The National Gallery of Australia will receive extra funding to trial sending artworks from its holdings around Australia so more people can see the collection, part of a broad overhaul of national cultural policy.
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The federal government will establish new bodies to support Indigenous artists, musicians and writers, tipping in an extra $286 million over four years to support arts funding.
A six-month consultation will also begin with streaming platforms on local content quotas, with the federal government committed to introducing regulation requiring the platforms to produce Australian films and programs.
Canberra's cash-strapped national collecting institutions will still need to wait until the budget to find out whether they will receive additional support, but the policy acknowledges "long-term neglect of core funding".
The policy - dubbed Revive - will say the government will support new initiatives for the national collecting institutions to share their collections with local and regional institutions.
"A national collection should be displayed and available to as much of the nation as possible. The government will continue to support our national collecting institutions to provide broad public access to their collections, including support for digitisation," the policy will say.
"Revive will introduce a pilot program with the National Gallery of Australia to allow long-term loans of works of art to suburban and regional galleries and cultural institutions across the country - putting the nation's art into the nation."
The gallery will receive $11.8 million for the pilot program to share its collection with galleries around the country.
The gallery's director, Nick Mitzevich, had recommended the plan in a submission to the federal government last year.
"Decentralising existing collections of cultural and collecting institutions through investment in the expansion of loan and touring programs, development of innovative digital programs, and collaboration with partners to connect communities with art and artists are practical initiatives we believe could significantly grow both domestic and international audiences," Mr Mitzevich wrote.
"We want Australians to see their collection as much as they can."
The National Gallery has warned the federal government it may have to close two days a week and introduce entry fees if it does not get a funding boost.
The National Library's Trove system - which provides access to digitised material, including almost seven decades of The Canberra Times online - faces closure without extra funding.
Long-running efficiency dividends applied to the budgets of the cultural institutions have resulted in service cuts and slowed the growth of collections.
Under the new cultural policy - the first in a decade - the federal government has committed to establishing Creative Australia, a new body to manage investment in the arts and advice to government, providing extra funding that it said restored cuts to the arts sector made by the former Coalition government.
The Australia Council, which was established in 1968, will continue to be the governing body of Creative Australia.
Under Creative Australia, the government will legislate to establish four organisations, expanding the government's remit to cover more commercial art forms.
A First Nations-led organisation will give Indigenous people autonomy over funding decisions, while a national Aboriginal art gallery will be established in Alice Springs and an Aboriginal cultural centre will be established in Perth.
Music Australia will support and invest in Australia's contemporary music industry, while Writers Australia will support writers and illustrators to create new works. Authors will also receive lending rights payments when library users borrow eBooks for the first time.
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The Centre for Arts and Entertainment Workplaces will tackle issues of workplace safety in the creative sector, including harassment, discrimination and fair remuneration.
The government will also indicate it would not provide arts funding to organisations with poor workplace standards, in a move the government expects will drive cultural improvements in the sector.
Federal Arts Minister Tony Burke said the arts sector was essential for Australia's economy and culture, and the government's updated policy would inject it with fresh momentum.
"Under Revive, there will be a place for every story and a story for every place. It is a comprehensive roadmap for Australia's arts and culture that touches all areas of government, from cultural diplomacy in foreign affairs to health and education," Mr Burke said in a statement.
The full cultural policy will be released in Melbourne on Monday.