Establishes Tourism Australia as a Commonwealth corporate entity with a Board of Directors and a Managing Director (see s5, s9, s43).
Gives Tourism Australia a clear mission: promote Australia to international and domestic travellers, encourage travel within Australia (including for events), support sustainable tourism and increase tourism's economic benefits (s6).
Sets out Tourism Australia’s functions (marketing, research, reporting, industry communication) and broad powers to contract, hold property, obtain sponsorship, give financial assistance and charge for services (s7, s8).
Who it affects
The Australian Government (through appropriations, ministerial appointment and oversight powers).
The Tourism Australia Board, its Managing Director, employees and consultants (appointment, duties, remuneration and accountability provisions in Parts 3–5).
The Australian tourism industry and State/Territory tourism authorities (required to be consulted on plans; recipients of promotion, research and possible financial assistance) (s33(4), s36(3)).
Providers of goods and services that Tourism Australia contracts with (procurement and sponsorship powers) and recipients of grants/assistance.
How it works mechanically
Funding: Parliament appropriates money to Tourism Australia; the Finance Minister can direct timing/amounts (ss57, 57(2)). Tourism Australia’s other receipts are also its money (s58).
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Governance: the Board (Chair, Deputy Chair, Managing Director and 6 other members) sets policy and ensures efficient performance; the Minister appoints members (except the Managing Director) and has specified powers to terminate appointments (Parts 3 and 5; ss12–21, 45–54).
Plans and oversight: the Board must prepare a corporate plan and an annual operational plan and consult State/Territory tourism authorities; the Minister considers and may endorse those plans and may request explanations (ss33–37). The Board must, so far as practicable, act consistently with the current plans (s38).
Ministerial directions: the Minister may give written directions in exceptional circumstances; directions must be preceded by notice and discussion with the Chair, must be published in the Gazette and laid before Parliament, and the Board must comply (s40).
Limits and constraints: Tourism Australia may do most things necessary to perform its functions but must not carry on business as a travel agent (s8(3)). Contracts above $3,000,000 and leases of 10+ years require Ministerial approval (s59).
Accountability: annual reports must cover implementation of the annual operational plan and significant property or capital activities; directions and their impacts must be reported (s39, s40(5)). The Public Governance, Performance and Accountability Act 2013 (PGPA Act) applies to Tourism Australia for corporate Commonwealth entity rules (note at s5).
Purpose claims and how they map to mechanisms
Claimed purpose: increase inbound and domestic travel, spread visitor flows within Australia, and raise economic benefits from tourism (s6, s7). Mechanisms to achieve that include marketing, research, cooperation with industry and governments, funding of programs and the ability to accept sponsorship and provide assistance (ss7, 8, 59).
Accountability & control mechanisms: Board-appointed management, statutory planning and Ministerial endorsement/ direction (ss33–38, s40) create a chain where the Board runs operations but the Minister has formal oversight and limited intervention powers.
Costs, incentives and trade-offs (practical effects)
Who pays: taxpayers via Parliament (s57). The finance flows are public and governed by PGPA processes (s57 note).
Who decides: the Minister appoints Board members and can direct the Board in exceptional circumstances (s13, s40); the Board sets policy and the Managing Director runs day-to-day operations under Board direction (ss10, 44).
Incentives for private sector: Tourism Australia can contract with and pay private marketing and research firms, obtain sponsorship and provide financial assistance — creating commercial opportunities for suppliers (s8(2)(a), (k), (m)). It can also charge for services, which can put it in market-facing roles (s8(2)(l)).
Limits on market activity: explicit prohibition on operating as a travel agent (s8(3)) reduces direct competition with travel agencies, but Tourism Australia’s marketing and service-provision roles could compete with private marketing firms for contracts.
Concentrated benefits vs. diffuse costs: benefits (contracts, sponsorship, grant recipients) are likely concentrated among tourism operators, marketing agencies and partners; costs (appropriations) are borne by taxpayers broadly (ss57–58). Appointment and remuneration benefits accrue to Board members and the Managing Director (ss17, 48).
Compliance and administrative burden: statutory requirements to prepare, consult on and obtain endorsement for corporate and annual operational plans (ss33–37), to report in detail (s39), and to observe PGPA Act rules create ongoing administrative work and central oversight.
Implementation risk and bureaucratic discretion: broad drafting of functions and powers (s7, s8) gives the Board and Management discretion about exact activities. The Minister’s power to direct (s40) and to approve large contracts/leases (s59) creates potential intervention points that can shift priorities or slow high-value transactions.
Other practical points
Delegation: the Board and Managing Director may delegate functions to staff or members with suitable expertise (ss62–63), which lets the entity operate flexibly but places reliance on internal controls and records.
Transparency: ministerial directions must be published and tabled in Parliament (s40(4)), and annual reports must disclose the direction’s impact (s40(5)), supporting parliamentary and public oversight.
(References in parentheses are to the section numbers from the Act.)