME GROUPS(a) — 1997–98

Household composition One-parent family in one-family households with dependent children Couples in one-family households Couples without children Couples with dependent children only Other couples in one-family households Other family households Non-family households Lone persons Group households Total Principal source of household income Wages and salaries Own unincorporated businesses Government pensions and allowances Other sources Total(b) Average number of earners(c)

Units

Low income (2nd and 3rd deciles)

Middle income (5th and 6th deciles)

High income (9th and 10th deciles)

All households

%

11

8

1

7

% % % %

25 18 5 4

22 34 14 6

31 18 17 6

23 25 12 6

% % %

36 1 100

13 5 100

18 7 100

23 4 100

% % % % %

13 4 79 5 100

66 6 15 13 100

86 8 1 6 100

54 6 30 8 100

no.

0.3

1.2

1.9

1.1

(a) Households have been ranked from high to low income groups according to their equivalised disposable income. (b) Total includes households with zero or negative income. (c) Includes persons receiving income from wages or salary or have their own unincorporated business. Source: Measuring Australia’s Progress, 2002 (1370.0).

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Year Book Australia 2003

In contrast, while significant proportions of households in the lowest and highest income groups were couples in one-family households with dependent children only (18% in both groups), households of this type were over-represented among middle income households (34% of all middle income households). In terms of the principal source of household income, households in the low income group (i.e. with income in the second and third lowest deciles of the income distribution) were, as might be expected, most likely to have government pensions and allowances as their major source of income (79% of households). In sharp contrast to those in the low income group, most households (93%) in the highest income group had employment-related income (from wages or salaries or their own unincorporated business) as their principal source of income. The number of earners (i.e. with employment-related income) present in a household is an important determinant of household income. Clearly those with two or more earners will tend to have higher incomes than those with only one earner. In 1997–98, the average number of earners per household in the low income group was 0.3 persons, which contrasts with 1.2 and 1.9 earners per household in the middle and high income groups respectively.

Household expenditure People’s income provides one indicator of their standard of living. However, it 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. In these cases, the levels and patterns of household expenditure can provide an alternative indicator of living standards. The latest household expenditure information available is from the 1998–99 Household Expenditure Survey. This was the sixth major survey of its kind undertaken by the ABS. It 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, person or income unit, then it is difficult to attribute the use of both shared items such as accommodation and household goods, and of expenditure on items consumed by others, such as food.

In 1998–99, Australian households spent an average of $699 per week on goods and services (table 7.4). The level and pattern of expenditure differ 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 1998–99, households in the lowest income quintile (i.e. the 20% of households with the lowest incomes) spent $344 per week on goods and services, compared with $1,171 spent by households in the highest income quintile. Households in these quintiles had average (mean) gross weekly incomes of $156 and $1,109 respectively. Since the Household Expenditure Survey does not collect information on all forms of income and expenditure, and since 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 quintile and the second quintile, 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. Other households may take out loans in the expectation of higher incomes at a later time. 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 draw on economic resources other than income to maintain their standard of living, at least in the short term. 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 19.4% of the expenditure on goods and services of households in the lowest income quintile, compared to 16.6% for households in the highest income quintile. In general, the proportion spent on housing, household services, domestic fuel and power and tobacco products also declined as household income rose, while the proportion spent on transport, recreation, clothing and footwear, and alcohol increased.

Chapter 7 — Income and welfare

7.4

197

HOUSEHOLD EXPENDITURE AND CHARACTERISTICS — 1998–99 Gross weekly income quintile group

Upper boundary of quintile group Mean gross weekly household income Mean age of reference person Average number of persons in the household Household composition (% of households) Couple, one family Couple only Couple with dependent children only Other couple, one-family households One-parent, one family with dependent children Other family households Lone person Group households Total Expenditure (as % of total expenditure) Current housing costs (selected dwelling) Domestic fuel and power Food and non-alcoholic beverages Alcoholic beverages Tobacco products Clothing and footwear Household furnishings and equipment Household services and operation Medical care and health expenses Transport Recreation Personal care Miscellaneous goods and services Total Average weekly expenditure on all goods and services Estimated number of households

Units $ $ years

Lowest 20% 300 156 59

Second quintile 550 411 53

Third quintile 881 709 43

Fourth quintile 1 364 1 109 42

Highest 20% .. 1 982 43

All households .. 874 48

no.

1.51

2.34

2.75

3.05

3.33

2.60

% % %

18.1 5.2 1.6

38.8 13.8 6.1

20.0 31.1 9.6

23.4 37.0 14.8

22.5 31.8 26.8

24.6 23.8 11.8

% % % % %

7.3 1.7 64.9 1.3 100.0

14.0 4.8 19.0 3.5 100.0

7.0 7.2 21.6 3.4 100.0

2.6 6.4 11.3 4.6 100.0

1.1 6.8 4.8 6.2 100.0

6.4 5.4 24.2 3.8 100.0

% % % % % % % % % % % % % %

16.2 3.7 19.4 2.1 1.9 3.7 6.4 7.9 5.0 14.0 10.9 2.0 6.9 100.0

15.0 3.3 20.3 2.5 2.2 3.8 6.1 6.7 5.0 15.1 11.9 1.9 6.2 100.0

15.6 2.7 18.9 2.7 1.8 3.8 6.0 5.9 4.4 16.0 12.2 1.8 8.2 100.0

13.8 2.3 18.0 2.9 1.4 4.6 5.5 5.7 4.7 18.3 12.2 2.0 8.4 100.0

12.0 2.0 16.6 3.4 1.1 5.5 6.3 5.2 4.5 17.8 14.2 2.1 9.3 100.0

13.9 2.6 18.2 2.9 1.5 4.6 6.0 5.9 4.6 16.9 12.7 2.0 8.2 100.0

$ ’000

344 1 404.3

477 1 441.9

648 1 425.3

853 1 425.9

1 171 1 425.5

699 7 122.8

Source: Household Expenditure Survey, Australia: Detailed Expenditure Items, 1998–99 (6535.0).

An ageing Australia Like many other developed countries, Australia is experiencing fundamental changes in its demographic structure. This is characterised by three significant trends: Growing longevity — Life expectancy at birth has increased from 66.1 years in 1947 to 76.2 years in 1999 for men, and from 70.6 years to 81.8 years over the same period for women. These trends have been driven by lower mortality rates at all ages.

Declining fertility — In 1976, the total fertility rate (TFR) fell below replacement level (2.1 births per woman) and has fallen even lower since. A record low of 1.7 births per woman occurred in 1999, and the TFR is predicted to fall further still. ‘Baby boomer’ progression — The peak of this large generation (born between 1946 and 1966) will be entering the over 65 age group between 2011 and 2031.

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Year Book Australia 2003

These factors have contributed to an ageing population, which in turn may be categorised in two ways. The term ‘numerical ageing’ refers to the absolute increase in the number of people aged over 65 years. In the Australian context, the number of people aged over 65 is expected to grow from 2.3 million in 1999 to between 6.2 million and 7.9 million by 2051. Alternatively, ‘structural ageing’ refers to the relative increase, or growing proportion, of older people within the total population (see graph 7.5). This reflects the impact of falling fertility on population age structures; as the proportion of people aged under 15 falls, the proportion of Australians aged over 65 years increases. The proportion of people aged over 65 years is expected to grow from 12% of the population in 1999 to around a quarter of the population by 2051. The over 85 age group is expected to almost quadruple as a proportion of the population, from 1.3% today to around 5% by 2051. On the other hand, the proportion of the population currently considered to be of labour force age (those aged between 15 and 64) is expected to fall from 67% in 1999 to around 59% by 2051.

While any forecast in relation to future population size and structure requires assumptions about future levels of mortality, fertility and immigration, it appears that Australia’s population outlook over the next few decades is likely to be dominated by structural ageing. Ageing presents challenges and opportunities for individuals, families, communities, businesses and governments. The social dimensions may include changes to caring and disability support needs, housing demands and recreation patterns. The economic dimensions are likely to be equally complex. Budget Paper No. 5, Intergenerational Report, released as a part of the 2002–03 Commonwealth Budget, provides a detailed overview of the long-term sustainability of government finances in the context of structural ageing. The report shows that fiscal pressure on the Commonwealth Budget is expected to build, with the most significant impact first emerging in around 15 years from now. By 2041–42, the gap between spending and revenue is expected to reach 5% of gross domestic product in the absence of any major policy shifts (graph 7.6).

7.5 POPULATION IN AGE GROUPS % 80 60 0–14 years 15–64 years 65–84 years 85 years and over

40 20 0

1951

1971

1991

2011

2031

2051

Source: Australian Historical Population Statistics — on AusStats (3105.0.65.001); Population Projections, Australia, 1999–2101 (3222.0).

Chapter 7 — Income and welfare

199

7.6 PROJECTION OF COMMONWEALTH GOVERNMENT FISCAL PRESSURE, Proportion of gross domestic product % 2.0 0.0 –2.0 –4.0 –6.0 1999–00

2006–07

2013–14

2020–21

2027–28

2034–35

2041–42

Source: Department of the Treasury, 'Budget Paper No. 5, Intergenerational Report 2002–03'.

A key to addressing this challenge lies in managing government costs in the areas of health and welfare, as well as maintaining strong economic growth. Critical to this will be future rates of workforce participation, particularly among older workers. Greater workforce participation among older Australians may contain government welfare outlays by improving self-provision for retirement and reducing the risk of older Australians entering long-term income support. In addition, boosting workforce participation rates among older Australians is also expected to help sustain economic growth by offsetting the expected decline in labour force supply.

Services provided by the Department of Family and Community Services (FaCS) Introduction to the income support system The Australian income support system provides financial assistance to a variety of groups, including families, job seekers, the aged, people with a disability, carers, mature age people, students and Indigenous Australians. Almost two-thirds of Australian families with children or dependants benefit from family assistance and

In many ways the economic and social opportunities and challenges of projected population ageing are inseparable. Public attitudes towards older Australians, either within the workplace or in broader aspects of community life, will be critical to how our society responds to structural ageing. Since most other developed countries are much further down the ageing track than Australia, we are fortunately well placed to learn about how other communities deal with the pressures and benefits of adapting to an ageing population.

4.4 million individuals are direct beneficiaries of the FaCS portfolio’s income support payments. Recent and ongoing reforms to the income support system in Australia aim to improve social and economic participation, while retaining a strong and effective safety net for people unable to support themselves. The main income support payments provided by the Commonwealth for the financial years 1998–99 to 2001–02 are listed in table 7.7. Details of the payments in effect in the 2001–02 financial year, together with associated statistics, are presented in this chapter.

200

Year Book Australia 2003

7.7

INCOME SUPPORT PAYMENTS(a) 1998–99 $’000

1999–2000 $’000

2000–01 $’000

2001–02 $’000

Family assistance Family Allowance(b) Family Tax Payment(b) Family Tax Benefit(b) Maternity Allowance(c) Double Orphan Pension

6 391 490 546 217 .. 167 085 1 725

6 573 857 531 927 .. 195 809 1 779

–39 532 –2 286 10 076 463 217 899 1 977

–37 291 –3 348 10 927 703 216 887 1 976

Youth and student support Youth Allowance Austudy Student Financial Supplement Fares Allowance

1 843 498 287 173 259 745 690

2 002 830 253 870 290 681 569

2 101 915 249 258 161 510 644

2 213 719 280 794 500 967 525

.. 117 000 4 599

.. 164 447 11 050

1 037 137 –14 597 7 301

1 315 912 63 11 067

Labour market assistance Newstart Allowance Parenting Payment Mature Age Allowance Partner Allowance Widow Allowance Bereavement Allowance Pensioner Education Supplement Special Benefits

5 370 669 5 402 944 401 698 590 185 227 289 734 44 601 99 585

4 954 450 5 494 230 367 250 646 460 270 825 782 49 571 98 704

4 918 349 5 325 681 352 596 728 679 324 919 719 58 248 114 778

5 078 220 5 571 718 364 210 817 599 389 550 813 65 784 119 811

Support for people with a disability Disability Support Pension Mobility Allowance Wife Pension (DSP) Sickness Allowance

4 920 223 46 137 534 069 93 043

5 253 241 52 096 479 205 83 881

5 849 799 59 367 446 564 95 554

6 404 351 67 852 401 969 93 724

307 506 ..

369 723 412 334

480 944 533 247

595 810 645 722

Support for the aged Age Pension Aged Persons Savings Bonus One-off Payment to Seniors Self Funded Retirees’ Supplementary Bonus Widow Class B Pension Wife Pension (age)

13 569 056 .. .. .. 105 694 243 433

14 037 940 .. .. .. 89 849 240 751

15 616 477 1 581 231 536 581 582 828 84 296 233 080

16 665 653 23 723 (e)10 454 28 519 59 787 216 160

Total Special Appropriations(g)

41 825 371

42 926 761

51 753 433

53 118 246

Child care support Child Care Benefit(d) Child Care Cash Rebate(d) Child Care for eligible parents undergoing training(e)

Support for carers Carer Payment Carer Allowance(f)

(a) Outlays on Pensions, Allowances and Family Tax Benefits include expenditure on Rent Assistance. Details of Rent Assistance are included in ‘Chapter 8, Housing’. (b) Family tax benefit replaced Family Allowance and Family Tax Payment on 1 July 2000. (c) Maternity Allowance includes Maternity Immunisation Allowance. (d) Child Care Benefit commenced on 1 July 2000 and incorporated the Child Care Cash Rebate. (e) Not included in the Special Appropriations total as they are Other Administered Expenses. (f) Carer allowance was introduced on 1 July 1999. It combined Child Disability Allowance with Domiciliary Nursing Care Benefit, which was the responsibility of the Department of Health and Ageing. (g) Components do not add to total as some minor allowances and appropriation adjustments are excluded. Payments under the ‘State Grants Housing Act 1971’ (Cwlth) are included in the total. Source: Department of Family and Community Services.

Chapter 7 — Income and welfare

Most allowance types are adjusted once or twice a year in line with movements in the consumer price index (CPI) to maintain purchasing power. Pension payments are adjusted in line with the CPI and male total average weekly earnings (MTAWE), ensuring the single pension rate does not fall below 25% of MTAWE. Many income support payments are subject to income, assets and activity tests, to ensure that benefits are targeted to those in greatest need. Details of the rates in effect at 30 June 2002 are listed in table 7.8. Since September 1997, Centrelink has delivered most income support payments on behalf of FaCS. Centrelink is a statutory agency established to deliver a range of Commonwealth services to the Australian community. It operates under the Commonwealth Services Delivery Agency Act 1997 (Cwlth). Centrelink provides advice about payment entitlements, provides referrals to Centrelink specialist staff for additional assistance, and may refer customers to other departments, agencies or community organisations where appropriate. The Department of Veterans’ Affairs delivers the Service Pension to eligible veterans and their families. Numbers of income support customers referred to in this chapter generally relate to June of the reference year. These numbers are taken from extracts of administrative data as close to 30 June as possible. However, the dates of extracts can vary between payment types. All financial data refer to the full financial year.

Income support programs Family Assistance Family Assistance policies are formulated to provide income support to families to assist with the costs of raising children, including newborns, in a way that recognises the needs and choices of both single and dual income families.

201

Family Tax Benefit Part A helps people with the cost of raising dependent children. It is paid to families with children up to 21 years and young people between 21 and 24 who are studying full-time (and not receiving Youth Allowance or a similar payment). Family Tax Benefit Part B provides extra assistance for families with only one main income earner, particularly those with children under five. It is paid to families for children up to the age of 16 and children aged between 16 and 18 years who are studying full-time. During 2001–02, Family Tax Benefit Part A was paid to 1.8 million families to provide support for 3.5 million children, and Family Tax Benefit Part B was paid to 1.2 million families to provide support for 2.3 million children. Both payments are administered by the Family Assistance Office and are available as a direct payment from Centrelink, either fortnightly or as a lump sum, or via tax instalment deductions or an end of year lump sum payment through the tax system. Both payments are subject to income tests. Some Family Tax Benefit recipients can receive fortnightly payments for part of the tax year with the balance as a lump sum at the end of the tax year. Maternity Allowance is a one-off lump sum paid at around the time of the birth of a baby, designed to help meet the costs associated with the birth. Claimants must be eligible for Family Tax Benefit Part A. There is also a Maternity Immunisation one-off payment. To be eligible for this, claimants must have been paid Maternity Allowance or be eligible for Family Tax Benefit Part A. Double Orphan Pension is a not means tested and is a payment for children with at least one deceased parent, who cannot have contact with the other parent (for example, because that parent is a long-term prisoner or their whereabouts is unknown). Table 7.9 shows the number of recipients and expenditure for Family Assistance.

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Year Book Australia 2003

7.8 MAXIMUM RATES FOR INCOME SUPPORT PAYMENTS AND BENEFITS — As at 30 June 2002

7.8

MAXIMUM RATES FOR INCOME SUPPORT PAYMENTS AND BENEFITS — As at 30 June 2002 — continued

$

Age Pension(a) Single Couple(b)

421.80 352.10

Age Pension Savings Bonus

variable

Austudy(a) Single or partnered, no children Single, with children Partnered, with children

301.70 395.30 331.30

Bereavement Allowance(c) Carer Allowance(a)

421.80 85.30

Child Care Benefit Approved care(d) Non-school age child School age child Registered care(d) Non-school age child School age child

2.58 2.19 0.43 0.37

Disability Support Pension(a) Single Couple(b)

421.80 352.10

Double Orphan Pension(a) Education Entry Payment(e)

42.80 208.00

Family Tax Benefit Part A(a) For each dependent child Aged under 13 years Aged 13–15 years Aged 16–17 years Aged 18–24 years Family Tax Benefit Part B(a) Age of youngest child Aged under 5 years Aged 5–15 years Aged 16–18 years and full-time students Maternity Allowance One-off lump sum, per birth Maternity Immunisation Allowance One-off lump sum Mobility Allowance

122.92 155.82 39.48 53.06

105.56 73.64 73.64 798.72 208.00 64.40

Newstart Allowance(a) Single Aged 21 or over, no children Aged 21 or over, with children Aged 60 or over, after 9 months Partnered(b)

369.00 399.00 399.00 332.80

Parenting Payment(a) Sole parents Partnered parents

421.80 332.80

For footnotes see end of table.

...continued

Partner Allowance(a) Pensioner Education Supplement(a) At least 50% study load At least 25% study load Student Financial Supplement Scheme Maximum loan, per year Youth Allowance(a) Single, no children Aged under 18 years, at home Aged 18 years and over, at home Away from home Single with children Partnered with no children Partnered with children

$ 332.80 62.40 31.20

7 000.00

165.10 198.60 301.70 395.30 301.70 331.30

(a) Per fortnight. (b) Each. (c) Per fortnight for a maximum of seven fortnights. (d) Per hour. (e) One-off. Note: For Carer Payment, Widow Class B Pension, Wife Pension (Age) and Wife Pension (DSP) see Age Pension. For Mature Age Allowance, Sickness Allowance, Widow Allowance see Newstart Allowance; and for Special Payment generally as for Newstart/Youth Allowance. Source: Centrelink.

Youth and student support Youth and student support policy is aimed at promoting a family orientation in developing youth policy. It is formulated to help low- to middle-income families by providing income support for young people undertaking education or training or seeking work. The policy is also trying to develop new partnership arrangements within and across levels of government and with community organisations to support innovations in youth and family support arrangements around young people’s transitions to independence and adulthood. Youth Allowance is the main income support payment for people aged 16–20 years actively seeking employment and for full-time students 16–24 years old. It is subject to an individual income and assets test and a parental income and assets test. A person may be exempt from the parental test if they meet the Youth Allowance independence criteria. In addition a person must undertake approved activities that may include full-time study or a combination of activities such as job search, work for the dole, literacy and numeracy courses, part-time education, part-time employment and voluntary work. People on Youth Allowance may be required to undertake Mutual Obligation activities.

Chapter 7 — Income and welfare

7.9

203

RECIPIENTS AND EXPENDITURE FOR FAMILY ASSISTANCE(a) Units

2000–01

2001–02

no. no. no. $’000

1 801 285 1 181 069 n.a. 10 076 463

1 795 355 1 199 233 40 319 10 927 703

no. no.

n.a. n.a.

80 326 n.a.

$’000 $’000

(e)11 000 n.a.

171 380 164 570

Maternity Allowance Recipients Payments

no. $’000

210 120 217 899

212 237 216 887

Maternity Immunisation Allowance Recipients Payments(f)

no. $’000

203 939 n.a.

206 803 n.a.

Double Orphan Pension Recipients Payments

no. $’000

1 242 1 977

1 207 1 976

Family Tax Benefit Centrelink Recipients(b) Part A — fortnightly instalments Part B — fortnightly instalments Lump sum payments(c) Total payments (Part A and Part B) Australian Taxation Office Recipients(b) Paid by tax instalment deduction or on assessment Reconciliation credits Payments Paid by tax instalment deduction or on assessment(d) Reconciliation credits(d)

(a) Refers to total payments in the year ending 30 June. (b) Recipients who claimed assistance using more than one payment method for the year are included in each category. (c) Includes recipients of Family Tax Benefits reconciliation credits. (d) Data are presented on an accruals accounting basis. Most Australian Taxation Office payments of Family Tax Benefit are paid on assessment of taxation returns. Thus, most payments made in 2001–02 relate to the taxpayer’s entitlements for the previous financial year. (e) Estimated. (f) Separate expenditure figures are not available for Maternity Allowance and Maternity Immunisation Allowance. Source: Department of Family and Community Services; Department of the Treasury.

The rate of Youth Allowance is determined on whether the person is single, partnered, if they have children, if they live at home or need to live away from home. Austudy payment is paid to students 25 years and over whose financial circumstances are such that without financial help, full-time study would not be possible. The rate of Austudy is dependent on whether the person is single or partnered, whether they have children and whether the person is a ‘long-term income support student’. There is also a Student Financial Supplement Scheme that gives students the option of increasing their income while studying. Students

surrender one dollar of income support for two dollars of fully refundable repayable loan that is repaid on an income contingent basis. The scheme helps remove barriers to participation in education. Eligible students receiving Youth Allowance, Austudy or Pensioner Education Supplement, who usually live away from home, will receive a Fares Allowance which contributes to travel costs. Table 7.10 shows the number of Youth and Student Support recipients and expenditure by payment type.

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Year Book Australia 2003

7.10

RECIPIENTS AND EXPENDITURE FOR YOUTH AND STUDENT SUPPORT Units

May 1999

June 2000

June 2001

June 2002

Youth Allowance Full-time students Other Total Total payments(a)

no. no. no. $’000

303 747 84 156 387 903 1 843 498

308 883 83 071 391 954 2 002 830

308 549 86 404 394 953 2 101 915

308 169 87 327 395 496 2 213 719

Austudy Recipients Total payments(a)

no. $’000

47 170 287 173

42 838 253 870

41 992 249 258

41 007 280 794

Student financial supplement payments(a) Fare allowance payments(a)

$’000 $’000

259 745 690

290 681 569

161 510 644

500 967 525

(a) Year ending 30 June. Source: Department of Family and Community Services.

Child Care Support Child Care Support policies have been developed to help families to participate in the economic and social life of the community through providing support for child care. Child Care Benefit (CCB), which replaced Childcare Assistance and the Childcare rebate from 1 July 2000, helps families with the cost of child care, with financial assistance proportionally higher for lower income families. Eligible families can have the benefit paid directly to the child care service to reduce their ongoing fees. Alternatively they can receive the benefit as a lump sum refund at the end of the financial year. Families using registered carers (i.e. informal care provided by a friend or neighbour), rather than formal care in an approved service, are eligible for the minimum rate of CCB. This is paid for up to 50 hours per week of work-related child care. 7.11

The Jobs, Education and Training (JET) Program helps some people on particular payments from Centrelink (including parents, widows, carers) gain new skills or update existing skills, and improve their chances of gaining employment. JET Child Care provides extra assistance to eligible customers who need help finding suitable affordable child care. Assistance is provided through the JET child care network and is called Child Care for Eligible Parents Undergoing Training. Table 7.11 shows the number of Child Care Support recipients and expenditure by payment type.

RECIPIENTS(a) AND EXPENDITURE FOR CHILD CARE SUPPORT 1999 no. $’000

Child Care Benefit(b) Approved service Registered carers Child Care for Eligible Parents Undergoing Training

.. ..

.. ..

2000 no. .. ..

$’000

2001 no.

$’000

. . 630 156 1 037 137 . . 47 236 ..

5 395 4 599 8 592 11 050

13 276

2002 no.

$’000

n.a. 1 315 912 n.a. ..

7 301 (c)18 352

11 067

(a) Number of families. (b) Families can receive Child Care Benefit for both approved child care and registered care. (c) Does not include five months of data for NT and seven months of data for ACT. Source: Department of Family and Community Services.

Chapter 7 — Income and welfare

Labour Market Assistance Labour Market Assistance policies are designed to help support people of working age through providing income support to those seeking work or undertaking other activities such as training or community work or caring for children. Most income support payments are subject to a means test, which assesses family income and assets. There are two main income support payments for Labour Market Assistance: Newstart Allowance (NSA) and Parenting Payment. NSA is paid to people aged 21–64 years who are unemployed and actively searching for work. They must be willing to undertake suitable paid work, which includes full-time, part-time or casual employment. They may also qualify if undertaking a vocational training course, participating in a labour market program or undertaking other agreed activities. NSA jobseekers may be asked to undertake Mutual Obligation activities, in addition to their job search, after six months of unemployment and annually thereafter. Mutual Obligation requires people to take part in activities to improve their skills and work habits. It aims to enhance the person’s job prospects and competitiveness in the labour market, promotes involvement in community work and facilitates transition from welfare to employment. From 1 July 2002, Mutual Obligation requirements apply to all job seekers up to 49 years of age.

205

Parenting Payment is paid to single and partnered low-income parents who are primary carers for children under 16. The policy recognises the important contribution made by parents caring for children at home and aims to avoid parents’ future choices being limited by long periods out of the workforce. Other payments for Labour Market Assistance include: Mature Age Allowance, Partner Allowance, Widow Allowance, Bereavement Allowance and Special Benefit. Mature Age Allowance, Partner Allowance and Widow Allowance all recognise the labour market difficulties faced by some older unemployed people who have no recent workforce experience. Bereavement Allowance is a short-term payment for recently widowed people without dependent children, payable for up to 14 weeks. Special Benefit provides assistance to people in severe financial need and for whom no other pension, allowance or other support is available. Pensioner Education Supplement, Education Entry Payment and Employment Entry Payment provide supplementary financial assistance to help with the costs of taking up study and entering the work force. Table 7.12 shows the number of Labour Market Assistance recipients by expenditure and payment type.

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7.12 Newstart Allowance Short-term (less than 12 months) Males Females Persons Long-term (12 months and over) Males Females Persons

LABOUR MARKET ASSISTANCE Units

May 1999

June 2000

June 2001

June 2002

no. no. no.

171 764 77 469 249 233

143 659 62 695 206 554

165 451 67 460 232 911

146 965 60 094 207 059

no. no. no.

273 366 106 290 379 656

247 366 98 959 346 325

222 548 85 545 308 093

222 789 94 024 316 813

Total payments(a)

$’000

5 370 669

4 954 450

4 918 349

5 078 220

Parenting Payment Single Males Females Persons Total payments(a)

no. no. no. $’000

(b)27 128 (b)357 814 (b)384 942 3 266 957

28 463 368 851 397 314 3 407 804

32 429 392 187 424 616 3 861 774

33 889 402 750 436 639 4 145 834

Partnered(c) Persons Total payments(a)

no. $’000

(b)622 321 2 135 987

595 837 2 086 426

214 721 1 463 907

201 585 1 425 884

Mature Age Allowance Recipients Total payments(a)

no. $’000

47 360 401 698

42 106 367 250

39 296 352 596

39 906 364 210

Partner Allowance Recipients Total payments(a)

no. $’000

81 804 590 185

89 580 646 460

92 438 728 679

100 833 817 599

Widow Allowance Recipients Total payments(a)

no. $’000

27 822 227 289

32 982 270 825

36 908 324 919

40 910 389 550

Special Benefit Recipients Total payments(a)

no. $’000

11 808 99 585

10 971 98 704

12 495 114 778

12 811 119 811

Bereavement Allowance Recipients Total payments(a)

no. $’000

n.a. 734

n.a. 782

n.a. 719

n.a. 813

Pensioner Education Supplement Recipients Total payments(a)

no. $’000

n.a. 44 601

n.a. 49 571

n.a. 58 248

n.a. 65 784

(a) Ending 30 June. (b) Numbers for Parenting Payments are for June 1999. (c) From 1 July 2000 the basic component of Parenting Payment (partnered) was incorporated into Family Tax Benefit. As a result 375,233 customers were transferred from Parenting Payment (partnered) to Family Tax Benefit Part B. Source: Department of Family and Community Services.

Support for people with a disability The policy to support people with disabilities is designed to promote independence and self-reliance through the provision of rehabilitation services, specialist employment services and other services for people with a disability. It also aims to help support people with a disability with limited means through the provision of income support.

Disability Support Pension (DSP) is the main form of income support for people with a physical, intellectual or psychiatric impairment resulting in an inability to work for at least 30 hours per week at award wages, or be retrained for work, for at least two years. DSP is income and assets tested. However, the permanently blind are exempt from the income test. DSP for people aged 21 years and over is paid at the same rate as Age Pension. Youth rates

Chapter 7 — Income and welfare

apply to those aged under 21 years. These are largely tied to Youth Allowance rates, but include a supplement of $85.30 per fortnight. Youth rates are not subject to parental income or assets tests. From September 2002, the Better Assessment and Early Intervention Australians Working Together measure provides for an increased focus on the assessment of work capacity for people who are ill, injured or have a disability and on the early identification of interventions, such as rehabilitation and employment assistance, to help people maximise their economic and social participation. Other support for people with a disability includes Mobility Allowance and Sickness Allowance. Mobility Allowance is intended to help those who are involved in paid work, vocational training or voluntary work or a combination of some of these, who are unable to use public transport without substantial assistance. Sickness Allowance may be paid to people between 21 and Age Pension age, who are temporarily unable to work or continue with their full-time study due to illness or injury but who have a job or study to return to.

7.13

207

Wife Pension (DSP) provides an income for a woman who is a partner of a DSP recipient, is aged below Age Pension age and is not receiving any other payment in her own right. This payment is gradually being phased out, with new grants of Wife Pension ceasing after 30 June 1995. Table 7.13 shows the number of recipients of support for people with a disability, and expenditure by payment type.

Support for carers There are two forms of Commonwealth financial assistance that may be available in a caring situation — Carer Payment and Carer Allowance. Carer Payment provides income support to people who, due to the demands of their caring role, are unable to support themselves through substantial workforce participation. Carer Payment is subject to income and assets tests and is paid at the same rate as other social security pensions. Carer Allowance is a supplementary payment that is available to people who provide daily care and attention at home for an adult or child with a disability or severe medical condition. Carer Allowance is not income or assets tested. It can be paid in addition to a social security income support payment.

SUPPORT FOR PEOPLE WITH A DISABILITY Units

June 1999

June 2000

June 2001

June 2002

Disability Support Pension Males Females Persons Total payments(a)

no. no. no. $’000

373 340 204 342 577 682 4 920 223

382 412 219 981 602 393 5 253 241

392 354 231 572 623 926 5 849 799

406 893 252 022 658 915 6 404 351

Wife Pension (DSP) Recipients Total payments(a)

no. $’000

68 523 534 069

59 172 479 205

51 225 446 564

44 238 401 969

Mobility Allowance Recipients Total payments(a)

no. $’000

31 001 46 137

35 154 52 096

37 574 59 367

41 456 67 852

Sickness Allowance Recipients Total payments(a)

no. $’000

(b)11 181 (b)93 043

10 733 83 881

10 942 95 554

9 522 93 724

(a) Ending 30 June. (b) 1999 data for Sickness Allowance based on May 1999. Source: Department of Family and Community Services.

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Year Book Australia 2003

Other payments available for older Australians include Wife Pension and Widow B Pension. These payments were designed to provide financial assistance to women below the pension age who are either the partner of an age pensioner or who have lost the financial support of a male partner through death, separation or divorce. The concepts behind these payments have been updated to reflect a more modern society and consequently these payments have been closed to new entrants. From 1 July 1995 for Wife Pension, and from 21 March 1997 for Widow B Pension, payments have been confined to women already receiving the payment on those dates.

Table 7.14 shows the number of support for carer recipients and expenditure by payment type.

Support for the aged Policies relating to support for the aged are designed to help retirees make best use of their own financial resources to maintain their standard of living, and to support the aged with limited means through providing income support. They are also intended to provide information and foster opportunities for older people to participate in the community. The principal form of support is the Age Pension. Age Pension age for men is 65 and for women is being progressively raised to 65 by 2014. The qualifying age for women depends on their date of birth, with the minimum age increasing by six months at two year intervals until it reaches 65 for those born on or after 1 January 1949.

The ageing of the Australian population will increase the financial commitment of the Australian economy to support the aged. It is expected that Age Pension expenditure will increase from 3.0% of gross domestic product to 4.6% by 2050. Table 7.15 shows the number of recipients and expenditure by payment type for support for the aged.

7.14

SUPPORT FOR CARERS(a)

Units

1999

2000

2001

2002

Carer Payment Recipients Total payments

no. $’000

40 070 307 506

47 550 369 723

57 190 480 944

67 260 595 810

Carer Allowance(a) Recipients Total payments

no. $’000

.. ..

194 887 412 334

246 337 533 247

283 753 645 722

(a) Year ending 30 June. (b) Carer Allowance was introduced on 1 July 1999. It combined Child Disability Allowance with Domiciliary Nursing Care Benefit, which was the responsibility of the Department of Health and Ageing. Source: Department of Family and Community Services.

7.15

SUPPORT FOR AGED(a)

Units

1999

2000

2001

2002

Age Pension(b) Males Females Persons Total payments(a)

no. no. no. $’000

634 112 1 081 680 1 715 792 13 569 056

654 557 1 075 303 1 729 860 14 037 940

684 219 1 101 335 1 785 554 15 616 477

710 170 1 100 609 1 810 779 16 665 653

Widow B Pension Recipients Total payments(a)

no. $’000

10 518 105 694

8 892 89 849

6 456 84 296

5 130 59 787

Wife Pension (Age)(b) Recipients Total payments(a)

no. $’000

32 196 243 433

31 406 240 751

26 476 233 080

23 730 216 160

(a) Year ending 30 June. (b) Includes the Pension Savings Bonus Scheme from 1 July 1998 (first payments were made in 1999–2000); and amounts paid by the Department of Veterans’ Affairs in relation to the Aged Pension, related Wife Pension and Disability Support Pension. Source: Department of Family and Community Services.

Chapter 7 — Income and welfare

Other support programs Family assistance Family assistance support programs help support and strengthen families through services to enhance family relationship, lower the incidence of family breakdown and prevent child abuse. The Stronger Families and Communities Strategy aims to strengthen communities by investing in prevention, early intervention and capacity building. Commencing in 2000–01 the Strategy will run for four years, fund community-based projects for strengthening families, develop better relationship and parenting skills, and provide more responsive child care options. A longitudinal study of child health and development was also initiated under the Strategy. The Commonwealth Government has been funding the Family Relationships Services Program (FRSP) since the early 1960s. The Program aims to enable children, young people and adults to develop and sustain safe, supportive and nurturing family relationships and to minimise the emotional, social and economic costs associated with disruption to family relationships. The Attorney-General’s Department (A-G’s) contributes part of the funding for the FRSP. Early Intervention and Parenting projects are aimed at preventing child abuse, improved parenting skills and strengthening families. A key focus of these projects is meeting the special needs of families in rural and remote areas, Indigenous families and families from multicultural backgrounds. Opportunities are also provided for children under five, and their carers, to interact with other children and their carers. The Commonwealth Financial Counselling Program provides free financial counselling services to people in low-income groups experiencing financial crises due to circumstances such as unemployment, sickness, credit over-commitment and family breakdown.

Youth and student support Youth and Community Support programs develop new partnerships within and across levels of government and with community organisations to support innovations in youth and family support arrangements around young people’s transition to independence and adulthood.

209

The Strengthening and Supporting Families Coping with Illicit Drug Use Measure provides funding to state and territory governments to provide services to families where a young person is suffering from the effects of illicit drug use. Reconnect is an early intervention program for young people, aged between 12 and 18 years, who are homeless or at risk of homelessness, and their families. Reconnect services offer counselling, adolescent mediation and practical support to both young people and their families. The Youth Activities Services Program provides innovative structured activities and positive peer support programs after school, over the weekend and during vacations for 11–16 years olds in disadvantaged areas. The Youth Activities Services Family Liaison Worker Program provides practical support and guidance for young people aged 11–16 and their families, to help them deal with difficulties such as family conflict and lack of communication, and refer them to specialist services as required. The JET program is an early intervention program providing assistance to young people aged between 15 and 21 years (with an emphasis on 15–19 year olds) who are homeless, at risk of becoming homeless, ex-offenders, refugees or wards of the state. The Green Corps Program provides young people aged between 17 and 20 years with the opportunity to work on environmental and heritage conservation projects, while undertaking accredited training.

Child support The Child Support Scheme is a joint FaCS and A-G’s scheme, administered by the Child Support Agency (CSA). It aims to improve financial support for children of separated parents by obtaining contributions from paying parents for the support of their children, in accordance with their capacity to pay. Parents may make private arrangements for child support to be paid, or have it collected by the CSA. Parents are required to take reasonable steps to obtain child support if they wish to receive Family Tax Benefit Part A at more than the basic rate. The total amount of child support transferred between parents in 2001–02 was $1,450m. This includes child support that the CSA assessed and parents transferred privately, and child support the CSA assessed and collected.

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Year Book Australia 2003

Child care Child care support policies are designed to help families balance their work and parenting roles by providing flexible child care services to promote quality child care, contributing to the development and education of children; and provide a focus for early intervention initiatives for vulnerable families and children. Child care services include centre-based long-day care, family day care, in-home care, before and after school hours care, vacation care, occasional care, and Multi-functional Aboriginal Children’s Services. Flexible services that can combine various models of care are also available to meet the needs of families in rural and remote areas. There were 500,027 Commonwealth funded places, across all child care support services, at December 2001.

Housing support Housing support policies are in place to assist low and moderate income householders access appropriate affordable housing, and provide supporting initiatives to assist homeless people. The Supported Accommodation Assistance Program is a joint Commonwealth and state/territory government program, which provides transitional, supported accommodation and a range of related support services to people who are homeless or at imminent risk of homelessness. It also aims to resolve crisis situations, re-establish family links where appropriate and re-establish the capacity of clients to live independently of the program. FaCS housing programs are discussed further in Chapter 8, Housing.

Community support Community support programs and policies cover a wide range of goals and outcomes. They include developing community capacity and self-reliance by supporting leadership, volunteering and innovative local responses. Another goal is to help people in rural and regional areas to access services that support their special needs and to take advantage of opportunities. They are also designed to help improve the living conditions of Indigenous peoples and other culturally and linguistically diverse communities. Other goals and outcomes involve encouraging partnerships between business, community and government sectors, helping in crisis situations and assisting low-income families and individuals with living costs.

Initiatives under the Stronger Families and Communities Strategy such as the National Skills for Volunteers Program, provide capacity building support to communities. The National Skills for Volunteers Program supports volunteers by providing skills development grants and training resources to community organisations. The Emergency Relief Program provides grants to charitable, community and religious organisations so that they can assist individuals and families in emergency financial crisis. The program also provides training support for paid and voluntary workers in the sector. The Volunteer Management Program provides funding for centres to provide referral services to community organisations and training for volunteer managers. Remote Area Allowance offsets some of the additional costs associated with living in remote areas of Australia. It recognises that income support customers do not receive the full benefits of the zone tax offset amounts that are available to taxpayers. A quarterly Telephone Allowance payment is paid to pensioners, long-term allowance customers and eligible Commonwealth Seniors Health Card holders to assist with the cost of domestic telephone services. Pharmaceutical Allowance is paid to pensioners and some other income support customers to help with the cost of Pharmaceutical Benefit Scheme prescription items. Commonwealth Concessions Cards, the Pensioner Concession Card, the Health Care Card and the Commonwealth Seniors Health Card, are also part of Community Support policies. They are issued mainly to assist eligible individuals and/or their families with the cost of Pharmaceutical Benefits Scheme prescription items.

Labour market assistance Labour market assistance policies are designed to foster a culture of self-reliance in the community by promoting appropriate understanding, expectations and behaviours. The Australians Working Together (AWT) initiative, which is being progressively implemented from 1 July 2002, provides assistance to people of workforce age including job seekers, parents, people with disabilities, the unemployed, mature age people and Indigenous Australians. Initiatives include a Working Credit to encourage people on income support to take up full-time, part-time or irregular casual work,

Chapter 7 — Income and welfare

Training Credits, a Literacy and Numeracy Training supplement, more places in employment services and initiatives to assist Indigenous Australians. The Personal Support Program (PSP), which commenced on 1 July 2002, helps those people on income support payments who face multiple non-vocational obstacles to employment. These barriers include homelessness, drug and alcohol problems, psychiatric disorders or domestic violence problems. The PSP has broad objectives that recognise social as well as economic participation. Social outcomes are often more achievable and appropriate to participants with these sorts of multiple barriers to employment. JET is a joint program of the FaCS, the Department of Employment and Workplace Relations and the Department of Education, Science and Training. JET is a voluntary program that assists with skill development and entry or re-entry into the paid workforce. Assistance provided includes: development of a plan to achieve labour market readiness; access to education, training and employment assistance; referrals to government and community services; and child care assistance. People receiving Parenting Payment, Widow Allowance, Partner Allowance, Widow B Pension, Carer Payment and some Special Benefit recipients are eligible to participate in JET. The Voluntary Work Initiative was introduced in 1996 and aims to improve the take-up and effectiveness of voluntary work among income support customers of working age, particularly Newstart and Youth Allowance customers. Initiatives are also being developed that aim at increasing take-up by Indigenous customers and customers of a multicultural background, as well as extension of the program to meet the needs of new AWT customers from 1 July 2002. Volunteering Australia manages the scheme on behalf of the FaCS.

Support for people with a disability The Disability Services Act 1986 (Cwlth) was introduced to expand opportunities for the participation of people with disabilities. Under the Act, the Commonwealth Government provides grants for the provision of services to people with disabilities, particularly in the labour market.

211

Under the Commonwealth/State Disability Agreement, the Commonwealth has responsibility for the provision of employment services for people with disabilities. Disability employment services assist people with disabilities in job search and job placement, and provide individualised on-the-job training and support. The Commonwealth also provides funds to assist the states and territories in the planning, policy setting and management of accommodation and other related services for people with disabilities. Areas such as advocacy and research and development continue to be a responsibility of both levels of government. In 1994 the Commonwealth Disability Strategy was adopted as a 10-year policy and planning framework for Commonwealth government departments and authorities, to improve access to their programs, services and facilities for people with disabilities. The Strategy was adopted in response to the Commonwealth Disability Discrimination Act 1992 (Cwlth), which makes discrimination on the grounds of disability unlawful. Programs for Support for People with a Disability include the Disability Employment Assistance Program and the Employer Incentives Strategy. The Disability Employment Program provides funding for job seekers with disabilities to find and maintain employment. The Employer Incentives Strategy encourages employers to provide durable job opportunities for people with a disability, including workplace modifications, supported wage assessments and grants to address change in business recruitment practices. Support is also provided through Rehabilitation Services to improve function and independence in people with a disability so that they can remain in or return to suitable employment, and live independently. Advocacy is another program designed to enable people with a disability to more fully participate in community life, and achieve and maintain their rights as citizens. The Advocacy program involves families of individuals where possible and appropriate. Print and Caption Translation Services assists people with a disability to access recreation information, captioned television news and videos. It also subsidises the production of printed material in formats accessible to people, who by reason of their disability, are unable to access information provided in print medium.

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Year Book Australia 2003

Aged care programs of the Department of Health and Ageing National Strategy for an Ageing Australia Recognising the significant implications of population ageing across a number of public policy areas, the Commonwealth Government has developed a National Strategy for an Ageing Australia. The National Strategy Framework document identifies key issues, a number of goals and some broad, practical actions to meet these goals. It provides a basic framework to address current issues facing older people and to prepare for future demographic changes as Australia’s population ages over the next 50 years. It also highlights that the ageing of Australia’s population is an issue for all Australians — governments, businesses, community organisations, and individuals.

healthy ageing issues — health promotion, physical activity

n

independence and self provision issues — retirement income, pensions and superannuation

n

world class care issues — health and care issues across the spectrum

n

employment for mature age workers issues

7.16

attitude, lifestyle and community support issues — housing, transport, lifelong learning, tourism, business opportunities, families and intergenerational issues

n

ongoing action on ageing matters by government, business, community and professional organisations and individuals will be necessary over the short, medium and longer term.

Current Commonwealth initiatives include the Intergenerational Report, the development of a mature age workers strategy, and legislation to prohibit discrimination on the basis of age.

Residential Aged Care Program The aim of the Residential Aged Care Program is to enhance the quality of life of older Australians through support for the provision of a cohesive framework of high quality and cost effective residential care services for frail older people. Aged care places are allocated in proportion to the number of people aged 70 years and older.

The themes of the National Strategy cover: n

n

The Government subsidises the costs for each person in a residential care setting. The level of funding depends on the care needs of the resident. Also, residents can be asked to pay fees and charges. Each aged care home that provides care is required to meet specific care standards and to be accredited by the Aged Care Standards and Accreditation Agency in order to receive Commonwealth government funding. Capital funding is available on a competitive basis to support residential aged care where the aged care provider is unable to fund necessary building works. Commonwealth government expenditure on residential aged care in 2001–02 is shown in table 7.16.

COMMONWEALTH EXPENDITURE ON RESIDENTIAL AGED CARE — 2001–02(a)

Residential care (recurrent)(b) Residential care (capital)(c)

NSW $m 1 441.9 7.0

Vic. $m 973.0 4.6

Qld $m 698.9 2.8

SA $m 382.8 0.8

WA $m 322.6 1.5

Tas. $m 117.1 1.8

NT $m 11.8 1.2

ACT $m 39.2 0.1

Aust.(b) $m 3 987.3 19.7

(a) Includes expenditure by the Department of Health and Ageing and the Department of Veterans’ Affairs, in accrual terms. (b) Total for Australia does not include payment of $3.982m expensed to central office. Allowance has been made for the timing and rounding of payments. Due to the department’s financial reporting system, these figures may change. (c) Allowance has been made for rounding of payments. Source: Department of Health and Ageing.

Chapter 7 — Income and welfare

Community care programs Home and Community Care (HACC) Program The HACC Program is a joint Commonwealth/state cost-shared program which provided $1b nationally for the 2001–02 financial year to service provider organisations. Of the total, the Commonwealth made available $615m or 60%, the states and territories providing the remaining 40%. The Commonwealth provides funding for HACC, but the day-to-day administration, priority setting and approval of project allocations is the responsibility of the state and territory governments. The aim of the HACC Program is to provide basic maintenance and support services to enable frail older people, and younger people with disabilities, to remain living in their home and the community and to prevent premature admission to long-term residential care. HACC funded services also assist the carers of these groups. The types of HACC funded services available include home maintenance and modification, as well as domestic assistance, food services, personal care, community nursing, transport and respite care.

Commonwealth Carelink Program Nationally, over 60 Commonwealth Carelink Centres provide information about local community aged care, disability and other support services to over 9,000 clients each month. Clients include care professionals including general practitioners, service providers, individuals and their carers. Total program funding of $41m is provided from 1999 to 2003.

Community Aged Care Packages Program Community Aged Care Packages are funded by the Commonwealth to provide a community alternative to low level residential care to assist frail older people with complex needs to remain living in the community. Service providers use a case management approach to develop and monitor care delivery to eligible older people. One of the great benefits of the Community Aged Care Packages Program is its flexibility in service delivery which is designed to meet individual needs. This flexibility enables people to be given assistance through a package of care services which may include personal care, assistance with preparing meals, home help and assistance with transport.

213

By June 2002, there have been 26,650 packages approved under the program. Total cash expenditure for 2001–02 was approximately $250m.

Aged Care Assessment Program The Commonwealth provides grants to state and territory governments specifically to operate Aged Care Assessment Teams (ACATs). In 2001–02, the Commonwealth Government contributed $40m for the operation of 123 ACATs throughout Australia, as well as an evaluation unit in each state. ACATs assess the care needs of people. The main professional groups represented on ACATs are geriatricians, social workers, nurses, physiotherapists, occupational therapists, psychologists and psychogeriatricians. ACATs assess the whole care needs of an individual, using a multi-disciplinary and multi-dimensional approach. As part of the holistic assessment process, a person’s medical, physical, social, psychological and restorative care needs are assessed before a care approval is made. ACATs are also well positioned to provide advice on aged care services and to act as an interface between aged care services and the health care system. Clients need to be assessed as eligible by an ACAT before they can receive a Commonwealth subsidy for residential care, a Community Aged Care Package, or flexible care.

Assistance with Care and Housing for the Aged (ACHA) Program The ACHA Program assists frail, low-income older people who are renting, are in insecure/ inappropriate housing or are homeless, to remain in the community by accessing suitable housing linked to community care. The Commonwealth contributes recurrent funds to organisations that provide support through paid workers and/or volunteers, assisting clients to access and be maintained in secure and affordable housing. The primary role of program workers is to link clients to appropriate mainstream housing and/or care services. In 2001–02 the program funded 46 projects nationally from an allocation of $3m. The funding for each project varies according to identified community need, the number of staff employed by individual services and the tenure of employment (i.e. full-time or part-time). Most

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Year Book Australia 2003

projects are located in inner city areas where there is a concentration of frail elderly people living in insecure accommodation.

National Respite for Carers Program (NRCP) The aim of the NRCP is to contribute to the support and maintenance of caring relationships between carers and their dependent family and friends. It provides information, respite care and other support or assistance appropriate to carers’ individual needs and circumstances, and those of the people for whom they care. Funding for the NRCP increased from $19m in its inception year, 1996–97, to $88m in 2001–02. The NRCP funds Commonwealth Carer Resource Centres, Commonwealth Carer Respite Centres and respite services. Commonwealth Carer Resource Centres, located in each state and territory, were established to act as a point of contact for carers seeking information and advice about the full range of services, support and assistance that is available to carers. A national network of over 90 Commonwealth Carer Respite Centres and regional office outlets has been established to improve coordination of respite service provision and help meet emergency and unplanned respite needs. Commonwealth Carer Respite Centres provide carers with a single contact point for respite care assistance whether the respite service required is in an aged care facility, in the community or in the carer’s home. The NRCP also provides funding for over 400 carer respite services, which include in-home, family-based, centre-based and peer support services, to supplement mainstream respite services offered through the HACC and other state-based programs as well as local government and community initiatives.

Extended Aged Care at Home (EACH) Program The EACH Program commenced as a three-year pilot in 1998 to test the feasibility of providing the equivalent to high level residential age care to people living at home. There are currently 10 provider organisations with a total of 290 approved places. EACH service providers are required to deliver individually tailored, coordinated packages of care in keeping with a client’s care plan. Services can include, but are not limited to, the following: personal care including continence care;

specialist nursing care and 24-hour emergency assistance; support for people with cognitive deficits; assistance with meals; and home help and maintenance. The 2001 Budget Initiative on EACH provided an additional $2m over two years for development work to lay the foundations for possible expansion of the EACH Program and address data management, quality and accountability issues. Through 2002–03 further development will be undertaken, including a census of EACH services in May 2002. In the 2002 Aged Care Approvals Round, 160 EACH packages have been allocated to provide for a moderate expansion of the EACH Program. The expansion is planned to target Tasmania, Queensland and the Northern Territory, none of which hosted a pilot program. This expansion will build provider familiarity with the program, and provide an Australia-wide base for program development.

Day Therapy Centres (DTC) Program The DTC Program has been in operation since 1988 when rationalisation of nursing home funding led to the separate funding of the therapy function. There are 151 service providers across Australia providing a wide range of therapy services to frail older people living in the community and to residents of Commonwealth funded aged care homes. Funding provided by the Government in 2001–02 was $29m. In the 2001–02 Budget, as part of the ‘Increasing Care and Diversity for Frail Older Australians’ package the Government provided an additional $4m over four years to enhance the DTC Program. This initiative will turn DTC much more towards outreach into the community and prevention of premature entry into high level care, particularly for those older people with dementia.

National Continence Management Strategy The ‘Staying at Home — Care and Support for Older Australians 1998’ package included $15m over four years to address the needs for improved continence management for older Australians through the National Continence Management Strategy. Under this Strategy, a number of national research and service development initiatives are being trialed to complement existing continence care.

Chapter 7 — Income and welfare

The Commonwealth Government also funds the Continence Aids Assistance Scheme (CAAS) which was established to assist people of working age who have a permanent disability-related incontinence condition. CAAS currently provides a subsidy to eligible individuals of $465 per annum. CAAS funding for 2002–03 is $11m.

Commonwealth Hearing Services Program The role of the Commonwealth Hearing Services Program is to purchase services for eligible people with a hearing impairment. The administration of the Commonwealth Hearing Services Program is the responsibility of the Office of Hearing Services (OHS), a branch within the Aged and Community Care Division in the Department of Health and Ageing. Access to hearing services for eligible adults is provided through the Hearing Services Voucher System. Eligible adults include holders of Pensioner Concession Cards, holders of Repatriation Health Cards issued to Veterans for conditions that include hearing loss, Sickness Allowees, dependants of the above categories, Commonwealth Rehabilitation Services Australia clients undergoing a vocational rehabilitation program and referred by their case manager, and serving Defence personnel. OHS purchases hearing services from accredited public and private sector providers. Voucher System expenditure in 2001–02 was $134m. There are 139 accredited hearing services providers contracted by the OHS to provide services under the Hearing Services Voucher System. Services are provided at 462 permanent sites and around 880 visiting sites throughout Australia by qualified hearing services practitioners (audiologists and audiometrists). OHS also has supply contracts with 15 hearing devices suppliers for the supply of quality hearing devices into the Program. In addition, the Government funds Australian Hearing Services to provide specialised hearing services for children and young adults under the age of 21 years, and to ensure access to appropriate hearing services for eligible adults with special needs. These clients include those who live in remote locations, who are Aboriginal or Torres Strait Islander people, or who have complex hearing needs. Funding is also provided to Australian Hearing Services to undertake, through its research arm, the National Acoustic Laboratories, research to increase understanding of issues related to hearing loss, hearing

215

rehabilitation and the harmful effects of noise. Total funding of these Community Service Obligation activities in 2001–02 was $28m.

Services provided by the Department of Veterans’ Affairs (DVA) The Repatriation Commission determines services provided to veterans, via the Veterans’ Entitlements Act 1986 (VEA) (Cwlth). The DVA provides the administrative machinery through which the Commission operates. The Commission, comprising three full-time members, has the following functions: n

to grant pensions and other benefits and provide treatment for veterans, their dependants and other eligible persons

n

to advise the minister on the operation of the VEA

n

generally to administer the VEA, subject to the control of the minister.

The VEA also gives the Commission the power to take necessary actions in connection with the performance of its functions, duties and powers. The responsible minister under the VEA is the Minister for Veterans’ Affairs. The minister does not have any powers to direct the Commission beyond the power to approve various actions of the Commission. The Commission currently provides services to more than half a million veterans and members of the Australian Defence Force (ADF), their partners, widows/widowers and children. The Commission has no staff of its own. DVA provides the administrative machinery through which the Commission operates. Repatriation benefits are provided under the VEA for eligible service that includes: n

wartime service (World War I, World War II, and certain post World War II conflicts including eligible South East Asia service such as Korea, Malaysia and Vietnam)

n

peacekeeping service

n

Merchant Navy service during Word War II

n

peacetime service between 1972 and 1994 — it should be noted that the administration of the Military Compensation and Rehabilitation Service, which covers peacetime service prior to 1972 and post 1994, was transferred from Defence to DVA in December 1999.

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Year Book Australia 2003

Under the Papua New Guinea (Members of the Forces Benefits) Act 1957 (Cwlth), Indigenous inhabitants of Papua New Guinea who served in the Australian forces during World War II, and members of the Royal Papuan Constabulary and New Guinea Police Force who also served in that conflict, are eligible for compensation-type benefits. Members of other Commonwealth countries’ forces and allied veterans are generally not eligible for compensation-type benefits from DVA in respect of their service, unless they were domiciled in Australia immediately before their enlistment. However, they may qualify for a DVA income support payment (see the Income support section). Qualifications for receiving subsidised housing loans, granted under the Defence Service Homes Act, generally depend on service with the ADF in World War I or World War II, or specified service in Korea, Malaya, South East Asia, Namibia, the Middle East for the Kuwaiti crisis, Cambodia, the former Yugoslavia, or East Timor, and for service in the Regular Defence forces on or after 7 December 1972, provided the person’s first service in the forces was before 15 May 1985. Certain civilians may also be eligible. More detailed information on repatriation allowances, benefits and services is available from DVA.

Compensation Program The principal objective of the Compensation Program is to ensure that eligible veterans, their war widows and widowers, and their dependants, have access to appropriate compensation and income support in recognition of the effects of war or defence service. Compensation is administered under four sub-programs — the Compensation Sub-Program, the Income Support Sub-Program, the Housing Sub-Program and the Veterans’ Review Board.

Compensation Sub-Program The main benefits provided through Compensation are the Disability Pension and the War/Defence Widow(er)s’ Pension. Table 7.17 shows the number of pensions at 30 June 2002 and the four preceding years. The Disability Pension compensates persons for incapacity resulting from eligible war, defence or peacekeeping service. General Rate Disability Pensions range from 10% up to and including 100%, depending on the degree of war-caused or service-related incapacity. Higher rates of pension — extreme disablement adjustment, intermediate and special rates — are available. The Intermediate Rate Pension and Special Rate Pension include components designed to recompense the veteran for loss of earnings. A veteran who is blind or who has certain amputations because of war-caused or service-related conditions is granted the Special Rate of pension without any reference to employment. Compensation is also available to compensate dependants for the death of a spouse or parent as a result of eligible service. The compensation is available as War/Defence Widow(er)s’ Pensions, Dependants’ Pensions and Orphans’ Pensions. Various ancillary benefits may also be provided, including attendant allowance (paid to carers), clothing allowance, decoration allowance, loss of earnings allowance, recreation transport allowance, vehicle assistance scheme, goods and services tax (GST) exemption on cars and car parts, bereavement payment and funeral benefit. Dependent children of ADF members who have been killed or severely injured were given access to educational guidance and counselling from the Veterans’ Children Education Boards from 1 January 2001. Long Tan bursaries are available for the children of Vietnam veterans. From 1 January 2001 the children of Vietnam veterans are eligible for Veterans’ Children Education scheme (VCES) benefits where the child is diagnosed as having a depressive disorder or if the opinion of an appropriately qualified professional is that the child is vulnerable.

Chapter 7 — Income and welfare

7.17

217

DISABILITY AND WAR WIDOWS’ PENSIONERS — As at 30 June

Recipient

1998 161 829 65 442 3 752 100 746 420 771 332 960

Incapacitated veterans Wives and widows(a) Children War widows and widowers(b) Orphans Other dependants Total

1999 162 810 60 864 3 337 104 553 414 735 332 713

2000 162 730 56 596 3 165 107 953 410 683 331 537

2001 162 505 51 148 1 690 110 656 382 657 327 038

2002 159 425 47 016 1 404 113 059 344 600 321 848

(a) Wives of still living veterans and widows of deceased veterans who have not died from an accepted war caused condition. (b) Widows and widowers of deceased veterans who have died from an accepted war caused condition. Source: Department of Veterans’ Affairs.

The VCES (see tables 7.20 and 7.21) provides financial help, guidance and counselling to certain students up to 25 years of age. To be eligible a student must be the child of a veteran, an Australian mariner, or a member of the Forces, who is (or has been) in receipt of a Special Rate or Extreme Disablement Adjustment Disability Pension. Children of former prisoners of war, of veterans, or of Australian mariners whose death has been accepted as war-caused, are also eligible. Benefits include education allowances and other forms of assistance appropriate to the particular type and stage of education.

Table 7.18 shows the number of disability pensioners at 30 June 2002 by conflict type. In this table, a person is allocated to the conflict relating to the first disability claim they lodged, regardless of later claims by the person relating to either earlier or later conflicts in which they served. Table 7.19 shows the number of disability pensions at 30 June 2002 and for the nine preceding years.

7.18

Seaman’s War Pension

Korea/ Malaya

FESR(b)

Vietnam

Peacetime forces

Gulf War(c)

East Timor

3 76 082

458

4 925

2 075

12 899

22 175

138

371

World War I

General Rate — from 10% to 100% Intermediate Rate Special Rate (TPI or equivalent) Extreme Disablement Adjustment Total

DISABILITY PENSIONERS — 30 June 2002

World War II(a)

Others

Total

382 119 508



414

1

52

13

311

192



1



984



8 027

8

1 598

540

14 248

1 922

24

29

27

26 423

— 11 714

84

532

62

100

11





7

12 510

3 96 237

551

7 107

2 690

27 558

24 300

162

401

416 159 425

(a) Includes interim forces. (b) Far East Strategic Reserve. (c) A number of veterans of the Gulf War are officially recorded as members of the Defence/Peacekeeping forces. Source: Department of Veterans’ Affairs.

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Year Book Australia 2003

7.19

DISABILITY AND WAR WIDOWS’ PENSIONS Disability pensions in force at 30 June Dependants of incapacitated veterans(b) no. 96 948 91 722 85 837 80 204 74 405 69 484 64 486 60 011 53 080 49 020

Incapacitated veterans(a) no. 156 923 156 565 157 298 159 178 160 145 161 829 162 810 162 730 162 505 159 425

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Dependants of deceased veterans(c) no. 83 642 86 224 90 039 94 473 98 493 101 647 105 417 108 796 111 453 113 403

Annual expenditure(d) to 30 June $’000 1 445 308 1 508 446 1 570 136 1 720 239 1 819 338 1 888 416 2 067 783 2 099 205 2 314 052 2 501 200

Total no. 337 513 334 511 333 174 333 855 333 043 332 960 332 713 331 537 327 038 321 848

(a) All disability pensioners in payment. (b) Includes disability pensioners’ spouse/widow(er)s, disability pensioners’ children and Adequate Means of Support (AMS) incapacitated cases. (c) Includes war widow(er)s, orphans and AMS deceased cases. (d) Includes associated allowances (e.g. Income Support Supplement). Source: Department of Veterans’ Affairs.

7.20 VETERANS’ CHILDREN EDUCATION SCHEME, Cost of education beneficiaries

1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02

NSW(a) $’000 1 612 1 749 1 906 2 401 2 914 3 536 3 970 3 858 4 189 4 634

Vic. $’000 1 093 1 170 1 164 1 399 1 695 2 072 2 421 2 585 3 039 3 230

Qld $’000 1 198 1 304 1 601 1 878 2 430 3 024 3 609 3 904 4 632 5 445

SA(b) $’000 310 349 372 433 522 685 812 976 1 320 1 534

WA $’000 645 772 792 925 1 136 1 442 1 714 1 919 2 294 2 576

Tas. $’000 414 464 492 553 621 719 789 789 884 903

Aust. $’000 5 272 5 807 6 326 7 590 9 318 11 478 13 315 14 031 16 357 18 320

(a) Includes ACT. (b) Includes NT. Source: Department of Veterans’ Affairs.

7.21 VETERANS’ CHILDREN EDUCATION SCHEME, Number receiving benefits — At 30 June 2002 Type of training

NSW(a)

Vic.

Qld

SA(b)

WA

Tas.

Aust.

At school Primary(c) Secondary Total

278 613 891

147 400 547

486 750 1 236

123 215 338

210 314 524

70 123 193

1 314 2 415 3 729

273 74 1 238

189 102 838

381 132 1 749

142 — 480

255 — 779

48 19 260

1 288 327 5 344

Tertiary professional Technical Total

(a) Includes ACT. (b) Includes NT. (c) Receive an annual payment rather than the fortnightly payment received by other students. Source: Department of Veterans’ Affairs.

Chapter 7 — Income and welfare

Income Support Sub-Program There are three main forms of income support pension paid by DVA: n

the Service Pension, which is similar to the Age and Disability Support Pensions paid by Centrelink

n

the Partner Service Pension

n

the Income Support Supplement.

All income support pensions are subject to income and assets tests except those granted to people who are blind in both eyes. The Age Service Pension is payable to veterans with qualifying service at 60 years of age. Veterans with qualifying service may be paid the Invalidity Service Pension at any age if they are permanently incapacitated for work. Prior to 1 July 1995, the service pension was paid to female veterans with qualifying service at age 55. The Government introduced changes to the minimum age at which a female veteran can be granted an age service pension. Under the changes the minimum age is to be progressively lifted from 55–60 years in six-monthly increments every two years over the period 1995–2013. This means that the qualifying age for female veterans for age service pension at 1 July 2002 is 57 years. For service during World War I and World War II, qualifying service generally means service in an area and at a time when the veteran incurred danger from hostile enemy forces. Qualifying service for post World War II deployments generally covers service in an operational area while allotted for duty in that area. Members of certain peacekeeping forces whose service is considered to be war-like also have qualifying service. Veterans of other Commonwealth and Allied countries may also qualify for a service pension if they served in wars or war-like conflicts in which Australia was involved. Veterans of

219

Commonwealth forces must have served outside the country of enlistment or be entitled to the award of a campaign medal for service within that country. Allied veterans must have served in formally raised forces. The veteran must be an Australian resident with at least 10 years residency. A Partner Service Pension may be provided on the basis that the person is the partner or widow(er) of a veteran with qualifying service. Income Support Supplement (ISS) is paid to war/defence widow(er)s of service pension age (60 for men, currently 57 for women). It may be paid to a widow(er) under Service Pension age if he or she has a dependent child, is caring for a severely handicapped person or is permanently incapacitated for work. The ISS is subject to income and asset testing and the War/Defence Widow(er)s’ Pension is counted as income when assessing income support supplement. The maximum Income Support Supplement was a frozen amount for many years. However, from 20 September 2002 it was unfrozen and is indexed twice a year by the same percentage as Service Pension. All recipients of income support payments are eligible for supplementary benefits, provided by the Commonwealth Government, including some medical and hospital treatment, pharmaceutical benefits and the payment of a telephone allowance. They are also entitled to a range of concessions provided by state/territory and local governments. A number of additional supplementary benefits are also available, including Rent Assistance, Remote Area Allowance and Bereavement Payment. Table 7.22 shows the total number of service pensions as at 30 June 2002, and table 7.23 shows the number of pensions and annual expenditure for the years 1993–2002.

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Year Book Australia 2003

7.22

SERVICE PENSIONS, By conflict — 30 June 2002

World War l

World War ll(a)

Korea/ Malaya and FESR(b)

5 — 5

100 068 107 100 175

9 712 3 9 715

Veterans Old age/permanently incapacitated Tuberculosis(c) Total

Vietnam

Commonwealth and Allied

Gulf, Somalia, Cambodia

20 163 — 20 163

25 024 1 25 025

14 — 14

East Timor

Total

2 154 988 — 111 2 155 099

Wives and widows

104

77 982

7 141

15 131

24 052

7

2 124 419

Total

109

178 157

16 856

35 294

49 077

21

4 279 518

(a) Includes Merchant Mariners and total of three unknown. (b) Far East Strategic Reserve. (c) Eligibility on these grounds ceased on 2 November 1978. Source: Department of Veterans’ Affairs.

7.23

SERVICE PENSIONS AND EXPENDITURE Pensions in force at 30 June

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Veterans no. 210 406 204 793 198 739 192 342 186 228 179 673 172 654 165 940 161 655 155 099

Wives and widows no. 152 742 148 184 148 974 145 481 142 520 138 906 135 904 131 136 129 040 124 419

Total no. 363 148 352 977 347 713 337 823 328 748 318 579 308 558 297 076 290 695 279 518

Annual expenditure(a) $’000 2 389 886 2 382 307 2 426 579 2 609 460 2 644 118 2 602 122 2 680 409 2 587 972 2 832 326 2 778 546

(a) Includes associated allowances. Source: Department of Veterans’ Affairs.

Housing Sub-Program (Defence Service Homes (DSH) Scheme) The DSH Scheme provides financial benefits to recognise the contribution of certain men and women who have served Australia in either peacetime or wartime. The benefits include housing loan interest subsidies, comprehensive homeowners insurance cover at competitive rates, and home contents insurance (table 7.24). The Scheme was established in 1918 as the War Service Homes Scheme. In 1972 its name was changed to the Defence Service Homes Scheme to recognise the extension of eligibility to those with qualifying peacetime service.

The Commonwealth Government sold the DSH mortgage portfolio to Westpac Banking Corporation, which became the Scheme’s lender on 19 December 1988. Under the Agreement between the Commonwealth and Westpac, the Commonwealth subsidises Westpac for the low-interest loans provided. The subsidy is paid directly to Westpac and represents the difference between the concessional interest rate paid by the borrower and the agreed benchmark interest rate. Since 1918, the Defence Service Homes Act has made provision for DSH insurance. Building insurance is available to all persons eligible under the Defence Service Homes Act or the Veterans’ Entitlements Act. This benefit is also available to those who obtain assistance under the Defence Home Owner Scheme. DSH contents insurance, a comprehensive insurance package underwritten by QBE Mercantile Mutual Ltd, is available to veterans and the service community.

Chapter 7 — Income and welfare

7.24

221

DEFENCE SERVICE HOMES SCHEME

Units 1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02

Subsidised loans Loan accounts at 30 June Loans granted Interest subsidy

no. no. $m

101 887 7 171 45.1

96 518 6 861 53.0

91 029 6 518 29.2

80 802 6 380 12.2

73 530 5 477 17.2

69 677 4 850 15.4

63 468 2 182 14.7

57 096 2 224 12.0

Building insurance Homes insured at 30 June

no.

140 508

137 012

133 711

126 799

123 068

118 430

114 369

109 517

Source: Department of Veterans’ Affairs.

The maximum loan available under the DSH Scheme is $25,000 repayable over 25 years. The interest rate on new loans is capped at 6.85% for the term of the loan. Loans can be used to buy a home or strata unit, build or extend a home, buy a right of residence in a retirement village, refinance an existing mortgage, repair or modify an existing home, or obtain granny flat accommodation on another person’s property.

7 April 1994. Once liability has been accepted for an injury, a range of benefits may or may not apply in an individual case: n

Weekly incapacity payments are made on the basis of ongoing evidence of loss of ability to earn at a rate of 100% of pre-injury earning capacity for 45 aggregated weeks, less the current ability to earn. After 45 weeks the rate falls to 75% of pre-injury earning capacity if the client cannot work at all, gradually rising back up to 100% if some work is possible. Government funded superannuation entitlements are deducted from the weekly compensation benefits which would otherwise be payable. Different entitlement regimes apply under transitional provisions for certain employees and periods prior to 1 December 1988.

n

Permanent impairment payments are assessed in accordance with the approved guide. The minimum threshold is 10% whole of person impairment in most cases, with 100% attracting a maximum current entitlement of $169,459. Other rates and criteria apply for impairments arising under the currency of predecessor legislation prior to 1 December 1988.

n

Death benefits are payable to defined dependants of former and current members who die because of injuries arising from ADF employment. One payment up to a maximum current lump sum of $184,865 is payable in respect of all eligible dependants. A funeral benefit of $4,267 is also payable. A weekly amount of $61.61 is payable to dependent children of the deceased.

n

Additional Defence Act payments are available (with effect from 7 April 1994) to ‘top up’ payments for death of the deceased as well as permanent impairment payments to those with ‘severe injuries’. The severe injury adjustment and additional death benefit increases the lump sum amount payable to $222,138, with an additional $55,535 for each dependent child.

Military Compensation and Rehabilitation Service (MCRS) The objective of the MCRS is to ensure that current and former members of the ADF, who suffer an injury or disease which is causally related to employment in the ADF, are provided with compensation and rehabilitation benefits and services. The MCRS is responsible for providing benefits through the Safety, Rehabilitation & Compensation Act 1988 (Cwlth). Table 7.25 summarises activities under the MCRS for 2001–02.

7.25 MILITARY COMPENSATION AND REHABILITATION SERVICE, Activities — 2001–02 no.

Incapacity payees at 30 June 2002 (incl. dependent children) New primary injury claims received New permanent impairment claims received New rehabilitation referrals received New reconsideration requests received New applications made to the AAT All accounts paid (incl. medical, household services and attendant care)

2 431 6 471 4 543 945 1 546 318 85 763

Source: Department of Veterans’ Affairs.

The Safety, Rehabilitation & Compensation Act provides compensation cover for injury or disease sustained during peacetime service since 4 January 1949 and operational service since

222

Year Book Australia 2003

n

Medical benefits are payable in respect of the cost of medical treatment which is ‘reasonably obtained’ in relation to the accepted injury. Medical treatment is broadly defined.

n

Rehabilitation services are provided where applicable in the form of programs designed to return injured employees as closely as possible to pre-injury employment, mobility and lifestyle capacity. Programs include return to work retraining, and provision of medical and other aids and appliances as well as alterations to homes and motor vehicles.

n

Household Service and Attendant Care benefits are available at a statutory rate payable to ensure that eligible injured members are able to maintain their household and/or remain in their home.

n

Appeal and Review mechanisms are available for clients who do not agree with a decision made by MCRS. Rights include access to an internal review followed by application to the Administrative Appeals Tribunal (AAT), with a mandatory conciliation step.

Health Program Health care treatment is provided to people whose disabilities have been accepted by DVA as service-related, and for pulmonary tuberculosis, post-traumatic stress disorder and malignant neoplasia whether they are service-related or not. In addition, and subject to certain conditions, health care treatment in Australia is provided to certain veterans of Australia’s defence forces for all health conditions. Eligible veterans include: ex-prisoners of war; veterans and mariners of World War II aged 70 years or over who have qualifying service from that conflict; those receiving a Disability Pension at or above the maximum (100%) general rate; World War II veterans and mariners receiving both a Service Pension at any rate and a Disability Pension at 50% rate or higher; veterans, mariners or nurses who served in World War I; certain service pensioners; and returned ex-servicewomen of World War II. War widow(er)s and certain other dependants of deceased veterans are also entitled to treatment for all conditions. Younger veterans from post-World War II conflicts have needs additional to those of their older counterparts. These needs are addressed by a range of services which include integrated out-patient, in-patient and support services for the treatment and rehabilitation of veterans with war-related mental health conditions. Intensive in-patient treatment programs are available in

each state. Community-based psychological services are provided by the Vietnam Veterans’ Counselling Service and individual providers. Assistance is available for the Vietnam veteran community through a series of recent initiatives to support veterans and their families in response to the validated findings of the Vietnam Veterans’ Health Study. These include mental health support for veterans, their partners and children, assistance with treatment costs for Vietnam veterans’ children with spina bifida, cleft lip/palate, adrenal gland cancer and acute myeloid leukaemia, and preventive health programs for veterans. The role of the Australian Centre for Post-traumatic Mental Health has been expanded to address mental health problems affecting the wider veteran community, and funding is being increased for research into veterans’ health issues that may be the result of operational service. Vocational rehabilitation services are available to support those who are leaving the ADF, those at risk of losing employment, and those who wish to return to the workplace. Rehabilitation Allowance may be available to people whose pension entitlement is affected — the intention is that no financial loss should be incurred by individuals taking up paid employment. Safety net arrangements enable a return to former pension status in the event that employment cannot be sustained (this applies to pensioners receiving above general rate levels of Disability Pension or Service Pension through invalidity). With the transfer of the Repatriation General Hospitals to the states, or their sale to the private sector, hospital care is now provided through the Repatriation Private Patient Scheme. The Scheme provides acute hospital care for veterans or war widow(er)s in local facilities. Under the Scheme, a veteran or war widow(er) may be admitted directly to a local public hospital, former repatriation hospital or a contracted private Tier 1 veteran partnering hospital, as a private patient, in a shared ward, with the doctor of his or her choice. In short, the Repatriation Private Patient Scheme has an order of preference for hospital admissions according to three tiers: Tier 1 — all public hospitals, all former repatriation hospitals and selected veteran partnering private hospitals in some states. Tier 2 — contracted private hospitals. Tier 3 — non-contracted private hospitals.

Chapter 7 — Income and welfare

Financial responsibility for hospital and medical treatment in a public hospital, a former repatriation hospital or a veteran partnering private hospital is accepted by the department with no cost to the patient. Should a veteran require hospital care, the treating doctor would be able to arrange treatment at an appropriate local facility. On a state-by-state basis the Repatriation Commission sought tenders from private hospitals to be selected as veteran partnering hospitals, which allows the same access as public hospitals and former repatriation hospitals (i.e. where no prior financial authorisation is required for admission, once eligibility is established). These hospitals have been selected by the department because they are conveniently located for most veterans, offer a full range of services at competitive rates, and perform consistently to industry-approved standards. Under arrangements with state governments, entitled persons requiring custodial psychiatric care for a service-related disability are treated at departmental expense in state psychiatric hospitals. Entitled persons may also be provided with dental treatment through the Local Dental Officer Scheme, which comprised 6,900 local dental officers at 1 June 2000. Optometrical services, including the provision of spectacles, the services of allied health professionals, and a comprehensive range of aids, appliances and dressings, may be provided to entitled persons. In addition, entitled persons may be provided with pharmaceuticals through the Repatriation Pharmaceutical Benefits Scheme. Through the Repatriation Transport Scheme entitled persons are eligible to receive transport assistance when travelling to receive approved medical treatment. DVA also assists the veteran community through the Veteran and Community Grants Scheme, which aims to maintain and improve the independence and quality of life of members of the veteran and ex-service community through activities and/or services that sustain and/or enhance wellbeing. The grants focus on the delivery of funding through in-home, community and residential support streams. Veteran and Community Grants provide funding for projects

223

that address the needs of members of the veteran and ex-service communities through a range of support initiatives. These may be through: n

promotion of health issues and healthy lifestyles

n

supporting quality independent living at home

n

support for carers

n

reducing social isolation

n

provision of financial support for high quality residential care for members of the veteran community, including support for community aged care packages.

Veteran and Community Grants are intended to provide assistance to encourage the development of projects that will become financially viable and self-sufficient. Grant funds are not provided for recurrent or ongoing financial assistance. There are three funding rounds each financial year: in July, October and March. Following a major review of the delivery of its health services in 1999, the DVA has placed considerable emphasis on health promotion activities. Its five-year strategic plan targets seven key health priorities. As part of its health promotion activities, DVA also produces a range of health promotion resource materials for the veteran community. In January 2001, DVA introduced the Veterans’ Home Care program. This program extends the range of services provided to the veteran community to include personal care, domestic assistance, home and garden maintenance and respite care. Other services, such as delivered meals, are provided under arrangements with state and territory governments. Veterans’ Home Care services are available to eligible veterans and war widow(er)s who are assessed as needing care to remain in their homes. Veterans’ Home Care has a strong preventive focus, and particularly targets veterans and war widow(er)s with low-level care needs. It is anticipated that net savings will be made from the initiative due to better health outcomes for veterans, reducing avoidable illness, injury and associated health costs. Better health will mean that veterans spend less time in hospital and need fewer medications and other high cost services. More importantly, they will be able to lead fuller, more active lives.

224

Year Book Australia 2003

Vietnam Veterans’ Counselling Service (VVCS) The VVCS provides counselling to veterans of all conflicts and their families, as well as working with the ex-service community to promote understanding and acceptance of veterans’ problems. The VVCS is staffed by psychologists and social workers who have specialised knowledge about military service, particularly in Vietnam, and its impact on veterans and their families, especially the impact of post-traumatic stress. Access to counselling services for rural veterans and their families was greatly improved with the establishment of the Country Outreach Program in 1988, followed soon after by a toll-free 1800 telephone link to all VVCS centres. Recent service enhancement initiatives include the creation of group programs aimed at promoting better health for veterans. Table 7.26 shows use of the VVCS.

The Office of Australian War Graves (OAWG) OAWG manages the War Graves Program and maintains some 24,000 graves and memorials of Commonwealth war dead in 75 war cemeteries, plots and civil cemeteries in Australia, Papua New Guinea, Solomon Islands and Norfolk Island. OAWG also makes an annual contribution to the Commonwealth War Graves Commission, United Kingdom to assist with the maintenance of war cemeteries elsewhere in the world.

7.26 Type of counselling

Centre-based consultation Group session consultation Country outreach consultation

Source: Department of Veterans’ Affairs.

Another of OAWG’s major tasks is the official commemoration within Australia of those Australian veterans whose death post-war is accepted as due to their war service. In recent years OAWG has processed some 7,000 commemorations annually and it is anticipated this trend will continue during 2002–03. The Office has some 236,000 memorials under perpetual maintenance. OAWG constructs major memorials at significant locations where Australians have suffered and died. In recent years memorials have been dedicated at Hellfire Pass, Thailand; Le Hamel and Fromelles in France; and at Sandakan, North Borneo, Malaysia. The ANZAC Commemorative Site was constructed at North Beach, Gallipoli. In May 2001 the Hellenic–Australian Memorial Park was dedicated in Rethymno, Crete. The Office also cares for war graves and cemeteries in Australia which contain the graves of foreign service personnel and civilian internees who died during the two World Wars. It also maintains the graves of, and memorials to, former prime ministers of Australia and Governors–General, on behalf of the Department of the Environment and Heritage.

VIETNAM VETERANS’ COUNSELLING SERVICE

1995–96 33 411 724 20 723

(a) Estimates.

OAWG represents the Australian Government’s interest in the maintenance of graves of Australian service personnel and war memorials that commemorate those Australians who died in other conflicts, in overseas countries. These include the United Nations Memorial Cemetery, Pusan, Korea, the British Commonwealth Forces Cemetery, Yokohama, Japan, and some cemeteries in Malaysia.

1996–97 (a)30 000 784 21 523

1997–98 (a)30 000 500 27 000

1998–99 (a)27 000 485 (a)26 000

1999–2000 27 421 891 26 885

2000–01 29 991 678 28 063

2001–02 31 603 1 011 31 353

Chapter 7 — Income and welfare

Bibliography ABS publications Australian Economic Indicators (1350.0), article ‘Household Income and its Distribution’ Australian Historical Population Statistics — on AusStats (3105.0.65.001) Australian System of National Accounts, 2000–01 (5204.0) Government Benefits, Taxes and Household Income, 1998–99 (6537.0) Household Expenditure Survey: Australia: Detailed Expenditure Items, 1998–99 (6535.0) Household Expenditure Survey: Australia: Summary of Results, 1998–99 (6530.0) Income Distribution, Australia (6523.0) Measuring Australia’s Progress (1370.0) Population Projections, Australia, 1999–2101 (3222.0)

Other publications Centrelink 2002, A Guide to Commonwealth Governments Payments, 20 March–30 June 2002 Department of Family and Community Services: Annual Report FaCS Customers: A statistical overview FaCS Labour Market and Related Payments Department of Health and Ageing, Annual Report Department of the Treasury: Annual Report Budget Paper No. 5, Intergenerational Report 2002–2003 Department of Veterans’ Affairs, Annual Report

Web sites Centrelink, Commonwealth Department of Education, Science and Training, Commonwealth Department of Employment, Workplace Relations and Small Business, Commonwealth Department of Family and Community Services, Commonwealth Department of Health and Ageing, Commonwealth Department of Veterans’ Affairs, Office for Older Australians,

225

8

Housing Introduction

229

Types of dwellings

229

Housing condition

230

Repairs and maintenance

231

Number of bedrooms

231

Home ownership and renting

232

Housing costs and income

234

Housing and lifestyle

235

Life cycle and housing

236

Young households (under 35 years)

237

Families with children

238

Older persons (65 years and over)

239

Housing costs — capital cities

240

House prices

241

Value of dwellings

242

Housing finance for owner occupation

242

Housing assistance

243

Public housing

245

Home purchase assistance

245

Rent assistance

246

Crisis accommodation

247

Housing assistance program for Indigenous Australians

247

National Indigenous housing reforms

248

Home ownership

249

Other programs

249

Bibliography

251

Chapter 8 — Housing

Introduction Housing satisfies the essential needs of people for shelter, security and privacy. Shelter is recognised throughout the world as a basic human right. The adequacy or otherwise of housing is an important component of individual wellbeing. Housing also has great significance in the national economy, with its influence on investment levels, interest rates, building activity and employment. The ways in which Australian families and individuals are housed reflect social, political and economic factors over the last century. For example, public health concerns towards the end of the 19th century resulted in legislation in the states which gave local government the authority to make building regulations and inspect dwellings, a responsibility they have to this day. Also at that time, demand for housing exceeded supply, rents were high, and overcrowding and slum conditions continued to be a problem into the 20th century. This led to states introducing further legislation for the provision of public rental housing for low income earners. In the 1920s, the Commonwealth moved to provide financial assistance for access to home ownership to moderate and low income groups, and a number of policy initiatives over recent decades have focused on this goal. Governments have continued to actively promote home ownership as part of an overall policy directed at achieving people’s self-reliance in housing, and a quality of housing adequate for their needs. The predominance of separate, free standing houses situated on ‘quarter acre blocks’ within the mainland capital city areas is a feature of Australian urban development. More recently, governments have moved to promote higher housing densities, to provide greater choice of housing types and to make better use of existing infrastructure. This has resulted in changes to urban planning and building regulation. There have been some changes in the nature of housing, and efficiencies in the use of land and infrastructure. However, even within this new framework, green field developments and free standing houses still predominate. Households in

229

such developments are still largely reliant on the family car to access many neighbourhood facilities and services. This chapter provides information on the types of dwellings Australians live in and their tenure arrangements, the affordability of housing, and the government assistance provided through housing and income support programs. It is based largely on information from the 1999–2000 Survey of Income and Housing Costs, but also draws on the 1999 Australian Housing Survey, house price index data, data about finance commitments for owner occupation, and administrative data relating to public housing and rent assistance. Care should be taken when comparing statistics from different sources because of differences in the timing, conceptual bases and scope of individual statistical sources.

Types of dwellings Table 8.1 shows the different dwelling structure types in each state and territory in 1999–2000. The table shows that the separate house is the most popular type of dwelling in Australia, making up almost 80% of all dwellings. Tasmania had the highest proportion of separate houses (87%) and the Northern Territory the lowest (70%). Flats, units or apartments comprise 10% of dwellings in Australia. The Northern Territory (16%) had the highest proportion of flats, units or apartments, followed by New South Wales (14%). Western Australia and Tasmania had relatively low percentages of flats, units or apartments (5%). Semidetached, row or terrace houses and townhouses accounted for 10% of dwellings in Australia. There was a substantially greater proportion of semidetached housing than of flats, units or apartments in Western Australia, South Australia and Tasmania. Conversely, New South Wales and the Northern Territory had substantially more flats, units or apartments than semidetached housing.

230

Year Book Australia 2003

8.1 ALL HOUSEHOLDS, By dwelling structure and state/territory — 1999–2000

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory(b) Australian Capital Territory Australia

Semidetached/row or terrace house/townhouse % 9.6 9.2 7.1 12.9 15.1 7.6 *11.0 *11.6 9.9

Separate house % 75.4 81.7 83.3 77.5 79.3 86.7 70.0 78.4 79.3

Flat/ unit/apartment % 14.4 8.6 8.0 8.8 5.4 *4.6 *15.5 *9.5 10.1

Total(a) % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total(a) ’000 2 406.0 1 753.2 1 335.8 612.1 719.1 187.6 53.8 120.5 7 188.1

(a) Includes other dwelling structure. (b) Excludes remote and sparsely settled areas. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Housing condition Most Australian dwellings were reported to be in good condition in the 1999 Australian Housing Survey, with the majority of households (80%) reporting no major structural problems. For 8.2

those with problems, cracks in walls or floors were the most often reported (by 473,300 or 7% of households). Other problems were sinking or moving foundations (5%), rising damp (4%) and walls or windows out of plumb (4%) (table 8.2).

ALL HOUSEHOLDS, By dwelling structure and physical condition — 1999 Separate house ’000

Semidetached ’000

Flat ’000

Total(a) ’000

Major structural problems Rising damp Major cracks in walls/floors Sinking/moving foundations Sagging floors Walls/windows out of plumb Wood rot/termite damage Major electrical problems Major plumbing problems Major roof defect Other problems Not known No major structural problems Total(b)

218.5 345.6 284.9 200.2 234.2 186.1 73.4 168.5 136.7 84.7 61.7 4 649.6 5 735.4

42.5 51.0 31.4 23.2 27.1 13.0 *7.8 25.0 14.7 *8.0 12.7 494.5 641.4

46.2 74.1 20.5 *9.4 35.1 23.4 21.7 55.2 26.8 25.7 25.2 569.3 798.5

308.3 473.3 338.3 235.8 298.4 224.8 104.2 249.3 181.2 121.0 99.6 5 747.9 7 216.9

Need for interior repairs Essential and urgent need Essential need Moderate need Desirable but low need No need Total

67.0 172.2 642.8 1 611.4 3 242.0 5 735.4

*6.3 26.8 66.3 153.2 388.8 641.4

20.3 37.6 111.8 205.8 422.9 798.5

94.2 239.6 825.3 1 980.1 4 077.6 7 216.9

Need for exterior repairs Essential and urgent need Essential need Moderate need Desirable but low need No need Total

66.7 206.5 721.3 1 657.1 3 083.8 5 735.4

*5.6 17.1 59.3 144.9 414.5 641.4

*7.7 27.2 102.6 185.3 475.7 798.5

80.5 253.3 888.6 1 993.7 4 000.7 7 216.9

Physical condition

(a) Includes other dwelling structure. (b) Components do not add to total as more than one response is allowed. Source: Australian Housing Survey — Housing Characteristics, Costs and Conditions, 1999 (4182.0).

Chapter 8 — Housing

231

Some 43% of households reported that repairs were required to the inside of their home and a similar proportion (45%) reported that repairs were required to the outside of the dwelling. However, of these, almost two-thirds reported the repair to be desirable but low need.

more bedrooms and 20% had two bedrooms (table 8.4). Of separate houses, 58% had three bedrooms, while two bedroom dwellings were more common in semidetached houses and in flats, units and apartments (46% and 60% respectively).

Repairs and maintenance

Nearly one-fifth (19%) of three bedroom dwellings had only one person living in them, over a third (36%) had only two persons, a further 20% had three persons, and 18% had four persons (table 8.5). Of two bedroom dwellings, most had one or two persons living in them (43% and 40% respectively).

Some 55% of households reported that repairs or maintenance had been carried out to their current dwelling within the last 12 months. The most commonly reported types of repair or maintenance were painting (31%), plumbing (24%) and electrical work (17%) (table 8.3).

Number of bedrooms

Information on the incidence of other types of rooms such as bathrooms, toilets, laundries and lounge/dining/family rooms is available from the 1999 Australian Housing Survey.

One indicator of dwelling size is the number of bedrooms. In 1999–2000, half of all dwellings in Australia had three bedrooms, 24% had four or

8.3

ALL HOUSEHOLDS, By tenure and landlord type and repairs/maintenance — 1999 Owner

Type of repairs/maintenance in last 12 months

Painting Roof repair/maintenance Tile repair/replacement Electrical work Plumbing Other No repairs/maintenance(b) Total(c)

Renter

Without a mortgage

With a mortgage

State/ territory housing authority

’000 835.7 355.5 145.1 399.0 529.6 226.4 1 374.4 2 800.3

’000 912.9 256.1 179.5 500.6 568.6 257.0 897.3 2 256.1

’000 93.2 25.4 23.7 55.2 96.6 59.9 155.1 368.8

Private landlord

Total renters(a)

Rent free

Other tenure

Total

’000 327.7 121.7 84.3 243.2 424.4 190.0 632.6 1 463.2

’000 452.0 161.3 115.7 321.8 569.9 268.9 842.6 1 966.6

’000 31.5 16.4 *6.6 20.8 24.9 11.9 61.0 120.9

’000 27.0 8.4 5.8 12.4 11.0 8.8 36.8 73.0

’000 2 259.1 797.6 452.7 1 254.7 1 704.0 773.0 3 212.2 7 216.9

(a) Includes other landlord type. (b) Includes households which did not know whether repairs/maintenance had been done. (c) Components do not add to total as more than one response is allowed. Source: Australian Housing Survey — Housing Characteristics, Costs and Conditions, 1999 (4182.0).

8.4

ALL HOUSEHOLDS, By dwelling structure and number of bedrooms — 1999–2000

One bedroom 2 bedrooms 3 bedrooms 4 or more bedrooms Total(b)

Separate house ’000 50.2 639.7 3 311.1 1 696.4 5 697.4

Semidetached, row or terrace house, townhouse ’000 67.3 327.0 285.7 28.8 708.9

(a) Includes other dwelling structure. (b) Includes bedsits and dwellings with zero bedrooms. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Flat/unit/apartment ’000 194.0 437.3 81.0 *4.5 725.8

Total(a) ’000 329.1 1 421.9 3 691.2 1 733.7 7 188.1

232

Year Book Australia 2003

8.5 ALL HOUSEHOLDS, By number of persons and number of bedrooms — 1999–2000

One bedroom 2 bedrooms 3 bedrooms 4 or more bedrooms Total(a)

One person % 77.5 43.1 19.1 6.8 24.5

Two persons % 19.5 39.8 35.7 23.3 32.7

Three persons % *1.8 11.2 19.7 17.5 16.5

Four persons % *1.1 4.6 18.1 26.1 16.2

Five or more % **– 1.3 7.4 26.3 10.1

Total % 100.0 100.0 100.0 100.0 100.0

Total ’000 329.1 1 421.9 3 691.2 1 733.7 7 188.1

(a) Includes bedsits and dwellings with zero bedrooms. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Home ownership and renting

Around 90% of owners lived in separate houses in 1999–2000. Of renter households, 53% lived in separate houses and 26% lived in flats, units or apartments.

Of the 7.2 million households in Australia in 1999–2000, 71% were living in their own home, and 26% were renting their dwelling from a private landlord or a state or territory housing authority (table 8.6).

Over one-third of households (34%) that owned their own home outright were couples with no children. One-parent households accounted for 6% of outright owners, and lone-person households made up 27% (based on table 8.7).

In 1999–2000, 38% of households owned their homes outright. In addition, 32% of households were paying off a mortgage or loan secured against their dwelling. Of the almost two million households renting their dwellings, 74% were renting from a private landlord, 20% were renting from a state or territory housing authority and the remaining 6% from other landlords such as the owner/manager of a caravan park, an employer (including a government authority) or a community or church group.

Of couple households with dependent children only, the majority (79%) were owners, while 20% were renting. Of one-parent families, 49% were home owners, 30% were renting from a private landlord and 17% were renting from a state or territory housing authority.

8.6 ALL HOUSEHOLDS, By dwelling structure and tenure and landlord type — 1999–2000

Tenure and landlord type

Owner without a mortgage Owner with a mortgage Renter State/territory housing authority Private landlord Total(b) Other tenure(c) Total

Separate house ’000 2 455.4 2 094.9

Semidetached/row or terrace house/townhouse ’000 171.7 134.8

Flat/ unit/apartment ’000 106.2 78.8

Total(a) ’000 2 758.3 2 315.7

216.4 752.0 1 040.5

106.0 269.0 394.7

79.1 414.7 510.9

402.0 1 446.4 1 962.8

106.6

*7.7

29.8

151.4

5 697.4

708.9

725.8

7 188.1

(a) Includes other dwelling structure. (b) Includes other landlord type. (c) Includes rent free and life tenure. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Chapter 8 — Housing

8.7

233

ALL HOUSEHOLDS, By tenure and landlord type and household composition — 1999–2000 Owner

Renter

Without a mortgage ’000

With a mortgage ’000

State/ territory housing authority ’000

936.6

448.0

37.5

236.0

287.5

22.7 1 694.9

369.2 414.1 1 719.9

984.8 315.9 1 748.7

47.4 24.5 109.5

272.9 57.6 566.4

345.9 92.1 725.5

*19.7 1 719.7 n.p. 825.2 45.5 4 239.7

166.8 745.4 126.2

152.9 293.2 120.9

113.9 164.0 *14.6

199.9 413.4 266.6

326.6 614.8 295.8

*9.8 656.0 85.2 1 738.6 *10.9 555.8

2 758.3

2 315.7

402.0

1 446.4 1 962.8

151.4 7 188.1

Couple, one family Couple only Couple with dependent children only Couple — other(c) Total One parent, one family(d) Lone person Other Total

Private landlord ’000

Total(a) ’000

Other tenure(b) ’000

Total ’000

(a) Includes other landlord type. (b) Includes rent free and life tenure. (c) Includes couples with non-dependent children and may include other family members. (d) Includes one-parent families with dependants or non-dependent children and may include other family members. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Tenure patterns vary across states and territories. Victoria had the highest proportion of overall home ownership, with 76% of dwellings either being purchased or owned outright (table 8.8). The lowest proportion of overall home ownership (56%) was in the Northern Territory. The Australian Capital Territory, the Northern Territory and Western Australia had the highest proportion of households still purchasing their home (42%, 38% and 38% respectively), reflecting their younger populations.

8.8

The Northern Territory had the highest proportion of renters at 40%. This was considerably higher than the national rate of 27%. The proportion of households renting from private landlords ranged from 17% in South Australia, Victoria and Tasmania to 25% in Queensland. The differences in tenure partly reflect differences in the age and life structures across states and territories (see the section Housing and lifestyle).

ALL HOUSEHOLDS, By tenure and landlord type and state/territory — 1999–2000 Owner

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory(c) Australian Capital Territory Australia

Without a mortgage % 39.8 43.6 34.6 37.5 31.5 41.7 *17.7 25.8 38.4

With a mortgage % 30.5 32.0 31.7 32.0 37.9 30.3 *38.3 42.4 32.2

Renter State/territory housing authority % 5.9 4.1 4.7 9.5 5.4 *6.5 *9.4 *10.2 5.6

Private landlord Total(a) % % 21.0 28.1 17.0 22.1 24.7 31.6 16.7 28.2 20.0 27.6 17.0 25.1 *22.4 39.5 19.4 30.3 20.1 27.3

Other tenure(b) % 1.6 2.3 2.1 *2.3 3.0 *2.9 **4.5 **1.6 2.1

Total % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

(a) Includes other landlord type. (b) Includes rent free and life tenure. (c) Excludes remote and sparsely settled areas. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Total ’000 2 406.0 1 753.2 1 335.8 612.1 719.1 187.6 53.8 120.5 7 188.1

234

Year Book Australia 2003

Housing costs and income Housing costs cover different items for different types of tenure. For owners who have no mortgage, housing costs comprise the rates paid. For owners with a mortgage, housing costs comprise the value of the mortgage payments as well as property rates. For households renting their dwelling, housing costs comprise the regular rental amounts paid to landlords.

The Survey of Income and Housing Costs 1999–2000 found that housing costs for owners with a mortgage, at an average of $210 per week, were higher than for other forms of tenure (table 8.9). Households renting from private landlords had mean weekly housing costs of $166, compared to $71 for tenants of state or territory housing authorities.

8.9 OWNER AND RENTER HOUSEHOLDS, Housing costs by household composition — 1999–2000 Couple, one family Couple with Couple dependent only children only

Tenure and landlord type

Couple — other

Total couples, one family

One parent, one family

Lone person

Other

Total

MEAN WEEKLY HOUSING COSTS ($) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(a) Total owner and renter households

20 224

27 219

25 200

23 217

22 167

18 178

33 248

22 210

81 178 162

105 180 163

132 180 165

103 179 163

71 152 121

49 133 107

*76 201 190

71 166 143

99

166

108

128

106

79

167

117

MEAN GROSS WEEKLY INCOME ($) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(a) Total owner and renter households

721 1 294

1 240 1 274

1 489 1 660

1 017 1 349

792 825

394 1 143 768 1 599

841 1 254

455 1 048 970

576 913 867

796 1 173 1 057

584 995 932

419 581 522

220 *831 532 1 252 439 1 243

398 853 756

917

1 184

1 506

1 141

663

477 1 299

953

MEAN HOUSING COSTS AS A PROPORTION OF INCOME (%) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(a) Total owner and renter households

3 17

2 17

2 12

2 16

3 20

4 23

3 16

3 17

18 17 17

18 20 19

17 15 16

18 18 18

17 26 23

23 25 24

*9 16 15

18 20 19

14

7

11

16

17

13

12

11

HOUSEHOLDS (’000) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(a) Total owner and renter households

936.6 448.0

369.2 984.8

414.1 315.9

1 719.9 1 748.7

166.8 152.9

745.4 126.2 2 758.3 293.2 120.9 2 315.7

37.5 236.0 287.5

47.4 272.9 345.9

24.5 57.6 92.1

109.5 566.4 725.5

113.9 199.9 326.6

164.0 *14.6 402.0 413.4 266.6 1 446.4 614.8 295.8 1 962.8

1 672.1

1 700.0

822.1

4 194.2

646.3

1 653.4 542.9 7 036.8

HOUSEHOLD AND DWELLING SIZE (no.) Average persons in household Average bedrooms in dwelling

2.0 3.0

4.0 3.4

3.9 3.5

3.2 3.2

(a) Includes other landlord type. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

2.7 3.0

1.0 2.4

3.0 2.9

2.6 3.0

Chapter 8 — Housing

235

preferences. An understanding of the relationships between life-cycle stage, income, housing costs and level of investment in home ownership can be useful in developing policies which enable home purchase among those who would otherwise find this difficult.

For many households, weekly housing costs are a significant proportion of their gross weekly income. In 1999–2000, housing costs represented 17% of gross weekly income for owners with a mortgage, 18% of gross weekly income for tenants of a state or territory housing authority and 20% of gross weekly income for tenants renting from a private landlord (table 8.9). Housing costs as a proportion of income differed depending on tenure type, landlord type and household composition (graph 8.10 and table 8.11).

There are long-term benefits in home ownership. Initially, the cost of home purchase is often far greater than renting (due to the costs of deposits and fees, as well as ongoing mortgage repayments). However, the much lower costs associated with owning a home outright, and the investment that a home represents, can be major factors in the ongoing economic wellbeing of many Australians, particularly as many retire on considerably reduced incomes.

See also the section Housing costs — capital cities, which focuses on capital city households, drawing on results from the same survey

Housing and lifestyle

The relationship between housing needs and life-cycle stages were explored in the 1999 Australian Housing Survey, and are the focus of this section.

As people progress through different life-cycle stages and their family structures and financial situations change, so do their housing needs and

8.10 MEAN HOUSING COSTS AS A PROPORTION OF INCOME, By tenure and landlord type, and household composition — 1999–2000 % 30

Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord

20

10

0 Couple only, one family

Couple with dependants, one family

One parent with dependants, one family

Lone person

Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

8.11

OWNER AND RENTER HOUSEHOLDS, Housing costs as a proportion of income — 1999–2000 Renter

25% or less 26–30% 31–50% More than 50% Total(b)

Units % % % % %

Owner without a mortgage 97.6 n.p. *0.5 *0.7 100.0

Owner with a mortgage 71.4 9.0 13.2 5.6 100.0

State/ territory housing authority 82.1 12.2 *4.1 *1.3 100.0

Total owner and rental households

’000

2 758.3

2 315.7

402.0

Housing costs as a proportion of income

(a) Includes other landlord type. (b) Includes households with nil or negative total income. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

Private landlord 57.9 9.3 21.7 9.6 100.0

Total(a) 64.5 9.5 17.1 7.7 100.0

Total 79.8 5.7 9.3 4.3 100.0

1 446.4

1 962.8

7 036.8

236

Year Book Australia 2003

These measures differ somewhat from the average weekly housing costs reported in the Survey of Income and Housing Costs 1999–2000, and shown in the earlier section Housing costs and income, due to different populations, collection procedures and reference periods. However the orders of magnitude of the two sets of estimates are similar.

For the purpose of the survey, ongoing housing costs comprised: n

mortgage or loan repayments (secured or unsecured) where the purpose of the loan is to buy or build, add to or alter the dwelling

n

rental payments

n

water and general council rates

n

land tax payments

n

body corporate or strata title payments

n

expenditure on repairs and maintenance for the dwelling.

Most Australian households live in separate houses (80% in 1999). However, as with tenure, the type and size of dwellings and housing costs vary across different life-cycle groups.

Life cycle and housing

Only payments which related to the dwelling occupied at the time of interview were included. Payments for other dwellings were not regarded as housing costs, even if the usual dwelling had been offered as security.

The life-cycle groups whose housing circumstances are discussed in this section include:

The survey estimated that the average weekly housing costs for all households were $129. Outright owners (those without a mortgage) had the lowest average weekly housing costs ($47), while those with a mortgage had the highest costs, spending an average of $228 per week (although some of the cost for this group reflects the fact that 54% of these households chose to pay more than their minimum mortgage repayment). On average, those households which were renting paid $146 per week in housing costs.

n

lone person aged under 35 years

n

couple only, reference person aged under 35 years

n

couple, eldest child aged under 5 years

n

couple, at least one dependent child aged 15 years or over

n

lone-parent family with dependent children

n

couple only, reference person aged 65 years or over

n

lone person aged 65 years or over.

Dependent children are children aged under 15 years plus full-time students aged 15–24 years living with a parent and without a partner or child of their own in the household. 8.12 HOME OWNERS, By life-cycle group 1994 1999

Lone person only, aged under 35 Couple only, reference person aged under 35 Couples with eldest child aged under 5 Couples with at least one child aged 15 or over One-parent families Couples with reference person aged 65 or over Lone person only, aged 65 or over 0

25

50 %

75

Source: ABS data available on request, 1994 and 1999 Australian Housing Surveys.

100

Chapter 8 — Housing

The reference person for each household is chosen by applying, to all usual residents aged 15 years and over in the household, the selection criteria below, in order of precedence: n

the person with the highest tenure type ranked from owner without a mortgage, owner with a mortgage, renter, other tenure, or

n

the person with the highest income, or

n

the oldest person.

In 1999, 70% of Australian households owned their homes. The tenure of a household is strongly related to life-cycle stages, generally following a pattern of renting in early adulthood, moving to home purchase and mortgages as partnerships are formed and children are born, and owning the home outright in older age. However for some, family breakdown disrupts this pattern. Between 1994 and 1999, the home ownership rates of various life-cycle groups showed little change. However, there were two exceptions. For young couple households without children, home ownership fell from 60% in 1994 to 52% in 1999,

8.13

237

while home ownership for lone-parent families increased over the period (from 35% to 40%) (graph 8.12).

Young households (under 35 years) In 1999, young lone-person and couple only households (those with a reference person aged under 35 years), comprised 10% of all households in Australia (each group around 5%). People in these households are generally more mobile. Many are studying or starting their careers, and are likely to be on lower incomes than they will be at later stages in their lives. In many cases, they are yet to move into home ownership. Young lone-person households were most likely of all life-cycle groups to be renting (62%), with most of these (84%) renting from private landlords (table 8.13). Less than one-third of young lone-person households had moved into home ownership, and most that had, did so with a mortgage. However, young people are more inclined to move into home ownership as they form couples. Just over half of young couple households without children owned their own home. As was the case for young lone-person households, most of these couples had a mortgage.

YOUNG PEOPLE, Selected characteristics — 1999 Household composition Couple only, reference person aged under 35 years

Units

Lone person aged under 35 years

Tenure type Owner without a mortgage Owner with a mortgage Renters

% % %

4.8 27.0 62.2

5.4 46.3 46.4

Average housing costs as a proportion of income Owner without a mortgage Owner with a mortgage Renters All households

% % % %

*7.5 26.6 22.8 22.2

*9.5 20.6 13.8 16.9

Proportion of income spent on housing costs(a) 25% or less(b) More than 50%

% %

54.9 12.2

75.2 3.7

Proportion in a separate house

%

46.1

67.5

Average weekly housing costs Owner without a mortgage Owner with a mortgage Renters All households

$ $ $ $

*53 227 130 143

*139 324 164 234

no. ’000

2.1 327.6

2.6 366.2

Average number of bedrooms in dwelling Total households

(a) Households with unknown housing costs and households with nil or negative income were excluded prior to the calculation of percentages. (b) Includes households which reported no housing costs. Source: Australian Housing Survey — Housing Characteristics, Costs and Conditions, 1999 (4182.0).

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Year Book Australia 2003

In keeping with their larger household size, young couples without children lived in dwellings where the average number of bedrooms was higher than for young lone persons (2.6 compared with 2.1). Young couple households without children were also more likely than young lone-person households to live in separate dwellings (68% compared with 46%), with the majority of young singles living in semidetached dwellings or flats. Reflecting their lower household incomes, young lone persons spent on average over a fifth (22%) of their income on housing. Young couple households without children (many of whom are on dual incomes) on average spent a lower proportion of their income on housing costs (17%) than young lone-person households, despite the fact that they had much higher average weekly housing costs ($234 compared with $143).

Families with children As families are formed and grow, housing needs and preferences change. The birth of children increases family size and often results in the household shifting back to dependence on a single income when children are very young. The trend to home purchase and moving into larger dwellings increases as couples and their children grow older. At this time, parents’ incomes are likely to be higher than those in younger life-cycle groups due to their more established careers and the move of parents (mainly mothers) back into the workforce and full-time employment. Of couple families with all children aged under 5 years, 69% were home owners (56% were paying off a mortgage) (table 8.14). Among households containing couple families with older children (at least one aged 15 years or over), home ownership was higher (86%) than for those with younger children and over a third (35%) owned their home outright. Income levels vary considerably over a person’s life cycle. Household incomes for couples, and hence their capacity to pay for larger, more expensive homes, usually increase as their children grow older. In 1999, most couple households with young children lived in separate houses and in homes with three or more bedrooms (85% and 78% respectively). However, couple households with older dependent children were even more likely to do so (96% and 97% respectively). Despite this, housing costs for

couple households with young children were generally higher ($211 on average per week, representing 19% of their average weekly income) than for couples with older children ($159 which constituted 10% of their weekly income). This is likely to reflect the fact that couple households with young children usually have less equity in their homes than couples with older children. The former households are also more likely to have bought their home more recently and therefore to have purchased their house at a higher price. For those who owned a house, average weekly housing costs for couples with young children ranged from $259 for those with a mortgage to $116 for those without a mortgage. For couples with older children, average weekly housing costs ranged from $225 for those with a mortgage to $67 for those without a mortgage. In contrast, households containing couple families which were renting had similar costs regardless of the age of children present. When families are disrupted through divorce or separation, the trend towards home ownership is often reversed, reflecting reduced household incomes and the splitting of family assets. As a result, the household may move from home ownership back to renting, and also into a smaller, more affordable home. Lone-parent households with dependent children were more likely to be renting (58%) than to own their home (40%), and they were the life-cycle group most likely to be renting through a state or territory housing authority (21%). In 1999, while most lone-parent households with dependent children lived in separate dwellings (76%) and in dwellings with at least three bedrooms (77%), these proportions were lower than for couples with dependent children. Average weekly housing costs for lone-parent households with dependent children were $124, or 22% of their average weekly income. Among these households, private renters paid $152, on average, in housing costs which represented 31% of average weekly income. Lone-parent households with dependent children were more than three times as likely as couple households with at least one dependent child aged 15 years or over to spend more than 25% of their income on housing (44% compared with 13%). Just over 10% of lone-parent households with dependent children spent more than 50% of their income on housing.

Chapter 8 — Housing

8.14

239

FAMILIES WITH CHILDREN, Selected characteristics — 1999 Household composition Couple with at least one dependent child aged 15 years or over

Lone parent with dependent children

Units

Couple with eldest child aged under 5 years

Tenure type Owner without a mortgage Owner with a mortgage Renters

% % %

12.7 55.9 28.5

35.0 50.6 12.4

15.0 24.8 58.3

Average housing costs as a proportion of income Owner without a mortgage Owner with a mortgage Renters All households

% % % %

9.1 21.1 19.4 18.8

4.5 13.8 15.2 10.5

7.0 24.5 27.4 22.1

Proportion of income spent on housing costs(a) 25% or less(b) More than 50% Proportion in a separate house

% % %

69.0 5.7 84.5

87.5 2.8 95.6

56.2 10.3 75.9

Average weekly housing costs Owner without a mortgage Owner with a mortgage Renters All households

$ $ $ $

116 259 168 211

67 225 169 159

53 181 120 124

no. no.

3.0 3.4

3.6 4.4

3.0 2.8

’000

415.4

708.9

415.5

Average number of bedrooms in dwelling Average household size Total households

(a) Households with unknown housing costs and households with nil or negative income were excluded prior to the calculation of percentages. (b) Includes households which reported no housing costs. Source: Australian Housing Survey — Housing Characteristics, Costs and Conditions, 1999 (4182.0).

Older persons (65 years and over) Home ownership is very high among older people, with outright ownership by far the most common tenure type for Australians aged 65 years and over. The benefits of this to older people include lower housing costs, security of tenure, and having an asset that may be realised for consumption or passed on to later generations as inheritance. In 1999, older persons living in a couple only household (those where the reference person was aged 65 years or over) had very high ownership rates (91%), with 88% owning their home outright. Older lone-person households (which are often formed after a partner dies) had a home ownership rate of 76%, with 73% owning their home outright. Older lone-person households were more likely to be renting than older couple only households (19% compared with 7%), with 10% of older people living alone renting from state or territory housing authorities.

In 1999, the average weekly income of older person households was lower than for any other life-cycle group (reflecting the likelihood that household members had retired). However, average weekly housing costs for this group were also lower than for other life-cycle groups ($44 for couple households and $40 for lone-person households). Even for those older person households with a mortgage, average weekly housing costs were relatively low ($91 for older couple households and $62 for older lone-person households) (table 8.15). This partly reflects the fact that many of these households purchased their first home some decades earlier when home prices and mortgages were considerably lower. However, for the small proportion who were renting, housing payments consumed a relatively large proportion of their incomes. The 7% of older lone-person households which were renting from private landlords spent a higher proportion of their income (49%) on housing costs than any other life-cycle group.

240

Year Book Australia 2003

8.15

OLDER PEOPLE, Selected characteristics — 1999 Household composition

Units

Couple only, reference person aged 65 years or over

Lone person aged 65 years or over

Tenure type Owner without a mortgage Owner with a mortgage Renters

% % %

87.6 3.8 6.8

72.8 3.3 19.3

Average housing costs as a proportion of income Owner without a mortgage Owner with a mortgage Renters All households

% % % %

7.4 15.7 26.7 8.8

11.4 22.0 33.7 15.2

Proportion of income spent on housing costs(a) 25% or less(b) More than 50%

% %

90.1 2.7

81.6 6.0

Proportion in a separate house

%

86.5

64.8

Average weekly housing costs Owner without a mortgage Owner with a mortgage Renters All households

$ $ $ $

38 91 103 44

31 62 70 40

Average number of bedrooms in dwelling Total households

no.

2.9

2.4

’000

582.5

681.8

(a) Households with unknown housing costs and households with nil or negative income were excluded prior to the calculation of percentages. (b) Includes households which reported no housing costs. Source: Australian Housing Survey — Housing Characteristics, Costs and Conditions, 1999 (4182.0).

Reflecting their smaller household size, the homes of older lone persons were more likely to be smaller than those of older couples. Older lone persons were less likely to live in separate dwellings than older couples (65% compared with 87%), and more likely to be living in dwellings with fewer bedrooms than older couples (2.4 bedrooms on average compared with 2.9). For many older people, the onset of diminished health and disabilities, and the need for security and ready access to services such as public transport, are often key considerations in their choice of housing, especially after the death of a partner. The growing proportion of older persons (in particular of persons aged 80 years and over) in Australia has led to the emergence of new types of housing such as self-care dwellings in

retirement villages. In 1999, 1% of older couples and 3% of older lone persons were living in such accommodation.

Housing costs — capital cities In 1999–2000, the mean weekly housing costs for households in all capital cities were $133 (table 8.16). However, there was considerable variation between capital cities. Hobart had the lowest mean housing costs at $87 per week. While Sydney had the highest mean housing costs for most tenure and landlord types, Canberra recorded the highest mean housing costs for total households ($161 compared to Sydney’s $155) because of the larger proportion of households in Canberra purchasing their homes.

Chapter 8 — Housing

241

8.16 CAPITAL CITY OWNER AND RENTER HOUSEHOLDS, Housing costs — 1999–2000 Tenure and landlord type

Sydney Melbourne Brisbane Adelaide

Perth Hobart Canberra

All capital cities(a)

MEAN WEEKLY HOUSING COSTS ($) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(b) Total owner and renter households

26 277

24 225

24 198

21 163

18 211

20 144

30 259

24 228

78 227 195

76 168 152

70 156 139

70 143 114

65 142 126

*78 *122 109

*73 169 134

74 182 157

155

123

126

98

129

87

161

133

797 870 703 1 066 1 237 1 095

1 037 1 479

945 1 337

MEAN GROSS WEEKLY INCOME ($) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(b)

995 1 485

1 003 1 300

835 1 372

480 1 066 947

401 927 836

380 794 761

382 817 646

334 790 715

*470 *608 569

*380 1 040 819

421 928 826

Total owner and renter households

1 132

1 068

1 004

843

985

797

1 160

1 047

MEAN HOUSING COSTS AS A PROPORTION OF INCOME (%) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(b) Total owner and renter households

3 19

2 17

3 14

3 15

2 17

3 13

3 18

3 17

16 21 21

19 18 18

19 20 18

18 18 18

20 18 18

17 20 19

19 16 16

18 20 19

14

12

13

12

13

11

14

13

HOUSEHOLDS (’000) Owner without a mortgage Owner with a mortgage Renter — state/territory housing authority Renter — private landlord Total renters(b) Total owner and renter households

577.3 459.4

523.5 430.4

178.3 216.9

156.7 159.6 152.3 222.3

28.9 25.1

31.0 51.1

1 664.9 1 578.2

85.2 352.8 447.2

42.3 236.2 285.4

30.9 161.7 204.4

44.5 25.7 82.0 109.7 134.9 139.4

*5.9 *15.1 21.0

*12.2 23.4 36.5

251.8 993.0 1 290.0

1 483.8

1 239.3

599.7

443.9 521.3

75.1

118.6

4 533.1

(a) Includes households in the NT, for which disaggregated data are not acceptable for most purposes. (b) Includes other landlord type. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

House prices House price indexes enable the comparison of price changes between cities, though not the price levels themselves. From 2000–01 to 2001–02, the price index of established houses increased in all capital cities (table 8.17). For the fifth year in a row, Melbourne recorded the greatest rise in established house prices, increasing by 21.7% in 2001–02. Other capital city price rises were in Sydney (17.3%), Canberra (16.1%), Adelaide (14.5%), Brisbane (13.7%), Perth (8.7%), Hobart (4.4%), and Darwin (2.8%). The weighted average of

eight capitals index rose by 16.5%. This was the highest percentage increase over a financial year since 1988–89. In 2000–01, project home prices (cost of new dwellings excluding land) rose in all capital cities (table 8.18). Canberra recorded the largest increase (5.1%), followed by Adelaide (4.4%), Melbourne (3.8%), Hobart (3.1%), Sydney (2.1%), Perth (2.1%) Brisbane (1.1%),and Darwin (1.1%). The index for the weighted average of eight capitals rose by 2.4%. The price index of materials used in house building is discussed in Chapter 20, Construction.

242

Year Book Australia 2003

8.17

Sydney

PRICE INDEXES FOR ESTABLISHED HOUSES(a)

Melbourne

Brisbane

Adelaide

Perth

Hobart

Darwin

Canberra

Weighted average of eight capital cities

129.0 134.2 140.1

199.2 198.7 204.2

137.0 149.1 173.1

142.3 152.8 178.0

2.9 –0.3 2.8

6.9 8.8 16.1

9.1 7.4 16.5

INDEX NUMBER 1999–2000 2000–01 2001–02

153.1 163.8 192.2

144.6 159.1 193.7

1999–2000 2000–01 2001–02

11.0 7.0 17.3

14.0 10.0 21.7

142.2 149.4 169.8

123.2 131.1 150.1

125.9 133.9 145.5

CHANGE FROM PREVIOUS YEAR (%) 0.9 5.1 13.7

8.0 6.4 14.5

5.9 6.4 8.7

4.7 4.0 4.4

(a) Reference base year 1989–90 = 100.0. Source: House Price Indexes: Eight Capital Cities (6416.0).

8.18

Sydney

Melbourne

PRICE INDEXES FOR PROJECT HOMES(a)

Brisbane

Adelaide

Perth

Hobart

Darwin

Canberra

Weighted average of eight capital cities

126.2 140.7 145.1

143.2 156.8 158.5

131.9 153.5 161.3

120.7 134.9 138.1

3.0 9.5 1.1

6.0 16.4 5.1

6.7 11.8 2.4

INDEX NUMBER 1999–2000 2000–01(b) 2001–02

123.1 138.4 141.3

122.0 136.9 142.1

1999–2000 2000–01(b) 2001–02

6.9 12.4 2.1

8.4 12.2 3.8

118.2 132.0 133.5

127.2 141.9 148.2

114.8 126.2 128.8

CHANGE FROM PREVIOUS YEAR (%) 4.2 11.7 1.1

8.7 11.6 4.4

8.2 9.9 2.1

2.4 11.5 3.1

(a) Reference base year 1989–90 = 100.0. (b) The 2000–01 data were affected by the introduction of The New Tax System, in particular, the introduction of the Goods and Services Tax (GST) from 1 July 2000. Source: House Price Indexes: Eight Capital Cities (6416.0).

Value of dwellings In the 1999–2000 Survey of Income and Housing Costs, owners were asked to estimate the value of their dwelling. These estimates may differ significantly from valuations made by accredited valuers and from an achievable sale price of the dwelling. The extent of the possible difference has not been measured. Therefore some care needs to be exercised in the use of these data. The median owner-estimated value of dwellings for capital cities was $191,600, 17% higher than the national median ($163,300). The median value was highest in Sydney at $294,000 and lowest in Hobart at $116,500 (table 8.19).

Housing finance for owner occupation Secured housing finance commitments to owner occupiers is shown in table 8.20, split by purpose and type of lender. The 2001–02 financial year saw very strong growth in housing finance commitments after a weak 2000–01. The upturn began during the June quarter of 2001, and continued into 2001–02. A total of 630,764 commitments were made by all lenders in 2001–02, with a value of $96,482m. The number of commitments grew by 14% in 2001–02 over the previous year, while the value of commitments grew by 30%, taking the average loan size from $134,300 in 2000–01 to $153,000 in 2001–02.

Chapter 8 — Housing

8.19

243

CAPITAL CITY OWNER HOUSEHOLDS, Value of dwelling(a) by dwelling structure — 1999–2000 Sydney Melbourne Brisbane Adelaide

Perth

Hobart Canberra

Capital city owner households(b)

Total owner households

MEDIAN VALUE OF DWELLING ($’000) Separate house Semidetached/row or terrace house/townhouse Flat/unit/apartment Total(c)

302.5

176.5

152.1

233.3 256.1 294.0

205.2 148.3 176.2

*139.2 *166.6 151.2

1 036.6

954.0

395.2

128.3

197.2

117.0

168.8

194.4

163.6

116.7 128.2 **99.2 *115.4 *128.5 n.p. 125.7 176.8 116.5

*119.8 *252.6 165.5

178.6 188.6 191.6

163.2 163.4 163.3

82.1

3 243.1

5 074.0

NUMBER (’000) Households

309.0

381.9

54.1

(a) As reported by owners. (b) Includes households in the NT, for which data are not available separately due to high sampling error. (c) Includes other dwelling structure. Source: ABS data available on request, Survey of Income and Housing Costs, 1999–2000.

The recovery in construction finance commitments (already evident in the June quarter of 2001) gathered considerable strength throughout 2001, then weakened somewhat in the first half of 2002. Nevertheless, there was a 46% increase (or 24,580 commitments) in the number of construction finance commitments in 2001–02 over the previous financial year. Following a relatively moderate fall in the commitments to purchase new dwellings in 2000–01, There was a strong increase (of 14%) or 2,563 commitments in 2001–02. The number of commitments for the purchase of established dwellings (including refinancing) continued to grow, increasing by 10.2% (or 49,325 commitments) in 2001–02. The growth in bank commitments (9%) was far exceeded by the growth in commitments by permanent building societies (up 18%) and other lenders (up 33%). The average loan size for banks, however, increased more sharply, rising to $155,300 in 2001–02, while the average loan sizes for building societies and other lenders were $132,300 and $148,400 respectively.

Housing assistance While most Australians are able to house themselves without government assistance, such assistance remains important for various population groups, especially low income earners and social security recipients. Housing assistance is provided by the Commonwealth Government and the state and territory governments through a range of housing and other programs.

Assistance for people with low incomes is provided through public housing, home purchase assistance and rent assistance schemes. Assistance is also provided to community organisations and local governments for refuges and crisis accommodation. The Housing Assistance Act 1996 (Cwlth) provides the legislative basis for the Commonwealth’s provision of financial assistance to the states and territories for housing and related purposes. The Act authorises the Commonwealth to form and enter into a Commonwealth State Housing Agreement (CSHA) with the states and territories. The current CSHA commenced on 1 July 1999. Unlike the 1996 CSHA, it provides for bilateral housing agreements between the Commonwealth and each state and territory. The CSHA sets out the terms for the provision of housing assistance for rental housing, home purchase and other specific housing programs. The Commonwealth Minister for Family and Community Services and state and territory housing ministers met in April 2002 and committed to a new CSHA to operate from July 2003. Ministers expressed their commitment to the development of positive options for a new CSHA that will create a modern, sustainable housing system; support community development and the renewal of public housing estates; support wider government outcomes in health, education and labour market reform; and stimulate private sector investment in the supply of low cost housing.

244

Year Book Australia 2003

8.20 SECURED HOUSING FINANCE COMMITMENTS(a), By purpose and type of lender(b) Type of lender

Units

Banks

Permanent building societies

Other lenders(c)

Total

CONSTRUCTION OF DWELLINGS Dwelling units 1998–99 1999–2000 2000–01 2001–02

no. no. no. no.

62 464 65 673 44 127 66 009

3 787 3 276 2 755 3 697

7 238 6 733 6 105 7 861

73 489 75 682 52 987 77 567

Value of commitments 1998–99 1999–2000 2000–01 2001–02

$m $m $m $m

7 935 9 293 6 088 9 873

520 474 412 548

901 849 893 1 111

9 356 10 617 7 394 11 532

PURCHASE OF NEWLY ERECTED DWELLINGS Dwelling units 1998–99 1999–2000 2000–01 2001–02

no. no. no. no.

17 903 17 313 14 656 16 823

282 300 475 283

1 963 920 2 566 3 154

20 148 18 533 17 697 20 260

Value of commitments 1998–99 1999–2000 2000–01 2001–02

$m $m $m $m

2 482 2 666 2 322 3 029

37 48 55 39

282 127 361 444

2 802 2 841 2 738 3 511

PURCHASE OF ESTABLISHED DWELLINGS(d) Dwelling units 1998–99 1999–2000 2000–01 2001–02

no. no. no. no.

323 840 368 814 378 526 395 758

14 917 16 563 19 479 22 918

55 779 69 546 85 607 114 261

394 536 454 923 483 612 532 937

Value of commitments 1998–99 1999–2000 2000–01 2001–02

$m $m $m $m

41 089 50 919 50 722 61 427

1 677 1 825 2 244 2 971

6 577 8 750 11 327 17 040

49 342 61 495 64 293 81 439

TOTAL Dwelling units 1998–99 1999–2000 2000–01 2001–02

no. no. no. no.

404 207 451 800 437 309 478 590

18 986 20 139 22 709 26 898

64 980 77 199 94 278 125 276

488 173 549 138 554 296 630 764

Value of commitments 1998–99 1999–2000 2000–01 2001–02

$m $m $m $m

51 506 62 878 59 132 74 329

2 234 2 347 2 711 3 558

7 760 9 726 12 581 18 595

61 500 74 953 74 424 96 482

(a) Excludes alterations and additions. (b) Caution should be exercised in using these statistics to calculate market share because, while all banks and permanent building societies are selected, only a sample of other lenders are selected. (c) Includes wholesale lenders n.e.c. (d) Includes refinancing. Source: ABS data available on request, Survey of Housing Finance for Owner Occupation.

Chapter 8 — Housing

Details of Commonwealth assistance provided under the CSHA for 2001–02 are set out in table 8.21.

Public housing

The 1999–2003 CSHA includes a subsidiary National Housing Data Agreement outlining a commitment to the development and provision of nationally consistent data (AIHW 2000a). The National Housing Data Agreement was signed by Housing Chief Executive Officers in January 2000. The ABS and the Australian Institute of Health and Welfare (AIHW) are also signatories to the Agreement, with the AIHW providing secretariat support. The three schedules to the Agreement identify the major work areas comprising development of national minimum data sets, national performance indicators and national data definitions and standards. During 2001–02 national data development work under the Agreement included: n

the development and data collection in respect of 2000–01 as input to the CSHA national performance reporting framework for public housing programs, the Aboriginal Rental Housing Program and community housing programs

n

data collection for the three other CSHA areas of Home Purchase Assistance, Private Rental Assistance and the Crisis Accommodation Program

n

the use of a national housing assistance data repository to construct national administrative unit record data for public housing and the Aboriginal Rental Housing Program

n

continued development of the national housing assistance data repository to contain data for community and private rental housing assistance

n

the publication of Version 1 of the National Housing Assistance Data Dictionary. 8.21

245

Public housing comprises dwellings owned and managed by state and territory housing authorities and which are made available at low cost to tenants. Rents are generally set at a maximum of 25% of income, thereby providing low cost housing to people on low incomes. The median weekly housing cost for those renting from a state or territory housing authority in 1999–2000 was $58, compared to $150 for those renting from a private landlord. Expenditure under the CSHA on public housing and related assistance was approximately $1.3b in 1999–2000. Over recent decades, public housing has been increasingly targeted towards those most in need. In 1999–2000, 402,000 households (6% of all households) were living in public housing; of these, about 82% were in the lowest 40% of the household income distribution. Government pensions and benefits were the main source of income for the majority of households in public housing.

Home purchase assistance (HPA) HPA is provided by some states to assist low-to-moderate income households to purchase a home or to provide help with mortgage repayments. Some of the mechanisms used to assist low-to-moderate income earners include loans, shared equity schemes, deposit assistance and mortgage relief. States offer HPA options in line with local market conditions. The emphasis given to loan products varies significantly between jurisdictions. Western Australia and South Australia placed the greatest emphasis on various forms of subsidised loan products, partly due to lower housing prices, which make home purchase feasible on lower incomes. Other jurisdictions such as New South Wales gave greater emphasis to mortgage relief for home purchasers experiencing hardship.

COMMONWEALTH STATE HOUSING AGREEMENT, Payments to states/territories — 2001–02

Base funding Community Housing Program Aboriginal Rental Housing Program Crisis Accommodation Program Total

NSW Vic. Qld $’000 $’000 $’000 268 831 196 364 155 842 21 589 15 927 11 943 17 777

3 638

25 227

WA SA Tas. ACT NT $’000 $’000 $’000 $’000 $’000 80 263 66 243 24 501 22 891 18 640 6 299 4 982 1 561 1 037 652 15 862

8 342

696

— 19 458

Aust. $’000 833 575 63 990 91 000

13 379 9 870 7 401 3 904 3 087 967 643 404 39 655 321 576 225 799 200 413 106 328 82 654 27 725 24 571 39 154 1 028 220

Source: Department of Family and Community Services.

246

Year Book Australia 2003

dependants. The average rent paid by Rent Assistance customers in June 2002 was $253 per fortnight while the average Rent Assistance received was $72 per fortnight.

Rent assistance The Commonwealth Government pays Rent Assistance, a non-taxable income supplement, to eligible social security customers who pay rent in the private rental market. Rent can include private rent, lodgings, board and lodgings, site fees, fees to moor a vessel, or service and maintenance fees in a retirement village. To be eligible for Rent Assistance, a customer must first pay rent above a certain threshold level, then Rent Assistance is paid at the rate of 75 cents in each dollar above the threshold, until a maximum amount is reached. Maximum rates and thresholds vary depending on a person’s family situation. Rent Assistance is indexed twice-yearly in March and September to the consumer price index. As at June 2002, there were 943,877 income units in receipt of Rent Assistance, where an income unit is defined as a single person with or without dependants, or a couple with or without

A large proportion of Rent Assistance customers are either lone persons or sole parents. In June 2002, 54% of Rent Assistance customers were single without children, 23% were single with children, 15% were couples with children and 8% were couples without children. Under CSHA, the state and territory governments also assist low income earners with the costs of rent, bonds and relocation in the private rental market. In 2000–01 almost $80m was provided through these arrangements. Table 8.22 provides details of the number of Rent Assistance customers, average fortnightly rates of Rent Assistance and average fortnightly rents. Outlays on Rent Assistance are included in the total expenditure on pensions, allowance and family tax benefits — see footnote (a) to table 7.7 in Chapter 7, Income and welfare.

8.22 RECIPIENTS OF RENT ASSISTANCE, Average Rent Assistance and rent paid — June 2002 Income units no.

Average rent assistance(a) $ per fortnight

Average rent paid(a) $ per fortnight

Primary payment type(b) Youth Allowance Age Pension Disability Support Pension Newstart Allowance Parenting Payment (single) Parenting Payment (partnered) Family Tax Benefit Part A Other

90 741 151 120 162 048 206 317 189 782 26 160 81 179 36 530

57 66 73 68 84 95 72 71

191 221 225 231 297 354 368 239

Income unit type Single no dependants Couple no dependants Couple 1 or 2 dependants Couple 3 or more dependants Single 1 or 2 dependants Single 3 or more dependants Couple temporarily separated Unknown income unit

512 426 74 547 95 687 40 655 181 102 34 715 2 227 2 518

65 69 80 90 81 94 87 57

203 281 350 364 294 325 260 190

Total

943 877

72

253

(a) Average rent assistance and average rent paid exclude customers who have no ongoing entitlement. (b) Rent assistance has been counted under a single primary payment type. The general order of priority is pensions, then allowances, then family tax benefit. For example, a couple receiving Disability Support Pension, Parenting Payment (Partnered) and Family Tax Benefit would appear as getting Rent Assistance with their Disability Support Pension. Source: Department of Family and Community Services.

Chapter 8 — Housing

Crisis accommodation Governments also provide assistance in meeting the short-term accommodation needs of homeless people who are identified as a priority target group under the CSHA. The Commonwealth Government provides funding of $40m per annum for crisis accommodation through the Crisis Accommodation Program under the CSHA. The Commonwealth Government and the state and territory governments also provide assistance to people who are homeless or at imminent risk of homelessness, through the Supported Accommodation Assistance Program (SAAP). Within the context of the SAAP IV Bilateral Agreements 2000–05, national funding (i.e. Commonwealth and state/territory contributions) will be over $1.4b. Total recurrent funding for the SAAP program during 2000–01 totalled $268.8m. Such funding consisted of a Commonwealth contribution of $157.7m and a state/territory contribution of $111.2m. In 2001–02, the AIHW’s Supported Accommodation and Crisis Services Unit published the 2000–01 SAAP national data collection report (AIHW 2001a). The report showed that 91,200 clients were provided with support or supported accommodation through SAAP in Australia in 2000–01. These contacts comprised a total of 168,200 occasions of support in 2000–01. For 20% of support periods the main reason for seeking assistance was either usual accommodation unavailable or eviction/previous accommodation ended. Nationally, males aged 25 years and over presenting alone at SAAP agencies accounted for the largest proportion of all support periods (34%), followed by 19% for female clients with children. Overall, 6% of support periods were for couples with or without children, while males with children accounted for 1% of all support periods. Indigenous Australians constituted 16% of SAAP clients and on average had more support periods than other clients. For clients who specifically sought assistance to obtain independent housing there were significant changes in accommodation type before and after support. In particular, accommodation in public or community housing went from 8% of support periods before support to 21% after. The proportion of support periods in which clients were renting privately also increased (from 17% before support to 26% after) (AIHW 2001a).

247

Housing assistance program for Indigenous Australians The Aboriginal and Torres Strait Islander Commission (ATSIC) administers a number of programs to improve the living environment of Aboriginal and Torres Strait Islander Australians. Its second largest program is the Community Housing and Infrastructure Program (CHIP) which has the aim of providing appropriate, safe and affordable housing, and improving community and individual health and wellbeing. CHIP provides funds for the construction, purchase, repair and management of community housing as well as for the provision and maintenance of housing-related infrastructure (essential services such as water, sewerage, electricity and community roads) and recurrent funding for the provision of municipal services. Through CHIP, grants are provided to: n

Indigenous community organisations from ATSIC Regional Council allocations

n

state Indigenous Housing Authorities where bilateral agreements are in place

n

Indigenous community organisations under the National Aboriginal Health Strategy where the financial and technical aspects of the projects are managed under Contracted Program Management arrangements.

In 2001–02, CHIP expenditure totalled $240m, of which around half went to the provision of housing. Over 500 houses were purchased/constructed and over 1,100 upgraded/renovated. The program has a particular focus on environmental health-related infrastructure through a specific sub-program called the National Aboriginal Health Strategy (NAHS). NAHS projects are generally large-scale projects targeting priority housing and infrastructure including power, water and waste removal, mainly in rural and remote Indigenous communities. In 2001–02 more than $90m in grant funds was provided under NAHS. ATSIC engaged the ABS to undertake a Community Housing and Infrastructure Needs Survey (CHINS) during 2001. The timing of CHINS was to align the process with the 2001 Census. The CHINS 2001 report, which was released in May 2002, provides a comprehensive picture on Indigenous housing circumstances across all tenures at a single point in time.

248

Year Book Australia 2003

ATSIC’s Community Housing and Infrastructure Program supplements the efforts of state/territory governments, which also receive earmarked Indigenous housing funds from the Aboriginal Rental Housing Program ($91m per annum) of Department of Family and Community Services (FaCS). The Commonwealth Government, through FaCS and ATSIC, has been implementing bilateral housing agreements with state and territory governments to maximise program efficiency and effectiveness and to better coordinate all housing programs specific to Indigenous people. At 30 June 2002, agreements had been signed with the Northern Territory, Western Australia, New South Wales, the Australian Capital Territory, South Australia and Queensland, while negotiations with Tasmania and Victoria are continuing.

National Indigenous housing reforms The Commonwealth State Working Group on Indigenous Housing developed processes to coordinate a national effort, and provide a valuable forum for ATSIC, the Commonwealth and the states to share information and strategies. This Group is now superseded by the Standing Committee on Indigenous Housing. Agreement has been achieved in a number of key areas including: n

negotiation of Indigenous Housing Agreements between ATSIC, the Commonwealth and a number of state and territory governments

n

creation of Indigenous Housing Authorities in the New South Wales, South Australia and Northern Territory

In December 1999, the Agreement on National Indigenous Housing Information was signed by the Chief Executive Officers of the Commonwealth and state and territory agencies administering Indigenous housing assistance (AIHW 2000b). The ABS and the AIHW are also signatories to the agreement and the AIHW provides secretariat support. The agreement provides a framework to improve how outcomes for Indigenous housing are measured, with a focus on developing national data sets.

n

maximisation of Indigenous specific housing funds for best outcomes

n

an agreement on National Indigenous Housing Information for coordinating national data development and collection, and the development of an implementation strategy

n

investment in the research and development into appropriate technologies for remote areas

n

provision of resources to assist maintenance and repair of assets

Following the establishment in 2001–02 of the Housing Ministers’ Advisory Council’s Standing Committee on Indigenous Housing, the National Indigenous Housing Information Implementation Committee (NIHIIC) now reports directly to this Standing Committee. The Standing Committee has responsibility for the implementation of Housing Ministers’ 10-year statement Building a better future: Indigenous Housing to 2010. The development of data is one of the key implementation areas in the Standing Committee’s work plan.

n

development of a National Skills Development Strategy to provide accredited training to the management and staff of Community Housing Organisations

n

a substantially increased focus on providing sustainable housing for Indigenous people

n

use of Aboriginal Rental Housing Program funds for recurrent purposes, which has led to a greater focus on effective housing management and maintenance

n

a National Framework for the Design, Construction and Maintenance of Indigenous Housing which has been adopted in a number of states and territories

n

improved housing standards through compliance with building construction standards and industry regulations

n

introduction of Centrepay, Centrelink’s voluntary direct deduction scheme, which is proving to be an effective means for Indigenous Housing Organisations (IHOs) to collect rent

In 2001–02 the ABS and the AIHW worked with agencies responsible for Indigenous housing assistance at the Commonwealth and state/territory level to develop an Indigenous Housing Information Management Strategy and Action Plan. The strategy and action plan represent an important first stage in the process of the Standing Committee and NIHIIC developing administrative data for national Indigenous housing.

Chapter 8 — Housing

n

identification of strategic asset management principles and best practices for IHOs

n

a new multi-measure approach to Indigenous housing need and resource allocation that reflects the diversity of need

n

establishment of a Standing Committee on Indigenous Housing to implement the Ministers’ statement of new directions. The Standing Committee consists of all state and territory agencies responsible for Indigenous housing as well as ATSIC and FaCS.

The Commonwealth and State Housing Ministers and the Minister for Aboriginal and Torres Strait Islander Affairs, in May 2001, agreed on a 10-year plan to improve Indigenous housing outcomes, Building a Better Future: Indigenous Housing to 2010. Strategies to achieve these outcomes will include: identifying and addressing unmet housing need; improving the capacity of IHOs; involving communities in planning and delivery; and achieving safe, healthy and sustainable housing. In line with the agreed outcomes, all funding agencies, including the State Housing Authorities, will be developing strategies to achieve the agreed outcomes within their jurisdiction. This will include the development of criteria for capital and recurrent funding and, in particular, strategies for ensuring that IHOs achieve effective and efficient management practices.

249

Other programs The Commonwealth Government, through the Department of Health and Ageing, finances and regulates residential care for frail older people. The residential care is usually provided by the non-government sector, including religious, charitable and private sector providers. A small number of residential services are operated by the state and local government sectors. Capital assistance for upgrading or construction of facilities is made available to those aged care services catering largely for residents with special needs or on low incomes, and those in rural and remote areas of Australia (see the section Residential aged care program in Chapter 7, Income and welfare). Under the Commonwealth/State Disability Agreement, the Commonwealth provides funds to assist the states and territories in the planning, policy setting and management of accommodation and other related services for people with disabilities. The state and territory governments are responsible for administering these services (see the section Support for people with a disability in Chapter 7, Income and welfare). Areas such as advocacy, and research and development, continue to be a responsibility of both levels of government.

The ATSIC Home Ownership scheme aims to reduce the disparity between the rate of home ownership in Indigenous communities and that in the wider Australian community. The rate of home ownership for Aboriginal family and lone-person households was estimated in the 2001 Census to be 32%. This compares with a national non-Indigenous figure of 71%.

The Commonwealth also funds the AIHW. The AIHW’s role is to gather, analyse and disseminate national data on health and welfare services, including housing assistance, in order to support both government and community organisations’ planning and policy making. The Housing Assistance unit of AIHW is involved in describing the need for, provision and use of housing assistance in Australia, supporting the development of standard terminologies, definitions and classifications for use in measuring housing assistance and contributing to the development of nationally consistent data.

ATSIC provides home loans at concessional interest rates to Aboriginal and Torres Strait Islander families. The Home Ownership scheme targets low income families with the capacity to repay a long-term loan, but who have difficulty obtaining finance from traditional lending institutions. The loan portfolio administered by ATSIC includes 3,824 loans valued at $316m. In 2001–02 about 494 new loans were provided.

In December 2001, the AIHW published Australia’s Welfare 2001: Services and Assistance (AIHW 2001b) which contains chapters on housing assistance and services for homeless people. Included in these chapters is information examining the need for assistance, government expenditure on services and assistance, the characteristics of recipients of assistance and outcomes.

Home ownership

250

Year Book Australia 2003

A housing authority also exists in each state and territory, which is responsible for the provision of public rental housing and often other housing related services such as home loans. These authorities are: n

New South Wales — Department of Housing

n

Victoria — Department of Human Services (Office of Housing)

n

Queensland — Department of Housing

n

South Australia — Department of Human Services (SA Housing Trust)

n

Western Australia — Department of Housing and Works (Homeswest)

n

Tasmania — Department of Health and Human Services (Housing Tasmania)

n

Northern Territory — Territory Housing

n

Australian Capital Territory — ACT Housing.

Chapter 8 — Housing

251

Bibliography ABS publications Australian Housing Survey — Housing Characteristics, Costs and Conditions (4182.0) Australian Social Trends (4102.0) Household Investors in Rental Dwellings, Australia (8711.0) House Price Indexes: Eight Capital Cities (6416.0) Housing Finance for Owner Occupation, Australia (5609.0) Housing Occupancy and Costs, Australia (4130.0) Income Distribution, Australia (6523.0)

Other publications AIHW (Australian Institute of Health and Welfare): 2000a, The National Housing Data Agreement: a Subsidiary Agreement of the 1999–2003 Commonwealth–State Housing Agreement, AIHW, Canberra 2000b, The Agreement on National Indigenous Housing Information, AIHW, Canberra 2001a, SAAP National Data Collection Annual Report 2000–01, Australia, AIHW, Canberra 2001b, Australia’s Welfare 2001: Services and Assistance, AGPS, Canberra Department of Family and Community Services, Annual Report, AGPS, Canberra The latest annual reports of the state and territory government housing authorities, and the latest annual report of the Department of Family and Community Service in relation to the Housing Assistance Act 1996 (Cwlth), show further details of government activities in the field of housing

Web sites Aboriginal and Torres Strait Islander Commission, Australian Housing and Urban Research Institute, Australian Institute of Health and Welfare, Commonwealth Department of Family and Community Services, Commonwealth Department of Health and Ageing,

9

Health Introduction

255

How Australians rate their health

255

Health and wellbeing

255

Health status

256

Morbidity

256

Mortality

257

Article — Disability among adults 15–64 years

258

National health priority areas

262

Cardiovascular health

263

Cancer control

263

Injuries and deaths due to external causes

265

Article — Cardiovascular disease: 20th century trends

266

Diabetes mellitus

271

Mental health

272

Asthma

273

Communicable diseases

275

HIV and AIDS

275

Children’s immunisation

277

Health care delivery and financing

278

Government role

278

Private sector role

279

National health care system

279

Medicare levy

280

The Commonwealth Government’s funding of hospitals

280

Total health expenditure

280

Hospitals

280

Hospital care under Medicare

282

Medicare benefits for private doctors’ and optometrists’ services

282

Pharmaceutical Benefits Scheme

283

Private health insurance

284

Household expenditure on health and medical care

285

Health workforce

286

Health-related organisations

287

International

287

Australian government

287

Australian non-government

290

Bibliography

292

Chapter 9 — Health

Introduction This chapter provides information on various aspects of the health of the Australian population and the health-related activities of government and other bodies. Data from the most up-to-date sources available are used including information collected in the 2001 National Health Survey (NHS) on the health status of Australians. This is the first in a new series of three-yearly national health surveys conducted by the ABS, with the increased frequency assisted by a funding partnership with the Department of Health and Ageing (DoHA). Data from the 2001 NHS are presented in this chapter based for the first time on the International Classification of Diseases, 10th revision (ICD-10). Data from the supplementary health survey of Aboriginal and Torres Strait Islander people were not available at time of printing. The chapter also includes information from the 1998 Survey of Disability, Ageing and Carers (SDAC) as well as mortality data from the ABS cause of death collection. Data from the SDAC are based on the International Classification of Functioning, Disability and Health, which was endorsed by the World Health Organization (WHO) in 2001. The Australian health system has a diversity of arrangements for planning, funding, delivering and regulating health services which feature a mix of private and public sector involvement. The Commonwealth Government, through the Health and Ageing portfolio, has primary financial responsibility for the health and ageing system, while the state and territory governments are largely responsible for the direct provision of health services, including hospitals, public health and mental health. 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 (PBS), are funded by the Commonwealth to cover all Australians, and are discussed in detail in the section Health care delivery and financing. In recognition of the need for a national approach to public health and health promotion, the Commonwealth Government and the state and territory governments have established a National Public Health Partnership. This is a collaborative arrangement to improve the health status of Australians, in particular those population groups most at risk. Public health services, which are largely funded by

255

Commonwealth Government and state and territory and local governments, include activities to ensure food quality, immunisation services and communicable disease control, public health education campaigns, injury prevention, programs to reduce the use of tobacco, alcohol and illicit drugs, environmental monitoring and control, and screening programs for diseases such as breast cancer. Essential support to the health service system is given by many other agencies, including consumer and advocacy groups, professional associations for medical and paramedical practitioners as well as non-profit organisations. Statistical and information agencies provide the information needed for evidence-based decision making and policy formation. Under the National Health Information Agreement, to which the ABS, the Australian Institute of Health and Welfare (AIHW), DoHA, and the various state and territory health authorities, are signatories, the National Health Information Development Plan (NHIDP) sets out agreed national priorities for health information to be considered by the Australian Health Ministers’ Advisory Council (AHMAC). The role of AHMAC is described in the section Health and Community Services Ministerial Council (HCSMC). The NHIDP is managed by the National Health Information Management Group.

How Australians rate their health The 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 2001, the majority of Australians aged 15 years and over considered themselves to be in good health, with 82% reporting their health status as good, very good or excellent. This is similar to the proportion reported in the previous NHS (83% in 1995). In 2001, young men aged 15–24 were most likely to consider themselves to be in good health (92%), while women aged 85 years or more were least likely to report that they were in good health (60%).

256

Year Book Australia 2003

The distribution across health status categories was similar for males and females (table 9.1). As would be expected, the proportion of people reporting fair or poor health increased with age. Of those aged 15–24, 9% assessed their health as fair or poor in comparison to 34% of those aged 65 years and over. In addition, individuals’ rating of their health was strongly related to their physical health. In 2001, some 96% of those without a long-term condition assessed their health as good, very good or excellent, compared to 80% of those who reported a long-term condition.

9.1

Health status Morbidity The 2001 NHS found that almost 78% of the Australian population reported having experienced one or more long-term conditions (i.e. conditions that have lasted, or are expected to last, six months or more). In most cases, respondents were asked about conditions which had been medically diagnosed. From the range of long-term conditions covered in the survey, those relating to eyesight and back problems were among the most prevalent (table 9.2). Asthma was the most commonly reported condition among those under 18 years.

SELF-ASSESSED HEALTH STATUS — 2001 Age group (years)

15–24 %

25–44 %

Excellent Very good Good Fair/poor

28.6 38.3 24.9 8.1

20.4 35.5 31.7 12.3

Excellent Very good Good Fair/poor

22.1 39.8 27.8 10.3

22.9 37.8 27.5 11.8

Excellent Very good Good Fair/poor

25.4 39.1 26.3 9.2

21.7 36.7 29.6 12.1

45–64 %

65 and over %

All age groups %

14.4 29.1 32.5 24.0

9.9 20.2 36.0 33.9

18.6 31.9 31.3 18.1

17.2 30.9 29.8 22.1

10.6 22.5 33.5 33.5

19.1 33.7 29.2 18.1

15.8 30.0 31.2 23.0

10.3 21.4 34.6 33.7

18.9 32.8 30.2 18.1

MALES

FEMALES

PERSONS

Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

9.2

SELECTED LONG-TERM CONDITIONS — 2001 18 years and over

Long-sightedness Short-sightedness Back problems Arthritis Asthma Chronic sinusitis Total/partial hearing loss Hypertensive disease Mental and behavioural problems Diabetes mellitus Neoplasms

0–17 years % 4.4 4.7 2.2 0.2 13.9 4.9 2.0 0.1 7.0 0.2 0.1

Males % 25.6 23.0 27.4 14.9 8.9 10.2 17.5 12.5 8.7 3.9 2.5

Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

Females % 30.7 29.4 26.6 21.1 12.7 14.9 9.7 14.4 12.2 3.8 1.8

All persons % 22.3 20.8 20.8 13.6 11.6 10.7 10.6 10.1 9.6 2.9 1.6

Chapter 9 — Health

Adult females (aged 18 years and over) were more likely than males to report most of the selected long-term conditions. However, females were also more likely to consult health professionals and have conditions diagnosed. For example, in 2001 it was estimated that 27% of females had consulted a doctor in the previous two weeks, compared with 21% of males. Females also have a longer life expectancy, so that there are more females in older age groups where long-term conditions are common. Adult males had a higher prevalence of neoplasms and hearing loss. The latter may be partly attributable to the higher numbers of males working in environments where they are exposed to loud noise.

257

Age is also a major determining factor in arthritis. Less than 3% of people aged under 40 years reported arthritis, compared to 44% of those aged 60 and over.

Mortality There were 128,291 deaths registered in 2000, consisting of 66,817 male and 61,474 female deaths. This represented an increase of 0.1% on the corresponding figure for 1999 (128,102 deaths). Malignant neoplasms and ischaemic heart diseases were the leading underlying causes of death, accounting for 28% and 21% respectively of total deaths registered (table 9.4).

The proportion of people who reported hearing loss generally increased steadily with age (graph 9.3). Hearing loss due to the ageing process (presbycusis) and environmental exposure to noise are important causes of hearing loss. Only 1% of 0–4 year olds experienced hearing loss, which increased to 12% among 45–49 year olds, and to over 54% of people aged 85 years and over.

During the decade up to 2000, the total number of deaths registered annually increased by approximately 7%. However, the standardised death rate of 566 deaths per 100,000 population in 2000 was 21% lower than the corresponding rate of 715 in 1990. These outcomes are consistent with continuing improvements in life expectancy in Australia.

The prevalence of hyperopia (long-sightedness) within the population also appears to be age-related. Less than 8% of people in all age groups under 45 reported being long-sighted. However, this was significantly higher at 41% of those aged 45–49 and is higher again in age groups up to the sixties. It affects 43% of people aged 85 and over.

Over the 10 years to 2000, there were quite different patterns of decline in the two leading causes of death, malignant neoplasms and ischaemic heart diseases, which together account for nearly half the total deaths. Between 1990 and 2000, the standardised death rate for malignant neoplasms decreased by 10%, while the rate for ischaemic heart diseases decreased by 39% (graph 9.5).

9.3 SELECTED LONG-TERM CONDITIONS, By age group — 2001 % 60

Long-sighted/Hyperopia Total/partial hearing loss Arthritis

40

20

0 0–4

10–14

20–24

30–34

40–44

50–54

60–64

70–74

80–84

Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

258

Year Book Australia 2003

9.4

LEADING CAUSES OF DEATH — 2000

Cause of death and ICD-10 code

All causes Malignant neoplasms (cancer) (C00-C97) Trachea, bronchus and lung (C33, C34) Ischaemic heart diseases (I20-I25) Cerebrovascular diseases (stroke) (I60-I69) Chronic lower respiratory diseases (including asthma, emphysema and bronchitis) (J40-J47) Accidents (V01-X59) Transport accidents (V01-V99) Diabetes mellitus (E10-E14) Diseases of arteries, arterioles and capillaries (including atherosclerosis and aortic aneurysm) (I70-I79) Intentional self-harm (X60-X84) Organic, including symptomatic, mental disorders (F00-F09) Influenza and pneumonia (J10-J18) All other causes

Proportion of total deaths % 100.0

Males no. 66 817

Females Persons no. no. 61 474 128 291

20 153 4 587 14 052 4 913

15 475 2 291 12 469 7 387

35 628 6 878 26 521 12 300

27.8 5.4 20.7 9.6

3 514 3 299 1 459 1 594

2 448 1 839 556 1 412

5 962 5 138 2 015 3 006

4.6 4.0 1.6 2.3

1 321 1 860 668 1 312 14 131

1 296 503 1 439 1 625 15 581

2 617 2 363 2 107 2 937 29 712

2.0 1.8 1.6 2.3 23.2

Source: Causes of Death, Australia, 2000 (3303.0).

9.5 STANDARDISED DEATH RATES(a) rate 200 180 160 140 120

Ischaemic heart diseases Malignant neoplasms

1990

1992

100 1994

1996

1998

2000

(a) Per 100,000 estimated resident population. Source: Causes of Death, Australia (3303.0).

Disability among adults 15–64 years This article discusses disability and its relationship with labour force outcomes. Disability occurs when a person has an impairment or is restricted in his or her activities or participation because of health condition(s). Of particular concern are those disabilities resulting in specific restrictions which affect the core activities of self care, mobility or communication; or schooling or employment restrictions.

In 1998, there were 3.6 million people in Australia with a disability (19% of the total population), based on estimates from the ABS Survey of Disability, Ageing and Carers (SDAC). A further 3.1 million reported that they had an impairment or long-term condition that did not restrict their everyday activities. The likelihood of a person having, or developing, a disability increases with age, and is largely independent of sex. Disability rates vary from 4% for children aged 0–4 years to 84% for those aged 85 and over (graph 9.6).

Chapter 9 — Health

259

9.6 DISABILITY RATES — 1998 % 100

Males Females

80 60 40 20 0 0–4

5–14

15–24 25–34 35–44 45–54 55–64 65–74 75–84 Age group (years)

85+

Source: ABS data available on request, 1998 Survey of Disability, Ageing and Carers.

Of all people with a disability, 5% live in cared accommodation (including hospitals, nursing homes, aged care hostels and cared components of retirement villages), while the remainder lived in the general community. People aged 15–64 years often participate in education and/or employment, and many have family responsibilities. If they also have a disability, this may increase the difficulty in managing all the responsibilities in their lives. Of all people aged 15–64 years, 17% had a disability. In contrast, of people aged 65 years or more, 54% had a disability.

Types of restricting impairment An impairment, in terms of the World Health Organization’s International Classification of Functioning Disability and Health (ICF), can be considered to be any loss or abnormality of body functions or structures including psychological, physiological or anatomical aspects. Data from the ABS survey have been classified to five broad types, relatable to the ICF: n

psychological: nervous or emotional condition

n

intellectual: difficulty in learning or understanding things

n

head injury stroke or brain damage: with long-term effects that restrict everyday activities

n

sensory or speech

n

physical: such as chronic or recurrent pain, incomplete use of arms or fingers, disfigurement or deformity, etc.

Physical impairments are the most common of all impairment types and show a steady increase with age. Of people aged 15–64 with a disability living in the community, the proportion who reported that they were restricted by a physical impairment increased with age, from 61% for 15–24 years to 79% for those aged 55–64 years. Traffic accidents, as well as work and sporting injuries, are relatively frequent causes of this type of impairment in the 15–64 years age group. The proportion of people with disabilities who had a sensory or speech impairment also increased with age, from 15% for 15–24 year olds to 26% for 55–64 year olds. Many people with a sensory impairment had developed industrial deafness or age-related hearing loss in the course of their working life. In contrast, intellectual impairments are more common in younger people. This impairment type is often caused by congenital disorders such as Down Syndrome. The proportion of people with an intellectual disability declined from 32% of people aged 15–24 years to 4% of people aged 55–64 years.

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Year Book Australia 2003

How participation in employment varies by type of restricting impairment

communicating with others, are grouped to form a number of activities of everyday life. People may need help with one or more of these activities.

Government policy is designed to provide services to people who are restricted in the basic activities of daily living. A number of employment assistance programs give support to people with disabilities for job search activities and/or provide ongoing support at work. Under the Commonwealth/State Disability Agreement, the Commonwealth Government has responsibility for the planning, policy setting and management of disability employment services (primarily focused on people aged 15–64 years).

In addition, the ability of a person to make good decisions, to manage their feelings and emotions, and to establish and maintain interpersonal relationships can have a significant impact on a person’s ability to access support programs (accommodation, respite, employment and others), and the outcomes of those support programs. These abilities were grouped together as cognitive or emotional tasks.

The labour force participation rate of working-age people living in the community was 76%. This rate dropped to 53% for people with a disability, ranging from only 29% for those people restricted by a psychiatric impairment to 56% for those restricted by a sensory impairment (table 9.7).

Need for assistance with cognitive or emotional tasks Many people with a disability live independently within the community. They may at times need assistance in some areas of their day-to-day lives. In the 1998 SDAC people were asked whether they had difficulty performing a range of day-to-day tasks and whether they needed help with them. These tasks, such as dressing, washing, walking, understanding and

9.7

Cognitive or emotional tasks are: n

establishing, developing and maintaining relations with others

n

managing feelings, emotions and consequent behaviour

n

making good decisions.

These essential day-to-day tasks make a large contribution to a person’s wellbeing and can be difficult at times for anyone. People with a disability, particularly those restricted by a psychological or intellectual impairment, may experience additional difficulty with these tasks and may need help from others. The ability of a person to gain meaningful employment can be influenced by many factors, including their ability to interact with others and to make sound decisions.

PEOPLE WITH A DISABILITY(a) RESTRICTED BY IMPAIRMENT — 1998 Psychological % 11.3 10.2 21.6

Intellectual % 17.1 12.8 29.9

Head injury, stroke or brain damage % 17.3 12.6 30.0

Total unemployed Participation rate

7.2 28.8

8.3 38.2

6.6 36.5

4.7 55.7

6.0 49.1

6.1 53.2

6.3 75.6

Not in the labour force

71.2

61.8

63.5

44.2

50.9

46.8

24.4

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Labour force status

Employed full-time Employed part-time Total

Total(c)

Sensory or speech % 37.2 13.9 51.1

Physical % 27.6 15.5 43.1

All with a disability(b) % 31.0 16.1 47.1

All persons(b) % 49.1 20.3 69.3

(a) People aged 15–64 and living in the community. (b) The sum of the components exceeds the total because a person can report more than one impairment. (c) Includes those for which the type(s) could not be determined. Source: ABS data available on request, 1998 Survey of Disability, Ageing and Carers.

Chapter 9 — Health

In 1998, 8% of the 2,066,700 people aged 15–64 years with a disability living in the community reported that they needed help to make friends, interact with others, or maintain relationships; 15% needed help to cope with feelings or emotions; and 14% required assistance to make decisions or think through problems (table 9.8). People with some impairment types are more likely to have a need for assistance with cognitive or emotional tasks than others: 72% of people with a psychological impairment needed assistance with one or more of these tasks, compared to 56% of people with an intellectual impairment. Less than half (41%) of people with head injury, stroke or brain damage required this type of assistance, and this form of assistance was needed to an even lesser extent among those restricted by a sensory or speech impairment (24%) and least of all among those restricted by a physical impairment (20%). A person may have more than one impairment type. Some of the people with a physical or sensory impairment who needed assistance with cognitive or emotional tasks had a psychiatric or intellectual impairment as well. Coping with feelings or emotions was most frequently reported as the area of need for assistance, ranging from 60% of people with a psychological impairment to 15% of those with a physical impairment. The least need for assistance was required with making friends, interacting with others and maintaining relationships. People with a physical impairment had the lowest need for help in each of the three tasks.

261

Of those who had a need for assistance with cognitive or emotional tasks because of their disability, 20% reported that they always needed such help, while 80% sometimes needed it. The highest need was among those with an intellectual impairment, with 36% of those with a need for cognitive or emotional assistance always needing help. The lowest intensity of need was among those restricted by a physical impairment, with 22% of those needing cognitive or emotional assistance reporting that they always need help. Impairment, the need for cognitive or emotional assistance, and the level of participation in a broad range of community activities are likely to be interrelated. In 1998, people with a disability aged 15–64 years who needed cognitive or emotional assistance had lower labour force participation rates than people who did not need cognitive or emotional assistance. The labour force participation rate declines in line with increasing need for assistance with cognitive or emotional tasks. It was lowest among those who always needed cognitive or emotional assistance (20%), was higher for those who sometimes needed cognitive or emotional assistance (41%), and was highest (47%) for people who had difficulty with at least one of the cognitive or emotional tasks but did not need help with any of them. However, people who had any difficulty with cognitive or emotional tasks were less likely to participate in the labour force than people with a disability in general (53%) (table 9.9).

9.8 PEOPLE WITH A DISABILITY(a), Needing assistance with cognitive or emotional tasks — 1998

Restricting impairment

Psychological Intellectual Head injury, stroke or brain damage Sensory or speech Physical All impairments(c)

Making friends, interacting with others, or maintaining relationships % 36.9 28.9

Coping with feelings or emotions % 60.4 35.9

Making decisions or thinking through problems % 53.8 47.6

Total with a need for cognitive or emotional assistance(b) % 72.3 56.4

Total(b) ‘000 238.8 213.9

21.6 11.8 7.4

30.6 16.5 15.4

33.0 15.7 13.4

41.3 23.9 19.7

146.4 449.3 1 535.0

8.4

15.4

13.6

20.5

2 066.7

(a) People aged 15–64 and living in the community. (b) The sum of the components exceeds the total because a person can report more than one task and/or impairment. (c) Includes those for which the type(s) could not be determined. Source: ABS data available on request, 1998 Survey of Disability, Ageing and Carers.

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9.9

PEOPLE WITH A DISABILITY(a), By labour force status — 1998 Needs cognitive or emotional assistance Always % *10.2 *5.5 15.7

Sometimes % 19.7 13.6 33.3

Does not, but has difficulty % 24.7 16.6 41.3

Does not and has no difficulty % 37.3 17.4 54.7

All people with a disability % 31.0 16.1 47.1

Total unemployed Participation rate

*4.5 20.2

7.5 40.8

6.1 47.4

5.9 60.6

6.1 53.2

Not in the labour force

79.8

59.2

52.6

39.4

46.8

100.0

100.0

100.0

100.0

100.0

Labour force status

Employed full-time Employed part-time Total

Total

(a) People aged 15–64 and living in the community. Source: ABS data available on request, 1998 Survey of Disability, Ageing and Carers.

In the 15–64 age group, people with a disability who had no recorded difficulty with any of the three cognitive or emotional tasks had a much higher participation rate (61%), though still considerably lower than the rate for the total population (76%).

National health priority areas The health of Australians is among the best in the world. Nationwide efforts, such as the recognition of and focus on national health priority areas, will help to ensure that this continues. The National Health Priority Area (NHPA) initiative is a collaborative approach to dealing with a range of conditions which account for 70% of the burden of disease and cost in Australia. It is overseen by the National Health Priority Action Council, which was established as a sub-committee of AHMAC in June 2000, and comprises representatives from the Commonwealth, each of the states and territories, a representative of Indigenous peoples and a representative of consumer issues. The establishment of diseases and conditions as national health priority areas involves a national consultation process and consideration of such things as: n

the health burden associated with the disease/condition (including incidence, prevalence, mortality, morbidity, quality of life, economic costs)

There are strong moves to encourage people with a disability to greater participation in the labour force. These findings suggest that the kinds of support needed by people who require assistance with cognitive or emotional tasks should be an important consideration in the design of programs for their better labour force integration.

n

the potential for health gain (including improved health outcomes, and potential to change behaviour)

n

the potential for progress through national collaboration

n

the potential for cost-effective health gain using interventions known to be effective (including existing and potential intersectoral action)

n

the potential for sustainability of programs to address the health area

n

the potential to reduce health inequalities.

At present six priority areas have been endorsed by Australian health ministers, covering cardiovascular health, cancer control, injury prevention and control, mental health, diabetes mellitus, and asthma. A range of program initiatives has been established, aimed at improving health outcomes in these areas. In July 2002 Australian health ministers added arthritis and musculoskeletal disease as a seventh national health priority area. The initial focus for the NHPA initiative in this area is on osteoarthritis, rheumatoid arthritis and osteoporosis.

Chapter 9 — Health

Cardiovascular health Diseases of the circulatory system (also sometimes known collectively as cardiovascular disease) include all heart diseases, cerebrovascular diseases (including stroke), diseases of the arteries, arterioles and capillaries, and diseases of the veins and lymphatic vessels. Cardiovascular disease was the leading cause of burden of disease in 1996, accounting for approximately 22% of total burden (AIHW 2000a).

263

among the Indigenous population was diseases of the circulatory system, which accounted for 28% of all Indigenous deaths, compared to 39% of all non-Indigenous deaths. In 1998–2000, the median age at death for Indigenous persons from cardiovascular disease was 60 years compared with 81 years for the non-Indigenous population. These issues are discussed further in the article Cardiovascular disease: 20th century trends.

Cancer control

Morbidity In 2001, 22% of adult Australians (3.1 million people) were affected by circulatory conditions. Table 9.10 shows that hypertensive disease was the most prevalent of these conditions, affecting 1.9 million people (13.4%), with females more likely than males to report the disease (14.4% compared with 12.5%). However, the pattern was reversed for ischaemic heart diseases and cerebrovascular diseases.

The concept of cancer control recognises that, while it may not be possible to eradicate cancer, its impact and burden on the community can be reduced. Eight cancers have been targeted in this NHPA — lung cancer, melanoma, non-melanocytic skin cancer, colorectal cancer, non-Hodgkin’s lymphoma, prostate cancer, breast cancer and cancer of the cervix. In 1996 cancer was estimated to be responsible for 19% of the total burden of disease in Australia (AIHW 2000a).

Mortality

Policy initiatives: cancer screening

In 2000, almost 40% (49,687) of all deaths were due to diseases of the circulatory system. Ischaemic heart disease accounted for 21% of all deaths, and cerebrovascular diseases a further 9.6%. Between 1990 and 2000, age-standardised death rates for diseases of the circulatory system declined by 36% for males (from 400 to 254 per 100,000 persons), 35% for females (from 263 to 172) and 35% in total (from 325 to 210).

Screening is currently considered to be the most effective method of reducing mortality from breast and cervical cancer. The National Program for the Early Detection of Breast Cancer was established in 1991; since 1994 it has been called BreastScreen Australia. The main aim is to detect small cancers in the breast, which are most easily treatable while in their early stages and to reduce mortality and morbidity. The program recommends that women in the target age group (50–69 years) have a mammogram every two years. Women in their forties and seventies also have access to mammography without charge through this program, but are not actively recruited (AIHW 1998).

In 2000, data on causes of death for Aboriginal and Torres Strait Islander peoples were considered to be of publishable quality for New South Wales, Victoria, Queensland, Western Australia, South Australia and the Northern Territory. In that year, the leading cause of death 9.10

CIRCULATORY CONDITIONS(a), Persons aged 18 years and over — 2001 Males

Type of condition

Hypertensive disease Ischaemic heart diseases Other heart disease Tachycardia Cerebrovascular diseases Oedema Diseases of the arteries/arterioles/capillaries Diseases of veins, lymphatic vessels etc. Other diseases of the circulatory system Symptoms/signs involving the circulatory system All circulatory conditions(a)

’000 886.2 199.6 6.0 142.2 55.9 87.2 123.6 187.0 23.7 153.8 1 349.8

% 12.5 2.9 0.1 2.0 0.8 1.3 1.8 2.7 0.3 2.2 19.4

Females ’000 1 039.5 152.2 6.3 190.8 46.2 208.2 72.8 440.8 41.3 221.8 1 765.2

% 14.4 2.1 0.1 2.6 0.6 2.9 1.0 6.1 0.6 3.1 24.4

Persons ’000 1 905.7 351.8 12.4 333.0 102.1 295.5 196.5 627.8 65.1 375.6 3 115.0

(a) Each person may have reported more than one type of condition, and therefore components may not add to totals. Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

% 13.4 2.5 0.1 2.3 0.7 2.1 1.4 4.4 0.5 2.6 22.0

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Year Book Australia 2003

Although Pap smear tests have been available since the 1960s, the National Cervical Screening Program did not come into effect until 1991. The program seeks to detect the precursors to cancer or abnormalities of cells in the cervix which may lead to invasive cervical cancer. It is estimated that 90% of cervical cancers are potentially preventable (AIHW 1998). In Budget 2000–01, the Commonwealth Government announced funding for a Bowel (Colorectal) Cancer Screening Pilot. The pilot will assess the feasibility, acceptability and cost-effectiveness of bowel cancer screening. Colorectal cancer is the most common internal cancer affecting both men and women (AIHW 2001a), and accounted for 4,712 deaths in 2000.

Morbidity Estimates based on information reported in the 2001 NHS show that 311,270 Australians (1.65%) currently had a medically diagnosed neoplasm. Skin cancers were the most commonly reported form of cancer for both males (0.67%) and females (0.33%). Breast cancer was reported by approximately 25,300 women. Overall, males were slightly more likely to report cancer than females. For females, cancer prevalence peaked in the 45–54 year age group, possibly related to the peak in breast cancer prevalence in this age group. In males, cancer was most prevalent in the 65–74 year age group, reflecting in part the effect of prostate cancer (table 9.11). The National Cancer Statistics Clearing House, within the AIHW, reported that 80,864 new cases of cancer were diagnosed in 1998. Of these, 43,595 were males and 37,269 were females — an age-standardised cancer incidence rate

9.11

(age-standardised to the 1991 Australian Population Standard) of 475 for males and 346 for females per 100,000 persons. This equates to a lifetime risk of one in three males and one in four females being directly affected by cancer (AIHW 2001a). This statistic excludes approximately 270,000 annual diagnoses of non-melanocytic skin cancers, which are the most common form of cancer in Australia, but for which data are not collected routinely by cancer registries. Survival from cancer depends on a number of factors, including whether the cancer is fast or slow growing, its metastatic characteristics, its stage at diagnosis, the availability of appropriate treatment and other co-morbidities. The AIHW estimated that for the period 1992–97, the five-year relative survival rates for cancer were 57% for males and 63% for females (AIHW 2001b).

Mortality In 2000, malignant neoplasms (cancer) accounted for 35,628 deaths, which was 28% of all deaths registered. There were 20,153 male deaths and 15,475 female deaths due to cancer. Overall, cancer of the trachea, bronchus and lung was the leading cause of cancer deaths (6,878 deaths), accounting for 19% of all cancer deaths. Among males, the leading causes of cancer deaths were cancer of the trachea, bronchus and lung (23% of all male cancer deaths), prostate cancer (12%) and colon cancer (9%). Among females the leading causes of cancer deaths were breast cancer (16% of all female cancer deaths), cancer of the trachea, bronchus and lung (14%) and colon cancer (10%). Age-specific death rates for cancer increased markedly with age, and were generally greater for males than for females, apart from age groups between 25 and 54 when female deaths from breast cancer tend to occur most frequently.

CANCER(a) — 2001 Males

Malignant neoplasms

Digestive organs Respiratory and intrathoracic organs Skin Breast Genital organs Other and sight unknown Benign neoplasms and neoplasms of an uncertain nature All malignant neoplasms

’000 21.4 12.0 62.7 .. 37.4 40.6 12.1 176.1

% 0.23 0.13 0.67 .. 0.40 0.43 0.13 1.88

Females ’000 7.0 2.8 31.6 25.3 10.3 23.3 39.2 135.2

% 0.07 0.03 0.33 0.26 0.11 0.24 0.41 1.42

Persons ’000 28.4 14.8 94.3 .. 47.7 64.0 51.3 311.3

(a) Each person may have reported more than one type of condition, and therefore components may not add to totals. Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

% 0.15 0.08 0.50 .. 0.25 0.34 0.27 1.65

Chapter 9 — Health

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, whether 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). Differences in injury risk and injury outcomes are reflected in the draft National Injury Prevention Plan: Priorities for 2001–2003, a key policy response to this designated priority health area. The plan identifies four priority areas: falls among persons aged 65 years and older; falls among children under 15 years of age; drowning and near drowning; and poisoning of infants and children less than 5 years of age. Although the number of deaths from these four types of injuries is relatively small, they account for a large number of hospital admissions.

Respondents to the 2001 NHS were asked about events in the previous four weeks that resulted in an injury for which they had sought medical treatment or taken some other action. Injuries data from the survey are presented in table 9.12 and highlight differences in the reporting of injury events among males and females from different age groups.

9.12 Age group (years)

0–14 15–24 25–44 45–64 65 and over All ages

INJURY EVENTS(a) — 2001 Males % 19.3 19.9 12.4 7.4 5.2 13.0

Females % 15.5 14.2 10.6 7.5 5.9 10.7

Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

Falls have different consequences for older Australians; 2001 NHS data show that a low fall (of one metre or less) for a person aged 65 years and over was more likely to result in them sustaining a fracture than was the case for a younger person (graph 9.13). Further, women aged 65 years and over were most likely to sustain a fracture.

0–14 years 15–64 years 65 and over

8 6 4 2 0 Age group who fell

Persons % 17.5 17.1 11.5 7.4 5.6 11.8

(a) The 2001 NHS collected information on up to three injury events per person. It was possible for respondents to report more than one injury event in the previous four weeks.

9.13 LOW FALLS(a) RESULTING IN FRACTURES(b) — 2001 % 10

265

Falls resulting in fractures(c)

(a) Falls of one metre or less. (b) Based on the most recent injury event. (c) Relative standard errors greater than 25% apply to the data on fractures. Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

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Year Book Australia 2003

Mortality External causes were responsible for 8,098 deaths (6% of all deaths) registered in 2000 (table 9.14). Since 1990 there has been a 13% decrease in the standardised death rate for deaths from external causes, mainly due to a 37% decrease in the rate for transport accidents. In 2000 there were 2,363 deaths attributed to intentional 9.14

self harm (suicide), 5% lower than the 1999 figure and 13% lower than the record 2,723 deaths registered in 1997. Deaths as a result of suicide account for more than one in five deaths of persons aged 25–34 years (a rate of 20.1 per 100,000 persons) and 15–24 years (12.5 per 100,000). Males consistently have higher rates of death than females due to external causes.

EXTERNAL CAUSES OF DEATH — 2000 Crude death rate(a)

Suicide (intentional self-harm) (X60-X84) Transport accidents (V01-V99) Accidental poisoning by and exposure to noxious substances (X40-X49) Falls (W00-W19) Assault (X85-Y09) Accidental drowning and submersion (W65-W74) Other All external causes

no. 2 363 2 015 822 565 313 229 1 791 8 098

% 29.2 24.9 10.2 7.0 3.9 2.8 22.1 100.0

Males 19.5 15.3 6.0 3.2 2.1 1.9 9.8 57.8

Females 5.2 5.8 2.6 2.7 1.2 0.5 8.9 26.8

Persons 12.3 10.5 4.3 2.9 1.6 1.2 9.3 42.3

(a) Crude rate per 100,000 population. Source: Causes of Death, Australia, 2000 (3303.0).

Cardiovascular disease: 20th century trends Behavioural changes and medical advances have reduced the likelihood of people dying from cardiovascular disease over the last 30 years. Yet cardiovascular disease was still the leading cause of death in Australia in 2000, accounting for 49,687 deaths (39% of all deaths registered in that year). Because much illness and premature death from cardiovascular disease is preventable, it has been a focus of public attention and health policy, and in 1996 was designated a National Health Priority Area (AIHW 2000c). Although cardiovascular disease can be a disease and cause of death at younger ages, a much higher proportion of older people are affected by cardiovascular disease. In 2000 the majority of deaths from cardiovascular disease occurred among those aged 50 years and over.

Early in the 20th century, Australia’s population had a young age structure and the proportion of deaths from cardiovascular disease was relatively low (15% in 1907). However, as the century progressed and fewer people died from infectious diseases, this proportion increased markedly, peaking at 56% in 1968, before steadily declining. Even when the effect of age is allowed for, the pattern of rising then falling death rates from cardiovascular disease remains. The age-standardised death rate for men increased from 376 to 843 per 100,000 persons between 1907 and 1968, before falling to 256 per 100,000 persons at the close of the 20th century (graph 9.15). For women, the rate increased from 328 to 583 per 100,000 persons between 1907 and 1952, then fell to 173 in 2000.

Chapter 9 — Health

267

9.15 DEATH RATES(a) FOR CARDIOVASCULAR DISEASE Males Females

rate 900 700 500 300 100

1907

1918

1930

1941

1953

1965

1976

1988

2000

(a) Age-standardised rate per 100,000 persons. Source: AIHW 2000b.

Cardiovascular disease Cardiovascular disease, or disease of the circulatory system, comprises all diseases and conditions involving the heart and blood vessels including ischaemic heart disease, cerebrovascular disease (stroke), peripheral vascular disease and heart failure. In Australia, these diseases mostly result from impeded or diminished supply of blood to the heart, brain or leg muscles (d’Espaignet 1993). All causes of death are classified according to the International Classification of Diseases (ICD). There have been a number of revisions of the ICD since it first came into effect in 1898. The most recent revision (ICD-10) was introduced in 1999. The chapter on circulatory disease comprises the following: n

acute rheumatic fever and chronic rheumatic heart diseases (I00-I09)

n

hypertensive diseases (I10-I15)

n

ischaemic heart diseases (I20-I25)

n

pulmonary heart disease and diseases of pulmonary circulation (I26-I28)

n

other forms of heart disease (I30-I52)

n

cerebrovascular diseases (I60-I69)

n

diseases of arteries, arterioles and capillaries (I70-I79)

n

diseases of veins, lymphatic vessels and lymph nodes, not elsewhere classified (I80-I89)

n

other and unspecified diseases of the circulatory system (I95-99).

Standardised death rates enable the comparison of death rates between populations with differing age structures by relating them to a standard population. Death rates in this article have been standardised to the 1991 total population, and are expressed per 100,000 of the population.

Trends in death rates There were three main changes in the pattern of deaths from cardiovascular disease between the beginning and end of the 20th century (see graphs 9.16 and 9.17): n

Cardiovascular death rates are notably lower than they were at the beginning of the 20th century for all age groups except the very oldest (80 years and over).

n

The decline in cardiovascular death rates across the 20th century was greater for younger than for older age groups. For example, in 1907 the death rate for both males and females aged 0–24 years from cardiovascular diseases was more than 17 times larger than in 2000.

n

The age-specific death rates were substantially higher for males than for females in almost all age groups in 2000. In particular, the death rates for men aged 35–69 years were around two to three times the rates for women in those ages. There was no such systematic pattern in 1907.

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Year Book Australia 2003

9.16 AGE-SPECIFIC DEATH RATES(a) FOR CARDIOVASCULAR DISEASE, Age groups 0–54 years rate 400

Males 1907 Females 1907 Males 2000 Females 2000

300 200 100 0 0–4

10–14

20–24

30–34

40–44

50–54

(a) Deaths per 100,000 people of same sex and age group. Source: AIHW 2000b.

9.17 AGE-SPECIFIC DEATH RATES(a) FOR CARDIOVASCULAR DISEASE, Age groups 50 years and over rate 8000 6000

Males 1907 Females 1907 Males 2000 Females 2000

4000 2000 0 50–54

55–59

60–64

65–69

70–74

75–79

80–84

85+

(a) Deaths per 100,000 people of same sex and age group. Source: AIHW 2000b.

Indigenous death rates There is a lack of national health-related data on Aboriginal and Torres Strait Islander peoples. Based on the most reliable state and territory data (from Western Australia, South Australia and the Northern Territory), in 1996–98, Indigenous Australians died from cardiovascular disease at twice the rate of other Australians (AIHW 2001). In 2000 it was the leading cause of death among Indigenous persons (28% of Indigenous deaths). In 1998–2000, the median age at death from cardiovascular disease for Indigenous males was 57 years compared with 78 years for the non-Indigenous male population. For females, the median age for deaths from this cause was 64 years for Indigenous females and 84 years for the non-Indigenous female population. As well as

from cardiovascular disease, Indigenous people have low median ages at death from all causes of death combined, and this is reflected in the lower life expectancy of Indigenous peoples. The higher death rate from cardiovascular disease for the Indigenous population is consistent with a number of risk factors being more common among Indigenous peoples than the total population. In 1995 Indigenous Australians were about twice as likely to smoke. Indigenous adults were also about twice as likely to consume alcohol to a high risk level, despite a lower proportion of Indigenous adults consuming alcohol, compared to non-Indigenous adults (ABS 2001). In 1994, 25% of Indigenous males aged 18 years and over and 29% of Indigenous females aged 18 years and

Chapter 9 — Health

over were obese, compared to about 19% of all Australians aged 19 years and over in 1995 (ABS 2001).

Morbidity While the death rate from cardiovascular disease has declined, its prevalence in the population has increased. According to results from three successive national health surveys, prevalence has risen from 8% (1.1 million) in 1977–78 to 17% (2.2 million) in 1989–90 and to 21% (2.8 million) in 1995 (ABS 1995). This could be partly associated with a broad range of improvements in medical interventions, which have increased the survival rate following acute cardiovascular events and among people living with cardiovascular disease. Improved techniques for diagnosing cardiovascular disease and better public information have increased the prevention and early detection of cardiovascular disease. The introduction of specialist ambulance services and better public knowledge of rescue-emergency management techniques have better enabled people affected by cardiovascular disease to receive rapid and effective treatment when required. Moreover, with the establishment of coronary care units and developments in surgery and drugs, the in-hospital care of patients has greatly improved.

Leading causes of cardiovascular deaths The two leading categories of causes of death from cardiovascular disease are ischaemic heart diseases (also called coronary heart disease) and cerebrovascular disease (stroke). Table 9.18 presents cardiovascular deaths data for selected years over the last century. Over the last three decades, ischaemic heart diseases have been the leading cause of cardiovascular death for men and women. In 2000, they accounted for 59% of men’s deaths and 48% of women’s deaths from cardiovascular disease. This was despite a rapid decline in death rates from ischaemic heart diseases over the last three decades. Between 1968 and 2000, the death rate for ischaemic heart diseases fell from 498 to 150 deaths per 100,000 for men, and from 250 to 84 deaths per 100,000 for women. Stroke has been the second most common cause of cardiovascular death since 1968, accounting for 21% of men’s and 28% of women’s deaths from cardiovascular disease in 2000. Throughout most of the 20th century, women were more likely to die from stroke than men. This pattern was reversed by 1968. Between 1968 and 2000, the standardised male death rate from stroke fell from 184 to 54 deaths per 100,000 population, while the female rate fell from 168 to 48. This represents a fall of 71% for both men and women over the period. 9.18

269

The costs of cardiovascular disease are greater than for any other disease. In 1993–94, it accounted for $3.7b or 12% of total health costs (AIHW 2000c). In 1996, cardiovascular disease accounted for 22% of all disease burden in Australia (AIHW 1999). However, it should be recognised that the impact of cardiovascular disease is complex due to its association and co-morbidity with other conditions, particularly diabetes.

DEATH RATES(a) FOR SELECTED TYPES OF CARDIOVASCULAR DISEASE

Cause of death (ICD-9) codes

1907 rate

1931(b) rate

1950(b) rate

1968(b) rate

2000 rate

n.a. 106.3 n.a. 59.8 479.2

n.a. 144.3 59.1 9.6 743.4

497.5 183.5 20.2 9.7 842.7

150.2 53.5 4.9 1.0 255.5

n.a. 117.1 n.a. 53.0 413.0

n.a. 166.1 53.5 9.3 562.5

249.5 168.4 20.6 10.1 548.3

84.0 48.3 5.0 1.3 172.6

MALES Ischaemic heart diseases (410-414) Cerebrovascular diseases (430-438) Hypertension (401-405) Chronic rheumatic heart diseases (393-398) All circulatory diseases (390-459)

n.a. 107.1 n.a. n.a. 375.6

FEMALES Ischaemic heart diseases (410-414) Cerebrovascular diseases (430-438) Hypertension (401-405) Chronic rheumatic heart diseases (393-398) All circulatory diseases (390-459)

n.a. 109.2 n.a. n.a. 328.1

(a) Age-standardised rate per 100,000 persons. (b) 1931, 1950 and 1968 were years in which ICD revisions were implemented. Source: AIHW Mortality Database.

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Risk factors Studies have also attributed proportions of the total burden of disease to a range of health-related risk factors. The leading risk factors in 1996 (in terms of their contribution towards total disease burden) were tobacco smoking (10%), physical inactivity (7%), high blood pressure (5%), obesity (4%) and a lack of fruit and vegetables (3%) (AIHW 1999). All of these influence the prevalence of cardiovascular disease in particular. Smoking, physical inactivity and poor nutrition are risk factors that are associated with lifestyle choices, and these can increase the likelihood of, for example, high blood pressure, high cholesterol and obesity for an individual. In 1998, it was estimated that 13% of all cardiovascular deaths were attributable to tobacco smoking (AIHW 2001). There has been only a slight decline in smoking rates in recent years. While 26% of Australians over 14 years old reported smoking in 1998 compared to 27% in 1995, there has been a steady trend in reduction of smoking rates since the 1970s, when smoking levels in the Australian population were around 37%. In 1999, it was estimated that 44% of Australians aged 18–75 years (5.8 million people) did not undertake physical activity at the level recommended to obtain a health benefit. Between 1997 and 1999 there was a significant decline in the number of people reaching sufficient levels of physical exercise (from 62% to 56%) (AIHW 2001). Good nutrition is the outcome of a complex range of dietary habits, including eating significant quantities of fruit and vegetables, and reducing intakes of saturated fat and salt. Among Australian adults, the consumption of saturated fat as a proportion of total energy intake has fallen over the past decade, and overall consumption of fats and of red meat (a source of saturated fat and dietary cholesterol)

has been declining since the late 1960s. In contrast, consumption of fruit and vegetables has increased (ABS 2000). In 1999–2000 it was estimated that almost three million Australian adults (aged 25 years and over) had high blood pressure, or were on treatment for the condition. More than six million Australian adults had high cholesterol levels (AIHW 2001). There has been a significant decline in the proportion of people with high blood pressure (and/or receiving treatment) since the 1980s, yet there is thought to have been little change in blood cholesterol levels in the Australian population since the 1980s. This is despite the apparent trend in declining intake of saturated fats and dietary cholesterol (AIHW 2001). In the last 20 years there has also been a significant increase in the proportions of overweight and obese Australians. Of those people living in capital cities, the proportion of overweight or obese women aged 25–64 years has increased from 27% in 1980 to 45% in 1999–2000. For men the proportion increased from 48% to 65% (AIHW 2001).

Overall trends in the prevalence of risk factors Public health promotion programs have encouraged Australians to improve their health and reduce their risk factors. One of the results of the public response is that there have been several trends in the reduction of behavioural risk factors directly associated with cardiovascular disease over the last 30 years. This includes the reduction in smoking rates, reduction in saturated fat intake and increase in fruit and vegetable consumption. This has coincided with an overall reduction in cardiovascular death rates over this period. However, the increased prevalence of overweight and obese Australians seems likely to be related to the increase in physical inactivity. As overweight and obesity are also related to diabetes, high cholesterol and high blood pressure, a continuing increase in the prevalence of these conditions/risk factors within the Australian population is likely to influence the prevalence of cardiovascular disease.

References AIHW (Australian Institute of Health and Welfare) 1999, The burden of disease and injury in Australia, AIHW Cat. No. PHE17, AIHW, Canberra. AIHW 2000a, Australia’s Health 2000, AIHW Cat. No. 19, AIHW, Canberra. AIHW 2000b, Australian long term trends in mortality, AIHW, Canberra.

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271

AIHW 2000c, First Report on National Health Priority Areas 1996, AIHW Cat. No. PHE1, AIHW, Canberra. AIHW 2001, Heart, Stroke and Vascular Diseases: Australian Facts 2001, AIHW Cat. No. CVD14, AIHW, Canberra. ABS (Australian Bureau of Statistics) 1979, Australian Health Survey, 1977–78: Chronic Conditions, cat. no. 4314.0, ABS, Canberra. ABS 1995, National Health Survey: Cardiovascular and Related Conditions, Australia, cat. no. 4372.0, ABS, Canberra. ABS 2000, Apparent Consumption of Foodstuffs, Australia, 1997–98 and 1998–99, cat. no. 4306.0, ABS, Canberra. ABS 2001, The Health and Welfare of Australia’s Aboriginal and Torres Strait Islander Peoples, cat. no. 4704.0, ABS, Canberra. d’Espaignet ET 1993, Trends in Australian Mortality — Diseases of the Circulatory System: 1950–1991, Australian Government Publishing Service, Canberra.

Diabetes mellitus

Types of diabetes

Diabetes mellitus is the sixth leading cause of death in Australia, and contributes to significant illness and disability. In 1996 diabetes mellitus was the seventh leading cause of burden of disease in Australia, accounting for 3% of the total burden (AIHW 2000a). People with diabetes have reduced life expectancy and are more likely than people without diabetes to experience major health complications involving the eyes, kidneys, nerves and arteries (McCarthy et al. 1996). Population groups at particular risk of diabetes are older people, Indigenous people and some sections of the overseas-born population.

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 during pregnancy in about 4–6% of females not 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 (AIHW 2000a).

Policy initiatives As part of the 2001–02 Federal Budget, the Commonwealth Government announced funding of $43.4m over four years to ensure a national approach to improving the prevention, earlier diagnosis and management of people with diabetes. The National Integrated Diabetes Program consists of four components that will: n

provide incentives for general practice for earlier diagnosis and best practice management of people with diabetes

n

provide infrastructure and support for Divisions of General Practice to work with general practitioners and other health professionals to remove barriers to better care for people with diabetes

n

engage consumers with diabetes to enable appropriate self care and support partnerships with health professionals

n

support changes in the practices of health professionals.

National Diabetes Register In 1999, the National Diabetes Register was established at the AIHW, as part of the National Diabetes Strategy. The register collects information about people who have been diagnosed with insulin-treated diabetes since January 1999. The major objective of the register is to assist researchers in epidemiological studies of the causes, complications and prevention of diabetes (AIHW 2001c). The Register has revealed that the incidence (the number of new cases in the population previously without the disease) of diabetes among 0–14 year olds is much higher than previously found in Australia. In Australia in 2000, the incidence among 0–14 year olds was 19.2 per 100,000 males and 18.6 per 100,000 females (AIHW 2001c).

Current and long-term diabetes Preliminary findings from the 2001 NHS indicate that 2.9% of Australians (554,200) reported that they currently had long-term diabetes (that is, it had lasted or was expected to last for six months or more) (table 9.19).

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9.19

PEOPLE WITH LONG-TERM(a) AND CURRENT DIABETES — 2001

Type of diabetes

Non-insulin dependent diabetes mellitus — Type 2 Insulin dependent diabetes mellitus — Type 1 Diabetes type unknown Total long-term and current diabetes(b)

Males ’000 212.4 48.9 10.2 271.5

Females ’000 221.5 46.3 15.0 282.7

Persons ’000 433.8 95.2 25.2 554.2

Persons % 78.3 17.2 4.5 100.0

(a) Has lasted or is expected to last for six months or more. (b) Does not include gestational diabetes as it is not usually long-term. Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

More females reported diabetes than males (282,700 females, 271,500 males). In terms of type of diabetes, over three-quarters of people reporting long-term current diabetes identified Type 2 diabetes (table 9.19).

Gestational diabetes Results from the 2001 NHS indicate that an estimated 100,820 women had been told they had gestational diabetes at some time in their lives.

Mortality In 2000, diabetes mellitus was the underlying cause of death in 3,006 deaths, 2.3% of all deaths registered. Of these, 1,594 deaths were males and 1,412 females. The age-standardised death rate due to diabetes was 13 per 100,000 persons (17 for males and 11 for females per 100,000 persons).

Mental health Although approximately 80% of the population enjoy ‘good’ mental health free of mental disorders, it has been estimated that mental disorders caused 13% of the total disease burden in 1996. Although mental illness is not a major direct cause of death, it is associated with a proportion of deaths due to suicide and some other conditions, and is an important cause of chronic disability. For males, substance use disorders (from alcohol or other drugs) accounted for 33% of the mental health burden, while for females affective disorders such as depression accounted for 39% of the mental health burden (AIHW 2000a).

Policy initiatives After completion of the initial National Mental Health Strategy (1992 to 1998), the Second National Mental Health Plan was endorsed in July 1998 as the framework for ongoing activity. The Plan is operating over a five-year period from 1998–99 to 2002–03, and is a joint initiative of the Commonwealth Government and the state and

territory governments. The National Depression Initiative (being carried forward by an independent public company called ‘beyondblue’) will build on priorities identified in the National Action Plan for Depression. The aims of ‘beyondblue’ are to increase community awareness of depressive illness, to foster greater understanding of the illness, and to support research into prevention, treatment and management approaches (Commonwealth Department of Health and Aged Care 2001a). In the 1999–2000 Federal Budget, $48m over five years from July 1999 was committed for a National Suicide Prevention Strategy to build on the former National Youth Suicide Prevention Strategy. While the Strategy will continue to focus on youth suicide, it will be expanded to include other high risk groups such as the elderly, people with mental illnesses, or substance use problems, prisoners, and people living in rural communities, and in Aboriginal and Torres Strait Islander communities. In the 2001–02 Federal Budget, $120.4m over four years from July 2001 was committed to the Better Outcomes In Mental Health Care initiative which aims to increase the involvement of general practitioners in the provision of primary mental health care (Commonwealth Department of Health and Aged Care 2001b).

Psychological distress In the 2001 NHS, information on mental health was collected from adult respondents, using the Kessler 10 Scale (K10), a 10-item scale of current psychological distress. The K10 asks about negative emotional states in the four weeks prior to interview. The results from the K10 are grouped into four categories: low (indicating little or no psychological distress), moderate, high, and very high levels of psychological distress. Based on research from other population studies, a very high level of psychological distress, as shown by the K10, may indicate a need for professional help.

Chapter 9 — Health

In 2001, 3.6% of the adult population reported a very high level of psychological distress. Women were more likely than men to report high (10.9% of women and 7.2% of men) and very high (4.4% of women and 2.7% of men) levels of distress. The greatest sex difference was between young women and men aged 18–24 years, with 5.4% of women having very high levels of psychological distress compared to 2.7% of men in this age group (graph 9.20). A higher proportion of both males and females aged 45–54 years reported very high levels of psychological distress compared with any other age group.

Asthma 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. In 1996, asthma was estimated to be responsible for 2.6% of the total burden of disease in Australia (AIHW 2000a).

Policy initiatives A national General Practitioner Asthma Initiative, which focuses on the Asthma 3+ Visit Plan, commenced in 2001 with the Commonwealth Government providing $48.4m over four years to support general practice to better manage the clinical care of people with moderate to severe asthma. General practitioners will receive additional funds through the Practice Incentive Program for each patient with moderate to severe asthma who completes the Asthma 3+ Visit Plan. This plan includes at least three general practitioner consultations (incorporating diagnosis), a written asthma action plan, self-management education and review.

Morbidity The 2001 NHS estimated that 11.6% of Australians (2.20 million people) currently have long-term asthma (that is, it has lasted or was expected to last for six months or more).

9.20 VERY HIGH LEVELS OF PSYCHOLOGICAL DISTRESS(a) — 2001 % 6

Males Females

5 4 3 2 1 18–24

25–34

273

35–44 45–54 Age group (years)

55–64

65 and over

(a) Based on Kessler 10 Scale (K10). Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

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Year Book Australia 2003

general practitioners, accounting for 3.2 of every 100 encounters (2.2% of all problems managed) (AIHW 1999). Asthma is also one of the top six reasons for doctors referring patients to hospital. During 1999–2000, asthma was the principal diagnosis in 47,008 hospital separations (0.8% of all hospital separations), with an average stay of 2.7 days.

As illustrated in graph 9.21, asthma is particularly prevalent in young people. The International Study of Asthma and Allergy in Childhood reported an estimated prevalence rate of approximately 25% in 6–7 year old Australian children and 29% in 13–14 year olds (ISAAC Steering Committee 1998). In the 2001 NHS, medically diagnosed asthma was more frequently reported by individuals aged less than 25 years than by individuals in older age groups. In this younger age group, asthma was more prevalent in males than females, while for those aged 25 and over the pattern was reversed and asthma was more prevalent in females than males.

Mortality Asthma was identified as the underlying cause of 0.3% of deaths registered in Australia in 2000, when 169 males and 285 females died from the disease. The most recent peak in asthma deaths occurred in 1989, and standardised death rates for asthma have been declining since then (graph 9.22). Most asthma deaths occur in older age groups.

According to the Bettering the Evaluation and Care of Health (BEACH) survey, asthma is the fifth most frequently managed problem by

9.21 ASTHMA — 2001 % 20

Males Females

17 14 11 8 5 0–4

5–14

15–24

25–34

35–44

45–54

55–64

65–74

75 and over

Age groups (years) Source: ABS data available on request, preliminary data from the 2001 National Health Survey.

9.22 STANDARDISED DEATH RATES(a) FROM ASTHMA rate(a) 6 5 4 3 2

Males Females

1988

1990

1992

1994

1996

(a) Standardised death rate per 100,000 of the midyear 1991 population. Source: AIHW 2000, 'Australian long term trends in mortality'.

1998

1 2000

Chapter 9 — Health

Communicable diseases Communicable diseases (including infectious and parasitic diseases) are those diseases capable of being transmitted from one person to another, or from one species to another. In 2000, infectious diseases accounted for 3.6% of all deaths in Australia (4,582 deaths). Influenza and pneumonia accounted for 64% (2,937) of deaths due to communicable disease. Death rates increase with age, and were greater for males than females in most age groups. In 1999–2000, there were 12,859 hospitalisations in Australia with a primary diagnosis of communicable diseases. Influenza and pneumonia were responsible for 20% (2,591) of hospital admissions due to communicable diseases. Under the National Notifiable Diseases Surveillance System (NNDSS), state and territory health authorities submit reports of more than 50 communicable disease notifications for compilation by the Commonwealth Department of Health and Ageing. In 2001, the diseases reported to NNDSS were revised to include cryptosporidiosis, influenza, pneumococcal disease, Japanese encephalitis, Kunjin virus, Murray Valley encephalitis, anthrax, Australian bat lyssavirus, and other lyssavirus infections. Diseases which were becoming rare or of less public health significance in Australia were removed from the NNDSS. These diseases were chancroid, lymphogranuloma venereum, hydatid disease and yersiniosis. The provisional total of notifications to NNDSS in 2001 is 100,669, an increase on the total notifications in 2000 (89,788) (table 9.23). This increase in notifications reflects the inclusion of new diseases as outlined above. For the diseases reportable in both years, there was a 12% increase. In 2001, sexually transmitted infections were the most commonly reported communicable diseases, accounting for 27.8% of all notifications, followed by food-borne diseases (26%) and blood-borne diseases (24.8%). Chlamydia was the most commonly reported sexually transmitted infection (20,185 notifications, 72% of total), campylobacteriosis the most common food-borne disease (16,185 notifications, 61% of total) and hepatitis C (unspecified) was the most common blood-borne disease

275

(15,649 notifications, 62% of total). Compared with previous years there were increases in the total numbers of notifications of food-borne and vaccine preventable diseases. Increases in food-borne disease are due to a continuing increase in cases of campylobacteriosis and the inclusion in 2001 of cases of cryptosporidiosis for the first time. The total vaccine preventable diseases increased due to the inclusion of influenza and pneumococcal disease for the first time in 2001 and increases in reports of pertussis. Decreases in notifications of measles, mumps and rubella reflect successful vaccination campaigns. Declines in tuberculosis (TB) have given Australia one of the lowest rates of TB in the world.

HIV and AIDS In collaboration with the state and territory health authorities and the Commonwealth Government, surveillance for human immunodeficiency virus (HIV) and acquired immunodeficiency 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 Commonwealth Department of Health and Ageing through the Australian National Council on AIDS, Hepatitis C and Related Diseases. At 31 December 2001, the cumulative number of HIV cases (since 1985) was 21,725. Also, the cumulative number of AIDS diagnoses was 8,810 (since 1981), and there had been a total of 6,174 deaths attributable to AIDS (table 9.24). The reduced numbers of new AIDS diagnoses in recent years (table 9.24) has been due to the decline in HIV incidence that took place in the mid 1980s, and the use, since around 1996, of effective combination antiretroviral therapy for the treatment of HIV infection. In Australia, approximately 50% of all people living with HIV infection are receiving antiretroviral treatment. However, the long-term effectiveness of antiretroviral treatment remains unknown, and if treatments begin to fail for a substantial proportion of people, then AIDS incidence could increase again.

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Year Book Australia 2003

9.23

NATIONAL NOTIFIABLE DISEASE SURVEILLANCE SYSTEM REPORTS Notifications

Rate per 100,000 population(a)

Disease(d)

1999(b) no.

2000(b) no.

2001(c) no.

1999(b) %

2000(b) %

2001(c) %

Blood-borne diseases Hepatitis B (incident) Hepatitis B (unspecified) Hepatitis C (incident) Hepatitis C (unspecified) Hepatitis D Hepatitis n.e.c.

303 7 218 396 18 798 19 —

395 7 918 441 19 607 27 1

420 8 312 589 15 649 21 —

1.6 38.4 2.6 99.1 0.1 —

2.1 41.8 2.9 102.3 0.2 —

2.2 43.2 3.7 80.6 0.1 —

Gastrointestinal diseases Botulism Campylobacteriosis Cryptosporidiosis Haemolytic uraemic syndrome Hepatitis A Hepatitis E Listeriosis Salmonellosis Shigellosis SLTEC, VTEC(e) Typhoid Yersiniosis

— 12 657 .. 23 1 554 9 64 7 147 547 47 68 125

2 13 595 .. 15 812 10 67 6 151 487 33 58 73

2 16 185 1 631 5 534 10 61 7 113 568 48 84 ..

— 100.8 .. 0.1 8.2 0.1 0.3 37.7 4.4 0.3 0.4 1.0

— 107.1 .. 0.1 4.2 0.1 0.3 32.1 3.8 0.2 0.3 0.6

— 125.7 8.4 — 2.7 0.1 0.3 36.6 2.9 0.2 0.4 ..

3

1

3







14 045 17 5 644 1 844

16 866 12 5 686 1 755

20 185 35 6 394 1 392

74.1 0.2 29.8 9.7

88.0 0.1 29.7 9.2

103.9 0.2 32.9 7.2

Vaccine preventable diseases Diphtheria Haemophilus influenzae type b Influenza Measles Mumps Pertussis Pneumococcal disease Rubella Tetanus

— 40 .. 238 172 4 417 .. 377 2

— 28 .. 107 212 5 942 .. 322 6

1 26 1 327 141 114 9 565 165 268 3

— 0.2 .. 1.3 1.1 23.3 .. 2.0 —

— 0.1 .. 0.6 1.4 31.0 .. 1.7 —

— 0.1 6.8 0.7 0.6 49.2 8.5 1.4 —

Vector-borne diseases Arbovirus infection n.e.c. Barmah Forest virus infection Dengue Kunjin virus Malaria Murray Valley encephalitis Ross River virus infection

62 638 132 .. 732 .. 4 416

69 634 215 .. 951 .. 4 200

37 1 144 184 2 718 3 3 235

0.3 3.4 0.7 .. 3.9 .. 23.3

0.4 3.3 1.1 .. 5.0 .. 21.9

0.2 5.9 0.9 — 3.7 — 16.7

Quarantinable diseases Cholera Sexually transmissible diseases Chlamydial infection Donovanosis Gonococcal infection Syphilis

For footnotes see end of table.

...continued

Chapter 9 — Health

277

9.23 NATIONAL NOTIFIABLE DISEASE SURVEILLANCE SYSTEM REPORTS — continued Notifications Disease(d)

Zoonoses Brucellosis Hydatid infection Leptospirosis Ornithosis Q fever Other diseases Legionnellosis Leprosy Meningococcal infection Tuberculosis Total

Rate per 100,000 population(a)

1999(b) no.

2000(b) no.

2001(c) no.

1999(b) %

2000(b) %

2001(c) %

52 26 323 84 515

27 26 243 100 573

19 .. 250 140 694

0.3 0.2 1.7 0.9 2.7

0.1 0.2 1.3 1.1 3.0

0.1 .. 1.3 0.7 3.6

249 6 591 1 143

472 4 621 1 024

304 4 670 927

1.3 — 3.1 6.0

2.5 — 3.2 5.3

1.6 — 3.4 4.8

84 743

89 788

100 669

..

..

..

(a) Rate per 100,000 population is calculated using the estimated resident population at the midpoint (30 June) of the relevant calendar year. (b) NNDSS data for 1999 and 2000 revised after consultations with states and territories in December 2001. (c) Notifications data for the year 2001 were provisional at the date of analysis (6 July 2002). (d) Diseases reported to NNDSS from all jurisdictions except hepatitis B (unspecified) not reported from NT; incident hepatitis C not reported from Qld; campylobacteriosis not reported from NSW; donovanosis not reported from SA. Diseases under surveillance for which no notifications were received in the period 1999–2001 were plague, rabies, viral haemorrhagic fever, yellow fever, chancroid, lymphogranuloma venereum, poliomyelitis, Japanese encephalitis, anthrax, Australian bat lyssavirus, other lyssavirus n.e.c. (e) SLTEC/VTEC is shiga-like toxins and verotoxin producing E. coli infections. Source: National Notifiable Disease Surveillance System.

9.24

NEWLY DIAGNOSED HIV CASES(a), AIDS CASES AND DEATHS FOLLOWING AIDS(b) Year of diagnosis

HIV cases(a) AIDS cases(b) AIDS deaths(b)

Prior to 1993 13 953 4 217 2 790

1993 1 078 845 701

1994 1 015 954 753

1995 930 809 654

1996 915 669 515

1997 815 381 245

1998 760 315 156

1999 725 189 127

2000 746 253 136

2001 777 178 97

Total 21 725 8 810 6 174

(a) Not adjusted for multiple reporting. Total includes 11 cases for which the date of HIV diagnosis was not reported. (b) AIDS cases diagnosed and deaths following AIDS in 1999, 2000 and 2001 were adjusted for reporting delays; AIDS cases diagnosed and deaths following AIDS in previous years were assumed to be completely reported. Source: National Centre in HIV Epidemiology and Clinical Research, ‘HIV/AIDS, viral hepatitis and sexually transmissible infections in Australia Annual Surveillance Report 2002’, National Centre in HIV Epidemiology and Clinical Research, The University of New South Wales, Sydney, NSW, 2002.

Transmission of HIV in Australia continues to be mainly through sexual contact between men (77.6%). A small percentage of diagnosed infections were associated with a history of injecting drug use (4.5%) or heterosexual contact only (10.6%) (table 9.25). Mother-to-child transmission of HIV infection remains rare in Australia.

Children’s immunisation 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 the Health Insurance Commission (HIC) on behalf of the

Commonwealth Department of Health and Ageing 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 National Health and Medical Research Council (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 that, at 31 March 2002, 90.5% of one year olds and 87.8% of two year olds were fully immunised according to the NHMRC Recommended Immunisation Schedule. State

278

Year Book Australia 2003

summaries by age group based on ACIR data are published quarterly in Communicable Diseases Intelligence bulletin.

persons are funded by a number of sources, including the Commonwealth. Public health insurance is provided through Medicare, which is discussed in more detail later in this chapter.

Health care delivery and financing

The states and territories are primarily responsible for the delivery and management of public health services and the regulation of health care providers. They deliver public hospital services and a wide range of community and public health services. For example, some state and territory government funded organisations provide school dental care and dental care for low income earners, with other dental care being delivered in the private sector without government funding. Local governments within states deliver most environmental health programs.

Government role The Commonwealth has a leadership role in policy formulation, particularly in areas such as public health, research and national information management. It funds, directly or indirectly, most non-hospital medical services, pharmaceuticals and health research. With the states and territories, it jointly funds public hospital services, and home and community care for aged and disabled persons. Residential facilities for aged

9.25 CHARACTERISTICS OF CASES OF NEWLY DIAGNOSED HIV INFECTION(a), Number of cases and proportion of total cases Year of diagnosis

Total cases Males State/territory New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Exposure category(c) Male homosexual contact Male homosexual contact and injecting drug use Injecting drug use(d) Heterosexual contact Haemophilia/coagulation disorder Receipt of blood/tissue Mother with/at risk of HIV infection Health care setting Other/undetermined

Units no. %

Prior to 1993 1993 1994 1995 1996 1997 1998 1999 2000 2001 Total(b) 13 953 1 078 1 015 930 915 815 760 725 746 777 21 725 93.6 92.5 90.7 91.8 91.6 89.4 87.0 89.5 89.0 87.5 92.3

% % % % % % % %

60.7 20.4 8.7 3.4 4.7 0.4 0.5 1.2

55.4 20.6 12.4 5.1 4.7 0.2 0.9 0.6

49.7 21.3 16.0 3.7 7.3 0.2 0.5 1.3

57.9 17.6 12.1 3.3 6.3 0.6 0.2 1.9

50.0 20.4 16.8 5.0 6.1 0.3 0.5 0.8

52.8 22.1 14.0 4.2 4.6 — 1.3 1.0

53.6 18.4 13.8 4.6 6.6 0.4 1.6 1.0

53.1 19.2 17.1 3.0 5.4 0.4 0.7 1.1

48.4 25.2 15.4 3.1 6.2 — 0.4 1.3

47.6 26.5 13.1 5.4 5.8 0.3 0.5 0.8

57.6 20.7 10.7 3.7 5.1 0.4 0.6 1.2

%

81.4

79.1

74.3

73.9

75.5

72.8

65.2

65.0

68.2

67.2

77.6

% % %

4.3 4.8 5.6

3.6 3.5 12.8

6.3 3.4 13.7

4.9 4.6 15.3

4.0 2.8 16.6

4.6 3.1 18.4

4.6 3.4 25.6

6.1 5.8 22.2

3.4 4.4 23.6

4.6 5.5 22.1

4.0 4.5 10.6

% %

2.6 1.9

— 0.3

— 0.8

0.1 0.3

— 0.2

— 0.1

0.1 0.6

0.5 0.3

— —

0.1 —

1.6 1.3

% % %

0.2 — 22.1

0.5 0.2 9.3

1.0 0.3 5.2

0.8 0.1 7.9

0.9 — 9.8

1.0 — 9.4

0.4 — 8.6

0.1 — 9.8

0.4 — 8.2

0.4 — 10.8

0.4 — 17.3

(a) Not adjusted for multiple reporting. (b) Total includes 11 cases for which the date of HIV diagnosis was not reported. (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: National Centre in HIV Epidemiology and Clinical Research, ‘HIV/AIDS, viral hepatitis and sexually transmissible infections in Australia Annual Surveillance Report 2002’, National Centre in HIV Epidemiology and Clinical Research, The University of New South Wales, Sydney, NSW, 2002.

Chapter 9 — Health

Public hospitals, which provide the majority of acute care beds, are funded by the Commonwealth Government and the state and territory governments, in addition to receiving revenue from services to private patients. Large urban public hospitals provide most of the more complex types of hospital care such as intensive care, major surgery, organ transplants and renal dialysis, as well as non-admitted patient care. Public hospitals have their own pharmacies which provide medicines to admitted patients free of charge and do not attract direct Commonwealth subsidies under the PBS. This is discussed in more detail later in this chapter. A small number of doctors and paramedical professionals are salaried employees of the various tiers of government. Many salaried specialist doctors in public hospitals are able to treat some private patients in hospital and usually contribute to the hospital a portion of the income earned from fees charged. Other doctors may contract with public hospitals to provide medical services.

patients directly, a portion of medical fees for services provided to private admitted patients in hospitals, paramedical services, some dental services and some aids such as spectacles. The Commonwealth subsidises private health insurance premiums through a 30% rebate.

National health care system Australia has a national system for the delivery of health care which generally covers all permanent residents of Australia. The system is financed largely by general taxes, a proportion of which is raised by an income-related Medicare levy. This is discussed in more detail in the following section. There are five major kinds of Commonwealth health funding mechanisms: n

grants to state and territory governments under the 1998–2003 Australian Health Care Agreements to assist with the cost of providing public hospital services

n

medical benefits, providing patients with rebates on fees paid to privately practising doctors and optometrists

n

pharmaceutical benefits, through the PBS, providing patients with access to a broad range of subsidised medicines

n

Health Program Grants to government and non-government service providers for a range of health services (e.g. radiation oncology (capital component), pathology and primary medical services). Health Program Grants are used to achieve health policy objectives such as improving access for specific population groups, influencing the growth and distribution of selected and potentially high cost services, or providing an alternative to fee-for-service arrangements, such as the Medicare and PBS

n

the 30% private health insurance rebate.

Private sector role The strong private sector, operating in the delivery of, and insurance for, health services, receives substantial direct and indirect government subsidies. Within this sector, organisations operating for profit and not for profit play a significant role in providing health services, public health and health insurance. For example, privately owned nursing homes provide the majority of long-term aged care beds. In the past, private hospitals tended to provide less complex non-emergency care, such as simple elective surgery. However, they are increasingly providing complex, high technology services. Separate centres for non-admitted and day-only admitted patient surgical procedures are mostly located in the private sector. This sector includes a large number of doctors and paramedical professionals who are self-employed, generally providing services such as general practice and specialist services, diagnostic imaging, pathology and physiotherapy. Most prescribed pharmaceuticals dispensed by private sector pharmacies are directly subsidised by the Commonwealth through the PBS. An important component of the Australian health care system is private health insurance, which can cover part or all of the hospital charges to private

279

In some instances, the level of benefit for medical services and prescribed pharmaceuticals may be higher if the patient is receiving an age or disability pension or other types of government support payments. In addition to the specific funding mechanisms mentioned above, health services receive part of the Goods and Services Tax (GST) revenue, general revenue assistance and Specific Purpose Payments provided by the Commonwealth to state and territory governments.

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Medicare levy When Medicare began in 1984, the levy was introduced as a supplement to other taxation revenue, to enable the Government to meet the additional costs of the universal national health care system, which were greater than the costs of the more restricted systems that preceded it. The Medicare levy, which was increased from 1% to 1.25% of taxable income on 1 December 1986, increased to 1.4% on 1 July 1993 and to 1.5% on 1 July 1995. For 2001–02, the general Medicare levy rate was 1.5% of taxable income. For persons who were not eligible for the Senior Australians’ tax offset or the pensioner tax offset, no levy was payable by individuals with income less than $14,539 per year or by families with income less than $24,534, with a further $2,253 per year allowed for each child. Under the Senior Australians’ tax offset, no levy was payable by individuals with income less than $20,000 or families with an income less than $31,729. Under the pensioner tax offset, no levy was payable by individuals with income less than $16,571 or families with income less than $24,534. Single people with incomes above $50,000 and families with incomes above $100,000, with a further $1,500 after the first child, who were not covered by private health insurance, paid a levy of 2.5% of taxable income, which includes a 1% Medicare Levy Surcharge. From 24 May 2000, high income earners ($50,000 single, $100,000 families) who purchased a high front end deductible (FED) health insurance product were not exempt from the Medicare Levy Surcharge from 1 July 2000. A high FED costs over $500 for single participants and over $1,000 for families. In 2000–01, revenue raised from the Medicare levy was approximately 18% of total Commonwealth health expenditure. The Australian Taxation Office estimated revenue from the Medicare levy to be $4.6b in 2000–01.

The Commonwealth Government’s funding of hospitals Total Commonwealth funding under the 1998–2003 Australian Health Care Agreements is currently estimated as $31.6b over the five years to 30 June 2003. In 2000–01 total Commonwealth funding under the Australian Health Care Agreements was around $6.3b. Of this amount, over 98% was paid to the states and territories as Health Care Grants, while the balance was either allocated to national initiatives in areas of mental health, palliative care and casemix development or paid to those states and territories which were eligible to receive financial assistance from the National Health Development Fund.

Total health expenditure For 2000–01, the preliminary estimate of total expenditure on health (including both public and private sectors) was $60.8b, compared with expenditure of $55.7b in the previous year (table 9.26). This represented an average rate of health expenditure in 2000–01 of $3,153 per person. In 2000–01, governments provided more than two-thirds (70%) of the funding for health expenditure, while the remaining 30% was provided by the private sector. Health expenditure in volume terms grew at an average annual rate of 4.4% between 1990–91 and 2000–01. In 2000–01, health expenditure as a proportion of gross domestic product was 9.0%. This ratio was 8.8% in 1999–2000, up from 8.7% in 1998–99.

Hospitals Public hospitals In 2000–01 there were 749 public hospitals nationally, including 23 psychiatric hospitals, compared with 729 in 1996–97. There were an average of 52,591 beds in public hospitals during 2000–01 (table 9.27), representing 68% of all beds in the hospital sector (public and private hospitals combined). Public hospital beds have declined from 3.1 beds per 1,000 population in 1996–97 to 2.7 beds in 2000–01. The number of patient separations (discharges, deaths, and transfers) from public hospitals during 2000–01 was 3.9 million, compared with 3.6 million in 1996–97. Same-day separations accounted for 46% of total separations in 2000–01 compared with 42% in 1996–97.

Chapter 9 — Health

9.26

1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01(b)

281

TOTAL HEALTH EXPENDITURE(a) AND RATE OF GROWTH Expenditure

Rate of growth

Current prices Chain volume measures(a) $m $m 31 267 38 004 33 123 38 469 35 098 39 893 36 990 41 714 39 216 43 758 42 082 45 905 45 195 48 224 48 360 50 642 51 680 53 026 55 668 55 668 60 779 58 490

Current prices Chain volume measures(a) % % n.a. n.a. 5.9 1.2 6.0 3.7 5.4 4.6 6.0 4.9 7.3 4.9 7.4 5.1 7.0 5.0 6.9 4.7 7.7 5.0 9.2 5.1

(a) Reference year 1999–2000. Chain volume measures are discussed in detail in the section ‘Chain volume or ‘real’ GDP’ of ‘Chapter 29, National accounts’. (b) Based on preliminary AIHW and ABS estimates. Source: Australian Institute of Health and Welfare, Health Expenditure Data Base.

9.27

PUBLIC AND PRIVATE HOSPITALS — 2000–01

Bed supply Facilities Beds/chairs(c) Activity Total separations Same day separations Total patient days Average length of stay Average length of stay excluding all same-day separations Average occupancy rate Non-admitted patient occasions of service Staff (full-time equivalent)(c) Revenue Recurrent expenditure

Units

Public(a)

Private(b)

Total

no. no.

749 52 591

516 (d)26 153

1 265 (d)78 744

’000 ’000 ’000 days days % ’000 ’000 $m $m

3 868 1 789 15 732 4.1 6.7 82.0 40 465 183 1 579 (f)15 545

2 353 1 350 6 919 2.9 5.6 (e)73.0 (e)1 814 46 4 742 4 467

6 221 3 139 22 651 3.6 6.3 (e)79.1 (e)42 279 229 6 321 20 012

(a) Acute and psychiatric hospitals. (b) Acute and psychiatric hospitals and free-standing day hospital facilities. (c) Annual average. (d) Including beds, chairs, recliners at free-standing day hospital facilities. (e) Excluding free-standing day hospital facilities. (f) Excluding depreciation. Source: Private Hospitals, Australia, 1999–2000 (4390.0); Australian Institute of Health and Welfare, ‘Australian Hospital Statistics, 2000–01’.

Total days of hospitalisation for public health patients during 2000–01 amounted to 15.7 million, a decrease of 5% since 1996–97. The average length of hospital stay per patient in 2000–01 was 4.1 days. For 1996–97 the corresponding figure was 4.5, reflecting the lower numbers of same-day patients compared with 2000–01. If same-day patients are excluded, the 2000–01 average length of stay was 6.7 days, compared with 7.1 days in 1996–97. An average of 182,995 staff (full-time equivalent) were employed at public hospitals in 2000–01, of whom 45% were nursing staff and 9% were salaried medical officers. Revenue amounted to $1,579m. Most of this revenue (50%) was from patients’ fees and charges. Recurrent expenditure

amounted to $15,545m, of which 63% was for salaries and wages. The difference between revenue and expenditure is made up by payments from state/territory consolidated revenue and specific payments from the Commonwealth for public hospitals, in roughly equal proportions.

Private hospitals There were 516 private hospitals in operation in 2000–01, comprising 275 acute hospitals, 24 psychiatric hospitals and 217 free-standing day hospital facilities. The number of acute and psychiatric hospitals has continued to decline since 1996–97 when 319 of these hospitals were in operation. In contrast, day hospital facilities have shown strong growth for several years, with only 153 in operation in 1996–97.

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The average number of beds available at private acute and psychiatric hospitals for admitted patients increased by 800 (3.4%) on the previous financial year. Between 1996–97 and 2000–01, the average number of beds available increased by 7% to 24,465. There were 1.3 private hospital beds available per 1,000 population in 2000–01. The average number of beds or chairs at free-standing day hospital facilities (used mainly for short post-operative recovery periods) increased over the same five-year period by 45% to 1,688; this increase reflects the continued growth in the numbers of free-standing day hospitals. Private hospital separations in 2000–01 totalled 2.4 million, of which 83% were from private acute and psychiatric hospitals and 17% from free-standing day hospital facilities. Same day separations accounted for 57% of all private hospital separations (compared with 46% of public hospital separations). This higher proportion of same day separations contributed to the lower average length of stay in private hospitals (2.9 days) compared to public hospitals (4.1 days) (table 9.27). The average number of full-time equivalent staff employed at all private hospitals was 46,307, of whom 63% were nursing staff. Total operating expenditure for private acute and psychiatric hospitals during 2000–01 amounted to $4,284m. Some 56% of this amount was spent on salaries and wages (including on-costs). Revenue received during the year was $4,518m, of which 92.7% was received as payments from or in respect of patients. Total recurrent expenditure for free-standing day hospital facilities during 2000–01 amounted to $183m, and revenue received during the year was $224m.

Hospital care under Medicare Under the Australian Health Care Agreements between the Commonwealth Government and the state/territory governments, all eligible people are entitled to free accommodation, medical, nursing and other care as public patients in public hospitals. Alternatively, patients may choose to be private patients in public hospitals, enabling them to elect their doctors. Medicare-eligible patients who elect to be private patients in public hospitals are charged separate fees for medical and hospital care. If patients have private insurance, this will usually cover all or part of the charges by a public hospital. Medicare pays benefits subsidising part of the cost of doctors’ charges, while private insurance pays an

additional amount towards these charges and other costs (e.g. surgically implanted prostheses) incurred as part of the hospital stay. Private patients in private hospitals are charged doctors’ fees and are billed by the hospital for accommodation, nursing care and other hospital services. If the patient holds private health insurance, it will contribute to the payment of these costs. Eligible Medicare patients in private hospitals generally attract Medicare benefits for doctors’ fees. There are no other Commonwealth funding and pharmaceutical benefits for prescriptions provided to private hospitals. The rate of Medicare benefit for doctors’ services provided to a private patient in hospital, or an approved day surgery, is 75% of the Medicare Benefits Schedule (MBS) fee. The MBS lists a wide range of medical service items with a scheduled fee for each item. Registered private health insurers offer insurance to Medicare-eligible patients for the difference between 75% and 100% of the Schedule fee, and in some cases an additional amount agreed with the hospital and doctor to ensure that the patient has no out-of-pocket medical cost.

Medicare benefits for private doctors’ and optometrists’ services Costs incurred by patients receiving private doctors’ services, and some optometrists’ services, are generally reimbursed, either fully or in part, through Medicare benefits. These benefits are administered by the Health Insurance Commission through its Medicare offices. MBS fees are used to calculate Medicare benefit entitlements, but doctors are able to determine their own fees, provided the service is not ‘bulk-billed’. If the service is bulk-billed by agreement between the doctor and patient, the doctor must accept the Medicare benefit, paid directly to the doctor, as payment in full. Of Medicare fees which are not bulk-billed, 22% were charged at a rate above the Medicare Schedule fee during 2001–02. The rate of benefit for non-hospital medical services, such as visits to doctors in their rooms, is 85% of the MBS fee. Once the difference between the Schedule fee and benefit is more than $55.60 (indexed annually) the benefit is the Schedule fee less $55.60. Under the Medicare safety-net arrangements, if in any year the sum of the ‘gap’ payments (being payments above the benefit level and up to the

Chapter 9 — Health

level of the Schedule fee) for non-hospital services for an individual or registered family exceeds a specified amount ($309.80 for 2002), all further benefits for the remainder of that year are paid at 100% of the Schedule fee. For private medical services provided in hospital, Medicare benefits are payable at a different rate, as described in the preceding section. Private insurers are prohibited from insuring all or part of non-hospital services which attract Medicare benefits. They may insure part of the fee for in-hospital medical services, as described in the preceding section.

Pharmaceutical Benefits Scheme (PBS) The Commonwealth Government provides Medicare-eligible persons with affordable access to a wide range of necessary and cost effective prescription medicines through the PBS. The following details relate to charges and safety net levels applying at 1 January 2002. Medicare-eligible patients who do not hold a Health Care Card, Pensioner Concession Card or Commonwealth Seniors Health Card, are required to pay the first $21.90 for each prescription item for medicines listed on the PBS. Concessional patients who hold a concession card must pay $3.50 per prescription item.

9.28

1990–91 1991–92 1992–93 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02

283

Individuals and families are protected from large overall expenses for PBS listed medicines by safety nets. For general patients (non-cardholders), once the eligible expenditure of a person and/or their immediate family exceeds $669.70 within a calendar year, the additional payment the patient has to make per item (co-payment) decreases from $21.90 to the concessional co-payment rate of $3.50. For concessional and pensioner patients (cardholders), once their total eligible expenditure exceeds $182.00 within a calendar year, any further prescriptions are free for the remainder of that year. All pensioners continue to have their pensions supplemented by a pharmaceutical allowance of $2.90 per week payable fortnightly, or $150.80 per year, to help defray their out-of-pocket pharmaceutical expenses. The allowance is not paid to other concessional beneficiaries. Patients may pay more than the relevant co-payment where there is more than one brand of the same drug or alternative product that produces similar results. The Government subsidises on the basis of the lowest priced drug, and any difference in price due to brand or product preferences must be met by the patient. The premium cannot be counted towards the patient’s safety net. In 2001–02 the PBS had over 150 million benefit prescriptions, representing a cost to the Government of $4,197m and a total cost, including co-payments, of $5,003m (table 9.28).

PBS(a), Prescription volume and cost (current dollars)

Prescription volume millions 96.3 94.1 106.2 115.0 118.7 124.9 124.1 125.1 128.9 138.1 148.0 155.0

Government cost $m 1 171.5 1 134.0 1 419.5 1 701.3 1 897.4 2 207.4 2 348.3 2 541.5 2 795.6 3 187.2 3 820.6 4 197.3

Total cost(b) $m 1 330.5 1 442.2 1 779.4 2 097.0 2 341.9 2 685.5 2 878.5 3 112.3 3 397.0 3 839.0 4 564.7 5 003.3

Prescriptions per capita no. 5.6 5.4 6.0 6.5 6.6 6.9 6.7 6.7 6.8 7.2 7.6 7.9

Average dispensed price in current prices $ 13.82 15.32 16.76 18.23 19.73 21.50 23.20 24.88 26.35 27.80 30.83 32.29

(a) Includes PBS categories of Concessional, General, Safety Net and Emergency (Doctor’s Bag) Drugs prescriptions. Excludes: (i) payments through miscellaneous services (Highly Specialised Drugs, IVF Centre Hormones, Human Growth Hormones, Safety Net Card issue costs, Aboriginal Health Services, etc.). In 2000–01 this expenditure was $347.9m; (ii) prescription medicines subsidised by the Commonwealth under the Repatriation Pharmaceutical Benefits Scheme (RPBS) administered by the Department of Veterans’ Affairs. In 2000–01, there were 14.2 million RPBS prescriptions at a cost to Government of $371.0m. (b) Total cost consists of Government cost and patient co-payments. Source: Commonwealth Department of Health and Ageing, Pharmaceutical Benefits Branch.

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Year Book Australia 2003

The number of PBS prescriptions per capita in 2001–02 was 7.9, compared with 7.6 in 2000–01. The number of benefit prescriptions increased by 4.7% over the previous year, and the cost to Government of these prescriptions grew by 9.9% (in current dollars).

Health insurance coverage The introduction of Medicare in 1984 resulted in Australians’ participation in private health insurance steadily declining. The introduction of the Federal Government 30% rebate on private health insurance in 1999, and the Government’s Lifetime Health Cover policy in 2000, saw participation in private hospital cover increase dramatically, with participation rates rising from 30.6% in June 1999 to 45.8% in September 2000. Rates appear now to have stabilised with a participation rate of 44.7% as at 31 March 2002 (table 9.29).

The rate of growth in prescription numbers and their cost reflects the ongoing trend towards newer and more costly medicines. Over the 10 years from 1991–92 to 2000–01, the average PBS dispensed price doubled, from $15.32 to $30.83 (a 101.2% increase, in current dollars).

Private health insurance

Community rating and reinsurance

Private health insurance is offered by 44 registered health insurers, giving a voluntary option to all Australians for private funding of their hospital and ancillary health treatment. It supplements Australia’s Medicare system, which provides a tax-financed public system that is available to all Australians. Depending on the type of cover purchased, private health insurance provides cover against all or part of hospital theatre and accommodation costs in either a public or private hospital, medical costs in hospital, and costs associated with a range of services not covered under Medicare including private dental services, optical, chiropractic, home nursing, ambulance and natural therapies.

Community rating is the underlying principle of the current private health insurance system. Community rating means that people cannot be discriminated against in obtaining health insurance on the basis of health risk. It requires that in setting premiums, or paying benefits, private insurers cannot discriminate between contributors on the basis of health status, age, race, gender, sexuality, use of hospital or medical services, or general claims history. The principle of community rating is supported by a reinsurance system within the private health insurance industry. Reinsurance supports the principle of community rating by sharing between health insurers the hospital costs and part of the medical costs of high risk members. Insurers with a greater proportion of low risk members (generally the young) pay contributions into the reinsurance pool, while those with a greater proportion of high risk groups (the chronically ill and the aged) receive transfers from the pool.

The private health sector funds around one-third of all health care in Australia. A sustainable balance between the public and private health care sectors can ensure a high level of access and choice now and into the future.

9.29 PERSONS WITH PRIVATE HEALTH INSURANCE, Proportion of total population Year ended 30 June

With private hospital cover With private ancillary cover

1990 % 44.5 39.9

1992 % 41.0 37.5

1994 % 37.2 34.5

1996 % 33.6 32.9

1998 % 30.6 31.7

Source: Private Health Insurance Administration Council, ‘Quarterly Statistics, March 2002’.

2000 % 43.0 39.2

Quarter ended June 2001 % 44.9 40.5

March 2002 % 44.7 41.2

Chapter 9 — Health

their contributors in order to offer the 30% Rebate as a premium reduction. All private health funds meet this requirement.

Rebate on private health insurance premiums In response to declining coverage of the population by private health insurance, from 1 January 1999 the Federal Government introduced a 30% Rebate (the Rebate) on premiums paid for private health insurance. All Australians eligible for Medicare and covered by a health insurance policy offered by a registered health fund are eligible for the Rebate. This initiative provides a 30% rebate on the cost of private health insurance premiums on hospital cover, ancillary cover and a combination of both. Since the Rebate is set at 30% of the actual cost of premiums, it keeps pace with any increases in individual fund or product premiums. The Rebate can be taken as a direct premium reduction, a refundable tax offset or a direct payment available from Medicare offices.

Lifetime Health Cover Lifetime Health Cover commenced in July 2000. For people aged over 30, those wishing to take out hospital cover for the first time pay a loading of 2% on top of the policy premiums for each year they are over the age of 30. People taking out hospital cover early in their lives pay lower premiums than those taking it out later in life. This rewards membership loyalty and early joining while deterring people who join health funds knowing they will need to claim for health services in the near future, but drop their membership soon afterwards. Under Lifetime Health Cover, the premiums paid by people entering private health insurance are based on the age at which they first join and, once set, remain at that rate relative to premiums for people entering at different ages. In other respects the principle of community rating is maintained.

Recent initiatives in private health insurance Recent initiatives include the following: n

Expansion of ‘no gap’ and ‘known gap’ cover. The ‘gap’ is the difference, paid by the health fund member, between fees charged by doctors for in-hospital medical services and the combined health insurance and Medicare benefits paid for those services. Private health insurers are required to continue to offer at least one no gap or known gap product to

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n

Simplified billing. This addresses the problems of multiple bills and unforeseen out-of-pocket costs for private patients. Simplified billing encourages hospitals, doctors and health funds to work together to simplify the billing process and make sure that patients are informed about any out-of-pocket costs they may have before they go into hospital. Patients benefit by receiving only one or two bills, rather than many from various doctors, and claims from health funds and Medicare are made on the patient’s behalf.

n

Other recent and planned initiatives, addressing affordability, product innovation, industry efficiency and consumer awareness, include: Ÿ improved consumer information on private

health insurance Ÿ private sector trials of coordinated care,

hospital in the home and early discharge programs Ÿ expanded private sector provision of

outreach services Ÿ deregulation of prostheses pricing Ÿ implementation of new capital adequacy and

solvency standards for the private health insurance industry.

Household expenditure on health and medical care Average household expenditure on health and medical care increased steadily between 1984 and 1998–99. As a proportion of total household expenditure on goods and services, health and medical care increased from 3.9% in 1984 to 4.7% in 1998–99 (table 9.30). The Household Expenditure Survey (HES) provides estimates of expenditure on medical care and health by households across Australia. Expenditure is net of any refunds and rebates received from Medicare, private health insurance companies and employers. The ABS has undertaken the HES at five-yearly intervals since 1984. Average expenditure in this survey is calculated across all households, not just those households that spent money on specific goods or services.

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9.30

EXPENDITURE PER HOUSEHOLD ON MEDICAL CARE, Proportion of total health expenditure

Accident and health Insurance Hospital, medical and dental insurance Sickness and personal accident insurance

1984 % 50.1 45.7 3.3

1988–89 % 44.4 40.0 3.5

1993–94 % 49.6 43.9 4.5

1998–99 % 40.6 35.0 4.6

1998–99 $/week 13.18 11.37 1.48

Health practitioners’ fees General practitioner doctors’ fees Specialist doctors’ fees Dental charges

26.5 3.8 3.9 10.6

31.9 3.6 6.2 13.3

24.7 2.3 5.5 10.4

30.7 2.4 7.8 13.5

9.96 0.77 2.53 4.37

Medicines, pharmaceutical products and therapeutical appliances Prescriptions

20.0 6.2

20.5 6.1

22.9 8.0

24.9 9.1

8.09 2.94

Other medical care and health expenses Hospital and nursing home charges

2.2 2.2

3.2 3.1

2.8 2.5

3.8 3.0

1.23 0.96

Health as proportion of total expenditure on goods and services

3.9

4.3

4.5

4.7

..

Expenditure category

Source: ABS data available on request, Household Expenditure Surveys (various).

Expenditure on accident and health insurance accounted for the largest percentage of total expenditure on health and medical care in each of the survey periods. However, this percentage declined markedly between 1993–94 and 1998–99 (from 50% to 41%) reflecting the decrease in hospital, medical and dental insurance from 44% of total health expenditure in 1993–94 to 35% in 1998–99. This decrease is largely due to the falling health insurance coverage, and occurred despite increases in private health insurance costs between the surveys. While the proportion of household health expenditure spent on health practitioners’ fees has remained relatively constant since 1984, expenditures on individual items have fluctuated. In particular, general practitioner doctors’ fees decreased from 3.8% of total health expenditure in 1984 to 2.4% in 1998–99, while specialist doctors’ fees increased from 3.9% to 7.8%. The proportion of total health expenditure spent on medicines, pharmaceutical products and therapeutic appliances increased from 20% in 1984 to 25% in 1998–99.

Health workforce In 2001–02, approximately 361,900 people were employed in health occupations in Australia, comprising 3.9% of the total number of

employed persons (table 9.31). The largest components of the health work force were registered nurses (158,700), generalist medical practitioners (37,600) and enrolled nurses (25,400). Females comprised 72.5% of the health work force. The high proportion of females in the health work force is due to their predominance in registered midwifery (100%), enrolled nursing (93.5%), registered nursing (89.4%) and physiotherapy (78.1%). Conversely, males represented 80.3% of the ambulance officers and paramedics, 74.5% specialist medical practitioners and 62.9% generalist medical practitioners. Over one-third (36.8%) of the health work force were employed on a part-time basis, as compared to 28.0% of the total number of employed persons in Australia. Females employed on a part-time basis constitute 89.4% of the health work force, a higher proportion than females employed on a part-time basis in the total Australian work force (71.5%). Among males in health occupations, 10.6% were part-time, compared with 28.5% for the total male work force. The higher proportion of part-time workers in the health sector is a reflection of the greater number of females in the health work force, who are more likely to work part-time.

Chapter 9 — Health

287

9.31 EMPLOYED PERSONS IN HEALTH OCCUPATIONS — Averages over 2001–02(a)

Health professionals(b) Generalist medical practitioners Specialist medical practitioners Registered nurses Registered midwives Physiotherapists Other health professionals(b) Health associate professionals Enrolled nurses Ambulance officers and paramedics Aboriginal and Torres Strait Islander health workers Other health associate professionals Total employed in health occupations(c) Total employed in Australia

’000 318.6 37.6 17.7 158.7 9.1 11.5 84.0

% males 27.5 62.9 74.5 10.6 — 21.9 38.0

% part-time workers 36.2 18.5 14.8 44.9 58.5 37.9 29.7

43.3 25.4 6.9 1.9 9.1

27.3 6.5 80.3 34.4 43.5

41.4 49.3 4.3 30.2 49.7

361.9 9 207.3

27.5 55.9

36.8 28.0

(a) Average calculated on quarterly estimates. (b) Includes Health service managers. (c) Includes Health professionals, Health service managers, Health associate professionals. Source: ABS data available on request, Labour Force Survey.

Health-related organisations

Australian government

International

Health and Community Services Ministerial Council (HCSMC)

World Health Organization (WHO)

The HCSMC was formed in 1993 by a decision of the Council of Australian Governments, bringing together the Australian Health Ministers’ Conference (AHMC) and the Community Services Ministers’ Conference (CSMC). This combined Council meets as necessary to deal with the wider framework of health and community service issues of interest to members of both AHMC and CSMC.

WHO is a specialised agency of the United Nations having as its objective the attainment by all peoples of the highest possible level of health. Australia is a member of the Western Pacific Region, one of WHO’s six geographic regions, and sends representatives to attend the annual World Health Assembly meeting in Geneva as well as Western Pacific Regional Committee Meetings. Australia’s assessed contribution to WHO’s core budget for 2002 was $A11.7m.

International Agency for Research on Cancer (IARC) The IARC was established in 1965 within the framework of the WHO. The headquarters of the agency is located in Lyon, France. The objectives and functions of the agency are to provide for international collaboration in planning, promoting and developing research in all phases of the causation, treatment and prevention of cancer. Australia’s contribution to the IARC for 2001 was $A1.7m.

The AHMC and its advisory body, the Australian Health Ministers’ Advisory Council (AHMAC), provide a mechanism through which the Commonwealth Government, state and territory and New Zealand governments discuss matters of mutual interest concerning health policy, services and programs. Neither the Conference nor the Council has statutory powers, and decisions are reached by consensus. In 2001–02, health ministers continued to focus on areas such as: Aboriginal and Torres Strait Islander peoples’ health; primary health care and aged care; national blood sector requirements; medical indemnity issues; matters associated with safety and quality in Australian health care; and health information management. The CSMC and its advisory body, the Community Services Ministers’ Advisory Council (CSMAC), operates in a similar manner concerning

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community services, and welfare policy and programs. In addition, Papua New Guinea is invited to participate as an observer.

n

a viable private health insurance industry to improve the choice of health services for Australians

In 2001–02, the CSMC discussed a wide range of issues such as gambling addiction, services for refugees, support for Indigenous families and communities, aged care and ageing, children’s services and young peoples transition to independent living.

n

knowledge, information and training for developing better strategies to improve the health of Australians.

Ministers with responsibilities for disability services matters, who are also Members of the HCSMC, meet as necessary to discuss future directions of disability services programs and services.

Commonwealth Department of Health and Ageing (DoHA) DoHA provides policy advice to the Government and manages Commonwealth government health and ageing programs. The department’s mission is to lead the development of Australia’s health and ageing system. The department’s vision is for a world class health and aged care system for all Australians. To achieve this vision, the department focuses on the following specific outcomes set by the Government for the Health and Ageing portfolio: n

promotion and protection of the health of all Australians and minimising the incidence of preventable mortality, illness, injury and disability

n

access through Medicare to cost-effective medical services, medicines and acute health care for all Australians

n

support for healthy ageing for older Australians, and quality and cost-effective care for frail older people and support for their carers

n

improved quality, integration and effectiveness of health care

n

improved health outcomes for Australians living in regional, rural and remote locations

n

reduced consequence of hearing loss for eligible clients and a reduced incidence of hearing loss in the broader community

n

improved health status for Aboriginal and Torres Strait Islander peoples

The department works with other stakeholders to provide national coordination of health and ageing services. These stakeholders include consumers, providers, industry groups, professional organisations, and state and territory governments. The department works with its other portfolio agencies to achieve the portfolio outcomes. These agencies include the HIC, the AIHW, the Australia New Zealand Food Authority, Australian Hearing Services, Health Services Australia, the Australian Radiation Protection and Nuclear Safety Authority, the Private Health Insurance Administration Council, the Private Health Insurance Ombudsman, the Professional Services Review, and the Aged Care Standards and Accreditation Agency. The Commonwealth Government appoints two ministers, and a parliamentary secretary, to the portfolio of Health and Ageing. The Minister for Health and Ageing has overall responsibility for the portfolio and has specific responsibility for Medicare benefits, hospitals, medical indemnity, the private health industry, medical workforce issues, the PBS, public health, blood and organ donation, medical research and biotechnology, health research, gene technology, Indigenous health issues, rural and regional health, Commonwealth–state relationships and the HIC. The Parliamentary Secretary to the Minister for Health and Ageing has direct carriage of matters relating to alcohol, tobacco and illicit drugs, the Therapeutic Goods Administration, the Australian Radiation Protection and Nuclear Safety Agency, the Australia New Zealand Food Authority, Health Services Australia and the Commonwealth Rehabilitation Service. The Minister for Ageing has direct carriage of matters relating to strategies for an ageing population, as well as residential aged care, community care, hearing services and human cloning. Health services for veterans and their dependants are the responsibility of the Minister for Veterans’ Affairs in the Defence portfolio.

Chapter 9 — Health

Australian Institute of Health and Welfare (AIHW) AIHW is a statutory authority within the Commonwealth Health and Ageing portfolio. The Institute’s mission is ‘To improve the health and well-being of Australians, we inform community discussion and decision making through national leadership in developing and providing health and welfare statistics and information’. The Institute’s main functions relate to the collation and dissemination of information related to health and welfare. The AIHW works closely with the ABS and other agencies which collect data, produce statistics and undertake research and analysis in the health, community services and housing assistance fields. The AIHW also provides statistical support to the states and territories in the health and welfare areas, primarily through AHMAC, CSMAC and the Housing Ministers’ Advisory Committee, and the national information management groups which report to those advisory groups. The five collaborating units (contracted with the organisations) extend the scope of the Institute’s expertise and assist the AIHW in performing its functions: n

National Perinatal Statistics Unit (University of New South Wales)

n

Dental Statistics and Research Unit (University of Adelaide)

n

National Injury Surveillance Unit (Flinders University)

n

General Practice Statistics and Classification Unit (University of Sydney)

n

Australian Centre for Asthma Monitoring (University of New South Wales).

The Institute’s Board encourages judicious collaboration with suitable organisations to enhance the Institute’s ability to meet its mission. In addition, the AIHW works collaboratively with a range of agencies such as the National Centre for Classification in Health, the Australian Patient Safety Foundation and the National Centre for Immunisation Research and Surveillance of Vaccine Preventable Diseases.

National Health and Medical Research Council (NHMRC) The NHMRC plays a major role in supporting the implementation of the Commonwealth’s investment in health through its support for research, and makes an important contribution to

289

improved public health and safety outcomes through the dissemination of authoritative health advice. The NHMRC is a statutory body within the Health and Ageing portfolio with principal responsibility for advising the Australian community and the Commonwealth Government, state and territory governments on standards of individual and public health, and supporting research and research training to improve those standards. The NHMRC’s work involves a large number of committees that draw on Australia’s leading academics and researchers as well as representatives from professional and scientific organisations, welfare, business and consumer groups and government. The 29 members of Council are appointed by the Minister for Health and Ageing every three years, with the present triennium ending in 2003. The members are appointed under categories defined by the legislation, including expertise in fields of health, medicine and medical research, nominees of Commonwealth, state and territory health authorities and the Aboriginal and Torres Strait Islander Commission, and the Chief Executive Officer. While the staff of the NHMRC report to an independent Chief Executive Officer, appointed by the Minister for Health and Ageing, they are also members of staff of the DoHA.

Communicable Diseases Network Australia (CDNA) The CDNA is the national coordinating body for the public health management of communicable diseases. CDNA’s terms of reference are: n

to promote best practice management of communicable diseases

n

to develop and coordinate national surveillance programs for communicable diseases

n

to provide policy advice on the control of communicable diseases

n

to support and strengthen training and capacity building in the communicable disease field

n

to provide a resource for the investigation and control of outbreaks of communicable disease

n

to liaise and support other communicable disease control agencies and programs in the region.

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Year Book Australia 2003

CDNA holds regular fortnightly teleconferences to exchange information on recent developments in the field, coordinate responses and develop policy.

annual data on the number of heart surgery procedures and associated deaths from cardiac surgery units around Australia. The National Coronary Angioplasty Register contains information on coronary angioplasty procedures, indications, associated complications, lesion location, success rates and adjunctive techniques such as stenting, from cardiac catheterisation units around Australia.

Disease registries Disease registries exist for a range of diseases and medical procedures in Australia. The general aim is to compile a database of all cases (within a given time and place) of a particular disease. These data can be used for research, providing clinical services, developing and evaluating health prevention/intervention policies and for administration purposes. Some of the major national disease registries include: n

n

Australian Childhood Immunisation Register (ACIR) — the HIC collects immunisation data to provide comprehensive information on the immunisation status of all children under seven years of age living in Australia. ACIR enables parents and health care providers to check on a child’s immunisation status. The Register is also used to monitor immunisation coverage levels, service delivery and disease outbreaks, . Australian Mesothelioma Register — compiled from notifications by health practitioners and authorities, .

n

Australian Spinal Cord Injury Register — enables patterns and trends of spinal cord injury (SCI) to be monitored, and provides an opportunity to conduct survival studies on people with SCI.

n

Cancer Registries — cancer is a notifiable disease in all states and territories of Australia. To maintain a national dataset, the National Cancer Statistics Clearing House at the AIHW receives incidence data from individual state and territory cancer registries on all cancers diagnosed among Australian residents, .

n

n

National Diabetes Register — based at the AIHW, provides statistics on diabetics who use insulin. The information is collected from records of people using the National Diabetic Services Scheme and the state-based registers of the Australian Paediatric Endocrine Group. National Cardiac Surgery Register and National Coronary Angioplasty Register — a joint project between the National Heart Foundation of Australia and the AIHW. The National Cardiac Surgery Register contains

n

National Notifiable Diseases Surveillance System — within this system, notifications are made to the state or territory health authority under the provisions of the public health legislation in their jurisdiction for more than 40 communicable diseases or disease groups. The data facilitate the detection, monitoring and control of disease outbreaks, .

n

National Register of Pregnancies After Assisted Conception — contains data from all in-vitro fertilisation (IVF) centres performing IVF, gamete intrafallopian transfer and related procedures in Australia and New Zealand.

Australian non-government Asthma Australia Asthma Australia is an association of all the Asthma Foundations throughout Australia. It aims to eliminate asthma as a major cause of ill health and disruption within the community. The Asthma Foundations provide asthma education, information, research, community advocacy and support to people with asthma and their carers.

Australian Kidney Foundation The Australian Kidney Foundation is a national non-profit organisation which raises funds for research aimed at the prevention of kidney and urinary tract diseases. Among other activities the Foundation conducts a broad-based education program for patients, potential organ donors, medical practitioners, school students and the general community.

Australian Red Cross The Australian Red Cross operates a variety of community services including the collection, processing and distribution of blood and blood products to the Australian community. The Australian Red Cross Blood Service is based on donations from voluntary non-remunerated donors and is funded by the Commonwealth Government and state governments, as well as the Australian Red Cross.

Chapter 9 — Health

291

Cancer Council Australia

Mental Health Council of Australia

The Cancer Council Australia is Australia’s peak non-government national cancer control organisation. The Cancer Council Australia brings together Australia’s eight state and territory cancer organisations in a joint commitment to prevent and control cancer, provide support for people affected by cancer and fund cancer research. The Council was formerly known as the Australian Cancer Society.

The Mental Health Council of Australia is the independent, non-government sector peak body established under the National Mental Health Strategy to represent and promote the interests of the mental health sector and advise on mental health in Australia.

Consumers Health Forum of Australia The Consumers Health Forum (CHF) is a national peak organisation funded by member contributions and the DoHA. The strategic direction of the forum is set by voting members which are national, state and local consumer groups. CHF nominates and supports consumer representatives on government, industry and professional committees.

Diabetes Australia Diabetes Australia is part of a federation of 12 organisations — medical, education, and scientific, research and community based — coordinated and facilitated through the national office in Canberra. It offers personalised and practical assistance to benefit people with diabetes and their carers, and provides a forum for the development of national policies.

National Heart Foundation The National Heart Foundation is an independent, Australia-wide, non-profit health organisation funded almost entirely by donations from Australians. The Foundation’s purpose is to improve the heart health of Australians, and to reduce disability and death from heart and blood vessel disease, by promoting and conducting research and promoting behaviour beneficial to heart and blood vessel health.

Royal Flying Doctor Service The Royal Flying Doctor Service of Australia is a not-for-profit charitable service providing aeromedical emergency and primary health care services, together with communication and education assistance to people who live, work and travel in regional and remote Australia.

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Year Book Australia 2003

Bibliography ABS publications Apparent Consumption of Foodstuffs and Nutrients, Australia (4306.0) Australian Social Trends (4102.0) Causes of Death, Australia (3303.0) Causes of Infant and Child Deaths, Australia (4398.0) Children’s Immunisation, Australia (4352.0) Deaths, Australia (3302.0) Deaths Due to Diseases and Cancers of the Respiratory System, Australia (3314.0) Disability, Ageing and Carers, Australia: Summary of Findings (4430.0) Disability and Handicap, Australia (4120.0) The Health and Welfare of Australia’s Aboriginal and Torres Strait Islander Peoples, 1999 (4704.0) Hospitals, Australia (4391.0) Household Expenditure Survey, Australia: Detailed Expenditure Items, 1993–94 (6535.0) Household Expenditure Survey, Australia: Detailed Expenditure Items, 1998–99 (6535.0) How Australians Measure Up (4359.0) Mental Health and Wellbeing: Profile of Adults, Australia (4326.0) National Health Survey: Aboriginal and Torres Strait Islander Results, Australia, 1995 (4806.0) National Health Survey: Aboriginal and Torres Strait Islander Results, Australia, 2001 (4715.0) National Health Survey: Cardiovascular and Related Conditions, Australia, 1995 (4372.0) National Health Survey: Diabetes, Australia, 1995 (4371.0) National Health Survey: Injuries, Australia, 1995 (4384.0) National Health Survey: Private Health Insurance, 1995 (4334.0) National Health Survey: SF36 Population Norms, Australia, 1995 (4399.0) National Health Survey: Summary of Results, 1995 (4364.0) National Health Survey: Summary of Results, 2001 (4364.0) National Nutrition Survey: Foods Eaten, Australia, 1995 (4804.0) National Nutrition Survey: Selected Highlights, Australia, 1995 (4802.0) Private Hospitals, Australia (4390.0) Suicides, Australia (3309.0) Women’s Health (4365.0)

Other publications AIHW (Australian Institute of Health and Welfare): Australian Institute of Health and Welfare and Australasian Association of Cancer Registries 1999, Cancer in Australia 1996: incidence and mortality data for 1996 and selected data for 1997 and 1998, AIHW Cat. No. CAN 7, AIHW (Cancer series), AIHW, Canberra Australian Institute of Health and Welfare and Commonwealth Department of Health and Family Services 1997, First Report on National Health Priority Areas 1996, AIHW Cat. No. PHE 1, AIHW and DHFS, Canberra

Chapter 9 — Health

293

1998, Breast and cervical cancer screening in Australia 1996–1997, AIHW Cat. No. CAN 3, Cancer Series number 8, AIHW, Canberra 1999, Bettering the Evaluation and Care of Health: A study of General Practice Activity, AIHW, Canberra 2000a, 1998 National Drug Strategy Household Survey: Detailed findings (Drug Statistics Series), Cat. No. PHE 27, AIHW, Canberra 2000b, Australian long term trends in mortality, AIHW, Canberra 2000c, National Diabetes Register statistical profile, AIHW, Canberra 2001a, Cancer in Australia 1998, AIHW, Canberra 2001b, Cancer Survival in Australia: Part 1, AIHW, Canberra 2001c, Australia’s Welfare 2001, AIHW, Canberra 2002a, Australia’s Health 2002: the eight biennial health report of the Australian Institute of Health and Welfare, AIHW, Canberra 2002b, Australian hospital statistics 2000–01, AIHW, Canberra Commonwealth Department of Health and Ageing: Australian Childhood Immunisation Register, National Centre for Disease Control Communicable Diseases and Health Protection Branch, Commonwealth Department of Health and Ageing and Communicable Diseases Network Australia, Communicable Diseases Intelligence, Quarterly Report, Medicare Statistics 1984/85 to June Quarter 2002, Commonwealth Department of Health and Ageing National Injury Prevention Plan — Priorities for 2001–2003 — Implementation Plan 2001, Commonwealth Department of Health and Aged Care 1998a, National Health Priority Areas Report on Cancer Control 1997, Commonwealth Department of Health and Family Services and Australian Institute of Health and Welfare, AIHW Cat. No. PHE 4, DHFS and AIHW, Canberra 1998b, National Health Priority Areas Report: Injury Prevention and Control 1997, Commonwealth Department of Health and Family Services and Australian Institute of Health and Welfare, AIHW Cat. No. PHE 3, DHFS and AIHW, Canberra 1999a, National Health Priority Areas Report: Cardiovascular health, A report on heart, stroke and vascular disease, 1998, Commonwealth Department of Health and Aged Care and Australian Institute of Health and Welfare, Cat. No. PHE 9, HEALTH and AIHW, 1999, Canberra 1999b, National Health Priority Areas Report: Diabetes Mellitus, 1998, Commonwealth Department of Health and Aged Care and Australian Institute of Health and Welfare, AIHW Cat. No. PHE 10, HEALTH and AIHW, Canberra 1999c, National Health Priority Areas Report: Mental Health 1998, Commonwealth Department of Health and Aged Care and Australian Institute of Health and Welfare, AIHW Cat. No. PHE 13, HEALTH and AIHW, Canberra 2001a, National Mental Health Strategy, Commonwealth Department of Health and Aged Care, viewed 1 August 2001 2001b, National Suicide Prevention Strategy, Commonwealth Department of Health and Aged Care, viewed 1 August 2001 Health Insurance Commission, Australian Childhood Immunisation Register (ACIR), ISAAC Steering Committee 1998, ‘Worldwide variation in the prevalence of symptoms of asthma, allergic rhinoconjunctivitis and atopic eczema’, Lancet, 351:1225–32 Mathers Colin D, Vos Theo E, Stevenson Chris E & Begg Stephen J, ‘The Australian Burden of Disease Study: measuring the loss of health from diseases, injuries and risk factors’, The Medical Journal of Australia, Vol. 172, 19 June 2000

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McCarthy DJ, Zimmet P, Dalton A, Segal L & Welborn TA 1996, The Rise and Rise of Diabetes In Australia: A review of statistics, trends and costs, 2nd printing, Diabetes Australia, Canberra National Centre in HIV Epidemiology and Clinical Research, The University of New South Wales, Australian HIV Surveillance Report, Vol. 18, No. 2, April 2002 National Centre in HIV Epidemiology and Clinical Research, ‘HIV/AIDS, viral hepatitis and sexually transmissible infections in Australia Annual Surveillance Report 2002,’ National Centre in HIV Epidemiology and Clinical Research, The University of New South Wales, Sydney, NSW, 2002 Private Health Insurance Administration Council (PHIAC), Quarterly Statistics, March 2002 World Health Organization: 1975, International Classification of Diseases, 9th Revision, Volume 1, Geneva 1992, International Statistical Classification of Diseases and Related Health Problems, 10th Revision Volume 1, Geneva

Web sites Asthma Australia, Australian Institute of Health and Welfare, Australian Kidney Foundation, Cancer Council Australia, Commonwealth Department of Health and Ageing, Consumers Health Forum of Australia, Diabetes Australia, Health Insurance Commission, Mental Health Council of Australia, National Heart Foundation, Private Health Insurance Administration Council, Red Cross, Royal Flying Doctor Service, World Health Organization,

10

Education and training Introduction

297

Commonwealth and state government responsibilities in education

297

Expenditure on education

297

Funding of schools

299

Funding of Vocational Education and Training

300

Funding of higher education

300

Government assistance to students

300

Austudy and Youth Allowance

301

ABSTUDY

301

Assistance for isolated children

301

Student Financial Supplement Scheme

301

Financial assistance — from the student’s perspective

301

Preschool students

302

Introduction

302

Attendance

303

Indigenous preschool students

303

Primary and secondary education

304

School attendance

304

School organisation and operation

304

Schools, students, and teaching staff

305

Apparent retention rates

307

Vocational Education and Training

308

Institutions

308

Staff

308

Students and courses

308

Apprenticeships and traineeships

309

Article — Work-related training

310

Higher education

314

Institutions

314

Staff

314

Students and courses

314

Adult and community education

316

Indigenous education and training

317

Indigenous school students

317

Indigenous Vocational Education and Training students

319

Indigenous higher education students

320

Article — Full-fee paying overseas students

322

Participation in education and training

327

Educational attendance and the labour force

328

Educational attainment

329

Bibliography

332

Chapter 10 — Education and training

Introduction At the broadest level, education and training can be thought of as the lifetime process of obtaining knowledge, attitudes, skills, and socially valued qualities of character and behaviour. In this sense, education is initiated at birth, developed in schooling and other formal pathways of learning, and continued throughout adult life. Education can occur within a variety of environments, some more formal than others. Formal learning has traditionally taken place within three major sectors: schools, vocational education and training (VET), and higher education. Typically this is characterised by delivery that is systematic, planned and organised ahead of time, and which usually involves some evaluation of achievement. However, in recent years the boundaries between these sectors have become less distinct. 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 in the workplace, in order to acquire, develop or upgrade work-related skills. At the other end of the spectrum is non-formal education, which is intentional, but is delivered in an informal and unstructured way, on an ad hoc basis. It does not necessarily involve any student-teacher relationship nor evaluation of achievement. Non-formal education includes on-the-job training and self-directed learning. Core measures of educational activity in Australia currently focus on educational resources (the inputs), participation (the process of education), attainment (the outputs) and other outcomes. The structure of this chapter reflects these core measures. It begins with the funding inputs to the different categories of education, then discusses the inputs in the form of government assistance to students, before describing the processes for each category of education, and finally educational attainment.

Commonwealth and state government responsibilities in education State and territory governments have the responsibility for most education and training, including the administration and substantial

297

funding of primary and secondary education, as well as the administration and major funding of VET. The Commonwealth Government has special responsibilities in education and training for Aboriginal and Torres Strait Islander peoples, migrants, international relations in education, and assistance for students. It is also principally responsible for funding of higher education institutions, and provides supplementary funding for schools and for VET. The Commonwealth Government also provides special grants to the states and territories for areas of particular need. Apart from its significant financial role, the Commonwealth is also involved in promoting national consistency and coherence in the provision of education and training across Australia.

Expenditure on education The estimates of government expenditure on education provided in this section accord with national accounting concepts. The accruals-based estimates in tables 10.1, 10.2, 10.3 and 10.4 reflect transactions in the period in which income is earned or expenses incurred, regardless of whether a cash payment is made. A conceptual framework, derived from the international standard A System of National Accounts 1993, is used for these estimates. For the purposes of table 10.1, total expenditure on education includes expenditure on all sectors of education, such as preschool, primary, secondary, university, and technical and further education (TAFE), but excludes expenditure on courses such as vocational training programs not provided by TAFE institutions. Private expenditure data include items such as school fees, but exclude items such as school books and uniforms. Total expenditure on education in the 2000–01 financial year was $39,981m, with government expenditure of $29,632m and private expenditure of $10,349m. Education expenditure as a percentage of gross domestic product (GDP) was 5.9% in 2000–01, similar to the two preceding financial years.

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10.1

TOTAL EXPENDITURE ON EDUCATION(a)

Expenditure on education

Units

1998–99

1999–2000

2000–01

$m $m

31 049 90

32 323 301

34 688 486

$m $m

4 620 26 519

5 149 27 475

5 542 29 632

Private expenditure Household final consumption expenditure Gross fixed capital formation Total

$m $m $m

973 8 271 9 244

1 109 8 756 9 865

1 001 9 348 10 349

Total

$m

35 763

37 340

39 981

Gross domestic product (GDP)

$m

591 592

629 212

672 046

%

6.0

5.9

5.9

Government expenditure(b) Operating expenses Net acquisition of non-financial assets less Sales of goods and services Total

Total expenditure on education as proportion of GDP

(a) Figures expressed in current prices. Changes between years will include price effects. (b) Total government expenditure on education derived by adding operating expenses and net acquisition of non-financial assets, then subtracting the sales of goods and services. Source: Government Finance Statistics, Education, Australia — Electronic Delivery, 2000–01 (5518.0.55.001).

In 2000–01, government expenditure on education was 4.4% of GDP, with private education expenditure at 1.5% of GDP. In 2001, some 9,596 schools provided primary and secondary education for 3.3 million school students, 69% of whom attended government schools. VET institutions were well patronised, with 1.8 million clients, and there were 726,400 higher education students. An estimated 621,500 persons were employed in the education industry, representing 6.9% of the civilian workforce.

education 26%, and TAFE 10%. Total operating expenses include depreciation of fixed assets, but do not include cash payments for expenditure on non-financial assets, a component of the broader financial statements.

The total education operating expenses for all Australian governments increased by 7.3% from $32,323m in 1999–2000 to $34,688m in 2000–01. In the latter, total expenditure on acquisition of non-financial assets for all Australian governments, a cash measure, was $2,275m, up from $2,247m in 1999–2000. Cash-based private expenditure on education (which comprises household final consumption expenditure plus gross fixed capital formation) increased by 4.9%, from $9,865m in 1999–2000 to $10,349m in 2000–01.

Total government operating expenses on education for all Australian governments in 2000–01 were $34.7b. Total government operating expenses are greater than total government expenditure because the total expenditure figure is net of sales of goods and services, but inclusive of net acquisition of non-financial assets.

Table 10.2 presents the total education expenses of governments in 2000–01 by purpose. Primary and secondary education comprised 56% of total operating expenses on education, university

Table 10.3 shows the components of operating expenses on education by economic transaction type in 2000–01. Employee expenses accounted for 56% of total operating expenses, with the balance largely in non-employee expenses (22%) and current transfer expenses (17%).

Table 10.4 summarises Commonwealth grants for education to the states and territories in 2000–01. The major beneficiary of Commonwealth grants (both current and capital) was primary and secondary education, receiving 52% of the total granted (both current and capital) for education. Universities received 37% and 9% was directed to TAFE.

Chapter 10 — Education and training

299

10.2 GOVERNMENT OPERATING EXPENSES ON EDUCATION, By purpose — 2000–01

Primary and secondary education

Commonwealth $m 5 298

State and local $m 19 365

Multijurisdictional(a) $m —

Total sectors $m 24 663

Intra-sector transfers $m 5 174

Australia(b) $m 19 490

3 849 1 102 — 4 951

118 3 416 93 3 627

9 191 — — 9 191

13 158 4 518 93 17 769

4 070 930 — 5 000

9 089 3 588 93 12 769

108 — 524

1 087 763 55

— — —

1 195 763 579

108 — —

1 086 763 579

10 881

24 898

9 191

44 970

10 282

34 688

Tertiary education University education Technical and further education Tertiary education n.e.c. Total Preschool, special, and other education Transportation of students Other education expenses Total education operating expenses

(a) The multi-jurisdictional sector currently includes only universities. (b) Total for Australia equals total sectors minus intra-sector transfers. Source: Government Finance Statistics, Education, Australia — Electronic Delivery, 2000–01 (5518.0.55.001).

10.3

GOVERNMENT OPERATING EXPENSES ON EDUCATION, By economic transaction — 2000–01

Employee expenses Non-employee expenses Depreciation of fixed assets Current transfer expenses Capital transfer expenses Total

Commonwealth $m 63 222 10 10 210 377 10 881

State and local $m 14 319 4 320 983 5 140 136 24 898

Multijurisdictional(a) $m 5 203 2 982 649 357 — 9 191

Total sectors $m 19 585 7 524 1 642 15 707 513 44 970

Intra-sector transfers $m — 18 — 9 899 365 10 282

Australia(b) $m 19 585 7 505 1 642 5 808 148 34 688

(a) The multi-jurisdictional sector currently includes only universities. (b) Total for Australia equals total sectors minus intra-sector transfers. Source: Government Finance Statistics, Education, Australia — Electronic Delivery, 2000–01 (5518.0.55.001).

Funding of schools

10.4 COMMONWEALTH GRANTS FOR EDUCATION — 2000–01 $m

Current grants to states, territories and universities Primary and secondary education Technical and further education Universities Other education not definable by level Total Capital grants to states, territories and universities Primary and secondary education Technical and further education Universities Other education not definable by level Total Total grants to states, territories and universities Primary and secondary education Technical and further education Universities Other education not definable by level Total Source: ABS data available on request, Public Finance Collection.

4 852 916 3 657 107 9 532

315 — 42 1 358

5 167 916 3 698 108 9 889

On an accruals basis, the primary and secondary education expenses of Australian governments totalled $19,490m in 2000–01. Expenses associated with preschool, special, and other education were $1,086m. State, territory and local governments also contributed funds to other aspects of schooling such as student transport, totalling $763m in 2000–01. As table 10.2 shows, preschool, primary, secondary, special school and other education expenses were largely met by state, territory and local governments. While primary and secondary education is free in government schools in all Australian states and territories, fees may be charged for the hire of text books and other school equipment (particularly in secondary schools). Voluntary levies may also be sought from parents. In addition to funding schools directly, most state and territory governments provide financial assistance to parents (under specified conditions) for educational expenses of school children.

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Year Book Australia 2003

Assistance includes scholarships, bursaries, and transport and boarding allowances, many of which are intended to assist low-income families. The Commonwealth Government also provides a number of assistance schemes to facilitate access to education.

Funding of Vocational Education and Training (VET) VET providers in receipt of public funds primarily receive revenues from the state and territory governments (57% in 2001), with additional funds being provided by the Commonwealth Government (22%). The balance of revenue (21% in 2001) comes from fee-for-service activities, ancillary trading, and student fees or charges. Most providers charge students fees for the administration of VET courses, for tuition, for materials or for student amenities. These fees vary according to the type of course and its duration. Nationally, in 2001 around 4% of recurrent revenue for VET institutions was provided through student fees and charges. An additional 11% of total revenue was generated through services provided to full-fee paying overseas clients, employers and other individuals or organisations under contracts or commercial arrangements (‘fee-for-service’ arrangements).

Scheme (HECS), and from other fee-paying students. Higher education fees and charges have increased in importance in recent years. In 2000, 18% of operating revenue was raised from HECS, while other fees and charges accounted for a further 18% of income. These fees and charges included $947m (representing 56% of the fee income) from fee-paying overseas students — a rise of 20% since 1999. Some institutions rely more heavily than others on fees paid by overseas students. For example, the Central Queensland University, Royal Melbourne Institute of Technology University and the Curtin University of Technology in Western Australia received 25%, 23% and 23% respectively of their revenue from fee-paying overseas students. This is well above the overall national average of 10%.

Government assistance to students Commonwealth government assistance to students is summarised in table 10.5. Student numbers should not be totalled, as some students can receive the Student Financial Supplement Scheme (SFSS) in conjunction with one of the other payments (see the section Student Financial Supplement Scheme).

Funding of higher education Most higher education institutions are funded by the Commonwealth Government under the Higher Education Funding Act 1988 (Cwlth). In 2000 the operating revenue (before abnormals) of these institutions amounted to $9,328m, 45% of which came from Commonwealth government grants. Commonwealth government funding is also provided to higher education institutions through various research programs, mostly on the advice of the Australian Research Council. In addition to government funding, institutions receive payments from students who are required to contribute to the cost of their education through the Higher Education Contribution

10.5

STUDENT ASSISTANCE SCHEMES — 2000–01

Scheme

Youth Allowance Austudy ABSTUDY Assistance to Isolated Children (AIC) Youth Allowance SFSS Austudy SFSS ABSTUDY SFSS

Students no. 308 663 41 992 50 451

Assistance $m 2 259 242 158

11 993 23 458 11 084 6 840

36 81 42 35

Source: Department of Education, Science and Training; Department of Family and Community Services.

Chapter 10 — Education and training

Austudy and Youth Allowance In 1998, Youth Allowance replaced AUSTUDY (now called Austudy) and a number of other payments for young people under 25 years. Youth Allowance is for full-time students under 25 years and unemployed people under 21 years. Austudy now covers full-time students 25 years and over. Youth Allowance and Austudy are administered by the Department of Family and Community Services, and delivered by Centrelink. At 30 June 2001, some 308,663 and 41,992 students benefited from Youth Allowance and Austudy respectively.

ABSTUDY ABSTUDY represents a major component of the Commonwealth Government’s commitment, under the National Aboriginal and Torres Strait Islander Education Policy, to encourage Australian Aboriginal and Torres Strait Islander peoples to take full advantage of educational opportunities, to promote equality of education, to be involved in decision making, and to improve their educational outcomes. The scheme provides financial assistance for eligible Australian Aboriginal and Torres Strait Islander peoples who undertake approved secondary or tertiary education courses by full-time study, by correspondence, or who undertake part-time tertiary study. There is also some assistance available to primary students aged 14 years or over who live at home. In 2000–01, ABSTUDY assisted over 50,000 students.

Assistance for isolated children (AIC) The AIC scheme helps the families of primary and secondary students, and tertiary students under 16 years old, who do not have reasonable daily access to an appropriate government school primarily because of their geographic isolation. An ‘appropriate school’ is a government school which offers the student’s level of study or, if the student has special health-related or educational needs, one which provides access to the facilities, programs and/or environment required for those needs. Apart from the additional Boarding Allowance, all AIC allowances are free from income and assets tests, but applicants must meet the eligibility criteria. In 2000–01, the AIC scheme assisted 11,993 students, and expenditure was $36m.

301

Student Financial Supplement Scheme (SFSS) The SFSS is a voluntary loan scheme introduced in 1993. It is available to students receiving Youth Allowance, Austudy, ABSTUDY and the Pensioner Education Supplement. Dependent full-time students who are not eligible for Youth Allowance may still access a SFSS loan if parental income is below a certain threshold, which was $61,200 in 2000–01. Loan repayments do not commence until five years after the loan is taken out and only when income reaches a certain level ($32,918 in 2000–01). During 2000–01, 41,382 students took up the SFSS option, receiving $158m in loans. Students receiving Youth Allowance took out $81m in SFSS loans, Austudy recipients took out $42m in SFSS loans, and ABSTUDY recipients $35m in loans.

Financial assistance — from the student’s perspective As well as federal and state government grants, students may receive financial support for their studies from other sources. Some will receive financial support from multiple sources including employers, family members, unions, professional associations, foreign governments, etc. In 2001, 56% of the 1.9 million non-school students studying for educational qualifications received some form of financial support for their study — 59% of male and 54% of female students. Some 64% of both males and females in bachelor degree courses received financial support, but only 51% of males and 52% of females studying for a graduate diploma or graduate certificate received support (graph 10.6). For males, the highest level of financial support was for study towards a certificate III or IV, with 66% of this group (which includes the majority of trade apprenticeships) receiving support. Only 54% of females studying at this level received financial support. Similarly, the disparity in financial support between males and females is apparent among those undertaking postgraduate degrees; in 2001 some 61% of males received support compared to 43% of females.

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Year Book Australia 2003

10.6 STUDENTS RECEIVING FINANCIAL SUPPORT FOR STUDY — 2001 Postgraduate degree Graduate diploma/certificate Bachelor degree Advanced diploma or diploma Certificate III/IV Certificate I/II Males Females

Certificate — n.f.d. 40

50

60

70

% Source: ABS data available on request, Survey of Education, Training and Information Technology, 2001.

Just under 53% of employed non-school students (1.4 million) received financial support for their study including 26% who received some support directly from their employer (table 10.7). Both unemployed students (132,100) and students not in the labour force (363,100) received the same level of financial support (65%). However, the source of this support varied, with government being the main source of financial support for unemployed students, whereas for those not in the labour force approximately equal proportions received support from government and elsewhere.

Preschool students Introduction Preschool generally refers to education provided for children in the year prior to the first year of full-time primary school, is largely sessional, and operates only during school terms for children three years of age to school starting age.

10.7

Preschools may be operated by government, community organisations or the private sector. Preschool programs may also be provided in long day child care centres. Data about preschools are from the ABS Child Care Survey (results published in Child Care, Australia (4402.0)) which is conducted every three years. However, there is some undercounting of the number of children attending preschool in this survey. Reasons for this include differences in terminology and starting ages of preschool between states and territories, and the fact that children who are attending a preschool program within a child care centre may not be separately identified in the survey. Data on Indigenous preschool students are from the National Indigenous Preschool Census (NIPC) which is conducted annually by Data Analysis Australia on behalf of the Department of Education, Science and Training. The purpose of the NIPC is to allocate Commonwealth funding to preschools for Indigenous students. The two data sources are not directly comparable due to differences in scope and collection methodology.

TYPE OF FINANCIAL SUPPORT RECEIVED BY STUDENTS(a) — 2001 Source of financial support received for study

Labour force status

Employed full-time Employed part-time Total Unemployed Not in the labour force Total

Employer

Government

Other

Received no financial support

All students(b)

’000 311.4 44.7 356.1

’000 42.8 165.6 208.4

’000 58.1 202.0 260.1

’000 384.9 270.4 655.3

’000 747.5 634.4 1 381.9

*2.2 *3.6

63.2 131.8

28.9 127.7

45.2 126.9

132.1 363.1

361.8

403.4

416.7

827.4

1 877.1

(a) Non-school students studying for educational qualifications. (b) As students may receive financial support from more than one source, components may not add to the total. Source: Education and Training Experience, Australia, 2001 (6278.0).

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303

10.8 PRESCHOOL PARTICIPATION(a)(b) % 70

Three year olds Four year olds Five year olds(c)

60 50 40 30 20 10 0

1990

1993

1996

1999

(a) The survey was conducted in November 1990, June 1993, March 1996 and June 1999. (b) Shown as a proportion of the relevant age group. (c) Does not take into account five year olds attending school. Source: Child Care, Australia (4402.0).

Attendance In 1999, some 231,600 children attended preschool, with four year olds representing 56% of all preschool students. This compares with 267,200 attendees in 1990, when four year olds represented 44% of preschool students. There is no national policy on the provision of preschool education, the responsibility for this lying with individual states and territories. The age at which children may attend preschool varies, reflecting the different school commencement ages in each jurisdiction. The proportion of three year olds attending preschool increased between 1990 and 1999, peaking at 25% in 1996 (graph 10.8). There was some fluctuation in the proportion of four year olds attending preschool between 1990 and 1999, with a high of 57% in 1993 and a low of 46% in 1996. In 1990, 42% of five year olds attended preschool (however, this does not take into account five year olds attending school). This proportion dropped between 1990 and 1996, then increased to 17% in 1999. The 1990 and 1999 Child Care Surveys were conducted in November, which may account for the higher proportion of five year olds in those years, while the 1996 survey was conducted in March, which may account for the higher proportion of three year olds in 1996.

The changing focus of long day care to include an educational component may account for some of the changes in the participation of four year olds at preschool. While the proportion of four year olds attending preschool has fluctuated somewhat between 1990 and 1999, the proportion attending long day care centres has increased steadily (from 10% in 1990 to 22% in 1999) (table 10.9).

10.9 Type of care

PARTICIPATION OF FOUR YEAR OLDS Units %

Preschool Long day care % Total in preschool /long day care ’000

November 1990 47.4 10.3

June March November 1993 1996 1999 56.6 45.9 49.2 11.8

14.0

21.7

143.6 174.8 154.4

186.1

Source: Child Care, Australia (4402.0).

Indigenous preschool students In 2000, Indigenous students represented 5% of total preschool enrolments, as counted in the NIPC. The number of Indigenous children attending preschool increased by 18% from 10,000 in 1996 to 11,800 in 2000. As with all children, the highest preschool participation rate for Indigenous children was for four year olds (48% in 2000) (table 10.10).

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Year Book Australia 2003

10.10

Year

1996 2000

INDIGENOUS PRESCHOOL PARTICIPATION(a)

3 years and under % 15.9 15.8

4 years old % 49.2 47.6

5 years and over % 47.0 31.9

Total children ’000 10.0 11.8

(a) Shown as a proportion of the relevant age group. Source: Department of Education, Science and Training, ‘Data Analysis Australia 1997 & 2001, National Indigenous Preschool Census’.

Primary and secondary education School attendance School attendance is compulsory throughout Australia between the ages of 6 and 15 years (16 years in Tasmania). Most children start primary school at 5 years of age. Each state and territory has developed its own approach to schooling, particularly in relation to the structure of Pre-year 1 education and the transition from primary to secondary schooling. Primary schooling in most states and territories begins with a preparatory or kindergarten year, followed by 6 or 7 primary grades, then a further 5 or 6 years to complete a full secondary course of study. In total, most states and territories offer 13 years of schooling (except Queensland and Western Australia, which offer 12 years). Commencing in 2002, students in Pre-year 1 in Western Australia have been attending school full-time, and the data will be included in Schools, Australia, 2002 (4221.0) for the first time. While the final 2 years of schooling generally fall outside the compulsory stage of education, in 2001 some 87% of full-time secondary students remained at school until Year 11 and 73% remained until Year 12.

School organisation and operation Primary schooling provides a general elementary program lasting for seven or eight years until Year 6 or Year 7. Students enter secondary schools at Year 7 in some state (or territory) systems and at Year 8 in others. Primary and secondary schools are usually separate institutions, but in some areas there are central or area schools which provide both levels of schooling. In Tasmania and the Australian Capital Territory, the final two years of government schooling are undertaken at separate secondary colleges.

Generally, schools in Australia have a considerable degree of autonomy. Most states and territories have established 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. Typically, individual schools determine teaching and learning approaches within the given guidelines and offer various course options. The 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 In early primary education, the main emphasis is on the development of basic language and literacy skills, simple arithmetic, moral and social education, health training and some creative activities. In the upper primary years the focus is on development of the skills learned in earlier years. English, mathematics, social studies, science, music, art and craft, physical education and health are studied. There are also optional subjects such as religious instruction, foreign and community languages, and music.

Secondary schooling In some systems 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 later years, a basic core of subjects is retained, with students able to select additional optional subjects. In other systems, students select options from the beginning of secondary school. In senior secondary years, a wider range of options is available in the larger schools and there is an increasing trend towards encouraging individual schools to develop courses suited to the needs and interests of their students, subject to accreditation and moderation procedures. There is also an increasing emphasis on the incorporation of vocational programs into the senior secondary curriculum. School students may obtain certificates in VET as part of their senior study and undertake some parts of their 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 TAFE institution or a private business

Chapter 10 — Education and training

college. For many VET courses, completion of Year 10 of secondary school is a minimum entry requirement. For those continuing to the end of secondary school (Year 12), opportunities for further study are available at higher education institutions, VET institutions and other educational institutions. Students’ eligibility to enter higher education institutions is assessed during, or at the end of, the final two years of secondary schooling.

Other schooling arrangements Children may be exempted from the requirement of compulsory attendance at a school if they live too far from a school or have a disability. These children receive tuition through a variety of educational delivery mechanisms, including distance education, Schools of the Air, and use of computer and facsimile technologies. Children of some Indigenous groups in remote areas of the Northern Territory, who live in small decentralised communities such as outstations or homeland centres, receive schooling from Indigenous teaching assistants supported by visiting teachers from established schools. Boarding facilities are available at some non-government schools, mainly in the larger towns and cities. A small number of government schools, in particular those catering for groups such as Indigenous people, have residential hostels close by. Children may receive tuition at home, but must apply to their state or territory Department of Education for permission. They must be enrolled

10.11

305

as a student at a day school and be available when required for assessment against the regular school year curriculum. Special education is provided by government and non-government authorities in special classes or units in regular schools, by withdrawal from regular classes for periods of intensive assistance by special staff, or in specialist schools. In all states and territories, and particularly in New South Wales, Queensland and Victoria, parents have formed voluntary organisations to establish additional schools catering for their children’s special needs. The Commonwealth Government provides funds to states and territories, non-government authorities and community groups to assist in the provision of services and upgrading of special education facilities.

Schools, students, and teaching staff There were 9,596 schools operating in Australia in August 2001, 72% of which were government schools. There were 152,138 full-time equivalent (FTE) teaching staff employed in government schools (69% of all teachers), and a further 69,789 employed in non-government schools (table 10.11). In 2001, 3.3 million students were attending primary and secondary schools on a full-time basis, comprising 2.2 million (69%) in government schools and 1.0 million (31%) in non-government schools. Between 1991 and 2001, the number of students attending government schools increased by 30,993 (1.4%) while the number of students attending non-government schools increased by 162,011 (19%) (table 10.12).

SCHOOLS, STUDENTS AND TEACHING STAFF — August 2001 Non-government schools Government schools % 72.3

Catholic % 17.7

Other % 10.0

Total % 27.7

All schools ’000 9.6

Students(a) Males Females Persons

69.2 68.3 68.8

19.6 20.2 19.9

11.2 11.5 11.4

30.8 31.7 31.2

1 663.5 1 604.6 3 268.1

FTE of teaching staff(b) Males Females Persons

67.2 69.2 68.6

17.5 18.8 18.4

15.3 12.0 13.1

32.8 30.8 31.4

73.3 148.6 221.9

Schools

(a) Full-time students only. (b) Full-time teaching staff plus full-time equivalent (FTE) of part-time teaching staff. Source: Schools, Australia, 2001 (4221.0).

306

Year Book Australia 2003

10.12

1997 ’000

1998 ’000

1999 ’000

2000 ’000

2001 ’000

1 137.1 1 080.1 2 217.2

1 140.9 1 089.2 2 230.1

1 144.8 1 094.6 2 239.4

1 148.4 1 099.2 2 247.7

1 149.8 1 098.5 2 248.3

1 151.9 1 096.3 2 248.2

431.4 426.5 857.9

473.9 467.7 941.6

482.4 476.9 959.3

491.7 487.3 979.0

501.2 497.9 999.1

511.6 508.3 1 019.9

1 568.5 1 506.6 3 075.1

1 614.8 1 556.9 3 171.6

1 627.2 1 571.4 3 198.7

1 640.1 1 586.5 3 226.6

1 651.0 1 596.4 3 247.4

1 663.5 1 604.6 3 268.1

Category of school

Government schools Males Females Persons Non-government schools Males Females Persons All schools Males Females Persons

STUDENTS(a)(b)

1991 ’000

(a) Full-time students only. (b) At August School Census date each year. Source: Schools, Australia (4221.0).

Table 10.13 shows the percentage of school students in 2001 by level of education. Of all primary school students, 72.4% attended government schools while 27.6% attended non-government schools. At the secondary level, 10.13

attendance at government schools was 63.7% and at non-government schools 36.3%. One-fifth of all school students attended Catholic schools (18.9% of primary school students and 21.2% of secondary school students).

STUDENTS(a), By level of education — August 2001 Non-government schools

All schools

Government schools %

Catholic %

Other %

Total %

Males %

Females %

Persons ‘000

Primary Pre-year 1(b) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (Qld, SA, WA, NT) Ungraded Total

71.2 72.6 72.8 72.6 72.7 71.9 71.5 73.5 83.8 72.4

20.5 19.2 19.2 19.2 18.9 19.2 19.0 15.6 2.7 18.9

8.2 8.2 8.0 8.2 8.4 9.0 9.5 10.9 13.5 8.7

28.8 27.4 27.2 27.4 27.3 28.1 28.5 26.5 16.2 27.6

51.3 51.4 51.3 51.1 51.2 51.1 51.2 51.2 65.0 51.3

48.7 48.6 48.7 48.9 48.8 48.9 48.8 48.8 35.0 48.7

189.6 269.7 267.8 268.6 266.6 267.9 264.8 101.3 16.1 1 912.4

Secondary Year 7 (NSW, Vic., Tas., ACT) Year 8 Year 9 Year 10 Year 11 Year 12 Ungraded Total

62.3 63.8 64.3 64.3 63.2 61.1 88.8 63.7

23.5 21.3 21.0 20.8 20.7 22.1 3.9 21.2

14.2 14.9 14.7 14.9 16.1 16.8 7.3 15.1

37.7 36.2 35.7 35.7 36.8 38.9 11.2 36.3

51.1 51.0 51.1 50.7 48.9 47.4 61.1 50.3

48.9 49.0 48.9 49.3 51.1 52.6 38.9 49.7

160.5 258.0 254.9 251.8 223.4 188.1 19.0 1 355.7

Total

68.8

19.9

11.4

31.2

50.9

49.1

3 268.1

Level/year of education

(a) Full-time students only. (b) Pre-year 1 does not include Qld and WA. Source: Schools, Australia, 2001 (4221.0).

Chapter 10 — Education and training

Graph 10.14 shows student/teacher ratios at government and non-government schools by level, in 1991 and 2001. These ratios represent the number of full-time students divided by FTE teaching staff. In 1991, non-government schools had a higher student/teacher ratio than government schools. By 2001 the difference between government and non-government schools was minimal (14.8 and 14.6 students per teacher, respectively). The greatest change in the student/teacher ratio was for Catholic primary schools, where the ratio declined from 21.9 students per teacher in 1991 to 18.8 students per teacher in 2001.

Apparent retention rates Apparent retention rates are important measures of the performance of education systems and related government policies. The apparent retention rate is an estimate of the percentage of students of a given cohort who continued to a particular level or year of education. For instance, in 2001 the apparent retention rate of full-time secondary school students from Year 7/8 to Year 12 was 73%. As in previous years, the

307

apparent retention rate for female students remains higher than the corresponding rate for male students. Table 10.15 shows apparent retention rates from Year 10 to Year 12 rather than from the commencement of secondary schooling, where attendance due to age requirements is most likely compulsory. Retention rates have been calculated for full-time students, and for all students (full-time and part-time), who continued to Year 12 from their respective cohort at Year 10. The apparent retention rate in 2001 of full-time students from Year 10 to Year 12 was 1.8 percentage points higher than the 1996 rate. The increase is 2.1 percentage points over this period when part-time students are included. Care should be taken in interpreting apparent retention rates since various factors affecting their calculation have not been taken into account. At the national level these include the effects of part-time study, students who repeat a year of education, migration, and changing characteristics of the school population, such as the growing number of full-fee paying overseas students.

10.14 FULL-TIME STUDENTS TO TEACHING STAFF(a), By category of school Govt primary Govt secondary Catholic primary Other primary Catholic secondary Other secondary Total govt Total non-govt All primary All secondary 0

1991 2001

5

10

15 ratio

20

25

30

(a) Full-time teaching staff plus full-time equivalent of part-time teaching staff. Note: This graph should not be used as a measure of class size. Source: Schools, Australia (4221.0).

10.15 SECONDARY STUDENTS, Apparent retention rates from Year 10 to Year 12

1996 1997 1998 1999 2000 2001

Full-time males % 68.6 69.3 68.9 68.9 69.0 70.8

Full-time females % 78.7 79.9 79.4 79.9 80.0 80.1

Source: Schools, Australia (4221.0).

Full-time students % 73.6 74.5 74.1 74.4 74.4 75.4

All males % 71.7 72.4 71.8 71.9 72.1 73.9

All females % 83.2 84.6 83.6 84.5 84.7 84.9

All students % 77.3 78.4 77.6 78.1 78.3 79.4

308

Year Book Australia 2003

Vocational Education and Training (VET) Institutions Most VET in Australia is provided in government-administered colleges. In some states and territories these are referred to as TAFE colleges or institutes. To a lesser extent, VET may also be provided by Institutes of Technology, some higher education institutions, schools and agricultural colleges, adult and community education authorities, private providers of education (such as business colleges) and employers. VET institutions offer a wide range of programs, ranging from recreation and leisure, through basic employment and educational preparation, to trades training, and para-professional and professional levels. In 2001 there were 87 TAFE and other government institutes with 1,322 provider locations delivering VET training. A further 985 community education providers and 5,645 other providers delivering VET were at least partly publicly funded.

Staff Table 10.16 shows the number of teachers working in VET institutions in 2000–01. Of all VET teachers, the majority (57%) were employed full-time. The majority of full-time VET teachers (68%) were male. In contrast, 74% of part-time VET teachers were female.

10.16 VET TEACHING STAFF — 2000–01(a)

Males Females Persons

Full-time staff ’000 11.0 5.1 16.1

Part-time staff ’000 3.2 9.1 12.3

All teaching staff ’000 14.2 14.1 28.4

(a) Average over the financial year. Source: ABS data available on request, Labour Force Survey, May 2001.

Students and courses Table 10.17 shows participation in publicly funded VET programs. While there were more males than females in VET courses overall, from age 40 onwards more women than men undertook VET courses.

10.17 VET(a) CLIENTS(b), Vocational and preparatory courses(c) — 2001 Age group (years)

Under 16 16 17 18 19 20–24 25–29 30–39 40–49 50–59 60–64 65 and over Not stated Total clients

Males ’000 20.6 44.8 56.0 57.6 52.1 150.0 98.5 164.4 124.4 70.0 13.3 13.6 28.3 893.5

Females ’000 17.6 41.8 48.6 45.9 39.6 116.1 87.0 164.4 151.9 77.7 14.0 15.4 35.9 856.0

Persons(d) ’000 38.2 86.7 104.6 103.7 92.0 266.6 185.8 329.5 276.3 148.1 27.4 29.1 68.4 1 756.8

(a) Includes all VET delivery by TAFE and other government providers, registered community providers, some VET delivered in schools, and publicly funded delivery by private providers. Fee-for-service VET delivery by private providers has been excluded. (b) A client is any individual participating in a specific enrolment or training contract with a specific organisation. (c) Courses leading to a vocational award. (d) Includes sex not stated. Source: National Centre for Vocational Education Research, data available on request.

VET programs are classified according to 12 fields of study on the basis of similar emphasis or subject matter orientation. As the new classification for education is being phased in on different timeframes for different education sectors, field of study data for the various sectors may not be comparable for 2001. Table 10.18 shows the number of course enrolments in each field of study in 2001. Since clients may be enrolled in more than one VET course the number of course enrolments is greater than the total number of clients — there were 2.1 million course enrolments in 2001 compared with 1.8 million clients. Excluding multi-field education, the fields of study of Business, administration and economics; Services, hospitality and transportation; and Engineering and surveying accounted for 53% of the remaining 1,815,000 VET enrolments in 2001. Males made up a clear majority of enrolments in the fields of study of Architecture and building (91%), Engineering and surveying (88%) and Land and marine resources and animal husbandry (76%). Similarly, females were in the majority in Business, administration and economics (66%), Health, community services (66%) and Arts, humanities and social sciences (61%) (table 10.18).

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309

10.18 VET(a) COURSE ENROLMENTS, Vocational and preparatory courses(b) — 2001 Field of study

Land and marine resources, animal husbandry Architecture, building Arts, humanities and social sciences Business, administration and economics Education Engineering and surveying Health, community services Law, legal studies Science Veterinary science, animal care Services, hospitality and transportation VET multi-field education Total enrolments(a)

Males ’000 90.6 99.2 60.4 139.9 26.4 217.6 67.6 8.5 104.5 1.1 145.9 142.2 1 041.1

Females ’000 28.8 9.7 94.6 279.0 37.7 30.3 130.6 6.6 87.2 5.2 139.3 161.4 1 010.5

Persons(c) ’000 119.6 109.0 155.5 420.7 64.2 248.1 198.7 15.2 192.3 6.2 285.5 304.2 2 119.2

(a) Includes all VET delivery by TAFE and other government providers, registered community providers, some VET delivered in schools, and publicly funded delivery by private providers. Fee-for-service VET delivery by private providers has been excluded. (b) Courses leading to a vocational award. (c) Includes sex not stated. Source: National Centre for Vocational Education Research, data available on request.

Apprenticeships and traineeships Some 39% of all apprentices and trainees in training at 31 December 2001 were in the broad occupational group Tradespersons and related workers. In this group, Construction and Automotive trades accounted for 23% and 18%, respectively, of the group total (table 10.19). 10.19

Some 86% of apprentices and trainees in the broad occupational group Trades and related workers were male. Within this group, however, over 91% of those in Hairdressing were females.

APPRENTICES AND TRAINEES(a), In training — 31 December 2001

Managers and administrators Professionals Associate professionals

Males ’000 2.9 2.6 7.5

Females ’000 3.0 2.4 6.8

Persons ’000 5.9 5.0 14.3

Total % 1.8 1.5 4.3

Tradespersons and related workers Mechanical and fabrication engineering Automotive Electrical and electronic Construction Food Skilled agricultural and horticultural workers Hairdressers Tradespersons and related workers n.e.c. Other Total

15.4 22.2 14.7 29.3 14.3 4.6 0.9 0.1 8.3 109.7

0.3 0.3 0.2 0.3 4.9 0.6 9.3 — 1.1 17.2

15.8 22.5 14.9 29.6 19.2 5.2 10.2 0.1 9.4 126.9

4.8 6.8 4.5 9.0 5.8 1.6 3.1 — 2.9 38.5

0.6 16.4 35.3 20.4 20.9

2.4 42.5 4.0 27.2 7.9

3.0 58.9 39.3 47.6 28.8

0.9 17.9 11.9 14.4 8.7

216.3

113.3

329.6

100.0

Major occupation group

Advanced clerical and service workers Intermediate clerical, sales and service workers Intermediate production and transport workers Elementary clerical, sales and service workers Labourers and related workers Total

(a) Major groups are classified according to the Australian Standard Classification of Occupations (ASCO). Source: National Centre for Vocational Education Research, data available on request.

310

Year Book Australia 2003

Work-related training The Survey of Education, Training and Information Technology, which was conducted between April and August 2001, collected information from individuals aged 15–64 years. The survey focused on educational attainment, participation in education and training over the past 12 months, and use of information technology. This article explores the incidence and characteristics of work-related training, using information collected in the survey about work-related training courses which were completed over the 12-month period prior to the survey. Details were collected about a maximum of four training courses for each person. Some comparisons are made with data from the 1997 Survey of Education and Training. Further explanatory material is available in Education and Training Experience, Australia (6278.0).

non-formal types of learning, and which continues throughout adult life. In 2001, 37% of the 12.9 million people aged 15–64 years had completed at least one work-related training course in the 12 months prior to the survey. In all, 4.8 million people completed 9.8 million courses. This article focuses on the 8.3 million training courses which were completed by people who were wage or salary earners at the time of training. (A more detailed explanation of wage or salary earners is available in Education and Training Experience, Australia (6278.0).) These training courses, which involved over 143 million hours of training, represented 84% of all training courses completed. For ease of expression, the remainder of the article will refer to training course completions as those training courses completed by people who were wage or salary earners at the time of training.

Work-related training in context Work-related training not only enhances individuals’ skills, enabling them to remain competitive in the labour market, but also promotes labour market competitiveness in a global context. Workplace training is also a key element of society’s increasing focus on a learning path for individuals which extends beyond schooling to other formal and

Age and sex of training participants Some 85% of all training course completions were by people aged 25–64 years. Within this broad age range, relatively little training was completed by people aged 55–64 years (6% of training course completions) (graph 10.20). Half (50%) of completions were by females, an increase from 48% in 1997.

10.20 TRAINING COURSE COMPLETIONS(a) — 2001 % 30

Males Females

20

10

0 15–24

25–34

35–44 Age group (years)

45–54

(a) Individual age groups as a percentage of total course completions. Source: ABS data available on request, Survey of Education and Training, 2001.

55–64

Chapter 10 — Education and training

Occupation of training participants Some 30% of completed courses were undertaken by the broad occupation group Professionals, 19% by Intermediate clerical, sales and service workers, and 14% by Associate professionals. This pattern is similar to that in 1997, when the corresponding figures were 32%, 19% and 12% respectively. Only 3% of courses were undertaken by Advanced clerical and service workers, and 4% by Labourers and related workers, unchanged from 1997. Over the period 1997 to 2001, the number of training course completions increased for each of the broad occupation groups, but most notably for those wage or salary earners who were employed as Elementary clerical, sales and service workers (33%) and Associate professionals (27%) (graph 10.21). In comparison, training course completions by Professionals and Advanced clerical and service workers both increased by 7%.

Industry of trainees In 2001, 15% of training course completions were by people employed in Health and community services and a further 14% by those employed in Education, little change from 1997 when the corresponding figures were 15% for both these industries. Between 1997 and 2001, training course completions increased most notably for people employed in Cultural and recreational services (54%), Construction (54%)

and Accommodation, cafes and restaurants (48%). However, over the same period, training course completions by those wage and salary earners in Wholesale trade fell by 16%, and there were small declines also in Agriculture, forestry and fishing (5%), Mining (3%) and Manufacturing (2%) (graph 10.22).

Field of training In 2001, 41% of all training course completions were in the Management and professional, and Technical and para-professional fields (compared to 43% in 1997). The incidence of Health and safety training courses increased from 12% (of all training courses completed in 1997) to 17% in 2001 (table 10.23), largely due to a 63% increase in the number of training courses completed in this field between 1997 and 2001.

Duration of training courses In 2001, 60% of training courses completed were less than 10 hours in length and 18% were between 10 and 19 hours (table 10.23). Only 9% of training courses were of 40 hours or more duration. Since 1997, there has been a 26% increase in the number of courses of less than 10 hours, while the number of those of duration 10 hours or more has remained constant. As a consequence, the average duration of work-related training courses completed by wage or salary earners fell from 20.6 hours in 1997 to 17.4 hours in 2001.

10.21 TRAINING COURSE COMPLETIONS, By occupation of training participants(a) — 1997 to 2001 Managers & administrators Professionals Associate professionals Tradespersons & related workers Advanced clerical & service workers Interm. clerical, sales & service workers Interm. production & transport workers Elementary clerical, sales & service workers Labourers & related workers 0

311

10

20 % increase

30

(a) With main-period employers and excluding those training courses completed by wage or salary earners whose occupation was not determined. Source: Education and Training Experience, Australia (6278.0).

40

312

Year Book Australia 2003

10.22 TRAINING COURSE COMPLETIONS, By industry of training participants(a) — 1997 to 2001 Agric. forestry & fishing Mining Manufacturing Electricity, gas & water Construction Wholesale trade Retail trade Accomm., cafes & restaurants Transport & storage Communication services Finance & insurance Property & business services Govt admin. & defence Education Health & community services Cultural & rec. services Personal & other services –20

0

20 % change

40

60

(a) With main-period employers and excluding those training courses completed by wage or salary earners whose industry was not determined. Source: Education and Training Experience, Australia (6278.0).

10.23

TRAINING COURSE COMPLETIONS(a), Field and duration of training course 1997

2001

’000

%

’000

%

Field of training course Management and professional Technical and para-professional Trade and craft Clerical and office Sales and personal service Transport, plant and machinery operation, and labouring and related fields Induction Supervision Computing skills Health and safety Other(b)

2 110.4 958.2 406.8 335.6 764.9 270.2 254.9 158.4 611.1 859.7 475.6

29.3 13.3 5.6 4.7 10.6 3.8 3.5 2.2 8.5 11.9 6.6

2 393.3 1 022.3 502.3 323.5 711.4 351.5 400.4 203.2 833.7 1 401.4 118.5

29.0 12.4 6.1 3.9 8.6 4.3 4.8 2.5 10.1 17.0 1.4

Time spent on training courses (hours) 1–9 10–19 20–29 30–39 40 or more

3 959.6 1 488.4 693.1 337.4 727.3

55.0 20.7 9.6 4.7 10.1

4 991.0 1 481.2 726.3 337.1 726.0

60.4 17.9 8.8 4.1 8.8

Total

7 205.8

100.0

8 261.6

100.0

(a) This table relates to the number of training courses completed, not the number of persons. Estimates relate to a maximum of four training courses per person. Therefore, a person may contribute more than once to a given category and/or to more than one category. (b) Includes English language, Literacy, Numeracy, and Music and arts. Source: Education and Training Experience, Australia (6278.0).

Method of training delivery In 2001, 82% of training course completions were delivered mainly by classroom instruction, lecture, seminar, workshop or conferences. The

predominance of this method of training delivery reflects the importance of the formalised nature of training for workers and a training environment that provides for

Chapter 10 — Education and training

interactions between the participant and the trainer. By comparison, less people-interactive delivery methods of reading materials, audio or video cassette, and computer disk or CD-ROM each accounted for a further 4% of courses completed.

Training costs and support In 2001, 77% of training courses were completed solely in work time and a further 7% were partly completed in work time. Men more frequently completed training courses in work time than did women (82% and 72% respectively) (table 10.24). Only 7% of training courses completed had some cost to the participant, much the same as in 1997 (8%). However, for those courses which did incur a cost, the average cost of $272 was slightly higher than in 1997 ($243). For men, the

10.24

313

average cost of training courses was $374 while for women it was $199. The corresponding figures for 1997 were $317 and $200. Some 92% of all training course completions were supported by the employer in some way. That support was most frequently provided as in-house training courses. The proportion of training courses where the employer provided paid study leave more than doubled since 1997 — 13% of all training courses compared to 6% in 1997.

Training course outcomes For 89% of training course completions, participants considered that the skills gained would be transferable; that is, they could be used in a similar job with another employer. Also, some 8% of training course completions are believed to have helped the participant obtain a pay rise or promotion.

TRAINING COURSE COMPLETIONS(a), Support for training 1997

2001

’000

%

’000

%

When course conducted In work time Own time In both work and own time

5 385.4 1 307.2 513.1

74.7 18.1 7.1

6 378.4 1 302.7 580.5

77.2 15.8 7.0

Whether costs incurred Yes No

588.6 6 617.2

8.2 91.8

561.8 7 699.8

6.8 93.2

All training courses

7 205.8

100.0

8 261.6

100.0

Whether received financial support(b) Main-period employer provided paid study leave Main-period employer paid fees Main-period employer provided other financial support(c) Other employer provided support No employer support In-house training course

430.0 1 142.0 630.7 30.3 751.9 5 055.7

6.0 15.8 8.8 0.4 10.4 70.2

1 032.2 1 193.0 730.9 40.6 641.4 6 033.3

12.5 14.4 8.9 0.5 7.8 73.0

(a) This table relates to the number of training courses completed not the number of persons. Estimates relate to a maximum of four training courses per person. Therefore, a person may contribute more than once to a given category and/or to more than one category. (b) Multiple response category. (c) Includes payment for training materials, accommodation, travel expense. Source: ABS data available on request, Survey of Education and Training, 1997 and 2001.

References ABS (Australian Bureau of Statistics) 1998, Education and Training Experience, 1997, cat. no. 6278.0, ABS, Canberra. ABS 2002, Education and Training Experience, 2001, cat. no. 6278.0, ABS, Canberra.

314

Year Book Australia 2003

While there were more male than female academics in 2001, the proportions were closer than they had been a decade earlier. In 2001, 63% of academics were male, compared to 69% in 1991. Men outnumbered women at all academic levels except ‘below lecturer’. Between 1991 and 2001, the proportion who were women increased substantially for all academic levels.

Higher education Institutions There were 42 higher education institutions which received operating grants from the Commonwealth Department of Education, Science and Training in 2001, as well as the Australian Film, Television and Radio School, the National Institute of Dramatic Art and the Australian Defence Force Academy. The private Melbourne College of Divinity reported data for the first time relating to postgraduate courses only. The private Bond University in Queensland also reported data for the first time for higher degree research courses only.

Students and courses

Apart from the Australian National University and the Australian Maritime College, which are established under Commonwealth legislation, Australian universities operate under state or territory legislation. However, they are autonomous bodies responsible for their own governance and make their own decisions on allocation of funding, staffing and academic courses.

Between 1991 and 2001 the total number of higher education students rose by 36%. Most higher education students undertake study on a full-time basis and the prevalence of this has increased slightly over the last decade. In 1991, 62% of all higher education students were enrolled in full-time study, but by 2001 the equivalent proportion was 68%. At the same time external enrolments have increased by 97% to 127,600 (table 10.26).

Staff

The basic undergraduate course at most institutions is a bachelor degree of three or four years duration. At some institutions, courses may also be offered at the diploma or advanced diploma level. Most institutions also offer postgraduate level study. One to two years of full-time postgraduate study are required for a master’s degree and three to five years for a doctoral degree. Postgraduate diplomas and certificates are offered in some disciplines. In 2001, 75% of higher education students were enrolled in bachelor courses, with a further 21% enrolled in higher degree and other postgraduate courses (table 10.27).

Most higher education institutions provide both full-time and part-time courses and external or distance education courses. In addition, some institutions offer courses which associate full-time study with periods of employment.

Table 10.25 shows that in 2001 there were almost equal proportions of male and female staff in higher education. This has changed somewhat over the last decade — in 1991, 54% of all higher education staff were male. Higher education staff may be classified as academic or non-academic. In 2001, as in previous years, there were more non-academic than academic staff. The largest numbers of academics were at the lecturer and senior lecturer levels. 10.25

HIGHER EDUCATION STAFF 1991

2001

Males %

Females %

Persons no.

Males %

Females %

Persons no.

Academic staff Above senior lecturer Senior lecturer Lecturer Below lecturer Total

90.2 82.2 61.4 48.9 69.2

9.8 17.8 38.6 51.1 30.8

5 210 7 128 12 014 5 414 29 766

82.8 69.5 54.4 45.9 62.5

17.2 30.5 45.6 54.1 37.5

7 049 8 372 11 600 6 427 33 448

Non-academic staff

42.9

57.1

41 361

38.5

61.5

44 780

Total

53.9

46.1

71 127

48.8

51.2

78 228

Classification

Source: Department of Education, Science and Training, ‘Staff 2001: Selected Higher Education Statistics’.

Chapter 10 — Education and training

10.26

HIGHER EDUCATION STUDENTS, By type of enrolment 1991

Internal Full-time Part-time External Total

315

2001

Males ’000

Females ’000

Persons ’000

Males ’000

Females ’000

Persons ’000

151.5 70.4

172.6 75.3

324.0 145.7

208.4 64.7

249.3 76.4

457.8 141.1

27.8

37.0

64.8

53.5

74.1

127.6

249.7

284.8

534.5

326.6

399.8

726.4

Source: Department of Education, Science and Training, ‘Staff 2001: Selected Higher Education Statistics’.

10.27

HIGHER EDUCATION STUDENTS, By level of course(a) — 2001

Field of study

Natural and physical sciences Information technology Engineering and related technologies Architecture and building Agriculture, environment and related studies Health Education Management and commerce Society and culture Creative arts Food, hospitality and personal services Mixed field programmes Non-award Total

Postgraduate degree ’000 8.1 8.2

Postgraduate diploma or equivalent ’000 1.0 6.9

Bachelor degree ’000 51.5 43.1

Diploma and advanced diploma ’000 0.3 0.2

Other education ’000 0.6 0.1

Total courses ’000 61.5 58.5

6.7 1.4

1.4 0.8

51.5 13.6

0.6 0.1

0.2 —

60.4 15.7

2.7 11.3 11.0 34.4 20.3 3.9

0.7 6.7 9.5 11.7 7.3 1.6

11.3 66.8 57.4 135.2 136.2 38.6

2.1 0.7 0.6 2.4 4.1 0.5

0.2 0.1 0.3 1.0 1.7 0.6

17.0 85.6 79.0 184.6 169.5 45.1

— — —

— — —

0.1 0.2 —

— — —

— 1.3 —

0.1 1.5 10.2

107.8

47.5

543.1

11.6

6.2

726.4

(a) The data take into account the coding of combined courses to two fields of study. As a consequence, counting both fields of study for combined courses means that the data in the total row may be less than the sum of the data aggregated down each column. Source: Department of Education, Science and Training, ‘Students 2001: Selected Higher Education Statistics’.

Higher education institutions offer a great variety of courses embracing such areas as Agriculture, Architecture, Commerce, Culture, Education, Engineering, Environment, Health, Hospitality, Information technology, Management, and the Natural and physical sciences. Fields of study with the largest numbers of award course students in 2001 were Management and commerce (25%); Society and culture (23%); Health (12%); and Education (11%). Table 10.28 shows the number of higher education students by age group and sex. Over the last decade (1991–2001) the growth in higher education student numbers (36%) has been strongest among 25–29 year olds (57%) and 20–24 year olds (53%). The overall proportion of female students in higher education increased from 53% in 1991 to 55% in 2001.

The average annual starting salary of male bachelor degree graduates has risen by 36% between 1991 and 2001 to $41,526. For females the rise was 33% to $36,268 (table 10.29). These starting salaries, as a percentage of average annual full-time adult ordinary time earnings, have declined in the years 1991–2001. For males they dropped from 99.4% to 91.4%. For females the respective percentages dropped from 104.6% to 94.6%. The male postgraduate average annual starting salary rose by 58% between 1991 and 2001 to $65,406. For females the rise was 48% to $50,538. Postgraduate starting salaries, as a percentage of average annual full-time adult ordinary time earnings, show rises between 1991 and 2001. For males they increased from 134.6% to 144.0%. For females they increased from 131.0% to 131.9%.

316

Year Book Australia 2003

10.28

HIGHER EDUCATION STUDENTS(a)

1991 ’000

1997 ’000

1998 ’000

1999 ’000

2000 ’000

2001 ’000

19 and under Males Females Persons

74.8 96.6 171.4

76.0 102.4 178.4

76.6 104.8 181.4

77.8 107.7 185.5

78.9 110.4 189.3

81.2 113.4 194.5

20–24 Males Females Persons

80.3 80.0 160.3

101.0 112.8 213.8

103.0 117.3 220.4

105.2 121.9 227.2

107.1 126.2 233.3

113.0 132.7 245.7

25–29 Males Females Persons

32.3 30.7 63.0

42.5 44.4 86.9

44.0 46.7 90.7

44.8 48.1 92.9

45.2 49.0 94.1

47.6 51.2 98.7

30 and over Males Females Persons

62.2 77.6 139.8

80.7 99.1 179.8

80.8 98.6 179.4

81.1 99.6 180.7

80.2 98.6 178.8

84.8 102.7 187.4

Total Males Females Persons

249.7 284.8 534.5

300.2 358.7 658.8

304.4 367.5 671.9

309.0 377.3 686.3

311.4 384.1 695.5

326.6 399.8 726.4

Age group (years)

(a) Includes students in enabling and non-award courses. Source: Department of Education, Science and Training, ‘Students 2001: Selected Higher Education Student Statistics’.

10.29

STARTING SALARIES FOR EMPLOYED HIGHER EDUCATION GRADUATES Bachelor graduates(a)

1991 1996 2001

Males $ 30 604 34 915 41 526

Females $ 27 223 31 141 36 268

Postgraduates(a) Males $ 41 435 52 958 65 406

Average annual full-time adult ordinary time earnings(b)

Females $ 34 083 41 445 50 538

Males $ 30 784 37 223 45 412

Females $ 26 025 30 892 38 327

(a) Self-employed graduates are included in 1991 and 1996 but excluded in 2001. (b) Of employees. Source: Average Weekly Earnings, Australia (6302.0); Graduate Careers Council of Australia, Graduate Destinations Survey.

Adult and community education (ACE) ACE is the most decentralised of the education sectors. ACE refers to the provision of those general adult education programs and activities which fall outside, but complement, the formal programs and qualification pathways provided by the school, VET and higher education sectors. ACE focuses on the provision of learning opportunities at a community level, rather than work-related training. The community education and VET sectors are the largest providers of adult recreational and leisure courses. Courses range from general interest, recreational and leisure activities, personal development, social awareness and craft, through to vocational,

remedial and basic education. Community-based adult education is open to all, and its non-formal characteristics demonstrate the capacity of the community to develop alternatives to institutionalised education. In 2001, 36% of students enrolled in ACE courses were enrolled in Arts, humanities and social sciences courses, 21% in Health and community services courses, and 15% in VET multi-field education courses (table 10.30). Recreation, leisure and personal enrichment enrolments are mainly with community-based providers (74% of students in 2001), the balance being almost entirely with government VET providers. There were 238,900 enrolments in these programs in 2001, 72% of which were by females.

Chapter 10 — Education and training

10.30 COURSE ENROLMENTS IN PERSONAL ENRICHMENT PROGRAMS — 2001 All Males Females enrolments(a) ’000 ’000 ’000

Land and marine resources, animal husbandry Architecture, building Arts, humanities and social sciences Business, administration and economics Education Engineering and surveying Health, community services Law, legal studies Science Veterinary science, animal care Services, hospitality and transportation VET multi-field education Total

2.5 3.2

4.1 5.6

6.7 8.8

18.1

67.9

87.0

4.1 0.2

6.9 0.1

11.1 0.3

2.6

4.2

6.9

9.8 0.2 4.3

39.7 0.4 5.9

50.0 0.6 10.2



0.1

0.2

5.9

15.1

21.1

14.1

21.8

36.1

65.0

171.7

238.9

317

Indigenous education and training Indigenous school students In 2001 there were 78,943 Indigenous students attending primary schooling and 36,522 Indigenous students attending secondary schooling. Most Indigenous students (88%) attended government schools in 2001. Of the remainder attending non-government schools, most were attending Catholic schools (68%) (table 10.31). The increase in ungraded students between primary and secondary education is mostly attributable to the classification of secondary-age students in Northern Territory remote Homeland Learning Centres as ungraded. This is due to the difficulty of classifying such students in terms of the normal secondary grade structure.

(a) Includes sex not stated. Source: National Centre for Vocational Education Research, data available on request.

10.31

FULL-TIME INDIGENOUS SCHOOL STUDENTS — August 2001 Non-government schools Government schools

Catholic

Other

Total

All schools

Primary Pre-year 1(a) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (Qld, SA, WA, NT) Ungraded Total

6 056 10 210 9 943 9 872 9 792 9 354 9 195 5 241 1 039 70 702

474 881 833 866 819 781 781 441 160 6 036

126 269 260 304 260 274 290 205 217 2 205

600 1 150 1 093 1 170 1 079 1 055 1 071 646 377 8 241

6 656 11 360 11 036 11 042 10 871 10 409 10 266 5 887 1 416 78 943

Secondary Year 7 (NSW, Vic., Tas., ACT) Year 8 Year 9 Year 10 Year 11 Year 12 Ungraded Total

3 306 7 361 6 584 5 522 3 579 2 076 2 121 30 549

243 777 762 710 478 352 238 3 560

79 551 468 449 282 192 392 2 413

322 1 328 1 230 1 159 760 544 630 5 973

3 628 8 689 7 814 6 681 4 339 2 620 2 751 36 522

101 251

9 596

4 618

14 214

115 465

Level/year of education

Total (a) Pre-year 1 does not include Qld and WA. Source: Schools, Australia, 2001 (4221.0).

318

Year Book Australia 2003

Graph 10.32 shows a decline in government school attendance from Year 1 onwards in 2001. The number of Indigenous students attending non-government schools remained relatively stable across the early grades, followed by a slight increase in Year 8 students, then a decline until Year 12. Table 10.33 shows an increase in the number of Indigenous students between 1991 and 2001 from 72,249 to 115,465. Over this period, the

number of Indigenous students attending each level of education increased in every state and territory. New South Wales and Queensland experienced the largest increases in Indigenous school attendance, by 15,597 and 11,625 respectively. In 1991 and 2001 there were more Indigenous males in primary schooling than females. In secondary schooling, there were more Indigenous males in 1991 and more Indigenous females in 2001.

10.32 FULL-TIME INDIGENOUS SCHOOL STUDENTS — August 2001 Year 12 Year 11 Year 10 Year 9 Year 8 Year 7 Year 6 Year 5 Year 4 Year 3 Year 2 Year 1 Pre-year 1

Non-government Government

0

2

4

Source: Schools, Australia, 2001 (4221.0).

6 '000

8

10

12

Chapter 10 — Education and training

10.33 NSW

319

FULL-TIME INDIGENOUS SCHOOL STUDENTS(a), By level of education Vic.

Qld

SA

WA

Tas.

NT

ACT(b)

Aust.

PRIMARY Males 1991 2001 Females 1991 2001 Students 1991 2001

6 080 11 366

897 2 060

7 102 11 355

1 542 2 528

4 426 6 327

621 1 441

4 341 5 004

152 317

25 161 40 398

5 670 10 842

871 2 041

6 585 10 850

1 488 2 474

4 335 5 884

611 1 365

4 261 4 776

132 313

23 953 38 545

11 750 22 208

1 768 4 101

13 687 22 205

3 030 5 002

8 761 12 211

1 232 2 806

8 602 9 780

284 630

49 114 78 943

SECONDARY Males 1991 2001 Females 1991 2001 Students 1991 2001

3 339 5 802

613 1 033

3 413 4 933

582 869

1 864 2 597

412 946

1 298 1 726

81 173

11 602 18 079

3 224 5 900

593 1 093

3 422 5 009

651 975

1 884 2 704

416 902

1 272 1 678

71 182

11 533 18 443

6 563 11 702

1 206 2 126

6 835 9 942

1 233 1 844

3 748 5 301

828 1 848

2 570 3 404

152 355

23 135 36 522

TOTAL Males 1991 2001 Females 1991 2001 Students 1991 2001

9 418 17 168

1 510 3 093

10 515 16 288

2 124 3 397

6 290 8 924

1 033 2 387

5 639 6 730

233 490

36 763 58 477

8 894 16 742

1 464 3 134

10 007 15 859

2 139 3 449

6 219 8 588

1 027 2 267

5 533 6 454

203 495

35 486 56 988

18 313 33 910

2 974 6 227

20 522 32 147

4 263 6 846

12 509 17 512

2 060 4 654

11 172 13 184

436 985

72 249 115 465

(a) At August Schools Census date each year. (b) Includes one government primary school in Jervis Bay Territory with 38 students (14 males, 24 females). Source: Schools, Australia (4221.0).

Indigenous VET students In 2001, 53% of Indigenous VET clients were male. In all geographic regions, the number of male Indigenous clients outnumbered their female counterparts (table 10.34). Indigenous VET clients were not as strongly affiliated with urban locations when compared to all VET clients. Some 27% of Indigenous clients were located in capital cities compared with 55% of all clients, and a further 27% of Indigenous clients were located in remote areas compared with 4% of all clients. Since clients may be enrolled in more than one VET course, the number of course enrolments is greater than the total number of clients. There were 78,100 Indigenous course enrolments in 2001 compared with 58,000 Indigenous clients.

There was an overall increase of 107% in Indigenous VET enrolments between 1995 and 2001 (table 10.35). While the largest increase in enrolments was in the field of Arts, humanities and social sciences (6,000 enrolments), the most rapid rate of growth over that period was in Law and legal studies where enrolments increased by more than 400%. In 2001 there were more Indigenous enrolments (26%) in multi-field VET courses (including school courses offered in VET institutions) than in other courses. Arts, humanities and social sciences was the second most popular field of study, accounting for 12% of Indigenous enrolments.

320

Year Book Australia 2003

10.34 INDIGENOUS VET(a) CLIENTS(b), Vocational and preparatory courses(c) — 2001 Geographic region of client address

Indigenous clients Males Females Persons All Indigenous clients All clients

Units

Capital city

Other metropolitan

Rural

Remote

Other

Total

’000 ’000 ’000

8.3 7.1 15.4

1.7 1.7 3.4

11.7 10.5 22.2

8.5 7.4 15.9

0.5 0.5 1.1

30.7 27.2 58.0

% %

26.6 55.2

5.9 7.3

38.2 31.2

27.4 3.9

1.9 2.4

100.0 100.0

(a) Includes all VET delivery by TAFE and other government providers, registered community providers, some VET delivered in schools, and publicly funded delivery by private providers. Fee-for-service VET delivery by private providers has been excluded. (b) A client is any individual participating in a specific enrolment or training contract with a specific organisation. (c) Courses leading to a vocational award. Source: National Centre for Vocational Education Research, data available on request.

Indigenous higher education students

10.35 INDIGENOUS VET(a) COURSE ENROLMENTS, Vocational and preparatory courses(b) Field of study

1995 ’000

2001 ’000

Land and marine resources, animal husbandry Architecture, building Arts, humanities and social sciences Business, administration and economics Education Engineering and surveying Health, community services Law, legal studies Science Veterinary science, animal care Services, hospitality and transportation VET multi-field education

2.5 1.5 3.4

6.7 3.7 9.4

4.8 2.2 2.6 2.4 0.1 0.9 — 2.6 14.8

9.1 4.5 6.0 8.4 0.5 3.1 0.1 6.6 20.0

Total

37.8

78.1

(a) Includes all VET delivery by TAFE and other government providers, registered community providers, some VET delivered in schools, and publicly funded delivery by private providers. Enrolments in fee-for-service VET courses of private providers have been excluded. (b) Courses leading to a vocational award. Source: National Centre for Vocational Education Research, data available on request.

10.36

In 2001, 7,342 Indigenous students were attending higher education. Females comprised 65% of Indigenous higher education students, compared to 55% of the total higher education student population. Table 10.36 shows the distribution of Indigenous higher education students across states and territories in 2001. New South Wales, Queensland and Western Australia had the largest number of Indigenous students, with the Australian Capital Territory and Tasmania having the smallest number. The proportion of Indigenous students who were females was the highest in Northern Territory, Western Australia and South Australia (70%, 67% and 65% respectively). The Australian Capital Territory had the least differential between the number of male and female Indigenous students attending higher education institutions (53% were females).

INDIGENOUS HIGHER EDUCATION STUDENTS — 2001 Commencing Indigenous students

New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Multi-state(a) Total

Males 282 142 210 88 238 61 181 25 20 1 247

Females 532 233 391 107 514 54 382 32 74 2 319

Persons 814 375 601 195 752 115 563 57 94 3 566

All Indigenous students Males 727 293 527 159 442 103 236 64 53 2 604

Females 1 237 477 876 294 899 131 557 71 196 4 738

(a) Multi-state institutions have campuses in more than one state and/or territory. Source: Department of Education, Science and Training, ‘Students 2001: Selected Higher Education Statistics’.

Persons 1 964 770 1 403 453 1 341 234 793 135 249 7 342

Chapter 10 — Education and training

Graph 10.37 illustrates the increase in Indigenous participation in higher education over the past decade. Between 1991 and 2001 the number of Indigenous students increased by 53% from 4,807 to 7,342. The greatest annual increase of Indigenous students was between 1993 and 1994 when the number of students increased by 686 or 12%.

321

Table 10.38 shows that in 2001 the fields of study with the largest numbers of Indigenous student enrolments were Society and culture (35%), Education (20%) and Health (14%).

10.37 ALL INDIGENOUS HIGHER EDUCATION STUDENTS '000 10

Males Females Persons

8 6 4 2 0 1991

1993

1995

1997

1999

2001

Source: Department of Education, Science and Training, 'Students 2001: Selected Higher Education Statistics'.

10.38 INDIGENOUS HIGHER EDUCATION STUDENTS, By broad field of study and level of course — 2001

Field of study

Natural and physical sciences Information technology Engineering and related technologies Architecture and building Agriculture, environment and related studies Health Education Management and commerce Society and culture Creative arts Food, hospitality and personal services Mixed field programmes Non-award Total(a)

Bachelor degree 196 127 92 44

Associate degree/ diploma and advanced diploma 1 2 2 —

Other award courses 26 — — —

14 74 84 41 39 11 — — —

89 663 959 483 1 759 340 — 3 —

27 213 317 64 436 72 — 2 —

2 2 7 7 18 — — 6 —

43 185 3 1 007 10 1 458 — 660 178 2 599 44 494 — — 636 647 — 14

278

4 494

1 136

68

914 7 342

Postgraduate degree 18 6 5 5

Postgraduate diploma/ graduat