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PORTFOLIO BUDGET STATEMENTS 2014–15BUDGET RELATED PAPER NO. 1.15A

SOCIAL SERVICES PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OFAPPROPRIATIONS SPECIFIED BY OUTCOMESAND PROGRAMMES BY AGENCY

© Commonwealth of Australia 2014

ISBN (print) 978-1-925007-44-2ISBN (PDF) 978-1-925007-43-5ISBN (.docx) 978-1-925007-45-9

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Department of Social Services material used ‘as supplied’Provided you have not modified or transformed the Department of Social Services’ material in any way including, for example, by changing the Department of Social Services’ text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of Social Services statistics – then the Department of Social Services prefers the following attribution:

Source: The Australian Government Department of Social Services.

Derivative materialIf you have modified or transformed the Department of Social Services material, or derived new material from the Department of Social Services in any way, then the Department of Social Services prefers the following attribution:

Based on the Australian Government Department of Social Services data.

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Other usesInquiries regarding this licence and any other use of this document are welcome at:

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Abbreviations and conventions The following notations may be used:

NEC/nec not elsewhere classified– nil.. not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

EnquiriesShould you have any enquiries regarding this publication please contact Steve Jennaway, Chief Finance Officer, Department of Social Services on 1300 653 227.

A copy of this document can be found on the Australian Government Budget website at: www.budget.gov.au

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USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

USER GUIDE

The purpose of the 2014–15 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2014–15 (or Appropriation Bill [Parliamentary Departments] No. 1 2014–15 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, non general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

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CONTENTS

Portfolio overview........................................................................................................1Social Services portfolio overview..................................................................................3

Agency resources and planned performance.........................................................11Department of Social Services.....................................................................................13Australian Aged Care Quality Agency .......................................................................177Australian Institute of Family Studies ........................................................................201National Disability Insurance Agency.........................................................................225

Glossary.................................................................................................................... 251

Abbreviations ..........................................................................................................256

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PORTFOLIO OVERVIEW

SOCIAL SERVICES PORTFOLIO OVERVIEW

Ministers and portfolio responsibilities

The Social Services portfolio is the largest area of expenditure and payments in the 2014–15 Budget, representing over one quarter of Australian Government outlays.

The ministers and parliamentary secretaries responsible for the portfolio and its agencies are:

• The Hon Kevin Andrews MP, Minister for Social Services

• Senator the Hon Marise Payne, Minister for Human Services

• Senator the Hon Mitch Fifield, Assistant Minister for Social Services

• Senator the Hon Concetta Fierravanti-Wells, Parliamentary Secretary to the Minister for Social Services.

The 2014–15 Budget sets the course for providing an approach to helping those most in need that is sustainable in the long term. The portfolio will achieve this by working collaboratively across government to deliver effective policies and programmes.

Structure of the portfolio

The portfolio comprises two departments of state, two prescribed agencies, two statutory office holders and a tribunal (established by statute whose members are statutory office holders), under the Financial Management and Accountability Act 1997 (FMA Act). The portfolio also includes two agencies under the Commonwealth Authorities and Companies Act 1997 (CAC Act). The FMA Act and CAC Act will be replaced by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) from 1 July 2014. Refer to Figure 1 for further information on the portfolio’s structure.

DEPARTMENT OF SOCIAL SERVICES

The Department of Social Services (DSS) was formed in September 2013. It is subject to the FMA Act and will be subject to the PGPA Act from 1 July 2014. DSS has five active outcomes, with an additional two outcomes for which functions have transferred to the Department of the Prime Minister and Cabinet (PM&C).

DSS is a critical source of social policy advice for the Australian Government. It works in partnership with other government and non-government organisations, particularly with the Department of Human Services, to ensure the effective development, management and delivery of a diverse range of policies, programmes and services that are focused on improving the lifetime wellbeing of people and families in Australia.

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DEPARTMENT OF HUMAN SERVICES

The Department of Human Services (DHS) provides policy advice on service delivery matters to government to ensure effective, innovative and efficient implementation of government service delivery. It is subject to the FMA Act and will be subject to the PGPA Act from 1 July 2014. DHS has one outcome and delivers a range of government and other payments and services to almost every Australian including:

• Centrelink payments and services for retirees, the unemployed, families, carers, parents, students, people with disabilities, Indigenous Australians, people from culturally and linguistically diverse backgrounds and provision of services at times of major change, including disaster recovery payments.

• Aged care payments to services funded under the Aged Care Act 1997 including residential care, home care and flexible care services.

• Medicare services and payments that support the health of Australians such as Medicare, the Pharmaceutical Benefits Scheme, Private Health Insurance Rebate, the Australian Childhood Immunisation Register, the National Bowel Cancer Screening Register and the Australian Organ Donor Register.

• Child Support services for separated parents to provide the financial and emotional support necessary for their children’s wellbeing.

DHS also delivers other services including CRS Australia, the Tasmanian Freight Equalisation Scheme and Early Release of Superannuation.

AGED CARE COMMISSIONER

The Aged Care Commissioner (the Commissioner) is a statutory office holder appointed under the Aged Care Act 1997. The Commissioner’s primary function is to examine complaints lodged against the Aged Care Complaints Scheme and the Australian Aged Care Quality Agency (the Quality Agency). As of July 2014, the Commissioner will also have the power to examine the Quality Agency’s process for conducting the quality review of home care services. The Commissioner is supported by the Office of the Aged Care Commissioner (the Office). The Office is not an agency for the purposes of the FMA Act. The Commissioner’s budget is part of the budget for DSS.

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Portfolio overview

AGED CARE PRICING COMMISSIONER

The Aged Care Pricing Commissioner (the Commissioner) is a statutory office holder appointed under the Aged Care Act 1997. The functions of the Commissioner include the approval of extra service fees, the approval of proposed accommodation payments that are higher than the maximum amount determined by the Minister, and any other function conferred on the Commissioner by the Minister or under Commonwealth law. The Commissioner is supported by the Office of the Aged Care Pricing Commissioner (the Office). The Office is not an agency for the purposes of the FMA Act. The Commissioner’s budget is part of the budget for DSS.

AUSTRALIAN AGED CARE QUALITY AGENCY

The Australian Aged Care Quality Agency (the Quality Agency) is a statutory agency established under the Australian Aged Care Quality Agency Act 2013. The Quality Agency was established on 1 January 2014, replacing the Aged Care Standards and Accreditation Agency Ltd as the accreditation body for residential aged care. The Quality Agency will become responsible for quality review of aged care services in the community from 1 July 2014. The Quality Agency is subject to the FMA Act and will be subject to the PGPA Act from 1 July 2014.

AUSTRALIAN HEARING

Australian Hearing is a non-General Government Sector entity established under the Australian Hearing Services Act 1991. As such, Australian Hearing is not consolidated into the Commonwealth General Government Sector fiscal estimates. Accordingly, Australian Hearing is not reported in the Portfolio Budget Statements or Portfolio Additional Estimates Statements. Australian Hearing is subject to the CAC Act and will be subject to the PGPA Act from 1 July 2014. Australian Hearing is governed by a board that is appointed by the Minister for Human Services.

AUSTRALIAN INSTITUTE OF FAMILY STUDIES

The Australian Institute of Family Studies (AIFS) is a statutory body established under the Family Law Act 1975. Its role is to increase understanding of factors affecting how Australian families function by conducting research and disseminating findings. AIFS’ work provides an evidence base for developing policy and practice relating to the wellbeing of families in Australia. AIFS is subject to the FMA Act and will be subject to the PGPA Act from 1 July 2014.

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Portfolio overview

NATIONAL DISABILITY INSURANCE AGENCY

The National Disability Insurance Agency (NDIA) is a statutory authority established under the National Disability Insurance Scheme Act 2013 to deliver the National Disability Insurance Scheme. It provides individual control and choice in the delivery of reasonable and necessary care and support to improve the independence, and the social and economic participation of eligible people with disability, their families and carers, and associated referral services. NDIA will also play a key role in building community awareness and understanding of disability matters to reduce the barriers to community inclusion for people with disability, their families and carers. NDIA is subject to the CAC Act and will be subject to the PGPA Act from 1 July 2014.

SOCIAL SECURITY APPEALS TRIBUNAL

The Social Security Appeals Tribunal (SSAT) is a tribunal whose existence was continued by the Social Security (Administration) Act 1999. The SSAT reviews decisions made by delegates of the Secretary of DSS who are employed in DHS. The statutory objective of the SSAT is to provide a mechanism of review that is fair, just, economical, informal and quick. The SSAT is composed of its members who are statutory office holders. The SSAT is not an agency for the purposes of the FMA Act. The SSAT’s budget is part of the budget for DSS.

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Portfolio overview

Figure 1: Social Services portfolio structure and outcomes

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Portfolio overview

M r r riniste fo Social Se vices dr MThe Hon Kevin An ews PM r r riniste fo Human Se vices

r M r Senato the Hon a ise Payne M r r rAssistant iniste fo Social Se vices

r M dSenato the Hon itch Fifielr r r r M r r rPa liamenta y Sec eta y to the iniste fo Social Se vices

r rrSenato the Hon Concetta Fie avanti-Wells

r rDepa tment of Social Se vicesr r Mr r MSec eta y: Finn P att PS

rOutcome 1: Social Secu ity r r d d d r r Financial suppo t fo in ivi uals an families who a e unable to fully suppo t themselves by

r d d p ovi ing a sustainable payments an concessions system. d 2Outcome : Families an Communities

r r d r r d d r d St onge families an mo e esilient communities by eveloping civil society an by p ovi ing d rfamily an community se vices.

d d r3Outcome : Ageing an Age Ca er d r d r r r r d r r d Imp ove wellbeing fo ol e Aust alians th ough ta gete suppo t, access to quality ca e an

r d r relate info mation se vices. 44 4 4444444

r d r d d d d Inc ease housing supply, imp ove community housing an assisting in ivi ualsr r r d r d rexpe iencing homelessness th ough ta gete suppo t an se vices.

d r r5Outcome :Disabilityan Ca e sr d d d d r d d r d Imp ove in epen ence of, an pa ticipation by, people with isability, inclu ing imp ove

r r r r r d r d r d rsuppo t fo ca e s, by p ovi ing ta gete suppo t an se vices. 6Outcome :Women

r d d r d d r Cont ibute to a significant an sustaine e uction in violence against women an theidr r r d chil en in Aust alia th ough the implementation of the National Plan to Re uce Violence

d r dr d d r r r r d against Women an thei Chil en an the elive y of the Suppo t fo T afficke Peopler rp og amme.

d7Outcome : In igenous d d d r d r Closing the gap in In igenous isa vantage with imp ove wellbeing, capacity to pa ticipate

d d r r d r r economically an socially an to manage life-t ansitions fo In igenous Aust alians th oughd rd d r d d r d In igenous engagement, coo inate whole of gove nment policy a vice an ta gete

r rsuppo t se vices.

r rDepa tment of Human Se vicesr r M r Sec eta y: s Kath yn Campbell CSC

1Outcome : r d d d r r Suppo t in ivi uals, families an communities to achieve g eate self-sufficiency;r d r d d d d th ough the elive y of policy a vice an high quality accessible social, health an chil

r r d r d r r d r d r suppo t se vices an othe payments; an suppo t p ovi e s an businesses th ough d r d rconvenient an efficient se vice elive y.

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Portfolio overview

Figure 1: Social Services portfolio structure and outcomes (continued)M r r riniste fo Social Se vices dr MThe Hon Kevin An ews P

M r r rAssistant iniste fo Social Se vicesr M dSenato the Hon itch Fifiel

r r r r M r r rPa liamenta y Sec eta y to the iniste fo Social Se vicesr rrSenato the Hon Concetta Fie avanti-Wells

d r rAge Ca e CommissioneM s Rae Lamb

Objective r d d d r r d d r d To p ovi e an in epen ent eviewmechanism fo the ecisions an p ocesses of the Ager d r r d r Ca e Complaints Scheme an the p ocesses of the Aust alian Age Ca e Quality Agency inr d r d d r r d r r racc e iting esi ential age ca e se vices an quality eview of home ca e se vices.

d r r rAge Ca e P icing CommissioneM s Kim Cull

Objective r r r r r d d r r r To inc ease the level of t anspa ency in the p icing of esi ential age ca e se vices th ough r r r d r r d d the app oval of ext a se vice fees an the app oval of p opose accommo ation payments r r d r d M rthat a e highe than the maximum amount ete mine by the iniste .

r d r Aust alian Age Ca e Quality Agency r Mr Chief Executive Office : Nick Ryan

Outcome 1: r r r r r r d d High-quality ca e fo pe sons eceiving Aust alian Gove nment subsi iser d d r d d r r r d r d esi ential age ca e an age ca e in the community th ough the acc e itation of esi ential

d r r r d r r d r r d d age ca e se vices, the quality eview of age ca e se vices inclu ing se vices p ovi e in the d r r d d r d r rcommunity, an the p ovision of info mation, e ucation an t aining to the age ca e secto .

r d Aust alian Institute of Family Stu iesr r r r MDi ecto : P ofesso Alan Hayes A

Outcome 1: r d r d r r To inc ease un e stan ing of facto s affecting how Aust alian families function d r r d d r r r d r d by con ucting esea ch an communicating fin ings to policy-make s, se vice p ovi e s an r d r the b oa e community.

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Portfolio overview

Figure 1: Social Services portfolio structure and outcomes (continued)M r r riniste fo Social Se vices dr MThe Hon Kevin An ews P

M r r rAssistant iniste fo Social Se vicesr M dSenato the Hon itch Fifiel

r r r r M r r rPa liamenta y Sec eta y to the iniste fo Social Se vicesr rrSenato the Hon Concetta Fie avanti-Wells

r National Disability Insu ance Agency r Mr d Chief Executive Office : Davi Bowen

Outcome 1: r r d d d To implement a National Disability Insu ance Scheme that p ovi es in ivi ualr d d r r d r r d r r cont ol an choice in the elive y of easonable an necessa y ca e an suppo ts to imp ove

d d d r d r the in epen ence, social an economic pa ticipation of eligible people with isability, thei d r r d d r rr r d families an ca e s, an associate efe al se vices an activities.

r rSocial Secu ity Appeals T ibunalr M r M M dP incipal embe : s Jane ac onnell

Objective d r r d r d d d r r To con uct me it eviews of a minist ative ecisions ma e un e a numbe of enactments, inr r r d d r pa ticula the social secu ity law, family assistance law an chil suppo t law.

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Portfolio overview

Portfolio resources

Table 1 shows the additional resources provided to the portfolio in the 2014–15 budget year, by agency.

Table 1: Portfolio additional resources 2014–151

Receipts TotalBill No. 1

$mBill No. 2

$mSpecial

$m $m $mDSSAdministered appropriations 4,409.3 – 118,385.8 17.0 122,812.1Departmental appropriations 571.3 6.4 – 25.3 603.0Total: 4,980.6 6.4 118,385.8 42.3 123,415.1DHS2

Administered appropriations 8.4 – 74.1 1,423.7 1,506.2Departmental appropriations 4,262.2 18.1 – 158.0 4,438.3Total: 4,270.6 18.1 74.1 1,581.7 5,944.5AIFS Administered appropriations – – – – –Departmental appropriations 4.9 – – 9.6 14.5Total: 4.9 – – 9.6 14.5AACQA Administered appropriations – – – – –Departmental appropriations 21.2 – – 20.7 41.9Total: 21.2 – – 20.7 41.9NDIA3 Administered appropriations – – – – –Departmental appropriations 329.8 23.4 – 343.7 696.9Total: 329.8 23.4 – 343.7 696.9

Portfolio total 9,607.1 47.9 118,459.9 1,998.0 130,112.9Less amounts transferredwithin portfolio – – – – –

130,112.9Resources available within portfolio:

3 Funding under Appropriation Bill (No. 1) 2014–15 is appropriated to DSS and then paid to the NDIA.

1 Total resourcing does not include unused appropriations or the balance of special accounts carried forward from 2013–14.

Appropriation

2 DHS is administered separately to DSS. Details of the allocation of resources for DHS can be found in DHS' Budget Statements volume 1.15B of the Social Services Portfolio's 2014–15 Budget Statements.

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AGENCY RESOURCES AND PLANNED PERFORMANCE

Department of Social Services..................................................................................13

Australian Aged Care Quality Agency....................................................................177

Australian Institute of Family Studies....................................................................201

National Disability Insurance Agency....................................................................225

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Department ofSocial Services

Agency resources and planned performance


Section 1: Agency overview and resources............................................................171.1 Strategic direction statement..................................................................................171.2 Agency resource statement....................................................................................261.3 Budget measures...................................................................................................29

Section 2: Outcomes and planned performance.....................................................412.1 Outcomes and performance information................................................................41

Section 3: Explanatory tables and budgeted financial statements......................1583.1 Explanatory tables................................................................................................1583.2 Budgeted financial statements.............................................................................163

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Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Social Services (DSS) aspires to be the Australian Government’s lead agency for social policy.

DSS’ purpose is to improve the lifetime wellbeing of people and families in Australia by responding to need across people’s lives, encouraging independence and participation and supporting a cohesive society.

DSS’ outcomes reflect five core areas in which DSS seeks to assist people:

1. Social Security

2. Families and Communities

3. Ageing and Aged Care

4. Housing

5. Disability and Carers

In addition, there are two residual reporting outcomes:

6. Women

7. Indigenous

The Office for Women (a component of the residual reporting Outcome 6) and Indigenous functions (a component of the residual reporting Outcome 7) have transferred to the Department of the Prime Minister and Cabinet (PM&C). DSS continues to work closely with PM&C on tackling Indigenous disadvantage, advancing gender equality and improving the status and wellbeing of women in Australia.

DSS works in four main ways to provide policies and services:

• Provides evidenced-based, forward-looking policy and implementation advice for portfolio Ministers to support government decisions and future directions.

• Responsible for the design, funding and regulation of support systems that underpin the lifetime wellbeing, independence and participation of people and families, including: social security and family assistance payments; the aged care system; the National Disability Insurance Scheme; and disability employment.

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• Works with the States and Territories to achieve outcomes in their areas of responsibility, including disability services, concessions, the welfare of children and housing.

• Partners with funds organisations to provide local services, including family relationship services, family support, community-based mental health services, early intervention, settlement services, multicultural engagement, aged care support, carer support, emergency relief and supported employment for people with disability.

DSS achieves its outcomes by using best practice processes to implement policy priorities and manage grants in a streamlined way. A strong focus on forward looking policy and on building skills and capacity in risk management and stakeholder engagement further supports the delivery of policies, programmes and services. DSS works collaboratively across government and with civil society to deliver meaningful local solutions.

Key priorities for 2014–15The 2014–15 Budget is firmly focussed on sustainability for the long term. It builds on the Australian Government’s commitment to a sustainable welfare system that encourages participation and promotes self-reliance, while supporting individuals, families and communities.

The decisions reflected in the 2014–15 Budget seek to balance the lifetime wellbeing of people and families with responsible financial management of the significant budget outlays in the Social Services portfolio. With the significant task of ensuring budget outlays are sustainable over time, this approach will ensure the measures encourage social and economic participation and are better targeted to support those who need it.

Major priorities linked to the 2014–15 Budget include:

• providing incentives for people receiving working age payments to participate in the workforce and pursue education and training opportunities

• trialling the new Stronger Relationships Programme to help couples build and maintain strong and healthy relationships

• ensuring family payments are delivered to families who need assistance the most and encourage labour market attachment

• continuing to deliver the Paid Parental Leave scheme during the design and roll-out of the new scheme, encouraging ongoing workforce participation

• a range of targeted measures for income support payments and family payments that encourage self-reliance and participation and ensure that payments go to those that need them most

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Department of Social Services Budget Statements

• continuing income management in existing locations and extending it to the Ceduna region in South Australia

• delivering longer-term funding agreements for critical Families and Children services within the Families and Communities Programme

• supporting people with disability and carers by continuing to implement the National Disability Insurance Scheme, establishing the Young Carers Bursary and establishing the Ministerial Advisory Council for Disabilities and Carers

• supporting multicultural communities

• strengthening civil society to respond to individuals' and communities' needs including through the Community Business Partnership

• meeting the challenges of an ageing population by ensuring the age pension is sustainable and delivered to people who need it the most and supporting older Australians to stay at home for longer.

Ensuring a sustainable and effective social security system

The welfare system covers a range of payments and supports, including family payments, income support payments for people of working age and for seniors, such as the Age Pension, supplementary assistance; and non-cash benefits, such as concession cards.

The third Intergenerational Report (2010) provided demographic and financial data identifying population ageing as one of the Australian Government’s key challenges. By June 2050 it is projected that 22 per cent of the population will be aged 65 or over and spending on pensions and other age-related costs is projected to increase over the long term. This will have a significant impact on the sustainability of government finances. Addressing disincentives to participation for working-age older Australians, including ensuring that people work to their capacity is crucial along with encouraging greater self-reliance in retirement.

Changes announced in the 2014–15 Budget will ensure the age pension system is sustainable and able to meet future demand, while ensuring payments go to people who need it most. It was announced that from July 2025, the qualifying age to receive the age pension will gradually increase every two years until it reaches 70 years, in 2035. Also, the Housing Help for Seniors Pilot will not proceed. As the pilot has not commenced, pension payments will not be affected. There is no evidence that the pilot would have achieved its objective of encouraging seniors to downsize their homes, in a cost effective manner.

For seniors with a Commonwealth Seniors Health Card, the income limits will be indexed from 20 September 2014. Further changes to the Commonwealth Seniors Health Card include abolishing the Seniors Supplement and treating untaxed superannuation income more fairly.

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The income and assets test free areas will be fixed for three years (from July 2014 for allowances and from July 2017 for pensions). This is a cost effective way of targeting payments according to need which delivers savings. There will be no reduction in pension payments – rather, some pensioners with income or assets over the relevant free areas would forego an increase in their pension that would otherwise have occurred.

Also, from 1 July 2014, Parenting Payment Single will be indexed to the Consumer Price Index only. From July 2017, the rates of Age Pension, Carer Payment, Disability Support Payment, other pension payments, and equivalent Veterans’ Affairs payments, will be indexed according to the Consumer Price Index only. The measure removes benchmarking to Male Total Average Weekly Earnings and indexation to the Pensioner and Beneficiary Living Cost Index for pensioners. This will make pension rate increases consistent with all other social security payment rate increases. The Clean Energy Supplement will be renamed the Energy Supplement and indexation will cease for this payment from 1 July 2014.

The Australian Government is making changes to ensure young people with full capacity to work will be encouraged to either earn or learn.

From 1 July 2014, compulsory work-focused activities, such as work experience or education and training, will be introduced for certain disability support pension recipients aged under 35 years, to help increase their chances of finding and keeping a job.

From 1 January 2015, young people aged up to 30 years who have capacity to work will be encouraged to either learn or earn, through tighter payment conditions for Newstart and Youth Allowance (Other). There will also be a number of changes relating to income support settings to tighten eligibility and to aid sustainability. These include portability changes for working age people and students receiving income support who go overseas, the removal, from 1 January 2015, of the Pensioner Education Supplement and the Education Entry Payment, a one week waiting period for all working age payments from 1 October 2014, the limiting of relocation scholarships assistance to regional students and metropolitan students relocating to regional areas from 1 January 2015, the cessation of the Student Start-up Scholarship with the delayed commencement of the Student Start-up Loan from 1 January 2015 for all higher education students. Also, the deeming rate thresholds that apply for income support payments will be reset from 20 September 2017 and support services for people holding substantive temporary visas will be provided from 2014-15.

From 1 January 2015, young people aged 22 to 24 years who become unemployed will receive Youth Allowance until they turn 25. There is a higher income-free threshold for Youth Allowance, and this change strengthens the incentive for young unemployed people to join the workforce and participate in education and training opportunities.

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Changes announced in the 2014–15 Budget aim to achieve long-term sustainability of the family payments system, while continuing to deliver help to families who need it the most – now and into the future. Eligibility for Family Tax Benefit Part B will be tightened from 1 July 2015, and a new supplement will be introduced to assist eligible single parents. In addition, the Australian Government remains committed to the implementation of a Paid Parental Leave scheme that supports new mothers while encouraging a connection to the workforce.

The Australian Government commissioned an independent review of the welfare system so it can make informed decisions about encouraging workforce participation and ensure the social support system is sustainable, effective and coherent; supports people who are genuinely not able to work, and builds individual and family capability. The review is looking at the broad range of payments and services available for people of working age and considering whether they support people to participate in work in line with their capacity.

DSS will finalise a new social security agreement with India.

Supporting families, communities and vulnerable Australians through government and civil society

Improving the lifetime wellbeing of people and families in Australia continues to be a key priority for the Australian Government and to this end, particular consideration is being given to the provision of support at key life transitions and to address particular areas of disadvantage.

In 2014–15, the Australian Government will implement the 12-month Stronger Relationships trial to strengthen relationships and improve personal and family wellbeing, and help reduce the social and economic costs of divorce and relationship breakdown. The trial will provide up to 100,000 eligible couples with $200 towards relationship education or counselling.

New five-year funding agreements will be offered to crucial Families and Children’s services including Family and Relationship Services, Communities for Children Facilitating Partners and Family Law Services, and significant improvements will be made to funding arrangements that will ease regulatory, reporting and administrative burdens for providers. To better reflect the way community services are delivered, 18 existing grant programmes will be consolidated into seven streamlined grant programmes and substantial funding has been committed across these programmes for new and existing services.

Income management will be continued in existing sites and expanded to the Ceduna region in 2014–15 to provide support for vulnerable people and families in disadvantaged regions. The programme helps ensure payments are spent in the best interests of children and families, on life’s essentials such as food and clothing.

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The Australian Government will work more closely with civil society, including volunteer and community organisations, to build strong local communities, empower them to develop their own solutions and respond to need. The Australian Government will work to reduce red tape for the sector and establish key advisory groups to help build a strong and flexible civil society.

The Community Business Partnership will be re-established in 2014–15 to promote a culture of giving and volunteering in Australia. The partnership will see government, community and business leaders working together to develop practical strategies to foster a culture of philanthropic giving and volunteering in Australia.

As part of the Prime Minister’s Drought Assistance Package, enhanced social and community support services will be extended to particularly focus on farmers, farm families and rural communities in Queensland and New South Wales. This includes support for families dealing with mental illness and family relationship issues, referrals for people needing services, and building community resilience. Services will also enhance community understanding of mental health issues, assist with finding help and reduce the stigma associated with mental health issues.

The Australian Government is committed to a national, best practice approach to gambling policy that will deliver meaningful and measurable support for problem gamblers. This includes a consultative approach to develop and implement a range of preventative and treatment measures including a venue-based, voluntary pre-commitment system in realistic timeframes, more and better targeted counselling and support services and more effective self-exclusion schemes.

Safe and secure housing is a fundamental pillar of an inclusive and productive society. Social and affordable housing policies play a pivotal role in achieving national social and economic outcomes, contributing to social and economic participation. DSS works closely with the States and Territories on developing policy to reduce homelessness and increase social and affordable housing and by providing low income rental assistance.

The Australian Government’s commitment to supporting people who are homeless or at risk of homelessness continues through an investment of up to $115 million into the National Partnership Agreement on Homelessness, to be matched by the States and Territories. This will enable critical homelessness services to continue and support some of Australia’s most vulnerable people.

The Australian Government remains committed to funding homelessness research. Following a temporary increase in funding for special projects in 2013–14, the Australian Government is providing ongoing funding to support the continuing development of the homelessness evidence base.

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The Australian Government is not proceeding with the final round of the National Rental Affordability Scheme. However, incentives already allocated through the scheme will continue to be paid for up to 10 years as long as eligibility requirements are met and homes are built in agreed locations according to agreed timeframes.

Supporting people with disability and carers

The Australian Government is committed to providing programmes and services that are better integrated and improve the wellbeing and social and economic participation of people with disability and carers.

New National Disability Insurance Scheme (NDIS) trials will begin in Western Australia, the Australian Capital Territory and the Northern Territory from 1 July 2014, assisting more than 9,000 people with permanent and significant disabilities over the trial period. People with disability will have greater control and choice over the supports they receive and a lifetime approach will be taken to providing supports. In addition, around 4,000 people are expected to benefit from a trial through Western Australia’s My Way scheme.

Once the NDIS is fully rolled out across Australia, it is expected to assist around 460,000 Australians with permanent and significant disability.

The Australian Government is committed to the full, nationwide roll-out and implementation of the NDIS, while accepting that it will be a complex and challenging venture. It will be critical to balance management of the immediate costs with the long-term sustainability of the scheme as it moves to full implementation.

Many young carers miss out on opportunities to further their education and undertake part-time work due to the emotional and financial pressures they face in caring for a loved one. The $3 million Young Carer Bursary Programme will help young carers continue their study and reduce the associated financial burden. This programme will support young carers aged 25 years and under who look after people with disability, people with physical or mental health issues or older people in need of care. It will provide around 150 bursaries valued up to $10,000 annually over three years.

The programme will provide each carer with financial support to meet educational and caring expenses including traveling costs, respite, text books, and unexpected costs that could otherwise exclude them from study. This will provide an incentive for young carers to remain engaged in their education leading to improved employment opportunities and long term finances.

The Australian Government will establish a new Ministerial Advisory Council for Disabilities and Carers to provide advice on how to improve the lives of people with disability and carers. The council will bring together industry, the service sector, peak bodies, people with disability and carers to work closely with government on policies affecting people with disability and ways to reduce red tape across the sector.

25


DSS will continue to work with States and Territories to implement the National Disability Strategy 2010–2020 to improve the lives of people with disability. A national plan for carers to improve opportunities for them to participate socially and economically will also be developed.

The Australian Government will introduce changes to the Disability Support Pension (DSP) to help young people with disability enter the workforce if they are able to do so. From 1 July 2014, compulsory work-focused activities, such as work experience or education and training, will help certain DSP recipients aged under 35 years to find and keep a job. Some recipients will also have their work capacity reassessed and will be supported to help them maximise their work capacity.

Disability Employment Services (DES) will continue to provide people with disability support to participate in the workforce. Job seekers with disability are able to access a range of services to develop new skills and knowledge, gain sustainable employment and participate in society throughout their lives.

The Australian Government is expanding the number of non-government service providers delivering DES. The 47 per cent of DES-Disability Management Service business that is currently allocated to CRS Australia will be put to open tender in 2014. New contracts will take effect from March 2015 through to March 2018. Contracts for the remaining business will be extended from July 2015 to March 2018. This provides certainty for providers and will create the opportunity to align DES within the broader disability services framework, including DES-Employment Support Services and the NDIS.

Building an aged care system for the future

Australians are living longer thanks to better health and better health care and our nation’s population is ageing rapidly. To address the limitations of our current aged care system and ensure it’s the best possible system for Australians – now and into the future – the Australian Government is implementing reforms to the aged care system.

The Australian Government has established the Aged Care Sector Committee, comprising aged care stakeholders who will be responsible for developing the Aged Care Sector Statement of Principles and a Red Tape Reduction Action Plan. These documents will guide current and future reforms.

The Australian Government is meeting its election commitment to repurpose the Workforce Supplement funding by directing this into the general aged care funding pool through increases to subsidies and funding arrangements from 1 July 2014.

26


Reducing the administrative burden for residential aged care providers is a key priority and the need for an application process for the Conditional Adjustment Payment will be removed by rolling it into the basic subsidy. The Australian Government is also ceasing the tax transfer to the States and Territories through the payroll tax supplement from 1 January 2015.

Aged care reforms are being progressively implemented so the aged care system is sustainable and affordable, reduces red tape for providers and is the best possible system for all Australians. The next round of significant changes will commence from 1 July 2014, and aim to significantly improve access and choice for consumers and strengthen system sustainability. The Australian Government is also increasing the availability of home care places by smoothing the number of places being made available over upcoming Aged Care Approval Rounds. In 2014–15, the Australian Government will continue preparation for the next stage of aged care reform.

Due to the complexity of the reforms, and to ensure that the sector is supported during these changes, there will be close monitoring of the real world effects on providers and consumers to understand the impact of the changes with a full system review to be completed in 2016–17.

A new way of working – grants and funding

A key focus for DSS in 2014–15 is implementing a new, broadbanded discretionary grant programme structure which will strengthen our capacity to deliver grant programmes, services and support to individuals and families. The broadbanded structure strategically aligns the work undertaken by the former agencies now comprised within DSS. It also maximises synergies across existing discretionary grant programmes to increase the effectiveness and efficiency of grants management. The smaller, and considerably more flexible, programme suite will create grant programmes that are more responsive to the needs of individuals, population cohorts and communities, and deliver improved value for money.

This new programme structure is part of the DSS approach to working more collaboratively with civil society organisations, in line with the Australian Government’s commitments. This approach is based on reducing red tape, providing greater flexibility and respecting the independence of the sector.

The priority for DSS is to support civil society organisations through these changes and implement these improved funding and service delivery arrangements in 2014–15.

27


1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Department of Social Services resource statement – budget estimates for 2014–15 as at Budget May 2014

Estimateof prior year

amountsavailable in

2014–15$'000

+

Proposedat Budget

2014–15$'000

=

Totalestimate

2014–15$'000

Totalavailable

appropriation

2013–14$'000

Ordinary annual services1

Departmental appropriationPrior year departmentalappropriation2 184,633 – 184,633 112,044Departmental appropriation3 – 571,267 571,267 651,146s 31 relevant agency receipts4 – 25,284 25,284 79,043Total 184,633 596,551 781,184 842,233

Administered expensesOutcome 1 – 13,681 13,681 16,486Outcome 2 – 585,464 585,464 502,951Outcome 3 – 2,235,508 2,235,508 1,397,288Outcome 4 – 70,558 70,558 51,992Outcome 5 – 1,504,081 1,504,081 896,483Outcome 6 – – – 1,153Outcome 7 – – – 119,843Total – 4,409,292 4,409,292 2,986,196Non–appropriated revenue – 15,612 15,612 18,913Payments to CAC Act bodies – 329,762 329,762 139,966Total administered – 4,754,666 4,754,666 3,145,075

Total ordinary annual services A 184,633 5,351,217 5,535,850 3,987,308Other services5

Administered expensesSpecific payments to states,ACT, NT and local government

Outcome 4 – – – 48,741Total – – – 48,741

Departmental non-operatingEquity injections – 6,373 6,373 41,663Total – 6,373 6,373 41,663

Administered non-operatingPayments to CAC Act bodies – non-operating – 23,349 23,349 42,118Total – 23,349 23,349 42,118

Total other services B – 29,722 29,722 132,522Total available annual appropriations 184,633 5,380,939 5,565,572 4,119,830

28


Table 1.1: Department of Social Services resource statement – budget estimates for 2014–15 as at Budget May 2014 (continued)

Estimateof prior year

amountsavailable in

2014–15$'000

+

Proposedat Budget

2014–15$'000

=

Totalestimate

2014–15$'000

Totalavailable

appropriation

2013–14$'000

Special appropriationsSpecial appropriations limitedby criteria/entitlement

Aboriginal Land Rights (Northern Territory) Act 1976 – – – 121,932Aged Care Act 1997 10,695,782 10,695,782 7,655,869

Aged Care (Bond Security) Act 2006 – – 7,500Social Security (Administration)Act 1999 – 86,053,026 86,053,026 78,683,409A New Tax System (Family Assistance)(Administration) Act 1999 – 19,305,596 19,305,596 20,543,517

National Health Act 1953 - section 12 83,422 83,422 15,798Paid Parental Leave Act 2010 – 1,921,140 1,921,140 1,782,309Student Assistance Act 1973 326,833 326,833 249,303

Total special appropriations C – 118,385,799 118,385,799 109,059,637

Total appropriations excludingspecial accounts 184,633 123,766,738 123,951,371 113,179,467Special accounts

Opening balance6 60,906 – 60,906 2,448,956Appropriation receipts7 – 209,440 209,440 220,774Non-appropriation receipts tospecial accounts – 1,341 1,341 29,348

Total special accounts D 60,906 210,781 271,687 2,699,078Total resourcing 245,539 123,977,519 124,223,058 115,878,545A+B+C+DLess appropriations drawn fromannual or special appropriationsabove and credited to specialaccounts and/or CAC Act bodiesthrough annual appropriations – (358,111) (358,111) (257,658)Total net resourcing for DSS 245,539 123,619,408 123,864,947 115,620,887

5 Appropriation Bill (No. 2) 2014–15.6 Estimated opening balance for special accounts. For further information on special accounts see Table 3.1.2.7 Appropriation receipts from DSS annual and special appropriations for 2014–15. Note: All figures are GST exclusive.

1 Appropriation Bill (No. 1) 2014–15.

3 Includes an amount of $18.8m in 2014–15 for the departmental capital budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.4 s 31 relevant agency receipts – estimate.

2 Estimated adjusted balance carried forward from previous year for annual appropriations.

29


Table 1.1: Department of Social Services resource statement – budget estimates for 2014–15 as at Budget May 2014 (continued)Third-party payments from and on behalf of other agencies

2014–15$'000

2013–14$'000

19,478,469 21,816,27686,406,667 78,882,548

1,899,260 1,681,436327,333 245,886

10,697,068 7,578,338

83,422 15,798198 198

3,784 3,775

1,248 1,21756,402 55,786

596 598196 195

– 38,374– 71,552– 9,664

National Disability Insurance Agency 343,615 8,271– 49,645

Department of Human Services has the authority to make the following payments to customers on behalf of DSS:

Special appropriations – A New Tax System (Family Assistance)(Administration) Act 1999Special appropriations – Social Security (Administration) Act 1999Special appropriations – Paid Parental Leave Act 2010

Payments made to other agencies for the provision of services:Australian Taxation Office

Annual appropriations – Ex-Gratia and Act of Grace PaymentsDepartment of Veterans' Affairs has the authority to make the followingpayments to customers on behalf of DSS:

Special appropriations – Student Assistance Act 1973Special appropriations – Aged Care Act 1997Special appropriations – National Health Act 1956 - section 12 - Continence Aids Payment Scheme Annual appropriations – Compensation and Debt Relief

Special Appropriations – A New Tax System (Family Assistance)(Administration) Act 1999Special appropriations – Social Security (Administration) Act 1999

Department of Veterans' AffairsPayments made to CAC Act bodies within the portfolio:

Aboriginal Hostels LimitedIndigenous Business AustraliaIndigenous Land Corporation

Torres Strait Regional AuthorityNote: All figures are GST exclusive.

30


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to DSS are detailed in Budget Paper No. 2 and are summarised below.

31


Table 1.2: Department of Social Services 2014–15 budget measuresPart 1: Measures announced since the 2013–14 MYEFO

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Revenue measures

Social Security Agreement with India1 1.6

Administered revenues – – – – – Departmental revenues – – – – –

Total – – – – – Remove Grandfathering of Student Start–Up Scholarship Recipients 1.11

Administered revenues – – 2,779 5,859 7,301 Departmental revenues – – – – –

Total – – 2,779 5,859 7,301 Remove Relocation Scholarship Assistance for Students Relocating Within and Between Major Cities

1.11

Administered revenues – – 3 11 20 Departmental revenues – – – – –

Total – – 3 11 20 A sustainable Higher Education Loan Programme – repayment thresholds and indexation2

1.11

Administered revenues – – 78 238 425 Departmental revenues – – – – –

Total – – 78 238 425

Total revenue measuresAdministered – – 2,860 6,108 7,746 Departmental – – – – –

Total – – 2,860 6,108 7,746

Expense measures

Cease indexation of the Clean Energy Supplement

1.1, 1.3, 1.4, 1.6, 1.7, 1.8,

1.9, 1.10, 1.11, 1.12

Administered expenses – (41,541) (86,512) (140,419) (188,638) Departmental expenses – 278 – – –

Total – (41,263) (86,512) (140,419) (188,638)

Programme

32


Table 1.2: Department of Social Services 2014–15 budget measuresPart 1: Measures announced since the 2013–14 MYEFO (continued)

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Maintain eligibility thresholds for Australian Government payments for three years

1.1, 1.6, 1.8, 1.9,

1.10, 1.11, 1.12

Administered expenses – (133,249) (246,393) (375,370) (501,084) Departmental expenses – 806 481 737 385

Total – (132,443) (245,912) (374,633) (500,699) Family Payment Reform – maintain Family Tax Benefit payment rates for two years

1.1, 1.12

Administered expenses – (399,751) (718,918) (730,430) (740,588) Departmental expenses – 907 377 – –

Total – (398,844) (718,541) (730,430) (740,588) Family Payment Reform – limit the Large Family Supplement to families with four or more children

1.1, 1.12

Administered expenses – – (125,022) (125,225) (128,162) Departmental expenses – 436 286 119 –

Total – 436 (124,736) (125,106) (128,162) Family Payment Reform – better targeting of Family Tax Benefit Part B 1.1, 1.12

Administered expenses – 367 (377,425) (419,773) (427,716) Departmental expenses – – – – –

Total – 367 (377,425) (419,773) (427,716) Family Payment Reform – revise Family Tax Benefit end-of-year supplements

1.1, 1.12

Administered expenses – – (410,276) (399,042) (424,499) Departmental expenses – 33 312 37 47

Total – 33 (409,964) (399,005) (424,452) Family Payment Reform – remove the Family Tax Benefit Part A per child add-on

1.1, 1.12

Administered expenses – – (76,796) (69,347) (62,159) Departmental expenses – 369 131 – –

Total – 369 (76,665) (69,347) (62,159) Family Payment Reform – limit Family Tax Benefit Part B to families with children under six years of age

1.1, 1.12

Administered expenses – – (87,528) (245,058) (1,578,907) Departmental expenses – 550 303 278 144

Total – 550 (87,225) (244,780) (1,578,763)

Programme

33



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Family Payment Reform – new Family Tax Benefit allowance 1.1, 1.12

Administered expenses – 509 8,128 29,552 90,120 Departmental expenses – – – – –

Total – 509 8,128 29,552 90,120

Education Entry Payment – cessation 1.3, 1.8, 1.9, 1.10

Administered expenses – (9,471) (19,170) (19,200) (19,174) Departmental expenses – – – – –

Total – (9,471) (19,170) (19,200) (19,174)

Reset the Assets Test Deeming Rate Thresholds

1.4, 1.6, 1.7, 1.8, 1.9, 1.12

Administered expenses – – – – (45,980) Departmental expenses – – – 138 337

Total – – – 138 (45,643)

Index Pension and Pension Equivalent Payments by the Consumer Price Index

1.4, 1.6, 1.8, 1.9,

1.10, 1.12

Administered expenses – (1,502) (16,636) (44,203) (331,485) Departmental expenses – 382 263 328 180

Total – (1,120) (16,373) (43,875) (331,305) Certain Concessions for Pensioners and Seniors Card Holders 1.5

Administered expenses – – – – – Departmental expenses – – – – –

Total – – – – –

Increase the Age Pension qualifying age to 70 years

1.6, 1.8, 1.9, 1.10


Total – – – – – Veterans' Disability Pensions – commencement of payments from date of claim3

1.6, 1.8, 1.9

Administered expenses – 182 367 362 357 Departmental expenses – – – – –

Total – 182 367 362 357

Programme

34



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Social Security Agreement with India1 1.6, 1.12

Administered expenses – – 493 599 715 Departmental expenses – 227 144 39 –

Total – 227 637 638 715 Housing Help for Seniors – pilot – reversal 1.6, 1.12

Administered expenses – (9,298) (28,847) (50,867) (63,163) Departmental expenses – (22) (84) – –

Total – (9,320) (28,931) (50,867) (63,163) Commonwealth Seniors Health Card – annual indexation of income thresholds

1.7, 1.12

Administered expenses – 5,319 13,140 21,105 28,398 Departmental expenses – 26 – – –

Total – 5,345 13,140 21,105 28,398 Commonwealth Seniors Health Card – include untaxed superannuation income in the eligibility assessment

1.7, 1.12

Administered expenses – (398) (1,643) (3,368) (5,100) Departmental expenses – 147 71 55 –

Total – (251) (1,572) (3,313) (5,100)

Disability Support Pension – reduced portability

1.8, 1.10, 1.12

Administered expenses – (689) (9,700) (12,874) (13,256) Departmental expenses – 809 1,133 649 484

Total – 120 (8,567) (12,225) (12,772)

Stronger compliance arrangements for job seekers who refuse or persistently fail to meet requirements4

1.10


Total – (7,268) (8,127) (8,347) (8,176)

Pensioner Education Supplement – cessation

1.10, 1.11, 1.12


Total – (41,090) (79,753) (77,724) (73,971) Increasing the age of eligibility for Newstart Allowance and Sickness Allowance

1.10, 1.12


Total – (26,140) (183,243) (232,175) (218,052)

Programme

35



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

A sustainable Higher Education Loan Programme – repayment thresholds and indexation2

1.11

Administered expenses – (210) (402) (413) (432) Departmental expenses – – – – –

Total – (210) (402) (413) (432) Remove Grandfathering of Student Start-Up Scholarship Recipients 1.11


Total – (218,398) (201,975) (55,876) (16,599) Remove Relocation Scholarship Assistance for Students Relocating Within and Between Major Cities

1.11, 1.12


Total – (55,517) (77,043) (81,030) (84,909) Stronger Relationships Trial 2.1

Administered expenses – 19,900 100 – – Departmental expenses – – – – –

Total – 19,900 100 – – Community Business Partnership – re-establishment 2.1

Administered expenses – 1,476 1,475 1,500 1,529 Departmental expenses – – – – –

Total – 1,476 1,475 1,500 1,529 Community Development Financial Institutions Pilot Project – one year extension

2.1

Administered expenses – 1,500 – – – Departmental expenses – – – – –

Total – 1,500 – – – Income Management – one year extension and expansion to Ceduna, South Australia

2.1, 2.4

Administered expenses – 20,339 – – – Departmental expenses – 4,453 – – –

Total – 24,792 – – – Aged Care – Commonwealth Home Support Programme – reduced rate of real funding growth5

3.2


Total – – – – –

Programme

36



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Improving the allocation of home care places 3.3

Administered expenses – 36,300 116,176 (3,019) (149,451) Departmental expenses – – – – –

Total – 36,300 116,176 (3,019) (149,451) Aged Care Payroll Tax Supplement – cessation 3.4


Total – (74,054) (155,542) (161,295) (169,355) Aged care services for the Maronite community of Western Sydney 3.6

Administered expenses – – 6,000 4,000 – Departmental expenses – – – – –

Total – – 6,000 4,000 – Aged care services for the Arabic speaking Muslim community in Western Sydney

3.6

Administered expenses – 500 3,500 6,000 – Departmental expenses – – – – –

Total – 500 3,500 6,000 – National Partnership Agreement on Homelessness – extension 4.1


Total – – – – – National Rental Affordability Scheme – discontinue incentive allocations 4.2

Administered expenses – – (7,205) (19,627) (20,215) Departmental expenses – – – – –

Total – – (7,205) (19,627) (20,215) Disability and Carers Industry Advisory Council – establishment 5.1

Administered expenses – 233 234 236 237 Departmental expenses – – – – –

Total – 233 234 236 237 Move 2 Work – cessation6 5.1

Administered expenses – (120) – – – Departmental expenses – – – – –

Total – (120) – – – Young Carer Bursary Programme 5.1

Administered expenses – 500 1,000 1,000 500 Departmental expenses – – – – –

Total – 500 1,000 1,000 500

Programme

37


Table 1.2: Department of Social Services 2014–15 measures (continued)Part 1: Measures announced since the 2013–14 MYEFO (continued)

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Disability Employment Services – Disability Management Services – partial tender

5.1, 5.3

Administered expenses – 173 – – – Departmental expenses – 6,826 120 – –

Total – 6,999 120 – – Cross-OutcomeSupport Services and Mutual Obligations Arrangements for Illegal Maritime Arrivals7

Outcome 1 1.1, 1.3, 1.12

Administered expenses – 50,022 82,529 118,040 157,576 Departmental expenses – 158 78 78 79

Outcome 2 2.1, 2.4Administered expenses – 584 724 920 936 Departmental expenses – 1,309 1,721 1,958 1,764

Outcome 5 5.1Administered expenses – 2,556 3,860 4,821 5,307 Departmental expenses – – – – –

Total – 54,629 88,912 125,817 165,662 Stronger participation incentives for job seekers under 30

Outcome 1 1.3, 1.10, 1.12

Administered expenses – (314,753) (671,517) (695,452) (679,954) Departmental expenses – 1,393 1,721 815 712

Outcome 2 2.1, 2.4Administered expenses – 20,368 86,576 71,120 51,560 Departmental expenses – – 1,050 1,044 1,054

Total – (292,992) (582,170) (622,473) (626,628)

Programme

38



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Discretionary Grant Programme ReformOutcome 1 1.5

Administered expenses – – – (9,222) (9,453) Departmental expenses – – – – –

Outcome 2 2.1Administered expenses – (26,058) (42,190) (45,906) (35,943) Departmental expenses – – – – –

Outcome 3 3.5, 3.6Administered expenses – (25,084) (13,933) (14,857) (13,624) Departmental expenses – – – – –

Outcome 4 4.1Administered expenses – (700) (800) (800) (800) Departmental expenses – – – – –

Outcome 5 5.1Administered expenses – (90) (180) (180) (180) Departmental expenses – – – – –

Total – (51,932) (57,103) (70,965) (60,000)

Disability Support Pension – compulsory participation requirements for recipients aged under 35 years

1.8, 1.12

Outcome 1Administered expenses – (4,124) (9,586) (12,088) (14,644) Departmental expenses – 397 297 228 224

Outcome 5 5.1Administered expenses – 10,061 15,207 13,385 13,385 Departmental expenses – 132 66 – –

Total – 6,466 5,984 1,525 (1,035) Disability Support Pension – review recipients aged under 35 years 1.8, 1.12

Outcome 1Administered expenses – (2,574) (8,574) (10,119) (10,310) Departmental expenses – 514 333 116 –

Outcome 5 5.1Administered expenses – 3,012 10,227 16,985 16,985 Departmental expenses – 132 66 – –

Total – 1,084 2,052 6,982 6,675

Programme

39



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Grants Management Platform Business CaseOutcome 1 1.12

Administered expenses – – – – – Departmental expenses – 1,069 – – –

Outcome 2 2.4Administered expenses – – – – – Departmental expenses – 210 – – –




Total – 2,096 – – – ACT Accommodation – Department of Social ServicesOutcome 1 1.12

Administered expenses – – – – – Departmental expenses – 2,334 992 478 –

Outcome 2 2.4Administered expenses – – – – – Departmental expenses – 1,421 601 290 –

Outcome 3 3.7Administered expenses – – – – – Departmental expenses – 406 174 83 –



Total – 5,074 2,154 1,038 –

Programme

40



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Efficiency Dividend – a further temporary increase of 0.25 per cent8

Outcome 1 1.12Administered expenses – – – – – Departmental expenses – (432) (833) (1,230) (1,250)

Outcome 2 2.1, 2.4Administered expenses – (7) (14) (21) (22) Departmental expenses – (409) (789) (1,166) (1,185)

Outcome 3 3.7Administered expenses – – – – – Departmental expenses – (601) (1,159) (1,712) (1,740)

Outcome 4 4.1, 4.3Administered expenses – (61) (123) (184) (185) Departmental expenses – (40) (77) (114) (116)

Outcome 5 5.1, 5.4Administered expenses – (867) (1,705) (2,626) (2,714) Departmental expenses – (234) (451) (667) (678) Total – (2,652) (5,151) (7,721) (7,890)

Total expense measuresAdministered – (1,219,876) (3,317,281) (3,776,512) (5,671,295) Departmental – 26,478 7,953 2,767 441

Total – (1,193,398) (3,309,328) (3,773,745) (5,670,854)

Capital measuresEfficiency Dividend – a further temporary increase of 0.25 per cent8

Outcome 1 1.12Administered capital – – – – – Departmental capital – (16) (31) (46) (47)





Total – (64) (125) (186) (189)

Programme

41



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

ACT Accommodation – Department of Social ServicesOutcome 1 1.12

Administered capital – – – – – Departmental capital – – 5,336 3,189 –

Outcome 2 2.4Administered capital – – – – – Departmental capital – – 3,247 1,941 –

Outcome 3 3.7Administered capital – – – – – Departmental capital – – 928 554 –

Outcome 4 4.3Administered capital – – – – – Departmental capital – – 928 555 –

Outcome 5 5.3Administered capital – – – – – Departmental capital – – 1,160 693 –

Total – – 11,599 6,932 – Stronger participation incentives for job seekers under 30

Outcome 1 1.3, 1.10, 1.12

Administered capital – – – – – Departmental capital – – – – –

Outcome 2 2.1, 2.4 – – Administered capital – – – – – Departmental capital – – – – –

Total – – – – – Disability Employment Services – Disability Management Services – partial tender

5.3

Administered capital – – – – – Departmental capital – 1,372 – – –

Total – 1,372 – – –

Programme

42



2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Total capital measuresAdministered – – – – – Departmental – 1,308 11,474 6,746 (189)

Total – 1,308 11,474 6,746 (189)

Programme

5 The fiscal impact of this measure begins in the 2018–19 financial year.6 The lead agency for the measure Move 2 Work – cessation is the Department of Employment. The full description and package appear in Budget Paper No.2 under the Employment portfolio.7 The lead agency for the measure Support Services and Mutual Obligations Arrangements for Illegal Maritime Arrivals is the Department of Immigration and Border Protection. The full description and package appear in Budget Paper No.2 under the Immigration and Border Protection portfolio.8 The measure Efficiency Dividend – a further temporary increase of 0.25 per cent is a Cross Portfolio measure. The full description and package appear in Budget Paper No.2 under Cross Portfolio.

Prepared on a Government Finance Statistics (fiscal) basisPlease note: Further measures with an impact on the 2014-15 Budget are reported in the Portfolio Supplementary Additional Estimates Statements 2013-14.1 The measure Social Security Agreement with India is jointly led with the Treasury.2 The lead agency for the measure A sustainable Higher Education Loan Programme – repayment thresholds and indexation is the Department of Education. The full description and package appear in Budget Paper No.2 under the Education portfolio.3The lead agency for the measure Veterans' Disability Pensions – commencement of payments from date of claim is the Department of Veterans' Affairs. The full description and package appear in Budget Paper No.2 under the Defence portfolio.4 The lead agency for the measure Stronger compliance arrangements for job seekers who refuse or persistently fail to meet requirements is the Department of Employment. The full description and package appear in Budget Paper No.2 under the Employment portfolio.

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Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences on the community of actions by the Australian Government. Australian Government programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes that contribute to government outcomes over the 2014–15 Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of DSS in achieving government outcomes.

The DSS outcome structure reflects the functions assumed following the Administrative Arrangements Order of 18 September 2013. For an overview of the current outcome structure, refer to Figure 1 (page 7).

DSS’ programme structure has been changed to reflect the new outcome structure and better align with DSS’ business. As part of this process, DSS’ grant programmes have been consolidated into new broadbanded grant programmes, which reflect broader policy priorities. Importantly, existing policy priorities are maintained in the new programme structure but further flexibility is built into these arrangements to ensure that DSS can respond to emerging priorities.

Figure 2 below illustrates the transition to the final outcome and programme structure reported in these PB Statements from those reported under the interim structure in the 2013–14 Portfolio Additional Estimates Statements.

44


Figure 2: Outcome and programme transitions

Programme 1.2: Family Tax Benefit → Programme 1.1: Family Tax Benefit

Programme 1.3: Parent and Baby Payments

Double Orphan PensionSingle Income Family SupplementsStillborn Baby PaymentAssistance for Isolated Children

Programme 3.3: Income Support for Vulnerable People → Programme 1.3: Income Support for

Vulnerable People

Programme 3.4: Income Support for People in Special Circumstances → Programme 1.4: Income Support for People

in Special Circumstances

Programme 3.5: Supplementary Payments and Support for Income Support Recipients → Programme 1.5: Supplementary Payments

and Support for Income Support Recipients

Programme 4.1: Income Support for Seniors → Programme 1.6: Income Support for Seniors

Programme 4.2: Allowances, Concessions and Services for Seniors

Seniors Supplement

Programme 5.2: Income Support for People with Disability →Programme 11.1: Disability Employment Services

Mobility Allowance

Programme 5.3: Income Support for Carers → Programme 1.9: Income Support for Carers

Programme 11.2: Working Age Payments → Programme 1.10: Working Age Payments

Programme 11.3: Student Payments → Programme 1.11: Student Payments

Programme 2.1: HousingRent Assistance

Programme Support (various) → Programme 1.12: Programme Support for Outcome 1

Programme 1.8: Income Support for People with Disability

Programme 1.2: Child Payments

Cross-programme→

→

→

→

DSS as at PAES 2013–14 DSS as at Budget 2014–15

Outcome 1: Social Security

Programme 1.7: Allowances and Concessions for Seniors

45


Figure 2: Outcome and programme transitions (continued)

Programme 1.1: Family Support →Programme 2.1: Housing Assistance and Homelessness Prevention

HOME AdviceReconnect

Programme 3.1: Financial Management →Programme 3.2: Community Investment (part) →Programme 3.7: Civil Society and Volunteering →Programme 4.2: Allowances, Concessions and Services for Seniors

Broadband for Seniors

Programme 5.5: Support for Carers

MyTime Peer Support Groups

Programme 6.1: Gender Equality for Women

Support for Trafficked PeopleWomen's Safety AgendaOther Services – Services for Other Entities and Trust Moneys

Programme 9.1: Settlement Services for Migrants and Refugees →

Programme 10.1: Multicultural Services →Programme 1.3: Parent and Baby Payments

Paid Parental LeaveBaby BonusPaid Parental Leave Communication Campaign and EvaluationDad and Partner Pay

Programme 3.6: Social and Community Services → Programme 2.3: Social and Community

Services


Programme 2.1: Families and Communities

Programme 2.2: Paid Parental Leave

→

Outcome 2: Families and Communities

→

→

→

→


46



Programme 8.1: Access and Information → Programme 3.1: Access and Information

Programme 8.2: Home Support → Programme 3.2: Home Support

Programme 8.3: Home Care → Programme 3.3: Home Care

Programme 8.4: Residential and Flexible Care → Programme 3.4: Residential and Flexible

Care

Programme 8.5: Workforce and Quality → Programme 3.5: Workforce and Quality

Programme 8.6: Ageing and Service Improvement → Programme 3.6: Ageing and Service

Improvement


Programme 2.1: Housing Assistance and Homelessness Prevention

Housing ResearchNational Housing Priorities FundNational Homelessness StrategyHomelessness Research Strategy

Programme 2.2: Affordable Housing → Programme 4.2: Affordable Housing


Programme 5.1: Targeted Community Care (part) →Programme 5.4: Services and Support for People with Disability (part) →

Programme 5.5: Support for Carers (part) →Programme 5.6: National Disability Insurance Scheme

National Disability Insurance Scheme Advocacy Programme

Programme 11.1: Disability Employment Services

Disability Employment ServicesEmployment Assistance and Other Services

→

→

Outcome 5: Disability and Carers

Outcome 4: Housing

→

Programme 5.1: Disability, Mental Health and Carers Programme

Programme 4.1: Housing and Homelessness

Outcome 3: Ageing and Aged Care


47



Programme 5.1: Targeted Community Care (part) →Programme 5.4: Services and Support for People with Disability (part) →

Programme 5.5: Support for Carers (part) →Programme 5.6: National Disability Insurance Scheme

National Disability Insurance AgencyNational Disability Insurance Scheme – Communications CampaignNational Disability Insurance Scheme – Research and Evaluation

Programme 5.7: Early Intervention Services for Children with a Disability →


The Office for Women transferred to PM&C following the AAO of 18 September 2013. →

Indigenous programmes ransferred to PM&C following the AAO of 18 September 2013.

→ Outcome 7: Indigenous(residual reporting outcome)

Outcome 6: Women(residual reporting outcome)

→

Outcome 5: Disability and Carers (continued)

Note: AAO = Administrative Arrangements Order

Programme 5.2: National Disability Insurance Scheme


48


Outcome 1: Social SecurityFinancial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.

Outcome 1 strategyDSS supports Australian families and individuals to help them participate economically and socially and to manage life transitions. This includes providing incentives to people to work and pursue education and training opportunities while supporting those who need it most.

Australians may receive financial assistance through a range of payments and supports including family payments, child support, student payments, income support payments for people of workforce age and for seniors, additional supplementary payments and non-cash benefits such as concession cards.

Payments are made in the context of the ageing of Australia's population, ongoing structural changes in the labour market and skill shortages across many industries that affect workforce participation and the broader economy.

The policy settings require a flexible and targeted approach that encourages self-reliance. Payments need to be sustainable into the future.

In 2014–15 DSS will be implementing changes to elements of the payments system.

Indexation

Indexation of rates and thresholds will change to keep payments sustainable and for simplicity and consistency. Specific changes include:

• Changes to indexation of rates so that all income support payments are indexed to the Consumer Price Index only (from July 2014 for Parenting Payment Single and from July 2017 for pension payments). The measure removes benchmarking to Male Total Average Weekly Earnings, and indexation to the Pensioner and Beneficiary Living Cost Index for pensioners.

• Pauses to indexation of income and assets test free areas for three years (from July 2014 for allowances and from July 2017 for pensions) meaning free areas will be fixed at the same level for three years.

• Introduction of indexation to the Commonwealth Seniors Health Card income limits from 20 September 2014.

• Ceasing indexation of the Clean Energy Supplement from 1 July 2014 and renaming the supplement to Energy Supplement.

49


Tightening eligibility and encouraging participation for working age people and students

Eligibility for working age payments will be more focused on providing incentives for people to participate in work or study. There will be a greater expectation on young people to ‘earn or learn’.

Specific changes include:

• Changes to payment conditions for young people aged up to 30 years so that those who have full capacity to work will be encouraged to either learn or earn. Tighter payment conditions for Newstart and Youth Allowance (Other) will apply from 1 January 2015.

• From 1 January 2015, new job seekers granted payment will remain on Youth Allowance (Other) until they reach the age of 25.

• Applying a one week waiting period for all working age payments from 1 October 2014.

• Discontinuing the Pensioner Education Supplement (PES) and the Education Entry Payment (EdEP) from 1 January 2015.

• Introducing changes to the Disability Support Pension (DSP) to help young people with disability enter the workforce if they are able to do so. From 1 July 2014, compulsory work-focused activities, such as work experience or education and training, will help certain disability support pension recipients aged under 35 years to find and keep a job. Some recipients will also have their work capacity reassessed and will be supported to help them maximise their work capacity.

• Limiting the six week portability period for student payments from 1 October 2014 to generally align the portability period for student payment recipients (Youth Allowance, Austudy and ABSTUDY) with the rules for job seekers. Recipients of student payments will no longer be eligible for payment while overseas on holiday.

• Generally limiting the period a person can be paid and continue to qualify for DSP outside Australia to 4 weeks in a period of 12 months from 1 January 2015.

• Limiting Relocation Scholarship assistance to regional students and metropolitan students relocating to regional areas from 1 January 2015.

• Ceasing the Student Start-up Scholarship with the delayed commencement of the Student Start-up Loan from 1 January 2015 for all higher education students.

50


Changes to deeming provisions in the income test

DSS will implement changes announced by the former Government in the 2013 Budget to apply the normal pension deeming rules for new superannuation account-based income streams assessed by Centrelink. Existing account-based income streams held by income support recipients as at 31 December 2014 will be ‘grandfathered’ and continue to be assessed under the existing rules unless the account holder chooses to change products, or ceases to receive an income support payment from 1 January 2015.

To aid in simplicity and consistency further, changes will be made to the deeming rules that apply to the assessment of investment income. The Australian Government has announced the resetting of the deeming rate thresholds, from 20 September 2017, to $30,000 for single pensioners. $50,000 for couples combined and $25,000 for each member of an allowee couple.

Changes to eligibility for seniors

As Australia’s population ages, there will be pressure on expenditure for the Age Pension and other assistance for seniors. In the 2014–15 Budget, the Australian Government announced changes to payments and the Commonwealth Seniors Health Card to aid sustainability that include:

• Changing the pension age from age 67 to age 70 by gradually increasing the eligibility age by six months every two years between 1 July 2025 and 1 July 2035.

• Abolishing the Seniors Supplement for holders of the Commonwealth Seniors Health Card with the final payment being made in June 2014.

• Treating untaxed superannuation income more fairly for Commonwealth Seniors Health Card holders from 1 January 2015 with grandfathering.

The Housing Help for Seniors Pilot will not proceed. As the pilot has not commenced, pension payments will not be affected. There is no evidence that the pilot would have achieved its objective of encouraging seniors to downsize their homes, in a cost effective manner.

Family payments reform

Changes to family payments will ensure assistance goes to those families who need it most and that they remain sustainable in the future. They include changes to the end-of-year supplements and income limits, rates of payment and eligibility.

From 1 July 2014, the maximum and base rates of FTB Part A and Part B will be paused for two years.

From 1 July 2015:

• the FTB Part A and Part B end-of-year supplements will be returned to their original values and will no longer be indexed

51


• the FTB Part A Large Family Supplement will be limited to families with four or more children

• the FTB Part A per-child add on for higher income earners will be removed

• FTB Part B will be limited to families with a primary income of $100,000 or less, and to families with a youngest child aged under six

• a new allowance of $750 per child per year will be available for some single parents with children aged six to 12 who receive maximum rate of FTB Part A.

In 2014–15, DSS will also be working on providing support services to individuals holding a substantive temporary visa from 2014–15 onwards. In addition, the National Partnership on Concessions will be terminated on 1 July 2014 as a State contribution to ensuring Budget outlays are sustainable over the long term.

Outcome expense statementTable 2.1 provides an overview of the total expenses for Outcome 1, by programme.

52


Table 2.1: Budgeted expenses for Outcome 1Outcome 1: Social Security 2013–14

Estimatedactual

expenses$'000

2014–15Estimatedexpenses

$'000

Programme 1.1: Family Tax BenefitAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 3,500 –Special appropriations 20,098,575 19,247,489Total for Programme 1.1 20,102,075 19,247,489

Programme 1.2: Child PaymentsAdministered expenses

Special appropriations 112,962 131,637Total for Programme 1.2 112,962 131,637

Programme 1.3: Income Support for Vulnerable PeopleAdministered expenses


Programme 1.4: Income Support for People in Special CircumstancesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,375 1,384Special appropriations 4,937 5,594Total for Programme 1.4 6,312 6,978

Programme 1.5: Supplementary Payments and Support for Income Support RecipientsAdministered expenses


Programme 1.6: Income Support for SeniorsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) – 205Special appropriations 39,504,148 42,090,101Total for Programme 1.6 39,504,148 42,090,306

Programme 1.7: Allowances and Concessions for SeniorsAdministered expenses


53


Table 2.1: Budgeted expenses for Outcome 1 (continued)Outcome 1: Social Security 2013–14

Estimatedactual

expenses$'000


$'000

Programme 1.8: Income Support for People with DisabilityAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) – 250Special appropriations 16,233,303 16,895,738Total for Programme 1.8 16,233,303 16,895,988

Programme 1.9: Income Support for CarersAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 2,800 2,800Special appropriations 6,982,263 7,630,702Total for Programme 1.9 6,985,063 7,633,502

Programme 1.10: Working Age PaymentsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 198 198Special appropriations 13,159,855 16,016,914Total for Programme 1.10 13,160,053 16,017,112

Programme 1.11: Student PaymentsAdministered expenses

Special appropriations 2,600,959 3,421,814Total for Programme 1.11 2,600,959 3,421,814

Programme 1.12: Programme Support for Outcome 1Departmental expenses

Departmental appropriation1 146,921 144,094Expenses not requiring appropriation in the budget year2 12,181 13,300

Total for Programme 1.12 159,102 157,394Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 16,486 13,681Special appropriations 99,088,242 105,685,447

Departmental expensesDepartmental appropriation1 146,921 144,094

Expenses not requiring appropriation in the budget year2 12,181 13,300Total expenses for Outcome 1 99,263,830 105,856,522

2013–14 2014–15Average staffing level (number) 796 800Note: Departmental appropriation items and totals, by Outcome are indicative estimates and may change in the course of the budget year as government priorities change.1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s 31)’.2 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.

54


Contributions to Outcome 1: Social Security

Programme 1.1: Family Tax Benefit

Programme 1.1 objective

To make payments to assist low and medium income families with the direct and indirect costs of raising dependent children.

Programme component objectivesFamily Tax Benefit Part ATo make payments to assist low and medium income families with the costs of raising dependent children. This supports better family functioning by improving the financial wellbeing of low and medium income families with children and encourages all families to fully immunise their children.

Family Tax Benefit Part BTo make payments to assist low and medium income single parents, and partnered parents where one parent is on a low income, to enable families to exercise choices to balance labour force participation and child care responsibilities.

Child Support SchemeTo ensure that children from separated families continue to receive financial support from their parents.

Schoolkids BonusTo deliver assistance to low and medium income families for their children’s education costs.

Linked to: Personal benefits payments under this programme are delivered by DHS. For more information refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

Also linked to: Department of Health (DoH) Programme 1.5 Immunisation, and Programme 1.6: Public Health Chronic Disease and Palliative Care. Policy responsibility for Immunisation resides with DoH. For more information refer to DoH’s 2014–15 PB Statements.

55


Programme 1.1 expenses

The change in programme expenses across the forward years reflects projected changes in the economy, customer trends, indexation parameters and the impact of policy initiatives.

The impact of policy initiatives includes the repeal of the Schoolkids Bonus payment.

Table 2.1.1: Expenses for Family Tax Benefit2013–14

Estimatedactual$'000

2014–15Budget

$'000

2015–16Forwardestimate

$'000


$'000


$'000Annual administered expenses:

Schoolkids Bonus –Communication Campaign 3,500 – – – –

Special Appropriations:A New Tax System (Family Assistance)(Administration)Act 1999

Family Tax Benefit Part A 14,760,940 14,638,133 13,585,588 13,674,438 14,090,345Family Tax Benefit Part B 4,653,184 4,609,356 4,037,367 3,953,643 2,748,701Schoolkids Bonus1 684,451 – – – –

Total programme expenses 20,102,075 19,247,489 17,622,955 17,628,081 16,839,0461 Appropriation reflects payments of the 1 January 2014 instalment. As legislation to repeal the Schoolkids Bonus payment is yet to be passed by Parliament, payments will continue to be made until legislation is amended.

56


Programme 1.1 deliverables

• Payments are made through the Department of Human Services to eligible claimants under the provisions of the family assistance law

• The Child Support Scheme is administered by the Department of Human Services under the provisions of the child support legislation

57


Programme 1.1 key performance indicators

Family Tax Benefit Part A• Total number of eligible customers• Proportion of all customers paid by instalment• Proportion of all customers paid by lump sum• Proportion of instalment and lump sum entitlement• Percentage of all customers who had a qualification debt raised• Percentage of all customers whose qualification debt remains outstanding• Percentage of all customers who had a debt raised following reconciliation• Percentage of all customers whose reconciliation debt remains outstanding• Percentage of all customers who had a non-lodger debt raised• Percentage of all customers whose non-lodger debt remains outstanding• Agreement is in place with the Department of Human Services• Strategies are in place to ensure that requirements are fulfilled under the

agreement with the Department of Human Services• Administered outlays• Payment accuracy• Percentage and number of families with children under 16 years of age receiving

Family Tax Benefit Part A• Percentage and number of families in receipt of Family Tax Benefit Part A within

income test categories• Percentage and number of children who meet the immunisation requirements by

age check point• Percentage and number of children who meet the health check requirements

Programme 1.1 key performance indicators (continued)

Family Tax Benefit Part B• Total number of eligible customers• Proportion of all customers paid by instalment• Proportion of all customers paid by lump sum• Proportion of instalment and lump sum entitlement• Percentage of all customers who had a qualification debt raised• Percentage of all customers whose qualification debt remains outstanding• Percentage of all customers who had a debt raised following reconciliation• Percentage of all customers whose reconciliation debt remains outstanding• Percentage of all customers who had a non-lodger debt raised• Percentage of all customers whose non-lodger debt remains outstanding

58


• Agreement is in place with the Department of Human Services• Strategies are in place to ensure that requirements are fulfilled under the

agreement with the Department of Human Services• Administered outlays• Payment accuracy• Percentage and number of families with children under 16 years of age receiving

Family Tax Benefit Part B• Percentage and number of families in receipt of Family Tax Benefit Part B within

income test categories

Child Support Scheme• Number of cases• Total value of annual assessments• Total value of child support assessments raised using Child Support Collect in

the past financial year and percentage collected• Reduction of Family Tax Benefit as a result of maintenance income test• Agreement is in place with the Department of Human Services• Strategies are in place to ensure that requirements are fulfilled under the

agreement with the Department of Human Services

Schoolkids Bonus• Number of recipients• Administered outlays

59


Programme 1.2: Child Payments


To make payments to families in certain circumstances to assist with the costs of children.

Programme component objectivesDouble Orphan PensionTo make non–means-tested payments to guardians or approved care organisations to assist in meeting the costs of dependent children who are double orphans.

Single Income Family SupplementsTo make payments to eligible families where the main income earner has taxable income between $68,000 and $150,000, and any secondary earner has taxable income below $18,000.

Stillborn Baby PaymentTo provide assistance with the extra costs associated with a stillbirth.

Assistance for Isolated ChildrenTo make payments to families of geographically isolated children to assist with additional educational expenses.

Linked to: Personal benefits payments under this programme are delivered by DHS. For more information, refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

60




Table 2.1.2: Expenses for Child Payments2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Special appropriations:A New Tax System (Family Assistance)(Administration)Act 1999

Single Income FamilySupplement 56,397 56,098 55,805 55,783 55,762Stillborn Baby Payment 648 2,009 2,081 2,171 2,254

Social Security (Administration)Act 1999

Double Orphan Pension 3,654 3,738 3,929 4,089 4,198Student Assistance Act 1973

Assistance for Isolated Children1 52,263 69,792 72,099 74,449 76,804Total programme expenses 112,962 131,637 133,914 136,492 139,0181 As a result of the AAO of 18 September 2013, the Assistance for Isolated Children payment was transferred to DSS from the former Department of Employment, Education and Workplace Relations (DEEWR). The estimated actual for 2013–14 represents that proportion of funding for this payment which now resides with DSS.

61



Double Orphan Pension• Double Orphan Pension is paid through the Department of Human Services to

eligible families under the provisions of the social security law

Single Income Family Supplement• Single Income Family Supplement is paid through the Department of Human

Services to eligible families under the provision of the family assistance law

Stillborn Baby Payment• Payments are made through the Department of Human Services to eligible

claimants under the provisions of the family assistance law

Assistance for Isolated Children• Assistance for Isolated Children is paid through the Department of Human

Services to eligible families. The appropriation for payments is in the Student Assistance Act 1973

Child Payments deliverable targets2013–14

Estimated actual

2014–15 Budget

2015–16 Forward estimate



Students in receipt of Assistance for Isolated Children funding 11,100 11,100 11,100 11,100 11,100

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Double Orphan Pension• Number of recipients• Number of children• Administered outlays• Payment accuracy

Single Income Family Supplement• Number of recipients• Administered outlays

Stillborn Baby Payment• Number of recipients• Administered outlays

Assistance for Isolated Children• Number of recipients• Administered outlays

63


Programme 1.3: Income Support for Vulnerable People


To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.



The change in programme expenses across the forward years reflects projected changes in customer trends, indexation parameters and the impact of policy initiatives.

The impact of policy initiatives includes the re-introduction of Temporary Humanitarian Visas from 1 July 2014. Illegal Maritime Arrivals found to engage Australia’s protection obligations will be granted a Temporary Humanitarian Visa. This visa type provides the holder access to Special Benefit.

Table 2.1.3: Expenses for Income Support for Vulnerable People2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Special appropriations:Social Security (Administration)Act 1999

Special Benefit 76,393 125,414 156,089 186,391 218,787Total programme expenses 76,393 125,414 156,089 186,391 218,787

64



• Payments are made through the Department of Human Services to eligible claimants under the provisions of social security law


Special Benefit• Percentage and number of recipients on part rate due to the means test• Number of recipients• Administered outlays• Duration on payment• Payment accuracy• Agreements are in place with all service providers• Strategies are in place to ensure that requirements are fulfilled under agreements

with service delivery agencies

65


Programme 1.4: Income Support for People in Special Circumstances


To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.

To make payments to Australians in circumstances beyond their control to support them in overcoming those circumstances and maintaining their financial wellbeing.

Programme component objectivesBereavement AllowanceTo make payments for up to 14 weeks to recently widowed people following the death of their partner to enable them to maintain an adequate standard of living during that time.

Payments under Special CircumstancesPayments under Special Circumstances include Act of Grace payments made under section 33 of the Financial Management and Accountability Act 1997 (FMA Act)1 and ex-gratia payments to individuals and families affected by disasters and other crises.



The change in programme expenses across the forward years reflects projected changes in customer trends and indexation parameters for Bereavement Allowance.

Table 2.1.4: Expenses for Income Support for People in Special Circumstances2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Payments under Special Circumstances 1,375 1,384 1,392 1,400 1,412

Special Appropriations:Social Security (Administration)Act 1999

Bereavement Allowance 4,937 5,594 6,297 7,034 7,853Total programme expenses 6,312 6,978 7,689 8,434 9,265

1 Section 33 of the FMA Act will be replaced by section 65 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) from 1 July 2014.

66



Bereavement Allowance• Payments are made through the Department of Human Services to eligible

claimants under the provisions of social security law

Payments under Special Circumstances• Payments are made through the Department of Human Services to eligible

claimants under the provisions of social security law and the FMA Act2


Bereavement Allowance• Number of recipients• Administered outlays

Payments under Special Circumstances• Number of recipients• Administered outlays

2 The FMA Act will be replaced by the PGPA Act from 1 July 2014.

67


Programme 1.5: Supplementary Payments and Support for Income Support Recipients


To make payments and subsidise services to certain income support recipients and low income households to assist them financially and to help them continue to participate economically and socially.

Programme component objectivesEnergy SupplementTo assist low income households that do not receive enough assistance through tax reform or other household assistance measures to meet their average expected cost impact from carbon pricing.

Utilities AllowanceA supplementary payment made to assist with household bills, which is paid to recipients of the Disability Support Pension who are aged under 21 without dependent children.

Reimbursement to Great Southern Rail for Concessional FaresTo reimburse Great Southern Rail for the provision of concessional fares on its services (the Indian Pacific, the Ghan and the Overland) for eligible passengers.

Essential Medical Equipment PaymentTo make payments to eligible Australians who experience additional increases in home energy costs as a result of the need to operate essential medical equipment in their home, or additional heating or cooling, to manage their disability or medical condition.


68



The change in programme expenses across the forward years reflects projected changes in customer trends and indexation parameters for Utilities Allowance and Essential Medical Equipment Payment and indexation parameters for Reimbursement to Great Southern Rail for Concessional Fares.

As part of the new discretionary grant reform structure announced in the 2014–15 Budget, the Reimbursement to Great Southern Rail for Concessional Fares ceases from 1 July 2016.

Table 2.1.5: Expenses for Supplementary Payments and Support for Income Support Recipients

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Reimbursement to Great SouthernRail for Concessional Fares 8,613 8,844 9,077 – –

Special appropriations:Social Security (Administration) Act 1999

Clean Energy LowIncome Supplement 2,500 2,500 2,500 2,500 2,500Essential Medical Equipment Payment 6,267 6,445 6,655 6,861 7,069Utilities Allowance 15,665 16,318 17,038 17,764 18,359

Total programme expenses 33,045 34,107 35,270 27,125 27,928

69



Energy Supplement• Payments are made through the Department of Human Services to eligible


Utilities Allowance• Payments are made through the Department of Human Services to eligible


Reimbursement to Great Southern Rail for Concessional Fares• Great Southern Rail is under agreement to provide concessional fares on its

services for eligible passengers

Essential Medical Equipment Payment• Payments are made through the Department of Human Services to eligible



Energy Supplement• Administered outlays• Number of recipients

Utilities Allowance• Number of recipients

Reimbursement to Great Southern Rail for Concessional Fares• Administered outlays• Number of recipients• Number of journeys

Essential Medical Equipment Payment• Administered outlays• Number of payments

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Programme 1.6: Income Support for Seniors


To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life transitions.

Programme component objectivesAge PensionTo make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life transitions.

Widow B PensionTo make payments to widowed, divorced and separated women to assist them financially. (This payment was closed to new entrants from 20 March 1997.)

Wife Pension (Age)To make payments to female partners of Age Pension recipients, where those partners are not eligible in their own right for Age Pension, to assist them financially. (This payment was closed to new entrants from 1 July 1995.)

Linked to: Personal benefits payments under this programme are delivered by DHS and DVA. For more information refer to DVA’s 2014–15 PB Statements and DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

71




The Widow B and Wife Pension (Age) are closed payments with no new entrants since 20 March 1997 and 1 July 1995 respectively. Customers may, instead, qualify for other income support payments.

Table 2.1.6: Expenses for Income Support for Seniors2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Extend deeming provisions to account-based income streams –awareness strategy – 205 – – –


Age Pension 39,372,789 41,965,548 44,546,528 47,477,038 49,565,430Widow B Pension 7,698 7,522 7,369 7,259 6,984Wife Pension (Age) 123,661 117,031 110,177 105,144 99,078

Total programme expenses 39,504,148 42,090,306 44,664,074 47,589,441 49,671,492

72





Age Pension• Number of recipients• Administered outlays• Percentage and number of recipients on part rate due to the means test• Ratio of assessed income of pensioners to their total income• Percentage and number of senior Australians who receive payment• Percentage and number of recipients with employment income• Percentage and number of new entrants with employment income• Payment accuracy• Agreements are in place with all service delivery agencies• Strategies are in place to ensure that the requirements are fulfilled under

agreements with providers

Widow B Pension• Number of recipients• Administered outlays• Percentage and number of recipients on part rate due to the means test

Wife Pension (Age)• Number of recipients• Administered outlays• Percentage and number of recipients on part rate due to the means test• Ratio of current number of Wife Pension (Age) recipients to the number of Wife

Pension (Age) recipients at 1 July 1995

73


Programme 1.7: Allowances, Concessions and Services for Seniors


To make payments and provide services to senior Australians to assist with household expenses, enabling them to maintain their standard of living.

Programme component objectivesEnergy Supplement for holders of the Commonwealth Seniors Health CardTo make payments to senior Australians to assist with household and other living expenses.


Also linked to: DVA has responsibility for payments to servicemen and women who are holders of a Commonwealth Seniors Health Card. For more information refer to DVA’s 2014–15 PB Statements.


The change in programme expenses across the forward years reflects projected changes in customer trends and indexation parameters and the impact of policy initiatives.

The impact of policy initiatives includes the cessation of the Seniors Supplement, however the Energy Supplement proportion will continue for Commonwealth Seniors Health Card holders.

Table 2.1.7: Expenses for Allowances, Concessions and Services for Seniors2013–14


2014–15Budget

$'000


$'000


$'000


$'000


Seniors Supplement 290,415 94,781 103,798 112,557 116,624Total programme expenses 290,415 94,781 103,798 112,557 116,624

74





• Number of recipients• Administered outlays

75




To make payments to eligible people with disability who are unable to support themselves to achieve financial independence.




Table 2.1.8: Expenses for Income Support for People with Disability2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Disability Support Pension –Communication Campaign – 250 – – –


Disability Support Pension 16,110,037 16,736,127 17,195,792 17,778,619 18,336,598Mobility Allowance1 123,266 159,611 163,706 166,999 169,694

Total programme expenses 16,233,303 16,895,988 17,359,498 17,945,618 18,506,2921 As a result of the AAO of 18 September 2013, the Mobility Allowance was transferred to DSS from the former DEEWR. The estimated actual for 2013–14 represents that proportion of funding for this payment which now resides with DSS.

76





Disability Support Pension• Duration on payment• Percentage and number of recipients reporting employment income• Percentage and number of recipients on part rate due to the means test• Number of recipients• Administered outlays• Payment accuracy• Agreements are in place with all service delivery agencies• Strategies are in place to ensure that requirements are fulfilled under agreements

with service delivery agencies• Percentage and number of estimated population of people with disability who

receive payment3

• Percentage and number of DSP population as a proportion of the total Australian working-age population4

3 The result for this indicator is derived using the denominator from the Australian Bureau of Statistics Survey of Disability, Ageing, and Carers (cat. no. 4430) and is the number of people with disability. Not all people with disability have a work limitation or rely on Disability Support Pension (DSP).

4 This result is a point-in-time count of DSP recipients aged 15–64 years and a point in time count of the Australian Bureau of Statistics data on the working-age population aged 15– 64 years.

77


Programme 1.9: Income Support for Carers

78



To make payments and allowances to financially assist eligible carers of people with disability or a severe medical condition.

Programme component objectivesCarer PaymentTo make payments to financially assist carers whose caring responsibilities for people with disability, frailty because of age, or a severe medical condition severely restricts their ability to undertake paid employment.

The carer must personally provide constant care in the home of the care receiver, and meet an income and assets test (means test). A person cannot receive Carer Payment and another income support payment at the same time.

Care receivers are subject to a separate income and assets test.

Carer Allowance (Adult)To make payments to financially assist carers who provide daily care and attention in a private home to a person with a disability or severe medical condition.

Carer Allowance (Child)To make payments to financially assist carers who provide daily care and attention in a private home to a child under 16 years of age with a disability or severe medical condition.

Carer SupplementTo make payments annually to eligible carers to provide additional financial security and alleviate financial pressures.

A carer is qualified for the Carer Supplement if they receive a qualifying payment in respect of a period that includes 1 July.

79


Programme component objectives (continued)Child Disability Assistance PaymentTo make payments annually to Carer Allowance (Child) recipients to help them purchase appropriate assistance for their family. A carer is qualified for the Child Disability Assistance Payment if they receive a qualifying payment in respect of a period that includes 1 July.

Ex-gratia Payments to Unsuccessful Applicants of Carer Payment (Child) (Carer Adjustment Payment)To make one-off payments to families not eligible for income support where, following a catastrophic event, a child under age seven is diagnosed with a severe disability or severe medical condition, the family is going through a period of significant adjustment and financial hardship as a result of the care needs of the child.

Wife Pension (DSP)To make payments to female partners of DSP recipients to assist them financially. This payment was closed to new entrants from 1 July 1995.


80




Wife Pension (DSP) is a closed payment with no new grants since 1 July 1995. Customers may, instead, qualify for other income support payments.

Table 2.1.9: Expenses for Income Support for Carers2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:

Ex-Gratia Payments toUnsuccessful Applicants of CarerPayment (Child) 2,800 2,800 2,800 2,800 2,800


Carer Allowance (Adult) 1,449,495 1,554,572 1,674,515 1,782,815 1,914,293Carer Allowance (Child) 519,516 550,852 576,323 601,371 628,387Carer Payment 4,192,915 4,689,026 5,163,509 5,739,287 6,327,445Carer Supplement 532,148 560,500 588,457 618,026 649,321Child Disability AssistancePayment 168,767 172,456 175,867 180,050 182,532Wife Pension (DSP) 119,422 103,296 87,055 78,087 67,869


81



• Ex-gratia payments to unsuccessful applicants for Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the FMA Act5



Carer Payment• Number of recipients• Administered outlays• Payment accuracy• Agreements are in place with all service delivery agencies• Strategies are in place to ensure that the requirements are fulfilled under

agreements with service delivery agencies• Percentage and number of primary carers who are receiving payment• Percentage and number of recipients reporting employment income• Percentage and number of recipients on part rate due to the means test

Carer Allowance (Adult and Child)• Number of recipients• Administered outlays• Payment accuracy• Agreements are in place with all service delivery agencies• Strategies are in place to ensure that the requirements are fulfilled under

agreements with service delivery agencies• Percentage and number of primary carers who are receiving payment

5 The FMA Act will be replaced by the PGPA Act from 1 July 2014.

82



Carer Supplement• Number of recipients• Administered outlays

Child Disability Assistance Payment• Number of recipients• Administered outlays

Wife Pension (DSP)• Number of recipients• Administered outlays• Percentage and number of recipients reporting employment income• Percentage and number of recipients on part rate due to the means test• Ratio of current number of Wife Pension (DSP) recipients to the number of Wife

Pension (DSP) recipients at 1 July 1995

83


Programme 1.10: Working Age Payments

84



Working age payments assist people who are temporarily unable to support themselves through work or have a limited capacity to work due to disability or caring responsibilities for young children. These payments provide income assistance which is generally contingent upon the recipient actively looking for paid work and improving their employability through training or work experience where required. Eligibility for payments is highly targeted, with income tests and supplementary payments ensuring that assistance is directed to those with the greatest need.

Programme component objectivesNewstart AllowanceProvides means-tested income support for eligible job seekers. Recipients must satisfy an activity test by seeking and accepting suitable work and participating in activities designed to improve their employment prospects.

Parenting Payment Single and Parenting Payment PartneredProvides income support for the principal carer of a child aged under six years if the carer is partnered or under eight years if the carer is single.

Partner Allowance Benefit and Partner Allowance PensionProvides assistance to mature-age people who are partners of income support recipients and who face difficulty gaining employment due to a lack of recent workforce experience. This allowance was closed to new claimants on 20 September 2003.

Sickness AllowanceAn income support payment for people aged 22 years and over but under Age Pension age who are temporarily incapacitated for work or study as a result of illness or injury, are unable to work or study and have a job or course of study to return to.

Utilities AllowanceA supplement paid to eligible income support recipients to assist with their household bills.

85


Programme component objectives (continued)Widow AllowanceProvides income support for older working age women who no longer have a partner and have no recent workforce experience. This allowance is being phased out and eligibility is limited to women born on or before 1 July 1955.

Compensation and Debt ReliefProvides access for eligible recipients to discretionary payments in special circumstances or financial relief from amounts owing to the Commonwealth.

Youth Allowance (Other)An income support payment available to eligible young people aged 16 to 24 years who may be required to seek or prepare for paid employment or, until they attain a Year 12 or an equivalent Certificate II qualification, undertake study or training in combination with other approved activities.


Also linked to: 5.2: National Disability Insurance Scheme.

86




The impact of policy initiatives includes discontinuing the Pensioner Education Supplement from 1 July 2015.

Partner Allowance Benefit and Partner Allowance Pension are closed payments with no new grants since 20 September 2003. Customers may, instead, qualify for other income support payments. Widow Allowance is being phased out and eligibility is limited to women born on or before 1 July 1955.

Table 2.1.10: Expenses for Working Age Payments1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Compensation and Debt Relief 198 198 198 198 198

Special appropriations:Social Security (Administration)Act 1999

Newstart Allowance 7,379,050 9,145,078 9,125,250 8,988,021 9,028,907Parenting Payment Partnered 828,213 1,009,626 1,027,809 1,030,742 1,016,890Parenting Payment Single 3,581,088 4,311,467 4,385,801 4,396,361 4,390,676Partner Allowance Benefit 6,356 4,296 505 531 530Partner Allowance Pension 78,385 64,847 23,973 120 20Pensioner Eduction Supplement 62,952 40,630 – – –Sickness Allowance 85,569 101,707 104,279 107,183 109,395Utilities Allowance 15,922 16,677 14,521 11,340 9,420Widow Allowance 298,602 340,372 303,069 260,464 216,304Youth Allowance (Other) 823,718 982,214 1,339,791 1,590,085 1,470,303

Total programme expenses 13,160,053 16,017,112 16,325,196 16,385,045 16,242,6431 As a result of the AAO of 18 September 2013, the Working Age Payments programme was transferred to DSS from the former DEEWR. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.

87




Working Age Payments key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Average (mean) duration on income support by current income support payment (weeks)

– Newstart Allowance 229 233 231 235 235

– Youth Allowance (Other) 94 97 96 99 99

– Parenting Payment Single 286 289 289 292 292

Average (mean) duration on Newstart Allowance (weeks) 98 100 99 102 102

Percentage of income support recipients who exit income support within three months of grant

– Newstart Allowance 27% 28% 26% 27% 28%

– Youth Allowance (Other) 25% 23% 22% 23% 25%

Percentage of income support recipients who exit income support within 12 months of grant

– Newstart Allowance 65% 64% 63% 62% 63%

– Youth Allowance (Other) 69% 68% 68% 67% 67%

88


Programme 1.11: Student Payments


To achieve growth in skills, qualifications and productivity through:

• providing income support to students through Youth Allowance (student) and Austudy to assist them to undertake further education and training

• increasing access and participation by Indigenous Australian students in school education, vocational education and training and higher education and accelerating their educational outcomes

Programme component objectivesABSTUDY – Secondary and ABSTUDY – TertiaryTo provide a means-tested payment which addresses the particular educational disadvantages faced by Aboriginal and Torres Strait Islander peoples by providing support to students and Australian Apprentices to access and participate in secondary and tertiary education.

AustudyTo provide a means-tested payment which provides support for full-time students and Australian Apprentices who begin study or training when aged 25 years and over and who are in need of financial assistance to undertake education or training.

Youth Allowance (student)To provide a means-tested payment which provides support for full-time students and Australian Apprentices aged 16–24 years who are in need of financial assistance to undertake education or training.

89



The change in programme expenses across the forward years reflects projected changes in customer trends, indexation parameters and the impact of policy initiatives.

Table 2.1.11: Expenses for Student Payments1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Special appropriations:Student Assistance Act 1973

ABSTUDY - Secondary 116,677 150,040 155,030 155,479 158,971ABSTUDY - Tertiary 80,363 107,001 102,551 105,110 106,549

Social Security (Administration)Act 1999

Austudy 462,336 596,581 581,670 625,369 671,482Youth Allowance (student) 1,941,583 2,568,192 2,488,900 2,506,621 2,591,751

Total programme expenses 2,600,959 3,421,814 3,328,151 3,392,579 3,528,7531 As a result of the AAO of 18 September 2013, the Student Payments programme was transferred to DSS from the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) and the former DEEWR. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.

90



• Provision of support through ABSTUDY, Austudy and Youth Allowance (student)

Student Payments key performance indicators2013–14

Estimated actual

2014–15 Budget




Provision of support through Austudy

– Average number of higher education students in receipt of Austudy during the year 31,800 33,500 34,500 35,400 36,200

– Average number of Australian Apprentices and students attending a TAFE or private training institution in receipt of Austudy during the year 13,100 12,900 12,900 12,900 12,900

– Average number of secondary students in receipt of Austudy during the year 600 600 600 600 600

– Average total number of students in receipt of Austudy during the year 45,500 47,000 47,900 48,900 49,700

Provision of support through Youth Allowance (student)

– Average number of higher education students in receipt of Youth Allowance (student) during the year 170,900 178,100 183,000 187,800 192,100

– Average number of Australian Apprentices and students attending a TAFE or private training institution in receipt of Youth Allowance (student) during the year 38,300 38,100 38,000 38,000 38,000

– Average number of secondary students in receipt of Youth Allowance (student) during the year 20,800 14,800 14,000 14,000 14,000

– Average total number of students in receipt of Youth Allowance (student) during the year 230,000 231,000 235,000 239,800 244,100

91


Student Payments key performance indicators (continued)2013–14

Estimated actual

2014–15 Budget




ABSTUDY – Secondary

– Average number of school students receiving ABSTUDY during the year 22,100 20,900 19,600 18,900 18,600

ABSTUDY – Tertiary

– Average number of higher education students receiving ABSTUDY during the year 4,200 4,400 4,300 4,100 4,100

– Average number of Australian Apprentices and students attending a TAFE College or private training institution in receipt of ABSTUDY during the year 5,500 5,800 5,600 5,500 5,500

– Average number of tertiary and VET students in receipt of ABSTUDY during the year 9,700 10,200 9,900 9,600 9,600

92


Cross-programme: Rent Assistance

Rent Assistance objectiveTo make payments to low and moderate income Australians receiving income support or family payments to assist with the costs of renting private and community housing.

Linked to: Rent Assistance paid with income support payments and Family Tax Benefit is delivered by DHS. For more information refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

Also linked to: Rent Assistance paid with the Service Pension is delivered by DVA. For more information refer to DVA’s 2014–15 PB Statements.

Programme 1.3: Income Support for Vulnerable People

Programme 1.4: Income Support for People in Special Circumstances

Programme 1.6: Income Support for Seniors

Programme 1.7: Allowances and Concessions for Seniors


Programme 1.9: Income Support for Carers


Programme 1.11: Student Payments

93


Rent Assistance cash projectionsRent Assistance is not a discrete sum of money separately payable under the law, but is a supplementary payment included in the calculation of the primary income support payment, FTB or service pension.

The following table provides cash projections for the Rent Assistance component included in the primary income support payment, FTB or service pension.

Cash projections for Rent Assistance2013–14

Estimated actual$’000

2014–15 Budget

$’000

DSS: A New Tax System (Family Assistance)(Administration) Act 1999

Family Tax Benefit 1,807,673 2,011,418

DSS: Social Security (Administration) Act 1999

Age Pension 613,396 665,105

Austudy 45,986 49,022

Bereavement Allowance 81 102

Carer Payment 78,385 91,253

Disability Support Pension 636,375 664,471

Newstart Allowance 479,905 536,535

Parenting Payment Partnered 1,161 1,039

Parenting Payment Single 19,941 18,102

Partner Allowance 103 50

Sickness Allowance 6,614 6,955

Special Benefit 4,320 4,449

Widow Allowance 17,582 16,293

Widow Pension B 5 5

Wife Pension (Age) 1,134 1,092

Wife Pension (DSP) 1,245 1,075

Youth Allowance 222,944 234,994

DSS: ABSTUDY (Student Assistance Act 1973) 13,714 12,056

DVA: Veterans' Entitlements Act 19861 35,845 35,740

Total cash projections 3,986,409 4,349,7551 Rent Assistance is paid to eligible service pension and income support supplement recipients.

94


Rent Assistance deliverables• Rent Assistance payments are made through the Department of Human Services

to eligible claimants under the provisions of the social security law and family assistance law

Rent Assistance key performance indicators• Proportion of Rent Assistance recipients in rental stress before and after receiving

Rent Assistance• Proportion of Rent Assistance recipients paying enough rent to receive the

maximum rate of assistance• Proportion of clients assisted who identify as Aboriginal or Torres Strait Islander• Average rent paid by Rent Assistance recipients by number of recipients,

primary payment type and income unit type• Average Rent Assistance paid to Rent Assistance recipients by number of

recipients, primary payment type and income unit type• Administered outlays• Number of recipients

95


Programme 1.12: Programme Support for Outcome 1


To provide departmental funding for the annual operating costs of DSS to achieve agency outcomes.

Table 2.1.12: Expenses for Programme Support for Outcome 12013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual departmental expenses:Programme support 146,921 144,094 137,292 132,674 134,356Expenses not requiring appropriation

in the Budget year1 12,181 13,300 12,636 11,084 9,614Total programme expenses 159,102 157,394 149,928 143,758 143,970

Departmental appropriation items and totals, by Outcome are indicative estimates and may change in the course of the budget year as government priorities change.1 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.


• Departmental funding is expended to achieve agency outcomes


• Total departmental funding for Outcome 1

96


Outcome 2: Families and CommunitiesStronger families and more resilient communities by developing civil society and by providing family and community services.

Outcome 2 strategyDSS delivers a range of programmes and payments for disadvantaged and at-risk children, young people and families, volunteers, multicultural communities, humanitarian entrants, migrants and other people with special circumstances. These payments and services help families to combine work and family life, build financial capability, strengthen family relationships and build community resilience.

The Australian Government is committed to a national, best practice approach to gambling policy. It will deliver real, meaningful and measurable support for problem gamblers across the spectrum of gambling products ranging from gaming machines to online gambling. An Industry Advisory Council on Gambling will be established to provide advice to the Minister for Social Services on key aspects of the implementation of the Australian Government’s gambling policy.

The Stronger Relationships trial will be conducted during 2014–15, to increase the number of couples who participate in education or counselling in order to strengthen their marriage or relationship, and help reduce the social and economic costs of divorce and relationship breakdown. The programme will deliver $200 vouchers to up to 100,000 couples and will be available nationally to all couples aged 18 years and over who are in a committed relationship including engaged, married, de-facto and same-sex couples.

New five-year funding agreements will be offered to crucial Families and Children’s services, including Family and Relationship Services, Communities for Children Facilitating Partners and Family Law Services, and improvements will be made to reduce regulatory, reporting and administrative burdens for providers.

To better reflect the way community services work on the ground, 18 existing grant programmes will be consolidated into seven streamlined grant programmes.

The Australian Government has committed $101.1 million to continue Income Management in existing sites and extend it to Ceduna, to ensure families can meet the cost of essentials and build skills that lead to greater self-reliance for disadvantaged people and families.

The Australian Government is continuing the Community Development Financial Institutions (CDFI) trial for a further 12 months to 30 June 2015. This will enable CDFIS to continue to provide access to fair and affordable credit to low income individuals and families.

97


In 2014–15, the Australian Government will work more closely with civil society, including volunteer and community organisations, to build connections that strengthen and empower local communities and reduce red tape. The Australian Government has provided $5.98 million over four years to re-establish the Community Business Partnership chaired by the Prime Minister. This will bring together leaders from the business and community sectors to advise the Australian Government on practical strategies to foster a culture of philanthropic giving and volunteering in Australia and help build a strong civil society.

Enhanced social and community services will be extended to drought affected communities in Queensland and New South Wales, to help support families dealing with mental illness and family relationship issues.

The Australian Government is committed to a multicultural Australia and DSS provides policy advice and programmes to maximise participation by migrants and optimise the productivity arising from our cultural diversity while building community cohesion.

The Australian Government is continuing its commitment to high quality settlement services for humanitarian settlers and other eligible migrants in the first five years of life in Australia. These services support clients in their transition to life in Australia by helping to build self-reliance and fostering links with mainstream services.

In 2012, Fair Work Australia made a decision to increase wages for workers employed under the Social, Community, Home Care and Disability Services (SACS) Industry Award 2010. Many SACS employees deliver government programmes that assist vulnerable people and communities. For this reason, the Australian Government retains an ongoing commitment to pay its share of the Fair Work Australia decision. A special account has been created setting aside more than $2.8 billion over nine years for the sole purpose of meeting the costs associated with these pay increases. DSS manages the special account on behalf of eight affected Australian Government agencies.

In mid 2014, the Second Action Plan for the National Plan to Reduce Violence against Women and their Children 2010-2022 (the National Plan) will be released. The National Plan brings together the efforts of the Australian Government and the States and Territories to achieve a significant and sustained reduction in violence against women. The Australian Government and State and Territory governments have been working with civil society to develop the Second Action Plan.

In addition, the Australian Government continues to work across the Commonwealth and with State and Territory governments and civil society to implement priority actions under the Second Action Plan of the National Framework for Protecting Australia’s Children (2009-2020) to improve the wellbeing and safety of Australia’s children.

98


DSS is also working to continue delivery of the current Paid Parental Leave scheme during the design and roll-out of the new scheme. Paid Parental Leave ensures that women are able to participate in employment before having children and between pregnancies and helps employers, including small businesses, to attract and retain valuable and skilled staff.


99


Table 2.2: Budgeted expenses and resources for Outcome 2Outcome 2: Families and Communities 2013–14

Estimatedactual

expenses$'000


$'000

Programme 2.1: Families and CommunitiesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 499,587 585,464Special appropriations 90 8Special Accounts 9,212 7,140Total for Programme 2.1 508,889 592,612

Programme 2.2: Paid Parental LeaveAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 3,364 –Special appropriations 2,170,206 1,921,140Total for Programme 2.2 2,173,570 1,921,140

Programme 2.3: Social and Community ServicesAdministered expenses

Special Accounts 145,200 204,440Total for Programme 2.3 145,200 204,440



Total for Programme 2.4 163,516 150,812Outcome 2 Totals by appropriation type:Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 502,951 585,464Special Accounts 154,412 211,580Special appropriations 2,170,296 1,921,148


Expenses not requiring appropriation in the Budget year2 12,519 12,744Total expenses for Outcome 2 2,991,175 2,869,004


100


Contributions to Outcome 2: Families and Communities

Programme 2.1: Families and Communities

101



The Programme aims to strengthen relationships, support families, improve children’s wellbeing and increase the participation in community life to strengthen family and community functioning, and reduce the costs of family breakdown. The Programme will provide a range of services, focussed strengthening relationships, and building parenting and financial management skills, providing support for better community connections, as well as services to help newly arrived migrants to in their transition to life in Australia.

These services will be provided to families, children, young people, volunteers, multicultural communities, humanitarian entrants, migrants and other individuals with special circumstances.

Programme component objectivesFamilies and ChildrenTo support families, strengthen relationships, improve the wellbeing of children and young people and increase participation of people in community life to enhance family and community functioning.

Transition to Independent Living AllowanceTo support young people transitioning from out-of-home care to independence by providing a contribution of up to $1,500 towards the costs involved in transitioning to independent living.

Settlement ServicesTo deliver core settlement support for humanitarian entrants and other eligible migrants in their first five years of life in Australia. They aim to assist eligible clients to become self-reliant and participate equitably in Australian society, while maximising the productivity of our diversity and the economic and social well-being of clients by enabling them to become fully-functioning members of society as soon as possible. These services also assist to minimise longer-term reliance on social services.

102


Programme component objectives (continued)Financial Wellbeing and CapabilityTo support individuals and families to navigate financial crises and build financial wellbeing, capability and resilience.

Civil SocietyTo support charities and not-for-profit organisations through education, training and fostering innovation to continue to focus on their work in the community.

Families and Communities Service ImprovementTo build capacity within the families and community sector by funding peak bodies, conferences, research, pilots, policy advice, advocacy, evaluations and other overarching service initiatives.

Strengthening CommunitiesTo strengthen communities and promote inclusion and participation in community life. The activity provides funding to organisations to develop solutions and deliver responsive and integrated services that meet local community needs.

National InitiativesThe National Initiatives aim to achieve positive outcomes for families, women and their children by working across sectors to improve the safety and wellbeing of children, advancing gender equality and reducing violence against women and their children.

Linked to: Department of the Prime Minister and Cabinet (PM&C) Programme 2.2: Indigenous Advancement – Children and Schooling, Programme 2.3: Indigenous Advancement – Safety and Wellbeing, and Programme 2.5: Indigenous Advancement – Australia Strategies. For more information refer to PM&C’s 2014–15 PB Statements.

103



The change in programme expenses across the forward years reflects the impact of policy initiatives, including $5.98 million over four years for the re-establishment of the Community Business Partnership to bring together leaders from the business and community sectors to promote a culture of philanthropic giving and volunteering in Australia, and help build a strong civil society.

The increase in expenses under the Families and Children activity is partly due to the $20 million Stronger Relationships trial which will be conducted during 2014–15 and will provide up to 100,000 couples with a $200 subsidy towards education or counselling to help strengthen their marriage or relationship.

The increase in administered expenses for Settlement Services in 2014–15 is primarily the result of a rollover of $16.2 million from 2013–14 for the Humanitarian Settlement Services programme (to reflect expected refugee and humanitarian arrival numbers in 2014–15, rather than in 2013–14 as originally projected), and the ceasing of the Building Socially Inclusive Communities – Community Hubs measure in 2013–14.

The decrease in administered expenses for Strengthening Communities in 2014–15 is partly the result of the ceasing of the Building Multicultural Communities Programme and the Empowering Local Communities Programme in 2013–14.

Table 2.2.1: Expenses for Families and Communities2013–14


2014–15Budget

$'000


$'000


$'000



Civil Society – 1,476 1,475 1,500 1,529Families and Children 172,468 240,424 212,932 204,504 208,010Families and Communities Service Improvement – 2,039 2,065 2,092 2,119Financial Wellbeing and Capability 122,960 139,131 164,686 139,887 135,685National Initiatives 31,311 28,704 29,182 29,751 30,304Settlement Services 110,899 142,839 129,032 132,876 132,495Strengthening Communities 60,339 27,339 28,483 28,610 28,178Transition to Independent Living Allowance 1,610 3,512 3,512 3,512 3,512


Income Management BalancingAppropriation 90 8 8 – –

Special Account Expenses:Other Services – Services forOther Entities and Trust Moneys 9,212 7,140 7,000 7,000 113


104



Families and Children• Number of clients assisted

Transition to Independent Living Allowance• Number of Transition to Independent Living Allowance (TILA) claims granted

Settlement Services• Number of clients assisted

Financial Wellbeing and Capability• Number of clients assisted• Number of people on Income Management by measure

Civil Society• Establishment of the Community Business Partnership

Families and Communities Service Improvement• Provide national leadership and representation for services that work to

strengthen the wellbeing, safety and resilience of families, children and communities

Strengthening Communities• Number of individuals assisted• Number of organisations assisted

National Initiatives• Number of contacts for 1800RESPECT – the National Sexual Assault, Domestic

Family Violence Counselling Service (telephone and online)

105


Programme 2.1 key performance indicatorsFamilies and Children• Percentage of clients with improved family functioning, including child

wellbeing, safety and development6

• Percentage of clients with improved knowledge, skills, behaviours and engagement with services7

• Percentage of clients from priority target groups8

• Percentage of clients from disadvantaged or targeted communities9

Financial Wellbeing and Capability• Percentage of clients with improved financial wellbeing, capability and

resilience10

• Percentage of clients achieving individual goals related to financial counselling, capability and resilience11

• Percentage of clients from priority target groups12

• Percentage of clients from disadvantaged or targeted communities• Number of clients assisted

Strengthening Communities• Percentage and number of individuals assisted from Indigenous and culturally

and linguistically diverse backgrounds• Percentage and number of individuals reporting improved skills and confidence• Percentage and number of individuals participating in education or training

activities• Percentage and number of individuals satisfied with service provision• Milestones and timelines specified in funding agreements for grants are met• Government agencies report increased client satisfaction with the delivery of

government services• Government services available and accessible nationwide

6 Measured as client self reports of improved family, community and economic engagement.7 Measured as client self reports of improvements in engagement with services.8 Measured as Indigenous and culturally and linguistically diverse clients.9 Measured as clients receiving services in disadvantaged communities.10 Measured as service providers self reports of clients whose immediate crisis needs were met through

Financial Crisis and Material Aid (includes Emergency Relief and Food Relief) and whose needs around financial counselling, capability and reliance were met through Commonwealth Financial Counselling (CFC), Financial Capability (FC – formerly Money Management services and HOME Advice), and Resilience (microfinance) sub-activities. ER, CFC, and FC clients whose immediate crisis needs were met.

11 Measured as CFC, FC and Resilience service providers self-assessment of the extent to which their clients were assisted to improve their financial capability; financial resilience; and pathways to mainstream financial services.

12 Measured as target groups identified in the Financial Wellbeing and Capability Programme Guidelines.

106



Settlement Services• Numbers of new migrants and humanitarian entrants assisted by settlement

information and services nationwide• NAATI provide a high quality credentialing service supported by Members• Administer the payment for the provision of fee-free language services for

eligible clients• Milestones and timelines specified in funding agreements for grants are met

Civil Society• Increased rates of giving, volunteering and corporate social responsibility

Families and Communities Service Improvement• Percentage of stakeholders satisfied with service provision

National Initiatives• Percentage and number of contacts for 1800RESPECT – the National Sexual

Assault, Domestic Family Violence Counselling Service (telephone and online) – who are women

Transition to Independent Living Allowance• Number of young people supported by TILANote: NAATI = National Accreditation Authority for Translators and Interpreters.

107


Programme 2.2: Paid Parental Leave


To make payments to families to assist with the costs of a newborn or recently adopted child, extend the period that parents can be away from work to spend time with their child and support employers to attract and retain a skilled workforce.

Programme component objectivesParental Leave PayTo provide financial support for working parents of newborn or recently adopted children to facilitate time off work to care for their child, enhance maternal and child wellbeing, and encourage women’s workforce participation.

Baby BonusTo make payments to families to assist with the costs arising from the birth or adoption of a child born or adopted before 1 March 2014.

Dad and Partner PayTo provide financial support to fathers and partners to enable them to take time off work to bond with their child and to promote equality between men and women and balance between work and family life.


108




The impact of policy initiatives includes the replacement of the Baby Bonus with an increase to the rate of Family Tax Benefit Part A from 1 March 2014, which results in the closure of the Baby Bonus programme and an increase in Parental Leave Pay expenses.

Table 2.2.2: Expenses for Paid Parental Leave2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Paid Parental Leave - communication and evaluation 3,364 – – – –

Special appropriations:A New Tax System (Family Assistance)(Administration)Act 1999

Baby Bonus 387,897 – – – –Paid Parental Leave Act 2010

Dad and Partner Pay 96,465 97,234 100,568 103,771 108,041Parental Leave Pay 1,685,844 1,823,906 1,894,839 1,965,014 2,039,544



Parental Leave Pay• The Department of Human Services either funds employers to provide Parental

Leave Pay to eligible employees, or provides Parental Leave Pay directly to eligible parents and other persons, according to the provisions of the Paid Parental Leave Act 2010

Baby Bonus• Baby Bonus is paid through the Department of Human Services to eligible

parents under the provisions of the family assistance law

Dad and Partner Pay• Dad and Partner Pay is paid by the Department of Human Services directly to

eligible fathers or partners in accordance with the Paid Parental Leave Act 2010

109



Parental Leave Pay• Percentage and number of mothers for whom PLP has been paid as a proportion

of all mothers in the same year• Percentage and number of parents paid government-funded PLP by employers• Percentage and number of families who have taken the full 18 weeks of PLP• Agreement is in place with the Department of Human Services• Strategies are in place to ensure that requirements are fulfilled under agreements

with the Department of Human Services• Administered outlays

Baby Bonus• Percentage and number of children for whom Baby Bonus is paid as a proportion

of all children born in the same year• Number of recipients• Administered outlays• Agreement is in place with the Department of Human Services• Strategies are in place to ensure that requirements are fulfilled under the

agreement with the Department of Human Services

Dad and Partner Pay• Percentage and number of dads and other partners who have taken the full two

weeks of DAPP• Agreement is in place with the Department of Human Services• Strategies are in place to ensure that requirements are fulfilled under agreements

with the Department of Human ServicesNote: PLP = Parental Leave Pay

DAPP = Dad and Partner Pay

110


Programme 2.3: Social and Community Services


To set aside funding for the implementation period of Fair Work Australia’s Equal Remuneration Order. These funds will be used by the Australian Government to meet its share of the pay increases provided by the pay equity orders, including those funded through the States and Territories.

Linked to: Policy responsibility for improved access to justice in family matters through payments for services that support resolution of family matters and improved access for Indigenous people through payments for services that support access to justice for Indigenous people resides with the Attorney-General’s Department (AGD). For more information refer to AGD’s 2014–15 PB Statements.

Also linked to: Policy responsibility for Drug Strategy, Home Support, Mental Health, the National Partnership Agreement Supporting National Mental Health Reform, the National Partnership Agreement on Transitioning Responsibilities for Aged Care and Disability Services, the National Partnership Agreement on Health Services, the Implementation Plan for the National Perinatal Depression Initiative, the Review Agreement in relation to the Provision of Financial Assistance by the Commonwealth of Australia to Victoria for the Home and Community Care Programme, and the Review Agreement in relation to the Provision of Financial Assistance by the Commonwealth of Australia to Western Australia for the Home and Community Care Programme resides with DoH. For more information refer to DoH’s 2014–15 PB Statements.

111



The change in programme expenses across the forward years reflects the anticipated increase in wages and the number of workers qualifying for Social and Community Services payments.

Table 2.2.3: Expenses for Social and Community Services2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Special Account Expenses:Social and Community Services Pay Equity Special Account1 145,200 204,440 261,563 319,929 381,773

Total programme expenses 145,200 204,440 261,563 319,929 381,7731 The funding for the Social and Community Services Pay Equity Special Account is directly appropriated through the Social and Community Services Pay Equity Special Account Act 2012 .


• Funds are issued to eligible DSS service providers to meet the Australian Government’s share of the pay increases

• Funds are issued to other government agencies to meet the Australian Government’s share of the pay increases for their eligible service providers


• The funds appropriated to DSS are issued to meet the Australian Government’s share of the pay increases

112







2014–15Budget

$'000


$'000


$'000


$'000








113


Outcome 3: Ageing and Aged CareImproved wellbeing for older Australians through targeted support, access to quality care and related information services.

Outcome 3 strategyThe aged care reforms are building an aged care system for the future that is sustainable, affordable and with reduced red tape for aged care providers. The changes to the aged care system being progressed in 2014–15, which will be carefully monitored, will support better access and more choice for consumers, and deliver a more sustainable system.

In 2014–15, DSS will support the Aged Care Sector Committee, which comprises key aged care stakeholders and peak bodies, to develop the Aged Care Sector Statement of Principles and a Red Tape Reduction Action Plan. The Statement and the Plan will focus on arrangements that support aged care providers to deliver quality care to older Australians and will guide current and future reforms to the system.

DSS will implement the Australian Government’s election commitment to repurpose the Workforce Supplement funding by directing this into the general aged care funding pool. Care subsidies and funding arrangements across aged care programmes will increase by 2.4 per cent and the viability supplement will increase by 20 per cent for providers in regional, rural and remote areas. A workforce development strategy will be developed which will be informed by a stocktake of Australian Government aged care workforce initiatives to ensure efficient and effective use of available workforce funding.

DSS will reduce the administrative burden for residential aged care providers by removing the need for an application process for the Conditional Adjustment Payment and roll it into the basic subsidy. At the same time, the Australian Government will cease the tax transfer to the States and Territories through the payroll tax supplement.

DSS will also provide access to the provision of culturally appropriate aged care in Western Sydney for the Maronite community and the Arabic speaking Muslim community through targeted capital grant funding.

During 2014–15, DSS will work with providers and consumers on implementation arrangements for the current aged care reforms. Beginning in January 2015, the second stage of My Aged Care, the newly established entry point to the aged care system, will be implemented incrementally. DSS will consult with consumers and providers on the design of the new Commonwealth Home Support Programme, due to commence on 1 July 2015. DSS will also work with the sector and consumers to move all home care packages to be Consumer Directed by 1 July 2015.

114



Table 2.3: Budgeted expenses and resources for Outcome 3Outcome 3: Ageing and Aged Care 2013–14

Estimatedactual

expenses$'000


$'000

Programme 3.1: Access and InformationAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 104,694 137,128Total for Programme 3.1 104,694 137,128

Programme 3.2: Home SupportAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 863,032 1,641,079Total for Programme 3.2 863,032 1,641,079

Programme 3.3: Home CareAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) – 1,282Special appropriations 934,961 1,363,547Total for Programme 3.3 934,961 1,364,829

Programme 3.4: Residential and Flexible CareAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 212,619 252,949Expense adjustments (101,978) (38,385)Special appropriations 6,728,408 9,332,235Total for Programme 3.4 6,839,049 9,546,799

Programme 3.5: Workforce and QualityAdministered expenses


Programme 3.6: Ageing and Service ImprovementAdministered expenses


115


Table 2.3: Budgeted expenses and resources for Outcome 3 (continued)Outcome 3: Ageing and Aged Care 2013–14

Estimatedactual

expenses$'000


$'000



Total for Programme 3.7 230,800 221,683Outcome 3 Totals by appropriation type:Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,397,288 2,235,508Expense adjustments (101,978) (38,385)Special appropriations 7,679,167 10,779,204



2013–14 2014–15Average staffing level (number) 1,287 1,213Note: Departmental appropriation items and totals, by Outcome are indicative estimates and may change in the course of the budget year as government priorities change.1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s 31)’.2 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.

116


Contributions to Outcome 3: Ageing and Aged Care

Programme 3.1: Access and Information


To provide equitable and timely access to aged care assessments and make it easier for older people to find aged care services and information.

Programme component objectivesMaking it easier to find services – My Aged CareMy Aged Care provides information on aged care, as well as referrals to assessment services and service providers. My Aged Care assists older people, their families and carers to access consistent information on the aged care system and services.

Provide equitable and timely access to aged care assessmentsAged Care Assessment Teams (ACATs) provide aged care assessments to people requiring aged care services under the Aged Care Act 1997.

117



The change in programme expenses across the forward years reflects the projected changes in indexation parameters and the impact of policy initiatives.

Table 2.3.1: Expenses for Access and Information1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Access and Information 104,694 137,128 133,847 137,226 143,056

Total programme expenses 104,694 137,128 133,847 137,226 143,0561 As a result of the AAO of 18 September 2013, the Access and Information programme was transferred to DSS from the former Department of Health and Ageing (DoHA). The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.


• Development and trial of assessment framework and tools for the aged care sector

• Aged Care Assessment Programme (ACAP) training resources reflect current programme operation and enable consistent decision making

Access and Information quantitative deliverables targets2013–14

Estimated actual

2014–15 Budget




Number of calls made to My Aged Care 165,000 220,000 330,000 462,000 466,200

Average number of unique visitors per month to the My Aged Care website 34,500 56,000 61,600 73,900 77,600

118



• ACAP data is maintained to a high level of accuracy and is provided within the specified timeframe by the State and Territory governments to the Australian Government

Access and Information quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Percentage of high priority assessments completed within 48 hours of referral 85% 85% 85% 85% 85%

Percentage of ACATs that meet National Minimum Training Standards and complete national training resources relevant to their roles and responsibilities 100% 100% 100% 100% 100%

119


Programme 3.2: Home Support


Provide basic maintenance, support and care services through the Commonwealth Home and Community Care (HACC) Programme and jointly funded Commonwealth-State HACC Programme in Victoria and Western Australia13 to assist older people to remain at home and be more independent in the community.

Provide respite and facilitate access to information to carers through the National Respite for Carers Programme (NRCP).

Fund a range of allied health and therapy services, such as physiotherapy, podiatry and speech therapy to assist older people to regain or maintain physical and cognitive abilities through the Day Therapy Centre (DTC) Programme.

Assist financially disadvantaged older people to identify services that can provide appropriate, sustainable and affordable housing and community care services through the Assistance with Care and Housing for the Aged Programme.

From 1 July 2015, the Commonwealth Home Support Programme will commence and incorporate a range of programmes including the Commonwealth HACC Programme.

Linked to: This Programme includes National Partnership Payments for basic community care maintenance and support (for Victoria and Western Australia). National Partnership Payments are paid to State and Territory governments by the Treasury as part of the Federal Financial Relations (FFR) Framework under Programme 1.10: National Partnership Payments to the States. For more information refer to the Treasury’s 2014–15 PB Statements.

13 The jointly funded Commonwealth-State HACC Programme in Victoria and Western Australia also assists younger people with disabilities.

120



The change in programme expenses across the forward years reflects the projected changes in indexation parameters and the impact of policy initiatives.

Table 2.3.2: Expenses for Home Support1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Home Support 863,032 1,641,079 1,716,380 1,780,856 1,852,824

Total programme expenses 863,032 1,641,079 1,716,380 1,780,856 1,852,824

1 As a result of the AAO of 18 September 2013, the Home Support programme was transferred to the DSS from the former DoHA. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.


• Continuity of services in programmes being incorporated into the Commonwealth Home Support Programme

• Regular stakeholder consultation on the development of the new Commonwealth Home Support Programme through formal and informal mechanisms

• Funding agreements established with providers for the delivery of Commonwealth Home Support Programme services from 1 July 2015

Home Support quantitative deliverables targets2013–14

Estimated actual

2014–15 Budget




Number of older people receiving a Commonwealth HACC service1 497,300 509,700 na na na1 Commonwealth HACC Programme ceases June 2015 and Commonwealth Home Support Programme

commences.

121



• Commonwealth HACC services delivered by contracted service providers to support frail older people and their carers to get the services they need to remain at home

Home Support quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Number of HACC older clients receiving services as a percentage of the HACC target population1 ≥87% ≥87% na na na

Number of carers receiving counselling through the National Respite for Carers Programme1 6,774 7,180 na na na

Number of carers receiving respite through the National Respite for Carers Programme1 70,260 74,476 na na na1 The Commonwealth Home Support Programme commences on 1 July 2015 and will incorporate a range

of programmes including the Commonwealth HACC programme.

122


Programme 3.3: Home Care


The Home Care Packages Programme provides coordinated packages of services tailored to meet individuals’ specific care needs including care services, support services, clinical services and other services to support older people to remain living at home.

Linked to: This Programme includes National Partnership Payments for Specialist Disability Services. National Partnership Payments are paid to State and Territory governments by the Treasury as part of the FFR Framework under Programme 1.10: National Partnership Payments to the States. For more information refer to the Treasury’s 2014–15 PB Statements.

Also linked to: DHS administers payments to aged care providers and income testing for care recipients. For more information refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.


The change in programme expenses across the forward years reflects projected allocation of Home Care Packages, projected indexation parameters and the impact of policy initiatives.

Table 2.3.3: Expenses for Home Care1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Home Care – 1,282 1,781 – –

Special appropriations:Aged Care Act 1997

Home Care Packages2 934,961 1,363,547 1,539,085 1,736,414 1,942,466Total programme expenses 934,961 1,364,829 1,540,866 1,736,414 1,942,466

2 Due to legislative changes to the Aged Care Act 1997 in August 2013, the Community Care Subsidies and Flexible Care Subsidies special appropriations were replaced by the Home Care Packages special appropriation.

1 As a result of the AAO of 18 September 2013, the Home Care programme was transferred to DSS from the former DoHA. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.

123



• All new Home Care Packages allocated through the 2014 ACAR are delivered on a CDC basis

• Consumers and providers are supported to adopt CDC approachesNote: ACAR = Aged Care Approvals Round

CDC = Consumer Directed Care

Home Care quantitative deliverables targets2013–14

Estimated actual

2014–15 Budget




Number of new Home Care Packages allocated1 5,835 – – – –1 The estimate for the 2014–15 budget year will be determined following the release of the 2014 ACAR.


• Home Care providers continue to deliver services

Home Care quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Number of operational Home Care Packages at end of financial year1 66,958 – – – –1 The estimate for the 2014–15 budget year will be determined following the June 2014 stocktake. Forward

year estimates will be determined following future year stocktakes respectively.

124


Programme 3.4: Residential and Flexible Care


Residential aged care provides a range of care options and accommodation for older people who are unable to continue living independently in their own homes.

Flexible care caters to the needs of older people, in either a residential or home care setting, who may require a different approach than that provided through mainstream residential and home care options.

Programme component objectivesResidential and Flexible CareProvide high quality and sustainable residential aged care on both a permanent and respite basis to older people who are unable to remain living at home. Care ranges from personal care to assist with activities of daily living through to nursing care on a 24 hour basis.

Assist older people to return home after a hospital stay, rather than enter residential aged care prematurely by funding 4,000 flexible care places through the Transition Care Programme.

Support the delivery of culturally appropriate aged care services to older Aboriginal and Torres Strait Islander peoples through the National Aboriginal and Torres Strait Islander Flexible Aged Care Programme.

Support small regional and remote communities to deliver flexible and integrated health and aged care services through the Multi-Purpose Services Programme, a joint initiative of the Australian Government and State and Territory governments.

Accommodation Bond Guarantee SchemeRepay residents an amount equal to the accommodation bond balance owed to them by an approved provider, including outstanding interest, if an approved provider is bankrupt or insolvent and fails to refund one or more outstanding accommodation bond balances.

Linked to: DHS administers payments to aged care providers and means testing for residents. For more information refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

Also linked to: DVA has responsibility for Veterans’ Community Care and Support. For more information refer to DVA’s 2014–15 PB Statements.

125



The change in programme expenses across the forward years reflects projected allocation of Residential Aged Care Places, projected indexation parameters and the impact of policy initiatives.

Table 2.3.4: Expenses for Residential and Flexible Care1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Residential and Flexible Care 42,619 186,092 127,768 76,993 63,770Zero Interest Loans

- appropriation 170,000 66,857 74,540 37,040 –- expense adjustment (101,978) (38,385) (42,887) (21,387) –

Special appropriations:Aged Care Act 1997

Flexible Care Subsidies 295,497 310,615 240,227 245,364 250,219Residential Care Subsidies 6,425,411 9,021,620 9,665,159 10,272,365 10,930,443

Aged Care (Bond Security) Act 2006Accommodation Bond Guarantee Scheme 7,500 – – – –

Total programme expenses 6,839,049 9,546,799 10,064,807 10,610,375 11,244,4321 As a result of the AAO of 18 September 2013, the Residential and Flexible Care programme was transferred to DSS from the former DoHA. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.


• Competitive Aged Care Approvals Round• Expansion of the National Aboriginal and Torres Strait Islander Flexible Aged

Care Programme

Residential and Flexible Care quantitative deliverables targets2013–14

Estimated actual

2014–15 Budget




Number of flexible places available for Aboriginal and Torres Strait Islander peoples through the National Aboriginal and Torres Strait Islander Flexible Aged Care Programme 730 780 850 850 850

Number of operational transition care places 4,000 4,000 4,000 4,000 4,000

126



• All new residential Aged Care Places allocated• All new flexible places for the National Aboriginal and Torres Strait Islander

Flexible Aged Care Programme allocated

Residential and Flexible Care quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Number of operational Residential Aged Care places at end of financial year1 191,695 – – – –1 The estimate for the 2014–15 budget year will be determined following the June 2014 stocktake. Forward

year estimates will be determined following future year stocktakes respectively.

127


Programme 3.5: Workforce and Quality


To ensure the availability of a skilled workforce, empower consumers and ensure high quality of care to recipients of aged care services.

Programme component objectivesImproving Workforce SustainabilityAs part of the repurposing of the Aged Care Workforce Supplement funding, develop an Aged Care Workforce Development Strategy in consultation with the sector to guide any refining of current priorities under the Aged Care Workforce Fund.

Empowering ConsumersProvide advocacy for older Australians and promote their rights within the aged care sector through the National Aged Care Advocacy Programme, with an emphasis on rural and remote communities and special needs groups.

Support volunteer visitors to care recipients of residential aged care and home care through the Community Visitors Scheme with a focus on addressing social isolation in special needs groups.

Promoting QualityAssist aged care providers to understand their responsibilities under the Aged Care Act 1997 and promote voluntary compliance with their responsibilities.

Undertake monitoring activities, including through the resolution of complaints, to confirm approved providers provide appropriate care to care recipients, meet their financial obligations and submit claims consistent with Aged Care Funding Instrument requirements.

Monitoring activities are supported by focussed regulatory action where required to protect the health, welfare or interests of care recipients.

Continue to develop the national aged care quality indicators for residential aged care to be introduced during 2014–15. These indicators will improve the information available for the industry and consumers on the quality of aged care. Quality indicator information for consumers will be published on the My Aged Care website.

Linked to: Payments under this programme for the Aged Care Education and Training Incentives Programme are delivered by DHS. For more information refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

128



The change in programme expenses across the forward years reflects projected indexation parameters and the impact of policy initiatives.

Table 2.3.5: Expenses for Workforce and Quality1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Workforce and Quality 110,647 111,256 123,293 126,497 122,397

Total programme expenses 110,647 111,256 123,293 126,497 122,3971 As a result of the AAO of 18 September 2013, the Workforce and Quality programme was transferred to DSS from the former DoHA. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.


• Continuing uptake of new models of Community Visitors Scheme• Timely and effective resolution of complaints through the Aged Care Complaints

Scheme

Workforce and Quality quantitative deliverables targets2013–14

Estimated actual

2014–15 Budget




Number of annual reviews of Aged Care Funding Instrument funding claims to ensure residents are correctly funded 20,000 20,000 20,000 20,000 20,000

Percentage of complaints finalised by the Aged Care Complaints Scheme within 90 days 78% 79% 80% 81% 82%

Percentage of complaints resolved by the Aged Care Complaints Scheme at early resolution 64% 64% 64% 64% 64%

Percentage of General Purpose Financial Reports submitted by approved providers reviewed to assess financial risk 100% 100% 100% 100% 100%

Percentage of approved providers assessed as having a financial risk at the highest level undergoing a detailed risk assessment 100% 100% 100% 100% 100%

129



• Satisfaction with the operation of the Aged Care Complaints Scheme

Workforce and Quality quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Percentage of occasions where the Department has taken appropriate action against approved providers to address serious non-compliance that threatens the health, welfare or interests of care recipients 100% 100% 100% 100% 100%

130


Programme 3.6: Ageing and Service Improvement


To enable the Australian Government to better support activities that promote healthy and active ageing, to better respond to existing and emerging challenges including dementia care and to better support services targeting Aboriginal and Torres Strait Islander peoples and people from diverse backgrounds.

Programme component objectivesAgeing and Service ImprovementDeliver programmes that strengthen the capacity of the health and aged care sectors to deliver high quality aged care, and to promote healthy ageing by targeting activities that: promote healthy and active ageing; respond to existing and emerging challenges, including dementia care; support activities that build the capacity of aged care services to deliver high quality care; support activities that provide information and support to assist carers maintain their caring role; support to services providing aged care to Aboriginal and Torres Strait Islander peoples and people living in remote areas; and support older people with diverse needs.

Continence Aids Payment SchemeTo provide financial support to eligible Australians with permanent and severe incontinence to assist them in managing their continence needs.

Linked to: Payments under this programme for the Continence Aids Payment Scheme are delivered by DHS. For more information refer to DHS’ Budget Statements in volume 1.15B of the Social Services Portfolio’s 2014–15 PB Statements.

Also linked to: Programme 5.2: National Disability Insurance Scheme.

131



The change in programme expenses across the forward years reflects projected indexation parameters and the impact of policy initiatives.

Table 2.3.6: Expenses for Ageing and Service Improvement1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Ageing and Service Improvement 106,296 91,814 102,791 114,950 104,096

Special Appropriations:National Health Act 1953 – section 12

Continence Aids Payment Scheme 15,798 83,422 100,150 117,577 135,812

Total programme expenses 122,094 175,236 202,941 232,527 239,9081 As a result of the AAO of 18 September 2013, the Ageing and Service Improvement programme was transferred to DSS from the former DoHA. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.


• Programmes that improve the lives of people with dementia are delivered• Continue to strengthen the capacity of the health and aged care sectors to deliver

high quality aged care, and to promote healthy ageing through the Aged Care Service Improvement and Healthy Ageing Grants fund

132



• Activities undertaken to better support people with dementia in the health and aged care systems

• Activities undertaken to better support older people from diverse backgrounds

Ageing and Service Improvement quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Number of service episodes delivered by Dementia Behaviour Management Advisory Services clinicians that support aged care staff, healthcare professionals and family carers to improve their care of people with behavioural and psychological symptoms of dementia na 6,500 6,800 7,100 7,500

133







2014–15Budget

$'000


$'000


$'000


$'000








134


Outcome 4: HousingIncreased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Outcome 4 strategySafe and secure housing is a fundamental pillar of an inclusive and productive society. Social and affordable housing policies play a pivotal role in this and the national economy, contributing to social and economic participation. DSS works closely with the States and Territories on delivering policy on homelessness and social and affordable housing, and providing low income rental assistance.

The Australian Government provides funding of around $1.3 billion annually to the States and Territories in association with the National Affordable Housing Agreement (NAHA). The NAHA is supported by the National Partnership Agreements on Homelessness (NPAH) and Remote Indigenous Housing.

The Australian Government’s commitment to supporting people who are homeless or at risk of homelessness continues through an investment of up to $115 million into the NPAH, to be matched by the States and Territories. This will enable critical homelessness services to continue and support some of Australia’s most vulnerable people. Additionally, the Australian Government supports other initiatives to reduce homelessness through the Housing and Homelessness Programme. This includes the Australian Government’s commitment to the development of the homelessness evidence base. Following a temporary increase in funding for special projects in 2013-14, the Australian Government is continuing to provide funding for homelessness research.

The National Rental Affordability Scheme (NRAS) aims to provide affordable rental housing for households on low– and moderate–incomes. The Australian Government is not proceeding with the final round of NRAS. However, incentives already allocated through the scheme will continue to be paid for up to 10 years as long as eligibility requirements are met and homes are built in agreed locations according to agreed timeframes.

DSS is a key source of policy advice in the areas of housing and homelessness. This advice helps inform government responses to current and future challenges including how to improve housing affordability for all Australians – renters, home owners and home buyers. A focus in 2014–15 will be a review of housing and homelessness.


135


Table 2.4: Budgeted expenses and resources for Outcome 4Outcome 4: Housing 2013–14

Estimatedactual

expenses$'000


$'000

Programme 4.1: Housing and HomelessnessAdministered expenses


Programme 4.2: Affordable HousingAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 43,885 65,394Other services (Appropriation Bill No. 2) 48,741 –Total for Programme 4.2 92,626 65,394



Total for Programme 4.3 15,429 14,819

Outcome 4 Totals by appropriation type:Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 51,992 70,558Other services (Appropriation Bill No. 2) 48,741 –


Expenses not requiring appropriation in the budget year2 1,181 1,252Total expenses for Outcome 4 116,162 85,377


136


Contributions to Outcome 4: Housing

Programme 4.1: Housing and Homelessness


To provide support for housing and homelessness:

• research• peak bodies• innovative projects• emerging Australian Government priorities.

Programme component objectivesHousing and Homelessness Service Improvement and Sector SupportThe Housing and Homelessness Service Improvement and Sector Support Activity aims to:

• build the research evidence base for effective policy that addresses homelessness and housing affordability over the long term

• identify best practice models, which can be promoted and replicated, that will enhance existing housing and homelessness policies and programmes

• build the capacity of the community sector to improve linkages and networks• raise awareness of housing and homelessness issues at all levels of government

and across the community.Linked to: Payments under the National Affordable Housing Agreement and the National Partnership Agreement on Homelessness are made by the Treasury. For more information refer to the Treasury’s 2014–15 PB Statements.

137



The change in programme expenses across the forward years reflects projected changes in indexation parameters and the impact of policy initiatives. The higher estimate in 2013–14 is due to one-off increases in that year for homelessness research.

Table 2.4.1: Expenses for Housing and Homelessness2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:

Housing and Homelessness Service Improvement and Sector Support 8,107 5,164 5,186 5,320 5,458



• Housing and homelessness sector development• Research and evidence-based policy advice to the Government on housing and

homelessness issues• Support for innovative service responses to homelessness


• Development of an evidence base on housing and homelessness, including innovative responses and models of practice

138


Programme 4.2: Affordable Housing


To improve the supply of affordable rental housing to low and moderate income households.

Programme component objectivesNational Rental Affordability SchemeThe National Rental Affordability Scheme (NRAS) offers financial incentives to the business sector and community organisations to build and rent dwellings to low and moderate income households, at a rate that is at least 20 per cent below market rates.

The scheme aims to:• increase the supply of new affordable rental housing• reduce rental costs for low and moderate income housing• encourage large-scale investment and innovative affordable housing.Linked to: Annual incentives under the National Rental Affordability Scheme that are provided by tax offsets are delivered by the Australian Taxation Office. For more information refer to the Treasury’s 2014–15 PB Statements.

139



The NRAS provides annual financial incentives to the business sector and community organisations to build and rent dwellings to low and moderate income households at 20 per cent or more below market rates. The incentive is delivered through either cash payments by DSS or refundable tax offsets. The NRAS refundable tax offsets are delivered through the Australian Taxation Office and are not part of the DSS Budget. The change in expenses across the financial years reflects the projected delivery of dwellings by approved participants.

The Building Better Regional Cities programme ceases at the end of 2013–14.

Table 2.4.2: Expenses for Affordable Housing2013–14


2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses:Building Better Regional Cities 48,741 – – – –National Rental Affordability Scheme 43,885 65,394 72,028 81,116 83,551



National Rental Affordability Scheme• Provide NRAS incentives in accordance with statutory criteria so NRAS

dwellings are made available at reduced rents for eligible low and moderate income households


• Timely provision of incentives for eligible NRAS dwellings.

140







2014–15Budget

$'000


$'000


$'000


$'000


the Budget year1 1,181 1,252 889 781 680Total programme expenses 15,429 14,819 10,550 10,131 10,189

Departmental appropriation items and totals, by Outcome are indicative estimates and maychange in the course of the budget year as government priorities change.1 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.





141


Outcome 5: Disability and CarersImproved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Outcome 5 strategyIt is essential that people with disability and carers receive an adequate standard of living, improved capacity to participate economically and socially, and support to manage resources and life-transitions.

A range of services and payments, including concessions, are provided for people with disability.

The Australian Government is committed to the full nationwide roll-out and implementation of the National Disability Insurance Scheme (NDIS). When at full scheme, it is expected to cost around $22 billion, of which around half is Australian Government funding.

The Australian Government will continue to work with the States and Territories on NDIS trials by the National Disability Insurance Agency (NDIA) and on the full roll-out of the scheme. This work will seek to ensure the scheme is built on strong foundations, is financially sustainable and delivers improved outcomes for people with disability, their families and carers.

From 1 July 2014, trial sites will be in place across all States and Territories except Queensland. This will see about 30,000 people with significant and permanent disability, their families and carers benefit from this trial stage of the scheme and about 4,000 people supported through Western Australia's My Way scheme. Queensland will join the NDIS in 2016.

Work will continue on transitioning existing supports into the NDIS.

DSS will also continue to work with States and Territories to implement the broader National Disability Strategy 2010–2020, which provides a 10-year national policy framework for all levels of government to improve the lives of people with disability.

It will take responsibility for a holistic and integrated national plan for carers to support them with opportunities to participate fully in work, family and community life.

DSS will conduct an open tender in 2014 for the 47 per cent of Disability Employment Services – Disability Management Service that is currently allocated to CRS Australia. Contracts for the remaining business will be extended from July 2015 to March 2018.

142


DSS will develop a new Young Carer Bursary Programme that will provide up to 150 bursaries valued up to $10,000 annually over three years, for young carers aged 25 years and under to help relieve the financial pressure to undertake part-time employment, in addition to educational and caring responsibilities.

In 2014–15, a new Ministerial Advisory Council for Disabilities and Carers will be established to provide advice and recommendations to government on proposed legislation or policies affecting the national disability and carer sector.


143


Table 2.5: Budgeted expenses and resources for Outcome 5Outcome 5: Disability and Carers 2013–14

Estimatedactual

expenses$'000


$'000

Programme 5.1: Disability, Mental Health and CarersAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 266,692 973,227Special accounts 866 2,544Total for Programme 5.1 267,558 975,771

Programme 5.2: National Disability Insurance SchemeAdministered expenses



Departmental appropriation1

Ordinary annual services (Appropriation Bill No. 1) 186,854 79,078Expenses not requiring appropriation in the budget year2 15,492 7,299



Ordinary annual services (Appropriation Bill No. 1) 1,083,337 1,583,159Special accounts 866 2,544

Departmental expensesDepartmental appropriation 186,854 79,078


2013–14 2014–15Average staffing level (number) 462 441Note: Departmental appropriation items and totals, by Outcome are indicative estimates and may change in the course of the budget year as government priorities change.

2 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.

1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s 31)’.

144


Contributions to Outcome 5: Disability and Carers



To provide support and community-based initiatives for people with disability, mental illness and carers, so they can develop their capabilities and actively participate in community and economic life.

Programme component objectivesDisability EmploymentDisability Employment Services (DES) has been in operation since 1 March 2010. The objective of the programme is to help individuals with injury, disability or a health condition to secure and maintain sustainable open employment. The DES programme operates under the terms of the Disability Services Act 1986.

Employment Assistance and Other ServicesEmployment Assistance and Other Services are targeted to support employers employ people with disability and are comprised of the: Employment Assistance Fund; Supported Wage System; Wage Subsidy Scheme; and National Disability Recruitment Coordinator.

Disability and Carer SupportTo provide assistance, support and services for people with disability and carers.

Disability and Carer Service Improvement and Sector SupportTo provide opportunities for people with disability, carers, policy-makers, researchers, national organisations, and service providers, business and community organisations to undertake work to improve the lives of people with disability and carers.

Community Mental HealthTo provide early intervention and other support through community-based initiatives for people with mental illness, their families and carers, so they can develop their capabilities, increase their wellbeing and actively participate in community and economic life.

Linked to: Medicare benefit payments for Medicare Benefits Schedule items under the National Disability Insurance Scheme Transition are managed by DoH. For more information refer to DoH’s 2014–15 PB Statements.

Also linked to: Programme 5.2: National Disability Insurance Scheme.

145



The increase in dollars for Community Mental Health from 2013–14 to 2014–15 reflects the expansion of community mental health initiatives to assist people with severe mental illness and their families and carers.

As a result of the AAO of 18 September 2013, the Disability Employment Services programme was transferred to DSS from the former Department of Education, Employment and Workplace Relations. The budget for 2013–14 represents that proportion of funding for this programme which now resides with DSS. The remainder of the appropriations is reported in the Department of Education’s 2013–14 PB Statements.

The National Disability Special Account is currently designated for the administration of a limited allocation of research and development funds, including contributions from State and Territory governments. The decreased forecast expenses for 2017–18 represents the expected remainder of the limited allocation at that point.

Table 2.5.1: Expenses for Disability, Mental Health and Carers Programme2013–14


2014–15Budget

$'000


$'000


$'000



Community Mental Health 61,535 78,623 78,820 82,960 86,971Disability and Carer Support 27,065 26,310 27,346 48,006 65,728Disability Employment1 174,272 864,548 954,485 1,023,035 1,008,236Disability Service Improvement and Sector Support 3,820 3,746 3,505 3,492 3,516

Special account expenses: National Disability Special Account 866 2,544 2,375 2,384 179

Total programme expenses 267,558 975,771 1,066,531 1,159,877 1,164,6301 As a result of the AAO of 18 September 2013, the Disability Employment programme was transferred to DSS from the former DEEWR. The estimated actual for 2013–14 represents that proportion of funding for this programme which now resides with DSS.

146



Disability Employment• Number of commencements• Total job placements achieved• Employment assistance and other services• National Disability Recruitment Coordinator – Number of job vacancies

generated

Disability and Carer Support• Number of people with disability provided with direct advocacy support

Community Mental Health• Number of people whose lives are affected by mental illness accessing support

services

Disability, Mental Health and Carers Programme deliverables targets2013–14

Estimated actual

2014–15 Budget




Disability Employment

Number of commencements

– Disability Management Service 50,000 50,000 50,000 50,000 50,000

– Employment Support Service 45,000 45,000 45,000 50,000 50,000

Total job placements achieved

– Disability Management Service 31,000 31,000 31,000 34,000 34,000

– Employment Support Service 34,000 34,000 34,000 34,000 34,000

Employment Assistance and Other Services

Other Disability Employment including assistance and services incorporating Wage Subsidy Scheme, Supported Wage System and Employment Assistance Fund 16,500 16,500 16,500 16,500 16,500

National Disability Recruitment Coordinator1

300 job vacancies

300 job vacancies

300 job vacancies

300 job vacancies

300 job vacancies

Disability and Carer Support

Number of people with disability provided with direct advocacy support 10,800 11,000 11,200 11,400 11,600

Community Mental Health

Number of people whose lives are affected by mental illness accessing support services 77,000 80,000 81,000 81,000 81,0001 The National Disability Recruitment Coordinator programme is currently contracted to 30 June 2015.

147



Disability Employment• Proportion of job seekers in employment three months following participation in

Employment Services - Disability Management Service• Proportion of job seekers in employment three months following participation in

Employment Services - Employment Support Service

Disability and Carer Support• Number of people with disability provided with direct advocacy support

Community Mental Health• Percentage of participants maintaining progress against relevant goals• Percentage of participants who report that they are satisfied that the service they

received was appropriate to their needs• Percentage of participants from Indigenous backgrounds• Percentage of participants from culturally and linguistically diverse backgrounds

Disability, Mental Health and Carers Programme key performance indicator targets

2013–14 Estimated

actual

2014–15 Budget




Proportion of job seekers in employment three months following participation in Employment Services:

– Disability Management Service 45% 45% 45% 50% 50%

– Employment Support Service 40% 40% 40% 45% 45%

Community Mental Health

Percentage of participants maintaining progress against relevant goals 80% 80% 80% 80% 80%

Percentage of participants who report that they are satisfied that the service they received was appropriate to their needs 80% 80% 80% 80% 80%

Percentage of participants from Indigenous backgrounds 7% 7% 7% 7% 7%

Percentage of participants from culturally and linguistically diverse backgrounds 16% 16% 16% 16% 16%

148


Programme 5.2: National Disability Insurance Scheme


To improve the wellbeing and social and economic participation of people with disability, and their families and carers, by building a National Disability Insurance Scheme that delivers individualised support through an insurance approach. This programme also includes existing supports that are transitioning in to the Scheme in a phased approach.

Linked to: DoH Programme 5.1: Disability, Mental Health and Carers Programme For more information refer to DoH’s 2014–15 PB Statements.

Also linked to: NDIA Programme 1.1: Reasonable and necessary care and support for participants, Programme 1.2: Sector development and support, and Programme 1.3: Agency costs. For more information refer to NDIA’s 2014–15 Budget Statements.


Programme 3.6: Ageing and Service Improvement


149



The changes in programme expenses across the forward years for NDIS Transition reflects the projected changes in indexation parameters and the impact of policy initiatives.

The reduction in funding for the NDIS from 2014–15 reflects the creation of the NDIA. Funding from 2014–15 is now reflected in the NDIA’s 2014–15 Budget Statements (page 225).

Table 2.5.2: Expenses for National Disability Insurance Scheme2013–14


2014–15Budget

$'000


$'000


$'000



National Disability Insurance Scheme Transition 536,469 528,863 518,976 516,463 524,228National Disability Insurance Scheme 93,322 1,991 2,434 – –


150



National Disability Insurance Scheme• Agreements with States and Territories for National Disability Insurance Scheme

trials, and for transition to full scheme with all States and Territories• Policy developed to respond to evaluation results from the trials sites and for

full-scheme roll-out of the National Disability Insurance Scheme

National Disability Insurance Scheme Transition• Eligible children with disability have access to early intervention services• Parents, carers and families of eligible children have access to information and

support• Number of carers of people with severe or profound disability assisted with

short-term or immediate respite• Number of clients receiving Outside School Hours Care for Teenagers with

Disability services• Number of young carers at risk of not completing secondary education assisted

with respite services• Number of supported employees assisted by Australian Disability Enterprises• Number of people whose lives are affected by mental illness accessing support

services14

14 Reported under the Community Mental Health component of Programme 5.1: Disability, Mental Health and Carers Programme.

151


Programme 5.2 qualitative deliverables

National Disability Insurance Scheme• Support for the Disability Reform Council and related Commonwealth-State

forums• Monitoring and refinements to the National Disability Insurance Scheme design

during trial

National Disability Insurance Scheme deliverables targets2013–14

Estimated actual

2014–15 Budget




National Disability Insurance Scheme

Number of people provided with support 9,500 19,800 31,500 151,400 335,300

National Disability Insurance Scheme Transition1

Eligible children registered to access early intervention services2 25,970 26,560 26,834 27,112 25,612

Number of carers of people with severe or profound disability assisted with short-term or immediate respite 5,500 5,500 5,500 5,500 5,500

Number of clients receiving Outside School Hours Care for Teenagers with Disability services 1,800 1,800 1,800 1,800 1,800

Number of young carers at risk of not completing secondary education assisted with respite services 3,500 3,500 3,500 3,500 3,500

Number of supported employees assisted by Australian Disability Enterprises 21,000 21,000 21,000 21,000 21,0001 Targets will be adjusted in line with participant uptake for the NDIS.2 The reduced number for the 2017–18 forward estimate takes into account children transitioning to the NDIS.

152



National Disability Insurance Scheme• Timely and effective policy advice is provided on full-scheme roll-out of the

National Disability Insurance Scheme, including on the implications for the workforce

• Agreements with States and Territories for full-scheme roll-out are in place

National Disability Insurance Scheme Transition• Percentage and number of individuals, parents and carers who report that they

were assisted to access choices and options that enabled them to manage their needs

• Number of eligible children with disability from Indigenous and culturally and linguistically diverse backgrounds receiving early intervention services

• Number of children with disability receiving early intervention services• Number of parents/carers who access information and support services• Percentage and number of clients from Indigenous and culturally and

linguistically diverse backgrounds• Percentage and number of clients reporting that the services received were

appropriate to their needs as parents/carers• Percentage of clients satisfied that the services they received were appropriate to

their needs as carers• Percentage and number of supported employees/clients likely to have reduced

reliance on income support payments (sufficient income to affect the Disability Support Pension)

Programme 5.2 qualitative key performance indicators

National Disability Insurance Scheme• Amendments to design are made as necessary during the National Disability

Insurance Scheme trials• Evaluation of the National Disability Insurance Scheme trials has commenced to

inform full-scheme roll-out

153







2014–15Budget

$'000


$'000


$'000


$'000Annual departmental expenses:

Programme support 76,406 79,078 73,333 71,174 72,274Programme Support - National Disability Insurance Agency 110,448 – – – –

Expenses not requiring appropriation in the Budget year1 15,492 7,299 6,749 5,946 5,172Total programme expenses 202,346 86,377 80,082 77,120 77,446

1 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.

Note: Departmental appropriation items and totals, by outcome are indicativeestimates and may change in the course of the budget year as government priorities change.





154


Outcome 6: WomenContribute to a significant and sustained reduction in violence against women and their children in Australia through the implementation of the National Plan to Reduce Violence against Women and their Children and the delivery of the Support for Trafficked People programme.

Outcome 6 strategyThe Administrative Arrangements Order of 18 September 2013 resulted in the transfer of the Office for Women to PM&C. The components of Outcome 6 remaining with DSS have transferred to Programme 2.1: Families and Communities. The 2013–14 part-year financial impact on DSS up to the date of transfer of the Office for Women is reported in these PB Statements. For information on the 2014–15 and forward year financial impact, and an outline of the objectives, deliverables and key performance indicators for the Office for Women, refer to PM&C’s 2014–15 PB Statements.


Table 2.6: Budgeted expenses and resources for Outcome 6Outcome 6: Women 2013–14

Estimatedactual

expenses$'000


$'000

Programme 6.1: Gender Equality for WomenAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,153 –Special accounts 140 –Total for Programme 6.1 1,293 –


Ordinary annual services (Appropriation Bill No. 1) 1,153 –Special accounts 140 –

Total expenses for Outcome 6 1,293 –

2013–14 2014–15Average staffing level (number)1 0 01 In 2013-14, the Office for Women was transferred to the Department of the Prime Minister & Cabinet (PM&C). The DSS part-year departmental cost was $0.9m.

155


Contributions to Outcome 6: Women

Programme 6.1: Gender Equality for Women

Table 2.6.1: Expenses for Gender Equality for Women2013–14


2014–15Budget

$'000


$'000


$'000



Women's Leadership and Development1 1,153 – – – –

Special account expenses: Other Services – Services forOther Entities and Trust Moneys1 140 – – – –

Total programme expenses 1,293 – – – –1 As a result of the AAO of 18 September 2013, the Women's Leadership and Development programme and the Select Council on Women Issues Special Account was transferred from DSS to PM&C. The estimated actual for 2013–14 represents the proportion of funding for which DSS had responsibility.

156


Outcome 7: IndigenousClosing the gap in Indigenous disadvantage with improved wellbeing, capacity to participate economically and socially and to manage life-transitions for Indigenous Australians through Indigenous engagement, coordinated whole of government policy advice and targeted support services.

Outcome 7 strategyThe Administrative Arrangements Order of 18 September 2013 resulted in the transfer of Indigenous policy programmes and service delivery to PM&C. The 2013–14 part-year financial impact on DSS up to the date of transfer is reported in these PB Statements. For information on the 2014–15 and forward year financial impact, and an outline of the objectives, deliverables and key performance indicators for the Indigenous outcome, refer to PM&C’s 2014–15 PB Statements.


157


Table 2.7: Budgeted expenses and resources for Outcome 7Outcome 7: Indigenous 2013–14

Estimatedactual

expenses$'000


$'000

Programme 7.1: Economic Development and ParticipationAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 28,617 –Total for Programme 7.1 28,617 –

Programme 7.2: Indigenous Housing and InfrastructureAdministered expenses


Programme 7.3: Native Title and Land RightsAdministered expenses


Programme 7.4: Indigenous Capability and DevelopmentAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 21,512 –Special appropriations 121,932 –Special accounts 57,938 –Total for Programme 7.4 201,382 –

Programme 7.5: Stronger Futures in the Northern TerritoryAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 348 –Special appropriations – –Total for Programme 7.5 348 –


Ordinary annual services (Appropriation Bill No. 1) 119,843 –Special appropriations 121,932 –Special accounts 57,938 –

Total expenses for Outcome 7 299,713 –

2013–14 2014–15Average staffing level (number)1 0 01 In 2013-14 Indigenous programmes, and associated staff were transferred to PM&C. The DSS part-year departmental cost of those transferred programmes was $92.5m.

158


Contributions to Outcome 7: Indigenous

Programme 7.1: Economic Development and Participation

Table 2.7.1: Expenses for Economic Development and Participation1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000


$'000

Annual administered expenses: Community DevelopmentEmployment Projects Programme 28,617 – – – –

Total programme expenses 28,617 – – – –1 As a result of the AAO of 18 September 2013, the Economic Development and Participation programme was transferred from DSS to PM&C. The estimated actual for 2013–14 represents the proportion of funding for which DSS had responsibility.

159


Programme 7.2: Indigenous Housing and Infrastructure

Table 2.7.2: Expenses for Indigenous Housing and Infrastructure1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000



Remote Indigenous Housing 26,971 – – – –Total programme expenses 26,971 – – – –1 As a result of the AAO of 18 September 2013, the Indigenous Housing and Infrastructure programme was transferred from DSS to PM&C. The estimated actual for 2013–14 represents the proportion of funding for which DSS had responsibility.

160


Programme 7.3: Native Title and Land Rights

Table 2.7.3: Expenses for Native Title and Land Rights1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000



Native Title and Land Rights 42,395 – – – –Total programme expenses 42,395 – – – –1 As a result of the AAO of 18 September 2013, the Native Title and Land Rights programme was transferred from DSS to PM&C. The estimated actual for 2013–14 represents the proportion of funding for which DSS had responsibility.

161


Programme 7.4: Indigenous Capability and Development

Table 2.7.4: Expenses for Indigenous Capability and Development1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000



Breaking the Cycle of Drug and Alcohol Abuse in Indigenous Communities 439 – – – –Indigenous Capability and Development 14,362 – – – –Indigenous Healing Foundation – – – – –Reconciliation Australia 1,800 – – – –

National Aboriginal and Torres Strait Islander Representative Body 4,911 – – – –

Special appropriations:Aboriginal Land Rights (Northern Territory) Act 1976

Aboriginals Benefit AccountSpecial Appropriation 121,000 – – – –Ranger Agreement 932 – – – –

Special account expenses: Aboriginals Benefit AccountSpecial Account 52,581 – – – –Aboriginal and Torres StraitIslander Land Account – – – – –Indigenous Communities StrategicInvestment Programme Special Account 770 – – – –Indigenous Remote ServiceDelivery Special Account 4,230 – – – –Other Services – Services forOther Entities and Trust Moneys 357 – – – –

Total programme expenses 201,382 – – – –

1 As a result of the AAO of 18 September 2013, the Indigenous Capability and Development programme was transferred from DSS to PM&C. The estimated actual for 2013–14 represents the proportion of funding for which DSS had responsibility.

162


Programme 7.5: Stronger Futures in the Northern Territory

Table 2.7.5: Expenses for Stronger Futures in the Northern Territory1

2013–14Estimated

actual$'000

2014–15Budget

$'000


$'000


$'000



Stronger Futures in the NorthernTerritory 348 – – – –

Total programme expenses 348 – – – –1 As a result of the AAO of 18 September 2013, the Stronger Futures in the Northern Territory programme was transferred from DSS to PM&C. The estimated actual for 2013–14 represents the proportion of funding for which DSS had responsibility.

163


Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2014–15 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between yearsAdministered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period may, with the agreement of the Finance Minister, be moved to a future year. Table 3.1.1 shows the movement of administered funds between years.

Table 3.1.1: Movement of administered funds between years2013–14

$'0002014–15

$'0002015–16

$'0002016–17

$'0002017–18

$'000Outcome 2:

Programme 2.1 Families and CommunitiesThis reflects a change in timing for the delivery of settlement support payments. (16,200) 16,200 – – –Outcome 3:

Programme 3.1 Access and InformationThis reflects a change in timing for the delivery of the new Aged Care Assessment framework and tool. (2,885) 1,785 1,100 – –

Programme 3.1 Access and InformationThis reflects a change in timing for the development and delivery of the Aged Care Gateway. (6,052) 3,052 3,000 – –

Programme 3.7 Programme Support for Outcome 3This reflects a change in the timing for the development of the Aged Care Gateway. (10,845) 10,845 – – –Total Movement ofAdministered Funds (35,982) 31,882 4,100 – –

164


3.1.2 Special accountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by DSS.

Table 3.1.2: Estimates of special account flows and balancesOutcome Opening

balance2014–152013–14

$'000

Receipts2014–152013–14

$'000

Payments

2014–152013–14

$'000

Adjustments

2014–152013–14

$'000

Closingbalance

2014–152013–14

$'000

Outcome 2Financial Management and Accountability Act 1997(s 20)

Other Services - Services for Other Entities and Trust Moneys (A) 2.1 2,510 6,341 (7,140) 555 2,266

4,890 6,832 (9,212) – 2,510Social and Community Services Pay Equity SpecialAccount Act 2012

Social and CommunityServices Pay Equity SpecialAccount (A) 2.3 50,923 204,440 (204,440) – 50,923

50,923 145,200 (145,200) – 50,923Outcome 5Financial Management andAccountability Act 1997(s 20)

National Disability SpecialAccount (A) 5.1 7,473 – (2,544) – 4,929

7,430 909 (866) – 7,473Outcome 6Financial Management andAccountability Act 1997(s 20)

Other Services – Servicesfor Other Entities andTrust Moneys (A) 6.1 – – – – –

50 90 (140) – –Outcome 7Aboriginal and Torres Strait Islander Act 2005

Aboriginal and Torres Strait Islander Land Account (A) 7.4 – – – – –

1,943,186 22,178 – (1,965,364) –

165


Table 3.1.2: Estimates of special account flows and balances (continued)Outcome Opening

balance2014–152013–14

$'000

Receipts2014–152013–14

$'000

Payments

2014–152013–14

$'000

Adjustments

2014–152013–14

$'000

Closingbalance

2014–152013–14

$'000

Outcome 7 (continued)Aboriginal and Land Rights (Northern Territory) Act 1976

Aboriginals BenefitAccount (A) 7.4 – – – – –

418,295 70,033 (52,581) (435,747) –Corporations (Aboriginal and Torres Strait Islander)Act 2006

Aboriginal and TorresStrait Islander Corporations UnclaimedMoney Account (A) 7.4 – – – – –

550 160 – (710) –Financial Management andAccountability Act 1997(s 20)

Indigenous CommunitiesStrategic InvestmentProgram Special Account(A) 7.4 – – – – –

200 3,410 (770) (2,840) –Indigenous RemoteService DeliverySpecial Account (A) 7.4 – – – – –

22,901 769 (4,230) (19,440) –Other Services – Servicesfor Other Entities andTrust Moneys (A) 7.4 – – – – –

531 541 (357) (715) –Total Special Accounts 2014–15 Budget estimate 60,906 210,781 (214,124) 555 58,118

Total Special Accounts 2013–14 estimate actual 2,448,956 250,122 (213,356) (2,424,816) 60,906(A) = Administered(D) = Departmental

166


3.1.3 Australian Government Indigenous ExpenditureThe Australian Government Indigenous Expenditure Report provides a breakdown of estimated Indigenous expenditure administered by DSS.

Table 3.1.3 shows the estimated Indigenous expenditure in 2013–14 and 2014–15 by appropriation and outcome that is administered by DSS only. The reduction in 2014–15 is primarily due to the transfer of Indigenous policy and programmes to PM&C under the Administrative Arrangements Order (AAO) of 18 September 2013.

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)Other Total Programme

Bill No. 1$’000

Bill No. 2$’000

SpecialApprop

$’000

TotalApprop

$’000 $’000 $’000DSSOutcome 1

Social SecurityAdministered 2014–15 – – 257,041 257,041 – 257,041 1.11Administered 2013–14 – – 197,040 197,040 – 197,040 1.11

Total Outcome 2014–15 – – 257,041 257,041 – 257,041Total Outcome 2013–14 – – 197,040 197,040 – 197,040Outcome 2

Families and CommunitiesAdministered 2014–15 – – – – – – 2.1Administered 2013–14 43,726 – – 43,726 – 43,726 2.1

Total Outcome 2014–15 – – – – – –Total Outcome 2013–14 43,726 – – 43,726 – 43,726Outcome 3

Ageing and Aged CareAdministered 2014–15 32,347 – – 32,347 – 32,347 3.4Administered 2013–14 16,195 – – 16,195 – 16,195 3.4Administered 2014–15 18,893 – – 18,893 – 18,893 3.5Administered 2013–14 10,682 – – 10,682 – 10,682 3.5

Total Outcome 2014–15 51,240 – – 51,240 – 51,240Total Outcome 2013–14 26,877 – – 26,877 – 26,877

Appropriations

167


Table 3.1.3: Australian Government Indigenous Expenditure (AGIE) (continued)Other Total Programme

Bill No. 1$’000

Bill No. 2$’000

SpecialApprop

$’000

TotalApprop

$’000 $’000 $’000(A) (B) (C) (D) (E) (F)=(D)+(E) (G)

Outcome 7Indigenous

Administered 2014–15 – – – – – – 7.1Administered 2013–14 28,617 – – 28,617 – 28,617 7.1Departmental 2014–15 – – – – – – 7.1Departmental 2013–14 – – – – – – 7.1Administered 2014–15 – – – – – – 7.2Administered 2013–14 26,971 – – 26,971 – 26,971 7.2Departmental 2014–15 – – – – – – 7.2Departmental 2013–14 – – – – – – 7.2Administered 2014–15 – – – – – – 7.3Administered 2013–14 42,395 – – 42,395 – 42,395 7.3Departmental 2014–15 – – – – – – 7.3Departmental 2013–14 – – – – – – 7.3Administered 2014–15 – – – – – – 7.4Administered 2013–14 21,512 – 121,932 143,444 57,938 201,382 7.4Departmental 2014–15 – – – – – – 7.4Departmental 2013–14 – – – – – – 7.4Administered 2014–15 – – – – – – 7.5Administered 2013–14 348 – – 348 – 348 7.5Departmental 2014–15 – – – – – – 7.5Departmental 2013–14 – – – – – – 7.5Departmental 2014–15 – – – – – –Departmental 2013–14 92,500 – – 92,500 – 92,500

Total Outcome 2014–15 – – – – – –Total Outcome 2013–14 212,343 – 318,972 531,315 57,938 589,253

Total Administered 2014–15 51,240 – 257,041 308,281 – 308,281Total Administered 2013–14 190,446 – 318,972 509,418 57,938 567,356

Total Departmental 2014–15 – – – – – –Total Departmental 2013–14 92,500 – – 92,500 – 92,500

Total AGIE 2014–15 51,240 – 257,041 308,281 – 308,281Total AGIE 2013–14 282,946 – 318,972 601,918 57,938 659,856

Appropriations

168


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statementsTable 3.2.1 recognises revenue on an accrual basis.

3.2.2 Analysis of budgeted financial statementsDepartmental

Income and expenses

DSS is budgeting for a balanced operating result in 2014–15 before allowing for unfunded depreciation expenses of $53.3 million. Under net cash funding arrangements, asset replacement is funded through a capital appropriation.

Total operating revenue for 2014–15 is estimated at $552.5 million, while expenditure is estimated to be $631.1 million, inclusive of unfunded depreciation. These budgeted amounts are lower than in 2013–14, primarily due to the AAO of 18 September 2013 and Australian Government decisions and measures.

Balance sheet

DSS’ budgeted net asset position for 2014–15 is expected to be $189.6 million, lower than 2013–14 due to the budgeted operating loss, partially offset by capital appropriations of $25.2 million.

Administered

Income and expenses

DSS will administer the collection of non-taxation revenue estimated at $360.7 million in 2014–15, higher than 2013–14, mainly due to special account receipts.

DSS will administer programmes totalling $123,152.3 million in 2014–15, higher than in 2013–14 due to the full year effect of the AAO of 18 September 2013, demographic changes and policy initiatives.

Balance sheet

Total assets administered on behalf of Australian Government are expected to be $4,427.6 million, $2,120.2 million lower than in 2013–14, primarily due to the transfer of administered investments to PM&C following the AAO of 18 September 2013.

Total liabilities administered on behalf of the Australian Government are expected to be $8,789.3 million, lower than 2013–15, primarily due to reduced personal benefits provisions.

169


3.2.3 Budgeted financial statements tablesDepartmental financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

Estimatedactual

Budgetestimate

Forwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

EXPENSES Employee benefits 413,532 373,933 346,114 335,066 340,267Suppliers 187,327 200,981 185,919 179,949 182,750Payments to NDIA 110,448 – – – –Depreciation and amortisation 59,043 53,328 49,227 43,265 37,628Other 2,843 2,843 2,843 2,843 2,843Total expenses 773,193 631,085 584,103 561,123 563,488LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and renderingof services 71,188 17,429 17,429 17,429 17,429Other revenue 6,565 6,655 6,655 6,655 6,655Total own-source revenue 77,753 24,084 24,084 24,084 24,084Gains Other gains 1,290 1,200 1,200 1,200 1,200Total gains 1,290 1,200 1,200 1,200 1,200Total own-source income 79,043 25,284 25,284 25,284 25,284

Net cost of (contribution by) services 694,150 605,801 558,819 535,839 538,204Revenue from Government 633,107 552,473 509,592 492,574 500,576Surplus (deficit) attributable tothe Australian Government (61,043) (53,328) (49,227) (43,265) (37,628)

Total comprehensive income (61,043) (53,328) (49,227) (43,265) (37,628)

Total comprehensive income(loss) attributable to theAustralian Government (61,043) (53,328) (49,227) (43,265) (37,628)

170


Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June) (continued)

Estimatedactual

Budget Forwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

Total Comprehensive Income (loss) less depreciation/ amortisation expenses previously funded through revenue appropriations (2,000) – – – –plus depreciation/amortisation expenses previously funded through revenue appropriations1 (59,043) (53,328) (49,227) (43,265) (37,628)Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income (61,043) (53,328) (49,227) (43,265) (37,628)

Note: Impact of Net Cash Appropriation Arrangements

Prepared on an Australian Accounting Standards basis.1 From 2010–11, the Government introduced net cash appropriation arrangements where Bill (No. 3) revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the departmental capital budget, or DCB) provided through Bill (No. 3) equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 departmental capital budget statement.

171


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)Estimated

actualBudget

estimateForwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

ASSETS Financial assets

Cash and cash equivalents 4,009 4,009 4,009 4,009 4,009Trade and other receivables 150,428 141,526 129,257 124,385 126,679

Total financial assets 154,437 145,535 133,266 128,394 130,688Non-financial assets

Land and buildings 152,337 141,872 134,551 124,959 116,609Property, plant and equipment 24,877 23,050 21,690 19,431 17,104Intangibles 68,457 63,431 59,687 53,471 47,067Other non-financial assets 10,153 10,153 10,153 10,153 10,153

Total non-financial assets 255,823 238,507 226,080 208,014 190,933

Total assets 410,260 384,042 359,346 336,407 321,621LIABILITIES Payables

Suppliers 25,127 40,270 37,274 36,084 36,644Other payables 25,944 25,944 25,944 25,944 25,944

Total payables 51,071 66,214 63,218 62,028 62,588Provisions

Employee provisions 137,844 124,644 115,371 111,689 113,422Other provisions 3,576 3,576 3,576 3,576 3,576

Total provisions 141,420 128,220 118,947 115,265 116,998Total liabilities 192,491 194,434 182,165 177,293 179,587Net assets 217,769 189,608 177,181 159,115 142,034EQUITY1 Parent entity interest

Contributed equity 289,685 314,852 351,652 376,851 397,398Reserves 67,541 67,541 67,541 67,541 67,541Retained surpluses (accumulated deficit) (139,457) (192,785) (242,012) (285,277) (322,905)

Total parent entity interest 217,769 189,608 177,181 159,115 142,034

Total Equity 217,769 189,608 177,181 159,115 142,034Prepared on an Australian Accounting Standards basis.1 'equity' is the residual interest in assets after deduction of liabilities.

172


Table 3.2.3: Departmental statement of changes in equity – summary of movement (budget year 2014–15)

Retainedearnings

$’000

Assetrevaluation

reserve$’000

Contributedequity/capital$’000

Totalequity

$’000

Opening balance as at 1 July 2014Balance carried forward from previous period (139,457) 67,541 289,685 217,769

Adjusted opening balance (139,457) 67,541 289,685 217,769Comprehensive income

Surplus (deficit) for the period (53,328) – – (53,328)Total comprehensive income (53,328) – – (53,328)

of which:Attributable to the Australian Government (53,328) – – (53,328)

Transactions with ownersContributions by owners

Contributions – other – – – –Equity Injection – Appropriation – – 6,373 6,373Departmental Capital Budget (DCBs) – – 18,794 18,794

Subtotal transactions with owners – – 25,167 25,167Estimated closing balance as at 30 June 2015 (192,785) 67,541 314,852 189,608Closing balance attributable to the Australian Government (192,785) 67,541 314,852 189,608Prepared on an Australian Accounting Standards basis.

173


Table 3.2.4: Budgeted departmental statement of cash flows(for the period ended 30 June)

Estimatedactual

Budgetestimate

Forwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

OPERATING ACTIVITIESCash received

Goods and services 71,188 17,429 17,429 17,429 17,429Appropriations 590,714 561,376 521,861 497,446 498,282Other 11,951 6,655 6,655 6,655 6,655

Total cash received 673,853 585,460 545,945 521,530 522,366Cash used

Employees 375,163 387,132 355,387 338,749 338,533Suppliers 199,087 185,839 188,915 181,139 182,190Payments to NDIA 110,448 – – – –Other – 1,643 1,643 1,643 1,643

Total cash used 684,698 574,615 545,945 521,530 522,366Net cash from (used by)

operating activities (10,845) 10,845 – – –INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment – – – – –

Total cash received – – – – –Cash used

Purchase of property, plant and equipment 48,857 36,012 36,800 25,199 20,547Purchase of intangibles – – – – –

Total cash used 48,857 36,012 36,800 25,199 20,547Net cash from (used by) investing activities (48,857) (36,012) (36,800) (25,199) (20,547)FINANCING ACTIVITIESCash received

Appropriations – contributed equity 59,702 25,167 36,800 25,199 20,547Total cash received 59,702 25,167 36,800 25,199 20,547Net cash from (used by)

financing activities 59,702 25,167 36,800 25,199 20,547Net increase (decrease) in cash held – – – (0) (0)

Cash and cash equivalents at the beginning of the reporting period 4,009 4,009 4,009 4,009 4,009

Cash and cash equivalents at the end of the reporting period 4,009 4,009 4,009 4,009 4,009Prepared on an Australian Accounting Standards basis.

174


Table 3.2.5: Departmental capital budget statementEstimated

actualBudget

estimateForwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

NEW CAPITAL APPROPRIATIONSCapital Budget – Bill 1 (DCB) 18,039 18,794 18,401 18,267 20,547Equity Injections – Bill 2 41,663 6,373 18,399 6,932 –

Total new capital appropriations 59,702 25,167 36,800 25,199 20,547Provided for:

Purchase of non-financial assets 59,702 25,167 36,800 25,199 20,547Total Items 59,702 25,167 36,800 25,199 20,547

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations1 30,818 17,218 18,399 6,932 –Funded by capital appropriations – DCB2 18,039 18,794 18,401 18,267 20,547Funded internally from departmental resources3 – – – – –

TOTAL 48,857 36,012 36,800 25,199 20,547RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLETotal purchases 48,857 36,012 36,800 25,199 20,547Total cash used to acquire assets 48,857 36,012 36,800 25,199 20,547Prepared on an Australian Accounting Standards basis.1 Includes both current and prior Bill (No. 2/4) appropriations.2 Does not include annual finance lease costs. Includes purchase from current and previous years departmental capital budgets.3 Includes annual and prior year appropriations, s31 relevant agency receipts, and proceeds from the sale of assets.

175


Table 3.2.6: Statement of asset movements (2014–15)

Land$’000

Buildings$’000

Otherproperty,

plant &equipment

$’000Intangibles

$’000Other$’000

Total$’000

As at 1 July 2014Gross book value 21,890 170,365 38,770 179,791 10,153 420,969Accumulated depreciation/amortisation – (39,918) (13,893) (111,335) – (165,146)Opening net book balance 21,890 130,447 24,877 68,457 10,153 255,823

CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase – appropriation equity1 – 10,677 1,743 4,798 – 17,218

By purchase – appropriation ordinary annual services2 – 11,654 1,903 5,237 – 18,794

Total additions – 22,331 3,647 10,035 – 36,012Other movementsAsset re-classifications – – – – – –Depreciation/amortisation expense – (32,795) (5,473) (15,060) – (53,328)As at 30 June 2015Gross book value 21,890 192,695 42,416 189,826 10,153 456,981Asset re-classifications – – – – – –Accumulated depreciation/amortisation – (72,713) (19,366) (126,395) – (218,474)Closing net book balance 21,890 119,982 23,050 63,431 10,153 238,507Prepared on an Australian Accounting Standards basis.1 'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Bill (No. 2) 2014-15.2 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1) 2014-15 for depreciation/amortisation expenses, departmental capital budgets or other operational expenses.

176


Administered financial statements

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

Estimatedactual

Budgetestimate

Forwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Grants 2,530,776 3,418,883 3,577,916 4,883,848 7,551,342Subsidies 7,736,422 10,860,826 11,633,242 12,461,059 13,350,850Personal benefits 101,308,423 107,459,922 109,767,392 114,349,993 117,117,831Suppliers 439,405 1,091,783 1,226,066 1,280,209 1,272,192Write down and impairment of assets 8,264 109,712 159,469 146,564 143,601Other 276,046 211,179 265,949 322,462 373,026

Total expenses administered on behalf of government 112,299,336 123,152,305 126,630,034 133,444,135 139,808,842LESS: OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Interest 117,196 27,553 30,991 37,183 42,750Other sources of non-taxation revenues 54,077 333,178 331,298 330,513 323,741

Total non-taxation 171,273 360,731 362,289 367,696 366,491Total own-source revenues administered on behalf of government 171,273 360,731 362,289 367,696 366,491

Total own-source income administered on behalf of government 171,273 360,731 362,289 367,696 366,491Net cost of services 112,128,063 122,791,574 126,267,745 133,076,439 139,442,351Surplus (deficit) (112,128,063) (122,791,574) (126,267,745) (133,076,439) (139,442,351)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluationsurplus – – – – –

Total other comprehensiveincome – – – – –Total comprehensive income (loss) (112,128,063) (122,791,574) (126,267,745) (133,076,439) (139,442,351)Prepared on an Australian Accounting Standards basis.

177


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

Estimatedactual

Budgetestimate

Forwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000

ASSETS Financial assets

Cash and cash equivalents 29,197 9,705 9,705 9,705 12,460Receivables 2,388,644 2,056,713 1,245,326 1,013,510 802,506Investments 4,121,400 53,363 117,960 245,079 350,887

Total financial assets 6,539,241 2,119,781 1,372,991 1,268,294 1,165,853

Non-financial assetsLand and buildings 380 380 380 380 380Other financial assets 8,164 20 20 20 20

Total non-financial assets 8,544 400 400 400 400

Total assets administered on behalf of government 6,547,785 2,120,181 1,373,391 1,268,694 1,166,253

LIABILITIESProvisions

Personal benefits provision 5,816,818 5,656,475 5,059,740 4,953,245 4,735,648Total provisions 5,816,818 5,656,475 5,059,740 4,953,245 4,735,648

PayablesSuppliers 61,159 56,874 56,874 56,874 56,874Subsidies 120,071 157,718 187,562 248,897 257,391Personal benefits payable 2,832,335 2,843,989 2,801,678 2,957,221 3,258,901Grants 76,134 74,215 73,151 72,114 71,057

Total payables 3,089,699 3,132,796 3,119,265 3,335,106 3,644,223

Total liabilities administered on behalf of government 8,906,517 8,789,271 8,179,005 8,288,351 8,379,871Net assets/(liabilities) (2,358,732) (6,669,090) (6,805,614) (7,019,657) (7,213,618)Prepared on an Australian Accounting Standards basis.

178


Table 3.2.9: Schedule of budgeted administered cash flows(for the period ended 30 June)

Estimatedactual

Budgetestimate

Forwardestimate

Forwardestimate

Forwardestimate

2013–14$’000

2014–15$’000

2015–16$’000

2016–17$’000

2017–18$’000


Net GST received 177,797 129,016 177,797 177,797 177,797Other 209,989 595,744 594,258 586,366 575,606


Grant payments 2,494,976 3,417,694 3,578,980 4,871,117 7,515,900Subsidies paid 7,657,645 10,839,221 11,627,780 12,451,908 13,349,657Personal benefits 102,679,581 108,328,227 111,061,922 114,977,829 117,676,781Suppliers 430,623 1,065,583 1,226,066 1,280,209 1,272,179Net GST paid 177,797 177,755 177,797 177,797 177,797Other 268,238 207,585 265,949 322,462 373,026

Total cash used 113,708,860 124,036,065 127,938,494 134,081,322 140,365,340Net cash from (used by) operating activities (113,321,074) (123,311,305) (127,166,439) (133,317,159) (139,611,937)

INVESTING ACTIVITIESCash received

Repayment of Advances 49,657 14,344 5,616 5,817 32,983Total cash received 49,657 14,344 5,616 5,817 32,983Cash used

Loans and Advances 170,000 303,670 458,418 426,177 423,281Total cash used 170,000 303,670 458,418 426,177 423,281

Net cash from (used by) investing activities (120,343) (289,326) (452,802) (420,360) (390,298)

Net increase or (decrease) in cash held (113,441,417) (123,600,631) (127,619,241) (133,737,519) (140,002,235)

Cash and cash equivalents atbeginning of reporting period 74,913 29,197 9,705 9,705 9,705

Cash from Official Public Account for:

- Appropriations 113,764,963 124,345,518 128,344,077 134,479,719 140,714,402Cash to Official Public Account for:

- Appropriations (369,262) (764,379) (724,836) (742,200) (709,412)Cash and cash equivalents at end of reporting period 29,197 9,705 9,705 9,705 12,460Prepared on an Australian Accounting Standards basis.

179


Table 3.2.10: Statement of administered asset movements (2014–15)Land$’000

Buildings$’000

Total$’000

As at 1 July 2014Gross book value 80 300 380Accumulated depreciation/amortisation – – –Opening net book balance 80 300 380CAPITAL ASSET ADDITIONSFrom acquisition of entities or operations – – –

(including restructuring)Total additions – – –

As at 30 June 2015Gross book value 80 300 380Accumulated depreciation/amortisation – – –Closing net book balance 80 300 380Prepared on an Australian Accounting Standards basis.

180


3.2.4 Notes to the financial statements Budgeted statements of income and expenditure, assets and liabilities and cash flows have been included for the financial years 2013–14 to 2017–18. These statements are prepared in accordance with the requirements of the Australian Government's financial budget and reporting framework.

Amounts in these statements are rounded to the nearest thousand dollars.

Reporting Entities

DSS’ budgeted financial statements include the Social Security Appeals Tribunal.

Departmental and Administered Items

Departmental revenues, expenses, assets and liabilities are those which are controlled by DSS. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by DSS in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities which are managed by DSS on behalf of the Australian Government, according to set government directions. Administered expenses include subsidies, grants personal benefit payments and suppliers.

The distinction between departmental and administered funding enables an assessment of the administrative efficiency of the department in managing government programmes.

Asset Valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Commentary – Financial Statements

Intangibles (Departmental)

Intangibles represent the amount of computer software currently recorded by DSS. Intangible assets are recorded at cost.

Employee provisions (Departmental)

Employee provisions consist of accrued leave entitlements, accrued salary and wages and superannuation payments that are owed to employees at the end of the financial year.

181


Receivables (Administered)

Administered receivables represent amounts owing to the Australian Government for overpayments to benefit recipients. The figure presented in the financial statements is net of provisions recognised for bad and doubtful debts.

Non-Financial Assets – Other (Administered)

Other non-financial assets item relates to estimated administered prepayments at the end of the financial year.

Personal benefits payable (Administered)

Personal benefits payable relates to special appropriation amounts recognised as payables due to the timing of pay days to benefit recipients at the end of the financial year.

182

AUSTRALIAN AGED CAREQUALITY AGENCY



Section 1: Agency overview and resources..........................................................1811.1 Strategic direction statement................................................................................1811.2 Agency resource statement..................................................................................1821.3 Budget measures table........................................................................................183

Section 2: Outcomes and planned performance...................................................1842.1 Outcomes and performance information..............................................................184


185




The Australian Aged Care Quality Agency (the Quality Agency) is a statutory agency established under the Australian Aged Care Quality Agency Act 2013. The Quality Agency started on 1 January 2014 replacing Aged Care Standards and Accreditation Agency Ltd as the accreditation body for residential aged care. The Quality Agency is subject to the Financial Management and Accountability Act 1997 (FMA Act) and will be subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act) from 1 July 2014.

The Australian Government, through the Quality Agency, manages the accreditation and ongoing supervision of Australian Government subsidised aged care facilities15, and promotes high quality care to care recipients by providing information, education and training services. The Quality Agency liaises with the Department of Social Services about facilities that do not comply with the Accreditation Standards16 under the Aged Care Act 1997.

The Quality Agency will become responsible for quality review of aged care services in the community from 1 July 2014. The role and functions of the Quality Agency are set out under the Quality Agency Principles and Division 80 of the Aged Care Act 1997.

15 Residential aged care is regulated by the Australian Government, which provides subsidies to approved providers, whose care and services have been accredited against the Accreditation Standards.

16 Available at www.aacqa.gov.au.187


Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by Departmental classifications.

Table 1.1: Australian Aged Care Quality Agency resource statement – budget estimates for 2014–15 as at Budget May 2014

Estimate Proposed Total Actualof prior + at Budget = estimate available

year amounts appropriation available in

2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000


Departmental appropriationDepartmental appropriation2 21,188 21,188 13,038s31 Relevant agency receipts3 20,718 20,718 3,440Total – 41,906 41,906 16,478

Total ordinary annual services A – 41,906 41,906 16,478

Other services

Total other services B – – – –

Total available annual appropriations – 41,906 41,906 16,478

Special appropriations

Total special appropriations C – – – –

Total appropriations excluding Special Accounts – 41,906 41,906 16,478

Special Accounts

Total Special Account D – – – –

Total resourcingA+B+C+D – 41,906 41,906 16,478Total net resourcing for the Australian Total net resourcing for the Australian Aged Care Quality Agency – 41,906 41,906 16,478Note: All figures are GST exclusive1 Appropriation Bill (No.1) 2014–152 Includes an amount of $1.046m in 2014–15 for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.3 s 31 Relevant Agency receipts - estimate

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Australian Aged Care Quality Budget Statements

1.3 BUDGET MEASURES

Budget measures relating to the Australian Aged Care Quality Agency are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Australian Aged Care Quality Agency 2014–15 budget measuresPart 1: Measures announced since the 2013–14 MYEFO

2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000

Expense measures

Efficiency Dividend – a further temporary increase of 0.25 per cent1,2

1.1

Administered expenses – – – – –

Departmental expenses – (762) (1,517) (2,131) (2,411)

Total – (762) (1,517) (2,131) (2,411)

Total expense measures

Administered – – – – –

Departmental – (762) (1,517) (2,131) (2,411)

Total – (762) (1,517) (2,131) (2,411)

1 The measure Efficiency Dividend – a further temporary increase of 0.25 per cent is a Cross Portfolio measure. The full description and package appear in Budget Paper No.2 under Cross Portfolio.2 This measure reflects the full efficiency dividend of 2.5 percent as this is the first time an efficiency dividend has been applied to the Quality Agency.

Programme

Prepared on a Government Finance Statistics (fiscal) basis

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Australian Aged Care Quality Agency Budget Statements



Outcome 1High-quality care for persons receiving Australian Government subsidised residential aged care and aged care in the community through the accreditation of residential aged care services, the quality review of aged care services including services provided in the community, and the provision of information, education and training to the aged care sector.

Outcome 1 strategyThe Australian Government is committed to providing high quality residential aged care for older people. One mechanism to achieve this is through the residential aged care accreditation process. This accreditation process assesses a residential aged care home’s performance against the Accreditation Standards. The Australian Government, through the Quality Agency, supervises and monitors performance against the Accreditation Standards to ensure residents receive a high standard of care in aged care homes.

The Australian Government is also committed to providing high quality care for older people in the community. It achieves this through the quality review of aged care services provided in the community against the Home Care Standards set out in the Quality of Care Principles made under section 96–1 of the Aged Care Act 1997. From 1 July 2014 the Quality Agency will fulfil this function.

The Quality Agency actively engages with industry and the public about issues and developments in aged care. Its role assists to raise aged care industry standards in general, leading to better outcomes in the provision of care to older people.


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Table 2.1: Budgeted expenses for Outcome 1Outcome 1 2013–14 2014–15

Estimated Estimatedactual expenses

expenses$'000 $'000

Programme 1.1Departmental expenses

Departmental appropriation 1 16,188 40,860Expenses not requiring appropriation in the Budget year 2 290 1,046


Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 16,188 40,860Expenses not requiring appropriation in the Budget year 2 290 1,046

Total expenses for Outcome 1 16,478 41,9062013–14 2014–15

Average Staffing Level (number) 209 2371 Departmental Appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and Revenue from independent sources (s31)'.2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Makegood Expense, Audit Fees.

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Contributions to Outcome 1

Programme 1.1: Accrediting, monitoring and promoting high quality care through information, education and training for Australian Government funded aged care homes and community care providers

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Manage accreditation of aged care servicesThe Australian Government, through the Quality Agency, manages the accreditation process for all Australian Government subsidised aged care homes to protect the health, safety and wellbeing of residents, and promote high quality care. In 2014–15 the Quality Agency will conduct accreditation audits of approximately 1,425 aged care homes whose accreditation is due for review. This involves the assessment of compliance against the 44 outcomes of the Accreditation Standards set out in the Quality of Care Principles 1997.

Monitor compliance with the Accreditation StandardsThe Australian Government, through the Quality Agency, promotes high quality aged care by monitoring aged care providers’ performance against the Accreditation Standards, using assessment contacts and review audits.

The Quality Agency conducts at least one unannounced assessment contact each year at every Australian Government-subsidised aged care home, and undertakes follow-up assessment contacts and review audits as required.

Review quality of aged care to older people in the communityThe Australian Government promotes high quality aged care provided in the community by the quality review of aged care services against the Home Care Standards set out in the Quality of Care Principles made under section 96–1 of the Aged Care Act 1997. From 1 July 2014 the Quality Agency will fulfil this function.

Programme 1.1 objective (continued)

Develop and deliver information publications and education services that promote high quality aged careThe Australian Government, through the Quality Agency, will continue to assess and develop strategies to promote high quality care for residents of aged care facilities. During 2014–15, the Quality Agency will conduct six Better Practice Conferences, and will deliver up to 450 QUEST sessions (free education sessions to industry) covering the Accreditation Standards, as well as 48 workshops and 53 courses. The Quality Agency will also provide a range of educational resources, including self-directed educational packages, on its website. The educational activities will target approved providers of residential aged care services, helping to improve care for residents and strengthen management systems that support delivery of aged care services for residents. The Quality Agency will obtain feedback from attendees to identify knowledge gaps and further improve these activities.

In 2014–15, the Quality Agency will continue to provide information to the aged care industry on improving the quality of care for residents through its monthly publication, The Standard, and a series of fact sheets on risk management, infection control, continuous improvement, emergency planning and information systems.

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194


Programme 1.1 qualitative deliverables

• Develop and deliver information publications and education services that promote high quality aged care

Deliverable TargetDevelop and deliver publications and education services that promote high quality care

Delivery of Better Practice conferences, workshops, courses and QUEST sessions

Programme 1.1 quantitative deliverables targets2013–14

Estimated actual

2014–15 Budget




Manage accreditation of aged care services

– Number of aged care homes audited for re-accreditation 484 1,425 890 490 1,425

– Percentage of site audits completed within statutory timeframes following receipt of a valid application 100% 100% 100% 100% 100%

Monitor compliance with the Accreditation Standards

– Number of unannounced visits per aged care home per year ≥1 ≥1 ≥1 ≥1 ≥1

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• Develop and deliver information publications and education services that promote high quality aged care

Key performance indicators Target

Residential aged care providers are made aware of methods and strategies to improve aged care and strengthen management systems

Attendance by aged care providers at Better Practice conferences, workshops, courses and QUEST sessions held by the Quality Agency.

Quantitative key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Manage accreditation of aged care services

– Percentage of aged care homes that complied with the Accreditation Standards at the last accreditation audit >92% >92% >92% >92% >92%

Monitor compliance with the Accreditation Standards

– Number of homes assessed to be non compliant during the year <300 <300 <300 <300 <300

– Percentage of homes achieving compliance by the end of the ‘timetable for improvement’ period ≥90% ≥90% ≥90% ≥90% ≥90%

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3.1.1 Movement of administered funds between yearsThe Quality Agency does not have any movements of funds between years.

3.1.2 Special accountsThe Quality Agency is not responsible for any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous Statement is not applicable because the Quality Agency has no Indigenous specific expenses.



Income and expenses

The Quality Agency is budgeting for a break-even position in 2014–15 and the forward years after adjusting for depreciation and amortisation expenses.

Total own-source revenue for 2014–15 is expected to be $20.7 million. Revenue from government is expected to be $21.2 million.

Total expenses for 2014–15 are expected to be $41.9 million, compared to $16.8 million for the six months to 30 June 2014.

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Balance sheet

The Quality Agency has a budgeted net asset position of $14.6 million in 2014–15. This is a result of the assets and liabilities of Aged Care Standards and Accreditation Agency Ltd becoming the assets and liabilities of the Commonwealth, through the Quality Agency, on 1 January 2014.

Total assets for 2014–15 are estimated to be $22.9 million, comprising $21.7 million of financial assets and $1.2 million in non-financial assets.

Total liabilities for 2014–15 are estimated to be $8.3 million made up of accrued employee entitlements $4.7 million, suppliers payables $1.1 million, other payables $2.0 million and other provisions of $0.4 million.

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Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

Estimated Budget Forward Forward Forwardactual estimate estimate estimate estimate

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 12,071 26,838 26,874 26,880 28,648Suppliers 4,407 14,022 9,073 7,366 5,783Depreciation and amortisation 290 1,046 1,026 1,138 1,138Total expenses 16,768 41,906 36,973 35,384 35,569LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 3,440 20,718 12,671 11,612 11,612Total own-source revenue 3,440 20,718 12,671 11,612 11,612GainsTotal gains – – – – –Total own-source income 3,440 20,718 12,671 11,612 11,612Net cost of (contribution by)

services 13,328 21,188 24,302 23,772 23,957Revenue from Government 13,038 20,142 23,276 22,634 22,819* * * *Surplus (Deficit) attributable to

the Australian Government (290) (1,046) (1,026) (1,138) (1,138)Total comprehensive income (loss)

attributable to the Australian Government (290) (1,046) (1,026) (1,138) (1,138)

Note: Impact of Net Cash Appropriation Arrangements2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. (290) (1,046) (1,026) (1,138) (1,138)

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (290) (1,046) (1,026) (1,138) (1,138)

Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)Estimated Budget Forward Forward Forward

actual estimate estimate estimate estimate2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000ASSETSFinancial assets

Cash and cash equivalents 17,762 1,105 750 895 1,185 Trade and other receivables 1,209 18,460 18,566 18,434 18,588 Other financial assets 1,571 2,124 915 915 2,124

Total financial assets 20,542 21,689 20,231 20,244 21,897 Non-financial assets

Property, plant and equipment 1,209 739 974 1,126 1,153Intangibles 0 470 235 83 56

Total non-financial assets 1,209 1,209 1,209 1,209 1,209 Total assets 21,751 22,898 21,440 21,453 23,106 LIABILITIESPayables

Suppliers 555 1,136 817 703 1,148Other payables 1,439 2,021 817 857 2,030

Total payables 1,994 3,157 1,634 1,560 3,178

ProvisionsEmployee provisions 4,864 4,739 4,794 4,877 4,899Other provisions 286 395 405 409 422

Total provisions 5,150 5,134 5,199 5,286 5,321 Total liabilities 7,144 8,291 6,833 6,846 8,499 Net assets 14,607 14,607 14,607 14,607 14,607 Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued)Estimated Budget Forward Forward Forward

actual estimate estimate estimate estimate2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000EQUITY1

Parent entity interestContributed equity 14,607 14,607 14,607 14,607 14,607

Total parent entity interest 14,607 14,607 14,607 14,607 14,607Total Equity 14,607 14,607 14,607 14,607 14,607

1 'Equity' is the residual interest in assets after deduction of liabilities.


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Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forward from

previous period – – 14,607 14,607Adjusted opening balance – – – 14,607 14,607Comprehensive income

Surplus (deficit) for the period (1,046) (1,046)

Total comprehensive income – – – (1,046) (1,046)Contributions by owners

Departmental Capital Budget (DCBs) 1,046 1,046Sub-total transactions with owners – – – 1,046 1,046

Estimated closing balanceas at 30 June 2015 – – – 14,607 14,607

Closing balance attributable to the Australian Government – – – 14,607 14,607


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Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Appropriations 13,038 20,142 23,276 22,634 22,819Receipts from Government 14,607Sale of goods and rendering of

services 3,440 20,718 12,671 11,612 11,612Other 1,439 582 (1,204) 40 1,173


Employees 7,207 26,963 26,819 26,797 28,626Suppliers 3,852 13,441 9,392 7,480 5,338Other 3,703 17,695 (1,113) (136) 1,350


operating activities 17,762 (16,657) (355) 145 290INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 290 1,046 1,026 1,138 1,138

Total cash used 290 1,046 1,026 1,138 1,138Net cash from (used by)

investing activities (290) (1,046) (1,026) (1,138) (1,138)

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Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

FINANCING ACTIVITIESCash received

Contributed equity 290 1,046 1,026 1,138 1,138Total cash received 290 1,046 1,026 1,138 1,138Net cash from (used by)

financing activities 290 1,046 1,026 1,138 1,138Net increase (decrease)

in cash held 17,762 (16,657) (355) 145 290Cash and cash equivalents at the

beginning of the reporting period – 17,762 1,105 750 895Cash and cash equivalents at the

end of the reporting period 17,762 1,105 750 895 1,185

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Table 3.2.5: Departmental capital budget statementEstimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 290 1,046 1,026 1,138 1,138Total new capital appropriations 290 1,046 1,026 1,138 1,138

Provided for:Purchase of non-financial assets 290 1,046 1,026 1,138 1,138

Total Items 290 1,046 1,026 1,138 1,138PURCHASE OF NON-FINANCIAL

ASSETSTOTAL – – – – –

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 290 1,046 1,026 1,138 1,138Total cash used to

acquire assets 290 1,046 1,026 1,138 1,138Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of asset movements (2014–15)Other property, Computer Total

plant and software andequipment intangibles

$'000 $'000 $'000As at 1 July 2014Gross book value 3,681 2,580 6,261Accumulated depreciation/amortisation

and impairment (2,472) (2,580) (5,052)Opening net book balance 1,209 - 1,209CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation ordinary

annual services1 335 711 1,046Total additions 335 711 1,046

Other movementsDepreciation/amortisation expense (805) (241) (1,046)Total other movements (805) (241) (1,046)As at 30 June 2015Gross book value 4,016 3,291 7,307Accumulated depreciation/amortisation

and impairment (3,277) (2,821) (6,098)Closing net book balance 739 470 1,209

1 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2014–15 for depreciation / amortisation expenses, DCBs or other operational expenses.


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AUSTRALIAN INSTITUTE OFFAMILY STUDIES






209




The Australian Institute of Family Studies (AIFS) is the Australian Government’s key research body in the area of family wellbeing. It was established in 1980 under the Family Law Act 1975 and its role is to conduct research and communicate findings to policy-makers, service providers and the community about factors affecting family wellbeing. AIFS’ work provides an evidence base for developing policy and practice related to the wellbeing of families in Australia by:

• undertaking high-quality impartial research related to the wellbeing of families in Australia

• sharing the information and transferring our knowledge

• valuing and developing our relationships

• managing our organisation.

AIFS undertakes a range of research activities and ensures the quality of its work through:

• rigorous ethical standards and oversight by an ethics committee

• benchmarking against international standards

• subjecting research design, methodology and results to peer review.

Its research work includes projects involving a range of data collection and analytic methods (such as quantitative, qualitative and mixed methods). This includes undertaking longitudinal studies, analysing major national datasets, such as the Australian Bureau of Statistics census; programme evaluation, and undertaking literature reviews and submissions to government inquiries.

As outlined in AIFS Research Directions 2012–2015, the Institute’s research activities will focus on four key areas:

• family change, functioning and wellbeing

• social and economic participation for families

• child and family safety

• services to support families.

• Throughout 2014–15, much of AIFS’ work will again be undertaken on behalf of other agencies seeking information to inform specific policy decisions affecting families, and their communities, in Australia.

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• Communicating research findings will continue to be an integral part of AIFS’ work. Key stakeholders seeking this information include the Australian Government, State, Territory and local governments, providers of services to families and children, researchers and policy-makers and the broader Australian community.

Key activities in 2014–15The Institute’s priorities, guided by AIFS Research Directions 2012–2015 and AIFS Strategic Directions 2012–2015, will include a number of significant activities.

The Australian Gambling Research Centre (AGRC) commenced operation at AIFS in July 2013 as a new measure. The AGRC was established under the then National Gambling Reform Act 2012 to complement the work of a range of research organisations. It draws together the evidence and identifies gaps in existing research and evaluation data. The AGRC will progress a research agenda that is forward thinking and will improve the evidence base into problem gambling, playing a critical role in informing and shaping policy. The AGRC has been established within the Institute to ensure independence, leveraging the expertise of an established research organisation.

Longitudinal studies – particularly Growing up in Australia: the Longitudinal Study of Australian Children (LSAC), Building a New Life in Australia: the Longitudinal Study of Humanitarian Migrants, the Australian Temperament Project, Pathways of Care: the Longitudinal Study of Children and Young People in Out-of-Home Care, Beyond 18: the Longitudinal Study on Leaving Care – will continue to be a focus for AIFS. These studies are the key components of an evidence base to inform policy development and analysis undertaken within AIFS and by other researchers.

Knowledge dissemination, including the work of the Child Family Community Australia information exchange will continue to be integral to the Institute’s work. Knowledge translation and exchange activities are an important vehicle for disseminating sector-specific research and data and to foster engagement between researchers, policy-makers, and child and family welfare practitioners.

The AIFS Seminar Series (now also delivered through webinar technology), the biennial AIFS Conference in 2014 and events such as the Longitudinal Study of Australian Children–the Longitudinal Study of Indigenous Children (LSAC-LSIC) conference provide platforms for world-class speakers to share their knowledge on matters affecting family wellbeing. These activities reach a broad audience in Australia and beyond.

This year, AIFS will continue to build relationships with organisations that also have a stake in research, policy and practice that affect family wellbeing. These relationships help to efficiently build research capability and communications reach for the benefit of the Australian Government and the Australian community.

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Australian Institute of Family Studies Budget Statements

Finally, the Institute will maintain high standards in relation to its research and corporate governance through adherence to the standards set by the National Statement on Ethical Conduct in Human Research, through use of peer reviewing of projects and publications, and involvement of its Advisory Council, the AGRC Expert Advisory Group and the Risk Assessment and Audit Committee.

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Table 1.1: Australian Institute of Family Studies resource statement – budget estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 3,824 – 3,824 4,145Departmental appropriation3 – 4,832 4,832 4,875s31 Relevant agency receipts4 – 9,566 9,566 9,727Total 3,824 14,398 18,222 18,747

Total ordinary annual services A 3,824 14,398 18,222 18,747

Other services5

Departmental non-operatingEquity injections – – – 196Total – – – 196

Total other services B – – – 196

Total available annual appropriations 3,824 14,398 18,222 18,943

Special appropriationsTotal special appropriations C – – – –

Total appropriations excluding Special Accounts 3,824 14,398 18,222 18,943

Special AccountsTotal Special Account D – – – – – –

Total resourcingA+B+C+D 3,824 14,398 18,222 18,943Total net resourcing for AIFS 3,824 14,398 18,222 18,943Note: All figures are GST exclusive.1 Appropriation Bill (No.1) 2014–152 Estimated adjusted balance carried forward from previous year3 Includes an amount of $0.2m in 2014–15 for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant Agency receipts – estimate5 Appropriation Bill (No.2) 2014–15

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1.3 BUDGET MEASURES

Budget measures relating to AIFS are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Australian Institute of Family Studies 2014–15 budget measuresPart 1: Measures announced since the 2013–14 MYEFO

2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend – a further temporary increase of 0.25 per cent1 1.1

Departmental expenses – (12) (24) (35) (35)Total – (12) (24) (35) (35)Total expense measures

Departmental – (12) (24) (35) (35)Total – (12) (24) (35) (35)Capital measures

Efficiency Dividend – a further temporary increase of 0.25 per cent1 1.1

Departmental capital – – (1) (1) (1)Total – – (1) (1) (1)Total capital measures

Departmental – – (1) (1) (1)Total – – (1) (1) (1)Prepared on a Government Finance Statistics (fiscal) basis

1 The measure Efficiency Dividend – a further temporary increase of 0.25 per cent is a Cross Portfolio measure. The full description and package appear in Budget Paper No.2 under Cross Portfolio.

Programme

Part 2: MYEFO measures not previously reported in a portfolio statement2013–14 2014–15 2015–16 2016–17 2017–18

$'000 $'000 $'000 $'000 $'000MeasuresPublic Services efficiencies 1.1

Departmental expenses – – – (10) (30)Total – – – (10) (30)Total measures

Departmental – – – (10) (30)Total – – – (10) (30)Prepared on a Government Finance Statistics (fiscal) basis

Programme

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Outcome 1Increased understanding of factors affecting how families function by conducting research and communicating findings to policy-makers, service providers and the broader community.

Outcome 1 strategyThe Institute continues to have a single planned outcome. AIFS has two strategies to meet this outcome:

• AIFS undertakes high-quality, impartial research that is relevant to good policy and practice

• AIFS disseminates its findings to policy makers, community service providers, the research community and the Australian community.

In 2014–15, AIFS' resources will be directed towards:

• continuing to develop the evidence base to inform policy development and good practice, including:

– major longitudinal studies

– short and medium term research projects, submissions and reports

– programme evaluations

– literature reviews.

• continuing to communicate research findings to four targeted groups:

– policy makers: to inform the development and review of policies and programmes affecting families

– service providers: to improve professional practice that supports families

– researchers: to encourage further research on issues affecting the wellbeing of Australian families

– the Australian community: to raise understanding and knowledge of family functioning.

A significant element of this strategy continues to be the delivery of the Institute's national information exchange services, which include:

• the Child Family Community Australia information exchange

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• strategies to enhance engagement around AIFS’ research and the evidence base in areas that relate to AIFS’ strategic directions.

The major external factors that may affect the capacity of the Institute to achieve its outcome are its ability to absorb the potential impact of the efficiency dividend and the potential reduction in the capacity of other government agencies to commission research from the Institute. However, AIFS will maintain its responsiveness to changing policy priorities within budget constraints.


Table 2.1: Budgeted expenses for Outcome 1Outcome 1: Increased understanding of factors affecting how families function by conducting research and communicating findings to policy makers, service providers, and the broader community.

2013–14 2014–15


expenses$'000 $'000

Programme 1.1: Australian Institute of Family StudiesDepartmental expenses

Departmental appropriation 1 14,392 14,184

Expenses not requiring appropriation in the Budget year 2 306 363


Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 14,392 14,184Expenses not requiring appropriation in the Budget year 2 306 363


Average Staffing Level (number) 81 831 Departmental Appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s31)'.2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Makegood Expense, and Audit Fees.

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Programme 1.1: Australian Institute of Family Studies


To increase understanding of factors affecting how Australian families function by conducting research and communicating findings to policy-makers, service providers and the broader community, AIFS will manage its resources to:

• undertake high-quality, impartial research relating to the wellbeing of families in Australia

• share the information and transfer the knowledge to identified target audiences• value and develop relationships with organisations that have a stake in research,

policy and practice influencing the wellbeing of families• manage the organisation to build organisational capability, culture, and a

workforce that fosters the delivery of high-quality research on family wellbeing; and manage resources to the standards expected of an Australian Government agency.

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Research outputs, including research projects involving a range of data collection and analytical methods (including qualitative, quantitative and mixed methods), as well as undertaking longitudinal studies and analyses of major datasets such as the ABS census, and completing literature reviews and submissions to government inquiries.

Communication activities, including:

• information exchange and clearinghouse activities• publications such as Family Matters journal, research reports and papers, articles

in journals, and books published elsewhere• conferences, seminars, webinars, forums, etc. hosted by AIFS• websites and electronic publishing• presentations by AIFS staff at conferences and forums related to the wellbeing of

families in Australia• bibliographic and other library services.

Australian Institute of Family Studies deliverables targets2013–14

Estimated actual

2014–15 Budget




Number of research outputs and publications 100 100 100 100 100

Number of conferences, seminars, webinars, forums, etc.1 15 18 18 18 18

Number of presentations given by AIFS 80 100 80 100 80

Number of bibliographic records generated 2,000 2,000 2,000 2,000 2,0001 The deliverable target related to the numbers of conferences, seminars, webinars, forums etc. has been increased to reflect the extended availability of seminars through webinar technology.

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Research Strategy• number of commissioning bodies• number of research projects• number of longitudinal studies

Communication Strategy• number of copies of publications distributed and downloaded• total attendance at conferences, seminars, webinars, forums, etc. hosted by AIFS• number of media mentions – online, print, television, radio

Workforce Objective• qualifications and professional expertise of AIFS’ employees

Australian Institute of Family Studies key performance indicator targets2013–14

Estimated actual

2014–15 Budget




Number of commissioning bodies 20 20 20 20 20

Number of research projects1 42 45 45 45 45

Number of longitudinal studies 6 6 5 5 5

Number of publications distributed and downloaded (in millions)2 2.0 2.5 3.0 3.0 3.0

Total attendance at AIFS conferences, seminars, webinars, forums, etc.3 1,200 2,500 2,000 2,500 2,000

Number of media mentions4 2,300 3,300 3,000 3,500 3,000

Percentage of research personnel with postgraduate qualifications5 55% 60% 60% 60% 60%1 This key performance indicator has been increased to reflect the growth in research projects that the Australian Institute of Family Studies is conducting.2 This key performance indicator has been increased due to the growth in the volume of publications downloaded from the Australian Institute of Family Studies website.3 This key performance indicator has been increased to reflect the growth in audience participation related to the availability and take-up of webinar technology.4This key performance indicator has been increased due to the growth in the number of media mentions of the work of the Australian Institute of Family Studies.5 This key performance indicator has increased due to the growth in our research projects and the need for highly qualified staff to conduct the research.

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3.1.1 Movement of administered funds between yearsAIFS does not receive administered funds.

3.1.2 Special accountsAIFS does not have a special account.

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous Statement is not applicable because AIFS has no Indigenous specific expenses.



Income and expenses

AIFS is budgeting for a break-even position in 2014–15 and the forward years after adjusting for depreciation and amortisation expenses.

Total own-source revenue for 2014–15 is expected to be $9.6 million and revenue from government is expected to be $4.6 million.

Total expenses for 2014–15 are expected to be $14.6 million, compared to $14.7 million in 2013–14.

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Balance sheet

AIFS has a budgeted net asset position of $1.4 million in 2014–15.

Total assets for 2014–15 are estimated to be $6.2 million, comprising $4.8 million of financial assets and $1.4 million in non-financial assets.

Total liabilities for 2014–15 are estimated to be $4.9 million, with the primary liabilities being accrued employee entitlements, which total $2.1 million, suppliers payables $0.3 million and other payables of $2.5 million ($2.1 million unearned income, $0.3 million property lease incentive and other $0.1 million).

222





2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 9,524 9,792 9,067 9,012 9,190Suppliers 4,896 4,420 4,034 4,037 3,973Depreciation and amortisation 278 335 339 310 323Total expenses 14,698 14,547 13,440 13,359 13,486LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 9,516 9,355 8,280 8,256 8,345Other 183 183 183 183 183Total own-source revenue 9,699 9,538 8,463 8,439 8,528GainsOther 28 28 28 28 28Total gains 28 28 28 28 28Total own-source income 9,727 9,566 8,491 8,467 8,556Net cost of (contribution by)

services 4,971 4,981 4,949 4,892 4,930Revenue from Government 4,693 4,646 4,610 4,582 4,607* * * *Deficit attributable to

the Australian Government (278) (335) (339) (310) (323)

Total comprehensive loss attributable to the Australian Government (278) (335) (339) (310) (323)

223


Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

Total Comprehensive Income (loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. – – – – –

less depreciation/amortisation expensespreviously funded through revenueappropriations1 278 335 339 310 323

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (278) (335) (339) (310) (323)

Prepared on Australian Accounting Standards basis.1 From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

224


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and cash equivalents 285 262 239 274 288Trade and other receivables 4,325 4,287 3,901 3,804 3,844Other financial assets 291 286 254 253 256

Total financial assets 4,901 4,835 4,394 4,331 4,388 Non-financial assets

Property, plant and equipment 1,286 1,164 1,026 896 750Intangibles 84 57 41 45 61Other non-financial assets 245 221 202 203 200

Total non-financial assets 1,615 1,442 1,269 1,144 1,011 Total assets 6,516 6,277 5,663 5,475 5,399 LIABILITIESPayables

Suppliers 293 266 243 244 240Other payables 2,595 2,446 2,270 2,150 2,151

Total payables 2,888 2,712 2,513 2,394 2,391

ProvisionsEmployee provisions 2,082 2,168 1,907 1,964 2,021

Total provisions 2,082 2,168 1,907 1,964 2,021 Total liabilities 4,970 4,880 4,420 4,358 4,412 Net assets 1,546 1,397 1,243 1,117 987 EQUITY1

Parent entity interestContributed equity 2,344 2,530 2,715 2,899 3,092Reserves 84 84 84 84 84Retained accumulated deficit (882) (1,217) (1,556) (1,866) (2,189)

Total parent entity interest 1,546 1,397 1,243 1,117 987

Total Equity 1,546 1,397 1,243 1,117 987Prepared on Australian Accounting Standards basis.1 Note: 'equity' is the residual interest in assets after deduction of liabilities.

225




reserve capital$'000 $'000 $'000 $'000 $'000


previous period (882) 84 2,344 1,546Adjusted opening balance (882) 84 – 2,344 1,546Comprehensive income

Surplus (deficit) for the period (335) – – – (335)

Total comprehensive income (335) – – – (335)of which:

Attributable to the Australian Government (335) – – – (335)

Transactions with ownersContributions by owners

Departmental Capital Budget (DCBs) – – – 186 186Sub-total transactions with owners – – – 186 186Estimated closing balance

as at 30 June 2015 (1,217) 84 – 2,530 1,397Closing balance attributable to the

Australian Government (1,217) 84 – 2,530 1,397Prepared on Australian Accounting Standards basis.

226




2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Appropriations 4,349 4,691 5,021 4,679 4,565Sale of goods and rendering of services 9,516 9,355 8,280 8,256 8,345Other 211 211 211 211 211


Employees 9,418 9,706 9,328 8,955 9,133Suppliers 5,058 4,574 4,207 4,156 3,974


operating activities (400) (23) (23) 35 14INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 378 186 185 184 193

Total cash used 378 186 185 184 193Net cash from (used by)

investing activities (378) (186) (185) (184) (193)FINANCING ACTIVITIESCash received

Contributed equity 378 186 185 184 193Total cash received 378 186 185 184 193Net cash from (used by)

financing activities 378 186 185 184 193Net increase (decrease)

in cash held (400) (23) (23) 35 14Cash and cash equivalents at the

beginning of the reporting period 685 285 262 239 274Cash and cash equivalents at the

end of the reporting period 285 262 239 274 288

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Table 3.2.5: Departmental capital budget statement


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 182 186 185 184 193Equity injections - Bill 2 196 – – – –

Total new capital appropriations 378 186 185 184 193

Provided for:Purchase of non-financial assets 378 186 185 184 193

Total Items 378 186 185 184 193PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 1 196 – – – –Funded by capital appropriation - DCB 2 182 186 185 184 193

TOTAL 378 186 185 184 193RECONCILIATION OF CASH

USED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 378 186 185 184 193Total cash used to

acquire assets 378 186 185 184 193

Prepared on Australian Accounting Standards basis.1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations2 Does not include annual finance lease costs. Include purchase from current and previous

years' Departmental Capital Budgets (DCBs).

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Table 3.2.6: Statement of asset movements (2014–15)Other property, Computer Total

plant and software andequipment intangibles

$'000 $'000 $'000As at 1 July 2014Gross book value 1,538 240 1,778Accumulated depreciation/amortisation

and impairment (252) (156) (408)Opening net book balance 1,286 84 1,370CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation ordinary

annual services 1 174 12 186Total additions 174 12 186Other movementsDepreciation/amortisation expense (296) (39) (335)Total other movements (296) (39) (335)As at 30 June 2015Gross book value 1,712 252 1,964Accumulated depreciation/amortisation

and impairment (548) (195) (743)Closing net book balance 1,164 57 1,221Prepared on Australian Accounting Standards basis.1 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2014–15 for depreciation / amortisation expenses, DCBs or other operational expenses.

229





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The National Disability Insurance Agency (the Agency) was established on 29 March 2013 by the National Disability Insurance Scheme Act 2013 (the Act) and became financially independent on 1 July 2013. The Agency is comprised of a Board, a CEO and the staff of the Agency. The Agency is supported by an Independent Advisory Council which is also established by the Act.

The National Disability Insurance Scheme (NDIS) operates under the Act and, in conjunction with other legislation, gives effect to certain obligations under the Convention on the Rights of Persons with Disability. In so doing, the NDIS supports people with disability to participate in, and contribute to, social and economic life to the full extent of their ability. It will provide participants with reasonable and necessary supports, including early intervention supports, to help them to achieve this. The NDIS will enable people with disability to exercise choice and control in pursuit of their goals and the planning and delivery of their support will acknowledge and respect the central role of families and carers. It will give people with disability, and their families and carers, certainty that people with disability will receive the care and support they need over their lifetime.

The Australian Government is also working with State and Territory governments to evaluate the initial implementation of the trial sites and ensure successful roll-out towards full scheme.

The following trial sites successfully commenced on 1 July 2013:

• Hunter region in New South Wales

• Barwon area in Victoria (including Geelong)

• South Australia (children aged 0 to 14 years)

• Tasmania (young adults aged 15 to 24 years).

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The National Disability Insurance Scheme (NDIS) is a once in a generation economic and social reform which has been agreed to by all governments and will benefit all Australians.

Under the legislation, the key functions of the Agency are to:

• deliver the NDIS

• manage, and to advise and report on, the financial sustainability of the NDIS

• develop and enhance the disability sector

• build community awareness of disabilities and the social contributors to disabilities

• collect, analyse and exchange data about disabilities and the supports for people with disability

• undertake research relating to disabilities, the supports for people with disability and the social contributors to disabilities.

The Agency’s strategic objective, mission and goals are set out in the 2013–2016 Strategic Plan.

Key priorities for 2014–15• Successful commencement of the following sites on 1 July 2014:

– Perth Hills in Western Australia

– Australian Capital Territory

– Barkley region in Northern Territory.

• Seamless transition of National Office from Canberra to Geelong, with the majority of activities commencing in Geelong prior to 1 July 2014.

• Working with State and Territory governments towards full scheme roll out.

• Engaging with participants, their families and carers, the disability sector and the Australian Government, State and Territory governments to learn from experience and improve the operations of the scheme and to inform the transition to full scheme.

• Building a strong culture within the Agency as an organisation that values learning, collaboration and professionalism in accordance with the values in the Strategic Plan.

Assurance

The Agency is committed to certainty of funding for high quality, equitable and effective supports that respect the diversity of all people with disability.

236

National Disability Insurance Agency Budget Statements

Empowerment

The Agency works locally and in partnership with participants, their families and carers to enable them and ensure they have choice, control and a voice.

Responsibility

The Agency shares a mutual responsibility with participants, the community and providers in providing high quality supports which maximise potential, independence, integration and inclusion in the community.

Learning

The Agency sees every task and interaction as an opportunity to learn and continually improve performance. The Agency is reflective, asks for and acts on feedback, and constantly evaluates its performance.

Integrity

The Agency is fair and transparent, does as it says and says what it does, so as to build trust and respect among people with disability, their families and carers, employees, providers and the community.

237




Table 1.1: National Disability Insurance Agency resource statement – budget estimates for 2014–15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14$'000 $'000 $'000 $'000

Opening balance/Reserves at bank 8,189 – 8,189 –

REVENUE FROM GOVERNMENTOrdinary annual services¹

Outcome 1 – 329,762 329,762 8,271

Total ordinary annual services – 329,762 329,762 8,271

Other services²Non-operating – 23,349 23,349 30,014

Total other services – 23,349 23,349 30,014

Total annual appropriations – 353,111 353,111 38,285

Payments from related entities3

Amounts from the portfolio department – – – 191,311 Total – – – 191,311

FUNDS FROM OTHER SOURCESContributions from State and Territory governments4 – 320,020 320,020 105,645 Resources received free of charge5 – 23,595 23,595 8,856 Total – 343,615 343,615 114,501

Total net resourcing for agency 8,189 696,726 704,915 344,097 All figures are GST exclusive.

1 Appropriation Bill (No.1) 2014–15.2 Appropriation Bill (No.2) 2014–15.

The Agency does not receive appropriations directly as it is a CAC Act body. Appropriations are made to the Department of Social Services, as responsible FMA Agency, which are then paid to the Agency and are considered ‘departmental’ for all purposes.

3 Funding provided by the Department of Social Services under a funding agreement for the initial year of the Agency’s operations and opening balance transfers.4 Contributions from state and territory governments as provided for in the individual bilateral agreements. This figure includes in-kind contributions. 5 In-kind contributions provided through existing agreements of other Commonwealth entities.

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1.3 BUDGET MEASURES

Budget measures relating to NDIA are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: National Disability Insurance Agency 2014–15 budget measuresPart 1: Measures announced since the 2013–14 MYEFO

2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend – a further temporary increase of 0.25 per cent1 1.3

Departmental expenses – (409) (1,049) (5,337) (10,306) Total – (409) (1,049) (5,337) (10,306) Total expense measures

Departmental – (409) (1,049) (5,337) (10,306) Total – (409) (1,049) (5,337) (10,306)

Prepared on a Government Finance Statistics (fiscal) basis

1 The measure Efficiency Dividend – a further temporary increase of 0.25 per cent is a Cross Portfolio measure. The full description and package appear in Budget Paper No.2 under Cross Portfolio.

Programme

239




Outcome 1To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

Outcome 1 strategyThe Agency will measure its performance against this outcome under three programmes:

• Reasonable and necessary care and support for participants

• Sector development and support

• Agency costs.

This Outcome is linked to the Department of Social Services programme 5.2: National Disability Insurance Scheme.

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Table 2.1: Budgeted expenses for Outcome 12013–14 2014–15


expenses

$'000 $'000

Programme 1.1: Reasonable and necessary care and support for participantsRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 26 122,140Payment from portfolio department 37,876 –

Revenues from other sources1 110,501 336,115

Total for Programme 1.1 148,403 458,255Programme 1.2: Sector Development and SupportRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) – 44,961Payment from portfolio department 39,773 –

Total for Programme 1.2 39,773 44,961Programme 1.3: Agency CostsRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 8,245 162,661Payment from portfolio department 112,434 –


Total for Programme 1.3 124,679 170,161Outcome 1 Totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 8,271 329,762Payment from portfolio department 190,083 –



Average Staffing Level (number) 489 7981 Includes cash and in-kind contributions from State and Territory governments and in-kind contributions provided through other Commonwealth entities.

Outcome 1: To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and support to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

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Programme 1.1: Reasonable and necessary care and support for participants


To deliver the National Disability Insurance Scheme to ensure people with disability are in control and have choices to appropriately support their independence and social and economic participation.

Linked to: Department of Social Services programme: 5.2 National Disability Insurance Scheme.


Reasonable and necessary care and support for participants funding increases over the forward estimates as the Agency progresses towards implementation of a National scheme. States and Territories will roll into the scheme progressively over the forward estimates with the current sites expanding applicable cohorts. Participant numbers are expected to increase from 9,500 in 2013–14 to 335,300 in 2017–18.

Table 2.1.1: Expenses for Reasonable and necessary care and support for participants

2013–14 2014–15 2015–16 2016–17 2017–18Estimated Budget Forward Forward Forward

actual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Annual departmental expenses1:Reasonable and necessary support for participants 37,902 122,140 254,540 1,015,463 2,948,557

Expenses not requiring appropriation inthe Budget year 2 110,501 336,115 596,536 2,432,333 6,800,900

Total Programme expenses 148,403 458,255 851,076 3,447,796 9,749,4571 Programme support costs are reflected in Programme 1.3.2 Expenses not requiring appropriation in the Budget year is made up of cash and in-kind contributions from state and territory governments and in-kind contributions made through other Commonwealth entities.

242



• Eligible people with disability in launch sites are supported to transition into the NDIS and are provided with reasonable and necessary supports

• Implementation of agreements with States and Territories for detailed transition to the NDIS, and with all States and Territories for full scheme implementation

• Monitoring of and refinements to programme delivery to reflect experience with trial sites

Reasonable and necessary care and support for participants deliverables targets

2013–14 Estimated

actual

2014–15 Budget




Number of people provided with support1 9,500 19,600 31,500 151,400 335,300

Number of regional offices established for launch and indicative full scheme offices2 18 22 44 91 1331 These are Commonwealth estimates of potential path of roll-out to full scheme and have not been agreed with States and Territories. They also reflect preconditions for roll-out including State and Territory agreement and funding, agency capacity and gradual transition to support people with disability to move across to the National Disability Insurance Scheme.2 Includes planned trial site offices and estimated offices for full-scheme transition; but the exact number of full scheme offices will be based on operational need.


The following key performance indicators are derived from the Integrated NDIS Performance Reporting Framework Annex to the Intergovernmental Agreement on National Disability Insurance Scheme Launch. The results of the 2013–14 financial year are to be used as the basis for the targets into the forward estimates with actuals to be reported in the Annual Report and new targets to presented in the 2014–15 Portfolio Additional Estimates Statements.

• Participants in the NDIS achieve their goals for independence, social and economic participation

• Increased mix of support options and innovative approaches to provision of support in response to assessed need

• Participants in the NDIS are able and are supported to exercise choice

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Programme 1.2: Sector development and support


To drive change in the disability sector to support the implementation of the NDIS and ensure that people with disability are able to be supported to achieve choice and control outcomes.



Sector Development and Support funding increases over the forward estimates as the Agency progresses towards implementation of a National scheme. New States and Territories roll into the scheme progressively over the forward estimates with the current sites expanding applicable cohorts. Sector Development activities will be tailored to meet the needs of the local community.

Table 2.1.2: Expenses for Sector development and support2013–14 2014–15 2015–16 2016–17 2017–18

Estimated Budget Forward Forward Forwardactual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Annual departmental expenses1:Sector Development and Support 39,773 44,961 36,751 55,814 65,749

Total Programme expenses 39,773 44,961 36,751 55,814 65,7491 Programme support costs are reflected in Programme 1.3.

244



• People with disability, the disability services sector and its workforce are assisted with the transition to the NDIS, including through:– Building community capacity and engagement

– Increasing individual support capacity and development of new forms of support to meet the needs of people with disability

– Building disability sector capacity and service provider readiness to manage the transition

– Assistance with expansion and training of the workforce

– Improving access to aids and equipment

– Building the evidence base


The following key performance indicators are derived from the Integrated NDIS Performance Reporting Framework Annex to the Intergovernmental Agreement on National Disability Insurance Scheme Launch. The results of the 2013–14 financial year are to be used as the basis for the targets into the forward estimates with actuals to be reported in the Annual Report and new targets presented in the 2014–15 Portfolio Additional Estimates Statements.

• Community awareness of people with disability• Effectiveness of LAC community capacity building activities• Increased mix of support options and innovative approaches to provision of

support• Increased participation of providers in the disability support market• An evidence base is developed to inform an insurance approach to disability

support

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Programme 1.3: Agency costs


To ensure efficient and effective use of Agency operating resources to implement the Outcomes of the Agency.



Agency costs increase over the forward estimates to support the implementation of a National scheme. New States and Territories roll into the scheme progressively over the forward estimates with the current sites expanding applicable cohorts. Additional resources are required to successfully implement the roll out of the NDIS to full scheme.

Table 2.1.3: Expenses for Agency costs2013–14 2014–15 2015–16 2016–17 2017–18

Estimated Budget Forward Forward Forwardactual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Annual departmental expenses1:Programme support 120,679 162,661 203,399 692,717 1,345,521

Expenses not requiring appropriation inthe Budget year 2 4,000 7,500 13,500 – –Total Programme expenses 124,679 170,161 216,899 692,717 1,345,5211 Programme support costs reflect operational and programme support costs for all Outcome 1 programmes.2 Expenses not requiring appropriation in the Budget year is made up of cash contributions from the Victorian Government.

246



• The NDIS is financially sustainable and governed using insurance principles


The following key performance indicator is derived from the Integrated NDIS Performance Reporting Framework Annex to the Intergovernmental Agreement on National Disability Insurance Scheme Launch. The results of the 2013–14 financial year are to be used as the basis for the targets into the forward estimates with actuals to be reported in the Annual Report and new targets presented in the 2014–15 Portfolio Additional Estimates Statements.

• Effective estimation and management of short-term and long-term costs

247




3.1.1 Movement of funds between yearsThe Agency does not have any movements of funds between years.

3.1.2 Special accountsThe Agency is not responsible for any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe 2014–15 Australian Government Indigenous Statement is not applicable because the Agency has no Indigenous specific expenses.


3.2.1 Analysis of budgeted financial statementsThe 2012–13 financial information for the set-up of the Agency is reported in the former Department of Families, Housing, Community Services and Indigenous Affairs’ 2012–13 financial statements.

Opening balances for the Agency, including assets and liabilities, were transferred upon financial separation on 1 July 2013. The net impact has been reported under equity in the following tables.

The revenue, expenditure and assets increase significantly over the forward estimates as the Agency progresses to full scheme roll-out.

The financial information is based on estimated numbers of participants in the scheme, transitioning in accordance with intergovernmental agreements, and additional funds provided by the Australian Government to support achievement of overall scheme objectives.

248





2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 55,776 97,076 124,768 493,005 982,973Suppliers 101,715 105,321 108,803 221,936 384,163Grants 148,403 458,255 851,076 3,447,796 9,749,457Depreciation and amortisation 6,961 12,725 20,079 33,590 44,134Total expenses 312,855 673,377 1,104,726 4,196,327 11,160,727LESS: OWN-SOURCE INCOMEOwn-source revenuePayments from Portfolio Agency 190,083 – – – –Other1 66,222 182,932 422,855 2,414,663 6,800,900Total own-source revenue 256,305 182,932 422,855 2,414,663 6,800,900GainsOther2 48,279 160,683 187,181 17,670 –Total gains 48,279 160,683 187,181 17,670 –Total own-source income 304,584 343,615 610,036 2,432,333 6,800,900Net cost of (contribution by)

services 8,271 329,762 494,690 1,763,994 4,359,827Revenue from Government 8,271 329,762 494,690 1,763,994 4,359,827Surplus (Deficit) attributable to

the Australian Government – – – – –

Total comprehensive income (loss) attributable to the Australian Government – – – – –

1 Includes contributions from state and territory governments.2 Includes cash and in-kind contributions from State and Territory governments and in-kindcontributions provided through other Commonwealth entities. Out-year in-kind contributions are stillto be confirmed.

Prepared on an Australia Accounting Standards Basis.

249


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)Estimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000ASSETSFinancial assets

Cash and cash equivalents 8,189 20,914 40,993 74,583 118,717Total financial assets 8,189 20,914 40,993 74,583 118,717Non-financial assets

Land and buildings 27,838 31,228 71,629 160,931 230,252Property, plant and equipment 4,001 11,235 15,352 19,579 11,932Other non-financial assets 42 42 42 42 42

Total non-financial assets 31,881 42,505 87,023 180,552 242,226

Total assets 40,070 63,419 128,016 255,135 360,943LIABILITIESPayables

Suppliers 119 119 119 119 119Total payables 119 119 119 119 119Provisions

Employee provisions 1,113 1,113 1,113 1,113 1,113Other provisions 251 251 251 251 251

Total provisions 1,364 1,364 1,364 1,364 1,364Total liabilities 1,483 1,483 1,483 1,483 1,483Net assets 38,587 61,936 126,533 253,652 359,460EQUITYParent entity interest

Contributed equity 38,587 61,936 126,533 253,652 359,460Reserves – – – – –Retained surplus

(accumulated deficit) – – – – –Total parent entity interest 38,587 61,936 126,533 253,652 359,460Total Equity 38,587 61,936 126,533 253,652 359,460Prepared on an Australia Accounting Standards Basis.

250




reserve capital$'000 $'000 $'000 $'000 $'000


previous period – – – 38,587 38,587Adjusted opening balance – – – 38,587 38,587Comprehensive income

Surplus (deficit) for the period – – – – –

Total comprehensive income – – – – –Transactions with owners

Distributions to ownersContributions by owners

Equity Injection - Appropriation – – – 23,349 23,349Sub-total transactions with owners – – – 23,349 23,349Estimated closing balance

as at 30 June 2015 – – – 61,936 61,936

Closing balance attributable to the Australian Government – – – 61,936 61,936

Prepared on an Australia Accounting Standards Basis.

251




2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIES1

Cash receivedAppropriations 8,271 329,762 494,690 1,763,994 4,359,827Contribution from states and territories 66,222 182,932 422,855 2,414,663 6,800,900Payments from portfolio department 191,311 – – – –

Total cash received 265,804 512,694 917,545 4,178,657 11,160,727Cash used

Employees 55,776 97,076 124,768 493,005 982,973Suppliers2 101,715 105,321 108,803 221,936 384,163

Grants3 100,124 297,572 663,895 3,430,126 9,749,457Total cash used 257,615 499,969 897,466 4,145,067 11,116,593Net cash from (used by)

operating activities 8,189 12,725 20,079 33,590 44,134INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 30,014 23,349 64,597 127,119 105,808


investing activities (30,014) (23,349) (64,597) (127,119) (105,808)FINANCING ACTIVITIESCash received

Contributed equity 30,014 23,349 64,597 127,119 105,808Total cash received 30,014 23,349 64,597 127,119 105,808Net cash from (used by)

financing activities 30,014 23,349 64,597 127,119 105,808Net increase (decrease)

in cash held 8,189 12,725 20,079 33,590 44,134Cash and cash equivalents at the

beginning of the reporting period – 8,189 20,914 40,993 74,583Cash and cash equivalents at the

end of the reporting period 8,189 20,914 40,993 74,583 118,717

1 Excludes all in-kind contributions.Prepared on an Australia Accounting Standards Basis.

3 Includes payments for packages of support.

2 Includes Sector Development and Support funding.

252


Table 3.2.5: Departmental capital budget statement Estimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000NEW CAPITAL APPROPRIATIONS

Equity injections - Bill 2 30,014 23,349 64,597 127,119 105,808Total new capital appropriations 30,014 23,349 64,597 127,119 105,808

Provided for:Purchase of non-financial assets 30,014 23,349 64,597 127,119 105,808

Total Items 30,014 23,349 64,597 127,119 105,808PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 30,014 23,349 64,597 127,119 105,808Funded by restructure 8,786 – – – –

TOTAL 38,800 23,349 64,597 127,119 105,808

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 38,800 23,349 64,597 127,119 105,808less additions by finance leaseless s32 / restructuring (8,786) – – – –

Total cash used toacquire assets 30,014 23,349 64,597 127,119 105,808

253


Table 3.2.6: Statement of asset movements (2014–15)Buildings Other property, Total

plant andequipment

$'000 $'000 $'000As at 1 July 2014Gross book value 31,236 7,564 38,800Accumulated depreciation/amortisation

and impairment (3,398) (3,563) (6,961)Opening net book balance 27,838 4,001 31,839CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity 1 8,887 14,462 23,349Total additions 8,887 14,462 23,349Other movementsDepreciation/amortisation expense (5,497) (7,228) (12,725)Total other movements (5,497) (7,228) (12,725)As at 30 June 2015Gross book value 40,123 22,026 62,149Accumulated depreciation/amortisation

and impairment (8,895) (10,791) (19,686)Closing net book balance 31,228 11,235 42,463Prepared on an Australia Accounting Standards Basis.1 'Appropriation equity' refers to equity injections provided through Appropriation Bill (No.2) 2014–15.

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Notes to the financial statementsThe budgeted statements of income and expenditure, assets and liabilities and cash flows have been included for the financial years 2013–14 to 2017–18. These statements are prepared in accordance with the requirements of the Australian Government’s financial budget and reporting framework.

Amounts in the statements are rounded to the nearest thousand dollars.

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GLOSSARY

accrual accounting System of accounting in which items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

additional estimates Where amounts appropriated at budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

administered funds Usually, the funds or expenses an agency manages on behalf of the Australian Government.

administered items Appropriation that consists of funding managed on behalf of the Australian Government. This funding is not at the discretion of the agency, and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered programme. It may be a measure but will not constitute a programme in its own right.

annual appropriation Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

Appropriation Bills (No. 3 and No. 4)

If an amount provided in Appropriation Acts (No. 1 or No. 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or No. 4). Once these Bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (No. 3 and No. 4). However, they are also commonly referred to as the Additional Estimates Bills.

assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

average staffing level (ASL) The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

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Commonwealth Authorities and Companies Act 1997

Sets out the financial management, accountability and audit obligations on Commonwealth statutory authorities and companies in which the Commonwealth has at least a direct controlling interest.

Consolidated Revenue Fund

The principal operating fund from which money is drawn to pay for the activities of the Australian Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government form one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

cross-portfolio budget measure

A budget measure that affects programmes administered in a number of portfolios.

departmental items Resources (assets, liabilities, revenues and expenses) that agency chief executive officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental programme.

depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.

equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

estimates An agency’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each programme in the Budget, in consultation with the Department of Finance. (See also forward estimates and additional estimates.)

expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

Financial Management and Accountability Act 1997

The principal legislation governing the proper use and management of public money and public property, and other Commonwealth resources. FMA Regulations and FMA Orders are made pursuant to the Act.

forward estimates The financial statement estimate for the three out years after the budget year.

258

Glossary

grants Non-reciprocal transfers of economic resources, in which the payer agency does not receive approximately equal value in return.

key performanceindicators

Qualitative and quantitative measures of a programme that provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.

measure A new policy or savings decision of the Australian Government with financial impacts on the its underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.

Mid-Year Economic and Fiscal Outlook (MYEFO)

Provides an update of the Australian Government’s budget estimates by examining expenses and revenues year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow assessment of the Australian Government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

outcome The intended result, consequence or impact of government actions on the Australian community.

outcome statement Articulates the intended results, activities and target group of an Australian Government agency. An outcome statement serves three main purposes within the financial framework:to explain and control the purposes for which annual appropriations are approved by the Parliament for use by agencies

to provide a basis for annual budgeting, including (financial) reporting against the use of appropriated funds

to measure and assess agency and programme (non-financial) performance in contributing to government policy objectives.

performance information Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them.

259

Glossary

portfolio A minister’s area of responsibility as a member of Cabinet. A portfolio consists of one or more Departments of State (portfolio departments) and agencies with similar general objectives and outcomes.

programme An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

receipts The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and government business enterprise dividends received.

revenue Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.

special accounts Balances existing within the CRF that are supported by standing appropriations (FMA Act sections 20 and 21). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (FMA Act, section 20) or through an Act of Parliament (referred to in section 21 of the FMA Act).

special appropriation (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.

Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.

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ABBREVIATIONS

ACAP Aged Care Assessment Programme

ACATs Aged Care Assessment Teams

AGD Attorney-General’s Department

AGIE Australian Government Indigenous Expenditure

AGRC Australian Gambling Research Centre

AIFS Australian Institute of Family Studies

CAC Act Commonwealth Authorities and Companies Act 1997

CDFI Community Development Financial Institution

CFC Commonwealth Financial Counselling

CRF Consolidated Revenue Fund

DCB Departmental Capital Budget

DES Disability Employment Services

DoH Department of Health

DTC Day Therapy Centre

DHS Department of Human Services

DSP Disability Support Pension

DSS Department of Social Services

DVA Department of Veterans’ Affairs

EdEP Education Entry Payment

FFR Federal Financial Relations

FMA Act Financial Management and Accountability Act 1997

FTB Family Tax Benefit

HACC Home and Community Care

MYEFO Mid-Year Economic and Fiscal Outlook

NAATI National Accreditation Authority for Translators and Interpreters

NAHA National Affordable Housing Agreement

NCRP National Respite for Carers Programme

NDIA National Disability Insurance Agency

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Abbreviations

NDIS National Disability Insurance Scheme

NPAH National Partnership Agreement on Homelessness

NRAS National Rental Affordability Scheme

PES Pensioner Education Supplement

PGPA Act Public Governance, Performance and Accountability Act 2013

PM&C Department of the Prime Minister and Cabinet

PPL Paid Parental Leave

SACS Social, Community, Home Care and Disability Services

SSAT Social Security Appeals Tribunal

TILA Transition to Independent Living Allowance

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