September 2021 - Regional Australia ...

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September 2021 - Regional Australia ...
2011 - 2021

    A DECADE OF ACHIEVEMENT

    September 2021

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT   1
September 2021 - Regional Australia ...
TABLE OF CONTENTS
About us                                                 2
Foundations of Regional Australia                        3
Message from the Interim Chairman                        4
Message from our CEO                                     5
Our People                                               6
A 10-Year Retrospective                                  7
Regionalisation - Rebalancing our Nation                 19
Conclusion                                               26

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT        1
September 2021 - Regional Australia ...
ABOUT US

The Regional Australia Institute (RAI) is the only national, independent think tank and
research organisation dedicated to supporting the well-being and prosperity of regional
Australia. Established in 2011, the RAI was specifically formed to help bridge the gap
between knowledge, debate and decision-making for the future pathways of regional
Australia. It exists to ensure all levels of government, industry and community members
have access to the information they need to make decisions impacting the future of
regional Australia.

Informed by both research and ongoing dialogue with the community, the RAI develops
evidence-based policy and advocates for change to build a stronger economy and better
quality of life in regional Australia – for the benefit of all Australians. Through its work,
the RAI strives to support regions to reach their potential, which means developing new
policy approaches, supporting discussion among government and industry leaders and
working toward the empowerment and engagement of regional communities.

This work and these associated relationships have successfully positioned the RAI at the
forefront of the regional Australia conversation. The RAI is the voice for the regions.

On the occasion of its 10th Anniversary, the RAI is taking the opportunity to reflect on its
key contributions over the decade. This report provides a retrospective of the RAI’s most
influential and informative research and events since its inception. Capturing the main
themes and recommendations, the report moves from retrospective to roadmap, looking
ahead at ways to further support the growth and prosperity of regional Australia.

The RAI is governed by a Board of Directors, a diverse group of independent thinkers,
who bring together the right mix of knowledge, expertise, skills and experience. The
Board has extensive knowledge of research and policy implementations at the local, state
and federal levels, and strong community links.

The RAI Staff are led by a Chief Executive Officer and comprise a small team of
professionals with a variety of skills and experience with regional issues.

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September 2021 - Regional Australia ...
FOUNDATIONS OF
REGIONAL AUSTRALIA

For the RAI, regional Australia is all of Australia outside the capital cities of Sydney, Melbourne,
Brisbane, Perth, Adelaide and Canberra. It is home to 9.45 million Australians and its workforce
accounts for about one-third of employment in Australia. Regional Australia contributes about 40%
of the national economic output, but that figure increased after the global financial crisis, showing
the ability of the regions to lead the nation in recovering after hard times.
Regional Australia is extremely diverse and there are no “one-size-fits-all” policy approaches.
 Australia has hundreds of regional communities and each one is unique. In broad terms, the factors
that will shape their economic futures can be divided into three categories: how many people live
there, the kind of work that these people do and the distance to major cities from these places.
These are key drivers of economic growth and change.
It was for this reason in 2015 that RAI developed the Foundations of Regional Australia,
recognising four distinct categories within regional Australia. The categories were developed
based on the relationships between a region’s key industries, its proximity to larger cities and local
population size. They allow researchers and policy makers to capture both the diversity and the
common challenges faced by regional communities across the country. These Foundations provide a
starting point for understanding the range of unique pathways to future prosperity that exist
across regional Australia.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                   3
September 2021 - Regional Australia ...
MESSAGE FROM
THE INTERIM CHAIRMAN

                                                 AFTER 10 YEARS, I THINK WE HAVE THE BALANCE RIGHT.
                                                  I THINK IT WOULD BE FAIR TO SAY THAT MORE PEOPLE IN
                                                 AUSTRALIA ARE TURNING THEIR MIND TO THE
                                                 OPPORTUNITIES OF RURAL AND REGIONAL AUSTRALIA THAN
                                                 AT ANY OTHER TIME SINCE FEDERATION. WE ARE PROUD TO
                                                 HAVE BEEN A PART OF THE CHANGE.

When we founded the Regional Australia Institute, there was a real sense of wanting to make a
big impact. In particular, there was a commitment to thinking long-term and developing a body of
research that could inform policy and have a real impact on the ground.
We knew, starting as we were from scratch, that this type of impact would take time and hard
work to achieve. We knew we had to build trust by producing outstanding research.
We have had people on the RAI Board, since our founding, who have an incredible knowledge of
and passion for regional Australia. It has been a Board that has fostered collaboration,
encouraged spirited discussion, and brought together people to work in common cause for the
advancement of regional Australia. We have learned a great deal from each other over the
decade and in doing so we have been able to sharpen our focus each year on what matters most
to rural and regional Australia and how we can best make a difference.
Having served as a Director for all of the 10 years, I can honestly say that in everything we have
done we have maintained a laser-like focus on what matters to regional Australia. Each of us has
brought a particular connection to regional Australia through our work and personal connection to
different parts of the country, and I want to pay particular tribute to our Chairman for nearly all
of the 10 years, Mal Peters OAM, who has been a great exemplar of this. A former President of
NSW Farmers Association and former Director of National Farmers Federation (NFF), he brought a
powerful connection to agriculture and farming to the Board and always demonstrated a
determination to make sure that we embraced the diversity of rural, regional and remote
Australia.
As a Board, we are excited about what we can achieve on behalf of regional Australia in the
decade ahead. And the decade after that. We know these are exciting times for regional
Australia with so much opportunity right across the country and, with your support, we know that
the decades ahead will be even better for all of country Australia

                                                                 CHRISTIAN ZAHRA AM FAICD,
                                                                         INTERIM CHAIRMAN
REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                  4
September 2021 - Regional Australia ...
MESSAGE FROM
OUR CEO

                                                 FOR 10 YEARS, THE REGIONAL AUSTRALIA INSTITUTE (RAI)
                                                 HAS BEEN STRIVING TO ENSURE THAT REGIONS TAKE THEIR
                                                 RIGHTFUL PLACE IN THE AUSTRALIAN STORY AND
                                                 REGIONALISATION IS AT THE CORE OF OUR WORK.

It has been 10 years since the Regional Australia Institute (RAI) was born with the mission to
become an authoritative and trusted source of independent information and policy advice on
regional issues.
Started with seed funding from the Commonwealth Government, the RAI was established in 2011.
Its Board was composed of a diverse group of eminent Australians with both the skills and the
passion to drive a paradigm shift in regional development. The Board and the staff were
determined to produce work that was capable of challenging existing thinking and of shifting the
narrative about regional Australia - work which would translate into real results on the ground.
Since that time, the RAI has been prolific in conducting consultations, undertaking research,
analysing data, making policy recommendations, writing submissions and holding events which
bring together diverse stakeholders. It has produced unique tools to facilitate understanding on
similarities and differences between regions. It has directly influenced government policy making
at the highest levels. As importantly, it has worked closely with regional leaders and their
communities to identify opportunities and address challenges in regional Australia’s journey to
reach its potential. Today, the RAI has a national profile and is viewed by government, industry
and communities as a trusted source of authoritative advice on all issues related to the well-being
and prosperity of regional Australia and regional Australians.
On this occasion, as we mark 10 years since the RAI was established, I am delighted to present this
special publication to recognise our substantial body of work. No single publication would do
justice to the depth and diversity produced by the RAI over the past decade; however, we have
put together a retrospective of selected highlights, which has had a real impact.
Lastly, I would like to take the opportunity to publicly express my sincere appreciation and thanks
to our outgoing Founding Chairman, Mr Mal Peters, our Interim Chairman, Christian Zahra and both
past and present board members and the dedicated RAI staff who have served the organisation
over the past decade, from our inception towards a brighter future.

                                                                                        LIZ RITCHIE
                                                                                           CEO RAI
REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                  5
September 2021 - Regional Australia ...
OUR PEOPLE
RAI BOARD MEMBERS 2011 - PRESENT

The RAI is governed by a diverse group of independent thinkers who span the political divide and
bring together the right mix of knowledge, expertise, skills and experience in regional Australia. The
Board has extensive knowledge of research and policy implementation at local, state and federal
levels and strong community links. We thank and acknowledge both past and present Board
Directors for their service to the RAI.

 MR MAL PETERS           MR CHRISTIAN              PROFESSOR            PROFESSOR    MR GRANT LATTA                        MR TIM
     OAM                  ZAHRA AM                NGIARE BROWN        SANDRA HARDING     OAM AM                         SHACKLETON
   CHAIRMAN               (2011- PRESENT)             (2011- 2012)         AO           (2011- 2016)                     (2012 - 2018)
     (2011-2021)                                                         (2011- 2016)

     RT HON              MR GRAHAME                  PROFESSOR          MS REBECCA             PROFESSOR                THE HON
 IAN SINCLAIR AC           MORRIS                    ANNABELLE          TOMKINSON              GERALDINE              MARK VAILE AO
     (2011 - 2018)         (2016 - 2020)              DUNCAN            (2019 - PRESENT)       MACKENZIE                (2021 - PRESENT)
                                                      (2017 - 2020)                            (2020 - PRESENT)

     THE HON           ANDRE CARSTENS
    ROB KERIN             (2021 - PRESENT)
   (2021 - PRESENT)

RAI CHIEF EXECUTIVE OFFICERS (2011- PRESENT)

  SU MCCLUSKEY                          JACK ARCHER                    DR. KIM HOUGHTON                           LIZ RITCHIE
  (FOUNDING - 2015)                        (2015 - 2019)                (Co-CEO 2019 - 2020)                  (2019 - PRESENT)

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                                     6
September 2021 - Regional Australia ...
A 10-YEAR                                                                                      2021:

RETROSPECTIVE:                                                     2019-2020:
                                                                                               TOWARD REGIONALISATION

KEY HIGHLIGHTS                                              FROM RESEARCH TO
                                                                  ACTIVATION
                                                                                               2018-2019:
                                                                                               MAKING REAL CHANGE
                                                                 2017-2018:
                                                         COLLABORATION AND
                                                               CONNECTIONS
                                                                                               2016-2017:
                                                                                               IMPACTING POLICY
                                                                   2015-2016:
                                                            FINDING SOLUTIONS
                                                                                               2014-2015:
                                                                                               REGIONAL ECONOMIES
                                                                   2013-2014:
                                                         RETHINKING THE ISSUES
                                                                                               2011-2013:
                                                                                               STRENGTHENING THE DATA

                                             Today there are massive opportunities for new growth and development in the regions
2011-2013:                                   but there are also many challenges….Critical to identifying and tackling these challenges
                                             is quality research, which supports robust arguments and evidence-based policy that
STRENGTHENING THE DATA                       governments can use to get results on the ground."
                                             MAL PETERS, CHAIRMAN, ANNUAL REPORT 2011-2012

The Regional Australia Institute (RAI) was established with the mission to become “Australia’s pre-
eminent, authoritative source of independent information and policy advice on issues impacting
regional Australia”. When the RAI was first created, there was a distinct lack of evidence on
regional issues and a lack of coordination around the data that did exist. Additionally, there were
many misperceptions and myths surrounding the state of regional Australia and its opportunities.
One of the RAI’s first tasks was to undertake a stocktake of regional research to catalogue existing
research on regional issues. It was the most comprehensive stocktake ever done on regional
Australia and resulted in 2012 in the creation of [In]Form, Australia’s only free, searchable
database of regional research.
The second major piece of work in RAI’s first year was the development of [In]Sight, the nation’s first
online index and interactive map tracking the competitiveness of Australia’s 560 Local Government
Areas (LGAs) and 55 Regional Development Australia (RDA) regions.
This unique tool allows comparisons across 10 themes and 71 indicators that reflect the
fundamentals of sustainable growth in Australia, capturing the relative competitiveness of LGAs. Its
development was informed by the experience and design of international competitiveness indices,
yet [In]Sight also goes further than most indices, as the RAI makes all of the data available through
an online interactive map for use alongside reporting of the results. This puts over 92,000 pieces of
information on the Australian economy at the fingertips of every Australian.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                               7
September 2021 - Regional Australia ...
By identifying and understanding the variation of growth factors at the LGA level, the index can
provide rich data for policy makers. The findings from [In]Sight allow regions to capitalise on local
opportunities and sources of advantage, as well as to understand the roles of technology, human
capital and innovation on regional growth.
[In]Sight data has led to a number of reports by the RAI on different topics, including on
competitiveness in the East Coast corridor and the Northern Territory, as well as a paper on
Australia’s economic diversity.

                                             We need to move policy and thinking beyond just reacting and providing band-aid
2013-2014:
                                             solutions or hoping for the best in the face of constant change. Our work will help
RETHINKING THE ISSUES                        Australia get ahead of the game.
                                             SU MCCLUSKEY, CEO, [IN]SIGHT 2014 LAUNCH

The RAI produced a series of talking points to explore the current and future trends of Australia’s
regional populations and to inform a wide range of stakeholders about the opportunities and
challenges that flow from its dynamic and increasingly mobile regional populations. Returning to
Regional Australia looked at the influx of Australians aged 25-44 returning to regional areas, An
Ageing (Regional Australia) and the Rise of the Super Boomer explored the ageing trends of
regional communities. The following year, in 2015, the RAI continued its work on population and
produced the report Population Dynamics in Regional Australia.
These reports were underpinned by the work of RAI Fellow, the late Graeme Hugo from the
Australian Population and Migration Research Centre, at the University of Adelaide. Taken
together, these works were able to dispel myths surrounding regional decline and provide evidence
of important trends in regional population, namely:
     the regional population is growing at a rate not far below that of the capital cities;
     ageing is an opportunity for growth that regions must value because older people choose
     regions; and
     young people leave every region, but many return. These ‘returners’ are a key source of
     growth.
They also identified the policy responses that can be used at a local, state or federal level to
promote population growth and change for regional development.
Another significant report released by the RAI during this era focused on Australia’s top end.
Rethinking the Future of Northern Australia’s Regions: More than Mines, Dams and Development
Dreams which identified the imperative for a balanced, regionally responsive development strategy
for northern Australia. This influential analysis had a direct and profound impact on policy making.
It provided rich information for the first Australian Government White Paper on the Development of
Northern Australia, released in 2015.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                         8
September 2021 - Regional Australia ...
Knowledge is power. Better knowledge about regional Australia enables us to influence
2014-2015:
                                             decision-making, ensuring the growth and prosperity of Australia’s regions and our
REGIONAL ECONOMIES                           nation as a whole.
                                             MAL PETERS, CHAIRMAN, ANNUAL REPORT 2014-2015

A particular focus in 2015 was the regional economy. The RAI’s report The Economic Contribution of
Regions to Australia’s Prosperity provided a baseline for a better conversation about the regional
economy, based on fact not negative assumption. Some facts unearthed in this report relating to
Australia’s regional economy still surprise people and make them rethink assumptions about why
regional development matters and the value regions have to the nation. For example:
     Australia’s rural and remote Heartland economy alone is bigger than the economy of New
     Zealand;
     each agriculture worker contributes the same to the Australian economy as a finance worker;
     on a per capita basis the regions contribute as much as the cities do to the economy.
The report revealed the importance of Australia’s regions to national economic growth, outlining key
facts as well as regional Australia’s place in the national economic story. It effectively created the
groundwork for understanding the economy of regional Australia by looking at three key indicators
of activity: economic output, labour market and productivity.

While continuing its usual work of research projects, data
collection and analysis, the RAI turned its attention during
the year to Western Australia. In conjunction with the
Government of Western Australia, its report Cities Beyond
Perth-Best Bets for Growth in a New Economic Environment
outlined a novel framework which, if implemented
successfully, would build a diversified, resilient and growing
network of regional cities and economies in Western
Australia (WA).
The framework identified four types of communities in
regional WA and their best strategies for development,
based on their respective strengths and opportunities.
The RAI also conducted two smaller but equally important
studies into specific issues in Western Australia in the same
year.

The first looked into the question of Access to Finance for SMEs in Western Australia, acknowledging
the importance of small and medium-sized enterprises to regional innovation, workforce and
growth. The second analysed the opportunities and challenges for online work in regional WA,
recognising that technology in the workplace offers opportunities to deepen the connection of
Western Australian regions to the rest of the world.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                           9
Regional success is built on a balance of local ingenuity and proactivity, and informed,
2015-2016:                                   consultative state and federal leadership. We need to lift expectations; about what our
                                             economy can do, what government can do, and what regional people can and are
FINDING SOLUTIONS                            already doing. It’s time for a period of change on our own terms.
                                             JACK ARCHER, CEO, REGIONS AND THE NEW ECONOMIC AGENDA

Having built a comprehensive knowledge base as well as developing key stakeholder relationships
across the country, the RAI was in a position to delve deeply into specific regions and provide
advice and recommendations on their growth trajectories. It launched the unique Pathfinder
Initiative. Pathfinder is a signature RAI process to identify the drivers for change in a given region. It
understands that regional Australia is so vast and diverse that place-based solutions are the best
option for success. Using a collaborative approach with local leaders, the RAI performs modelling
which identifies the factors for success which will yield optimum growth. The Pathfinder was an
ambitious initiative and one which has returned positive results with each region that has applied it
since its inception.
During the year, the RAI continued its work highlighting key opportunities in regional Australia that
are often overlooked.
Its report Deal or No Deal: Bringing Small Cities into the
National Cities Agenda identified the growth potential of
Australia’s smaller cities where little effort has been made to
harness their collective potential, despite boasting a higher
growth rate than the major cities between 2002 and 2010.
The report highlighted key ingredients that must be
identified by each city in order to deliver on its growth
potential. The report also proposed a Regional City policy,
where a negotiated agreement is made between
governments and a city, that give the city responsibility for
decisions that support businesses, create economic growth
and determine how public money is spent in their area. The
impact of the report was apparent in the Australian
Government’s subsequent announcement of a regional
stream for City Deals.

Much of the RAI’s focus has always been on pushing the boundaries for regional Australia, testing
and modelling to see what can be done better and identifying pathways for maximising potential.
The RAI asks the hard questions and during the year its discussion paper Delivering Better
Government for the Regions focused on the role of government and questioned how to achieve
better government for regional Australia. For the RAI, effective governance for regions is a product
of positive engagement between central governments and the regions; it is based on relationship
building and the generation of new capacities in both the centre and the periphery and is outcomes
focused. The decentralisation of decision-making is central to this theme.
The paper was aimed at stimulating debate and refocusing policy development and was influential
in the Australian Government’s subsequent decentralisation agenda.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                             10
2016-2017:                                   The RAI’s work can help...governments to better understand regional issues and to
                                             develop policy solutions that can make a real impact at the local level.
IMPACTING POLICY
                                             JACK ARCHER, CEO, ANNUAL REPORT, 2016-2017

In 2016-17, the influence of the RAI’s work on government decision-making was increasingly
apparent. Its recommendation to the Productivity Commission for a new regional telecommunications
Universal Services Obligation (USO) including broadband was adopted. Its Innovative mapping of
regional city connections resulted in the Department of Prime Minister and Cabinet including this
approach in the Smart Cities Plan National Cities Performance Framework. The RAI work on
regional economies in transition influenced the design and conclusions of the Productivity
Commission’s study on the transition of regional economies following the resources boom.
The RAI examined the effect of increasing automation and digitalisation of work in comparison to a
growing education divide experienced by regional students. Its report The Future of Work: Setting
Kids Up for Success identified key actions needed for regional Australia’s children to be successful
in the future job market. Coupled with a website hosted in conjunction with NBN Co, this work was
included in the Australian Government Independent Review into Regional, Rural and Remote
Education.
The RAI highlighted the future that regions potentially faced with automation and job disruption set
to increase, while an entrenched education divide made it hard for regions to respond. Its work has
directly influenced the direction of the national regional education review, transitioning regional
economies inquiries, and built stronger public knowledge of these issues that we will be grappling
with in regions for some years to come.

The RAI also continued to build on work that was having an impact on the ground. After its report on
Small Cities and the Government decision to have a regional stream for City Deals, the RAI helped
to translate the work into practical action. It brought together a number of key stakeholders in its
Five + Thirty-One City Deals event to explore the issue and then issued a Blueprint for Investing in
City Deals: Are You Ready to Deal which was a pragmatic guide to help regional cities prepare to
leverage their economic potential. The RAI also continued its myth-busting work, with its publication
Lighting Up Great Small Cities: Challenging Misconceptions.
The year also saw the beginning of the RAI’s important and influential work on regional migration.
For regional areas grappling with an ageing or declining population, international migration can
offer population stability, diversity and create jobs. The RAI’s first publication on the topic, The
Missing Migrants started the conversation about proactive, locally-led strategies to attract migrants
to regional areas, and why these need to be a priority for Australia’s regions.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                      11
2017-2018:                                               ..the organisation is clearly delivering on the need for regional Australia to
                                                         have a leading, independent evidence-based voice on its future.
COLLABORATION AND CONNECTIONS
                                                         MAL PETERS, CHAIRMAN, ANNUAL REPORT 2017-2018

The year marked a significant transition for the RAI, with the development and adoption of its new
Shared Inquiry Program for Regional Policy Research and the launch of Regional Research
Connections. The Shared Inquiry Initiative is a collaboration with the Federal Government and all
State and Territory Governments which provides an ongoing source of robust evidence for policy
makers as well as informing debate about the regional contribution to Australia’s future economy.
The Regional Research Connections is a partnership involving four universities to support the Shared
Inquiry. The partnership included the University of South Australia, RMIT University, Southern Cross
University and Charles Darwin University. Together, these initiatives significantly deepened and
extended the capacity of the RAI to deliver insights for policy makers and regional leaders.
During the year, the RAI dived deeper into the issues of workforce and migration. It held a
Migration Nation Roundtable, bringing together local leaders from around rural Australia who had
successfully developed locally led migration strategies. Previously working in isolation of each other,
the event offered the opportunity to form a network, define a national rural migration issue and its
potential resolution. Discussion centred on projects aimed at attracting and retaining migrants in
rural areas.
Deeper research on workforce and migration resulted in the RAI report The Missing Workers.
Including 14 community narratives, a policy paper, and three videos, this work highlighted an
opportunity to support and enable the development of locally led migration projects in rural
communities facing the challenge of population decline and workforce shortages. It also focused on
the need to make these identified areas a priority for migrant settlement. The report More Migrants
for Small Towns was launched at Parliament House highlighting the need to support and further
encourage locally led migration strategies in rural areas across the country.
The report and the events attracted significant interest and media coverage. Consistent with some
of the recommendations of the Missing Workers paper, the Government subsequently flagged
changes to the visa system to enable regional areas to achieve priority for local workforce needs.

The RAI’s work had significant impacts in other areas of regional policy also. Its Pillars of
Communities: Service Delivery Professionals in Small Australian Towns report shone a light on the on-
going challenges in securing a services workforce in rural and remote areas despite billions of
dollars in annual expenditure. It served to reinvigorate a long-standing debate and area of
national policy effort. The work was cited by politicians and referenced in inquiry submissions.
The RAI also continued its work on decentralisation, making a substantial and influential contribution
to the House of Representatives Regional Development and Decentralisation Inquiry. Through
submissions and hearings, the RAI provided a synthesis of issues and policy approaches at the
national level to enable a new national policy approach for regional development. The resulting
report Regions at the Ready: Investing in Australia’s Future directly referenced the RAI submission,
its City Deals work, and the CEO’s input at the hearings.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                               12
The Public Investment in Economic Development in Regional Australia report supported the
development of future government policy approaches in the grant programs that dominate
traditional regional policy. The findings of this report directly contributed to the latest design of the
Building Our Regions program in Queensland, with the new approach being rolled out to
Queensland regions.

2018-2019:                                Let’s break the divide and start a nation-building conversation that ensures regional
                                          Australia is front and centre. This is not about us and them – this is about our nation – our
MAKING REAL CHANGE                        Australia.
                                          LIZ RITCHIE, CEO, REGIONS RISING VICTORIA, 2019

The Intergovernmental Shared Inquiry Program yielded three significant research streams. The first
was the Regions in Transition which looked at the effectiveness of transition packages, the use of
procurement as a tool for economic development and collaborative approaches to funding regional
economic development. The second was an inquiry into the Future of Regional Jobs. That
comprehensive undertaking considered:
     Future work and regional workforce development;
     International migration and job creation; and
     Growth prospects for agribusiness, manufacturing, tourism and creative industries.
The third part of the Shared Inquiry looked at Regional Towns and Cities, examining the national
economic impacts of changed settlement patterns, and modelling likely population scenarios. The
future population debate is arguably the most important public policy discussion underway in
Australia right now. The public release of the report and concurrent briefings for policy makers
informed the current national debate on decentralising
population growth, making the economic case for examining
at the state and Commonwealth level how planning,
infrastructure and supporting policies can alter the balance of
future growth between outer suburbs and connected regions in
Australia’s major cities. Based on some of the important
findings, the RAI released a National Population Plan for
Australia.
This was also the year that RAI launched the inaugural Regions
Rising national events series creating a national platform for
regional leaders to engage directly with key industry
representatives, government, political leaders and the
community sector on the most important opportunities and
challenges facing regions. The Regions Rising series held a
National Summit, Regional Policy Hack and Regional Policy
Masterclass in Canberra as well as events in each of
Australia’s states and the Northern Territory.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                               13
The RAI also launched two new interactive online tools, the Jobs Vulnerability Data Tool which
provides information on the proportion of jobs at low, moderate and high risk of vulnerability to
automation, and the Regional Jobs Vacancy Map showing the number and type of jobs being
advertised per region around Australia. This continues to be the most popular of the RAI’s online
tools and is updated monthly to show where jobs are located across regional Australia and what
they are.

2019-2020:                                               National Awareness Campaign is creating a movement to appeal to everyday
                                                         Australians living in our major cities to consider making a move to the regions.
FROM RESEARCH TO ACTIVATION
                                                         LIZ RITCHIE, CEO, NATIONAL CABINET, RURAL AND REGIONAL COMMITTEE DECEMBER, 2020

Each year, the RAI has continued to produce ground-breaking research and myth-busting reports on
regional Australia and developed new initiatives. 2019-2020 was one of its busiest and most
impactful periods, attracting significant media attention around the country.
The 2019 Shared Inquiry conducted in-depth research into the Future of Regional Jobs, analysing
the employment prospects in regional Australia of two important industries: tourism and health. The
work profiled innovative practices in lifting the local workforce contribution to major projects in
remote regions. The Inquiry also conducted research on the theme of Mid-Sized Towns, reflecting
the predominance of such towns across regional Australia, their vital importance in regional
economies, and their different historical and future trajectories. Covering the range of 182 towns
and cities with 5,000 to 50,000 residents, this theme filled a gap between the RAI’s work in recent
years on regional cities and small towns.
The RAI continued its work on population. The report, The Big
Movers, Understanding Population Mobility in Regional
Australia unpacked Census data to examine mobility trends
around the country; its findings have dispelled common myths
about regional population decline and provided important
insights into the mobility patterns of millennials. The RAI also
launched the report Population Growth, Are We Ready?
which analysed the economic consequences of alternative
population scenarios that could alleviate Australia’s megacity
future and supercharge regions. The analysis in the report
raises serious questions about the type of future Australia will
have if predicted population growth continues as projected in
the outer suburbs of Sydney, Melbourne, Brisbane and Perth.
It showed that many workers living in outer city suburbs could
be financially better off if they moved to regional Australia.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                                     14
In conjunction with the reports, the RAI released an online interactive tool, MOVE. It combines
average wages with average house prices in Local Government Areas (LGAs), allowing potential
homeowners to find out which areas in Australia give them the best chance of paying off their
mortgage faster.
The reports, together with this unique tool, set the scene for the RAI’s National Awareness Campaign
Move to More to promote the opportunities of living in regional Australia and help drive a
population shift in coming decades. This work was supported and endorsed by the Federal
Government and a growing number of businesses, local governments and community advocates
through our new membership models.
In 2020, the RAI began its journey to bring this campaign to life, with the instigation of the Regional
Australia Council 2031 (RAC2031). The RAC2031 represents a new voice for regional Australia,
bringing together some of the most influential corporate organisations in the country to support the
development, investment and prosperity of regional Australia. The RAC2031 aims to build a
powerful legacy by supporting the RAI to be the central policy voice for regional Australia, to
ensure a paradigm shift which will help regions thrive for decades to come.

REGIONAL AUSTRALIA COUNCIL (RAC) 2031 - MEMBERS

A group of key regional stakeholders, the Regional Activators Alliance (RAA), was also formed by
the RAI, to support the National Awareness Campaign alongside RAC2031. The Alliance provides
critical intelligence to ensure that the campaign is effective and targeted.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                               15
REGIONAL ACTIVATORS ALLIANCE (RAA) - MEMBERS

The RAI also worked to strengthen its role in supporting regional migration. It moved from
information gathering, through migration roundtables and consultations, to activation of its learnings
and research. It launched the publication Steps to Settlement Success: A Toolkit for Rural and
Regional Australia. Based on case studies from around Australia, the Toolkit was designed to be a
practical resource to help regional communities successfully attract and retain migrants. The RAI took
the Toolkit on a roadshow around regional Australia during the year, working with local councils
and communities on population attraction.
2020 will always be remembered as a year that was dominated by the COVID-19 pandemic and
the RAI was at the forefront of providing current advice and information on the effect of the
pandemic on regional Australia. But the RAI also shone a light on the incredible opportunity that
emerged to rebalance our nation’s priorities. The impact of COVID-19 changed the notion of how
we worked in this country – enabling the population to stop, reflect and perhaps “rethink regional”.
It presented a historic moment to move towards building a truly national workforce, where location
was no longer a barrier. The RAI continued to advocate the benefits of a life in regional Australia
and its work helped to convince more metropolitan Australians to move to, or connect with, the
regions.

                                               Much of the RAI’s focus has always been on pushing the boundaries for regional
2021:                                          Australia, testing and modelling to see what can be done better and identifying
                                               pathways for maximising potential. The RAI asks the hard questions and challenges
TOWARD REGIONALISATION                         Australian leaders to make real change, change that benefits our regions.
                                               CHRISTIAN ZAHRA, INTERIM CHAIRMAN, RAI NATIONAL SUMMIT 2021

March 2021 saw the official launch of Move to More which is based on quantitative and qualitative
research as to the motivations of metro-based Australians when considering the move to regional
Australia. The RAI research, released in February 2021 post COVID-19, showed that one-in-five
metro residents in Melbourne, Sydney, Brisbane and Perth, were considering a move to regional
Australia. Half of that number wanted to make the move in the next 12 months.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                                        16
The multi-million-dollar campaign was launched at the RAI’s 2021 National Summit, Growing
Regional Australia: Shaping the Good Life. The Summit is the flagship event in the RAI event series
Regions Rising. This event links all levels of government, business and the community sector to ensure
a collaborative and future-focused discussion that will help inform and engage our leaders as we
move toward the regionalisation of Australia.
The RAI’s work over the past decade has positioned the Institute as Australia’s leading organisation
on regional issues. It is now time to use the past learnings to create real change, a societal shift in
Australia that ends the traditional metro-centric narrative and positions regions in their rightful
place in the Australian story. Regionalisation is more than an agenda on decentralisation; it’s an
ambition to grow and ensures that regional businesses and communities more than just survive, they
can thrive. Regionalisation will create a more equitable, balanced, attractive and prosperous future
for all Australians, not just those who live outside the city limits.

To lead the regionalisation of the nation, the RAI is launching a National Regionalisation Framework,
that focuses on strengthening regional Australia for the benefit of the whole nation. Key partners in
this work will be the RAC2031, which is growing and becoming an important voice in Australia, as
well as the RAA, composed of regional stakeholders. It will undertake a deep dive into the regional
policy landscape using RAI’s knowledge and the existing body of work from government and other
relevant bodies to build the framework for decision-making and benchmarking.
It will call for government, corporate Australia and regional voices to focus policy attention and to
create real change for the benefit of our regions. Our work over the decade shows that regional
Australia has boundless potential but that it is not always being realised.

As more people choose to live and work in regional Australia, there will necessarily be a
corresponding shift in the allocation of government resources and policy attention, giving regional
Australia the tools that it needs to continue to grow.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                               17
Regional Australia already underpins the Australian economy and its contribution to the economy
will be strengthened as regions flourish. Increased movement to regional Australia will help address
some of the current workforce challenges and will incentivise investment in infrastructure and
services, such as housing, health care and education. Improving facilities and services will, in turn,
lead to further interest in the opportunities in regional Australia, leading to a “virtuous circle”
enriching the regions. In 2021, the RAI harnessed the need for many regional towns to strengthen
and showcase their liveability, in order to have the services and lifestyle which will attract new
residents. Its Liveability Toolkit is a practical resource for regional communities to best plan ways to
improve liveability.
The RAI is set to continue to broaden its scope and role as a thought-leader on regional issues,
providing evidence-based policy recommendations to decision-makers. It will expand its work in
bringing together key stakeholders for consultations and events, ensuring that a diversity of voices is
being heard. It remains committed to ensuring that the national discourse amplifies regional issues
and to shaping the narrative on regional Australia.

                                                  LIVEABILITY TOOLKIT

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                18
REGIONALISATION –
REBALANCING OUR NATION

                                                         The RAI has now conducted ten years of prolific
                                                         research, analysis and debate on a wide range
                                                         of issues relevant to regional Australia. It has
                                                         helped unlock growth potential, shifted the
                                                         narrative, impacted policy to the benefit of
                                                         regions and brought the conversation on
                                                         regional Australia to the forefront of the
                                                         national agenda.

                                                         Difficult as it is to succinctly distil 10 years of
                                                         policy recommendations, there are some clear
                                                         overarching themes which have emerged from
                                                         the RAI’s work.

                                                         These are:

                                                           1.   POPULATION
                                                           2.   JOBS AND SKILLS
                                                           3.   LIVEABILITY
                                                           4.   LEADERSHIP
                                                           5.   PRODUCTIVITY AND INNOVATION
                                                           6.   SUSTAINABILITY AND RESILIENCE

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                    19
REGIONALISATION –
REBALANCING OUR NATION

POPULATION

Australians are already “voting with their feet” and are looking to alternate opportunities offered
in regional cities and towns. This shift is due, in part, to the challenges facing capital cities in
keeping pace with improved infrastructure, increased services, and equitable access to housing. The
trend has been significantly boosted by the COVID-19 pandemic which, in some states, has
prompted significant movement from capital cities but equally ensured that regional people also
stayed in place.
However, COVID mobility patterns aside, once vaccination rates rise the population settlement
patterns will again be skewed towards the major cities. If we continue with the longer-term patterns
of settlement, most of our future population will reside in our major capital cities, while regional
areas will experience only modest levels of growth. In 2019, capital city growth accounted for
79% of Australia’s total population increase. The RAI’s population modelling shows that, by 2056,
Sydney and Melbourne will approach global megacity status, with populations of 9.3 million and
10.2 million respectively. Brisbane and Perth are projected to grow to the scale of Sydney and
Melbourne today. Most future population growth will be in the outer suburbs, whose populations in
Sydney, Melbourne and Perth are expected to more than double. In Brisbane, the outer suburban
population is expected to nearly triple. Commute distances in outer Sydney and Melbourne will
increase to around 60% and close to 25% in Brisbane and Perth. Yet population growth is needed
in regional Australia, bringing skills and filling workforce shortages.
The RAI has highlighted the significance of international migration and that, in some cases, it is the
major source of population growth. This important aspect to regional population growth needs to be
further supported. The RAI recommends building on the work that has been done in a growing
number of regional communities that have successfully attracted international migrants through the
development of place-based attraction and retention strategies.
To allow regions to grow and attract new residents, there needs to be a more equitable investment
in their infrastructure and services to build appealing, adaptable and viable communities that
people want to live in and contribute to in the long term. Such policies would be instrumental in the
transformation of regional Australia.
The RAI wants to change Australia’s current trajectory of packed mega-cities and actively work
towards a more even population distribution. It continues its call for decision-makers to prioritise
regional Australia and divert future growth to the regions. Equally, industry has a role to play in
maximising opportunities for remote and flexible work, allowing more people to take advantage of
the lifestyle opportunities in regional Australia.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                              20
The RAI’s work in this area has led to the national awareness campaign, MovetoMore, in recognition
that a more dispersed population will have multiple benefits. It will reduce pressure on cities, help
bring workforce and skills to regional Australia and, by having more people accessing services such
as schools, will increase funding allocations for those services in regional Australia. The National
Regionalisation Framework will further build on the campaign and detail the actions that could be
taken to achieve a population shift.

JOBS AND SKILLS

The RAI’s examination of job vacancies across Australia consistently shows that, every month, there
are thousands of jobs in regional Australia and that the figures are growing at a faster rate than in
metropolitan areas. The most in-demand skills are well paid, being mid- to high-skilled professionals
and mid- to high-skilled trades.
However, the similarity in the mix of job vacancies across regions means that suitable workers have
the option of moving almost anywhere in Australia. This means that regions are competing with
other regions to attract workers with similar skills and that workers have the ability to choose places
with the greatest appeal. Normally, in a functioning labour market, population growth would follow
these high labour demand growth rates and unemployment in a region should fall. However, current
regional vacancy trends show that the regions with the highest vacancy growth rates usually have
the lowest population growth rates, highlighting the difficulties many inland regions are having in
attracting and retaining the workers needed.
Australia needs people in overcrowded cities to see the opportunities in regional Australia and
make the move. This includes both Australian-born residents and international migrants as outlined in
the Population section above. However, Australian communities also need to “grow from within”.
Rebuilding regional learning options in both the VET (trades) and tertiary sectors is critical to the
growth of regional Australia.
Better regional skilling pathways would, over time, enable local residents to build the skills they
need to enter the workforce and continue to develop their skills through their working lives. It would
position them for better jobs, in the places they already know. Moving up the qualification ladder
will bring an increase in real wages; an increase that will be secure for the long term. Improving
access to post-school training for regional residents must be an important priority for regional
development.
Aligning skill supply with skill demand requires proactive and innovative education and training
practices that involve a wide range of participants such as employers, young people, educators,
trainers, older job seekers and even families and communities more broadly.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                               21
It also requires that regional development actors and agencies assist with regeneration and job
stimulus. This more inclusive, systemic approach to targeted skills development needs to monitor and
forecast trends within the labour market (particularly the need for replacement workers), the
education and training market as well as how skills are being used and sourced.

Addressing the chronic workforce shortages and ensuring skills for the future are important elements
of the National Regionalisation Framework.

LIVEABILITY

Australian residents are demonstrating a willingness to live in the diverse regions that regional
Australia has to offer. Regional populations are growing based on their existing services,
accessibility and infrastructure, yet in order for regions to continue to grow and attract new
residents, there needs to be a more equitable investment in their infrastructure and services to build
appealing, adaptable and viable communities that people want to live in and contribute to in the
long term.
Regional leaders are calling for regional policy development to be more than the implementation
of large infrastructure projects such as road and rail. Instead, leaders want education and skills
development of regional residents to be a priority. The real driver of growth in regions in the 21st
Century is people, their skills and how they work together. This means that ‘soft infrastructure’ like
education, investing in skills to use digital and connective technology, improving a community’s
capacity to collaborate and to deliver services is just as important as bricks and mortar.
While people choose to move to regional areas for economic and employment-related reasons,
other factors also influence these mobility decisions such as the ‘liveability’ of the location. Quality
child-care, employment opportunities for spouses, accessible health care and education for children
are all central to ensuring families and young people stay or move to the regions.
The RAI continues to call for critical infrastructure to be in place in regions and to expand access to
services such as health and education. Housing is a challenge in many, if not most, parts of regional
Australia and real change is needed to address this issue.

LEADERSHIP

The vastness and diversity of regional Australia necessitate place-based approaches to planning
and decision-making. There is no “one-size-fits-all” approach to regional development for Australia
and any attempts to generalise about the needs of regional Australia are bound to fail. Rather,
targeted initiatives that take into account the actual needs and contexts at a local level are
needed.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                                22
To prosper into the future we need to shift our thinking on what matters to regions and empower
them to make decisions and respond to change. The RAI has long called for a changed national
approach to regional development. Central to this is the idea that local leaders are empowered to
make decisions on priorities, which are then endorsed and resourced at the federal level. Regions
are best placed to understand and secure their own interests. They are their own greatest vehicle of
change and future well-being.
At the same time, our national leaders need to ensure that the interests and needs of regional
Australia are not an afterthought, or the domain of one party. Regional Australia is the heart of
Australia is so many ways, yet much policy attention remains metro-centric.
Further, allowing flexibility in the way that policies are delivered would bring about better results
across diverse regional and remote areas of the country. Flexible methods require a rebalancing
away from the current emphasis on programs that seek to maximise economies of scale, towards
recognising the importance in smaller regional communities of the value of economies of scope.
Economies of scope are found when different services are bundled together for more effective local
impact. This reflects a shift in focus away from the blanket polices that often seek to ease the
burden of administrative functions, towards the place itself, and towards the intended outcomes of
the intervention.

PRODUCTIVITY AND INNOVATION

Regional Australia is central to the next phase of the Australian economic story. It already plays a
big role in national productivity, leading in some sectors, yet not reaching its potential in others.
National productivity growth will be enhanced, and lopsided growth avoided, if economic policies
can leverage the sectors where regional Australia is leading, while simultaneously addressing the
sectors being held back.
Regional economies have extraordinary growth potential and have demonstrated their resilience
through disaster and external shocks. Promoting growth in all regions is crucial to optimising growth
in the national economy and opportunity for all Australians.
It is clear that regional Australia’s economy is changing. The concentration of growth in mining
regions which was driven by unprecedented corporate investment is giving way to a more diverse
picture. Key industries such as agriculture, gas and tourism are predicted to underpin Australia’s
future prosperity and are driven by economic activity in the regions. Unlike the mining boom where
sources of growth were highly concentrated in particular regions, the next phase of opportunities
for growth are spread more widely. Australia is relying on regional Australia to be up for this
challenge and to take the lead in realising Australia’s future economic opportunities.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                             23
To do this, regions must be equipped with the knowledge and tools to understand their unique risks
and opportunities and lead their own development. Understanding the range of potential futures
that a region’s size, industry and proximity can provide, as well as insight into community
aspirations and capacity, will allow regional leaders to determine the most effective ways to ensure
that their region grows and prospers.
The RAI’s research shows that there are substantial productivity gains to be had in regional cities
which have agglomeration opportunities yet to be tapped. But innovation is also needed, to expand
regional Australia’s economic base and create new jobs in new industries, especially as increasing
capital intensity in primary and extractive industries like agriculture, forestry fishing and mining
have seen steady reductions in the number of workers needed to produce a unit of output.
More can be done to support regions to maximise their economic potential for the benefit of the
nation as a whole and, through the National Regionalisation Framework, the RAI will continue to
take a leading role in drawing attention to the significant opportunities for our regions.

SUSTAINABILITY AND RESILIENCE

In these times of significant external and internal shocks, we need to future-proof regional Australia,
ensuring that growth and development are sustainable. This involves support for transitioning
industries as reliance on fossil fuel decreases as well as taking action to minimise the impacts of
climate change.
Regional Australia regularly faces a variety of natural disasters, most frequently bushfire, drought
and flood. Recovering from such events takes time and resources. The RAI’s research has highlighted
the strong sense of community in rural and regional Australia and the commitment of communities to
bounce back from disasters. Within a resilience framework that emphasises positive adaptation in
the face of disaster impacts, “bouncing back” is not enough. Adapting to the new normal needs to
become an integral aspect of recovery planning. This will make regional communities stronger and
better prepared for future shocks.
It also needs to be recognised that the recovery process is more than simply reconstruction or
rebuilding. Recovery is a long-term undertaking, comprising overlapping stages in a process of
renewal and adaptation to a new equilibrium.
The importance of engaging local government, community leadership and effective communication
has been showcased by the RAI in case studies. The recovery process must link the community with
local authorities, other elected representatives and community leaders to assist with the
dissemination of information to the public. Local authorities which do not effectively engage with
and involve the local community and community organisations not only risk their alienation from the
process but also the loss of local knowledge, innovation, enthusiasm and the determination of those
local groups.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                               24
Business resilience is sometimes overlooked or not as well supported as community resilience, yet it is
equally vital. Particularly in rural and regional areas, businesses form the central element of a
community, providing jobs, income and underpinning economic vitality. Without a strong and diverse
economy, a disaster-affected community cannot recover, and beyond that positively adapt, to the
impacts of a disaster. Businesses affected by disasters suffer two compounding impacts – there is
the initial loss of cash flow due to business interruption which is compounded by costs to repair
damages. In addition to businesses directly harmed by the disaster, businesses in the surrounding
regions reported negative impacts on their performance due to broader negative flow-on effects.
The RAI has found that pre-existing conditions in a community combined with the disaster impacts
had a significant bearing on the trajectory, challenges and support needs in the recovery and
adaptation process. Once again, there is no “one size fits all” when it comes to regional Australia.
Recovery strategies need to be tailored to the context-specific nature of the community and the
disaster impacts. Regional Australia needs to be better equipped for external shocks as it continues
to bear the brunt of natural disasters. This also includes supporting measures to tackle climate
change and improve the sustainability of regional industries.

REGIONAL AUSTRALIA INSTITUTE   A DECADE OF ACHIEVEMENT                                               25
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