In 2012-13, Australia’s foreign aid budget reached its highest level ever–just above $5 billion. Since then, there has been a sharp drop–and in 2016-17, in real terms, our foreign aid will be back to the same level it was at a decade earlier. The chart below shows foreign aid provided by the Australian government since the 1960s, in both current prices, and adjusted for inflation. (If you aren’t sure what counts as foreign aid, learn more on our Aid 101 page). All data from this page is drawn from the Federal Budget, unless otherwise noted. You can read more on how Australia’s aid volumes compare to other developed countries on the Comparisons page.
Note: When we talk about foreign aid, we are normally talking about aid given by governments. This aid, sometimes called Official Development Assistance (ODA), doesn't include the money donated by the public to NGOs.
Aid received little attention. It had a slow underlying rate of increase of just 1% a year, taking it (in 2015 prices) from $2 billion in 1970 to $3 billion in 2004.
The scale-up decade. Aid increased rapidly over this period from $3 billion to $5.6 billion (2015 prices), an annual average growth rate of 7% a year.
The scale-back. Aid is now falling even more quickly than it rose during the scale-up.
The usual way of looking at the generosity of aid donor countries is to compare their foreign aid to the size of their economy, measured using Gross National Income (GNI). The internationally agreed aid-to-GNI target is 0.7%. For a time during the scale up period of Australian aid, both major political parties had agreed to increase government aid to 0.5% of GNI. Yet, as you can see from the chart below, while the scale-up reversed the decline in this ratio, the goal was never reached.
Based on budget forecasts, our share of aid to GNI is projected to decline to its lowest level ever in 2016-17, and is then forecast to decline further. You can read more on how Australia’s ODA/GNI ratio compares to other developed countries on the Comparisons page.
Another way to analyse Australia’s aid over time is to look at aid per capita–how much Australia gives per person. On average, between 1971 and 2015, Australia’s annual official development assistance per person has been $172 (2016 prices). From the chart below, it is clear that this increased substantially during the scale-up era, but by 2016-17 is set to drop below the level achieved during most of the 1970s and 80s. Based on budget forecasts, by 2019-20, aid per capita will be $148 (in 2016 prices). You can read more on how Australia’s per capita contribution compares to other developed countries on the Comparisons page.
Many Australians believe our government spends much more on aid than it actually does. In a recent poll, some 43% of respondents did not know how much Australia spent on foreign aid, and 19% believed that 5% or more of the Federal Budget went to foreign aid. In reality, our aid spending has typically accounted for around 1% of the Federal Budget. The percentage of aid from total Australian government spending has been on a downward trend since 2013-14, and is projected to be at just 0.8% by 2019-20.
Learn more by reading the 2016 budget coverage on the Devpolicy Blog.
Many individuals donate to international development NGOs to help a specific country or cause or as part of a humanitarian appeal. This is additional to government aid. The Australian Council for International Development (ACFID) is the peak body for international development NGOs in Australia. In the charts below, we show how Australians’ donations to ACFID members, as well as the largest two non-ACFID member NGOs (Médecins Sans Frontières and Compassion) have changed over time. Donations increased following the Indian Ocean Tsunami, and but have remained relatively flat since 2007, rising only in line with inflation. Once inflation is taken into account, per capita giving to development NGOs has decreased from $53 per person in 2005 to $45 per person in 2015, although it is still considerably higher than it was prior to the Indian Ocean Tsunami ($30 or less).