Regional Australia

  • 36% of Australians live outside capital city statistical divisions and 31% live outside major cities.
  • Despite common misconceptions, the population of regional Australia is rising. The Australian Bureau of Statistics projects that the population outside capital cities will grow by 26% between 2007 and 2026.
  • Regional economies are based on a diversity of industry sectors, with the majority of employment concentrated in the services, health, education and infrastructure sectors.
  • Regional Australia is the major source of Australia’s export earnings, with the agricultural and resources sectors representing over 60% of the value of Australia’s exports in 2009-10.
  • Regional Australia plays a critical role in the Australian tourism industry, which makes a direct contribution to Australia’s GDP of $34 billion.  Regional areas account for around 55% of domestic visitor expenditure and almost 20% of international visitor expenditure.
  • Regional Australia holds the keys to a sustainable future for Australia. It is where solutions can be found to key national and global challenges such as: food security; biodiversity; climate change; water solutions; preservation of Indigenous cultures and Indigenous economic development; and, social inclusion.

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Fact or research finding Reference
Population and economy
As at June 2010, 36% of Australia’s population (8.03 million people) resided outside capital city statistical divisions and 31% lived outside major cities Australian Bureau of Statistics (ABS)(2011) Regional Population Growth, Australia 2009-10 cat. No 3218.0
Despite common misconceptions, the population in regional Australia is rising. It is projected that the Australian population will grow by 30% between 2007 and 2026, with 32% growth in capital cities and 26% growth outside capital cities. ABS (2008) Population Projections, Australia, 2006 to 2101 cat. No 3222.0 (Based on Series B projections)
Average annual regional population growth over the five years 2005-10 was highest in satellite cities (within 150km of a capital city) and coastal cities, with slower rates of growth in inland cities and other rural and regional areas. Daley, J. and Lancy, A., 2011, Investing in regions: Making a difference, Grattan Institute, Melbourne.
Regional economies are based on a diversity of industry sectors, with the majority of employment concentrated in the services, health, education, and infrastructure sectors. Bureau of Infrastructure, Transport and Regional Economics (2008) About Australia’s Regions Department of Infrastructure, Transport, Regional Development and Local Government
Regional Australia is the major source of Australia’s export earnings, with the agricultural and resources sectors representing over 60% of the value of Australia’s exports in 2009-10. Australian Bureau of Agricultural and Resource Economics and Sciences (2010) Australian Commodity Statistics 2010
Regional Australia also plays a critical role in the Australian tourism industry, which makes a direct contribution to Australia’s GDP of $34 billion per year. In 2009-10, regional areas accounted for around 55% of domestic visitor expenditure and 17% of international visitor expenditure.

Tourism Research Australia (TRA)(2011) Tourism Industry Facts and Figures at a Glance Department of Resources, Energy and Tourism.

TRA (2011) Travel expenditure by domestic and international visitors in Australia’s regions, 1999-2010

Higher education attainment and aspiration
There is a significant differential in higher education attainment between city and regional Australians, with the differential increasing with distance from a major city. In 2006, 27% of people aged 25-64 who lived in major cities held a Bachelor degree or above. This figure declined to 15% for Australians living in inner regional areas, to 13% for outer regional areas and down to only 10% for very remote areas. ABS (2008) Australian Social Trends, 2008 cat. No 4102.0
Parents in less geographically accessible regions have relatively low expectations for their children’s future education levels, when compared to parents in major cities. Australian Institute of Family Studies (2011) Families in regional, rural and remote Australia, Fact Sheet 2011.
Young people in regional Australia continue to be less likely to aspire to a higher education. While 63% of young people in metropolitan areas intend to enrol in higher education, only 39% in provincial areas and 32% in remote areas intend to do so. Australian Council for Educational Research (ACER) (2010) Australian Regional Higher Education: Student Characteristics and Experiences