Generosity: a comparative view of Perth

FACTBase  Bulletin 41, November 2014

Generosity: A Comparative View of Perth Kirsten Martinus and Paul J. Maginn

Australia is the 7th most generous nation according to the Charities Aid Foundation (2013) World Giving Index with an overall index score of 55%. Those nations more generous than Australia include: the USA (61%); Canada (58%); Myanmar (58%); New Zealand (58%); Ireland (57%); and, the UK (57%). The World Giving Index is based on three criteria: (i) helping a stranger; (ii) donating money; and (iii) volunteering time. In terms of financial generosity (i.e. donating money) Australia (67%) outperformed the USA (62%) and matched New Zealand. Social analyst David Chalke1 noted that being charitable is ‘at the absolute heart of being Australian’ in that ‘[i]t’s all part of fair go, mateship and giving a helping hand’. So, how generous are Western Australians? More specifically, what is the spatial distribution of generosity within the Perth metropolitan region? This FACTBase draws on Australian Taxation Office (ATO) annual personal income data by postcodes for the financial year 1 ‘Australia on top of World Giving Index’. News Limited, August, 27, 2013. http:// www.news.com.au/finance/money/ australia-on-top-of-world-giving-index/ story-fnagkbpv-1226705241101 (last accessed November 6, 2014).

that generosity in Melbourne and Perth was roughly the same at $495 and $477 per giver respectively. There was a significant difference, however, in the level of average donations per taxpayer in Melbourne ($225) and Perth ($162).

2011/12 in order to highlight the number and total value of gifts or donations made by Australians. In particular, it compares levels of generosity at the inter-metropolitan scale before analysing intra-city patterns of generosity across the 40 SLAs within the Perth and Peel metropolitan region. ATO postcode data is converted to Statistical Local Areas (SLA) using Australian Bureau of Statistics (ABS) concordance files.

Figure 1 shows that Sydney remained the most generous city in terms of the average amount donated by givers and taxpayers in 2011/12. Notably, however, the dollar value of donations from ‘Sydneysiders’ had fallen to $705 per giver or $305 per taxpayer – a decrease of 42 percent on 2007/08 levels. This fall in donations reflects the impact of the global financial crisis on the financial and business sector dominating Sydney’s industry market structure.

National comparisons FACTBase 19 (Tonts, 2010) showed that Sydney was the most generous metropolitan city region in 2007/08 with donations averaging $1,223 per giver or $527 per taxpayer. Data for the same year showed

Figure 1: Gifts and Donations in Major Australian Cities, 2011/12 800 700 600 Dollars ($)

Introduction

500 400 300 200 100 0

Perth

Adelaide

Sydney

Melbourne

Average given/donated per giver

Hobart

Darwin

Canberra

Brisbane

Average given/donated per taxpayer

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Bulletin 41, November 2014

Even more interesting is the fact that the level of donations in Melbourne increased to $565 (up 15.9%) per giver and $258 (up 14.6%) per taxpayer between 2007/08 and 2011/12. Perth also experienced an increase in donations with average per giver and per taxpayer donation levels increasing by 16.5% (to $556) and 27.1% ($206) respectively during the same period. Perth ranked the third most generous metropolitan region in terms of average donations per giver and was edged into fourth place in terms of per taxpayer donations by Canberra. These results are interesting within the context of FACTBase 36 (Martinus, 2014a) which explored disparities in the mean taxable income between Australia’s capital cities. In the period leading up to the 2008 Global Financial Crisis, Sydney workers earned more on average than those in other cities; hence they tended to donate more. Perth and Melbourne workers earned the second and third highest mean incomes respectively. Whilst all capital cities demonstrated increases in mean incomes between 2008 and 2012, Perth’s incomes rose exponentially post-GFC compared to the slower income rises in other Australian cities. For the period 2005-2012, the mean taxable income in Perth increased by 64% compared to increases of 40% and 38% in Melbourne and Sydney respectively. Whilst the increase in Perth’s relative mean income contributed to an increase in donations on both the per giver (16%) and per taxpayer (27%) fronts, the rate of increase in generosity might have been higher if not for substantive

increases in Perth’s cost-ofliving (see Martinus 2014a) which curtailed growth in actual wealth.

Geography of generosity across Metropolitan Perth and Peel How much of their income do people in Perth give to charity? What proportion of the population (i.e. taxpayers) actually make charitable donations? And, where do Perth’s most/least generous people live?

In fact, a closer analysis of the spatial trends in giving shows that the levels of taxable income gifted actually fell across the majority (n=33) of SLAs between 2007/08 and 2011/12. Mosman Park was amongst the ‘top 5’ SLAs that experienced the largest percentage falls in taxable income gifted between 2007/08 and 2011/12. The other four SLAs were scattered throughout the metropolitan region and included: (i) Perth – Remainder (-54.17%); (ii) Joondalup – South (-48.84%); (iii) Armadale (-31.58%) and (iv) Mundaring (25.93%).

Table 1 highlights the percent of taxable income gifted in 2007/08 and 2011/12 at the SLA level. In overall terms, people in Perth contributed an average of 0.30% of their income in 2007/08. This increased to 0.45% by 2011/12 – a per cent change of 17.95%. The levels of taxable income gifted in 2007/08 ranged from a low of 0.12% in Waroona to a high of 1.20% in Mosman Park. By 2011/12 Waroona still had the lowest level of taxable income gifted at just 0.10%. Mosman Park was surpassed by Cottesloe (4.59%) and Peppermint Grove (4.66%) as the most generous SLAs in 2011/12 – this represented increases of a staggering 617.19% and 628.13% respectively on income gifted in 2007/08 in both these SLAs. Whilst the ‘top 5’ most generous SLAs – Peppermint Grove, Cottesloe, Mosman Park, Claremont and Nedlands – remained the same in 2007/08 and 2011/12 and were all based in the wealthy ‘western suburbs’. The proportion of taxable income gifted in the latter three SLAs fell by 39.17%, 12.07% and 8.62% respectively.

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Bulletin 41, November 2014

Table 1: Taxable Income Gifted by SLA in 2007/08 and 2011/2012 % Taxable income gifted in 2007/08

% Taxable income gifted in 2011/12

Absolute change

Per cent change -31.58

Armadale (C)

0.19

0.13

-0.06

Bassendean (T)

0.20

0.20

0.00

0.00

Bayswater (C)

0.20

0.19

0.01

5.00

Belmont (C)

0.18

0.16

-0.02

-11.11

Cambridge (T)

0.33

0.25

-0.08

-24.24

Canning (C)

0.22

0.21

-0.01

-4.55

Claremont (T)

0.58

0.51

-0.07

-12.07

Cockburn (C)

0.16

0.15

-0.01

-6.25

Cottesloe (T)

0.64

4.59

3.95

617.19

East Fremantle (T)

0.23

0.25

0.02

8.70

Fremantle (C) – Inner

0.31

0.23

-0.08

-25.81

Fremantle (C) – Remainder

0.30

0.23

-0.07

-23.33

Gosnells (C)

0.18

0.17

-0.01

-5.56

Joondalup (C) – North

0.17

0.16

-0.01

-5.88

Joondalup (C) – South

0.43

0.22

-0.21

-48.84

Kalamunda (S)

0.18

0.18

0.00

0.00

Kwinana (T)

0.15

0.13

-0.02

-13.33

Mandurah (C)

0.14

0.14

0.00

0.00

Melville (C)

0.29

0.23

-0.06

-20.69

Mosman Park (T)

1.20

0.73

-0.47

-39.17

Mundaring (S)

0.27

0.20

-0.07

-25.93 -8.33

Murray (S)

0.12

0.11

-0.01

Nedlands (C)

0.58

0.53

-0.05

-8.62

Peppermint Grove (S)

0.64

4.66

4.02

628.13

Perth (C) – Inner

0.21

0.23

0.02

9.52

Perth (C) – Remainder

0.48

0.22

-0.26

-54.17

Rockingham (C)

0.17

0.14

-0.03

-17.65

Serpentine-Jarrahdale (S)

0.19

0.15

-0.04

-21.05

South Perth (C)

0.35

0.26

-0.09

-25.71

Stirling (C) – Central

0.23

0.20

-0.03

-13.04

Stirling (C) – Coastal

0.26

0.21

-0.05

-19.23

Stirling (C) – South-Eastern

0.33

0.34

0.01

3.03

Subiaco (C)

0.42

0.35

-0.07

-16.67

Swan (C)

0.17

0.16

-0.01

-5.88

Victoria Park (T)

0.23

0.18

-0.05

-21.74

Vincent (T)

0.26

0.25

-0.01

-3.85

Wanneroo (C) – North-East

0.21

0.22

0.01

4.76

Wanneroo (C) – North-West

0.17

0.15

-0.02

-11.76

Wanneroo (C) – South

0.19

0.16

-0.03

-15.79

Waroona (S)

0.12

0.10

-0.02

-16.67

Average

0.30

0.45

0.15

17.95

Median

0.23

0.21

-0.02

-11.92

Maximum

1.20

4.66

4.02

628.13

Minimum

0.12

0.10

-0.47

-54.17

Standard deviation

0.20

0.98

0.90

141.21

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Bulletin 41, November 2014

Figure 2 highlights the geographical distribution of financial generosity by SLA quartile – (i) Bottom 25% (0.10%0.15%); (ii) Lower middle 25% (0.16%-0.20%); (iii) Upper middle 25% (0.21%-0.26%); and (iv) Top 25% (0.27%-4.66%). To reiterate, the most generous (i.e. top quartile of SLAs) are located within the wealthy western suburbs. Whilst such high levels of generosity are likely to reflect peoples’ efforts to reduce their overall tax burden, it is nonetheless encouraging to see that the wealthiest tend to donate the most. Conversely, the majority in the lowest SLA quartile are located in the southern metropolitan region. Given that the proportion of taxable income gifted tends to Wanneroo North-East increases (Tonts, rise as income 2010) the concentrated spatial pattern of generous donors is hardly surprising. AnalysingSwan Joondalup-North as a proportion of donations income reveals nothing about Joondalup-South Wanneroo-South the willingness of taxpayers Stirling Stirling-Coastal in each SLA to donate to Central 12 13 charities. However, an analysis 11 10 6 7 8 9 of the proportion ofBelmont people (i.e. 4 5 14 2 3 taxpayers) who 15donate money 1 Kalamunda * 16 Canning Melville can provide an insight into the * Gosnells Fremantle-Inner extent of generosity amongst Fremantle - Remainder the wider population. Cockburn

Figure 2: SLA Quartile Distribution of Percentage of Taxable Income Gifted/Donated in 2011/12

1. Mosman Park 2. Cottesloe 3. Peppermint Grove 4. Claremont 5. Nedlands 6. Cambridge 7. Subiaco 8. Perth - Remainder 9. Perth - Inner 10. Vincent 11. Stirling (South-Eas 12. Bayswater 13. Bassendean 14. Victoria Park 15. South Perth 16. East Fremantle

Wanneroo North-West Wanneroo North-East

Swan Joondalup-North Joondalup-South

Wanneroo-South

Stirling-Coastal Stirling Central 10 11

6 3

2 1

4 5

7 8 9

* 161. Mosman Melville Park

15

2. Cottesloe * Fremantle-Inner 3. Peppermint Grove 4. Claremont Fremantle - Remainder 5. Nedlands 6. Cambridge Cockburn 7. Subiaco 8. Perth - Remainder 9. Perth - Inner 10. Vincent 11. Stirling (South-Eastern) 12. Bayswater 13. BassendeanKwinana 14. Victoria Park 15. South Perth 16. East Fremantle

Wanneroo North-West

12

14

Mundaring

13 Belmont Kalamunda

Canning Gosnells

Armadale

Rockingham

Serpentine-Jarrahdale

Mundaring

Mandurah

Murray

Legend

Armadale

% of taxable inco gifted in 2011/12

Kwinana

Bottom 25 Rockingham

Lower mid 25%

Serpentine-Jarrahdale

Upper midd 25% Top 25%

Waroona

0

5

10

20

km

Mandurah

Murray

roo West Wanneroo North-East

Swan

Waroona

Joondalup-North

1. Mosman Park 2. Cottesloe 3. Peppermint Grove 4. Claremont 5. Nedlands 6. Cambridge 7. Subiaco 8. Perth - Remainder 9. Perth - Inner 10. Vincent 11. Stirling (South-Eastern) 12. Bayswater 13. Bassendean 14. Victoria Park 15. South Perth 16. East Fremantle

0

5

10

Legend % of taxable income gifted in 2011/12

Bottom 25% Lower middle 25% Upper middle 25% Top 25%

20

km Joondalup-South

Wanneroo-South

Stirling-Coastal Stirling Central 6

10 11

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Table 2 provides an overview of the proportion of taxpayers in each SLA for 2007/08 and 2011/12 who donated money to some kind of charitable organisation. In overall terms, an average of 35.49% of taxpayers in the Perth and Peel region donated

money in 2007/08, this increased to 36.27% in 2011/12 – a per cent change of 2.29%. A total of 17 SLAs (42%) in both years were below the average proportion of taxpayer donors for the whole metropolitan region.

Table 2: Percent Taxpayers Giving by SLA (Perth) in 2007/08 and 2011/12 % Taxpayers giving in 2007/08

% Taxpayers giving in 2011/12

Absolute change

Per cent change

Armadale (C)

35.12

25.15

-9.97

-28.39

Bassendean (T)

36.65

37.54

0.89

2.43

Bayswater (C)

36.43

37.06

0.63

1.73

Belmont (C)

35.73

35.16

-0.57

-1.60

Cambridge (T)

40.18

39.75

-0.43

-1.07

Canning (C)

37.87

37.68

-0.19

-0.50

Claremont (T)

39.58

40.38

0.80

2.02

Cockburn (C)

34.23

36.10

1.87

5.46 2.38

Cottesloe (T)

37.80

38.70

0.90

East Fremantle (T)

37.31

39.48

2.17

5.82

Fremantle (C) – Inner

36.57

36.43

-0.14

-0.38

Fremantle (C) – Remainder

36.37

37.06

0.69

1.90

Gosnells (C)

36.77

33.63

-3.14

-8.54

Joondalup (C) – North

35.72

36.63

0.91

2.55

Joondalup (C) – South

40.06

41.40

1.34

3.34

Kalamunda (S)

34.10

35.73

1.63

4.78

Kwinana (T)

30.73

32.82

2.09

6.80

Mandurah (C)

30.81

33.44

2.63

8.54

Melville (C)

38.58

39.62

1.04

2.70

Mosman Park (T)

34.93

37.92

2.99

8.56

Mundaring (S)

33.46

34.74

1.28

3.83

Murray (S)

31.39

31.34

-0.05

-0.16

Nedlands (C)

39.33

39.55

0.22

0.56

Peppermint Grove (S)

37.76

38.65

0.89

2.36

Perth (C) – Inner

22.62

23.20

0.58

2.56

Perth (C) – Remainder

28.32

28.93

0.61

2.15

Rockingham (C)

32.55

34.69

2.14

6.57 14.97

Serpentine-Jarrahdale (S)

37.67

43.31

5.64

South Perth (C)

38.02

38.77

0.75

1.97

Stirling (C) – Central

38.03

37.30

-0.73

-1.92

Stirling (C) – Coastal

39.49

40.34

0.85

2.15

Stirling (C) – South-Eastern

38.42

39.94

1.52

3.96 5.09

Subiaco (C)

38.67

40.64

1.97

Swan (C)

33.06

34.80

1.74

5.26

Victoria Park (T)

36.99

36.39

-0.60

-1.62

Vincent (T)

34.24

34.63

0.39

1.14

Wanneroo (C) – North-East

32.91

35.06

2.15

6.53 1.59

Wanneroo (C) – North-West

33.37

33.90

0.53

Wanneroo (C) – South

36.54

37.18

0.64

1.75

Waroona (S)

31.38

35.92

4.54

14.47

Average

35.49

36.27

0.78

2.29

Median

36.49

36.85

0.87

2.37

Maximum

40.18

43.31

5.64

14.97

Minimum

22.62

23.20

-9.97

-28.39

3.56

4.02

2.27

6.49

Standard deviation

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Bulletin 41, November 2014

Figure 3 provides a spatial overview, classified into SLA quartiles, of the proportional distribution of taxpayers who donated money to charity in 2011/12. In overall terms, there is still a relative concentration of generosity within inner-ring SLAs. Again, those located in the western suburbs plus the inner-north coastal SLAs (such as Stirling-Coastal and Joondalup South) were in the top SLA quartile range (39.47%-43.31%). The proportion of taxpayers by SLA who gave money in 2007/08 ranged from a low of 22.62% in Perth – Inner to a high of 40.18% in Cambridge. By 2011/12 Perth – Inner still had the lowest proportion of donor taxpayers (23.2%) although this Wanneroo North-West was up by 2.56% on its 2007/08 Wanneroo North-East Notably, the southperformance. eastern outer metropolitan SLA of Serpentine-Jarrahdale had jockeyed its way into the most Swan Joondalup-North location by 2011/12 generous with 43.31% of taxpayers giving to Joondalup-South Wanneroo-South charity. This was also the fastest Stirling - (14.97%) in givers. Stirling-Coastal rate of increase Central 6

roo West

10 11

12

13

Figure 3: SLA Quartile Distribution of Taxpayers Giving/Donating in 2011/12

Wanneroo North-West Wanneroo North-East

Swan Joondalup-North Joondalup-South

10 11

6 3

2 1

4 5

12

7 8 9

15

* 161. Mosman Melville Park

2. Cottesloe * Fremantle-Inner 3. Peppermint Grove

14

Mundaring

13 Belmont Kalamunda

Canning Gosnells

4. Claremont

Fremantle - Remainder 5. Nedlands

6. Cambridge Cockburn 7. Subiaco 8. Perth - Remainder 9. Perth - Inner 10. Vincent 11. Stirling (South-Eastern) 12. Bayswater 13. BassendeanKwinana 14. Victoria Park 15. South Perth 16. East Fremantle

Armadale

Rockingham

Serpentine-Jarrahdale

Mundaring

Mandurah

Murray

0

5

10

Legend % of taxpayers giving in 2011/12

Bottom 25

Lower mid 25%

Upper midd 25% Top 25%

Waroona

0

5

10

20

km Legend % of taxpayers giving in 2011/12

Bottom 25% Lower middle 25% Upper middle 25% Top 25%

15. South Perth 16. East Fremantle

Swan

Wanneroo-South

Stirling-Coastal Stirling Central

7 8 9 Belmont relatively SLAs that experienced 4 5 14 2 15 3 large increases in the proportion 1 Kalamunda * 16 Melville of taxpayers whoCanning donated to * Gosnells Fremantle-Inner charity were largely from the Fremantle - Remainder southern outer metropolitan Cockburn Armadale region. They included: (i) Waroona,Kwinana up from 31.38% to 35.92% of taxpayers – an increase of 14.47%; (ii) Mosman Rockingham Park, up from 34.93% toSerpentine-Jarrahdale 37.92% – an increase of 8.56%; (iii) Mandurah, up from 30.81% to 33.44% – an increase of 8.54%; and (iv) Kwinana, up from 30.73% Mandurah to 32.82% – an increase of 6.8%. 1. Mosman Park Whilst these increasesMurray cushioned 2. Cottesloe 3. Peppermint Grove the impacts of the relatively 4. Claremont 5. Nedlands lower taxable incomes of the 6. Cambridge 7. Subiaco Wanneroo - southern sub-region between 8. Perth - Remainder North-East 9. Perth - Inner 2007/08 and 2011/12, generosity 10. Vincent 11. Stirling (South-Eastern) in this region still fell below the 12. Bayswater 13. Bassendean 14. Victoria Park metropolitan average Waroona of 36.27%.

Joondalup-North

1. Mosman Park 2. Cottesloe 3. Peppermint Grove 4. Claremont 5. Nedlands 6. Cambridge 7. Subiaco 8. Perth - Remainder 9. Perth - Inner 10. Vincent 11. Stirling (South-Eas 12. Bayswater 13. Bassendean 14. Victoria Park 15. South Perth 16. East Fremantle

20

km Joondalup-South

Wanneroo-South

Stirling-Coastal Stirling Central 6

10 11

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Bulletin 41, November 2014

Conversely, those areas that experienced relatively large decreases in the proportion of taxpayers donating to charity were located in the eastern metropolitan region and included: (i) Armadale, down from 35.12% to 25.15% – a fall of 28.39%; and (ii) Gosnells, down from 36.77% to 33.63% – a decrease of 8.54%. Below average performance of areas such as Kwinana, Mandurah, Armadale, Gosnells, Rockingham and Murray are somewhat expected given that these SLAs tend to have some of the lowest median incomes and highest levels of economic stress across the Perth and Peel metropolitan area (Martinus, 2014a; 2014b).

Conclusions This FACTBase has shown that the landscape of generosity within the Perth metropolitan region is relatively static in overall spatial terms. That is, the wealthier SLAs tend to donate a greater proportion of their incomes to charity. Despite this, there has been a tightening of the proportion of income given to charity across a large number of SLAs since 2007/08 and in the wake of the GFC. Indeed, a simple regression analysis, Pearson’s r, shows that whilst there is an overall strong correlation between mean taxable income and proportion of income gifted/donated, the strength of this correlation has been undercut from 0.834 in 2007/08 to 0.795 in 2011/12 (significance at the 0.01 level). Although there has been widespread contraction of the level of income donated to charity across the SLAs within Perth, the proportion of taxpayers making donations has

been on a general upward trend since 2007. This has arguably helped to off-set the loss of income as a result of people donating less of their income to charitable organisations. The correlation between mean SLA taxable income and proportion of taxpayers gifting/donating money although relatively weak has increased from 0.296 in 2007/08 to 0.335 in 2011/12 (significance at the 0.05 level). Federal and State government public expenditure reductions to retain/regain a AAA credit rating are likely to place fiscal pressures on those charitable organisations contracted to deliver government services. As such we can expect greater and more innovative charity drives from these types of organisations (as well as others) to make up for any financial shortfall as a result of government expenditure cuts. In fact, we are already seeing such a push within the tertiary education sector with universities launching philanthropic campaigns similar to those in the USA. In terms of innovative means of encouraging support and giving, The University of Western Australia, for example, has recently started to use crowdfunding as a means to fund new research projects (www.news.uwa.edu. au/201406266789/research/wacommunity-urged-take-partuniversity-research).

References Charities Aid Foundation (2013) World Giving Index 2013 http://www.news.uwa.edu. au/201406266789/research/wacommunity-urged-take-partuniversity-research (Accessed November 6, 2014). Martinus, K. (2014a) Perth’s Prosperity through the 2008 Global Financial Crisis, FACTBase Bulletin 36, The University of Western Australia and the Committee for Perth, Perth. Martinus, K. (2014b) Economic Stress in Perth: A Matter of Geography, FACTBase Bulletin 38, The University of Western Australia and the Committee for Perth, Perth. Tonts, M. (2010) Perth’s Geography of Financial Generosity, FACTBase Bulletin 19, The University of Western Australia and the Committee for Perth, Perth.

In conclusion, there is likely to be much greater competition for donations from Western Australians into the future. It will be interesting to see how WA’s mining-boom slowdown effects peoples’ willingness to donate, what organisations and causes they will commit to, and the spatial patterns of these impacts.

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Bulletin 41, November 2014

About FACTBase

Copyright

FACTBase is a collaborative research project between the Committee for Perth and The University of Western Australia to benchmark the liveability of Perth and its global connectedness through an examination of Perth’s economic, social, demographic and political character.

This paper is copyright of The University of Western Australia and the Committee for Perth. While we encourage its use, it should be referenced as:

The FACTBase team of academics and researchers condenses a plethora of existing information and databases on the major themes, map what is happening in Perth in pictures as well as words, and examine how Perth compares with, and connects to, other cities around the world.

About the authors

Martinus, K. and Maginn, P.J. (2014) Generosity: a Comparative View of Perth, FACTBase Bulletin 41, The University of Western Australia and the Committee for Perth, Perth.

Acknowledgements The authors acknowledge the assistance of Tony Monaghan from The Brand Agency for editing, Graham Harvey from UniPrint for design and Mei Ruu Kok, a UWA Urban and Regional Planning graduate, for the maps used in this Bulletin.

Kirsten Martinus is an Assistant Professor at The University of Western Australia’s School of Earth and Environment. Her research interests lie in the human geography impact of globalisation and technology.

A complete list of current members is available at:

www.committeeforperth.com.au

Paul Maginn is an Associate Professor and Coordinator of The University of Western Australia’s Urban and Regional Planning programs. His research is focused on planning policy, local government and governance, and the social and cultural dynamics of cosmopolitan cities.

FACTBase Bulletin 41, November 2014 | 8

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