Australia Council

[22:07]

Senator MILNE: I want to ask about the in-Australia provisions as they apply to the performing arts companies. I have been concerned to see that, in relation to the legislation that is proposed, you have got the Sydney Dance Company and the Australian Chamber Orchestra currently exempted from schedule 3 of the bill, and yet Bangarra Dance Theatre and Circus Oz are not excluded or exempted. It seems to me that the in-Australia test is very problematic as far as performing arts groups are concerned. What advice have you been able to provide, or can you just inform the committee, about the concerns in terms of not designating all arts and cultural organisations as exempt from the in-Australia rule so that international touring activities do not affect their tax status? Should we be granting an exemption on a total basis rather than an ad hoc basis?

Ms Keele : I think the department is going to have to answer most of this, because they are engaged with the legislation that is going on.

Ms Basser : We are aware of the concerns and we are aware of the potential impacts of these decisions. We have been working with the Australia Council to collect examples of what the impacts will be on some of these organisations. We are in active discussions with Treasury about that.

Senator MILNE: Can you explain to me why the Sydney Dance Company and the Australian Chamber Orchestra but not Bangarra Dance Theatre and Circus Oz? What is the rationale?

Ms Basser : They are not our decisions and in terms of the rationale that Treasury used that is a matter for Treasury.

Senator MILNE: But how can Treasury make those kinds of ad hoc decisions?

Ms Foster : The application of that legislation is an issue for Treasury. As Ms Basser said, we have been engaging with them and working closely with the Australia Council to explore exactly these issues with them.

Senator MILNE: Okay, so maybe I will go back to the Australia Council. Can you explain to me what will be the impact on some of our performing arts companies if they are not exempted?

Ms Keele : I think this is still in progress but our advice has reflected on the fact that it is for those companies where the majority of their business is about overseas activity, so that actually cuts it down to only a few. As I said, we have to watch how that plays out but there are not a lot of organisations where the majority of their business is overseas, so the impact would be that they are fundraising for overseas activities. So that is why we have to continue to watch how this works out and make sure that the organisations that are exempted are those very organisations. So it is still being developed, as I understand it, but we continue to advise along those lines.

Senator MILNE: So is the Australia Council's advice that all performing arts organisations be exempted from the in-Australia provision?

Ms Keele : Not particularly. It depends on how the law turns out and how they go. But if it is focused on organisations where the majority of their business is overseas we would recommend that those organisations be exempted. There is no use putting it across all organisations when the majority of organisations do not do the majority of their work overseas. I hope that is not too confusing.

Senator MILNE: I understand what you are saying, but surely a recommendation that arts not be captured by the in-Australia provision would be a sensible way of insulating the arts from Treasury's ad hoc decisions about which ones apply and which ones do not.

Ms Keele : At this point we have not gone in that direction.

CHAIR: The last one, Senator Milne. It is so we do not embarrass ourselves.

Senator MILNE: Can I just ask a straight yes or no question?

CHAIR: Go for it.

Senator MILNE: It is in relation to the efficiency dividend. We did ask this year whether the extra money we got from the national collecting institutions would apply to the Australia Council in relation to the government's efficiency dividend. Did it and if so by how much?

Ms Keele : We were exempt from the extra efficiency dividend.

Senator MILNE: And if you could take on notice how much it was.

Senator HUMPHRIES: I was curious about the Broadband Arts Initiative. There was a media release on 16 December 2011 where the Australia Council announced a funding pool of $300,000 for the Broadband Arts Initiative. That announcement was somewhat criticised and even ridiculed in some of the media, as you would be aware. Subsequently the media release itself making this announcement and providing these details has disappeared off the Australia Council's website. Media releases before that date and after that date all appear there but this media release does not. Is there any reason why that might be the case?

Ms Keele : I am not sure I am aware that it is gone. I would have to take your word for it. But it certainly was not a directive to get rid of it. I have no idea.

Senator HUMPHRIES: So you will put it back up, in other words?

Ms Keele : Sorry?

Senator HUMPHRIES: If it is missing you will put it back up?

Ms Keele : I do not know. I will investigate it. I actually think what might have happened is that we have probably put out one since then because since then we have had another group of applicants be awarded grants for it, so it may supersede that. But I definitely will look into it.

Senator HUMPHRIES: But this is a record of what you have done in the past and surely people are entitled to see what you announcement was on that day.

Ms Keele : I take your point.

Senator HUMPHRIES: So if you discover that it is not there on the website presumably you will restore it.

Ms Keele : I will look into it.

Senator HUMPHRIES: Well, sorry —

Ms Keele : I will not commit to it because I need to look into it. I do not know what I am committing to.

Senator HUMPHRIES: For what possible reason would you remove the media release?

Ms Keele : I do not know. As I said, I need to look into it.

CHAIR: Take it on notice.

Ms Keele : I will take it on notice.

Senator HUMPHRIES: But there isn't a reason—

Ms Keele : I said I would take it on notice.

CHAIR: Unfortunately, Senator, we'll have to stop at this one.

Senator HUMPHRIES: Sorry, I am not satisfied by that. There is the question of why you would want to suppress a media release.

Ms Keele : I hope I can satisfy you by taking it on notice.

Senator HUMPHRIES: I know that you have said that, Ms Keele, but my question still is why you could not commit to the committee right now to restore an announcement—

Ms Keele : Because I do not know.

Senator HUMPHRIES: which has been made by the Australia Council.

CHAIR: Ms Keele, you do not have to justify. You are taking it on notice. It is quite all right.

Senator HUMPHRIES: If you want to cover something up, that is fine, I don't mind.

CHAIR: Senator Humphries, you have asked the same question three or four times because you do not like the answer you get.

Senator HUMPHRIES: Indeed, I do not, because I am not satisfied.

CHAIR: I encourage you to move on.

Senator HUMPHRIES: Have you had much backlash from the arts community about the concept of the Australia Council taking over the touring art programs?

Ms Keele : No, the concern has been that they want us to understand what those programs do for the sector. They want us to be sure to understand what the depth of the program covers. So, for example, in Visions Australia, the concern is—and we are very open to having people explain this to us—that we understand that it is not just contemporary arts; that it is across heritage and objects as well. Actually people are fine. They know that this is the kind of work that we do and they are just keen to be part of it as we bring it into the Australia Council.

Senator HUMPHRIES: Was that change recommended by the review of the Australia Council?

Ms Keele : If I remember correctly what was recommended by the review was that we look at it.

CHAIR: Senator Humphries, for the purposes of moving on, we have a quarter of an hour for the rest, so I would ask you to put the rest on notice.

Ms Keele, I am going to give it a secret Steele squirrel—that means: 'Don't talk in the hallway. Goodnight.' Next we have National Gallery of Australia. Thank you, gentlemen