Australian Politics and Policy - Senior, 2019a

Australian Politics and Policy
big, traditional departments that implement government policies in areas like
immigration, transport, the environment and so on, through to ‘corporations’
controlledbygovernmentsbutlargelymanagedonacommercialbasis.
The core public sector consists of departments and agencies that are under direct
ministerial control. They are mainly financed by taxation, which they redistribute
through subsidies, grants and welfare payments. They may also provide a range of
services directly and free of charge (e.g. defence, education, health) or at prices well
below what the commercial market would charge (e.g. subsidised housing). 6
Governments may also set up semi-autonomous statutory agencies and corporations
for reasons of efficiency, to drive innovative delivery or because the agency
needs to be able to make decisions free of ministerial intervention (such as the
Australian Taxation Office, the Australian Competition and Consumer Commission
or state government environment protection agencies). In practice, statutory
agencies are still subject to political and financial control by the government of the
day because they depend on the government for their resources, their governing
legislation can always be repealed or amended and individuals who fill statutory
offices are usually appointed by the government. 7
Public corporations are agencies that operate independently of government and
may have their own sources of revenue in addition to direct public funding. They
may compete in private markets and make profits. Public corporations include the
Reserve Bank, Australia Post, the National Broadband Network, state government
housing schemes and state-owned bodies that operate power and water supplies. 8
Any neat delineation between the public and private sectors is challenged by
increasing collaboration between governments, the private sector and the not-forprofit
sector 9 in designing and delivering goods and services. Australian governments
have a long history of relying on the not-for-profit sector, and in some cases
the private sector, to assist with the provision of services and to contribute to their
design. Governments partner with the not-for-profit sector for the delivery of a
range of community, employment, education, health and other services through
contracted networks.
Since 2000, governments have shifted towards this mode of delivering services.
As a result, total government funding for the not-for-profit sector has increased
significantly since 2000. Almost half (46 per cent) of Commonwealth and state/
territory government agencies surveyed in 2010 reported that not-for-profit
organisations made up three-quarters or more of the external organisations
providing services on their behalf. 10
6 ABS 2015.
7 Goldring 1980, 355.
8 ABS 2015; United Nations et al. 2009.
9 That is, organisations that are neither commercial nor government bodies, do not earn profits
for their members and perform a range of charitable purposes.
10 Productivity Commission 2010, 300.
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