PORTFOLIO BUDGET STATEMENTS BUDGET RELATED PAPER NO. 1.15A SOCIAL SERVICES PORTFOLIO

Transcription

1 PORTFOLIO BUDGET STATEMENTS BUDGET RELATED PAPER NO. 1.15A SOCIAL SERVICES PORTFOLIO BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND PROGRAMMES BY AGENCY

2 Commonwealth of Australia 2014 ISBN (print) ISBN (PDF) ISBN (.docx) This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, Department of Social Services logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from Use of Department of Social Services material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of Social Services endorses you or your use of the work). 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 material If 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. Use of the Coat of Arms The terms under which the Coat of Arms can be used are set out on the It s an Honour website (see Other uses Inquiries regarding this licence and any other use of this document are welcome at: Steve Jennaway, Chief Finance Officer, Department of Social Services, Printed by CanPrint Communications Pty Ltd ii

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4 Abbreviations and conventions The following notations may be used: NEC/nec nil not elsewhere classified.. not zero, but rounded to zero na nfp $m $ million $b $ billion not applicable (unless otherwise specified) not for publication Figures in tables and in the text may be rounded.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. Enquiries Should you have any enquiries regarding this publication please contact Steve Jennaway, Chief Finance Officer, Department of Social Services on A copy of this document can be found on the Australian Government Budget website at: iv

5 USER GUIDE TO THE PORTFOLIO BUDGET STATEMENTS

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7 USER GUIDE The purpose of the 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 (or Appropriation Bill [Parliamentary Departments] No 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 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 s and accordingly, these entities are not reported in the PB Statements. vii

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9 CONTENTS Portfolio overview... 1 Social Services portfolio overview... 3 Agency resources and planned performance Department of Social Services Australian Aged Care Quality Agency Australian Institute of Family Studies National Disability Insurance Agency Glossary Abbreviations ix

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11 PORTFOLIO OVERVIEW

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13 SOCIAL SERVICES PORTFOLIO OVERVIEW Ministers and portfolio responsibilities The Social Services portfolio is the largest area of expenditure and payments in the 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 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 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 It is subject to the FMA Act and will be subject to the PGPA Act from 1 July 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). 3

14 Portfolio overview 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. 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 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 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. 4

15 Portfolio overview AGED CARE PRICING COMMISSIONER The Aged Care Pricing Commissioner (the Commissioner) is a statutory office holder appointed under the Aged Care Act 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 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 The Quality Agency is subject to the FMA Act and will be subject to the PGPA Act from 1 July AUSTRALIAN HEARING Australian Hearing is a non-general Government Sector entity established under the Australian Hearing Services Act As such, Australian Hearing is not consolidated into the Commonwealth General Government Sector fiscal s. 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 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 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

16 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 SOCIAL SECURITY APPEALS TRIBUNAL The Social Security Appeals Tribunal (SSAT) is a tribunal whose existence was continued by the Social Security (Administration) Act 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. 6

17 Portfolio overview Figure 1: Social Services portfolio structure and outcomes Minister for Social Services The Hon Kevin Andrews MP Minister for Human Services Senator the Hon Marise Payne Assistant Minister for Social Services Senator the Hon Mitch Fifield Parliamentary Secretary to the Minister for Social Services Senator the Hon Concetta Fierravanti-Wells Department of Social Services Secretary: Mr Finn Pratt PSM Outcome 1: Social Security Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system. Outcome 2: Families and Communities Stronger families and more resilient communities by developing civil society and by providing family and community services. Outcome 3: Ageing and Aged Care Improved wellbeing for older Australians through targeted support, access to quality care and related information services. Outcome 4: Housing Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services. Outcome 5: Disability and Carers Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services. Outcome 6: Women Contribute 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 7: Indigenous Closing 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. Department of Human Services Secretary: Ms Kathryn Campbell CSC Outcome 1: Support individuals, families and communities to achieve greater self-sufficiency; through the delivery of policy advice and high quality accessible social, health and child support services and other payments; and support providers and businesses through convenient and efficient service delivery. 7

18 Portfolio overview Figure 1: Social Services portfolio structure and outcomes (continued) Minister for Social Services The Hon Kevin Andrews MP Assistant Minister for Social Services Senator the Hon Mitch Fifield Parliamentary Secretary to the Minister for Social Services Senator the Hon Concetta Fierravanti-Wells Aged Care Commissioner Ms Rae Lamb Objective To provide an independent review mechanism for the decisions and processes of the Aged Care Complaints Scheme and the processes of the Australian Aged Care Quality Agency in accrediting residential aged care services and quality review of home care services. Aged Care Pricing Commissioner Ms Kim Cull Objective To increase the level of transparency in the pricing of residential aged care services through the approval of extra service fees and the approval of proposed accommodation payments that are higher than the maximum amount determined by the Minister. Australian Aged Care Quality Agency Chief Executive Officer: Mr Nick Ryan Outcome 1: High-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. Australian Institute of Family Studies Director: Professor Alan Hayes AM Outcome 1: 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. 8

19 Portfolio overview Figure 1: Social Services portfolio structure and outcomes (continued) Minister for Social Services The Hon Kevin Andrews MP Assistant Minister for Social Services Senator the Hon Mitch Fifield Parliamentary Secretary to the Minister for Social Services Senator the Hon Concetta Fierravanti-Wells National Disability Insurance Agency Chief Executive Officer: Mr David Bowen Outcome 1: To 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. Social Security Appeals Tribunal Principal Member: Ms Jane Macdonnell Objective To conduct merit reviews of administrative decisions made under a number of enactments, in particular the social security law, family assistance law and child support law. 9

20 Portfolio overview Portfolio resources Table 1 shows the additional resources provided to the portfolio in the budget year, by agency. Appropriation Receipts Total Table 1: Portfolio additional resources Bill No. 1 $m Bill No. 2 $m Special $m $m $m DSS Administered appropriations 4, , ,812.1 Departmental appropriations Total: 4, , ,415.1 DHS 2 Administered appropriations , ,506.2 Departmental appropriations 4, ,438.3 Total: 4, , ,944.5 AIFS Administered appropriations Departmental appropriations Total: AACQA Administered appropriations Departmental appropriations Total: NDIA 3 Administered appropriations Departmental appropriations Total: Portfolio total 9, , , ,112.9 Less amounts transferred within portfolio Resources available within portfolio: 1 Total resourcing does not include unused appropriations or the balance of special accounts carried forward from 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 Budget Statements. 3 Funding under Appropriation Bill (No. 1) is appropriated to DSS and then paid to the NDIA. 130,

21 AGENCY RESOURCES AND PLANNED PERFORMANCE Department of Social Services Australian Aged Care Quality Agency Australian Institute of Family Studies National Disability Insurance Agency

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23 Department of Social Services Agency resources and planned performance

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25 DEPARTMENT OF SOCIAL SERVICES Section 1: Agency overview and resources Strategic direction statement Agency resource statement Budget measures Section 2: Outcomes and planned performance Outcomes and performance information Section 3: Explanatory tables and budgeted financial statements Explanatory tables Budgeted financial statements

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27 DEPARTMENT OF SOCIAL SERVICES 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. 17

28 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 The 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 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 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 continuing income management in existing locations and extending it to the Ceduna region in South Australia 18

29 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 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 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 Further changes to the Commonwealth Seniors Health Card include abolishing the Seniors Supplement and treating untaxed superannuation income more fairly. 19

30 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 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 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. 20

31 Changes announced in the 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 , 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 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. 21

32 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 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 , the Australian Government is providing ongoing funding to support the continuing development of the homelessness evidence base. 22

33 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. 23

34 DSS will continue to work with States and Territories to implement the National Disability Strategy 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 New contracts will take effect from March 2015 through to March Contracts for the remaining business will be extended from July 2015 to March 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

35 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 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 , 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 A new way of working grants and funding A key focus for DSS in 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

36 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 s for as at Budget May 2014 Ordinary annual services 1 Departmental appropriation Prior year departmental Estimate of prior year amounts + available in Proposed at Budget = Total Total available appropriation appropriation 2 184, , ,044 Departmental appropriation 3 571, , ,146 s 31 relevant agency receipts 4 25,284 25,284 79,043 Total 184, , , ,233 Administered expenses Outcome 1 13,681 13,681 16,486 Outcome 2 585, , ,951 Outcome 3 2,235,508 2,235,508 1,397,288 Outcome 4 70,558 70,558 51,992 Outcome 5 1,504,081 1,504, ,483 Outcome 6 1,153 Outcome 7 119,843 Total 4,409,292 4,409,292 2,986,196 Non appropriated revenue 15,612 15,612 18,913 Payments to CAC Act bodies 329, , ,966 Total administered 4,754,666 4,754,666 3,145,075 Total ordinary annual services A 184,633 5,351,217 5,535,850 3,987,308 Other services 5 Administered expenses Specific payments to states, ACT, NT and local government Outcome 4 48,741 Total 48,741 Departmental non-operating Equity injections 6,373 6,373 41,663 Total 6,373 6,373 41,663 Administered non-operating Payments to CAC Act bodies non-operating 23,349 23,349 42,118 Total 23,349 23,349 42,118 Total other services B 29,722 29, ,522 Total available annual appropriations 184,633 5,380,939 5,565,572 4,119,830 26

37 Table 1.1: Department of Social Services resource statement budget s for as at Budget May 2014 (continued) Estimate of prior year Proposed at Budget Total amounts + available in = Total available appropriation Special appropriations Special appropriations limited by criteria/entitlement Aboriginal Land Rights (Northern Territory) Act ,932 Aged Care Act ,695,782 10,695,782 7,655,869 Aged Care (Bond Security) Act ,500 Social Security (Administration) Act ,053,026 86,053,026 78,683,409 A New Tax System (Family Assistance) (Administration) Act ,305,596 19,305,596 20,543,517 National Health Act section 12 83,422 83,422 15,798 Paid Parental Leave Act ,921,140 1,921,140 1,782,309 Student Assistance Act , , ,303 Total special appropriations C 118,385, ,385, ,059,637 Total appropriations excluding special accounts 184, ,766, ,951, ,179,467 Special accounts Opening balance 6 60,906 60,906 2,448,956 Appropriation receipts 7 209, , ,774 Non-appropriation receipts to special accounts 1,341 1,341 29,348 Total special accounts D 60, , ,687 2,699,078 Total resourcing 245, ,977, ,223, ,878,545 A+B+C+D Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations (358,111) (358,111) (257,658) Total net resourcing for DSS 245, ,619, ,864, ,620,887 1 Appropriation Bill (No. 1) Estimated adjusted balance carried forward from previous year for annual appropriations. 3 Includes an amount of $18.8m in for the departmental capital budget (refer to Table for further details). For accounting purposes this amount has been designated as contributions by owners. 4 s 31 relevant agency receipts. 5 Appropriation Bill (No. 2) Estimated opening balance for special accounts. For further information on special accounts see Table Appropriation receipts from DSS annual and special appropriations for Note: All figures are GST exclusive. 27

38 Table 1.1: Department of Social Services resource statement budget s for as at Budget May 2014 (continued) Third-party payments from and on behalf of other agencies 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 1999 Special appropriations Social Security (Administration) Act 1999 Special appropriations Paid Parental Leave Act 2010 Special appropriations Student Assistance Act 1973 Special appropriations Aged Care Act 1997 Special appropriations National Health Act section 12 - Continence Aids Payment Scheme Annual appropriations Compensation and Debt Relief Annual appropriations Ex-Gratia and Act of Grace Payments Department of Veterans' Affairs has the authority to make the following payments to customers on behalf of DSS: Special Appropriations A New Tax System (Family Assistance) (Administration) Act 1999 Special appropriations Social Security (Administration) Act 1999 Payments made to other agencies for the provision of services: Australian Taxation Office Department of Veterans' Affairs Payments made to CAC Act bodies within the portfolio: Aboriginal Hostels Limited Indigenous Business Australia Indigenous Land Corporation ,478,469 21,816,276 86,406,667 78,882,548 1,899,260 1,681, , ,886 10,697,068 7,578,338 83,422 15, ,784 3,775 1,248 1,217 56,402 55, ,374 71,552 9,664 National Disability Insurance Agency 343,615 8,271 Torres Strait Regional Authority Note: All figures are GST exclusive. 49,645 28

39 1.3 BUDGET MEASURES Budget measures in Part 1 relating to DSS are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Department of Social Services budget measures Part 1: Measures announced since the MYEFO Revenue measures Social Security Agreement with India Programme 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 1.11 Within and Between Major Cities Administered revenues Departmental revenues 1.11 Total A sustainable Higher Education Loan Programme repayment thresholds and indexation 2 Administered revenues Departmental revenues Total Total revenue measures Administered 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) 29

40 Table 1.2: Department of Social Services budget measures Part 1: Measures announced since the MYEFO (continued) Programme 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 Total (132,443) (245,912) (374,633) (500,699) Family Payment Reform maintain Family Tax Benefit payment rates for 1.1, 1.12 two years Administered expenses (399,751) (718,918) (730,430) (740,588) Departmental expenses Total (398,844) (718,541) (730,430) (740,588) Family Payment Reform limit the Large Family Supplement to families 1.1, 1.12 with four or more children Administered expenses (125,022) (125,225) (128,162) Departmental expenses Total 436 (124,736) (125,106) (128,162) Family Payment Reform better 1.1, 1.12 targeting of Family Tax Benefit Part B 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 1.1, 1.12 supplements Administered expenses (410,276) (399,042) (424,499) Departmental expenses Total 33 (409,964) (399,005) (424,452) Family Payment Reform remove the Family Tax Benefit Part A per child 1.1, 1.12 add-on Administered expenses (76,796) (69,347) (62,159) Departmental expenses Total 369 (76,665) (69,347) (62,159) Family Payment Reform limit Family Tax Benefit Part B to families with 1.1, 1.12 children under six years of age Administered expenses (87,528) (245,058) (1,578,907) Departmental expenses Total 550 (87,225) (244,780) (1,578,763) 30