Introduction Sporting is a very important activity for Australia as a nation. Previously, sporting activities have been funded through a ‘top down’ approach that is now inadequate for the maintenance of the nation’s sporting glory (Houhlias, 2011). The ‘top down’ practice has led to widespread claims of imbalance between funding of the elite and grassroots sports (Antaris, 2010). This paper seeks to outline and critique the key arguments in relation to the direction of Australian sport. The paper will specifically address the arguments for and against funding priorities to support sports either at the grassroots or the elite level. The approaches will be analyzed in relation to the extant Australian sport policy and funding approaches. The paper will then give recommendations in regard to the present implications and future expectations. Main Arguments There has been a lot of debate concerning the delegation of money for sporting activities in Australia. The media has been particularly consistent with reports on funding inequalities between the grass roots and the elite level. To underscore this inequality, David Crawford, the head of independent sports panel, released a report in 2009 that questioned the rationale for allocating more funds towards elite sporting activities (Earle, 2010). In the report, it was recommended that more funds should be set aside to support sports at the grassroots level in the country. Those who think that more resources should be set aside for grass roots sports activities argue that grass roots sports are critical for the overall health of Australians other than developing talent for elite sports. Thus by supporting grass roots sports today, the country is in effect developing elite athletes for tomorrow and at the same time keeping its citizens in good health. Proponents of more funds for grass roots sports fail to see why majority of the sports funds are allocated to elite sports that have low participation compared to the grass roots sports that have high participation(Houlihan & Green, 2008). It’s important to note that grass roots sports activities are dominated by citizens belonging to lower economic status. These citizens have lesser opportunities available to them for participation in sporting activities. For instance, the Hockey South Australia requires up to 3 million dollars for the development of more pitches to cater for the ever increasing player demands (Houhlias, 2011). Many people think that the government should set aside more funds for the development of grass roots sports rather than prioritizing elite sports. A case in point is the millions of dollars currently being spent to ensure success in the 2012 Olympics. There is also an increasing concern over the sedentary lives led by majority of young Australians. Australia owes its excellent sporting reputation to the active lifestyle that has been part of its culture. The increasing sedentary lifestyle is not only posing a challenge to the future sports in Australia but also to the health of its people. Statistics indicate that Australia has the fifth highest prevalence of adult obesity in the developed world (Bosscher, Knop, Bottenburg, Shibli, & Bingham, 2009). Thus, there