Report reveals levels of Indigenous expenditure

The 2012 Indigenous expenditure report was released on 4 September 2012. It is the second in a series of biennial reports, produced by a steering committee of senior officials, for the Council of Australian Governments (COAG).

The report estimates expenditure on services to Indigenous Australians in the 2010-11 financial year to be $25.4 billion, accounting for 5.6% of total direct general government expenditure.

The report showed that, on average, state, territory and federal governments spent $44,128 per head for Indigenous Australians, compared with $19,589 for other Australians (a ratio of 2.25:1). The $24,538 per person difference reflected the combined effects of:

• greater intensity of service use ($16,110 or 66%) - Indigenous Australians use more services per capita because of greater need, and because of population characteristics such as the younger age profile of the Indigenous population
• additional costs of providing services ($8,429 or 34%) - it can cost more to provide services to Indigenous Australians (for example, because of location), or if Indigenous Australians receive targeted services (for example, liaison officers in hospitals).

The report includes a number of focus areas of expenditure. In selected areas, the ratio of Indigenous to non-Indigenous expenditure per head of population was:

• school education - 2.99:1 ($5,359 per Indigenous Australian compared with $1,792 per non-Indigenous Australian), mainly reflecting higher per capita use of school services, driven by the younger age profile of the Indigenous population
• public and community health services - 4.89:1 ($3,152 per Indigenous Australian compared with $644 per non-Indigenous Australian), mainly reflecting higher per capita use of health services, driven by the poorer health status of Indigenous Australians
• housing - 4.85:1 ($1,708 per Indigenous Australian compared with $352 per non-Indigenous Australian), mainly reflecting higher per capita use of social housing by Indigenous Australians, driven by socio-economic disadvantage.

The report will assist policy makers address the gap between outcomes for Indigenous and other Australians, by contributing to the information available.

Source: Australian Government

Contacts

Productivity Commission
Background information:
Lawrence McDonald
Head of Secretariat
Ph: (03) 9653 2178
Mobile: 0421 584 905
Other information:
Clair Angel
Media and Publications
Ph: (02) 6240 3239
Mobile: 0417 665 443

Links

• View report: 2012 Indigenous expenditure report
• View information: 2012 Indigenous expenditure report
• View news item: 2012 Indigenous expenditure report
• View website: Government Service Provision