Funding for broadcasting represents the majority of recreation and culture outlays (see Chart 1).

Other activities in this function involving outlays include:

• managing Australia's cultural heritage through national collection institutions;
• direct financial assistance for the arts and other cultural activities including the film and television industries;
• assistance to sport and recreation activities;
• the operations of statutory authorities to manage and protect, amongst other places, the world heritage areas of Uluru-Kata Tjuta and Kakadu National Parks and the Great Barrier Reef; and
• joint management and funding arrangements for other world heritage areas in Tasmania and Queensland.

This function mainly includes outlays for the following portfolios:

• Communications and the Arts;
• Industry, Science and Tourism; and
• Environment.

Outlays for this function mainly arise from direct outlays by Commonwealth agencies. Other avenues of support include grants programmes, payments to the States (shown in Budget Paper No. 3) and taxation expenditures such as concessions on investments in new films under Division 10BA of the Income Tax Assessment Act 1936.

Over the period 1988-89 to 2001-02, the trends in outlays are primarily influenced by:

• the effect of one-off receipts in 1993-94 from the sale of satellite subscription television licences ($199 million), and receipts in 1994-95 from the sale of the Multipoint Distribution Service Licences ($100 million), which were partially offset by expenditure relating to the Creative Nation policy statement;
• the effect of reduced budget funding for the ABC in 1996-97 and 1997-98 onwards which is partly offset from 1998-99 by additional funding provided to the national broadcasters for digital conversion;
• the reduction in outlays since 1997-98 on the National Estate and Parks which primarily reflects a transfer of corporate functions from National Parks and Wildlife and the Australian Heritage Commission into the Department of the Environment;
• outlays for Sport and Recreation increase substantially in 1998-99 due to a number of Commonwealth initiatives to assist with the staging of the Olympic and Paralympic Games in 2000; and
• reduced budget funding for Sport and Recreation is expected from 2000-01 as two programmes run by the Australian Sports Commission, Maintaining the Momentum and the Olympic Athlete Preparation Programme, conclude in 1999-2000.

The majority of outlays on broadcasting are to fund the operating and capital needs of the Australian Broadcasting Corporation (ABC) and the Special Broadcasting Service (SBS) and national transmitting facilities.

The ABC's activities include domestic radio services, a national television network, and overseas broadcasting services.

The SBS operates a multilingual radio network and a multicultural television service.

National transmitting facilities are owned and operated by the Commonwealth for the delivery of ABC and SBS radio and television services and some regional commercial services. The Government is expected to sell the national transmission facilities in
1998-99.

The Australian Broadcasting Authority issues radio and television broadcast licences, and formulates and monitors broadcast standards.

Financial assistance is provided through the Australian Film Finance Corporation Limited, the Australian Film Commission and Film Australia Pty Limited.

Outlays are dominated by funding to the Australia Council and to Symphony Australia Holdings Pty Ltd. Other outlays include funding for the Australian National Opera, Orchestras and the Office of Australian War Graves.

These outlays fund administrative support for recreation and cultural activities, mainly through the Departments of Communications and the Arts, and the Environment.

The Commonwealth provides financial assistance to encourage community interest and participation in sport and recreational activities and to facilitate preparation for the Olympic Games by Australian athletes. The Australian Sports Commission, which incorporates the Australian Institute of Sport, promotes and facilitates the pursuit of excellence in sport, sports development and participation.

The Commonwealth is involved in the identification and protection of Australia's natural environment through arrangements such as the Register of the National Estate, management of national parks and world heritage listings. The Commonwealth discharges many of its management responsibilities through various statutory authorities and arrangements with the States.

Additional funding for the conservation, sustainable use and repair of Australia's natural environment is being provided through the Natural Heritage Trust which also relates to 7.4 Environment Protection and 10.7 Natural Resources Development and Management.