The ABC has set an ambitious target to increase the proportion of Australian content screened in prime time on its primary channel from 43 per cent to 60 per cent within five years. 
The news comes as the national broadcaster steps up talks with the Turnbull government on its triennial funding process in the wake of a $254 million reduction in its annual budget, which the ABC has since admitted ate into its children's and drama spend.
ABC director of television Richard Finlayson said there had been a "real crunch" on Australian content, noting that the proportion of Australian content in prime time on ABC1 had decreased by 10 per cent over the past five to seven years and was set to be just 43 per cent this calendar year.
"We don't think that's sufficient, especially when you compare to international benchmarks," he said.
In contrast to the ABC, the BBC manages to screen 83 per cent British content in prime time (between 6pm and midnight) while the CBC shows 74 per cent Canadian content.
"It's obviously really important that the ABC is distinctive and Australian, and we've set a vision to be the independent home of Australian culture, stories and conversation. We'd like to get to 60 per cent over the next five years," Mr Finlayson said.
"That is a very challenging goal and it has to be balanced with overall audience objectives for the entire ABC..."
ABC managing director Mark Scott said last week that the rise of global streaming services such as Netflix, which are increasingly drawing audiences to premium overseas content, meant that original scripted Australian content would struggle unless the government did more to support it.
The ABC, which had its funding cut by the Abbott government in the   May 2014 budget, is lobbying for the government to raise the tax offset for television production from 20 per cent to 40 per cent.The ABC has also called for Netflix, Google and other overseas digital video giants to contribute to a content fund to ensure revenues for Australian drama, documentary and children's content remain well represented as audiences fragment as unregulated players focus on overseas content.
The local independent production sector welcomed Mr Finlayson's 60 per cent target but called for more transparency in how the ABC spent its budgets (the efficiencies identified by the Abbott government last year were not meant to affect content, only back office operations).
"We would be absolutely supportive of the ABC having greater resources to increase opportunities for Australian production," said Matthew Deaner, chief executive of Screen Producers Australia. "The ABC must look to work with the independent production sector to achieve this for the benefit of efficiencies and diversity of stories.
"They must also be transparent about where these resources are going across different genres of content and ensure that additional resources remain on screen and for the benefit [of] audiences and do not end up in backroom operations."