Trends
How have Australian aid volumes changed over time? Are Australians becoming more or less generous?How much aid do we give?
In 2013-14, 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 returned to the same level it was at a decade earlier. Although the 2020 COVID-19 shock resulted in the government increasing aid, our analysis shows the increase was only temporary and from 2021-22 aid has been cut to below its pre-pandemic level. Under current budget settings, it is projected to stay below this level until at least 2036-37.
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). You can read more on how Australia’s aid volumes compare to other developed countries on the Comparisons page.
Official Development Assistance (ODA) is calculated by the Australian government. It follows the OECD DAC agreed definition of aid, but this definition (a) changes over time and (b) allows for some discretion. In 1983-84, for the first time, the Australian government contribution towards the education in Australia of developing country students was included in ODA. This change in definition increased ODA in that year by $98.6 million, about 10%.
In its 2023-24 budget summary, DFAT announced to lock in an annual aid increase of 2.5%. Using 2025-26 as the base year, total additional aid from 2027-28 to 2036-37 in nominal terms would be $8.77 billion. Yet assuming that inflation stays at the estimated 2025-26 level of 2.5%, aid will actually stabilise at $4.7 billion from 2026-27, just slightly higher in real terms than it was under John Howard in 2006-07, until 3036-37.
For more on data and definitions, visit the data sources 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.
Eras of Australian aid
1970-71 to 2003-04
Aid received little attention. It had a slow underlying rate of increase of just 1% a year, taking it (in 2023-24 prices) from $2.4 billion in 1970-71 to $3.4 billion in 2003-04.
2003-04 to 2013-14
The scale-up decade. Aid increased rapidly over this period from $3.4 billion to $6.6 billion (in 2023-24 prices), an annual average growth rate of 7% a year.
2013-14 to 2019-20
The scale-back. By 2019-20, aid had almost fallen to its 2007-08 level.
2019-20 onwards
Aid was increased in 2020-21 due to COVID-19 and increased competition with China. In the 2023-24 Budget, Labor 'stabilised' aid in real terms at below pre-pandemic levels until 2036-37.
Generosity
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. Following years of real aid cuts, Australia's aid generosity is now on a prolonged downward trajectory, and is projected to fall to 0.13% by 2036-37. You can read more on how Australia's ODA/GNI ratio compares to other developed countries on the Comparisons page.
How much aid do we give per Australian?
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 1961-62 and 2022-23, Australia's annual official development assistance per person has been $192 (2023-24 prices). From the chart below, it is clear that this increased substantially during the scale-up era, but now has dropped below the level achieved during most of the 1970s and 80s. Based on budget forecasts, by 2026-27, aid per capita will be $163 (in 2023-24 prices). You can read more on how Australia's per capita contribution compares to other developed countries on the Comparisons page.
How much of the Federal Budget is spent on aid?
Many Australians believe our government spends much more on aid than it actually does. In a 2015 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 2011-12, and is projected to be just 0.70% in 2023-24.
Learn more by reading budget coverage on the Devpolicy Blog.
How much do Australians donate to international development NGOs?
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 2004 Indian Ocean Tsunami, but remained relatively flat between 2007-08 and 2014-15, after adjusting for inflation. Both total donations and per capita donations experienced small declines from 2014-15 to 2018-19. Since 2019-20, total donations started to recover but per capita donations has continued to decline. The final graph shows trends in net public donations: donations from the public after fundraising costs have been subtracted. Fundraising costs increased substantially between 2007-08 to 2018-19, but started to drop since 2019-20. You can read these blogs for more information on public donations.
Summary
- In 2022-23, Australian aid was about $4.779 billion in current prices.
- In 2013-14, our aid budget reached its largest size: $5.036 billion (or $6.592 billion in 2023-24 prices).
- At its height, the aid budget was equivalent to $289 per Australian (in 2023-24 prices). In 2023-24, we are spending $173 per Australian on aid.
- Australian aid was at its least generous level in 2022-23: just 0.20% of Gross National Income. Based on budget projections, this may decline even further.
- Aid accounted for around 0.7% of the total spending in the 2023-24 Federal Budget, however this is also declining.
- After adjusting for inflation, total donations to international development NGOs fluctuate between $1 billion to $1.2 billion and per capita donations has stabilized around $41 in 2022-23 prices.