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Regionalisation Ambition 2032 - Year 1 Progress Report

The Regionalisation Ambition 2032 – Year 1 Progress Report outlines Australia's progress toward rebalancing national growth by strengthening regional communities.

1.09.2023 | Research Report

Overview

The report marks the first annual review of progress toward the RAI’s Regionalisation Ambition 2032, a national framework designed to “rebalance the nation” by strengthening regional Australia. The Ambition is built around five pillars—Jobs & Skills, Liveability, Population, Productivity & Innovation, and Sustainability & Resilience—each with specific targets to be achieved by 2032. In its first year, the report shows positive movement in areas such as education attainment, digital inclusion, childcare access, and migration to regional areas. However, challenges persist in housing availability, recruitment difficulty, and access to health services.

The report highlights that regional job vacancies remain high, with 69% of employers reporting recruitment difficulties. School attainment and post-school qualification rates have improved slightly, but still lag behind metropolitan areas. Regional wellbeing scores have increased, and digital inclusion is improving, though gaps remain for very remote and Indigenous communities. Population growth in regional areas continues, with capital-to-regional migration reaching its third-highest level in five years.

The RAI launched the National Alliance for Regionalisation, uniting 34 peak bodies to drive collective action. Numerous local initiatives and pledges, from housing developments to youth employment programs, are showcased as examples of grassroots momentum. The report also outlines policy progress, including federal investments in skills, housing, connectivity, and renewable energy. It calls for continued collaboration across government, industry, and communities, and proposes a National Population Plan to guide future growth.

Overall, while progress is uneven, the report reflects growing national recognition of the importance of regional Australia and a strong foundation for future action.

Key Findings

Here are the key insights from the Regionalisation Ambition 2032: Year 1 Progress Report by the Regional Australia Institute:

Strategic Framework

  • The Regionalisation Ambition 2032 is a national framework with 5 pillars and 20 targets aimed at rebalancing Australia by strengthening regional areas.
  • It is co-designed with stakeholders across government, industry, and community, and is tracked annually.

Progress Highlights

  • Recruitment difficulty in regional areas remains high at 69%, above the target of 40%.
  • Skilled workforce share in regions is 73.2%, still short of the 80% target.
  • School attainment and post-school qualification rates have improved slightly but still lag behind metro areas.
  • Life satisfaction and wellbeing scores in regional areas are higher than in cities.
  • Digital inclusion is improving but remains lower in very remote and Indigenous communities.

Liveability & Infrastructure

  • Housing shortages persist: rental vacancy rates are still well below the 3% target.
  • Access to public transport and medical practitioners remains limited in many regions.
  • Childcare deserts are shrinking, with a 5.2% increase in services in regional areas.

Population & Migration

  • Regional population grew from 9.5M to 9.6M in 2022.
  • Capital-to-regional migration remains strong, with 1 in 5 city dwellers considering a move.
  • Overseas migrant settlement in regions rose slightly to 18.5%, still far from the 40% target.

Productivity & Innovation

  • Regional contribution to national output is stable at 35.5%.
  • Workforce participation rose slightly to 63.9%, still below the 68% target.
  • Modest increases in new business entries and trademark registrations were recorded.

Sustainability & Resilience

  • Over 50% of renewable energy jobs are now in regional Australia.
  • Disaster resilience capacity is uneven—only 10.4% of remote areas have moderate to high resilience.
  • The Powering the Regions Fund and Net Zero Authority are key federal initiatives supporting transition.

Collaboration and Community Action

  • The National Alliance for Regionalisation was launched with 34 peak bodies.
  • Over 60 pledges from organisations support the Ambition’s goals.
  • Local initiatives, such as housing projects, youth employment programs, and digital inclusion efforts, are gaining traction.

Policy Recommendations

National-Level Recommendations

Recommendation 1
Develop a National Population Plan 

  • Embed regional Australia's role in national growth.
  • Use place-based planning to guide migration, infrastructure, and service delivery.

Recommendation 2
Implement a Regional Investment Framework 

  • Coordinate cross-government investment across four priority areas: people, places, services, and industries/local economies.

Recommendation 3
Support the Net Zero Transition 

  • Expand funding for clean energy industries and workforce development.
  • Strengthen disaster resilience planning and infrastructure.

Recommendation 4
Advance the Regional Data Hub 

  • Improve access to timely, place-specific data for decision-makers.
  • Address gaps in education, health, transport, and innovation metrics.

Education & Skills Development

Recommendation 5
Boost Access to Vocational and Higher Education 

  • Expand Regional University Centres and VET placements.
  • Support underrepresented groups, including First Nations and low-SES students.

Recommendation 6
Strengthen School-Industry Linkages 

  • Fund regional STEAM programs and school-based apprenticeships.
  • Promote local career pathways through targeted campaigns.

Housing & Liveability

Recommendation 7
Address Regional Housing Shortages 

  • Establish regional housing offices and development assistance programs.
  • Encourage innovative housing models (e.g., co-operative builds, multi-purpose accommodation).

Recommendation 8
Improve Childcare Access 

  • Halve the population living in childcare deserts.
  • Support workforce re-engagement of qualified childcare professionals.

Migration & Inclusion

Recommendation 9
Design a Place-Based Migration Strategy 

  • Increase the share of migrants settling in regional areas to 40%.
  • Support migrant resettlement programs and community integration initiatives.

Recommendation 10
Advance Equity for First Nations Australians 

  • Align regional development with Closing the Gap targets.
  • Support the Voice to Parliament and reconciliation efforts.

Innovation & Productivity

Recommendation 11
Support Regional Entrepreneurship 

  • Invest in innovation hubs and digital clusters.
  • Promote regional business growth through funding and mentorship.

Recommendation 12
Measure and Incentivise Innovation 

  • Develop a more frequent and granular index of regional innovation.
  • Track business entries, trademarks, and owner-manager activity.