Department of the Premier and Cabinet, $508,394,000

Administered Items for the Department of the Premier and Cabinet, $27,324,000

Minister:

Hon. A. Michaels, Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts.

Membership:

Mr Pederick substituted for Mr Teague.

Departmental Advisers:

Mr W. Hunter, Chief Operating Officer, Department of the Premier and Cabinet.

Ms C. Hodgetts, Director, Finance and Procurement, Department of the Premier and Cabinet.

Mr B. Brine, Director, Governance, Projects and Grants, Department of the Premier and Cabinet.

The CHAIR: The portfolio is CreateSA, and the minister appearing is the Minister for Arts. I declare the proposed payments open for examination. I call on the minister to make an opening statement, if she so wishes, and to introduce her new advisers.

The Hon. A. MICHAELS: I will make some introductions, Chair. On my left I have Mr Wayne Hunter, Chief Operating Officer, DPC; and Mr Billy Brine, Director of Governance, Projects and Grants, DPC. On my right I have Ms Claire Hodgetts, Director of Finance and Procurement, DPC. I want to thank them and the CreateSA team again for all the work they have done in preparing for estimates and for all the work that has been done in the past year. It has been a big year for arts, culture and creativity with the launch of our cultural policy on the very last day of March this year.

The CHAIR: Thank you, minister. Member for Bragg, do you want to make an opening statement—do you want to wax lyrical about the arts?

Mr BATTY: Instead, I might read the omnibus questions:

1. For each department and agency reporting to the minister, how many executive appointments have been made since 1 July 2024 and what is the annual salary and total employment cost for each position?

2. For each department and agency reporting to the minister, how many executive positions have been abolished since 1 July 2024 and what was the annual salary and total employment cost for each position?

3. For each department and agency reporting to the minister, what has been the total cost of executive position terminations since 1 July 2024?

4. For each department and agency reporting to the minister, will the minister provide a breakdown of expenditure on consultants and contractors with a total estimated cost above $10,000 engaged since 1 July 2024, listing the name of the consultant, contractor or service supplier, the method of appointment, the reason for the engagement and the estimated total cost of the work?

5. For each department and agency reporting to the minister, will the minister provide an estimate of the total cost to be incurred in 2025-26 for consultants and contractors, and for each case in which a consultant or contractor has already been engaged at a total estimated cost above $10,000, the name of the consultant or contractor, the method of appointment, the reason for the engagement and the total estimated cost?

6. For each department or agency reporting to the minister, how many surplus employees are there in June 2025, and for each surplus employee, what is the title or classification of the position and the total annual employment cost?

7. For each department and agency reporting to the minister, what is the number of executive staff to be cut to meet the government's commitment to reduce spending on the employment of executive staff and, for each position to be cut, its classification, total remuneration cost and the date by which the position will be cut?

8. For each department and agency reporting to the minister, what savings targets have been set for 2025-26 and each year of the forward estimates, and what is the estimated FTE impact of these measures?

9. For each department and agency reporting to the minister:

(a) What was the actual FTE count at June 2025 and what is the projected actual FTE account for the end of each year of the forward estimates?

(b) What is the budgeted total employment cost for each year of the forward estimates?

(c) How many targeted voluntary separation packages are estimated to be required to meet budget targets over the forward estimates and what is their estimated cost?

10. For each department and agency reporting to the minister, how much is budgeted to be spent on goods and services for 2025-26 and for each year of the forward estimates?

11. For each department and agency reporting to the minister, how many FTEs are budgeted to provide communication and promotion activities in 2025-26 and each year of the forward estimates and what is their estimated employment cost?

12. For each department and agency reporting to the minister, what is the total budgeted cost of government-paid advertising, including campaigns, across all mediums in 2025-26?

13. For each department and agency reporting to the minister, please provide for each individual investing expenditure project administered, the name, total estimated expenditure, actual expenditure incurred to June 2024 and budgeted expenditure for 2025-26, 2026-27 and 2027-28.

14. For each grant program or fund the minister is responsible for, please provide the following information for the 2025-26, 2026-27 and 2027-28 financial years:

(a) Name of the program or fund;

(b) The purpose of the program or fund;

(c) Budgeted payments into the program or fund;

(d) Budgeted expenditure from the program or fund; and

(e) Details, including the value and beneficiary, or any commitments already made to be funded from the program or fund.

15. For each department and agency reporting to the minister:

(a) Is the agency confident that you will meet your expenditure targets in 2025-26? Have any budget decisions been made between the delivery of the budget on 5 June 2025 and today that might impact on the numbers presented in the budget papers which we are examining today?

(b) Are you expecting any reallocations across your agencies' budget lines during 2025-26; if so, what is the nature of the reallocation?

16. For each department and agency reporting to the minister:

(a) What South Australian businesses will be used in procurement for your agencies in 2025-26?

(b) What percentage of total procurement spend for your agencies does this represent?

(c) How does this compare to last year?

17. What percentage of your department's budget has been allocated for the management of remote work infrastructure, including digital tools, cybersecurity, and support services, and how does this compare with previous years?

18. How many procurements have been undertaken by the department this FY. How many have been awarded to interstate businesses? How many of those were signed off by the CE?

19. How many contractor invoices were paid by the department directly this FY? How many and what percentage were paid within 15 days, and how many and what percentage were paid outside of 15 days?

20. How many and what percentage of staff who undertake procurement activities have undertaken training on participation policies and local industry participants this FY?

I might begin with Budget Paper 5, page 57, a couple of new measures in this portfolio. On page 57, we have the arts and cultural policy. This is $13 million over four years to deliver A Place to Create. When you announced this policy on 31 March, you said it would be supported by an initial investment of more than $80 million. This is providing for $13 million. Where is the other $67 million?

The Hon. A. MICHAELS: I am happy to answer that question for the member. When we launched that policy, A Place to Create—I am not sure if the member was there or has read it, I am sure he has read it—certainly a lot of work went into preparing that policy. It is a 10-year policy. We are going to implement it through short-term delivery plans, so on the day we launched the policy, we also launched the 2025-26 delivery plan. What we have as key pillars of that policy are around strengthening communities, enlivening places and connecting us through arts, culture and creativity.

What we will be doing is implementing the key strategies that feed into those pillars, so arts, culture and creativity for everyone, thriving artists and creatives, and we want to have robust arts organisations, creative businesses and cultural institutions. As the member mentioned, there was an announcement of an initial $80 million investment to support all of those pillars and those strategies.

Some of the highlights for the member include more than $15 million going to the Art Gallery of South Australia to deliver world-class programs including through our new Winter Art Series, which is exciting for the Art Gallery and something they have been really keen on for quite some time, so that will certainly help them to build on their audience, and attract new audiences, having that consistent Winter Art Series that they can now count on. We have $3 million to build the international profile of south Australia's arts, culture and creative industries through showcasing our creative capabilities around the world.

We have more than $2½ million to kickstart opportunities for children and young people to develop their creativity. This is something I am particularly keen on. I think the value of arts for young people cannot be underestimated and, through that investment of $2½ million, we are supporting Adelaide Youth Orchestras and Carclew, and there is funding for a new children's experience at the State Library of South Australia that is part of the Words Grow Minds program. It is really exciting to be able to make that investment in the State Library as well.

We have more than $1 million to boost philanthropic opportunities and create private investment to strengthen the sector. We have dollar-for-dollar matching programs, including one that we have already mentioned publicly with the Adelaide Festival. We have more than a million dollars to increase grant programs to support our arts organisations, and we are really aiming to create new and original work by South Australian artists and creatives.

We have more than $2.3 million to be invested in our First Nations arts and culture in South Australia, and $1.65 million to increase existing programs through the Music Development Office. The Music Development Office is currently and will be looking at their strategic plan off the back of A Place to Create, and working out the appropriate allocation for that. We have more than $500 million in enlivening our regions with arts, culture and creativity through programs delivered by Country Arts. That is a range of what is available.

Where we get to that $80 million is that we have $68 million coming from existing funds. We had the Arts Investment Fund, which I am sure the member is aware of, that was announced in the 2024-25 state budget and was $26 million. We had funding for the State Theatre, State Opera, Country Arts accommodation space which was $19 million. The total for the SAFC ABC pipeline from its inception was some $15 million. We have the Art Gallery money and a range of other investments.

There is $13 million of new money that is in this budget. We have allocated $6.8 million already for our first two-year delivery plan, which I mentioned, around the country arts programming, around increasing those grants to support arts organisations to create new work. There is a million dollars from that new money going to First Nations arts and culture. We have youth initiatives: $560,000 going to our youth arts initiatives, including Carclew. We also have the music money of $6.2 million left to be allocated through the next delivery plan in 2027-28 and 2028-29.

There has certainly been significant investment, I would say, since we came into government. It has probably gone a little unnoticed but there has been over $160 million of new investment in arts since we came into government, and that is substantial. I am really proud of that and I am really proud of the work that we did in the cultural policy. I think that sets us up to be in a good place in the years to come.

Mr BATTY: So the $80 million in the press release is just a grab bag of previous announcements in the arts portfolio of spending over the past few years?

The Hon. A. MICHAELS: No, that is not past spending in the past few years. This is money that has come out of the cultural policy and those delivery plans.

Mr BATTY: But it is money that was allocated before the cultural policy existed. The cultural policy was announced in March this year with a press release saying you were going to spend $80 million but the—

The Hon. A. MICHAELS: And we are going to spend $80 million.

Mr BATTY: —Arts Investment Fund, for example, was in last year's budget.

The Hon. A. MICHAELS: Yes.

Mr BATTY: So is the $80 million headline figure just a collection of spending previously rather than new money attached to the cultural policy?

The Hon. A. MICHAELS: That $80 million is spending that is targeted at delivering the cultural policy over the next few years.

Mr BATTY: Do you think it was misleading to say in your media release that there would be an initial investment of more than $80 million when there is only $13 million in this budget?

The Hon. A. MICHAELS: Not at all because we said at the time there was $13 million of new money.

Mr BATTY: You did not say that in your press release.

The Hon. A. MICHAELS: If you were at my speech, I said it in that.

Mr BATTY: I am not sure I was invited.

The Hon. A. MICHAELS: I am sure I could get you a video of it.

Mr BATTY: I will have to check the video. I think a lot of people have tried to undertake the task of adding together all of the numbers in your press release and figuring out how you arrived at the $80 million, but that clarity you have just provided is useful. Perhaps if we stick just to the $13 million of new money then, can you provide a breakdown of how that will be spent?

The Hon. A. MICHAELS: I can. With the $13 million of new money, we have $6.8 million allocated, as I said, to the first two-year delivery plan; and $6.2 million is to be allocated in the next delivery plan, as I said. If you want, again, a breakdown of that $6.8 million, we have $610,000 to enliven regions with arts, culture and creativity through programs delivered by Country Arts. We have more than a million dollars to increase grant programs to support arts organisations and the creation of new original work by South Australian artists and creatives.

We have $1 million in First Nations arts and culture, including grants to support cultural hubs and to establish and support First Nations-controlled arts organisations, and additional funding that will go into the Aboriginal and Torres Strait Islander Arts Strategy that we have continued to support. It was implemented by the former government and we have continued to support that.

As I said, $560,000 is going to youth arts initiatives, including through Carclew. There is $1.65 million going to increasing existing programs and initiatives to support original local music and live music venues through the Music Development Office and to deepen the impact of Adelaide's designation of the City of Music in the UNESCO Creative Cities Network. As I said, $6.2 million will be allocated for the next delivery plan.

Mr BATTY: I could not write quite quick enough, but does everything you just listed add up to the $6.8 million in the first two-year delivery plan?

The Hon. A. MICHAELS: There are additional that I have not listed, I think. There are some smaller items other than those headline items. Where we are able to provide that we will, but, certainly, that is a significant investment into arts going forward over the next couple of years to support our very important arts, culture and creative industry sectors in South Australia.

Mr BATTY: One of the initiatives in the media release, which you might have mentioned earlier, was $1.5 million to the Music Development Office. Are you able to provide a breakdown of how and when that money will be spent?

The Hon. A. MICHAELS: As I said, the Music Development Office is at the moment going through a process to look at their strategic planning, to speak to A Place to Create. There has been an addition to their allocation of what is now $1.65 million supporting music through the Music Development Office. They will allocate that accordingly once they do that strategic planning.

Mr BATTY: How much of the government's $10 million live music support package announced in 2022 has been spent?

The Hon. A. MICHAELS: Of what was in the arts budget line, which was the $5 million, I think we have almost completely spent that. I think, from memory, it might be $147,000 remaining of the See it LIVE funding in the arts budget line and we expect to spend that in the 2024-25 financial year.

Mr BATTY: Excuse my ignorance, but there is $5 million in another agency as part of that package?

The Hon. A. MICHAELS: That remained with the Department of Treasury and Finance. That was, I guess, the COVID insurance fund that was not spent. That was not an arts budget line. We have spent our almost $5 million. As I said, we have $147,000 left to spend, which we will spend in this current financial year.

Mr BATTY: Will the $5 million remaining with Treasury be spent in the arts portfolio or indeed on live music?

The Hon. A. MICHAELS: It is a Treasury budget line. You might want to ask the Treasurer that.

Mr BATTY: Have you requested the Treasurer for additional funding for the arts portfolio, given that money has not been spent?

The Hon. A. MICHAELS: Obviously, I have because I got $13 million in this budget. So yes, I have requested—

Mr BATTY: Is that in lieu of the $5 million sitting in the Treasurer's—

The Hon. A. MICHAELS: No, that is totally separate; that has always been with Treasury before the COVID—

Mr BATTY: Have you asked for the $5 million for additional funding on live music, given it was a $10 million live music package and only $5 million has been spent?

The Hon. A. MICHAELS: The money that was to be spent by Arts to support live music was $5 million, and we have largely entirely spent that money. As I said, $147,000 is left.

Mr BATTY: But what about the rest?

The Hon. A. MICHAELS: That is not in my budget line.

Mr BATTY: Have you asked for it?

The Hon. A. MICHAELS: I have asked for additional funding for Arts and we have an additional brand new $13 million, which is part of $160 million of new money that has gone into the arts since we came into government.

Mr BATTY: Another measure in that media release was $4 million to the Adelaide Central School of Art. I think you have since clarified that is the transfer of land to the school of art. When will that land be transferred?

The Hon. A. MICHAELS: As the member might know, I—or whoever the relevant minister of arts is at the time—own the land that is part of that Glenside precinct. There is a memorandum of lease between me as the arts minister and the Central School of Art. They had a first right to develop that Erindale building. One of the conditions of that lease was for them to secure funding and approvals, which I am very pleased they were able to do. In January of this year they were notified by the federal government that they are to receive $6.954 million. That was approved under the commonwealth's Urban Precincts and Partnerships Program to redevelop Erindale.

The minister at that time, Catherine King, came down to make that announcement. It was very greatly appreciated by the Central School of Art and, as you mentioned, in terms of the state government that land was valued by the Central School of Art in their submission for the Urban Precincts and Partnership Program that they made to the federal government at $4 million, so it is an in-kind contribution to make sure they are able to make that investment. It will be an excellent precinct once it is up and running.

Mr BATTY: Absolutely, it is very welcome. I have been advocating for it for some time. I am just interested in what you describe as the $4 million contribution to transform the Adelaide Central School of Art. Will the title be transferred to the art school?

The Hon. A. MICHAELS: It is a lease and that is the value of the lease that the Central School of Art have put on there.

Mr BATTY: Were they not leasing it before that time? Did they not have access to Erindale?

The Hon. A. MICHAELS: They have an option. I have extended that option and previous ministers for arts have extended that option to give them time to get the funding. They now have that funding, they are exercising that option and those arrangements will be finalised in due course. As I said, we extended that option. They will have a long-term lease in place, and they will make that investment with the support of the commonwealth government.

Mr BATTY: What was the total cost of rebranding Arts SA to CreateSA?

The Hon. A. MICHAELS: I think it was relatively modest. The cost of rebranding was across two financial years—2023-24 and 2024-25. It is about $64,000, which included the brand logo, brand guidelines, digital assets, templates, the website, creative and trademark. That rebranding process was led internally with existing CreateSA staff. No additional staff were undertaken to do that. We used a South Australian business to do that creative work source, which you might have known as Black Sheep Advertising in its former days.

What was really important about rebranding CreateSA and talking to our cultural policy is, as you would be aware, we had the creative industries people formerly sitting in what was the Department for Industry, Innovation and Science and we have brought them over into a full creative CreateSA, which was Arts SA. So we have moulded those together. We have one united portfolio, which is speaking to one long-term cultural policy, which is really quite ambitious. There was that rebranding cost, but quite modest and using a South Australian business.

Mr BATTY: Why did we need to do it? We could have brought them together, presumably, without spending $64,000 to rename the agency.

The Hon. A. MICHAELS: It was a really important part of the policy. A really important part of the work that CreateSA does is to be united, to not just attach people to what was already existing. We are talking about a long-term policy that is focused on arts, culture and creative industries. We did some work on what that might look like through pretty extensive consultation.

I think that rebrand to reflect a united arts, culture and creative industries team into one portfolio, to have that renewed purpose that came out of the cultural policy work, was and is really important. It helps CreateSA lead that strategic piece through all of those areas—arts and creative industries—making sure we are a thriving cultural destination. I think it is something that has gone down particularly well, to be able to have that united rebranded portfolio.

Mr BATTY: Do you have a breakdown of what the $64,000 was spent on?

The Hon. A. MICHAELS: If we are able to, we will take that on notice and provide you with any breakdown, but as I said, what it includes in that $64,000 is the development of the brand and the logo, the guidelines, the digital assets, the templates, the website, and the creative and trademark work that went with that. In terms of specific breakdowns, we might be able to provide that on notice.

Mr BATTY: Did the minister commission an artwork to represent and embody the mission of her new arts policy?

The Hon. A. MICHAELS: I did not commission that work. I think CreateSA has done some work with an artist for that cultural policy work, which I can give you some details of. Within the cost of developing the process, $13,777 was spent to develop the artwork to represent the vision of the policy. That was undertaken by CreateSA. We engaged another South Australian business, Ochre Dawn. I am not sure if you know Rebecca Wessels, but she is certainly a very highly regarded entrepreneur with her First Nations business, Ochre Dawn.

They are 100 per cent Aboriginal owned and operated, and their artworks are created by First Nations artists and ethically sourced. The final artwork was done by a Ngarrindjeri artist, Jordan Lovegrove, and is said to embody the mission of the policy to enrich South Australia's future through arts, culture and creativity. The artwork includes the design motifs that have been integrated throughout the policy and the delivery plan documents. So yes, we are very pleased to be able to support a local artist and a local South Australian business for a very moderate sum to create that artwork.

Mr BATTY: For what reason does the government need an artwork to embody the mission of their new policy?

The Hon. A. MICHAELS: Because we are the arts portfolio and we like to support our local artists.

Mr BATTY: Will you be creating any other artwork to embody the mission of any other arts policies?

The Hon. A. MICHAELS: This is a 10-year policy. I am pretty sure I will not be around in 10 years' time to make that decision—or I might be.

Mr BATTY: We will see. Where is the artwork? Is there a plan to display it?

The Hon. A. MICHAELS: You can see it on the cover of the policy. I do not have a copy with me.

Mr BATTY: Is it a physical piece of art as well, or is it just a digital asset?

The Hon. A. MICHAELS: It is a digital asset created by Jordan that has been used for the policy and the website. It does include the ongoing licence fee, so we can use that in different digital publications and in print as well.

Mr BATTY: What plans does the minister have to use the artwork? Where are you going to deploy the asset, other than in the policy document itself?

The Hon. A. MICHAELS: Throughout all the work that CreateSA does that will be a core pillar of how we present ourselves publicly. Through the website and any other work that gets done from here on—in terms of future delivery plans, I am sure we will use that artwork.

Mr BATTY: I might move to a new budget paper: Budget Paper 4, Volume 4, page 15, and the investing expenditure summary. Just briefly on the cultural institutions collection storage, when will this project finally be complete?

The Hon. A. MICHAELS: I will be very pleased when this is finally completed. It is on track. We had early works commencing on the site in August last year, and main construction commenced in October last year. Practical completion is, I am advised, on schedule for completion in December this year, and relocations will happen from those cultural institutions by June 2026. That work, following some rescoping work to make sure it is achieving its desired intention, is now on track to be completed and for our institutions to move their items into that facility.

Mr BATTY: What has been the impact of the rescoping in terms of the collections of the institutions? Are there certain parts of those collections that now will not be stored in this facility?

The Hon. A. MICHAELS: There was a decision made some time ago. There is a project steering committee which is chaired by DPC, but all the stakeholders are represented on the committee; the Art Gallery, Museum, State Library, the History Trust and Artlab all have representatives on that committee. They were doing that rescoping work, and we are in a pretty good place now with that final design.

There was a decision made to retain, I think, the Netley 262 facility, the southern storage facility that AGSA has. There are some still at North Terrace, and that was a decision of the steering committee, to retain some of those premises. Where we do have to move out, in terms of the Netley facility, that will be facilitated and undertaken before the expiry of those leases in the middle of next year.

Mr BATTY: Do we know what the ongoing costs will be for the alternative accommodation for those parts of the collections that cannot move to the new facility?

The Hon. A. MICHAELS: I am advised that it is within existing budgets, the existing budget for the rent for Netley 262. AGSA owns the southern store, so that has been dealt with as well.

Mr BATTY: Are the parts of the collections that are moving scheduled to be moved before the leases expire at their current housing?

The Hon. A. MICHAELS: Yes; that is the intention.

Mr BATTY: When do those leases expire?

The Hon. A. MICHAELS: The expiry date for the lease is 10 June 2026, the commercial part.

Mr BATTY: When do you anticipate the move of the collection to be complete?

The Hon. A. MICHAELS: When practical completion is undertaken and, I guess, when we receive the keys to the storage facility in December, those institutions will start moving their collections over the next six months from that completion date.

Mr BATTY: When will that move be completed?

The Hon. A. MICHAELS: Before 10 June 2026, but I do not have any further—

Mr BATTY: Perhaps 9 June 2026? On the same page is Tarrkarri. When will a decision be made regarding Tarrkarri's future?

The Hon. A. MICHAELS: I think the member is aware—I have said it publicly and so has the Premier—that that funding is within the Lot Fourteen funding. I think the Premier has also said before it is something we are certainly committed to work on. For any further information I think you should ask the Premier.

Mr BATTY: So the Minister for Arts has no responsibility for a proposed major arts and cultural centre?

The Hon. A. MICHAELS: It has been—including under the former government, I believe—within the Lot Fourteen responsibility that sits under the Premier.

Mr BATTY: I think the former Premier was also the arts minister. Does anyone in CreateSA work on this project?

The Hon. A. MICHAELS: No.

Mr BATTY: No-one in your department or your agency works on Tarrkarri?

The Hon. A. MICHAELS: Not within CreateSA. Obviously, they sit within DPC and there are DPC people working on that.

Mr BATTY: Have you, as Minister for Arts, been involved in any discussions with philanthropists, businesses or private partners with respect to Tarrkarri?

The Hon. A. MICHAELS: No. This is something that the Premier is really passionate about, and he has taken the leadership on those discussions.

Mr BATTY: You have not been privy to any of those discussions?

The Hon. A. MICHAELS: No.

Mr BATTY: I will move on to another page, page 29 of the Agency Statement, and the line item 'Grants and subsidies', which is a line item that I will rely on for a lot of my questions going forward. Sticking to the general first—

The Hon. A. MICHAELS: Sorry, are you referring to 'Grants and subsidies' in income or expenses?

Mr BATTY: Expenses. This year, the estimated result is $156 million, whereas the budget for next year is $139 million. Are we spending less on arts grants in the coming year, and why is this the case given we are launching the new cultural policy?

The Hon. A. MICHAELS: Some of the difference between the actual for 2024-25 and 2025-26 is money that was spent in this year that will not continue to be spent in the following year. For example, the funding for the Heysen gallery was part of the Adelaide City Deal; that is $3 million that does not need to be spent anymore. We have some money that was spent on the western plaza upgrade works at the Festival Centre. Again, that has been done and does not need to continue to be spent. There was a contribution that came from Creative Australia for a partnership between Carclew and The Mill that was only for the 2024-25 year. There are a few other smaller bits and pieces in that difference.

Mr BATTY: But notwithstanding launching the new cultural policy with an apparent $80 million investment, we will be spending less this coming year on arts grants than in the previous year?

The Hon. A. MICHAELS: Projects like the Heysen gallery, City Deal money for Carrick Hill—that might have ended, I am not sure—those sorts of projects have been completed.

Mr BATTY: I would like to ask some questions about the South Australian Museum. What was the annual operating grant for the South Australian Museum this year?

The Hon. A. MICHAELS: I will provide that to you. For this year, there was an operating grant of $13.57 million.

Mr BATTY: That is the year that is about to end?

The Hon. A. MICHAELS: Yes, 2024-25.

Mr BATTY: Have the Museum been informed what their operating grant will be for the coming year?

The Hon. A. MICHAELS: Yes, they have been.

Mr BATTY: What is that number?

The Hon. A. MICHAELS: $11.454 million.

Mr BATTY: So the Museum is having their budget slashed by over $1 million.

The Hon. A. MICHAELS: No, they are not having their budget slashed.

Mr BATTY: By nearly $2 million.

The Hon. A. MICHAELS: There were additional items allocated in 2024-25, for example, $1.5 million that was allocated to assist the Museum in their operations this year off the back of the Premier's review. There were a number of other items that supported the Museum this year. I can tell you their base-level funding is going up. The base-level funding, taking away the additional funding adjustments for extra projects, was $10,468,000 in the 2024-25 year. That is going up to $11,454,000 in the 2025-26 year in terms of the base-level operating grant.

Mr BATTY: But the Museum's operating grant last year was $13.5 million, and this coming year you have just written them a letter saying it will be $11.4 million, so there is a $2 million reduction in the operating grant for the South Australian Museum.

The Hon. A. MICHAELS: Yes, but that includes the project funding that was available this year. That is time-limited project funding that is not available in future years.

Mr BATTY: What was that project funding for?

The Hon. A. MICHAELS: As I said, there was the additional assistance provided by the government of $1.5 million for their operations.

Mr BATTY: What does that mean? Do they not need that this year as well?

The Hon. A. MICHAELS: They will work within their $11.45 million operating grant for this future year, 2025-26. Some of those other differences, for example, included an air handling unit replacement—air conditioning—that was $91,000. Gas suppression tanks were allocated an additional $52,000, so there were other amounts in terms of project money that, as I said, were time-limited. Their base funding is actually going up by $1 million.

Mr BATTY: With the operating grant dropping by $2 million, will there be any job losses?

The Hon. A. MICHAELS: It is not the operating grant. The base level operating grant that assists their operations is $10.468 million in 2024-25. In 2025-26, it is going up to $11.454 million.

Mr BATTY: But when I first asked you the question about what the annual operating grant has been for the year just ended, you said it was $13.57 million.

The Hon. A. MICHAELS: The operating grant adjusted for the 2024-25 year, which includes those project amounts, was $13.57 million.

Mr BATTY: It is very confusing, but the headline is they are getting $2 million less out of the government this coming year than they did last year.

The Hon. A. MICHAELS: I would dispute that in terms of ongoing funding.

Mr BATTY: What do you mean you would dispute it?

The Hon. A. MICHAELS: I say again, the operating grant, as per the grant agreement, without the additional time-limited projects, is $10,468,000 for 2024-25. For 2025-26, the base level operating grant goes up to $11,454,000. Of course, when we did the Premier's review and announced that, they got an additional $4.1 million of funding through that. That supports them in work they are going to do to implement the Premier's review recommendations.

Mr BATTY: Will there be any job losses at the Museum over the coming year?

The Hon. A. MICHAELS: We are certainly not forecasting any job losses that we are aware of—certainly not.

Mr BATTY: How was the additional money that was given to the Museum actually spent, the bit that was supporting the Premier's review?

The Hon. A. MICHAELS: Of the $4.1 million that was announced for the Premier's review, $2.8 million is to assist the Museum in its operations; $300,000 is supporting the marketing of the Galloway Hoard exhibition—I do not know if the member has seen that; and $1 million was allocated to support the Museum developing the strategy piece that was part of the recommendations coming from the Premier's review.

Mr BATTY: Is there any funding in this budget allocated to implementing the new strategic vision coming out of the Premier's review?

The Hon. A. MICHAELS: Yes, there is additional money allocated in this year's budget as well.

Mr BATTY: Is that reflected in the $11.45 million you referred to earlier?

The Hon. A. MICHAELS: It will be in addition to the base operating grant.

Mr BATTY: Can the minister provide an update on the recruitment of a new director of the Museum?

The Hon. A. MICHAELS: That process is, I suspect, nearing the end. Mr Hunter might be able to add anything, but I think that process is nearing the end and we will be able to make announcements pretty shortly, I suspect. Can I just add to that: I want to thank Clare Mockler, who stepped in as acting director for a period of time. She has done an excellent job there and I know CreateSA will welcome her back with open arms.

Mr BATTY: Is Ms Mockler actually serving in dual capacities at the moment, or is there an interim director of CreateSA?

The Hon. A. MICHAELS: She is not serving in dual capacities. She is fully dedicated to being the acting director of the Museum at this point.

Mr BATTY: So who is in charge of CreateSA?

The Hon. A. MICHAELS: I would say Mr Hunter.

Mr BATTY: You would say? Okay. On the same budget line but a different topic, the Arts Investment Fund: how much of the fund was spent over the last year, who were the successful recipients of grants from the fund and what was the purpose of those grants?

The Hon. A. MICHAELS: The initiatives supported to date out of the Arts Investment Fund are:

the Carrick Hill revitalisation project, for which $332,000 has been allocated in the 2024-25 financial year to support the development of a holistic road map for the delivery of a vision for Carrick Hill as a nationally and globally significant cultural tourism destination;

the Libraries Board has been successful with $2 million over two years, 2024-25 and 2025-26, to establish an interactive experience for young children, promoting early literacy and diverse stories and supporting key themes out of the Words Grow Minds early childhood program initiative;

the Art Gallery has been successful with $2.5 million in 2024-25 and $2.5 million in 2025-26 to support their audience experiences, strategic business development and master planning for infrastructure and visitor experience;

we are working towards incentivising public donations through dollar-for-dollar matched funding campaigns—Country Arts, Adelaide Festival and State Opera have all been successful in that, and that is $1.5 million dollars from the investment fund from 2024-25 through to 2026-27; and

the Jam Factory has been successful with an artist employment strategy, and that is $900,000 over three years from 2025-26 through to 2027-28 to support the implementation of an artist employment strategy, increasing Jam Factory's capacity to generate commercial revenue through the employment of South Australian artists, designers and makers, and including a really exciting annual scholarship for First Nations artists to undertake the associate training program at the Jam Factory.

On top of that, $3.8 million was allocated to the Museum to support the Premier's review recommendations, and $780,000 was allocated to Tandanya in 2023-24 for some of the building works to support the reopening of that building.

Mr BATTY: So the $3.8 million for the Museum came from the Arts Investment Fund?

The Hon. A. MICHAELS: Yes.

Mr BATTY: How many applications were there for grants from the fund?

The Hon. A. MICHAELS: Approximately 15.

Mr BATTY: Again, I did not write down everything you just said, but how many of those applications were successful?

The Hon. A. MICHAELS: Nine.

Mr BATTY: Who could apply for those grants? What is the eligibility criteria?

The Hon. A. MICHAELS: What we are looking for is expressions of interest for ideas that demonstrate a strategic investment, so we are really looking at where there is collaboration between organisations and where there is an innovative business idea. We want to make sure that there is leveraging of additional investment; that is an important criterion. Some of those, such as the dollar-for-dollar matching, really talk to that. We want to use the investment fund for building the long-term sustainability of the arts sector. Again, that is around collaborations and boosting productivity. Those are the sorts of things that the Arts Investment Fund committee is looking at when they assess those applications.

Mr BATTY: Is the grants scheme only open to statutory authorities and major organisations?

The Hon. A. MICHAELS: Initially, in the first couple of years, it has been focused on those organisations. We will undertake a grants review, a funding review, that was specified in the 2025-26 and 2026-27 delivery plan that came out with the cultural policy. We will then reassess that after the grants and funding review work is done.

Mr BATTY: Why was the decision made to open this scheme just to statutory authorities and major organisations?

The Hon. A. MICHAELS: What we really wanted to do is use that funding, as I said, to look at innovative business approaches and look at long-term sustainability. It was important, and with some of those applications they happened to be that—and we are certainly keen to support our statutory authorities.

Mr BATTY: Who is the decision-maker on who receives grants from this fund?

The Hon. A. MICHAELS: There is an Arts Investment Fund committee. They are responsible for assessing, prioritising and making the recommendations for the fund. Those decisions are made by Mr Hunter, Ms Clare Mockler and the director of social policy within DPC. They are the three representatives on that committee.

Mr BATTY: What are the assessment criteria?

The Hon. A. MICHAELS: The investment principles are around strategic alignment so that it supports government and organisational priorities, innovation and collaboration—we want to see that the investment drives innovation—enhances productivity; builds capacity; and promotes collaboration across the arts, culture and creative industries sector. In terms of visibility, we want to ensure the investment raises the profile and accessibility of the sector locally and globally. In terms of benefits, we want to see that the investment delivers significant value to the South Australian government, to the community and to the sector.

I have mentioned resource leveraging, where the investment attracts or leverages additional financial or operational support to enhance its overall impact. Regarding value for money, the investment needs to deliver value for money through cultural and community outcomes, efficiencies, increased commercial outcomes or measurable economic return. In terms of feasibility, the investment needs to be practical, able to be completed within a specified timeframe, and on budget.

Mr BATTY: I refer to the same budget line but a different topic: the Artists at Work Taskforce. When did the task force provide the minister with its report?

The Hon. A. MICHAELS: The final report was submitted in October 2024 after some substantial work. The task force was established in March 2024. Obviously, it was an election commitment. I want to thank Nick Linke, who was the final chair (he took over from Alison Lloydd-Wright) and all the members of the task force. There was certainly a lot of work that was done. The task force has made 25 recommendations and about 40 subrecommendations. Many of those are directed to the government as a whole, rather than just to the arts portfolio. They also include recommendations that are within the remit of the federal government.

Since we received that report in October, DPC has consulted across government to work on developing the South Australian government's response to those recommendations. I certainly look forward to being able to finalise that and releasing it in the coming weeks.

Mr BATTY: It will be released in the coming weeks, will it?

The Hon. A. MICHAELS: Yes, that is the intention.

Mr BATTY: Along with the government response.

The Hon. A. MICHAELS: Yes.

Mr BATTY: Returning to the SA Museum, is the minister aware of what other impact there might be on the Museum from the reduced total grant for this year? Will there be any impact on the research capabilities of the Museum?

The Hon. A. MICHAELS: At the moment, the Museum is undertaking consultation on their strategic plan. I was at one of those public sessions maybe a few weeks ago. Part of the answer is that it really depends on what comes out of that strategic planning work. If we look at the recommendations that came out of the Premier's review, obviously it was to cease all those proposed changes at that point in time, but the important thing is to develop that new strategic vision and plan. That work is being done at the moment. Once that work is done, the Museum is tasked with developing a research strategy and exploring research models.

As I said, to some extent I cannot answer that question because it is a matter for the Museum to do that work to develop their research strategy off the back of the strategic plan. A lot of public consultation has been undertaken. There has been some comprehensive engagement with staff over the last number of months. Stakeholders have been engaged. Professor Rob Saint, who was appointed as the chair, has also done an extraordinary job, along with Ms Mockler and the team at the Museum, in engaging not only staff but those key stakeholders for what will be an exciting future vision for the Museum.

Mr BATTY: That could result in a reduction in the research capacity of the Museum?

The Hon. A. MICHAELS: Sorry, what was that?

Mr BATTY: It might result in a reduction of the research tasks that the Museum undertakes?

The Hon. A. MICHAELS: I do not expect so, given that research is a focus of those recommendations that came out of the Premier's review.

Mr BATTY: Will it involve the closure of any permanent exhibitions?

The Hon. A. MICHAELS: Again, that work is being done, so it is not a rule in, rule out. That work is being done around the strategic vision. An asset management and infrastructure study was one of the other things that needed to be conducted out of those recommendations. That work will be led by DPC, doing that work to make sure we have a better Museum going forward.

I think it is a really exciting time for the Museum. The Viking exhibition has been really popular. That was off the back of some additional funding that we provided. I think there are exciting times for the Museum. I think certainly there was a positive vibe in the public consultation forum that I went to. I know there have been positive comments coming from staff through to Professor Saint. So I think it is onwards and upwards for the Museum.

Mr BATTY: I hope so. State Opera will celebrate its 50^th anniversary next year. I think at estimates last year you said that government would be open to supporting them with a special celebration in 2026. How are those plans progressing and what additional funding has been provided for this purpose?

The Hon. A. MICHAELS: As I mentioned, State Opera was successful in securing some of the Arts Investment Fund money that will help them with their 50^th year celebrations. It is an exciting time for the opera. They are receiving $290,000 from the Arts Investment Fund, which is supporting their matched funding campaign to mark their 50^th anniversary. That is going to run alongside their end of financial year appeals with their donors. They are getting additional funding of $90,000 because they want to do some market research to help reposition the State Opera to make sure it remains a strong and relevant organisation for the next 50 years and beyond.

Mr BATTY: What is the 2025-26 operating grant for the State Library, the Art Gallery, the Museum, Carrick Hill, State Theatre, State Opera, the Adelaide Symphony Orchestra, Country Arts SA, Australian Dance Theatre, Adelaide Fringe, Adelaide Festival Corporation, Adelaide Festival Centre Trust and Tandanya, and how does that compare to the previous four years?

The Hon. A. MICHAELS: That might be a question we take on notice, but I might just give you some high-level information. The base operating grant for those organisations, for example Festival Centre Trust, is $15.5 million and the Adelaide Festival was $8.882 million. Did you mention the Film Festival? No, I do not think you did. The Symphony Orchestra I think you mentioned, that is $2.861 million. I think you mentioned the Art Gallery, that is $8.352 million. I think I have missed some. Carrick Hill I think you mentioned.

Mr BATTY: I did. I suspect I am after anything you have on that sheet of paper in front of you.

The Hon. A. MICHAELS: I am trying to recall. Carrick Hill, if that was one of them, is $976,000. I cannot remember the others that you mentioned, but we will provide what we can provide on notice, given the time.

The CHAIR: Given the time, that was your final question. The allotted time having expired, I declare the examination of CreateSA complete. The examination of the proposed payments and the Administered Items for the Department of the Premier and Cabinet are adjourned until tomorrow.

Thank you to the minister, thank you to advisers and public servants. We do acknowledge all the work that is done in order to prepare for estimates. I am sure we could come up with a better process but we do not seem to have in all these years—maybe one day. Also, I thank opposition members, government members and all parliamentary staff, including Hansard and, obviously, security up there in the corner, patiently sitting.

At 17:01 the committee adjourned to Tuesday 24 June 2025 at 09:00.