( APS ) employees are located outside Australia ’ s metropolitan areas . It states that 5.9 % of the Federal Government ’ s workforce are located in South Australia , while at the time of writing ( March 2021 ) population data published by the Australian Bureau of Statistics showed that South Australia accounts for 7 % of Australia ’ s population . The State with the highest proportion of APS employees in regional areas is New South Wales , with 6 %, while the lowest is South Australia , with only 0.2 %.
The Committee states in its findings that public sector jobs should be more widely distributed throughout Australia , particularly in rural and regional areas and that Australians should not be prevented from joining the public service or having access to government career opportunities because of where they live . A collateral advantage of decentralisation is reducing congestion and population pressures on capital cities .
RATIONALE – THE CONTRIBUTION OF AUSTRALIA ’ S REGIONS TO NATIONAL PROSPERITY Policies aimed at regional economic development and ‘ regionalisation ’ are justified by the important contribution Australia ’ s regions make to national prosperity . ‘ Regional economic development ’ refers to the continuous process of growing a regional economy ’ s level of income and capital ( wealth ) and distributing that wealth ( through expenditure and jobs ) to the community . It is defined by the mutually reinforcing and complementary relationship between improvements in economic activity , employment , community wellbeing , cultural diversity , a sense of ‘ place ’ and the environment . Ultimately , it is about improving quality of life or to capture the concept succinctly , it is about ‘ prosperity ’.
FIGURE 1 . ‘ REGIONAL ECONOMIC DEVELOPMENT ’ BROADLY DEFINED
© SC Lennon & Associates
Australia ’ s regions make a significant contribution to national prosperity . The Australian Government ’ s State of the Regions 2024 report ( February 2024 ) shows that regional Australia is home to about a third of the Australian population . According to the Regional Australia Institute ( 2021 ), regional Australia accounts for around 40 per cent of national economic output while ABS Census data ( 2021 ) shows that Australia ’ s regional workforce accounts for 31 % of national employment .
Regional Australia also exerts a stabilising effect on Australia ’ s economic performance through its collective economic diversity . For example , during the aftermath of the Global Financial Crisis of 2008 , the economic growth of Australia ’ s metropolitan areas slowed considerably while regional Australia ’ s contribution to economic output actually increased as a proportion of the total . According to the Regional Australia Institute , productivity in regional Australia – as measured by output per worker – has gained on Australia ’ s metropolitan areas across most industries .
Australia ’ s regions are also highly innovative . In an increasingly globalised economy , innovation and greater productivity are arguably the most pressing challenges facing Australia over the next few decades and without improvements in the capacity of Australia ’ s regions to produce , economic development and national prosperity could be compromised .
Collectively , Australia ’ s regions represent a diverse portfolio of economic activity and opportunity and the importance of regional Australia to the national economy means that realising the potential of the regions is critical to securing Australia ’ s future prosperity .
THE RETURN ON INVESTMENT IN REGIONALISATION As noted by the Australian Government in its report State of Australia ’ s Regions 2024 , throughout Australia , “ many regions report difficulty in attracting and retaining the qualified people required to deliver community services , particularly as remoteness increases , which affects quality of life and economic opportunity ”. This has an impact on the capacity to deliver those services as well as workforce capacity and business productivity across all sectors of the economy .
The contribution of Australia ’ s regions to national prosperity reinforces the importance of governments taking a leading role in addressing Australia ’ s regional economic development objective . One way that both the State and Federal governments can do this is through a strong commitment to regionalisation .
Policy efforts to promote improved local service delivery in the regions , coupled with strategies to invest in infrastructure , amenity ( liveability ) and human capital ( people and jobs ) will serve to make the regions more resilient . An increase in population will support further investment in local service delivery and attract more government funding and investment .
According to the Regional Australia Institute ( 2021 ), regional Australia accounts for around 40 per cent of national economic output while ABS Census data ( 2021 ) shows that Australia ’ s regional workforce accounts for 31 % of national employment .
A growing regional population will also serve to retain existing businesses and attract new investment as confidence in the regions grows . New investment will generate more opportunities for employment , creating a multiplier effect of more people , more investment and more jobs in the regions , along with wages growth and an increase in consumer spending .
Increased investment and expenditure will lead to further economic development . That means more rates for local Councils and taxation revenue for the State and Federal governments , which in turn leads to a virtuous cycle of more investment and expenditure in the regions .
Simply put , this is the government ’ s ( and the community ’ s ) return on investment in a strategic , informed and targeted approach to regionalisation .
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