Annual Report 2003-04 I Volume 1ISSN: 1442-5238

ISBN: (Volume one) 1920 851 526

ISBN: (Volume two) 1920 851 518

ISBN: (set) 1920 851 631

ABN: 36 342 015 855 FaCS, Social Security Appeals Tribunal and Australian Institue of Family Studies

ABN: 36 342 015 855 004 Child Support Agency

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/cca

Contact officer:

Assistant Secretary

Resource Management Branch

Department of Family and Community Services

Box 7788

Canberra Mail Centre ACT 2610

Telephone 1300 653 227 (for the cost of a local call, mobile phones at mobile rates)

Email: annual.report@facs.gov.au

Internet: www.facs.gov.au/annualreport

As in previous years, this year’s annual report of the Department of Family and Community Services (FaCS)-the sixth — has been divided into two volumes for ease of access and accessibility.

Volume one provides an overarching view of the department’s functions and a summary of its achievements for the year.

Volume two provides more detail and covers performance reporting, management and accountability, appendixes and financial statements.

Acknowledgments

Annual report team: David Bush, Carmel Curran, Greg Moores and Christine Motbey Editorial/design consultants: Wilton Hanford Hanover and ZOO

Australian Government

Department of Family and Community Services

THE SECRETARY

Box 7788 Canberra Mail Centre

ACT 2610

Telephone 1300 653 227

TTY 1800 260 402

Internet: www.facs.gov.au

Senator the Hon Kay Patterson

Minister for Family and Community Services

Parliament House

CANBERRA ACT 2600

Dear Minister

I am pleased to present to you the annual report of the Department of Family and Community Services for the year 2003-04 prepared in accordance with the requirements of section 63 of the Public Service Act 1999.

This report has been prepared in accordance with the Requirements for Annual Reports approved by the Joint Committee of Public Accounts and Audit under subsection 63(2) of the Public Service Act. Subsection 63(1) of that Act requires me to provide you with a report to present to the Parliament.

I am also required to give to you a report on the administrative operation of the social security law and the family assistance law under subsection 241(1) of the Social Security (Administration) Act 1999 and subsection 232(1) of the A New Tax System (Family Assistance) (Administration) Act 1999 as soon as practicable after 30 June each year.

This report also covers the performance of the Child Support Agency and provides relevant information as required by subsection 14(1) of the Child Support (Registration and Collection) Act 1988 and subsection 148(1) of the Child Support (Assessment) Act 1989.

I would like to take this opportunity, in presenting this report, to thank the staff of the department for their commitment and hard work and their capacity to rise to the challenges of the past year.

Yours sincerely

Mark Sullivan

October 2004

FaCS—a snapshotAbout usThe Department of Family and Community Services (FaCS) is responsible for shaping social policies and ensuring they are delivered efficiently through partnerships with other government and non-government organisations.

FaCS focuses on families and people with different needs such as young people and students, people living in rural and remote areas, Aboriginal and Torres Strait Islander peoples, and people from diverse cultural and linguistic backgrounds.

FaCS is responsible for about one-third of total government outlays. While FaCS’ national office is in Canberra, the department also has offices located in each state and territory throughout Australia, including in rural and regional areas.

FaCS is part of the Australian Government’s family and community services portfolio. The portfolio is responsible for a broad range of social policies and support affecting Australian society and the living standards of Australian families.

The portfolio consists of:

FaCS, which incorporates the Child Support Agency (CSA). CSA administers the Child Support Scheme and helps separated parents take responsibility for the financial support of their children

Centrelink, which delivers income support payments and services to the Australian community on behalf of FaCS

the Social Security Appeals Tribunal, which provides a mechanism of review that is fair, just, economical, informal and quick

the Australian Institute of Family Studies, which promotes the identification and understanding of factors affecting marital and family stability in Australia.

In 2003–04…

We spent:$67.7 billion — around 8 per cent of Australia’s gross domestic product.

We delivered: through the department—80 programs using more than 15 000 service providers at a cost of

nearly $1 billion

through service providers—income support payments and services worth $65.2 billion to over 6 million Australians

through the Child Support Agency—help to over one million children by supporting over 1.3 million parents to transfer $2.186 billion in child support.

We supported and helped: families and children

young people and students

working-age people

people with disabilities

carers

the aged

people living in rural and remote areas

people who are homeless or at risk of homelessness

Aboriginal and Torres Strait Islander peoples

people from diverse cultural and linguistic backgrounds

communities across the country.

We worked in partnership with: other Australian Government departments and agencies

foreign governments

state and territory governments

local government

businesses

the not-for-profit community sector

peak representative organisations

service providers

research bodies

families and communities.

Highlights for the year… $19.2 billion extra assistance for Australian families over five years

$461 million to help carers of people with disabilities and the frail aged

$365.8 million over four years for a ‘new-look’ Stronger Families and Communities Strategy that focuses on early childhood

$226 million for the Child Care Support Program

$99 million extra assistance over four years to support a viable disability employment sector

44 000 more child care places

Australians Working Together initiatives fully implemented

Part 1 | The year in reviewSecretary’s introductionMark Sullivan

In my third year as Secretary of the Australian Government Department of Family and Community Services (FaCS), I am delighted to introduce the department’s annual report for 2003-04.

The two-volume report covers FaCS’ performance against our three ongoing outcomes—‘families are strong’, ‘communities are strong’, and ‘individuals reach their potential’.

Volume one gives a broad picture of achievements and challenges, and highlights some important activities, policies and programs. Volume two includes extensive performance, management and accountability details.

Reporting on the Child Support Agency again features prominently, including a review by the General Manager, Catherine Argall.

For the second time, FaCS is also producing a separate triple bottom line (TBL) report on the economic, social and environmental impact of our internal operations during the year.

Verified by the Australian National Audit Office, last year’s report was commended by the Auditor-General as a ‘real team effort’.

This year our TBL report tracks our performance against targets and benchmarks that were established in 2002-03 and details several improvements and efficiencies as well as areas where more effort is required.

Welcoming new peopleOn 7 October 2003 Senator the Hon. Dr Kay Patterson was appointed Minister for Family and Community Services. As well, the Hon. Christopher Pyne, MP, was appointed Parliamentary Secretary to the Minister. The Hon. Larry Anthony, MP, continued as Minister for Children and Youth Affairs.

On 15 April 2004 the Prime Minister announced new arrangements for the delivery of government programs and services to Indigenous people. This involves mainstreaming the functions and services from the Aboriginal and Torres Strait Islander Commission (ATSIC) and the executive agency Aboriginal and Torres Strait Islander Services (ATSIS) into other government agencies. To take effect on 1 July 2004, the functions transferring to the FaCS portfolio are community housing and infrastructure, family violence (administered jointly with the Attorney-General’s Department), and the Indigenous service delivery organisation, Aboriginal Hostels Limited, administered jointly with the Department of Finance and Administration.

Most importantly, these changes mean welcoming 200-plus wonderful people from ATSIC and ATSIS to the department right across Australia.

Supporting families and acknowledging carersThe past year saw FaCS as a hard-working and pivotal player at the centre of the Government’s social policy agenda.

Our efforts were reflected in a range of new Budget measures that provide extensive funding for the FaCS portfolio.

Under the More Help for Families initiative, Australian families will receive increased family assistance worth $19.2 billion over five years, with the first payments made in June 2004 to nearly 2 million families. The package assists families with the costs of raising children, improves rewards from work, and helps families balance work and family life.

As well, the Budget included a $461 million package for carers of people with disabilities and the frail aged that acknowledges the huge contribution carers make to the community. Initiatives include payment of one-off carer bonuses, more flexibility in eligibility for carer payments, and better support for people in care.

Business services in the disability employment sector are also set to benefit with an extra $99 million over four years to ensure a viable and sustainable disability employment sector.

In the months leading up to the 2004-05 Budget it was unfortunate that FaCS’ work was compromised by the unauthorised disclosure of documents relating to the portfolio.

While police continue to investigate, the leaks were a good reminder to check our document security practices and to reinforce to our people the importance of securing confidential documents and carrying out our privacy and confidentiality responsibilities.

Focusing on childrenThe Prime Minister’s commitment in April 2004 of $365.8 million to extend the Stronger Families and Communities Strategy was another significant announcement for FaCS.

Building on the success of the strategy since 2000, the new funding is for local initiatives that intervene early to help families, children and communities at risk.

Designed around the twin concepts of the social coalition and early intervention, the ‘new-look’ strategy reaffirms the Government’s commitment to providing better opportunities for children and their families and to building community capacity.

Drawing on the latest research and feedback from consultations on the National Agenda for Early Childhood, the strategy now focuses more strongly on early childhood development.

With funding of $1 million to $4 million to go to each of 35 disadvantaged communities, the strategy’s ‘Communities for Children’ program signals a new way of working with the community sector.

Selected non-government organisations such as Mission Australia, Anglicare and the YWCA will act as facilitating partners to develop community action plans and manage local projects and services.

Working with othersDuring the year the department continued to work across the portfolio and with others on collaborative approaches to policy and program development and service delivery—for example:

through the FaCS state and territory offices (STOs) (the ‘public face’ of the department) — to help us manage the 80 different funding programs that we deliver through 15 000 service providers

with Centrelink—to finalise and sign Alliance 2004, a new agreement that includes a framework that makes our respective roles and accountabilities much clearer

through the Child Support Agency—to make substantial, evidence-based submissions to, and appear before, the House of Representatives Standing Committee on Family and Community Affairs’ inquiry into child custody arrangements

with the Australian Government departments of Employment and Workplace Relations, and Education, Science and Training—to implement the final Australians Working Together measures and to start taking the participation agenda forward by collaborating at national level and on individual projects

with state and territory governments—to work on consistent, joint approaches to child care workforce issues and a national plan for foster care; and to follow through on Commonwealth-state housing and disability agreements and the Supported Accommodation Assistance Program

with business and community leaders—through the Prime Minister’s Community Business Partnership, to promote a culture of corporate and individual social responsibility through initiatives like the National Brokerage Service and National Partnerships Week

with Indigenous communities—for example, at Wadeye in the Northern Territory, to jointly achieve positive youth, employment, and housing and construction results; and to develop a scoping study for remote service delivery policy

with the child care sector—to restructure the Child Care Support Broadband and create the Child Care Support Program, based on four streams of ‘quality’, ‘inclusion’, ‘community’ and ‘program’ support

with the disability employment sector—to continue implementing case-based funding and quality assurance and to help business services plan for changes, such as paying award-based wages

with young people—through the National Youth Roundtable, the National Indigenous Youth Leadership Group, and through events like the ‘Creating Common Wealth’ Youth Enterprise Development Forum

internationally—to finalise and sign social security agreements with Croatia and Chile; and to exchange knowledge and undertake joint projects with other governments, particularly in China and Vietnam.

Positioning FaCS to achieve our outcomesInternally, the year saw a departmental restructure (effective 1 July 2004), designed to reflect emerging policy agendas and to place FaCS in a better position to achieve our outcomes.

Initially driven by the growing interest of government and community in family and children’s issues, the restructure also recognises the need to consolidate our work on economic participation and to align our corporate functions with our business priorities.

Essentially the restructure expands the capacity of the Family and Children’s area, with a second executive director to help meet emerging policy priorities and workload pressures.

In the Participation area, the restructure puts a greater emphasis on outcomes for working- age people, including more attention to policy integration and service quality. It also reflects the departmental priority to develop the evidence base for policy and implementation by aligning key functional activities around evaluation, data and program management.

In the Community Development and Support area, the restructure also aims to consolidate our understanding of the roles communities can play, of the ways disadvantage is often highly localised, and of how to break barriers to participation. It places additional focus on integrating and coordinating services and programs to build self-reliant, stronger communities.

As well, the restructure combines people’s talents and skills in the areas of marketing, events management and communication, and puts a sharper focus on support for our ministers.

Staff and managers were consulted every step of the way on developing and implementing the restructure. Because of this, I believe we achieved organisation-wide ownership and understanding of the new arrangements and a strong commitment to making it work.

Promoting ability and diversityDuring the year I launched the department’s Mature Workers Strategy—the first of its kind for an Australian Government agency.

The strategy acknowledges a shift in the Australian Public Service away from the ‘you are 55 and it’s time to leave’ thinking and, instead, offers mature workers opportunities to continue working if they want to.

The strategy recognises the ability and value of mature-age workers and brings together a range of activities to help them to plan their working futures and pass on knowledge and skills to their younger colleagues.

Initiatives include offering opportunities for mature workers to experience different work and to revitalise their career paths; and providing information about the benefits of age diversity in the workplace to recruitment and selection panels.

The year also marked the formation of the FaCS Diversity Council. With members drawn from the department’s national and STO staff at all levels, the council is an advisory body to the FaCS Executive Board on workplace diversity matters.

As the council leader, I am determined to work with council members to champion a strong and diversified FaCS workforce, build on our diversity capability, and promote workplace harmony.

The council will also monitor achievements against targets in the FaCS Diversity Plan and TBL reporting.

Looking back and looking aheadIn 2003 FaCS celebrated its fifth year with birthday events and activities held in the department’s offices around the country.

Set up in 1998, the Family and Community Services portfolio brought together elements of four former portfolios into a single program structure. The aim was to take a more holistic approach to new directions in social policy.

Looking back, the challenges were to work on closer integration of programs; go beyond the safety net and focus on prevention and capacity building; promote independence and self-reliance; and develop strong and effective partnerships.

Five years on, FaCS has achieved great things in all these areas, particularly in welfare reform, participation policies, early intervention and prevention, strengthening families and communities, and working in partnerships across government and with Australian communities.

In 2003-04 the majority of FaCS’ work involved developing policies. Indeed, the 2004-05 Budget was probably the most demanding policy development task ever undertaken by this department.

Looking ahead, the primary tasks for 2004-05 are an extensive policy implementation effort, the inclusion of the programs and services delivered to Indigenous people, and meeting the priorities that government will present to us.

I strongly believe that everyone in FaCS has the knowledge, capacity, endurance and enthusiasm to work together to make a difference to Australian society, tackling these challenges head-on.

Mark Sullivan

Secretary

FaCS Executive

About Mark Sullivan, SecretaryMark Sullivan was appointed Secretary of the Department of Family and Community Services (FaCS) on 18 January 2002. Mark was well known to many as the CEO of the Aboriginal and Torres Strait Islander Commission, a position he held for nearly three years from May 1999. Before heading up the commission, Mark was a deputy secretary at the Department of Immigration and Multicultural Affairs. He has extensive senior managerial experience in the private and public sectors, Mark Sullivan including with WANG Australia, SBS, the Department of Social Security and the

Australian Taxation Office. Mark is a Fellow of the Society of Certified Practising Accountants and obtained a Bachelor of Economics from Sydney University in 1971.

“This year’s policy development and implementation agenda has probably challenged and tested our staff’s stamina more than I have ever seen it happen before. Their response has just been wonderful. People have really gone that extra yard. You grow to expect it, but you also never cease to be amazed. And it’s even better when you see a positive reward in government announcements.”

About Wayne Jackson, Deputy SecretaryAs Deputy Secretary of FaCS since July 1998, Wayne Jackson has represented the department on a number of broadly based policy review bodies, including the Welfare Reform Reference Group (Deputy Chair), the Youth Pathways Action Plan Taskforce and the Family Law Pathways Advisory Group. He is also a member of the Australian Statistics Advisory Council. Before joining FaCS, Wayne worked extensively on social policy in both central and line departments. He was

Deputy Secretary (Social Policy) in the Department of the Prime Minister and Cabinet, where he also held branch head positions, and previously worked in the Department of Health and Community Services and the Department of Finance. Wayne has a Bachelor of Economics (Hons) degree from Monash University.

Wayne assists the Secretary in managing the department and has responsibility for family and children, economic and social participation, seniors, strategic policy, service delivery, budget and legal issues.

“A hallmark of FaCS is the lead our people continually provide in developing a shared policy and implementation agenda with others—other departments, other levels of government, local communities, service providers, and consumer and business representatives. We have also developed excellent working relations with a number of other countries in our region as part of our international capacity-building activities.”

About Stephen Hunter, Deputy SecretaryStephen Hunter joined FaCS as a deputy secretary on 1 July 2003. He has diverse public sector experience. For the five years before he came to FaCS he was a deputy secretary of the Department of the Environment and Heritage with responsibility for natural resource management. Prior to this he held senior positions in the Department of Transport and Regional Development and in various ACT Government departments. Stephen joined the Australian Public Service in 1983 following work in the mining industry, photo journalism and music. Stephen holds a BA (Hons) in political science and sociology from the Australian National University.

Stephen assists the Secretary in managing the department and has particular responsibility for community, housing, Indigenous, youth, people, ministerial support, communication, international and information technology issues.

“The sheer scope of what FaCS does is mirrored in the wide range of relationships it has with people and communities. Every day our people continue to prove they have the skills to meet this challenge, by managing very complex relationships ranging from those with state governments and organisations like Centrelink through to relationships with nongovernment organisations and small community groups.”

Departmental overviewFaCS Strategic Statement 2002-05The FaCS Strategic Statement clearly sets out FaCS’ strategic directions and what the department has to do to achieve its three outcomes.

In essence, the statement underpins all of the department’s policy and planning approaches, management processes and performance reporting.

Our visionFaCS is committed to achieving its vision of ‘a fair and cohesive Australian society’.

Our purpose—what we are here to doFaCS takes the lead and works with others to help families, communities and individuals build their self-reliance and make choices through:

economic and social participation

prevention and early intervention

a responsive and sustainable safety net.

Our three outcomes—the difference we will makeWhatever their role, everyone in FaCS works towards achieving three outcomes:

Families are strong.

Communities are strong.

Individuals reach their potential.

FaCS Priorities Plan 2003-04FaCS’ Priorities Plan is a working document, designed to help and guide everyone in FaCS with business and other planning. It provides a focus for each person in FaCS to think about their work and how it links with the Government’s objectives and what happens in the rest of the department.

The six priorities in the plan are:

Investing in children and strengthening families

Participation

Implementation and service delivery

Financial integrity

People

Knowledge.

These priorities do not account for all of the activities and important work of the department, but represent areas where FaCS decided to put in additional effort to meet emerging needs and contribute to government expectations.

What FaCS spends and whereTotal expenses in 2003-04 were $67.7 billion — that is, around 8 per cent of Australia’s gross domestic product.

The majority of expenses are for more than 30 individual income support and family assistance payments. Total expenses on these payments were $61.4 billion in 2003-04. Figure 1 shows 2003-04 expenses on the seven largest payments and their share of total income support and family assistance payment expenses.

The remainder of expenses goes to a wide range of other programs and operational expenditure. See Volume two for detail.

Delivering on family assistanceWith the Government firmly focused on family and children’s issues over the past year, the 2004-05 Budget delivered the largest package of family assistance ever implemented. Overall, the More Help for Families package includes support for families with the costs of raising children, income tax measures and incentives to save for retirement.

For FaCS, the three key themes are assisting families to raise their children; improving rewards from working; and helping families to balance their work and family responsibilities.

This includes a one-off payment to families with dependent children of $600 a child; relaxation of the income tests for both Family Tax Benefit (A) and Family Tax Benefit (B); an ongoing payment

of $600 a child payable after tax returns are submitted each year; and a non-income tested Maternity Payment of $3000 (from 1 July 2004), increasing to $4000 from 1 July 2006 and then to $5000 from 1 July 2008.

As well, the Budget and announcements in December 2003 included 40 000 more outside school hours care places, 4000 additional family day care places, and an expansion of playgroup services.

An extra $16.3 million over four years was also provided for the Child Care Support Program (previously known as the Child Care Support Broadband). The funding is to establish services in high-need rural, regional and Indigenous communities and to support the inclusion of children with additional needs into quality child care.

On 2 June 2004 Minister Anthony announced additional Child Care Support Program initiatives. These brought the level of funding for 2004-05 to $226 million—that is, an increase of $25 million over last year’s funding.

Figure 1 Major income support and family assistance payments, 2003–04

‘ Working on the More Help for Families package showed us how professional and dedicated FaCS staff are in achieving outcomes. It was fantastic to see how people from a range of areas in FaCS and colleagues in other agencies pulled together under great time pressures and were able to deliver a signifi cant package of policy measures for Australian families.’

— Ian Wannan, Mike Gehrig, Allan Groth (Family Payments Branch); Suzan Djura, Janet Vidler (Legal Services Branch); Donna Phillips (Budget Development Branch)—some of the many FaCS National Office people involved in the process

‘It’s an important part of our job to understand the needs and concerns of the people with disabilities who use our services, and of their families and carers. The information sessions for families and carers we held on the recent changes were really well received. Feedback from the sessions was very positive, particularly about the focus on employment and the flexibility offered by the assistance package for services.’ — Noel Pollard, Frank Dinneen, Rod McNab, Marjorie Jackson (Brisbane); Judy Paton, Mark Norris (Townsville)—Queensland Offi ce Participation Unit

Supporting people with disabilities and their carersIn recognition of the important work of individuals who care for people with disabilities, the 2004-05 Budget included a $461 million package that includes help for carers to stay connected with the community; better access to respite care for older parents who are caring for their son or daughter with a disability; and more support for young carers.

From 1 September 2004 eligibility for Carer Allowance will be extended to more than 13 000 carers who do not live with the people for whom they care.

As well, a range of programs will be piloted to support carers, and an advisory body will be established to work with state and territory governments to develop better transitional planning for ageing carers of children with disabilities.

The Budget also reaffirmed the April 2004 ‘Security, Quality Services and Choice for People with Disabilities’ announcement of $99 million over four years to support a viable and sustainable disability employment sector.

The funding will assist disability business services to improve their viability and to meet the costs of award-based wages. It comes with a guarantee that no person with a disability will lose access

to a service because of the Departmental overview 13 reforms to business services—for example, the introduction of case-based funding and quality assurance standards.

Developing an early childhood agendaDuring the year FaCS continued to work with Minister Anthony on developing the National Agenda for Early Childhood.

Extensive nationwide consultations—with state and territory government officials, local government, experts in early childhood, community organisations, professionals working with children, Indigenous representatives, and parents—were completed.

FaCS staff also discussed the agenda with their state and territory government counterparts, and the agenda was raised at ministerial council meetings that deal with childhood- related issues. In the coming year more formal discussions will take place.

In October 2003 the report on those consultations, Towards a National Agenda for Early Childhood—What You Told Us, was released. The report outlined feedback from the national agenda consultations, which reflected significant and bipartisan support for an early childhood agenda.

All stakeholders agreed with the aim to better support parents and to focus on young children’s needs, recognising the importance of the early years of a child’s life.

As well, people agreed that clearer statements concerning the roles and responsibilities of all levels of government and the community sector, and better integration of services for families and children, were needed.

In the coming year the agenda will move forward in the four priority areas:

healthy young families

early learning and care

supporting families and parents

child-friendly communities.

In February 2004 the first data collection wave of the Growing Up in Australia longitudinal study began. The Australian Institute of Family Studies—part of the FaCS portfolio—is conducting the study with a consortium of leading researchers from universities and research institutions around Australia.

This study, along with a longitudinal study of Indigenous children, will gather Australia-wide data on numerous aspects of a child’s life, including their experiences within their families and communities and at child care, their health, and in their early years of education. Establishing a solid evidence base will help ensure that future family and children’s policies are targeted, effective and practical.

“Working on the National Agenda for Early Childhood has been challenging, yet exciting and rewarding. It’s been fun to work on something we know to be important—for us personally, for FaCS, and for this country's future. We've had great support from all kinds of people and groups and, encouragingly, from Finance and Treasury. Bringing together interesting combinations of ideas across departments, sectors and governments, we had the chance to think creatively and ambitiously about ways to improve the lives of children and their families.”

— Kim Nguyen and Jean Gifford (Family and Children’s Policy Branch, National Office)

“Without doubt several Stronger Families and Communities Strategy projects have made significant and positive differences to some of the most disadvantaged communities in Tasmania. And because it’s about governments working with local people, and decisions being based on what communities themselves want, the department is now starting to be seen as a ‘partner’ and not just a bureaucracy.”

— John Hargrave (Tasmanian Office)

Strengthening families and communitiesDrawing heavily on the evidence collected in developing the National Agenda for Early Childhood, the Budget included a major extension to the successful Stronger Families and Communities Strategy. At a cost of $356.8 million over the next four years, the ‘new-look’ strategy builds on the considerable investment in early childhood development and parenting made since 2000.

Over the past four years, the strategy allocated more than $220 million to almost 700 projects to strengthen families and communities across the country.

Designed once again around the twin concepts of the social coalition and early intervention, the strategy will focus on early childhood by funding four major ‘streams’:

more than $70.5 million for ‘Early Childhood — Invest to Grow’—to support existing, successful early childhood programs and to develop resources for parents, professionals, governments, and community organisations that influence childhood development

$60 million for ‘Local Answers’—to give communities the power to develop their own solutions and help them help themselves by supporting locally based projects

$125.3 million for ‘Choice and Flexibility in Child Care’—to continue in-home child care, extend incentives for providers to set up services in areas of high need, and help implement quality assurance systems for family day care and outside school hours care

$110 million for ‘Communities for Children’— to target up to 35 disadvantaged communities to undertake early childhood initiatives.

As a new model of service delivery, ‘Communities for Children’ represents a new way of FaCS doing business with community organisations.

With funding of between $1 million and $4 million going to each disadvantaged community, selected non-government organisations like Mission Australia, Anglicare and the YWCA will act as ‘facilitating partners’ to manage and implement the program in nominated sites.

The facilitating partner will bring the community together to talk about local issues that affect young children and jointly develop a community action plan. Based on the community’s priorities, the facilitating partner—not the department— will distribute the funding to existing and new services.

Broadening our horizons

In Australia In its ‘Statement of Commitment to Aboriginal and Torres Strait Islander People’, FaCS recognises that ‘Indigenous business is everybody’s business’, and the department strives to integrate this thinking into everything it does.

The mainstreaming of ATSIC and ATSIS functions announced by the Prime Minister in April 2004 is set to reinforce this commitment and expand the department’s responsibilities in delivering Indigenous services. In this the department will be assisted by more than 200 staff transferred to FaCS to handle these functions.

To take effect on 1 July 2004, the functions transferring to the FaCS portfolio from ATSIC and ATSIS are the Community Housing and Infrastructure Program (CHIP) and family violence (jointly with the Attorney-General’s Department). The ministers for Family and Community Services and Finance and Administration will also have oversight of Aboriginal Hostels Limited.

Following the announcement of the changes, the department set up a high-level steering committee to ensure smooth transitions in service delivery and to extend a warm welcome to the new staff. The FaCS state and territory office network played a key role in making the transfer of functions and staff seamless and successful.

FaCS will broaden its horizons with around 160 of the new staff regionally based in the planned network of Indigenous Coordination Centres.

Including officers working directly to several major departments, the centres will help to implement a whole-of-government approach to delivering Indigenous services and programs.

The centres will work with local communities to ensure that services are delivered in ‘joined up’ and customised ways and to negotiate regional and local agreements for effective partnerships and shared responsibilities.

This approach of shared responsibility is starting to work well, with eight Indigenous Community Coordination Pilot projects already endorsed by the Council of Australian Governments.

As the lead Australian Government agency at the Wadeye pilot in the Thamarrurr region in the Northern Territory, FaCS is already learning some practical lessons about the shared responsibility model in working closely with other government agencies and communities. At Wadeye this involves federal and state government agencies, the Thamarrurr Regional Council and the people of Wadeye themselves.

The ‘Shared Responsibility Agreement’ for Wadeye sets out the priority areas for action — youth, housing and construction, and women and families. Progress includes plans to build more houses and have local people involved in their design, construction and maintenance; a strategy to provide local jobs for local people; and an economic education project for the whole region.

As a relatively new phenomenon in the way FaCS does business with Indigenous communities, the Wadeye pilot involves genuine and working partnerships and, although it is early days, the lessons learned could contribute to the way the department works with Indigenous communities in the years to come.

“It really came home to me what this approach and relationship with the Wadeye people meant when one of the community leaders said recently, “This work is about us helping governments to change their attitude in how they work with us”. That says it all to me.”

— Agnese Rinaldi (Indigenous Policy and North Australia Office)

And internationally….The year saw two new bilateral international social security agreements signed with Croatia and Chile, bringing to 16 the number of social security agreements in place between Australia and other countries. Generally the agreements allow Australian residents to maximise their income by helping them to claim payments from other countries where they have spent part of their working life.

Internationally recognised as a leader in social policy development and service delivery systems, FaCS continued to share its expertise with and learn from other nations.

In October 2003, the department hosted the Six Countries Meeting on Social Security, held at Uluru in the Northern Territory. Bringing together senior officials of national social security agencies from Australia, Britain, Canada, Ireland, New Zealand and the United States, the

meeting provided an opportunity to exchange information on issues such as assisting people with disabilities to enter or return to the workforce, making a difference to customers in service delivery and responding to Indigenous policy challenges.

In April 2004, Minister Patterson opened the Australia-Vietnam Sectoral Conference on Retirement Incomes in Hanoi. Along with officials from various government agencies, the Australian delegation included business sector representatives interested in retirement incomes, funds management and prudential regulation. Topics covered at the conference included reforms to the Australian and Vietnamese social security systems; the structure, management and regulation of social security and pension funds; and fraud control and compliance. Apart from sharing information and cementing networks between the two countries, it is likely that commercial opportunities will flow to Australia, especially in the areas of prudential regulation and actuarial sciences.

In April Minister Patterson also co-hosted, with Vietnam’s Minister Le Thi Thu of the Vietnam Commission for Population, Family and Children, the East Asia Ministerial Forum on Families in Hanoi. Bringing together ministers responsible for family policy from ASEAN countries, China and Australia, the forum issued a ‘Hanoi Statement for Regional Cooperation on the Family’. The statement represents a regional commitment raising the profile of family policy and recognising its important contribution to social progress and stability in the region. It also provides a framework for cooperation over the medium- to long-term on research, policies and programs relating to families.

“I think the strong relationship between FaCS and Vietnam Social Security reached a new benchmark at the conference in Hanoi, especially with the discussions involving high- level officials and business people from both countries meeting face-to-face, many for the first time. Although our countries are different, we do have common challenges in the area of retirement incomes—that's how best to structure and manage our pension and retirement schemes into the future.”

— Alex Dolan (Seniors and Means Test Branch, National Office)

Valuing our people and implementing changeDuring the year, FaCS continued its commitment to valuing and developing its people, with new approaches to the graduate program, workforce and succession planning, change management, and the introduction of a staff recognition scheme.

In November 2003 the Secretary launched the department’s Compass program, which broadens graduate recruitment activities to include current staff as well as people without qualifications or experience who want to work at FaCS. Compass participants undertake an 18-month program of on- and off-the-job learning and development, networking and, for some, the chance to gain nationally recognised qualifications. Starting in February, this year’s Compass intake includes 16 university graduates, seven trainees and five FaCS staff.

The FaCS People Recognition Strategy was introduced in March 2004 to foster a culture of appreciation for the achievements of the people who work in FaCS. Encompassing arrangements for Australia Day medals and NAI DOC Week awards, the strategy also includes a new Recognise and Appreciate People Scheme (RAPS). Designed to say ‘thank you for a job well done’, RAPS acknowledges people’s outstanding contributions all year round, at the workplace level, and nationally by the Secretary.

Following the announcement of a FaCS restructure, the department took a consultative approach to managing change by setting up several cross-branch working groups to support implementation. By bringing in the ‘right people at the right time’ and using the FaCS project management framework, the focus was on communication and consultation throughout our department. By 1 July 2004 the department was well placed to implement the restructure at the

broader level, and managers and staff continued to get strong support for the changes needed at the workplace level.

In the area of workforce planning, FaCS continued to implement its strategies to build the department’s capacity to meet its future workforce needs. Stemming from this, in 2003-04 the department took the first steps in succession management planning. Endorsed by the Secretary in February 2004, the department’s approach is to create a succession pool of staff with the capacity and knowledge to take on critical functions if the need arises.

“Being in the Compass program is a wonderful introduction to the department. It’s a great way to find out about the work FaCS does. Because I’ll have four rotations over 18 months, I’ll get to work in a cross-section of areas. On top of the learning and development opportunities and the excellent support network, people are going ‘above and beyond’ to help me make a positive start to my new career.”

— Elizabeth Hardy (Compass participant, National Office)

Family and Community Services portfolio structureAt 30 June 2004, the Family and Community Services portfolio consisted of FaCS (incorporating the Child Support Agency), Centrelink and the Australian Institute of Family Studies (Figure 2). The resources needed to support the operations of the Social Security Appeals Tribunal are also provided through FaCS.

Figure 2 Portfolio structure at 30 June 2004

Department of Family and Community ServicesFaCS is the principal policy formulation and advising body in the portfolio. FaCS is responsible for:

putting in place the Government’s social support policies for families, working-age people and those who are retired

managing the delivery of a wide range of support services through thousands of provider organisations located across Australia.

The Child Support Agency (CSA), which is part of FaCS, promotes parental responsibility for the costs of raising children and provides services to help parents pay child support.

Social Security Appeals TribunalThe Social Security Appeals Tribunal (SSAT) is a statutory body created by the Social Security (Administration) Act 1999 to conduct merits review of administrative decisions made under a number of enactments, in particular the social security law and family assistance law.

The SSAT aims to provide a mechanism of review that is fair, just, economical, informal and quick.

Administrative arrangements of long standing exist between FaCS and the tribunal that allow the tribunal to benefit from FaCS’ infrastructure. Information on staff required to support the operations of the tribunal is included in this report, together with other relevant management information. Funding for the tribunal is included in the price of the department’s outputs.

In line with its reporting obligations under section 25 of Part 3 of Schedule 3 to the Social Security (Administration) Act, the Executive Director of the tribunal submits an annual report to the Minister for Family and Community Services, to be laid before each House of Parliament.

Portfolio agencies

CentrelinkCentrelink is a service delivery organisation, responsible for providing information, products and services to the Australian community. The Chairman of the Board of Centrelink must provide an annual report on Centrelink operations to the responsible minister, who is the Minister for Family and Community Services.

Australian Institute of Family StudiesThe Australian Institute of Family Studies (AIFS) is an independent statutory authority that promotes the identification and understanding of factors affecting marital and family stability in Australia. AIFS must submit an annual report to the Parliament.

Organisational structureFigure 3 shows FaCS’ structure at 30 June 2004, the responsibilities of FaCS senior executives, and the relationship between FaCS’ structure and the outcome and output structure.

FaCS’ organisational structure reflects its strategic themes, with responsibilities divided across strategic outcomes. The state and territory office network takes advantage of its specialist expertise and locational advantages to help FaCS achieve its outcomes.

Four key departmental outputs are produced across FaCS. Three outputs cover the policy and management of the delivery of the administered outputs to the community.

The service delivery output links directly to the administered outputs or items in each output group. The Child Support Agency was the main service delivery arm of FaCS in 2003-04. The remainder of the service delivery output is provided by Centrelink or other external organisations. CRS Australia continues to provide rehabilitation services for FaCS.

Figure 3 Organisational structure at 30 June 2004

Financial performance overviewFaCS’ financial statements, both departmental and administered, are in Volume two of this report. Each of the outcome summaries in Volume two contains a resource summary of our price for outputs and administered programs.

Changes in administrative arrangementsThere were no changes in FaCS’ administrative arrangements during the financial year. However, an Administrative Arrangements Order signed 24 June 2004 and effective from 1 July 2004 effectively transfers the administration of Aboriginal and Torres Strait Islander Commission (ATSIC) and Aboriginal and Torres Strait Islander Services (ATSIS) appropriations and programs to mainstream government departments, including FaCS. The financial effect of this transfer will be known following completion of a section 32 determination by the Finance Minister under the Financial Management and Accountability Act 1997.

Operating results

DepartmentalFaCS generated an operating surplus of $0.065 million in 2003-04 (in 2002-03 there was an operating deficit of $21.7 million). Figure 4 gives a comparison of departmental revenue and expenses from financial years 2000-01 to 2003-04.

Operating revenueTotal operating revenue was $2483.3 million (compared with $2381.1 million in 2002-03). Operating revenue consists of:

government appropriations of $2480.6 million

sale of goods and services revenue of $1.5 million

interest revenue of $0.014 million

other revenue of $1.1 million.

In comparison with 2002-03, government appropriations increased for delivery of income support services, while other revenue (including sale of assets) remained steady. Sale of goods and services revenue increased due to funding received for the Indigenous Flexible Funding Pool, and interest decreased substantially due to changes in banking arrangements for government departments from 1 July 2003.

Operating expensesTotal operating expenses were $2482.9 million ($2402.7 million in 2002-03). Operating expenses consist of:

employee expenses of $299.3 million

supplier expenses of $198.6 million

payments to other government agencies for service delivery of $1968.1 million

other expenses (including depreciation) of $17.0 million.

Operating expenses increased by 3 per cent over last financial year’s. This was attributable to pay increases within the department, an increase in payments to Centrelink for delivery of income support services, and an increase in depreciation due to revaluation of assets during the financial year. These increases were offset by a reduction in write-down of assets in 2003-04.

AdministeredFaCS administered programs of $65.2 billion in 2003-04 on behalf of the Government (in 2002-03 this figure was $57.7 billion). Table 1 contains a comparison of the breakdown of actual administered expenses in 2002-03 and the preceding financial year.

Personal benefits increased in 2003-04 due to new Budget measures on family payments announced in the federal Budget in May 2004. Personal benefits also included large increases in the Age Pension, Disability Support Pension and Carer Payment categories. Write-down of assets in 2002-03 included an abnormally high personal benefit debt write-off. In 2003-04, write-down of assets returned to a typical level.

Increases in other expenses related primarily to payments to rehabilitation providers of approximately $119 million.

Figure 4 Departmental revenue and expenses, 2000–01 to 2003–04

Table 1: Actual administered expenses, 2002-03 and 2003-04

2002-03 actual expenses$’000

2003-04 actual expenses$’000

Subsidies 11 705 13 081

Personal benefits 53 829 993 61517177

Grants 2 525 248 2 544 872

Suppliers 50 819 53 017

Write-down of assets 430 998 127 951

Interest 47 958 42 857

Other 753 795 893 546

Total administered expenses 57 650 516 65 192 501Figure 5 Administered expenses, 2000–01 to 2003–04

Balance sheet

DepartmentalNet asset positionThe department’s net asset position as at 30 June 2004 was $19.2 million (up from $10.7 million in 2003). This increase was due to:

an increase in the Asset Revaluation Reserve resulting from the revaluation of FaCS’ leasehold improvements

an equity injection of $0.9 million for capital acquisitions relating to recommendations under the Budget Estimates and Framework Review.

Total assetsTotal assets as at 30 June 2004 were $145.5 million (down from $161.6 million in 2003). Receivables were the primary driver for this reduction, decreasing by $15.6 million. All categories of departmental receivables decreased, with the majority of the decrease relating to receivables from Centrelink for adjustments under the Regional Funding Model and from the Official Public Account.

Cash balances remained steady at an agreed working capital level.

The value of land and buildings increased by approximately $6.8 million. This was due to a revaluation of FaCS’ leasehold improvements during the financial year.

Other non-financial assets, including prepayments to Centrelink, were substantially lower at 30 June 2004 compared with the previous year. The Centrelink prepayment recognises that at financial year-end, approximately $4.7 million had been paid to Centrelink, for which the services remained undelivered. These services are expected to be delivered during 2004-05.

Total liabilitiesTotal liabilities as at 30 June 2004 were $126.3 million (down from $150.9 million in 2003). All liabilities remained constant during the financial year, with the exception of other payables and other provisions.

Other provisions of $3.1 million relating to ‘make good’ requirements under lease contracts were recognised. Other payables reduced by $27.5 million. This was due to the recognition of appropriation payable to Finance in 2002-03 (nil in 2003-04).

AdministeredTotal administered assets were $2468.8 million (up from $2278.8 million in 2002-03; see Figure 7). This increase related to an increase in the receivable for personal benefits.

Total administered liabilities increased by $2402 million to $4803.7 million (up from $2401.7 million in 2002-03). This increase was due to new Budget measures on family payments announced in the federal Budget in May 2004. Loans under the Student Financial Supplement Scheme decreased by approximately $160 million due to the cessation of the scheme from 1 January 2004, with no new loans offered after that date.

Figure 6 Departmental assets and liabilities, 2000–01 to 2003–04

Figure 7 Administered assets and liabilities, 2000–01 to 2003–04

Child Support Agency—General Manager’s reviewThe Child Support Agency’s (CSA) job is to help separated parents take responsibility for the financial support of their children. CSA has a dedicated team of over 2500 people who work with 1.3 million separated parents to help about 1.1 million children.

Our strategic intent is to maximise parental self-reliance and independence to achieve the best outcomes for children. Our success in realising our intent is evident, with more than half of registered separated parents now paying child support privately, and more than $2.1 billion being transferred between parents in 2003-04. Since CSA was formed, more than 95 per cent of all assessed child support has been transferred for the benefit of children.

CSA operates as a semi-autonomous business unit within FaCS. We collaborate closely with a range of areas within FaCS, while differing from other core areas in that we provide direct services for parents, employers and the community. CSA is accountable to the Secretary of FaCS, the Parliamentary Secretary to the Minister for Family and Community Services, and the Minister for Children and Youth Affairs. As General Manager I am a member of the FaCS Executive Board.

Each year provides its challenges for CSA in managing the community’s Child Support Scheme. The year 2003-04 was no exception. CSA’s Business Plan provides our comprehensive change agenda but it is worthwhile to comment on our key focus areas for the year:

stemming the growth in gross maintenance debt and transferring more dollars for children at home and abroad

working closely with other areas of FaCS to provide evidence-based submissions to and appear before the House of Representatives Standing Committee on Family and Community Affairs’ inquiry into child custody arrangements

making connections across the community and across government to support parents through the difficulties at separation

improving our service to parents so they fully understand all the options available to them in meeting their child support obligations and are supported to act on them.

I am delighted with the progress we have made this year in each of our key focus areas.

Stemming debt and collecting more dollars for children at home and abroadGross maintenance debt grew by only $3.5 million in 2003-04 compared with an increase of $85.4 million in 2002-03. This resulted from an overall decrease in debt of $13 million associated with Australian cases and an increase in debt of $16.5 million in international cases.

This is a significant achievement, reflecting the increased efforts of all of CSA’s people, and particularly the targeting of outstanding debt provided through the Intensive Debt Collection (IDC) Budget Initiative. The latter has resulted in contact with 15 100 parents and the collection of an additional $19.3 million in child support payments for children as at 30 June 2004. The late payment penalty incentive offer has been highly successful, with 27 per cent of parents targeted agreeing to accept the offer and pay their child support debt.

CSA has also strengthened its working relationship with the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) in order to better facilitate the transfer of monies from our international customers. Hand in hand with this process has been the significant increase of international cases with very high debts, in particular from New Zealand. Unfortunately this growth has contributed considerably to offsetting the significant gains made over the last financial year in reducing domestic debt. CSA is currently in discussions with New Zealand Inland Revenue/Child Support on how best to deal with this issue. Some of the joint approaches include more effective scrutiny before transfers start and joint case management. Early results from these endeavours look promising.

Supporting ParliamentAs part of FaCS, CSA provided information and suggested improvements relating to the Child Support Scheme to the House of Representatives Standing Committee on Family and Community Affairs throughout its Inquiry into Child Custody Arrangements in the Event of Family Separation. Since the committee’s report was released in December 2003, CSA has participated in a FaCS working group analysing and responding to the short- and long-term recommendations of the inquiry. This will continue to be one of our priorities, and some advances, such as improved communications with parents, have already been made.

Making connections across the community and across governmentIn May 2004 we launched an exciting new workplace program called ‘Staying Connected’, which was developed in consultation with a NSW-based community organisation, Interrelate.

This program addresses the needs of separated parents (in particular, men) by providing them with practical tips and hints on how to stay connected with their children post-separation.

It deals with:

the importance of taking care of their own physical and emotional wellbeing

how to develop a businesslike relationship with the other parent

how to maintain positive relationships with their children post-separation.

The program has been enthusiastically piloted by the Australian Defence Force and Australia Post. Since the launch in Kalgoorlie, local mining industry groups have undertaken to implement this program. The successful pilots and positive response from the private sector are a sound endorsement of the ‘Staying Connected’ program that recognise its positive contribution to the organisations’ corporate bottom line as well as to the emotional and physical wellbeing of their workers.

Another successful pilot, implemented in May 2003 by CSA, is the Direct Telephone Support Service (DTSS), providing newly separated parents with referrals to appropriate counselling, legal, financial and other support services in the community. The referral service is designed to have a positive effect on supporting the physical and emotional wellbeing of separated parents. In the 2003-04 period, approximately 3323 parents were referred.

Some other initiatives that have been developed in response to research into the factors that contribute to voluntary payment of child support are:

The Newly Separated Unemployed Parents initiative (NSUP). This program aims to help increase the earning capacity and parenting skills of some 31 500 unemployed nonresident parents over a four-year-period. Initial consultation with a range of community, government and job network providers has been completed. Information resources and a dedicated telephone counselling service have been made available to these parents as a part of the first phase of this initiative.

The ‘Me and My’ series of self-help booklets is designed to address the financial and emotional needs of our parents, with a strong focus on children. This range has been expanded to include a revamped money management booklet, Me and My Money, and What about Me?, which deals with individual wellbeing post-separation. There are also plans to introduce two new booklets in 2004-05, which will address building a businesslike relationship with the other parent and managing issues related to re-partnering.

CSA’s continuing focus to improve services to parents and the communityIn addition to receiving feedback from parents and other direct sources, CSA this year embraced comments by the report on the Inquiry into Child Custody Arrangements in the Event of Family Separation — Every Picture Tells a Story. We have reviewed our communication with parents and will soon be launching revised products for newly separated parents. We have enthusiastically embraced the opportunity to enhance communication with Members of Parliament. We will continue our efforts next year.

Our annual Professionalism Survey was conducted with excellent results. This survey measures and tracks parents’ perceptions of the professionalism of CSA staff, a key corporate outcome in CSA’s Agency Agreement. This year I am pleased to report that we recorded significant improvements in all four components of our Professionalism Index, with the highest overall client satisfaction score since 1998.

CSA is also looking at innovative ways to evaluate our service standards with the introduction of a new national client satisfaction survey. An interactive voice recording system allows parents to confidentially provide feedback on how to improve our services. This client satisfaction measure is also aligned with our new Client Charter, which outlines our commitment to client service.

Into the futureCSA has plans for another busy year in 2004-05. We are continuing to focus on collecting outstanding child support and developing connections across the community and across government to provide holistic solutions for separated parents aimed at reducing conflict and focusing on the needs of children. We are developing infrastructure that supports future e-business solutions to enhance service options for parents.

CSA will ensure that any changes in legislation or recommendations that may result from the Government’s response to the parliamentary inquiry into child custody arrangements are implemented effectively.

In short, the CSA will continue to build on the strong foundations already established, promote the principles of parental self-reliance and adapt to the changing needs of the Australian community. We will continue to strive to be a world leader in child support and work tirelessly towards our vision that all Australian parents meet their child support responsibilities.

About Catherine ArgallCatherine Argall, PSM, is General Manager of the CSA within the Australian Government Department of Family and Community Services. Since joining CSA in 1996, Catherine has built a

leadership team and business development framework that are driving the transformation of what was once described as the most complained about agency in government.

Catherine was awarded the Public Service Medal in 1995 for outstanding service to public sector management as General Manager, Australian Property Group, and was further recognised last year as a recipient of the Centenary Medal.

Over a career of 30 years Catherine has served the Australian Government in positions spanning other departments including Finance, Veterans’ Affairs and Administrative Services.

“It is really satisfying to work in such a difficult and complex area of government administration with people who are not only highly skilled but also dedicated in making a difference to the lives of parents and children and building stronger families and community.”

Part 2 I Achievements and challenges performance insightsBuilding the evidence baseKey points Data collection for the Growing Up in Australia: Longitudinal Study of Australian Children

(LSAC) commenced.

Data from the second wave of the Household, Income and Labour Dynamics in Australia (HILDA) survey were released to more than 200 researchers and analysts.

Significant contributions were made to parliamentary committee inquiries on child custody arrangements and participation in paid work.

Social policy researchUnderstanding the social trends making an impact on Australian society, and finding evidence of the policies that work and why, are critical to FaCS’ policy advising and implementation. Social policy research supports the creation of this knowledge.

Research findings have deepened our understanding of key social policy issues and enriched our contribution to social policy debates. Key research outcomes in 2003-04 are outlined below.

Milestones in the development of our longitudinal initiatives In March 2004, data collection from 10 000 families of babies and four-year-olds across

Australia commenced as part of the first wave of the Longitudinal Study of Australian Children (LSAC).

In January 2004, the second wave of data from the Household, Income and Labour Dynamics in Australia (HILDA) survey was released, including new data on the wealth of Australian households and changes in household income over the twelve months between late 2001 and late 2002. The first wave of HILDA data was collected in the second half of 2001. The same people were interviewed again for the second wave of HILDA in late 2002.

The Longitudinal Study of Indigenous Children (LSIC) is being developed, including formation of a steering committee chaired by Professor Mick Dodson. Consultations with Aboriginal and Torres Strait Islander people and communities on the design and content of the study began across Australia.

A longitudinal administrative data set on workforce-age customers was created, with income support and jobseeker data, as part of the collaborative jobseeker data project jointly undertaken by FaCS and the Department of Employment and Workplace Relations (DEWR).

The complete three-year data set from our General Customer Survey (GCS) for respondents first interviewed in 2001 was released. The GCS is a longitudinal survey that has collected a broad range of information from three cohorts of respondents (those first interviewed in 2000, 2001 and 2002) constituting a representative sample of FaCS customers.

Early findings from FaCS’ investments in data Early longitudinal data analysis from HILDA showed that:

– around 70 per cent of people employed at some time in the 12 months between late 2001 and late 2002 were continuously employed with the same employer, while about one-quarter ceased at least one job during this period

– around 60 per cent of people in the lowest 10 per cent of the income scale (after-tax incomes) in 2001 moved above the lowest decile in 2002, while around 50 per cent of individuals in the highest 10 per cent of the income scale in 2001 moved below the highest decile in 2002

– the median level of household net worth in Australia is around $186 500 (comprising about $203 000 of assets minus about $17 000 of debts, including mortgages)

– the wealthiest 10 per cent of households own almost 45 per cent of total household wealth

– middle-aged working households hold more wealth than do younger households or retired households because they have had the opportunity to save for many years, have not yet retired and have not yet drawn down on their savings

– HILDA is informing FaCS’ understanding of wealth and debt in the community and people’s attitudes to wellbeing and participation.

Early data from the LSAC pilot test that questioned 500 families in Victoria, New South Wales and Queensland highlighted the diversity of information that will be provided by the study, including:

– around 96 per cent of parents rated their child’s health as being ‘good’, ‘very good’ or ‘excellent’

– around 96 per cent of four-year-olds are read to by someone in their family at least once a week, with 59 per cent reporting that this happened daily

– around 89 per cent of parents of four- year-olds who have educational or child care arrangements for their child reported satisfaction with these arrangements

– around 59 per cent of four-year-olds spend time with their grandparents weekly or more frequently.

The LSAC database is expected to become a major element of the evidence base for policy and practice regarding children and their families and will help inform the National Agenda for Early Childhood.

The FaCS Longitudinal Data Set (LDS) contains fortnightly data on FaCS income support and non-income support customers extracted from Centrelink operational databases. A study on part-time work using data from the LDS found that people who had earnings while they were on income support were more likely to move off income support altogether and less likely to return to income support once they had left the system.

Sharing of research and data As at June 2004, over 200 researchers and analysts were licensed to use the first and second

waves of HILDA survey data.

More than 40 research papers have been produced by Australian and international academics using HILDA data.

The Australian Conference of Economists in late 2003 devoted a session to research papers drawing on HILDA data.

The Globalisation, Families and Work conference, organised by Families Australia and held in early 2004, included a number of papers on work and family issues using HILDA data.

Research collaborations FaCS currently has four-year Social Policy Research Services (SPRS) agreements with three

university research institutions to provide ongoing, independent and high- quality social policy research. The institutions are the Social Policy Evaluation, Analysis and Research (SPEAR) Centre at the Australian National University, the Social Policy Research Centre (SPRC) at the University of New South Wales, and the Melbourne Institute of Applied Economic and Social Research at the University of Melbourne. In late 2003, FaCS commenced a tender process for the 2005-09 SPRS funding round.

FaCS is an industry partner with the Australian Institute of Family Studies (AIFS) and SPEAR in an Australian Research Council (ARC) Linkage Grant project investigating the dynamics of low incomes, welfare reliance and changes in the family structure of parents with dependent children.

FaCS is a major industry partner with SPEAR, Centrelink, the University of Melbourne and the University of Wisconsin in a five-year ARC Linkage Grant research initiative, which is expected to shed new light on the causes and patterns of intergenerational welfare dependence in the Australian community.

FaCS has continued its partnership with state and territory governments on youth-specific research through its contribution to, and active participation in, the National Youth Affairs Research Scheme, which has been in operation for almost twenty years. In 2003-04, four projects were in train and three new studies were commissioned.

Evaluation work The evaluation of the Australians Working Together (AWT) package, which is currently under

way, will broadly assess the impact of AWT on the main target groups-mature-age, parents, people with disabilities and Indigenous customers. The evaluation will also assess the effectiveness of specific measures introduced as part of the AWT package and aims to provide evidence for further policy development as part of the welfare reform process.

The evaluation of the case-based funding trial has been used to develop a package of measures to improve employment services for people with disabilities.

Building on previous workResearch being produced by SPEAR is using the first and second waves of HI LDA to assess the impact of social participation on economic activities and personal outcomes for recipients of income support. This work is building on the analysis and results of similar research using data from the Welfare Reform Pilots.

Contributions to parliamentary committees and inquiriesThe department has continued to make significant contributions to parliamentary committees through the committee inquiry process. A number of inquiries into aspects of Australia’s social policy were undertaken during 2003-04 and FaCS was pleased to be able to participate in this process. As the key Australian Government agency responsible for shaping social policies, FaCS is able to draw on a large body of expertise in providing assistance and information to parliamentary committees.

In 2002-03, FaCS contributed to a number of committee inquiries, including:

the House of Representatives Standing Committee on Ageing Inquiry into Long Term Strategies to Address the Ageing of the Australian Population over the Next 40 Years

the Senate Standing Committee on Community Affairs Inquiry into Poverty and Financial Hardship

the Joint Committee on Corporations and Financial Services Inquiry into the Level of Banking and Financial Services in Rural, Regional and Remote Areas of Australia.

Furthermore, we were commended for our input into the House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs Inquiry into Capacity Building in Indigenous Communities.

This year’s work has focused on submissions to the following committee inquiries:

House of Representatives Standing Committee on Family and Community Affairs Inquiry into Child Custody Arrangements in the Event of Family Separation FaCS contributed a number of detailed and extensive submissions to this inquiry, and appeared before the committee to give further evidence on a number of occasions. FaCS’ submissions focused on providing the committee with an understanding of the complexity and dynamic nature of contemporary Australian families; the range of family relationships services available to families and children with relationship difficulties; and information about policy issues and administration of the Child Support Scheme.

House of Representatives Standing Committee on Employment and Workplace Relations Inquiry into Employment: Increasing Participation in Paid Work FaCS is strongly committed to increasing participation in paid work because of the positive impact that employment has on the wellbeing of individuals and families. Not only does paid work contribute to family and retirement income and help protect against financial hardship, but children generally have better outcomes if their parents work. The FaCS submission described some key social and labour market trends, which show that there is considerable scope for increasing the participation levels of people on income support. It then discussed the role FaCS plays in supporting participation across the life cycle through programs aimed at building capacity at the individual, family and community level. Finally, the submission surveyed evidence that shows that the most effective way to increase participation is by effectively balancing appropriate assistance, incentives and requirements.

FaCS contributed to other inquiries during 2003-04. Further detail is in Volume two, Part two, ‘Ministerial and parliamentary services’.

PartnershipsKey points The National Community Business Partnerships Brokerage Service was launched to help

promote partnerships between, and offer practical resources to, businesses and community groups.

The Prime Minister’s Community Business Partnership, supported by FaCS, continues to encourage fruitful collaboration between the community sector, the business sector and government.

The Prime Minister’s Awards for Excellence in Community Business Partnerships, held annually since 1999, recognise the joint contributions of business and community to projects addressing community concerns.

While there is no single model or design for strengthening communities, the enduring approaches appear to be those tailored to local circumstances. Partnerships between communities, government, business and nongovernment organisations can be effective in developing local solutions, and in creating lasting benefit for local communities.

Business, for example, has long recognised the benefits of linking its reputation to what it is doing environmentally and socially. Community organisations find that partnerships with governments and business are helping to develop stronger and more dynamic approaches to meeting the needs of their community.

National Community Business Partnerships Brokerage ServiceLaunched in December 2003 by the Prime Minister, the National Community Business Partnerships Brokerage Service is an initiative of the Prime Minister’s Community Business Partnership. It targets community groups and businesses that want to connect, make a difference in their community and find out more about forming a partnership. The contract to deliver this service was awarded to Our Community Pty Ltd and its partners, the Municipal Association of Victoria and the Australian Chamber of Commerce and Industry.

The brokerage service is a key tool for promoting and facilitating collaboration between small- to medium-sized businesses and community groups. Major features include an online matching service, a brokerage resource kit, and a regional seminar series. The service is designed to be a national, long-term approach to bringing the community and business sectors together to make our communities stronger, and is creating much interest already. The Government is providing seed funding but the service is to be self-sufficient in future years.

Cape York Family Income Management projectAn example of partnerships in action is the Cape York Family Income Management project that helps Indigenous communities to improve their financial management. The project involves participation from the community, Cape York Partnerships, Australian Government agencies, and Westpac (for more information please refer to page 45).

Prime Minister’s Awards for Excellence in Community Business PartnershipsThe Prime Minister’s Awards for Excellence in Community Business Partnerships are another initiative of the Prime Minister’s Community Business Partnership. They recognise the joint contributions of business and community to projects addressing community concerns, and raise awareness of the many businesses contributing to the social and economic wellbeing of the communities in which they operate. FaCS provides secretariat support for the awards.

The awards, held annually since 1999, show a steady increase in the number and quality of nominations each year. The 2003 awards were the most successful to date, with a record 306 nominations from all parts of Australia. The high quality of the nominations led the judges to give a number of judges’ encouragement awards in addition to the state, territory and national awards. The Prime Minister presented the national awards at a gala dinner in Sydney on 17 December 2003.

The 2003 five national winners in each category were as follows:

Small Business: Blackwood Centre for Adolescent Development and the Centre for Executive Development, Royal Sun AllianceThe Blackwood Adolescent Centre, Victoria offers an alternative secondary school program for young people at risk. For many years it struggled for funding but through its partnership with the Executive Development Centre and Royal Sun Alliance, Blackwood has been able to secure financial support and improve the professional expertise of staff. Blackwood is now offering education programs that have been recognised as models of excellence.

Medium Business: Blackwood Waterwatch Program and WA Plantation Resources

This Western Australian partnership supports a broad-based community program involving schools, environmental groups and community organisations in monitoring the water quality in the Blackwood River catchment area and raising awareness of environmental issues relating to the area. The program covers an area of 30 000 square kilometres.

Large Business: Ngarda Ngarli Yarndu Foundation and Henry Walker Eltin, Indigenous Business AustraliaThis Western Australian partnership has created a business, Ngarda Civil and Mining, which aims to provide cost-effective contracting services to the mining and construction industries in conjunction with a dedicated employment and training program for the integration of Indigenous people with all its operations.

Special Award, Impact on a Community: BHP BillitonIn 2000 BHP Billiton adopted a new Community Programs Strategy to deliver sustainable long-term community benefits. The business moved away from supporting numerous one-off projects and instead decided to form significant long-term partnerships that address issues of mutual interest to the company and its community partners. Since that time BHP has worked with Conservation Volunteers, the School of Volunteer Management, the Smith Family with its Learning for Life program, the Foundation for Young Australians and the Bell Shakespeare Company.

Special Award, Longevity: Greening Australia and Alcoa World AluminaSince this partnership began in 1982, it has brought to fruition a range of initiatives that support the sustainable management of Australia’s land and water resources. Outcomes have included provision of practical tools for environmental restoration, improved seed supply for revegetation, and extensive and ongoing environmental education.

The five national winners in the 2003 Prime Minister’s Awards for Excellence in Community Business Partnerships represent the diversity of community business partnerships operating across Australia. Further information about each partnership and the state and territory award winners can be found on the Prime Minister’s Community Business Partnership web site at www.partnerships.gov.au.

International partnershipsMinister Kay Patterson opened the Australia- Vietnam Sectoral Conference on Retirement Incomes in Hanoi on 26 April 2004. The conference, which was held from 26 to 28 April 2004, was attended by a delegation from various government and private sector agencies in Australia. The conference stimulated useful discussions among participants on issues relating to the reform of pension systems and established a network for Australian and Vietnamese private sector agencies.

VolunteeringKey points The FaCS suite of volunteering support programs trains, supports and refers around 19 000

volunteers annually.

Voluntary work builds capacity for individuals to participate, and strengthens community capacity.

Around 4000 organisations that support the volunteering effort received small equipment grants in 2003–04.

Volunteers make a significant contribution to Australian communities and are supported through the FaCS portfolio in a number of ways. The FaCS suite of programs provides training, placement support, opportunities to use volunteering as a stepping stone to paid work, opportunities to fulfil

mutual obligation commitments through volunteering, and practical assistance through small equipment grants.

The Volunteer Management Program supports organisations by providing appropriate training for volunteers and volunteer managers. The Voluntary Work Initiative (VWI) helps income support recipients fulfil their obligations through voluntary work that builds their capacity to participate, and the capacity of their communities.

Both programs continued to provide valuable support to the volunteer sector in Australia, and to make an important contribution to the Australians Working Together initiative. This was evidenced in the Government’s commitment of funding of $7.3 million over four years for VWI in the 2004-05 Budget, following a review of the programs in late 2002.

The Volunteer Small Equipment Grants program (VSEG) continued to provide an important boost for community organisations that support volunteers. The program provides grants of up to $5000 to help community organisations purchase equipment that will make the work of their volunteers easier, safer and more enjoyable. There have been six grant rounds since 2001, the International Year of Volunteers. Since 2001 the Government has provided around $20 million to over 10 000 volunteer community organisations.

making a difference

Katanning Breakfast Club (Western Australia) One of the organisations to receive funding under the fi rst round of VSEG in 2003–04 was the Katanning Breakfast Club in Katanning, Western Australia. The club provides a nutritional daily breakfast to children whose families are unable to provide this necessity at home.

Before receiving the grant, the club’s volunteers were providing breakfast to 20 to 25 children each morning with a couple of very old two-slice toasters. They are now able to purchase two new four-slice toasters to make the jobs of their 15 to 20 volunteers easier and safer.

The breakfast club provides an incentive for disadvantaged children to attend school by providing them with breakfast. After the children have eaten, not only are they attending school but they also have higher concentration levels. With reduced truancy rates, the incidence of juvenile crime is lowered.

Indigenous communitiesKey points Financial management projects in Indigenous communities are helping families to build

financial literacy, increase their purchasing power and improve living standards.

Twelve Remote Area Service Centres (RASCs) are being progressively established in Indigenous communities across Australia-just one example of the Australian Government’s commitment to improve access to programs and services for Indigenous Australians in rural and remote areas.

While most FaCS customers, like many Australians, live in cities, our most disadvantaged are Indigenous people living in remote locations. Over 25 per cent of Indigenous people live in remote areas compared to only two per cent of other Australians. Australia’s Indigenous population is currently increasing at a rate twice that of the general population. High birth rates in many remote communities see their populations increasing at rates above 5 per cent a year. The implications for our work are significant. For example, in the next ten years in a typical remote region it is projected that there will be at least 30 per cent more working-age people in a population that is currently highly dependent on welfare.

FaCS’ Statement of Commitment to Aboriginal and Torres Strait Islander People provides an integrated and comprehensive approach to improving outcomes for Indigenous people. FaCS has adopted the motto ‘Indigenous business is everybody’s business’-our pledge to tackle the entrenched social and economic disadvantages experienced by many Indigenous Australians.

The statement commits FaCS to doing things differently. In particular, it recognises the need for a more collaborative approach. FaCS and key stakeholders-both within and outside the organisation-need to combine energies, expertise and resources to build on existing strengths, assets and capacities and forge partnerships that help solve the complex problems facing many Indigenous people. These important partnerships will help FaCS develop policies and deliver services that better meet the needs of all Indigenous people. The recent transfer of ATSIS functions to FaCS, including the FaCS presence in Indigenous Coordination Centres around Australia, will require ongoing commitment to collaboration and partnership with Indigenous communities.

FaCS not only administers a number of Indigenous-specific programs but also keeps a focus within mainstream programs on Indigenous services and projects that support communities, families, young people and children. For example, each of the following initiatives funds a number of Indigenous-focused projects:

the Stronger Families and Communities Strategy

the Family and Community Networks Initiative

the Reconnect program

the Child Abuse Prevention Program

the National Disability Advocacy Program

the National Illicit Drugs Strategy.

In 2003-04 FaCS, in close consultation with Indigenous people, communities and organisations, commenced management of the Longitudinal Study of Indigenous Children.

This study will help us better understand the links between early childhood experiences and outcomes in later life for Indigenous children.

FaCS continues to fund the Centre for Aboriginal Economic Policy Research (CAEPR) at the Australian National University. The centre is building a significant evidence base that will assist FaCS in its future policy development and advising role.

New measures under the Australians Working Together package, such as the Community Participation Agreements initiative, Remote Area Service Centres, Personal Support Programme and Personal Adviser service, are also benefiting Indigenous people.

making a difference

Family Income Management projects— improving Indigenous financial literacy and money managementA significant action research project has been operating in three communities in Cape York, northern Queensland, since mid-2002. The project has focused on improving living standards and family functioning by helping Indigenous families in Aurukun, Coen and Mossman Gorge budget and save.

The Cape York Family Income Management (FIM) project was designed by Indigenous people to build financial literacy, stabilise family functioning, improve living standards and contribute to economic development in a culturally sensitive and practical way. The project is overseen by a

working group comprising representatives from the community, Australian Government agencies, Westpac and Cape York Partnerships. Westpac employees work alongside fi nancial management workers for one month every quarter.

Outcomes to date have been so positive that the Government committed an additional $1.5 million in 2003–04 to increase the number of participating sites in Cape York and to establish a similar project in Wadeye, Northern Territory. The Office of the Status of Women, the Department of Health and Ageing, the Department of Education, Science and Training and the Department of Employment and Workplace Relations have also contributed to this funding commitment.

The following feedback from families, highlighted in Australian Institute of Family Studies reports of August 2003 and May 2004, shows how Financial Income Management projects are helping Indigenous communities:

‘FIM has made me want to come to work for tourism and rangers and to teach the little ones ourculture and stories.’ (man, 40+ yrs)

‘Kids are coming to school more regularly, happier and have lunch so have better health.’ (teacher)

‘I am saving $30 per week in a family account with my mother, sister, brothers and uncles for our outstation. We want to build a house on the outstation, buy a generator, boat and truck to take us there. I am also saving $30 per week in my own account to buy DVDs, etc.’ (woman, 16–21 yrs)

‘My family are comfortable with my involvement in FIM. My relationship with my daughter has improved and the $10 per week I provide for her (in school education account) makes it better forher at school.’ (man, 22–40 yrs)

‘Definitely much happier and better because I’m participating. Family life is easier (since I) started the family on FIM.’ (woman, 16–21 yrs)

Workers in each site help families negotiate budget and savings agreements, set up direct deductions from accounts and provide bill-paying and purchasing assistance. Outcomes include debt reduction and debt management, better coverage of essential living costs, increased spending on food and reduced spending on alcohol and gambling, reduction in stress and conflict, and the ability to purchase whitegoods, furniture, TVs, videos and other household items.

Some participants have also purchased cars and boats, and set up small businesses. Arrangements with local stores, schools and pharmacies facilitate payment for food, education costs and medications. Financial Income Management is also increasing motivation to work or study as people can see material results for their effort, and there is a general change in orientation from daily survival to long-term planning. Building consumer capacity is contributing to the viability of local enterprises as FIM participants can purchase locally produced goods.

The Government announced in the 2004–05 Budget that $4 million in additional funding would be provided to establish similar programs in other sites.

Stronger Families and Communities StrategyKey points Almost 700 local projects were funded under the Stronger Families and Communities Strategy

over the financial years 2000-01 to 2003-04.

Projects provided support for early childhood, parenting and relationship skills, mentoring and leadership, community capacity building and volunteering.

Almost a quarter of the projects were delivered in Indigenous communities and more than a half in rural and remote communities.

A new four-year strategy was launched in April 2004.

The Stronger Families and Communities Strategy (SFCS) aims to help build family and community capacity to deal with challenges and take advantage of opportunities that come along. Its focus on early intervention and prevention aims to help families and communities deal with issues before they become serious problems. The strategy gives communities the chance to think about local issues and what solutions they can put in place to deal with them.

Over the financial years 2000-01 to 2003-04, the strategy:

assisted more than 35 000 family members through more than 1600 networks that connect disadvantaged families more effectively with their communities

supported almost 700 services and projects, assisting at least 13 000 people through services such as home visits for at-risk and isolated families, and parenting and life skills courses for vulnerable teenage parents and Indigenous parents.

On 7 April 2004, the Prime Minister announced funding of $365.8 million over four years for a new SFCS. The new strategy will build on the achievements of the initial strategy by focusing more strongly on early childhood, linking to the National Agenda for Early Childhood and offering a swifter funding process. The funding has been allocated to four streams of activity over the next four years to 2008:

Communities for Children ($110 million): Non-government organisations will work with local stakeholders to deliver early childhood development programs and services in up to 35 disadvantaged communities.

Early Childhood — Invest to Grow ($70.5 million): Programs, resources and tools will be developed for parents, community groups and professionals working in the area of early childhood.

Local Answers ($60 million): Organisations will receive funding and support to develop a range of small-scale local initiatives, focusing on opportunities that communities can create for themselves.

Choice and Flexibility in Child Care ($125.3 million): The funding will support innovative and flexible child care arrangements, expand in-home care to help families with no other child care options and provide incentives to establish long day care in areas of high demand.

Communities for Children will use a new service delivery model, designed to help communities identify their needs and develop appropriate responses. Non-government organisations will be funded to facilitate collaborative partnerships with other relevant stakeholders across the community, develop and deliver coordinated and responsive community action plans, and undertake comprehensive evaluations. This new approach uses local knowledge to determine priorities and achieve agreed outcomes.

making a differenceEnfi eld Primary School Café (Children and Families Everywhere), Enfield, South AustraliaThe Enfield area has been identified as one of the most disadvantaged areas in South Australia, with high numbers of single-parent, low-income families, Indigenous and culturally diverse communities. Many families live in a ‘cycle of crisis’ with a range of complex issues and often experience isolation from their wider community.

Research shows that disadvantaged children and families benefi t from integrated service delivery and this support is most effective when it starts at the earliest point in a child’s life.

Enfield has created an environment where families can safely come together in their chosen activities or to have a coffee and a chat. It has helped create strengths within the community. From the parent support groups to community consultations, Café Enfield has become a vital support for local families. The project has been funded by the Stronger Families and Communities Strategy for three years, beginning in 2001.

The Enfield Early Learning Service will receive $200 000 over the next two years for an extension of the Café project. This funding will enable the continuation of a child development and parenting centre in Enfi eld that provides opportunities for young children and their families in the surrounding areas to maximise their potential.

The project will achieve its ends through the use of a central place where services can be provided and where families can get together to identify their needs and develop possible solutions. A range of early childhood and parenting programs, community activities and children’s activities will also be provided.

The project will rely on volunteer participation and community consultations that respond to community need. Integrated service delivery will enable families to get complete help and access to health, education and community services.

The project has been designed to facilitate the establishment of a new model for family centres that is underpinned by integrated services and community involvement. It focuses on early intervention strategies in the areas of education, health and care for families with children from infants to 12-year-olds. It also focuses on community empowerment through the families themselves deciding on the activities and supports they need in order to sustain a positive lifestyle.

More help for familiesKey points In its 2004-05 Budget, the Government announced the More Help for Families package of

$19.2 billion over five years—the largest-ever single Budget initiative for families.

In the lead-up to the Budget, FaCS was instrumental in providing developed and fully costed options to government.

Thanks to extensive cross-government collaboration, and in a challenging timeframe, FaCS and Centrelink established clear business requirements for computer system changes and necessary interactions with the Tax Office.

Over the last financial year, FaCS provided considered and comprehensive policy advice to government on family assistance, first through the Work and Family Taskforce chaired by the Department of the Prime Minister and Cabinet, and then, given our shared responsibility for the Family Tax Benefit (FTB) program, in joint work with the Department of the Treasury.

FaCS was instrumental in providing developed and fully costed options to the Government, which then announced the largest-ever single Budget initiative for families—$19.2 billion over five years.

FaCS was then called upon to deliver multibillion dollar program changes, working with other Australian Government agencies within a very tight timeframe, so families could benefit from these changes as soon as possible.

The Government was able to introduce legislation the day after the Budget speech, on the evening of Tuesday 11 May 2004, which was passed through the Parliament later that week. FaCS and Centrelink established clear business requirements for computer system changes and necessary interactions with the Tax Office. This enabled many one-off payments to be made to Family Tax Benefit Part A customers before the end of June 2004. Changes to the structure of Family Tax Benefit Part A and Family Tax Benefit Part B were also put in place, along with introduction of the new Maternity Payment from 1 July 2004—less than 45 days after the Budget announcement.

Meanwhile, families were being informed of the changes through a range of communication approaches.

This has been a clear example of extensive cross-government collaboration, particularly between FaCS, the Department of the Treasury, Centrelink and the Tax Office, and FaCS is proud to have played a major role in implementing such a major set of initiatives in the challenging timeframe set by the Government.

Further work will be required in 2004-05 to continue implementing a number of changes, and FaCS will continue to manage this process effectively.

The More Help for Families package helps families raise their children, helps them balance their work and family responsibilities and improves the rewards from work. It includes:

a $600 one-off per child payment for FTB Part A and for other eligible children, paid to most families before 30 June 2004

a $1000 one-off payment for Carer Payment recipients and a one-off $600 payment for Carer Allowance recipients paid for each care receiver

a universal Maternity Payment of $3000, which will be introduced from 1 July 2004, increasing to $4000 from July 2006 and $5000 from July 2008

an ongoing increase in the rate of FTB Part A of $600 per child, which will be available as a lump sum after tax returns are lodged

a reduction in the main FTB Part A taper rate and the FTB Part B taper rate from 30 cents in the dollar to 20 cents, to allow families to keep more assistance as their income increases

an increase in the FTB Part B income threshold so that second earners in a couple can earn $4000 per year before their FTB Part B starts to reduce (up from the current threshold of $1825 per year)

from 1 July 2005 when parents return to work after caring for a child, the FTB Part B they received during the financial year in which they return to work will not be affected by the FTB income test, no matter how much they earn afterwards.

Helping prevent homelessnessKey points The Family Homelessness Prevention and Early Intervention Pilot scheme has assisted more

than 320 families (1100 customers) in eight communities across Australia.

Seventy-eight per cent of families achieved an improved outcome in one or more of the following areas: financial situation; health; family relationships; personal skills; and community participation.

Participating services operated in partnership with their local Centrelink office.

From 1 July 2004 the program will operate as the Household Organisational Management Expenses (HOME) advice program, with funding of $10.4 million over four years in the 2004-05 Budget.

Housing is a basic need. Well-located affordable housing can provide stability for families and promote their independence and good health. Housing provides a base from which people can pursue employment opportunities and participate more fully in their communities.

Homelessness rarely has a single cause-people usually become homeless when they are unable to deal with a range of issues impacting on them. The Family Homelessness Prevention and Early Intervention Pilot (FHPEIP) scheme was introduced in 2001 to help families struggling to maintain their tenancies or home ownership and to address issues contributing to their instability.

Not-for-profit organisations received funding in 2003-04 to assist families with issues such as budgeting, family relationship matters, parenting skills and social security or public housing debt. They also assisted with links to education and training to address barriers to workforce participation.

Where necessary, families were referred to other services in the community, but case-managed by the FHPEIP service. This approach helped to build links between various community services working to assist people and families at risk of homelessness.

An innovative aspect of the FHPEIP was that participating services operated in partnership with their local Centrelink office. A Centrelink social worker referred families to the FHPEIP and continued to assist them during their participation in the program.

In 2003-04 an interim evaluation of the pilot revealed very strong outcomes for participating families:

Ninety per cent of families stayed in their homes or were rehoused.

Seventy-eight per cent of families also achieved an improved outcome in one or more of the following areas: financial situation; health; family relationships; personal skills; and community participation.

More than half of all adults who identified employment or education as key goals were successful in meeting those goals. Those in employment rose from 14 per cent to 22 per cent after receiving support, while participation in part-time education rose from 4.5 per cent to 10 per cent.

The pilot demonstrated the Government’s commitment to develop and fund programs that address the needs of Indigenous people. Of customers accessing the program, 32 per cent were Indigenous customers.

By May 2004, more than 320 families (1100 customers) had been assisted under the pilot program in eight communities across Australia.

The Australian Government committed further funding of $10.4 million over four years in the 2004-05 Budget to continue this work. From 1 July 2004 the program will operate as the Household Organisational Management Expenses (HOME) advice program.

making a differenceSimon’s story‘Simon’ became a sole parent three years ago. For single parents, life can be tough at the best of times but it has felt even tougher for ‘Simon’—a single dad trying to raise 10-year old ‘Sally’. There were the endless bills to pay, which made ‘Simon’ feel anxious, always wondering how he would make ends meet. He started to lose his confi dence and became self-conscious. With a 15-year waiting list for Department of Housing accommodation at Wyong on the NSW Central Coast, there was a great risk of ‘Simon’ and ‘Sally’ becoming homeless because ‘Simon’ was having trouble paying the rent.

But six months ago, life took a dramatic turn for ‘Simon’ when he was referred to a FaCS-funded service through a social worker at Centrelink. The pilot program, Habitat, supports and builds the competencies of families at risk of homelessness in the Wyong Shire of New South Wales.

A number of agencies in the region work closely together to identify people who are at risk of homelessness. Referrals can come from Centrelink, the Central Coast Tenancy Advocacy Advisory Service, Wyong Hospital, Coastal Community Tenancy, NSW Department of Community

Services, Child Abuse Prevention Service, Aboriginal Advisor Group, Men’s Advocacy and Practical Strategies or mental health services.

A Habitat caseworker visits ‘Simon’ each fortnight. ‘Simon’ has said that having someone to speak to about parenting and behavioural issues has really helped. The caseworker has also helped ‘Simon’ with his budget and linked him with other services to make life easier. The caseworker has been able to give him the advice and support he needs to keep on track and ‘Simon’ has really opened up. Many services focus on single mothers, so ‘Simon’ found it helpful to access a service that wants to engage equally with single fathers.

FaCS funds the Wyong Habitat program, which is run by the Uniting Care Burnside, Central Coast office. There is a similar pilot running in each state or territory. Each delivers services including family mediation, counselling, information giving and referral. The service strengthens families by helping them to develop their capabilities and strengthen their relationships. There is a focus on building support networks and establishing links between families and local services.

Giving children the best possible start in lifeKey points The National Agenda for Early Childhood and its four key action areas will provide the

overarching structure to guide future Australian Government investment to improve outcomes for children and will serve as the vehicle for collaboration with state and territory governments in supporting young children and their families.

The Stronger Families and Communities Strategy for 2004-08 will have a specific focus on early childhood and is aligned with the National Agenda for Early Childhood’s four key action areas.

Early childhood is a time of rapid physical, intellectual and emotional growth and provides an important window of opportunity to help start children on positive pathways in life. How we as a society respond to the needs of young children can have a profound impact on their development, both now and into the future. This in turn has consequences for the economic and social growth of Australia as a whole.

The Government is committed to the development of a National Agenda for Early Childhood, to provide a structure for linking together and expanding the work that is being done by many people throughout Australia to improve the lives of young children.

Key messages emerging from extensive consultations held between March and August 2003 are summarised in the report Towards a National Agenda for Early Childhood—What You Told Us released on 25 October 2003. These included widespread support for:

adopting a national approach to early childhood

improving the way services are delivered

assisting disadvantaged children

supporting parents in their primary role during a child’s early years.

Relevant ministerial councils and their advisory bodies have been kept informed of progress under the National Agenda for Early Childhood. The framework document, which has been revised in light of consultation feedback, identifies four key action areas:

healthy young families

early learning and care

supporting families and parenting

child-friendly communities.

This framework will be the basis for further discussions with state and territory governments with a view to agreeing on priorities for working together.

In developing the national agenda and coordinated early childhood policy, FaCS has been working closely with other departments, through the Australian Government Taskforce on Child Development, Health and Wellbeing, established in September 2001.

During 2003-04, the national agenda has been a focus for a number of activities within FaCS. Significantly, the next four-year phase of the $365.8 million Stronger Families and Communities Strategy 2004-08 will have a specific focus on prevention and early intervention activities to promote optimal childhood development.

In addition, substantial progress has been made in a number of early childhood initiatives, announced in May 2004 as part of $10 million in funding allocated from the first phase of the Stronger Families and Communities Strategy. This includes the establishment of 19 Child Care Links sites across Australia, which will integrate early childhood services in areas of high disadvantage, and completion of a report available to all governments and the community sector to inform the provision of parenting information and support.

Complementary activities included:

funding for an Australian Early Childhood Development Instrument, a measure of child development before school entry, for use at the community level, announced by Minister Anthony in January 2004

working closely with other portfolios in organising a national workshop, held in March 2004 and hosted by the Australian Council for Children and Parenting, to explore options for better monitoring how children are faring.

The new Child Care Support ProgramKey points A new Child Care Support Program was launched in June 2004.

The program includes new measures to ensure access to quality child care for all children, whatever their circumstances.

In September 2002, the Minister for Children and Youth Affairs, the Hon. Larry Anthony, MP, announced a consultative redevelopment of what was then known as the Child Care Support Broadband.

Community Link Australia was contracted to undertake national consultations to inform the redevelopment. More than 1200 people attended consultation meetings and some 560 written contributions were received. The report prepared by Community Link Australia identified a number of gaps in child care provision, particularly for families in rural and remote Australia, children with disabilities, Indigenous families, and families from diverse backgrounds.

On 2 June 2004, Minister Anthony announced the outcomes of the redevelopment and launched the new Child Care Support Program. The new program has clear objectives and principles to ensure resources are used efficiently to benefit families and children. Funding arrangements have been simplified, are better targeted and transparent, and there is an improved focus on providing access to quality child care for all children, regardless of their circumstances.

Funding under the program is targeted to support child care services, particularly in high-need rural, regional and Indigenous communities, and to ensure that children with additional needs can be provided with quality child care. The result will be improved outcomes for families and children who access child care services funded by the Australian Government.

Following the redevelopment there has been an overall increase of $25 million in funding for child care support, bringing the total funding for the new Child Care Support Program to $226 million for 2004-05.

The new program will start to be implemented from 1 July 2004, together with increased hourly rates for inclusion support workers. Other changes will take effect over the following 18 months, and the new Child Care Support Program will be fully implemented by 1 January 2006.

The successful redevelopment has been largely due to the enormous contribution to the consultations by child care services, families and individuals with an interest in child care. FaCS acknowledges the assistance of all those people within the child care sector who shared their time and knowledge during this process.

making a differenceSpotlight on Indigenous child care supportChild care services may not always be set up to meet the needs of Indigenous children and families.As part of recognising and supporting these special needs, FaCS manages a range of child care service initiatives specifi cally for Indigenous people. These include:

Multifunctional Aboriginal Children’s Services (MACS)

Indigenous playgroups

enrichment programs

before school, after school, outside school hours care and vacation care services

toy library services

flexible Indigenous services.

Profiles of two successful flexible Indigenous services—one from the bush and one from the city

GALIWIN’KU CHILD CARE CENTREThe Galiwin’ku Child Care Centre in the Northern Territory has been operating successfully since April 2000. It is one of eleven innovative children’s services established in Indigenous communities in the territory. The centre is funded by FaCS and Territory Health Services and cares for up to 30 children a day. It is fully staffed by people from the community and many have successfully completed Certificate 3 in Early Childhood through Batchelor Indigenous Institute of Technology and Education.

Dawn Casey, Assistant Secretary, Child Care Services Branch, says, ‘Galiwin’ku is successful because it is “owned” and managed by the community. The childcare provided has been specifically designed to meet their cultural needs. It provides a mixture of Yolngu and Balanda (whitefella) activities for the children who attend. The focus of the service is on all children who live in the community and as a result, strong links with other services have also been formed’.

YAPPERA MULTIFUNCTIONAL ABORIGINAL CHILDREN’S SERVICE (MACS), MELBOURNE, VICTORIAYappera is a Multifunctional Aboriginal Children’s Service located in Thornbury, an urban area in Melbourne. It assists Koori families in the surrounding area and cares for up to 35 children a day. Non-Koori children can attend the service but Koori children are the priority.

Yappera was developed in the early 1980s. It is run by an all-Koori committee of management and has between 20 and 30 staff, most of them Indigenous. The service has completed a planning process to develop a five-year plan for services to children and parents. The vision for Yappera is one that is not only about caring for the children, but also includes the parents—for example, by offering education programs after hours.

‘Yappera promotes a philosophy of strengthening culture. The service takes the children on cultural and bush excursions and also teaches how to give non-Koori children an understanding of Koori culture. In addition to the provision of child care services, the centre also provides a range of additional services for the children including dental care, immunisation, eye and ear tests. Parents are put in touch with other services such as housing, health, neonatal care and with each other,’ says Dawn.

making a differenceCreative local approaches to early childhood and parentingCHILD CARE SERVICES IN RURAL VICTORIAFaCS staff work hard to build capacity in small rural communities and fi nd ways of creating child care services that suit local needs.

In 1999, in conjunction with Kilmany Family Care, an innovative pilot service was established in three towns in East Gippsland—Omeo, Buchan and Orbost. The service model, which we called ‘in-venue family day care’, involves caring for a small number of children (up to four at any one time) in a community venue—rather than in a carer’s home (the standard family day care model) or the parent’s home (in-home care, available in certain circumstances).

This approach, developed in the Victorian STO, is allowed under the Victorian Government’s licensing regulations. In Victoria a venue that takes no more than four children does not need to be licensed as a child care centre. The model, unique to Victoria, would not be possible in other states or territories that regulate family day care.

Following the success of the three pilots, the program has been replicated, with around 66 of these services now operating throughout Victoria.

ON-SITE CLASSROOM CHILD CARE ON ELCHO ISLAND While visiting the Child Care Centre in Galiwin’ku, Elcho Island (Northern Territory), a FaCS project offi cer was approached to discuss possible child care at Shepherdson College for the new Year 11 students. The school had started two new Year 11 classes and there were 97 enrolments. One class had many young mothers attending who were breastfeeding and needed on-site child care.

Discussions were held with the director of the child care centre and the assistant principal of the school. A meeting was scheduled to include the young mothers and other relevant community members. A follow-up teleconference meeting with all parties, the Jobs, Education and Training (JET) resource worker and a project offi cer from the Northern Territory Department of Employment, Education and Training was arranged to discuss the possibility of a JET on-site crèche at the school. The outcome was that a JET crèche was to be set up as soon as possible at the back of the classroom for young mothers.

The crèche would be sponsored by the school; it would operate in conjunction with the child care centre, which would offer support and training to the mothers and the new JET crèche staff. The FaCS project offi cer was also able to propose Indigenous Minor Capital Funding to make the necessary alterations to the classroom.

Helping parents support their children— the Child Support AgencyKey points The Child Support Agency (CSA) had significant success in helping parents manage their own

arrangements, with almost 52 per cent of parents now paying privately. Nearly 70 per cent of newly separated parents elect to transfer their child support privately.

During 2003-04 CSA reversed a previous five-year trend of rising gross maintenance debt levels by successfully reducing domestic debt by $13 million. In particular, extra resources provided to target ‘hard debt’ have resulted in an additional $19.3 million in child support collections.

By 30 June 2004, approximately 1.3 million parents had registered with CSA, resulting in child support payments of over $2.1 billion for the benefit of some 1.1 million children.

CSA has significantly improved client satisfaction as measured by its annual Professionalism Survey and this is also reflected in reduced child support complaints.

CSA won a Silver Award for its submission, Supporting Parents through Separation, in the Prime Minister’s Awards for Excellence in Public Sector Management.

The Child Support Agency (CSA) was established in 1988 to administer the Australian Government’s Child Support Scheme. The scheme aims to ensure that separated parents share in the cost of supporting their children according to their capacity. CSA’s role includes registration and assessment of child support, and the collection and transfer of child support payments for parents unable to do this privately.

By 30 June 2004, approximately 1.3 million parents had registered with CSA. Over 680 000 parents registered for private collection and 630 000 for CSA collection. This resulted in child support payments of over $2.1 billion for the benefit of some 1.1 million children.

The year 2003-04 has been a busy and productive one for CSA. The agency has built on the solid foundation established in previous years, which saw the introduction of integrated information technology, national telephone systems and improved workload scheduling, resulting in greater responsiveness to client needs. The CSA has worked to better promote its strategic intent of increasing parental selfreliance and independence by further investing in strategies and interventions designed to promote sound parenting, financial and relationship management skills. Projects include the Newly Separated Unemployed Parents initiative ‘Staying Connected’ (a workplace program) and the expansion of CSA’s separation support products and services. CSA’s success in this area can be seen in the continuous rise in the proportion of customers in private collect, to almost 52 per cent (see Figure 8).

CSA has successfully addressed the growth in gross maintenance debt of the previous five years through a deliberate focus on increasing the capacity and capability of CSA staff in the area of debt collection. In particular, CSA has significantly reduced domestic gross maintenance debt by $13 million in 2003-04. The Intensive Debt Collection (IDC) Budget Initiative and collaborative efforts with international child support partners have also contributed to reducing CSA debt (see Figure 9).

The collection rate for CSA-collect cases since the inception of the Child Support Scheme is now 89.2 per cent, while the total transfer rate (including private collect cases) is 95.4 per cent. In 2003-04, $2.1 billion was transferred between parents for the benefit of children. Around $1.3 billion of this was transferred directly between parents and $790 million was transferred through collections.

CSA focused its efforts in 2003-04 in four broad areas of business priority-stakeholders, parents, people and corporate governance-to address feedback received from agency stakeholders, parents and staff.

Figure 8: Growth in private collect cases, 1994–2004

Figure 9: Domestic gross maintenance debt and Intensive Debt Collection, 2003–04

CSA stakeholdersCSA plays a lead role in working with other organisations in the family law system (including both government and non-government agencies) to encourage parents to access the range of services that help them build independence and self-reliance in meeting their child support responsibilities.

CSA has contributed to the outcomes of the House of Representatives Standing Committee on Family and Community Affairs Inquiry into Child Custody Arrangements in the Event of Family Separation.

CSA parentsCSA continued to be committed to providing quality customer service in 2003-04 in a number of ways.

CSA has made substantial inroads in managing and reducing the growth of debt. The IDC Budget Initiative, targeting ‘hard debt’, has been part of the success in reversing previous trends of rising debt levels and resulted in contact with some 15 100 parents and the collection of an additional $19.3 million in child support payments.

CSA continued to exceed its client service standards with a call answer rate of over 91 per cent within 30 seconds. CSA developed and launched its new Client Service Charter and Staff Charter support package.

CSA implemented a public sector first with the introduction of a national customer feedback program known as Clients Having a Say (CHAS) via the telephone system.

The ‘Me and My’ series, a collection of self-help booklets, has been updated and expanded to include additional educational resources. The series includes:

– Me and My Kids: Parenting from a Distance

– Me and My Money—a revamped booklet on money management, with tips and hints on how to stretch your dollar further after separation

– What about Me?—to be released in the second half of 2004, this booklet addresses the linkages between separation and emotional wellbeing

The series will be expanded further with the introduction of two new booklets in 2004-05 that deal with how parents can better manage relationships with the other parent and their new partners.

CSA, in partnership with the NSW-based community organisation Interrelate, designed an innovative workplace program for separated fathers, ‘Staying Connected’. This program is designed to address the needs of members of this at-risk group by helping them to look after themselves, build a businesslike relationship with the other parent, and develop strategies to build positive relationships with their children post-separation.

This program was successfully piloted with Australia Post and the Australian Defence Force.

The Newly Separated Unemployed Parents initiative commenced in July 2003 and will operate over the next four years. Consultation with other government organisations, community groups and parents has been completed. The project will support 31 500 newly separated non-

resident parents receiving Newstart Allowance to improve their parenting and relationship skills and increase their motivation to return to the paid workforce.

The Direct Telephone Support Service (DTSS) pilot-funded by the Department of Health and Ageing National Suicide Prevention Strategy-supports separated parents through a direct telephone referral process. This involves CSA client service officers in an initial three-way telephone hook-up with the parent and the telephone counselling service. On-referrals are primarily to relationship counselling and legal services. At the end of the 2003-04 pilot period 3323 parents in the Queensland region were transferred at the conclusion of their call.

ProfessionalismCSA conducted its annual Professionalism Survey in May 2004. This program measures and tracks CSA parents’ perceptions of the professionalism of CSA staff, a key corporate outcome in CSA’s Agency Agreement. A national telephone survey of approximately 600 CSA parents indicated significant improvements in all four components of the Professionalism Index- personal characteristics, client treatment, professional characteristics, and outcomes of the interaction (see Figure 10).

The results in May 2004 showed a significant increase in the level of customer satisfaction from the May 2003 survey. The result of 3.8 is not only a significant improvement from the result achieved in 2003, but it also exceeds the target of 3.7 and represents the highest result achieved since the survey began in 1998. Significantly higher levels of customer satisfaction were achieved for both payers and payees.

CSA peopleCSA continued to build and increase staff capability by introducing business coaching to client service officers. In order to evaluate the success of this and other strategies, CSA conducted its fifth survey of corporate health (an employee work satisfaction survey) in December 2003. The findings indicate that corporate health generally remains buoyant in CSA. However, some clear areas for improvement have been identified. For example, the survey indicated that the lowest rated characteristic of the 23 able to be benchmarked between 2001 and 2003 concerned the Procedural Justice (job appointments) component questions. CSA has developed strategies to address these areas for improvement.

Figure 10 The four components of the CSA Professionalism Index

The year 2003-04 also saw the continuation of CSA’s disengagement from some services provided by the Tax Office. Some of these services have been (or soon will be) brought in-house or provided by other external service providers.

Corporate governanceCSA continued to incorporate business excellence principles into all areas of the organisation, maintaining its focus on continuous improvement.

Strategies outlined in CSA’s 2003-04 Business Plan were the direct result of opportunities for improvement identified in the feedback report from CSA’s 2001 Australian Business Excellence Awards submission and other external reports. During this year CSA conducted an organisational self-assessment against business excellence principles. The opportunities for improvement identified were incorporated into 2004-05 planning.

AwardsIn November 2003, CSA was presented with a Silver Award for its submission, Supporting Parents through Separation, in the Prime Minister’s Awards for Excellence in Public Sector Management.

This award aims to encourage and recognise better practice and innovation in government—in particular, the achievements of public sector work groups, units and teams with a focus on specific projects, initiatives or change processes.

The award was presented to CSA for its achievement in developing and piloting innovative products and services over four years to meet the needs of separated parents.

Work and familyKey points Work and family is one of the Australian Government’s strategic priority areas.

In 2003-04, the Government funded 44 000 more child care places.

A range of new family assistance and child care measures—in the More Help for Families package in the 2004-05 Budget, in the December 2003 announcements, and in the new Stronger Families and Communities Strategy—will help families balance their work and family responsibilities.

In November 2002, the Prime Minister announced that work and family was one of the Australian Government’s strategic priority areas for consideration during its current term and that it would work to develop policy options in this area. The Government’s objective has been to facilitate choice for families and individuals in balancing their work and family lives, rather than to mandate behaviour, given that individual families will differ in their priorities.

During 2003-04 the Government made available an extra 40 000 outside school hours care places and 4000 more family day care places. These additional places represent a 17 per cent increase in the supply of outside school hours care and nearly a 6 per cent increase in the number of family day care places available.

These places were sufficient to meet the current verified demand from service providers and have allowed 683 new outside school hours care services and two new family day care services to be established.

The availability of these extra places will assist many more families to access affordable, quality child care. Access to quality child care helps parents to participate in employment, training or community activities and to better balance their work and family responsibilities.

In addition, in the 2004-05 Budget the Government allocated additional funding of $219.9 million over four-and-a-half years to provide Child Care Benefit to eligible parents and provide establishment funding for new child care services in areas with demonstrated demand.

In combination, the More Help for Families package measures, outlined earlier in this volume, will provide greater assistance to families when they need help-while also providing better rewards for paid work and improving work incentives. The package includes a universal maternity payment for each new child born on or after 1 July 2004, and further increases in the availability of child care, vital in supporting parents’ participation in the workforce.

The package was developed following consideration by the Work and Family Taskforce, established by the Prime Minister to review policy and develop a range of options for financial assistance on the birth of a child, other financial support for families, and child care.

The taskforce was chaired by the Department of the Prime Minister and Cabinet, with participation from the departments of Family and Community Services, the Treasury, Employment and Workplace Relations, and Finance and Administration.

FaCS will be responsible for implementing many of the measures that will help families balance their work and family responsibilities.

Encouraging participationKey points The second phase of the Australians Working Together package was successfully

implemented in September 2003.

Working Credit is available to more than two million income support recipients, allowing them to keep more of their payment when they start work.

One of the department’s key priorities for 2003-04 has been to encourage greater participation by individuals and families in the labour force and in community life. It is vital that Australia’s social support system helps people fully develop their potential for participation and self-reliance as well as meet their immediate needs for income.

Achievements in 2003-04 include the successful implementation of the second phase of the Australians Working Together (AWT) package, progress with the evaluation of AWT and the reform of disability services.

Australians Working TogetherThe second phase of AWT came into effect on 20 September 2003, including:

Working Credit

the Language, Literacy and Numeracy Supplement

the second phase of Helping Parents Return to Work

flexible arrangements for mature-aged people on Newstart Allowance

closing access to Mature Age Allowance and Partner Allowance

participation interviews for Widow Allowance recipients

the second tranche of Personal Advisers.

Working Credit aims to increase employment among customers of working age by allowing them to keep more of their income support payment when they first start work. Since its introduction on 20 September 2003, nearly 540 000 individuals have used their working credits. Customers receiving Newstart Allowance, Parenting Payment (Single), Youth Allowance (other) and Disability Support Pension are the biggest users of the credit. A new telephone voice-recognition self-service option for reporting earnings was implemented along with Working Credit. It has been received positively by customers.

The Language, Literacy and Numeracy Supplement took effect from 20 September 2003 and has already assisted approximately 18 000 customers. It encourages people to take up literacy and numeracy training to overcome barriers that they may have to employment by helping with the costs of participating in such training.

The second phase of the Helping Parents Return to Work measure extends compulsory participation planning interviews to parents whose youngest child is aged six or over and introduces participation requirements of up to 150 hours of approved activities in each six-month period for parents whose youngest child is aged 13 or over. From 20 September 2003 until 2 July 2004, approximately 78 000 Parenting Payment customers had attended an initial interview with a Personal Adviser or Jobs, Education and Training (JET) Adviser. Recipients of Parenting Payment now have access to expanded education, training, employment and support services and are able to volunteer for the Work for the Dole program in order to gain work experience opportunities.

Changes aimed at mature-age people include compulsory participation interviews and a more flexible activity test for Newstart Allowees aged 50 years and over; annual participation

interviews for new claimants of Widow Allowance; and the closure of access to Mature Age Allowance and Partner Allowance to new customers.

Personal Advisers are employed in every Centrelink office in Australia. Personal Advisers provide individualised assessment and support for people on income support who need help to engage with the workforce or take up participation in social opportunities. By 16 April 2004, Personal Advisers had conducted initial participation interviews with around 250 000 customers targeted for assistance. Close to 98 per cent of these customers had developed a participation plan. Customers who have a participation interview are almost twice as likely to be referred to a funded program as customers in the same group who do not have an interview.

The number of interviews conducted by Personal Advisers was lower than initially estimated. FaCS is reviewing the appropriateness of the interview targets and has asked Centrelink to give priority to interviewing those parents who need the most assistance and who are not already participating in paid work.

The Personal Support Programme (PSP), which was introduced in July 2002 as part of AWT, provided its second year of support for people receiving income support who are unable to find work or benefit from employment programs because of multiple non-vocational barriers such as mental illness, homelessness and domestic violence. In 2003-04 PSP assisted some 40 000 people. PSP has achieved better-than-expected outcomes, with almost 16 per cent of people exiting the program achieving an economic outcome in 2003-04 (that is, employment or education/training or placement into an employment program that lasts for 26 weeks) and 29 per cent achieving a social outcome.

As part of AWT, additional funding was provided to disability employment services to increase their capacity to assist jobseekers with disabilities. In 2003-04 nearly 6000 new jobseekers received assistance from this additional funding. A key focus has been to identify and address unmet need in high-demand areas.

Additional funding was also provided to CRS Australia enabling them to provide vocational rehabilitation programs to 4800 more new jobseekers. A cost-benefit analysis of vocational rehabilitation was undertaken by Curtin University, indicating a total benefit-to-cost ratio of 30:1 that is, for every dollar spent by the Australian Government, there is over a $30 return in public and social benefits.

In 2003-04 FaCS also focused on improving the sustainability of the disability services sector. This work culminated in the announcement in April 2004 of a $99 million funding package, Security, Quality Services and Choice for People with Disabilities. More details about this package are in the next section.

Evaluation of the impact of AWT commenced in late 2002. The evaluation will broadly assess the impact of AWT on its main target groups — parents, people with disabilities, and mature-age and Indigenous customers. It will also evaluate the effectiveness of specific AWT measures, including Working Credit, Personal Advisers, the Personal Support Programme and Centrelink Remote Area Service Centres.

The first wave of a two-wave survey of people who have had a Personal Adviser interview was recently completed. The survey is designed to provide information on the impact of this intervention on target customer groups. Customers will be interviewed again after six months to gauge any change in their intentions, attitudes and motivation for increased participation. A telephone survey of Centrelink Personal Advisers and JET Advisers has also been completed, with the results still being analysed.

A specific investment has been made in the development of data sets for the evaluation. The joint FaCS and DEWR jobseeker data set and the Workforce Age Longitudinal Extract were delivered during 2003-04, bringing together for the first time longitudinal administrative data on customers as they progress through income support, employment assistance and training-related programs.

Analysis for the AWT evaluation using these longitudinal data sets has begun, focusing to date on pre-AWT analysis.

Reforms to support people with disabilitiesKey points In 2003-04, through the Disability Employment Assistance Program, the Australian

Government provided funding of $295 million through 403 disability employment services, across 774 outlets, to help more than 70 000 jobseekers with moderate or severe permanent disabilities to find and keep jobs.

In April 2004, a $99 million funding package—‘Security, Quality Services and Choice for People with Disabilities’—was announced after a wide-ranging consultation process.

Open employment services help people with disabilities find and keep a job in the mainstream labour market. Key features of the Government’s broad reform agenda for employment assistance and rehabilitation services are the introduction of a new quality assurance strategy, including the introduction of award-based wages for business services—commercial enterprises whose workforce is comprised predominantly of people with disabilities—and the implementation of new outcome-based funding arrangements, known as case-based funding.

In the last two years the Australian Government has made significant investments towards the reforms: $161 million in the 2003-04 ‘Improving Employment Assistance for People with Disabilities’ Budget package; and $99 million in the ‘Security, Quality Services and Choice for People with Disabilities’ package in April 2004. Implementing these packages has been a priority for FaCS this year.

Improving Employment Assistance for People with DisabilitiesThe ‘Improving Employment Assistance for People with Disabilities’ package included $135 million to implement case-based funding and a $25 million front-end investment to improve the viability of business services.

Case-based funding providers are paid on a fee-for-service basis to help jobseekers with disabilities to find and keep employment. Fees are based on the individual’s needs and their employment outcomes. During 2003-04 FaCS has been working with providers in the disability sector to finalise arrangements for implementing case-based funding from 1 January 2005.

The $25 million investment in business services will ensure a viable, sustainable industry into the future. Particularly in rural communities, these businesses are important local employers and are often the only disability service in their area. Business services provide an important support service for their employees and their families.

This year FaCS has coordinated business reviews of over 200 services by independent consultants.

Following the review, funding is being provided to offer services assistance tailored to meet their specific needs—for example, to purchase business equipment or software, carry out business planning, develop corporate governance policies and procedures, train staff or develop marketing strategies.

Security, Quality Services and Choice for People with DisabilitiesIn 2002, legislation was passed to introduce minimum service standards into services funded under the Disability Services Act 1986. Disability employment assistance services must be independently assessed against these standards by 31 December 2004 in order to continue to

receive Australian Government funding. The disability service standards include a requirement that business services pay award- based wages to their employees with disabilities.

The ‘Security, Quality Services and Choice for People with Disabilities’ package aims to ensure that people with disabilities in business services will enjoy continued service, choices in their employment and payment of award wages in a quality environment. It includes a wage assessment tool to help business services determine pro-rata award-based wages for employees with disabilities. The package was developed in response to a range of issues raised by services, consumers and their representatives about the impact of the reforms on disability employment services. This package builds on the ‘Improving Employment Assistance for People with Disabilities’ package.

During the last year FaCS has concentrated on the development of this package. FaCS carried out consultations throughout Australia with business services, employees with disabilities and their families and carers as well as discussions with a range of consumer and industry representative bodies. The finalisation of the wage assessment tool has been another critical area of work in the last year.

FaCS-Centrelink Business AllianceKey points The new FaCS-Centrelink business alliance agreement will focus more on outcomes.

The business alliance will lead to better outcomes for customers and community, by improving accountability to government and the efficiency of the FaCS-Centrelink relationship.

Our business relationship with our major service delivery provider—Centrelink—is of fundamental importance to our effectiveness. Centrelink delivers services and programs on behalf of FaCS that make up more than a third of government outlays, provide assistance to the majority of Australian families with children and make payments to over four million individuals at any one time.

In 2003-04 FaCS and Centrelink developed a new model for doing business together that is based on the unique roles and different areas of expertise of the two agencies, and ensures that we work together collaboratively to maximise the impact that ministers and government want from us.

The business alliance model that we have developed is designed to provide our staff with a clear line of sight from what government wants from us—our portfolio outcomes and outputs—to our key performance indicators with Centrelink, to our risk management processes and to our funding inputs. The model addresses a number of aspects of our alliance, including performance, key risks, cost, governance, roles, responsibilities, and behaviours. Further information on the business alliance model is in Volume two, Part two, ‘Partnerships for people’.

Challenges for the future business allianceThere will be significant challenges in 2004-05 in consolidating the gains from the development of this new business alliance and embedding the five key aspirations that we have developed for our relationship: transparency; responsiveness; clarity of expectations and outcomes; trustworthiness; and appreciation of shared risks.

People are a priority in FaCSKey points In March 2004 FaCS was the first Australian Public Service department to launch a

comprehensive strategy designed to retain older workers—the Mature Workers Strategy.

A diversity climate survey was conducted in May 2004, with more than three-quarters of respondents saying they felt positive about diversity in FaCS.

A new departmental structure, formally commencing in July 2004, has better aligned corporate functions and recognises the importance of the People function within the department.

People are a priority in our department. Our staff are important because they ‘make a real and positive contribution to how well FaCS performs against its priorities’ (FaCS Priorities Plan 2003-04), and the People priority is one of our six business priorities. In line with this priority, highlights during the year have been the development of a Mature Workers Strategy, the implementation of a number of initiatives to support diversity and a restructuring of our resources to respond to workload pressures and meet policy priorities.

Mature Workers StrategyLike the rest of the Australian Public Service, FaCS will be increasingly reliant on its mature- age workers. Thirty-seven percent of FaCS staff are aged 45 or older. Accordingly, FaCS was the first Australian Public Service department to launch a comprehensive strategy designed to retain older workers—those aged 45 years and over. The FaCS Mature Workers Strategy, launched on 18 March 2004, forms part of the FaCS Certified Agreement 2002-05.

The strategy marks a shift towards providing mature-age workers with more flexible options for continuing to work. FaCS aims to retain mature-age staff by enabling them to delay retirement as well as continue to work in some capacity after retirement. FaCS is also recruiting older workers.

For example, about 10 per cent of our initial Compass program recruits were over 40 years of age. The Compass program was developed after Workforce Planning identified a likely shortage of staff at middle levels within three to five years In an effort to combat such a shortage, the

Compass program aims to recruit staff at entry level and develop them to fill these anticipated vacancies. The program has successfully recruited a range of people of all ages, from school leavers to mature workers.

Retaining corporate knowledge, an important factor in workforce planning, is being addressed through succession planning and the FaCS Individual Performance Management System (IPMS). Succession planning allows for corporate knowledge to be passed from one staff member to another without it being lost. FaCS’ Individual Performance Management System provides the vehicle for staff members to talk about their retirement options and time frames so that succession plans can be organised and implemented.

The approaches developed in the strategy stem in large part from a survey of mature-age staff about their retirement intentions carried out in June 2003. This survey ascertained retirement intentions and identified barriers to continuing work beyond an age at which many would normally retire. Twenty per cent of staff aged 45 and over responded to the survey.

FaCS’ Mature Workers Strategy recognises the wealth of knowledge and experience of our mature-age workers and their many valuable qualities: experience, loyalty, corporate knowledge, commitment, a strong work ethic, reliability and low absenteeism. The strategy benefits staff of any age, recognising as it does the diversity of our workforce as a reflection of the diversity of Australia’s population and the importance we place on offering all our staff the opportunity to contribute for as long as they choose to. Younger staff benefit from having older staff, who can pass on valuable corporate knowledge, available as mentors. As well, mature workers in the area of policy development often have greater insights into some of the problems older Australians are facing and are therefore well placed to align policy with the needs of these people.

The strategy comprises short-, medium- and long-term strategies to be implemented by June 2005. Since the launch in March the following short-term activities have been implemented:

a working group to investigate and report on superannuation options for mature workers

a list of mature workers who wish to be considered for employment by FaCS after they retire

a FaCS reward and recognition strategy that will provide staff with certificates for milestone years of service

articles published in FaCSination on mature workers who are continuing to work in FaCS

workshops scheduled on managing risk in career and retirement planning

delivery of a number of superannuation seminars

data collected on statistical trends as well as learning and development activities.

Diversity CouncilFaCS is serious about promoting and supporting our diverse workforce. In 2003, we formed a Diversity Council as one means of making this commitment more concrete. The council is chaired by our Secretary, with membership drawn from a cross-section of FaCS employees and diversity networks.

The council’s role is to highlight workplace diversity and think of new ways to promote cultural unity, collective growth and workplace harmony. It is currently reviewing workplace diversity issues, challenges and priorities as part of developing a new FaCS Diversity Plan.

making a differenceKeeping on keeping onMike Reddy is a man with plans and he’s not about to let the idea of retirement interfere with them. Mike is 52 and he intends to keep on keeping on.

‘Full-time work is something I have done for more than 30 years and I intend to work as long as I can because I enjoy my work’, Mike says.

‘Work is a big chunk of my existence. I remain interested in the corporate and social life of my branch and FaCS in general.

‘I am the union representative for my branch and the occupational health and safety representative for my workplace. I also volunteer for coordinating jobs such as for my branch’s input into the Disability Action Plan.

‘Over the past six years, I have organised two very popular wine dinners a year for FaCS and Centrelink staff. These activities give variety to my working day and allow me to mix with a larger number of staff. It means that work is more than just pounding on a keyboard for seven hours and 25 minutes each day.’

Mike began working a nine-day fortnight when he turned 50. He has accumulated a fair bit of recreation leave and, thanks to working arrangements in FaCS, is able to take it at half-pay. This gives him 40 days a year to get away and helps keep him fresh.

‘My supervisor and I work together to ensure that the work of my section does not suffer because I work a nine-day fortnight. It is very likely I will work a six-day fortnight after I turn 55’, Mike says.

‘People over 50 can be typecast as clock-watchers who are counting the days to their retirement.

‘Since joining FaCS, it has been my policy to change jobs about every two years. Staying mobile shows my bosses that I am still looking for challenges and the chance to learn new things.

‘Getting older is not all bad: I fi nd it satisfying to share some of my work experiences with younger people, because they often look to an older person to give them advice on career issues.’

Mike says that although he intends to keep working he has managed his affairs so that when he does reach ‘retirement age’, he will have the option to retire if he wants. However, that’s probably not going to happen as Mike continues to keep himself mentally and physically fi t, and does not let stress poison his working day.

Diversity surveyThe Diversity Council conducted a diversity climate survey in May 2004.

We were pleased to achieve a 42 per cent response rate and to find that responses were generally positive. More than three-quarters of respondents said they felt positive about diversity in FaCS, and at least four in every five respondents said they knew of their rights and responsibilities in relation to workplace diversity.

The survey captured new information on our workforce demographics, volunteered by people in describing personal factors that may impact upon them at work. This contributes to our understanding of the breadth of diversity within our workforce and is likely to be relevant to our diversity program development.

There were, however, some areas for improvement identified in the survey. These related in particular to interactions at a workgroup level, and the need for a continued focus on providing a safe and inclusive work environment, with an emphasis on understanding, respecting and drawing upon our diversity. These are matters that will be explored further in developing our Diversity Plan.

FaCS restructureBy the end of 2003 FaCS had recognised that there was a need to reorganise and better balance resources within the department in order to respond to workload pressures and emerging policy agendas. An important element in looking at a restructure was a decision not to increase the overall number of executive directors.

The agenda for families and children is an area of growing interest to the Australian Government and to the broader community. To ensure the department was in a position to effectively respond, a second cluster was established in the Family and Children’s area. The restructure also took into account the need to strengthen the linkages between the Economic and Social Participation, Family and Children, and Community Development and Support areas of the department.

The restructure of the Participation area of the department supports a clearer emphasis on obtaining positive outcomes for working-age people, including better attention to policy integration and service quality, and alignment of key functional activities around evaluation, data and program management.

The new departmental structure, which took effect on 1 July 2004, allows for a better alignment of the corporate functions and recognises the importance of the people management function to the department by having that function report directly to a deputy secretary. The new structure also recognises the importance of effectively communicating the department’s policies and programs and of providing quality support to portfolio ministers.

Our state and territory offices play a significant role in providing ‘coal face’ intelligence. The restructure strengthens our ability to make better use of this information to assist in policy development and implementation.

making a differenceFaCS community spiritThe Child Care Benefi ts Branch (CCB), always ready for a challenge, put down pen and paper and braved the elements to participate in two challenging projects.

There is a provision in our certifi ed agreement for staff to get involved in community volunteering, so, after many hours of searching for the right match, we found two suitable projects.

MARYMEAD CHILD AND FAMILY CENTREEight of us, armed with paint brushes and rollers, set off to work at the Marymead Child and Family Centre in Narrabundah, ACT. The project involved painting a four-bedroom cottage on the Marymead grounds. The large cottage, in need of a major makeover, provides long-term housing for young people with disabilities and in crisis. Our mission was to brighten up the cottage and paint as many rooms as possible in one day.

It was a great day, Marymead staff provided encouragement and lunch for the painters and, as expected, our CCB DIY team came up trumps and painted the entire place in one day—whew!

That night a few spas and early nights were had by our CCB Michelangelos. Flecks of paint were still visible several days later, a pleasant reminder of a job well done.

RSPCANot to be outdone by the fi rst group, another 11 of us invaded the RSPCA in Weston, ACT to complete a CCB ‘ground force’ makeover. The Canberra bushfi res of January 2003 had severely burnt the RSPCA grounds, and their gardens were devastated. Braving a very hot day, CCB ground force moved native gum trees, pulled out waisthigh weeds, mulched, dug holes and watered plants by hand to give the RSPCA grounds a much-needed overhaul. When the going got tough, we stopped for a long, cool drink and played with lots of cute puppies and kittens. We all pitched in and had a BBQ lunch with RSPCA staff under the trees. With empty drink bottles, several blisters and one puppy later, CCB ground force accomplished a mammoth task and went home for some much-needed ‘R & R’.

FaCS triple bottom line reportingKey point In 2003 FaCS became the first Australian Government department to publish a triple bottom

line report.

FaCS released its first triple bottom line (TBL) report in October 2003, making FaCS the first Australian Government department to publish a TBL report. In its role as secretariat to the Prime Minister’s Community Business Partnership, FaCS is one of a number of organisations working to develop a national TBL reporting framework for Australian business. In that context, it makes good sense for FaCS to set an example and lead the way in the public sector.

Our reporting against a range of social, environmental and economic performance indicators has served FaCS well in a number of ways. FaCS is working to address the gaps in data that emerged during compilation of our first report, data that are needed to ensure more complete and sustainable management of our organisation and our efforts. The report also acknowledges to FaCS staff and the community at large that our operations have social, environmental and

economic impacts—not just financial ones—and that these must be analysed and reported on transparently in the spirit of improvement.

FaCS triple bottom line reporting draws from indicators developed by the Department of the Environment and Heritage and underpinned by the 2002 Global Reporting Initiative (GRI) guidelines.

In October 2003 the Minister for Family and Community Services launched the first FaCS triple bottom line report at the Tuggeranong Enclosed Oval, a public sporting facility that had been severely damaged by the Canberra bushfires of January 2003. The event also promoted other FaCS TBL commitments and initiatives.

The report’s launch coincided with that of the FaCS Green-fleet membership drive. In conjunction with Greenfleet and the ACT Department of Urban Services, FaCS senior executives planted 120 trees to replace those lost in the fires. To date more than 100 FaCS staff have joined Greenfleet. FaCS is working with ACT Urban Services to maintain trees through the current drought with a mulching and watering program.

At the same event Howard Bamsey, Chief Executive of the Australian Greenhouse Office, presented FaCS Secretary Mark Sullivan with the FaCS Greenhouse Challenge membership certificate in recognition of the commitment that FaCS has made to better understanding, managing and reducing our greenhouse gas emissions.

Membership of the Challenge requires FaCS to report annually to the Australian Greenhouse Office on our greenhouse gas emissions and the work we are undertaking to reduce these.

This event also showcased the Toyota Prius hybrid car, which uses a combination of electric and petrol motors to reduce fuel consumption, greenhouse gas emissions and noxious gas emissions. In January 2004 FaCS leased a hybrid car for use by the ministerial courier. Since this date the car has travelled 12 539 kilometres and used 671.47 litres of fuel. The car used 29.1 per cent less fuel with the same percentage reduction in greenhouse gas emissions than the car it replaced for the same distance.

FaCS is currently considering increasing the number of hybrid vehicles in its fleet.

List of acronyms and initialismsAIFS Australian Institute of Family Studies

ARC Australian Research Council

ASEAN Association of South-East Asian Nations

ATSIC Aboriginal and Torres Strait Islander Commission

ATSIS Aboriginal and Torres Strait Islander Services

AWT Australians Working Together

CAEPR Centre for Aboriginal Economic Policy Research

CCB Child Care Benefit

CEO Chief Executive Officer

CHAS Clients Having a Say

CHIP Community Housing and Infrastructure Program

CSA Child Support Agency

DEWR Department of Employment and Workplace Relations

DIMIA Department of Immigration and Multicultural and Indigenous Affairs

DTSS Direct Telephone Support Service

DYI do-it-yourself

FaCS Department of Family and Community Services

FHPEIP Family Homelessness Prevention and Early Intervention Pilot

FIM Family Income Management

FTB Family Tax Benefit

GCS General Customer Survey

GRI Global Reporting Initiative

HILDA Household. Income and Labour Dynamics in Australia

HOME Household Organisational Management Expenses

IDC Intensive Debt Collection

IPMS Individual Performance Management System

JET Jobs. Education and Training

LDS Longitudinal Data Set

LSAC Longitudinal Study of Australian Children

LSIC Longitudinal Study of Indigenous Children

MACS Multifunctional Aboriginal Children’s Services

NAIDOC National Aboriginal Islander Day Observance Committee

NSUP Newly Separated Unemployed Parents initiative

PSM Public Service Medal

PSP Personal Support Programme

RAPS Recognise and Appreciate People Scheme

RASC Remote Area Service Centre

RSPCA Royal Society for the Prevention of Cruelty to Animals

SBS Special Broadcasting Service

SFCS Stronger Families and Communities Strategy

SPEAR Social Policy Evaluation. Analysis and Research Centre (Australian National University)

SPRC Social Policy Research Centre (University of New South Wales)

SPRS Social Policy Research Services

SSAT Social Security Appeals Tribunal

STO state and territory office

TBL triple bottom line

VSEG Volunteer Small Equipment Grants

VWI Voluntary Work Initiative

VWP Voluntary Work Program

YWCA Young Women’s Christian Association

How to find out moreDepartment of Family and Community Services

Phone: 1300 653 227

TTY: 1800 260 402

National Office

Tuggeranong Office Park

Athllon Drive

Greenway ACT 2900

Box 7788

Canberra Mail Centre ACT 2610

State and territory offices

NSW Level 5, 1 Oxford Street Darlinghurst Sydney 2010

Victoria 3rd Floor, Casselden Place Bldg 2 Lonsdale Street Melbourne 3000

Queensland Levels 5 & 6, 200 Adelaide Street Brisbane 4000

Western Australia Level 12, Central Park Building 152-158 St Georges Terrace Perth 6000

South Australia Level 10, 55 Currie Street Adelaide 5000

Tasmania Level 3, 21 Kirksway Place Battery Point, Hobart 7004

Northern Territory 2nd Floor, NET Building Scaturchio Street Casuarina, Darwin 0810

ACT Level 3, 8-10 Hobart Place Canberra 2600

Annual Report 2003-04 I Volume 2ISSN: 1442-5238

ISBN: (Volume one) 1920 851 526

ISBN: (Volume two) 1920 851 518

ISBN: (set) 1920 851 631

ABN: 36 342 015 855 FaCS, Social Security Appeals Tribunal and Australian Institute of Family Studies

ABN: 36 342 015 855 004 Child Support Agency

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/cca

Contact officer:

Assistant Secretary

Resource Management Branch

Department of Family and Community Services

Box 7788

Canberra Mail Centre ACT 2610

Telephone 1300 653 227 (for the cost of a local call, mobile phones at mobile rates)

Email: annual.report@facs.gov.au

Internet: www.facs.gov.au/annualreport

As in previous years, this year’s annual report of the Department of Family and Community Services (FaCS)-the sixth — has been divided into two volumes for ease of access and accessibility.

Volume one provides an overarching view of the department’s functions and a summary of its achievements for the year.

Volume two provides more detail and covers performance reporting, management and accountability, appendixes and financial statements.

Acknowledgments

Annual report team: David Bush, Carmel Curran, Greg Moores and Christine Motbey Editorial/design consultants: Wilton Hanford Hanover and ZOO

Part 1 I Performance reportingExternal performance reporting frameworkOutcomes and output groupsThe ‘Performance reporting’ part of this annual report encompasses FaCS’ three outcomes and 10 output groups as shown in Figure 1 below. The Government delivers benefits to the Australian community (outcomes) primarily through administered items (often described as programs) and FaCS’ goods and services (outputs), which are delivered against specific performance indicators.

Outcome performance information relates to the specific impact that an agency’s outputs and administered items have had on the community.

Figure 1 Outcome and output group structure

Departmental outputsFour common ‘departmental’ outputs are reported for each of the 10 output groups. Broadly, these outputs are the direct product of the policy, management and administrative functions of FaCS. The outputs are:

policy advice

purchasing, funding and relationship management

research and evaluation

service delivery (which is commonly provided by agents of FaCS).

Outputs are reported on in the order in which they appear in the financial and staffing resources summaries for ease of reading. They are not in priority order.

Performance indicatorsFaCS employs a holistic external reporting structure comprising:

common effectiveness indicator categories for administered items and outputs that reflect key strategies for social policy

quality, quantity and price indicators for outputs

operating environment statements for the three outcomes, to set the context for the performance.

For more information about the FaCS external reporting framework, see pages 44-47 of the FaCS part of the Portfolio Budget Statements 2003-04.

Performance information is reported against the performance indicators published in the 2003-04 Portfolio Budget Statements. This reporting is complemented by other relevant reporting, including the results of evaluation.

Outcome 1 I Families are strongServices and assistance that: contribute to children and young people having the best possible start to life; promote healthy family relationships; allow families to adapt to changing economic and social conditions; and encourage families that nurture individuals and take an active part in their community.

DescriptionOutcome 1 reflects the Government’s commitment to support and strengthen families as the fundamental unit of society. FaCS will:

help families to build their capacity and their resilience

assist families in selecting and receiving the help they need at times of transition or crisis

develop partnerships with key stakeholders to improve the efficiency of services delivered and to identify emerging problems and develop appropriate policy responses

assist young people and their families to access the skills and opportunities they need to develop independence and self-reliance

promote parental self-reliance and independence in meeting child support responsibility following separation.

Figure 2 Outputs contributing to Outcome 1

Financial and staffing resources summaryTable 1: Outcome 1—Families are strong

Outcome 1: Families are strong

(A) Budgeta

2003-04 $’000

(B) Actual

2003-04 $’000

Variation (column B

minus column A)

$’000

Budgetb

2004-05 $’000

Administered Expenses (including third party outputs)

1.1 Family Assistance15 271 053

15 382 924 111 871

14 604 292

1.2 Youth and Student Support2 833 026 2 655 651 -177 375 2 893 245

1.3 Child Support105 580 90 395 -15 185 125394

1.4 Child Care Support1 611 437 1 600 618 -10 819 1 775 989

Items Applicable Across Outcome 1

Ex gratia payments and savings 0 0 0 0

provisions for DVA pensioners receiving Family Tax Benefit A and Child Care Benefit

National Secretariats (part component see also Outcomes 2 and 3) 694 349 -345 699

Payments to Universities and other organisations for special studies and research (part component see also Outcome 3) 83 83 0 85

Total Administered Expenses 19 821 873 19 730 020

-91 853 19 399 704

Price of Departmental Outputs

Output Group 1.1 Family Assistance 458 483 459 830 1 347 454523

Output Group 1.2 Youth and Student Support 256 528 257 328 800 272 236

Output Group 1.3 Child Support258 559 258587 28 279 554

Output Group 1.4 Child Care Support 124 636 124 966 330 141170

Appropriations Applicable Across Outcome 1

Policy Advice197 197 0 414

Purchasing, Funding & Relationship Management 153 153 0 322

Research and Evaluation86 86 0 180

Centrelink63 63 0 29 094

Revenue from Government (Appropriation) for Departmental Output Groups 1 098 705 1 101 210 2 505 1 177 493

Revenue from other Sources929 1 266 337 989

Total Price of Output Groups (Departmental) 1 099 634 1 102 476 2 842 1 178 482FaCS Componentc

103 052 103 071 19 99 756

Centrelink Component717 729 720191 2 462 781 794

Child Support Agency Component257 026 257052 26 274724

Service Delivery (other)20 898 20 896 -2 21 219

Non-appropriated expensesd

1 077 807 1 080 314 2 507 1 156 274

TOTAL FOR OUTCOME 1 (Total Price of Outputs and Administered Expenses) 20 921507

20 832 496 -89 011

20 578 186

Staffing Years (Number) 2003-04 2004-05FaCS (including Child Support Agency and the Social Security Appeals Tribunal) 3 471 3 502

a Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations. b Budget prior to additional estimates.

c FaCS includes the Social Security Appeals Tribunal, but excludes the Child Support Agency, which is shown separately.

d Non-appropriated expenses are expenses from sources other than annual or special appropriation (non-appropriated revenue). For example, monies paid into the Child Support Trust Fund by non-custodial parents are non-appropriated revenue, while disbursements of those monies to custodial parents and allowances for bad debts are a non-appropriated expense. In Outcome 1, these include the Child Support payments and transfers back to the Commonwealth in relation to the Student Financial Loan Scheme.

Key strategiesThe key strategies for strengthening family capabilities are:

providing financial assistance to families

improving family relationships with support and education, including measures aimed at preventing or reducing the incidence of family breakdown, domestic violence, and child abuse and neglect

providing a focus for prevention and early intervention initiatives for vulnerable families and children

implementing a range of families initiatives, including the Stronger Families and Communities Strategy, which funds approaches to early childhood development that respond to local community needs

administering programs that address the barriers to participation for disadvantaged youth

providing income support for young people undertaking education or training or seeking work, and other support arrangements to assist young people in their transitions to independence and adulthood

seeking to help young people who are disconnected (or at risk of becoming disconnected) from their family, community, education or employment to overcome difficulties by working in partnership with the state and territory governments, business and community organisations

ensuring children continue to be financially supported if their parents separate, through the administration of the Child Support Scheme by the Child Support Agency (CSA)

providing support for access to quality child care.

Operating environment statementFamilies are the fundamental social unit in Australian society. However, the composition of Australian families is changing as they both reflect and contribute to broader social change.

While lone-parent families are increasing as a proportion of families with children under 15, most families with children under 15 are two-parent families (around 78 per cent in 2003). In 2003, 2.5 per cent of all families with children under 15 were headed by lone fathers while 19.3 per cent were single mother families. Although cohabitation is increasing, marriage remains the dominant pathway to child-bearing (in 2002, around 69 per cent of mothers who registered a birth were married).

However, the proportion of households made up of a couple with dependent children is decreasing— with the proportions of lone-parent families, couple-only families and single-person households increasing. There are a number of factors contributing to these trends, including structural ageing of the population, the increasing trend of childlessness, longer-term decline in marriage rates and high levels of divorce, separation and relationship instability. Also, the number of blended families and shared-care arrangements for children of separated and divorced parents is increasing.

An emerging issue of concern is the number of children living in jobless families.

Between 1980 and 2004, the number of jobless families increased from 11.6 per cent of families with children to 16.2 per cent of families with children. In 2004 there were 823 700 dependent children living in jobless families—around 16.4 per cent of all dependent children. Of these, 34 per cent were living in couple families and 66 per cent were living with one parent.

There was a two per cent increase in marriages between 2001 and 2002, but against the backdrop of a 10 per cent decrease since 1982. In 2002, marriage rates for the unmarried population were 31 per 1000 unmarried men and 28 per 1000 unmarried women, down from 35 and 32 respectively in 2000. The likelihood of marriages ending in divorce is 32 per cent (based on 1997-99 first marriage rates). In 2001, around half of all divorces involved families with children under 18 years, and 53 400 children under 18 years of age were in families where parents divorced.

Australia’s population is ageing and people are having fewer children later in life. In 2002, Australia’s total fertility rate (TFR) was 1.75 babies per woman. Since 1998, Australia’s TFR has stood between 1.73 and 1.76, down from 1.89 in 1992. Around a quarter of Australian women are now likely to remain childless. Women are having fewer children and those that do generally have them when they are older. The median age of all mothers who gave birth in 2002 was 30.2 years (for fathers the median age at fatherhood was 32.5 years). This shows a steady increase, with the median age of mothers the highest ever recorded. The median age of mothers registering the first birth of their current marriage was 30.1 years. Women giving birth outside a registered marriage were approximately five years younger, the median age being 26.5 years. In comparison with other developed countries, Australia’s TFR sits among the middle-ranked nations. There are notable differences in fertility rates and age of parents at birth within the Australian population. In 2002, the TFR for Indigenous women was 2.19 babies per woman. Fertility is higher for women who live in non-metropolitan areas and TFRs also vary among women according to country of birth. For example, women from China, Vietnam and the Philippines have TFRs of over 2.0 babies per woman.

Roles within families continue to change, especially as women (notably mothers) continue to participate in the paid workforce. In 2003, 56 per cent of women aged 15-65 were in the labour force, making up 44.4 per cent of the total labour force. Many families combine family and work yet women still do most of the caring and other unpaid domestic work. In many cases, families have accessed the growth of part-time and casual employment to help meet family and work commitments. Women in particular often combine child caring responsibilities with part-time paid work. The likelihood of working and the number of hours worked increase as the youngest child ages, and particularly once children reach school age. At the 2001 Census, 30 per cent of sole mothers and over 50 per cent of partnered mothers with a youngest child aged two were in paid work. Of mothers whose youngest child was aged six years, 46 per cent of sole mothers and 65 per cent of partnered mothers were in paid work. Around 62 per cent of women with children (15 years and under) worked part-time.

Over the last two decades there has been an increase in the amount of, and the demand for, workplace arrangements to assist workers with family responsibilities. In 1999, 53 per cent of families with children under 12 years of age, and with at least one parent employed, used family-friendly provisions to care for their children, with mothers more likely than fathers to use family-friendly work arrangements.

Demand for child care is growing. Between 1984 and 1999, the proportion of all children in formal care doubled (from 12 to 24 per cent). Over 540 000 families currently receive Child Care Benefit. In September 2003, there were over 763 000 children using formal, Australian Government-approved child care services.

An area of concern is the increase in child protection notifications and the numbers of children placed in out-of-home care. In 2002-03 there were 12 819 children admitted to out-of-home care across Australia, a slight decrease from the previous year but a continuation of an upward trend. This figure represents only those placements where the state or territory makes a financial payment and does not include unpaid care by relatives. There are no reliable national data on the number of children who are the subject of a child protection order. There are also no national data available on the reasons why children are placed in out-of-home care. Of the children in out-of-home care, most (92 per cent) were in home-based care: 51 per cent were in foster care, 40 per cent in relative/kinship care, and 1 per cent were in some other kind of home-based care. There were generally higher rates of Indigenous children in out-of-home care than was the case for other Australian children.

At June 2003, it is estimated that there were 2 753 623 young people aged 15 to 24 years of age in Australia-just over 300 000 more than in June 2002. Aboriginal and Torres Strait Islander young people constitute about 3 per cent of this total youth population. Approximately 70 per cent of young people live in major cities, and the rest in either inner regional or outer regional and remote areas.

In 2003, the labour market participation rate was 59.5 per cent for young people between 15 and 19 years old, and 81.4 per cent for those between 20 and 24 years old. In 2003, of all those aged between 15 and 19 years old, 4.6 per cent were unemployed and looking for full-time work. For those aged between 20 and 24, this figure was 6 per cent. Both of these figures represented a slight decrease in comparison with 2002. The most notable feature of the working arrangements of young people in recent years has been the increasing proportion of young people working part-time. This trend can be explained by the increased participation rates in education and a growing tendency of combining education and work.

In 2003, the apparent retention rate of full-time school students from Year 7 or 8 to Year 12 was 75.4 per cent compared with 75.1 per cent in 2002. As in previous years, the apparent retention rate for females (80.7 per cent) was significantly higher than the rate for males (70.3 per cent).

Young people are staying in education and living with their parents longer, while delaying marriage or cohabitation and child-bearing. The proportion of those aged 25 to 34 living with their parents increased by 1.2 per cent in the last decade, to 11.9 per cent in 2003. However, the proportion of those aged 20 to 24 living with their parents was 45.1 per cent in 2003, declining by one per cent for the same period.

The majority of young Australians are in good mental and physical health and happy with their lives.1

1. Australia’s Young People: Their Health and Wellbeing. Australian Institute of Health and Welfare, 2003

Social justice and equity impactUnder Outcome 1, particular attention is paid to strengthening families so that they can give their children the best possible start in life. Policies and programs support and strengthen families through family assistance payments, quality child care and other early childhood services, and prevention and early intervention approaches. The needs of rural and regional areas, Indigenous people, people with disabilities, people from culturally and linguistically diverse backgrounds and women are given special attention. Young people are assisted in their transitions to independence through the provision of income support, positive portrayal and promotion of their achievements in the Australian community, and other targeted programs.

Performance highlights and policy outlook

Key achievements included: continuing to deliver support to families through Family Tax Benefit ($12.9 billion), Child Care

Benefit ($1.4 billion) and Child Care Support Program ($190 million)

consulting extensively on the development of the National Agenda for Early Childhood

implementing a range of Early Childhood Initiatives under the first phase of the Stronger Families and Communities Strategy (2000-04)

redesigning the Stronger Families and Communities Strategy with a stronger focus on early childhood development for four additional years of funding (2004-08), and initiating prompt implementation processes

developing the National Plan for Foster Children, Young People and Their Carers with state and territory governments

participating in and providing advice to the Work and Family Taskforce, convened by the Department of the Prime Minister and Cabinet

delivering major initiatives included in the More Help for Families package announced in May 2004, including around $2 billion in payments to families in June 2004, a new $3000 Maternity Payment from July 2004, improved work incentives and an ongoing annual supplement of $600 per child

sponsoring Families Australia for their conference, Globalisation, Families and Work-Meeting the Policy Challenges of the Next Two Decades, and for National Families Week 2004

delivering lasting improvements in the skills and capacities of families and communities in disadvantaged areas through the success of the community-based approach, identifying good examples for other communities to draw on, and establishing a genuine and effective partnership between government, the community sector, academia and business

implementing the Government’s response to the Family Law Pathways Advisory Group’s recommendations, including support for the Family Law Pathways Taskforce’s role in developing a coordinated approach to the implementation of policies and programs for separating families and families in conflict

reviewing the Family Relationships Services Program (FRSP), involving providers and customers. Reviews were released, and considered at a national forum of the program, in June 2004, and are currently being used to inform strategic program development.

contributing to the House of Representatives Standing Committee on Family and Community Affairs Inquiry into Child Custody Arrangements in the Event of Family Separation through a number of written submissions, as well as through evidence at hearings of the committee, and contributing to the development of the Government’s response

hosting the ‘Creating Common Wealth’-Youth Enterprise Development Forum in November 2003. The forum provided the opportunity for business, government, community and young

people to come together to share information, exchange ideas, identify strategies and develop plans of action for young people from the Commonwealth of Nations to create their own sustainable livelihoods. Forty-five Commonwealth countries were represented.

publishing a resource kit— Above and Beyond: Recognising Youth Development in Australia—to help community organisations recognise the skills and achievements that young people gain through their involvement in youth development activities

releasing the final report on the evaluation of the Reconnect program, which found that Reconnect as an early intervention program has been effective in reducing the risk of youth homelessness

consulting extensively during 2003 with the youth sector and interested stakeholders to develop a new Job Placement, Employment and Training (JPET) program selection process and needs analysis. The new selection process commenced in September 2003 and applications closed on 15 January 2004. The outcomes of the process were announced on 14 April 2004.

providing increased support to families—as of 1 January 2004, an additional $79.5 million over four years provided for 10 000 additional outside school hours care places, 2500 family day care places and additional playgroups

redeveloping the Child Care Support Program. The successful redevelopment has been largely due to the enormous contribution to the consultations by child care services, families and individuals with an interest in child care. The new Child Care Support Program was launched in June 2004. Its clear objectives and principles will ensure resources are used efficiently to benefit families and children. An increase of $25 million in funding brings the total funding for the program to $226 million for 2004-05.

by 30 June 2004, approximately 1.3 million parents had registered with the Child Support Agency (CSA), resulting in child support payments of over $2.1 billion for the benefit of some 1.1 million children

CSA has had significant success in helping parents manage their own arrangements, with almost 52 per cent of parents now paying privately; 70 per cent of newly separated parents elect to pay their child support privately

during 2003-04 CSA reversed a previous five-year trend of rising gross maintenance debt levels by successfully reducing domestic debt by $13 million. In particular, extra resources provided to target ‘hard debt’ have resulted in an increase of $19.3 million in child support collections.

CSA has significantly improved both parents’ (payer and payee) levels of satisfaction as measured by its annual Professionalism Survey and the national feedback program. This is also reflected in reduced child support complaints.

CSA has revamped and extended its range of products and services to support parents through the separation process, including the ‘Me and My’ series of books, the Newly Unemployed Separated Parents initiative and the workplace training program ‘Staying Connected’

CSA won a Silver Award for its submission, Supporting Parents through Separation, in the Prime Minister’s Awards for Excellence in Public Sector Management.

Work is required to: continue to work in partnership with community organisations, business, early childhood and

community experts and other levels of government to support a stronger focus on early childhood with strong links to the National Agenda for Early Childhood

finalise the evaluation framework for the renewed Stronger Families and Communities Strategy (2004-08)

finalise the framework of the National Agenda for Early Childhood in consultation with state and territory governments

implement the National Plan for Foster Children, Young People and Their Carers

finalise the development of a new strategic program plan for the Family Relationships Services Program

implement the Government’s response to the House of Representatives Standing Committee on Family and Community Affairs Inquiry into Child Custody Arrangements in the Event of Family Separation with specific attention to the family relationships services dimension and the Child Support Taskforce

continue to implement the More Help for Families measures

finalise the process of harmonising contractual and reporting arrangements for FaCS youth support services

expand CSA’s existing range of products and services, such as the Newly Separated Unemployed Parents initiative and the ‘Me and My’ series of booklets to help parents manage their relationship with their former partner and help to identify issues for new relationships

continue to focus on collection of outstanding child support and improve collections for international cases

deliver more child support payment options and choices for parents through electronic service delivery channels

review and improve parent communication tools to better support parent awareness, choice and flexibility for child support arrangements

implement the new Child Care Support Program including:

– developing transitional arrangements for services to help ensure their continued viability

– working with stakeholders to further develop and publish guidelines relating to the new funding model

– ensuring that program changes are introduced with minimal disruption to children, families and services

– continuing to conduct funding rounds for in-home care and long day care to establish additional child care places in areas of identified high need to maximise choice for Australian families

– establishing an appropriate and robust evaluation framework

finalise the process of harmonising contractual and reporting arrangements for youth support services

establish new JPET program arrangements following the 2003-04 selection process.

Budget measuresThis section reports on the achievements and challenges in implementing Budget measures for which expenses began accruing in 2003-04 and as tabled in the relevant Portfolio Budget Statement or Portfolio Additional Estimates Statement. They are listed by published title and in alphabetical order except where interlinked measures are grouped for ease of reading.

Child support debt collection—additional compliance activityThe Government provided CSA with additional funding of $31 million over four years to enable it to collect $131 million more in child support payments under the Intensive Debt Collection measure. By 30 June 2004, CSA had contacted about 15 100 parents who had a child support debt and

collected $19.3 million more in child support payments for children. In addition, growth in gross maintenance debt has declined.

A key strategy in achieving increased compliance has been the late payment penalty incentive offer. Parents who entered into an agreement to repay their debt within two years and met their ongoing child support liabilities will have their late payment penalties cancelled when the debt is repaid. Twenty-seven per cent of parents contacted had taken up this offer.

Other successful strategies have included implementing a phone-first philosophy, taking a more direct approach and offering parents options to enable them to meet their responsibilities. These strategies are progressively being integrated into other collection activities undertaken by the agency.

Child support improvements—support for unemployed parentsThe Government provided CSA with funding of $11.9 million over four years to support 31 500 newly separated parents who are not living with their children and are receiving Newstart Allowance. The initiative, which commenced in July 2003, aims to improve the motivation and capacity of these parents to return to work by providing them with relationship and parenting support. It is expected to deliver economic outcomes (through earlier return to work resulting in reduced outlays on Newstart Allowance and Family Tax Benefit (FTB), and increased child support payments) and social outcomes (through improved parenting and relationship skills). This is the first time in Australia that the impact of relationship separation on unemployment has been considered and addressed.

Research and consultation with other government agencies, parents and the community sector was undertaken and has informed the development of the range of programs, products and services that are being offered to support these parents. Programs are under way in Brisbane and Melbourne through employment service organisations to explore and develop the most appropriate approach to align jobseeker activities with services aimed at building parenting and relationship skills.

Identification of and contact with this parent segment has proved challenging. Nevertheless, CSA has improved telephone contact by over 25 per cent, and provided written support and information to over 10 000 parents.

Family support-additional family day care placesThe Government provided 2500 additional family day care places in 2003-04 commencing in January 2004. Fifteen hundred further family day care places were announced in the 2004-05 Budget. These new places represent nearly a six per cent increase in the number of family day care places available and were sufficient to meet the current verified demand from service providers. The availability of these extra places will assist many more families to access affordable, quality child care. Access to quality child care helps parents to participate in employment, training, or community activities and to better balance their work and family responsibilities.

Family support—additional outside school hours care placesThe Government provided 10 000 additional outside school hours care places commencing in January 2004. Thirty thousand more outside school hours care places were announced in the 2004-05 Budget. These new places represent a 17 per cent increase in the supply of outside school hours care places and were sufficient to meet the current verified demand from service providers. The availability of these extra places will assist many more families to access affordable, quality child care. Access to quality child care helps parents to participate in employment, training, or community activities and to better balance their work and family responsibilities.

Family support—additional playgroup servicesBuilding on the existing playgroup program, $14.9 million in additional funding over five years was provided to expand playgroup services. This funding provides for 4000 new mainstream playgroups and over 200 supported and intensive support playgroups.

Family Tax Benefit and Child Care Benefit-extension of time for top-up payments and claimsThe Family Assistance Legislation Amendment (Extension of Time Limits) Act 2004 was passed by Parliament on 1 April 2004. This legislative change allows 12 additional months for the lodgment of tax returns for FTB purposes. Families will now have 12 more months in which to receive a top-up to their payments or to claim a lump-sum payment for FTB and their Child Care Benefit (CCB).

The 12-month extension to the time limit will apply to those families who are seeking top-ups or payment for the financial year 2001-02 and onwards.

Men and Family Relationships and Family Relationships Education programs—extended fundingThe Men and Family Relationships (MFR) and Family Relationships Education (FRE) programs received an extension of funding of $25.1 million over four years, beginning 1 July 2003.

The MFR program includes more than 40 community organisations delivering family support services to men in more than 80 locations in rural, regional and metropolitan Australia. Under the FRE program, more than 40 community organisations are funded to provide prevention and early intervention services to families across Australia.

The funds allocated to the MFR and FRE programs in the 2003-04 Budget were used to maintain the existing MFR and FRE services. The MFR services have developed and implemented innovative and effective approaches to working with men to improve individual and family outcomes. The FRE services provide valuable support to many Australian couples at the time they are forming families.

National Illicit Drugs Strategy—Strengthening and Supporting Families Coping with Illicit Drug UseIn the 2003-04 Budget, additional funding of $3.246 million was approved to extend current projects and fund an evaluation of the ‘Strengthening and Supporting Families Coping with Illicit Drug Use’ measure. All projects have been implemented and are expected to be completed by June 2005.

Family support projects include training and skills development of workers, direct support, information and referral assistance for parents, and specific Indigenous drug services.

The evaluation of the measure in October 2003 concluded that projects enhanced the emotional wellbeing of families, improved communication within families and contributed to reducing or preventing drug abuse.

While the implementation of the measure resulted in a wide range of differing projects that were beneficial within the particular state or territory jurisdictions, the evaluation called for a stronger national framework for subsequent programs under the measure.

Changes in program delivery arrangements from July 2004 will direct funding to community organisations. This is expected to lead to smoother implementation of projects and enhanced program management processes.

One-off $600 per child bonus paymentAs part of the 2004-05 Budget, the Government introduced a one-off $600 per child bonus payment for those families eligible for or in receipt of FTB Part A on Budget night. Families with dependent children under 18 in receipt of Youth Allowance on Budget night were also eligible.

Payment was automatically made to 1 960 000 families receiving FTB and Youth Allowance prior to 30 June 2004.

In addition, the Family Assistance Legislation Amendment (More Help for Families-One-off Payments) Act 2004 provides authority for the Minister to establish an administered scheme to make one-off payments to eligible families and carers not included in the initial payments made in June. This scheme closes on 30 June 2007.

Our Universities—income support treatment of Commonwealth Learning ScholarshipsOur Universities—income support treatment of fee-exempt scholarshipsMeasures have also been introduced from 1 January 2004 to facilitate increased higher education participation of students by excluding the value of fee-exempt scholarships provided by higher education institutions and Commonwealth Learning Scholarships from the assessable income of students who receive income support payments. All categories of full fee-exempt scholarships and Commonwealth Learning Scholarships are excluded from the social security income test.

Our Universities—exempt fee-waiver and fee-pay scholarships from social security income testsMeasures have been introduced from Budget night, 11 May 2004, to facilitate increased higher education participation of students by excluding the value of fee-waiver and fee-pay scholarships from the assessable income of students who receive income support payments. This includes scholarships offered in respect of the secondary, vocational education and training, and higher education sectors. Additional income support payments have been made on an ex gratia basis until passage of the legislation. Fifty-six students’ scholarships were exempted under these measures and payments totalling $11 578 were made on an ex gratia basis. The value of all fee-waiver and fee-pay scholarships offered in the secondary, vocational education and training, and higher education sectors is excluded from the social security income test.

Reconnect and Job Placement, Employment and TrainingDuring 2003-04 the Government:

extended the Reconnect program with indexation

provided funding to improve and streamline the administration of Reconnect and the Job Placement, Employment and Training (JPET) program

provided extra funds to maintain service delivery provided through the JPET program in regional Australia.

During 2003-04 current levels of service delivery were maintained for 100 per cent of Reconnect and 98 per cent of JPET services.

Special Needs Subsidy Scheme-additional fundingThe Special Needs Subsidy Scheme (SNSS) received an extension of funding of $25.8 million over four years, beginning 1 July 2003. As at 30 June 2004, a total of 3461 children with high ongoing support needs had been accommodated into mainstream child care with the additional funding.

SNSS provides assistance to approved child care services to employ additional carers to support the inclusion of children with high ongoing support needs into mainstream programs. This includes children with diagnosed disabilities, children undergoing continuing assessment for disabilities, or developmental delay, and refugee children who have been subjected to torture and trauma.

Student Financial Supplement Scheme-repealThe Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme for eligible tertiary students. The SFSS was closed on 1 January 2004. No new loans have been issued since 31 December 2003.

Sugar Industry Reform Program-crisis counsellingThe Government provided $0.3 million in 2003-04 as part of the $5 million package over five years for financial counselling and family support services for families in sugar-growing regions. This measure was announced in the 2004-05 Budget.

Counselling services will be delivered through existing programs administered by FaCS.

Support for Indigenous people—Longitudinal Study of Indigenous ChildrenThe Longitudinal Study of Indigenous Children (LSIC) was announced in the 2003-04 Budget. LSIC will focus on the links between early childhood experiences and life outcomes. In time, the study will provide a data resource that can be drawn on by Australian governments, researchers, service providers, parents and communities.

In 2003-04, a national steering committee, chaired by Professor Mick Dodson, was established to oversee the project. Subsequently a subcommittee to advise on specific issues such as design, content, implementation and findings was established and began development of a community-based design involving working in partnership with Aboriginal and Torres Strait Islander communities. The literature and research relating to Indigenous issues in early childhood has been reviewed to provide informed context for the design.

Throughout the year, the FaCS project team conducted meetings around Australia to consult with Indigenous peoples, communities and organisations in every capital city and at least one regional area of each state and territory. These consultations have informed the decisions of the steering committee and the development of the design.

Youth Allowance—ex gratia payments to former recipients in South AustraliaThe Government provided funding of $0.2 million in 2002-03 and 2003-04 to make ex gratia payments to Youth Allowance recipients who became ineligible for any income support payments when the school-leaving age in South Australia was increased from 15 to 16 years on 1 January 2003. Ex gratia payment recipients received payments until their sixteenth birthday, when they may again be eligible for Youth Allowance.

The ex gratia payment no longer applies as all recipients had turned sixteen by 31 December 2003.

Youth Allowance—waiver of certain debtsThe Government decided to waive certain Youth Allowance debts at a cost of $8.4 million over two years. Debts waived were those created as a result of overpayments associated with the manual reviews undertaken as part of the parental income test (PIT) linking initiative announced in the 2002-03 Budget.

Youth and student assistance-restructured reviewsService profiling of Youth Allowance was implemented from July 2002 and expanded from July 2003. Service profiling of Austudy Payment commenced in April 2004.

Service profiling is a means of identifying which customers need a more focused or targeted level of service to assist them in meeting program outcomes (e.g. correctness of payment, activity test compliance, economic and social participation).

FaCS and Centrelink have worked together to identify customers’ level of risk against program outcomes and the levels and types of customer contacts most appropriate for managing these risks. Service profiling informs staff about the details they need to discuss with customers selected for particular program reviews. Centrelink customer service officers will be able to focus their attention on those customers who require a high level of support or assistance.

Output Group 1.1 I Family assistanceContribution to Outcome 1Family assistance contributes to Outcome 1 by:

providing payments to families to assist with the costs of children, including newborns, in a way that recognises the needs and choices of both single- and dual-income families

helping to support and strengthen families through the provision of services to enhance family relationships and protect against family breakdown, including parenting education and measures to prevent child abuse and neglect.

Strategies provide a system of financial assistance available to most families, recognising changing work

and family responsibilities, with payments structured according to the number and ages of children in the household as well as income

recognise the needs of particular groups, including parents with newborn babies, sole parents, single-income couples and people caring for orphaned children

promote choice-of-delivery mechanisms so families can elect whether they receive their financial assistance as a transfer payment or through the tax system

implement the Stronger Families and Communities Strategy 2004-08 announced in April 2004 with a strengthened focus on early childhood

fund and support the development of the Australian Early Development Index (EDI) — a community measure of child development

progress the National Agenda for Early Childhood and refine the draft framework

fund non-government organisations to provide a range of services such as family relationships education, family relationship skills training and counselling, adolescent mediation and family therapy, children’s contact services, financial counselling, parenting programs, and family support services and playgroups

provide leadership, community education and project funding to reduce child exploitation, abuse and neglect.

Outputs under Output Group 1.1

Child abuse preventionFunding is provided for the following program elements:

Early Intervention Parenting (EIP) — projects aimed at child abuse prevention, improved parenting and strengthening families. Following the review of the EIP program and the Good Beginnings Prototype, a strategic framework for supporting parenting capacity was developed.

This framework is known as the Responding Early Assisting Children (REACH) program; it replaces the EIP and Good Beginnings Prototype.

National Child Protection Clearinghouse—information dissemination on child protection activities and research

Australian Council for Children and Parenting (ACCAP)— provides policy advice to the Minister for Children and Youth Affairs and is also responsible for the biennial National Child Protection Awards.

Double Orphan PensionDouble Orphan Pension is a non-means tested payment for children with at least one deceased parent, who cannot have contact with the other (for example, because that parent is a long-term prisoner or their whereabouts are unknown). Some refugee children may also be considered as double orphans.

Family and youth support (National Illicit Drugs Strategy)The ‘Strengthening and Supporting Families Coping with Illicit Drug Use’ initiative is an early intervention, family-focused component of the wider Tough on Drugs demand-reduction measures of the National Illicit Drugs Strategy. Current family support projects include advice, information, referral and outreach services for parents, training and skills development of workers, and specific Indigenous drug services.

These programs assist in enhancing emotional wellbeing and communication within families and provide opportunities for developing stronger links between families, education, employment and the community.

Family Tax Benefit Part AFamily Tax Benefit (FTB) Part A helps families with the cost of raising dependent children. It is paid to families for children up to 21 years of age and for young people between ages 21 and 24 who are studying full-time (and not receiving Youth Allowance or a similar payment).

Family Tax Benefit Part BFamily Tax Benefit (FTB) Part B provides extra assistance to families with only one main income-earner, including sole parents. It is paid to families for children under 16 years old and for children between ages 16 and 18 studying full-time.

Grants to family relationship support organisationsFunding is provided for the following programs:

Commonwealth Financial Counselling Program

The program funds community organisations to provide access to quality financial counselling services, free of charge, to people on low incomes experiencing financial crisis due to circumstances such as unemployment, sickness, credit overcommitment and family breakdown.

Family Relationships Services Program (FRSP)

The program funds community organisations to provide family relationships services such as education, mediation, therapy, family skills training and counselling. It also provides funding for children’s contact services, specialised family violence services, Men’s Line Australia, the contact orders program, and the Men and Family Relationships Program.

Indigenous Parenting and Family WellbeingEstablished in response to the Bringing Them Home report, this program promotes the importance of strong families among Aboriginal and Torres Strait Islander peoples while increasing parenting

skills and participation in family life. The program funds community organisations to provide a range of culturally appropriate parenting and support programs.

Maternity AllowancesMaternity Allowance is a one-off lump sum paid at around the time of a birth to help meet associated costs. Claimants must be eligible for Family Tax Benefit Part A within 13 weeks of the birth or, for adopted children, within 13 weeks of the child being entrusted into their care where the child was under 26 weeks of age at the date of placement.

From 1 July 2004, a new universal Maternity Payment of $3000 was introduced. This payment will increase to $4000 from 1 July 2006 and $5000 from 1 July 2008.

Maternity Immunisation AllowanceFor children born or adopted before 1 January 2003, Maternity Immunisation Allowance is a one-off lump sum paid for children fully immunised at 18 months. For a child born or adopted on or after 1 January 2003, Maternity Immunisation Allowance is not income-tested. Maternity Immunisation Allowance is paid when eligibility and immunisation requirements are met.

Services for Families with ChildrenThe program includes a range of initiatives to help families with children develop effective parenting skills, confidence and self-esteem. Key elements are:

Aboriginal and Islander Child Care Agencies (AICCA)-provide a range of services focused on children, including alternative care services and placement (fostering and adoption), family reunification and related family wellbeing

playgroups-funding for playgroup associations in each state and territory to assist people to find a playgroup that meets their needs, and for intensive support playgroups in support of disadvantaged families with children experiencing multiple crises

other services for families with children-services and support in health, wellbeing (including child abuse prevention), education and child care.

Stronger Families and Communities Strategy: Families InitiativesThe Stronger Families and Communities Strategy is an Australian Government initiative assisting families and communities to build strength and resilience to enable them to identify and resolve their local issues, manage the impact of social and economic change and explore opportunities for development. The strategy focuses on empowering communities to develop local solutions to local problems. Almost a quarter of the initial projects were in Indigenous communities and more than half in rural and remote communities.

Going forward for the next four years, the new strategy will have particular emphasis on early childhood initiatives and resources that can be used to achieve better outcomes for children and their families.

Performance summary

Key achievements included: providing policy advice to government that led to a package of measures in the 2004-05

Budget that will provide greater assistance to families with the costs of raising children, improve the rewards from working and help to balance work and family responsibilities

drafting legislation to support the introduction and successful passage of the Budget measures providing additional assistance to families, including the new Maternity Payment

working with other Australian Government departments and the Family Assistance Office (FAO) partner agencies for the successful implementation of the Budget measures

passage of the Family Assistance Legislation Amendment (Extension of Time Limits) Act 2004, which extended the timeframe for the payment of FTB top-ups as a result of income reconciliation from one to two years after the end of the income year to which the payments relate

providing assistance to around 130 000 customers through the Family Relationships Services Program

over 21 700 calls to Men’s Line Australia and more than 400 000 visits to their web site (www.menslineaus.org.au)

participation of over 92 000 families in approximately 8100 self-managed playgroups Australia-wide. The initiative to expand playgroups commenced in 2003-04 with an expected increase of 4200 playgroups to be established over the next four years in each state and territory. This number includes mainstream playgroups, and supported and intensive playgroups.

completion of the Early Intervention Parenting and Good Beginnings Prototype review and development of the REACH program framework

commencement of the concurrent Indigenous Parenting and Family Wellbeing (IPFWB) and AICCA reviews to enhance outcomes for Indigenous families

coordination of a two-day workshop on Indigenous child rearing and good practice in service delivery. Participation included 150 representatives from AICCAs and IPFWB service providers nationally.

continuing the successful implementation of the Stronger Families and Communities Strategy.

Work is required to: further develop the Family Relationships Services Program, especially in the context of the

funding of the Government’s response to the House of Representatives Standing Committee on Family and Community Affairs Inquiry into Child Custody Arrangements in the Event of Family Separation

evaluate and implement the findings of the IPFWB and AICCA reviews to improve capacity and governance of organisations and enhance service delivery

complete an evaluation of the Stronger Families and Communities Strategy (2000-04)

provide for ongoing implementation of the REACH program in response to the Early Intervention Parenting review

continue implementing 2004-05 Budget measures in a timely and expeditious manner.

Financial and staffing resources summaryTable 2: Output Group 1.1—Family assistance

Group 1.1: Family assistance

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Administered Expenses (including third party outputs)

Child Abuse Prevention 4 113 3 846 -267 4 187

Grants to Family Relationship Support Organisations (including payments under the Family Law Act 1975 and

27 421 27 217 -204 30 444

Group 1.1: Family assistance

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

the Marriage Act 1961)

Indigenous Parenting and Family Wellbeing 1 869 1 757 -112 1 903

Services for Families with Children 8 159 7 830 -329 10 581

Stronger Families and Communities Strategy: Families Initiatives 23 585 23 585 0 35 986

National Illicit Drugs Strategy-Strengthening and Supporting Families Coping with Illicit Drug Use 0 0 0 2 654

Services for Families with Children SPP 376 374 -2 379

Special Appropriations 0Double Orphan Pension (Social Security (Administration) Act 1999) 2 175 2 165 -10 2 212

Family Tax Benefit (ANTS (Family Assistance) (Administration) Act 1999)c 12 760 061 12 869 904 109 843 13 732 277

Family Assistance Legislation Amendment (More Help for Families-One-off payments) 2004 2 221000 2 222 990 1 990 0

Maternity Allowances (ANTS (Family Assistance) (Administration) Act 1999) 222 294 223 256 962 783 669

Total Administered Expenses 15 271 053 15 382 924 111 871 14 604 292

Price of Departmental Outputs

Policy Advice 26 106 26 111 5 17 192

Purchasing, Funding & Relationship Management 20 295 20 299 4 13 365

Research and Evaluation 11 364 11 366 2 7 483

Service Delivery (Centrelink) 389 712 391 049 1 337 405 275

Service Delivery (other) 11 006 11 005 - 1 11 208

Revenue from Government (Appropriation) for Departmental Output Groups 458 483 459 830 1 347 454 523

FaCS Componentd 57 765 57 776 11 38 040

Group 1.1: Family assistance

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Centrelink Component 389 712 391 049 1 337 405 275

Service Delivery (other) 11 006 11 005 -1 11 208

TOTAL FOR GROUP 1.1 15 729 536 15 842 754 113 218 15 058 815

Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 186 168

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b. Budget prior to additional estimates.

c. Budget and actual expenses relate to fortnightly payments made by the Family Assistance Office through Centrelink. Claims can also be made through the taxation system and are accounted for in the estimates of the ATO.

d. FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Child abuse preventionEffectiveness-capacityNumber of members of child protection email discussion list-552 at 30 June 2004

Number of hits per year on the National Child Protection Clearinghouse web site—929 609

Number of pages downloaded—512 531

Quality—assurancePercentage of completed funded projects meeting objectives/outputs agreed with FaCSApproximately 96 per cent, based on those service providers who completed their contractual obligations

Percentage of funded projects meeting milestones agreed with FaCSApproximately 95 per cent, based on over 45 contracts current in 2003-04

Price$3.8 million

Commentary

The Early Intervention Parenting (EIP) and Good Beginnings Prototype (GBP) programs were reviewed in 2003 to determine whether the focus of the programs was still relevant to and consistent with future policy direction and program priorities.

In its response to the review, FaCS, in consultation with the sector and key stakeholders, developed a new program logic and performance management process known as REACH (Responding Early Assisting Children), to be implemented progressively over the next three years from July 2004.

The programs will continue to support a diversity of services across Australia that assist vulnerable families to meet their child’s wellbeing and development needs.

Thirty-two EIP services that demonstrated their long-term preventative orientation and viability in accordance with the new program principles were approved for funding over the next three-year period (2004-07).

The first steps toward developing a new program logic and performance framework include the streamlining of reporting and accountability requirements and the development of program-wide performance indicators linking REACH to other early intervention and prevention services.

Double Orphan PensionQuantityNumber of customers receiving Double Orphan Pension-1151 as at 25 June 2004

Price$2.2 million

Family Tax BenefitEffectiveness-take-up/coverageNumber of families entitled to Family Tax Benefit who claim and receive their entitlement within the three-year period allowed for their claimAround 2 million families claimed and received the benefit for the financial year 2001-02 by the cut-off date of 30 June 2004.

Quality-access and choicePercentage of customers choosing fortnightly payment compared with end-of-year lump sum through the taxation system or CentrelinkTable 3: Customers choosing fortnightly payment compared with end-of-year lump sum through the taxation system or Centrelink, 2002-03

Customers

Payment type chosen Number Per cent

Centrelink fortnightly payments 2 012 277 92

Centrelink lump-sum payments 63 946 3

Tax Office lump-sum payments 111 158 5

Note: Payment information refers to customers who received assistance for the 2002-03 tax year as at the end of June 2004. Customers who claimed assistance using more than one payment method during the year could be included in more than one of the above categories-for example, a

customer may have received fortnightly payments from Centrelink for part of the year as well as a lump-sum payment through the taxation system.

Quality-assuranceNumber and value of top-ups, overpayments, and nil adjustments created by the reconciliation processTable 4: Number and value of top-ups, overpayments, and nil adjustments created by the reconciliation process, 2002-03

Top-ups: 552 912 averaging $904.60 in value and totalling $500 million

Overpayments: 560 633 averaging $860.80 in value and totalling $483 million

Nil adjustments: 854 498

Note: Information refers to customers who received assistance for the 2002-03 tax year as at the end of June 2004.

Percentage of Family Tax Benefit fortnightly claims finalised within 21 days of lodgment440 479 (90.6 per cent) FTB claims were finalised within 21 days.

QuantityNumber of recipients of FTB

Table 5: Family Tax Benefit—number of customers assisted fortnightly (as at 25 June 2004)

Payment Families Children

Family Tax Benefit Part A

Maximum rate (with income support) 473 444 886 748

Maximum rate (without income support) 142 387 258 891

Broken rate 423 531 912 753

Base rate 721391 1 332 099

Below base rate 46 968 106 339

With Rent Assistance 347847 653 524

Family Tax Benefit Part B

Maximum rate (for sole parents) 595 016 1 004 690

Maximum rate (for couples) 298 842 637 094

Broken rate (for couples) 311 784 655 131

Note: Figures are customers paid on fortnightly basis, based on income estimates. Does not include customers claiming through tax system.

Price$12.9 billion — Family Tax Benefit

$2.2 billion — More help for families—one off payments 2004

CommentaryFamily Tax Benefit Part A customers receive an average of $180 a fortnight, or $4700 a year. In addition, early indications are that the $600 per child supplement is providing approximately $1000 per family after reconciliation. Customers who are not currently receiving a rate greater than zero are excluded from the calculation of average rates of payment. On 30 June 2004, the average estimated 2003-04 taxable income for families receiving Family Tax Benefit Part A was $48 229, excluding sole parents receiving income support.

The increase in the maximum and base rate of Family Tax Benefit Part A announced in the 2004-05 Budget will be payable as a lump sum only upon reconciliation.

Family Tax Benefit Part B customers received an average of $78.86 a fortnight, or $2055.96 a year.

From November 2002, a number of measures under the More Choice for Families package were gradually introduced in order to assist families to reduce the likelihood of incurring an FTB overpayment. As at 25 June 2004, around 574 061 FTB customers had chosen one or more of these options.

Grants to family relationship support organisationsCommonwealth Financial Counselling Program CostAverage cost per customer-Estimate $200 per customer

Effectiveness-adequacyPercentage of customers whose problem was resolved-Approximately 50 per cent

Percentage of total customers with improved ability to manage financial affairs in the futureApproximately 70 per cent

QuantityNumber of customers-Approximately 14 000

CommentaryFinancial counsellors can help customers by assisting them in negotiating with creditors; advocating on their behalf; looking at options and explaining what they can do in relation to outstanding bills; explaining the debt recovery process and helping them to take the appropriate course of action; assisting them to develop a budgeting plan to suit their circumstances; helping them gain financial management skills; providing information in relation to such things as mortgages, housing, residential tenancy issues, bankruptcy; and referring them to other appropriate services.

Family Relationships Services Program (FRSP)CostAverage cost per session and per customer

Approximately $160 per session and $300 per customer

Effectiveness-capacity

Percentage of customers recording improvement in their presenting relationship issue

Approximately 90 per cent based on intended customer benefit ratings reported in departmental performance data for 2003-04

Quality-assurancePercentage of service providers meeting Family Quality Information Strategy (FAMQIS) Tier 1 standards

At the end of 2003-04, 102 organisations funded through the program were required to meet the quality standards contained in the approval requirements. During 2003-04, a sample of 17 FRSP organisations has been independently assessed for compliance with the standards. All organisations were either fully or partially compliant, and FaCS is working with the partially compliant organisations to achieve full compliance.

QuantityNumber of sessions- provided-Approximately 225 000

Number of customers-Approximately 110 000

CommentaryThe future directions of the FRSP will be shaped by the findings of an evaluation of the program, which was completed in June 2004. It found the program, in general, had achieved its aims and that 94 per cent of customers reported high levels of satisfaction with FRSP services:

Customers agreed that access to the FRSP had helped them with relationships issues they were experiencing at the time.

Customers of subprograms aimed at child-related issues had very positive attitudes toward the services received.

The evaluation also suggested broad program management changes, including development of a performance management framework and devolution of program management responsibilities to the FaCS state and territory office network, which will be implemented over the next financial year.

Total price$27.2 million

Indigenous Parenting and Family WellbeingEffectiveness-capacityPercentage of completed funded projects assessed as meeting the relevant objectives of the Indigenous Parenting and Family Wellbeing (IPFWB) initiative

Approximately 90 per cent of projects

This figure is based on the information provided by services as part of the review of the IP&FWB program. The figure is indicative of a small number of projects having a focus that is outside of or marginal to the program objectives, not of projects failing to provide a quality service.

Quality-assurancePercentage of completed funded projects delivering outputs agreed with FaCS

Approximately 80 per cent

Percentage of funded projects meeting milestones agreed with FaCS

Approximately 80 per cent

Price$1.8 million

CommentaryThe Indigenous Parenting and Family Wellbeing initiative is one of the programs established in response to the Bringing Them Home report. The initiative builds capacity in families with children by:

building on existing strengths, assets and capacities of Indigenous families and communities, reflecting the value of positive role models and successful approaches

giving urgent attention to initiatives that target the needs of children and young people, particularly in the areas of leadership training, self-esteem building, awareness of one’s culture and family, and the prevention of family violence.

A review of the IPFWB program commenced in February 2004 and will continue until the end of July 2004. The review is primarily concerned with the accessibility of the target group (that is, people affected by past separation policies) and the effectiveness of interventions, with the aim of enhancing outcomes for Indigenous families.

For the period February to June 2004 the consultants’ progress report identified community self-determination and holistic integrated approaches as key factors in sustaining engagement and producing successful outcomes.

Maternity AllowancesEffectiveness-targetingPercentage of customers paid Maternity Immunisation Allowance for fully satisfying the immunisation requirement

201 237 customers (98.8 per cent) fully satisfied immunisation requirements.

QuantityNumber of customers receiving Maternity Allowance

209 218 customers in respect of 211 589 children

Total number of customers receiving Maternity Immunisation Allowance

203 658 customers in respect of 205 431 children

Price$223.3 million

CommentaryIn the 2004-05 Budget, the Government announced that from 1 July 2004 a new universal Maternity Payment of $3000 would be available to all families on the birth or adoption of a baby. This new payment will be available to all families, regardless of the family’s income. It will increase to $4000 in July 2006 and to $5000 in July 2008. The payment will replace the existing Maternity Allowance and the Baby Bonus, with recipients of the Baby Bonus maintaining their entitlement under that program until 2014. Around 250 000 families are expected to benefit from this new payment each year.

The current Maternity Immunisation Allowance continues and is no longer income-tested for babies born on or after 1 January 2003, but continues to be subject to immunisation requirements.

Services for Families with ChildrenEffectiveness-capacityNumber of hits per year on the national playgroups web site-11 000

Percentage of families with children under five years of age participating in playgroups Approximately 15 per cent

Quality—assurancePercentage of funded projects meeting milestones agreed with FaCS

About 100 per cent of playgroups; about 90 per cent of Aboriginal and Islander Child Care Agencies (AICCA)

Price$7.8 million

CommentaryUnder the services for families with children appropriation, programs such as AICCAs and the playgroups program (including intensive support playgroups) were funded. In addition, funding was provided for 33 other projects to help families with children develop their parenting skills, confidence and self-esteem.

Playgroups—Around 92 000 families currently access about 8100 self-managed playgroups. Intensive support playgroups continue in Queensland, New South Wales, South Australia and the Northern Territory.

AICCAs—A review of the Australian Government-funded AICCAs program commenced in April 2004 and will continue through to December 2004. The review intends to enhance the outcomes for Indigenous families and build the focus on early intervention and prevention in the context of the National Agenda for Early Childhood. The review will make recommendations for further action to address issues of organisational performance management and reporting to better support the AICCAs and to enhance accountability to FaCS.

Stronger Families and Communities Strategy: Families InitiativesEffectiveness—capacityFamily participation in communities increases as indicated by:

number of stakeholders participating in activities

21 080 individuals participated in Stronger Families Fund and Early Intervention projects.

increased networks

1357 new community groups or organisations were involved in Stronger Families Fund and Early Intervention projects resulting in 1131 new networks being established.

Quality-access and choiceServices to be provided in areas of identified priority and targeting high-need groups

100 per cent of services under the Stronger Families Fund and Early Intervention projects have been provided in areas of identified priority, targeting high-need groups. These include multicultural and Indigenous groups, people with disabilities and teenage parents.

Quality—customer satisfactionMechanisms in place to monitor customer feedback (satisfaction and complaints)

120 mechanisms have been put in place, including questionnaires, evaluation forms, surveys and focus groups.

QuantityNumber and range of resources/materials developed

428 resources/materials have been developed, including books, videos, parenting leaflets, newsletters, pamphlets, posters and information on web sites.

Number of participants—8530 participants enrolled in training courses.

Number of people assisted—7390 participants were assisted by completing training courses. Number of research projects undertaken—94

Number of services and programs provided

146 services and programs were provided, including parenting programs, children activities, family activities, playgroups, literacy programs, parent-child relationship programs, volunteer training, outreach programs and mentoring.

Numbers of communication mechanisms/forums in place—490

Volunteer Small Equipment Grants QuantityNumber of grants issued—3487

Number of volunteers participating in projects—Estimated 104 800

Note

Volunteer Small Equipment Grants are also made under the Stronger Families and Communities Strategy’s Communities Initiatives that are reported in Output Group 2.2. The quantity figures reported above for such grants under the Stronger Families and Communities Strategy’s Families Initiatives include all those made under this strategy.

Total price$23.6 million 34 FaCS Annual Report 2003-04 I Volume 2

CommentarySince the launch of the Stronger Families and Communities Strategy in April 2000 around $200 million has been expended on nearly 700 projects in both the Families and Communities initiatives. These projects comprised:

198 early childhood programs

98 parenting skills programs

51 relationship skills programs

188 mentoring and leadership programs

99 community-building programs

63 volunteering programs.

Almost a quarter of the projects have been delivered in Indigenous communities and more than half in rural and remote communities.

A review during 2003 found that there were a number of positive outcomes, including the community- driven, flexible and participatory approach to identifying local projects. There were

also areas that could be improved, including the need for less complex selection criteria, clearer timeframes for processing applications and a stronger focus on key Australian Government priorities.

To achieve their outcomes, a number of projects provided training courses that, in total, assisted over 7000 participants. Some examples of the types of training courses include positive parenting; Indigenous courses aimed at nutrition, cooking, family values and anger management, parenting, relationship skills and drug awareness courses for parents with young families; introduction to volunteering; time management for managers of volunteers; being an effective member of a committee; community information certificate course; and financial counsellor training.

In addition to training courses, over 90 research projects were undertaken, the majority of which were action research projects. The participation of all those involved ensures that learning evolves and improves and that everyone has a say and a full understanding of the project.

The evaluation of the strategy will contribute to the evidence base for strengthening families and communities in Australia. Results based on project outcomes continue to demonstrate that the majority of completed Families Initiatives projects have achieved most of their objectives, with half of these projects exceeding their original expectations.

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 1.1, 3.0 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

791 ministerial submissions and other written briefings or advice prepared; 2418 ministerial replies to correspondence completed

Price$26.1 million

Purchasing, funding and relationship managementQuality—assuranceFaCS ensures that service providers meet terms and conditions of funding

Service agreements/contracts that meet legislative, government policy and departmental requirements are in place with all service providers

Although the Tax Office and the Health Insurance Commission (HIC) played an active role in family payment delivery in 2003-04 as part of the Family Assistance Office (FAO), Centrelink

continued to be the main provider for family payments. Centrelink delivered these payments in compliance with the terms and conditions of the Business Partnership Agreement with FaCS.

Business agreements that meet legislative, government policy and departmental requirements have been developed with Centrelink, the Tax Office and the HIC to deliver the FAO program and payments.

QuantityNumber of business agreements under management-3

Number of contracts or service agreements under management

Details of projects funded under the Stronger Families and Communities Strategy are provided in Output Group 2.2.

FaCS had 102 contracts or service agreements with community organisations for delivery of services to the community under the Family Relationships Services Program, and 20 contracts or service agreements with organisations and individuals for the provision of services to FaCS to support the program.

These contracts or services agreements were for delivery of services to the community through approximately 400 outlets.

Number of service providers under management

During the 2003-04 year, 102 service providers were contracted to deliver services to the community on behalf of FaCS.

Family and youth support (National Illicit Drugs Strategy—NIDS)QuantityNumber of families assisted—Due to the timing of the implementation of many of the projects, performance data are not yet available. Final reports are expected at the end of July 2005.

Number of requests for assistance—Due to the timing of the implementation of many of the projects, performance data are not yet available. Final reports are expected at the end of July 2005.

CommentaryIn the 2003-04 Budget, additional funding of $3.246 million was approved to fund an evaluation of the ‘Strengthening and Supporting Families Coping with Illicit Drug Use’ measure and to extend current projects or implement new projects. All projects have been implemented and are expected to be completed by June 2005.

The evaluation of the measure in October 2003 concluded that it offered benefits in a range of areas, including enhancing the emotional wellbeing of families, improving communication within families and ultimately reducing or preventing drug abuse.

While its broad implementation resulted in a wide range of differing projects that were beneficial within the particular state or territory jurisdictions, the evaluation called for a stronger national framework for subsequent programs under the measure.

Changes in program delivery arrangements from July 2004 will result in direct funding to community organisations. This is expected to lead to smoother implementation of projects and enhanced program management processes.

Total price$20.3 million

Research and evaluationQuality—assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

There was a consistently high standard of research and evaluations during 2003-04. It was timely, objective, and methodologically sound.

QuantityMajor pieces of research and evaluation completed-3

Price$11.4 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS

Services were delivered as agreed.

Quality-customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’.

In 2003-04, the Integrated Review System indicated that an estimated 202 882 family assistance reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $2 980 657, and upward variations resulted in fortnightly increases of $625 326. The debts totalled $8 169 325. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.

Quality-customer satisfactionPercentage of reviews and appeals for family assistance payments where the original decision is changed

Table 6: Reviews and appeals-Output Group 1.1, 2003-04

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Payment type

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Double Orphan Pension

20 20 6 50 1 0

Family Allowancea

115 30 44 23 11 9

Family Tax Benefit Part A

2069 26 473 29 79 16

Family Tax Benefit Part B

588 18 138 34 16 19

Family Tax Benefit

3486 26 759 27 180 8

Family Tax Payment

45 33 10 40 3 0

Maternity Allowance

204 16 54 11 5 60

Maternity Immunisation Allowance

45 38 4 25 1 0

a. Figures for Family Allowance include reviews relating to former Additional Family Payment, which ceased on 1 January 1996.

Low number of complaints relating to Family Assistance Office (FAO) service delivery

7687 complaints were received relating to FAO service delivery as at 30 June 2004. This represents a low number of complaints compared with the total number of FAO customers (around 2 million).

QuantityNumber of FAO claims received by each of the partner agencies: HIC, Tax Office and Centrelink

HIC 126 876; Centrelink 1 178 845; and Tax Office 113 549

Total number of FAO outlets

569 sites: 321 Centrelink customer service centres; 226 Medicare office sites; and 22 Tax Office access sites

Price$391.1 million — Centrelink

$11.0 million—other

Output Group 1.2 I Youth and student supportContribution to Outcome 1Youth and student support contributes to Outcome 1 by:

improving the capacity of young people to undertake and participate in education, training or work by supporting flexible activity options and greater financial incentives

helping low- to middle-income families through the provision of income support for young people seeking work or undertaking education and training

improving the life prospects of young Australians by successfully engaging young people, helping to enhance their self-esteem and improving the profile and contribution of young people in the community

developing new partnership arrangements within and across levels of government to support innovations in youth and family support arrangements for young people’s transitions to independence and adulthood

targeting assistance to young people, particularly those at risk of failing to make successful transitions to independence

enhancing understanding of and building a stronger evidence base concerning key issues and social trends that impact on families and young people.

Strategies providing income support through Youth Allowance to young people to assist them to complete

their education and make the transition to employment, using processes that are simpler, more efficient and better targeted to individual circumstances

providing support through Austudy Payment for students aged 25 and older to assist them to complete their education and improve their competitiveness in the labour market

managing a range of programs that seek to assist disadvantaged young people (particularly those who are homeless or at risk of homelessness), improve their level of engagement and help them overcome barriers to participation in family, work, education and training:

– Transition to Independent Living Allowance

– Reconnect

– Job Placement, Employment and Training program

– Mentor Marketplace

– Youth Activities Services/Family Liaison Workers program

managing the Green Corps program, which provides young people with the opportunity to work on environmental and heritage conservation projects and develop skills

implementing Simple Service Solutions and the Youth Servicing Strategy to ensure all young Australians obtain the information and services they need, in a timely and joined-up manner, to move ahead on their pathways to greater independence

working in partnership with other stakeholders, including communities and state and territory governments, in confronting difficulties experienced by young people who are disconnected (or at risk of becoming disconnected) from their family, community, education and/or employment

creating opportunities for and promoting the active engagement and greater participation of young people in community activities, including through National Youth Week

raising the profile and positive image of young people in the community

facilitating and undertaking research on families and young people in order to inform policy and program development

adopting a whole-of-government approach to better recognise and utilise services provided outside the FaCS portfolio.

Outputs under Output Group 1.2

Austudy PaymentAustudy Payment is available to eligible students aged 25 years and over who are undertaking full-time study or training. It was introduced on 1 July 1998.

Fares AllowanceFares Allowance reimburses travel costs incurred by eligible tertiary students receiving Youth Allowance, Austudy Payment or Pensioner Education Supplement (PES) who are required to live away from home while studying.

Green CorpsGreen Corps provides young people between 17 and 20 years of age with the opportunity to conserve, preserve and restore Australia’s natural environment and cultural heritage. It is a voluntary youth development and environmental training program designed to provide participants with personal development, skill development and improved connections with their communities.

Job Placement, Employment and Training program (JPET)JPET assists young people aged 15 to 21 who are homeless or at risk of homelessness to overcome personal and social barriers and engage more fully in the life of their communities in order to achieve greater social and economic participation.

Mentor MarketplaceMentor Marketplace is a mentoring program that builds on the effectiveness of mentoring by establishing new mentoring activities and assisting the growth of successful existing projects. It encourages use of mentoring to improve outcomes for young people, particularly those at greatest risk of disconnection from their families, community, education and work.

ReconnectReconnect is an early intervention program that seeks to improve the level of engagement in family, work, education and the community of young people who are homeless or at risk of homelessness.

Student Financial Supplement SchemeThe Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme for eligible tertiary students. The SFSS was closed on 1 January 2004.

Targeted Youth Assistance ProgramThe program is an initiative that develops and delivers innovative, community-based servicing responses to the needs of young people in transition. The program contracts with community organisations and local, state and territory governments to deliver services on the Australian Government’s behalf through pilots such as the Innovative Collaborative Youth Servicing (ICYS) pilots.

Transition to Independent Living AllowanceThe allowance provides one-off assistance to help young people make the move from state care to independent living.

Youth Activities Services and Family Liaison Workers programThe services are an early intervention and prevention program that provides innovative structured activities and positive peer support programs after school, over the weekend and during vacations for young people in disadvantaged areas. It also provides practical support and guidance to young people and their families to help them deal with difficulties such as family conflict and lack of communication, and refers them to specialist services as required.

Youth AllowanceYouth Allowance is available to eligible young people who are studying, seeking employment or preparing for paid employment.

It seeks to encourage young people to choose further education or training over job search if they do not have sufficient skills to obtain long-term employment, and to undertake a range of activities that will promote entry into employment.

Performance summary

Key achievements included: enhancing Centrelink systems to allow linking of Youth Allowance customers with parent and

sibling records to ensure young people are receiving the right rate and that payment is going to those families who are most in need

commencing, as an industry partner and one of the major funding providers, an Australian Research Council Linkage Grant project of five years’ duration on issues concerning intergenerational transmission of welfare dependence in Australian families, to be conducted by the Australian National University in cooperation with other research institutions

hosting the ‘Creating Common Wealth’—Youth Enterprise Development Forum on the Sunshine Coast, Queensland from 10 to 13 November 2003, which provided the opportunity for business, government, community and young people to come together to share information, exchange ideas, identify strategies and develop plans of action for young people from the Commonwealth of Nations to create their own sustainable livelihoods

releasing the publication Living Choices: The Australian Government’s Commitment to Young People, which provides details of more than 300 programs, delivered by 16 Australian Government agencies, that target young people or that young people can access

delivering 170 Green Corps projects nationally with approximately 1700 participants, aged 17-20

completing the JPET program needs analysis and selection process, and the contracting of continuing and new service providers

releasing the evaluation of the Reconnect program, which found that Reconnect intervention resulted in significant positive outcomes for young people and their families

conducting an evaluation of the Youth Activities Services (YAS) and Family Liaison Workers (FLW) program, and continuing to review the findings

fostering good practice in youth services through the delivery of good practice forums nationally for the Reconnect and YAS and FLW programs

implementing, through 21 non-government organisations, the Transition to Independent Living Allowance (TI LA) for young people leaving state care

releasing Above and Beyond: Recognising Youth Development in Australia, a tool kit to help community organisations recognise the skills attained by young people participating in youth development activities.

Work is required to: further develop verification and monitoring processes to ensure that eligible Youth Allowance

customers receive the correct rate of payment and further reduce the incidence of overpayment

deliver Mentor Marketplace projects through a number of organisations in 2004-05 and undertake an evaluation of the program

establish new JPET program arrangements following the 2003-04 selection process

implement a new youth programs performance framework

implement the recommendations from the Reconnect and YAS and FLW program evaluations

conduct an evaluation of the TI LA program.

Financial and staffing resources summaryTable 7: Output Group 1.2—Youth and student support

Group 1.2: Youth and student support

(A)Budgeta

2003-04$’000

(B)Actual

2003-04$’000

Variation (column B

minus column A)

$’000

Budgetb

2004-05$’000

Administered Expenses (including third party outputs)

Ex gratia payments to former Youth Allowance recipients affected by the increase in the school leaving age in South Australia 20 6 -14 0

Green Corps23 520 23 519 -1 23 944

Job Placement, Employment and Training Program 19 400 19 239 -161 20 138

Mentor Marketplace1 372 1 254 -118 2 250

Reconnect (Youth Homelessness Early Intervention) 20 079 20 054 -25 20 909

Targeted Youth Assistance Program 100 100 0 0

Transition to Independent Living Allowance 2 410 1 699 -711 2 710

Youth Activities Services6 923 6 886 -37 6 863

Special Appropriations

Austudy Payment (Social Security (Administration) Act 1999) 265 302 258 848 -6 454 271 780

Fares Allowance (Social Security (Administration) Act 1999) 1 400 1 176 -224 1 405

Student Financial Supplement Scheme (Social Security

239 649 65 423 -174 226 217 385

Group 1.2: Youth and student support

(A)Budgeta

2003-04$’000

(B)Actual

2003-04$’000

Variation (column B

minus column A)

$’000

Budgetb

2004-05$’000

(Administration) Act 1999)

Youth Allowance (Social Security (Administration) Act 1999) 2 252 851 2257447 4 596 2 325 861

Total Administered Expenses 2 833 026 2 655 651 -177 375 2 893 245Price of Departmental Outputs

Policy Advice4 382 4 383 1 5 584

Purchasing, Funding & Relationship Management 16 127 16 130 3 20 551

Research and Evaluation2 288 2 288 0 2 917

Service Delivery (Centrelink)232 324 233 121 797 241 778

Service Delivery (other)1 407 1 406 -1 1 406

Revenue from Government (Appropriation) for Departmental Output Groups 256528 257 328 800 272 236FaCS Componentc

22 797 22 801 4 29 052

Centrelink Component232 324 233 121 797 241 778

Service Delivery (other)1 407 1 406 -1 1 406

TOTAL FOR GROUP 1.2 3 089 554 2 912 979 -176575 3 165 481Staffing Years (Number) 2003-04 2004-05FACS (including the Social Security Appeals Tribunal)

243 216

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b. Budget prior to additional estimates.

c. FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Austudy PaymentEffectiveness-adequacy

Maximum weekly payments to recipients-as a percentage of the minimum federal award wage

Table 8: Austudy Payment-maximum weekly payments to recipients as a percentage of minimum federal award wage, 2003-04

Family status Min. award wage per week ($)

Austudy rate per week ($)

Percentage (%)

Single, no children 467.40 159.25 34.07

Single, with children 467.40 208.70 44.65

Partnered, no children

467.40 159.25 34.07

Partnered, with children

467.40 174.90 37.42

Note: Federal safety net minimum wage: $467.40 (from May 2004).

Maximum weekly payments to recipients- index of real value

Table 9: Austudy Payment-maximum weekly payments to recipients-index of real value, 2000 to 2004

Family status 2000 2001 2002 2003 2004

Single, no children 98 100 101 100 101

Single, with children—1 child under 5 years 98 107 109 108 109

Single, with children—with Rent Assistance 98 107 109 108 109

Couple, no children 98 100 101 100 101

Couple, with children—1 child under 5 years 98 110 112 111 112

Couple, with children—with Rent Assistance 98 110 111 111 111

QuantityNumber of Austudy Payment customers assisted at June 2004-35 026

Price$258.8 million

Fares AllowanceQuantityNumber of customers assisted-5721

Price$1.2 million

Green CorpsEffectiveness-capacity

Percentage of young people participating who are in further education or training three months after the program is completed

in education or training: 19 per cent

in employment: 51 per cent.

Data are for rounds 28, 29 and 30 of the Green Corps program. Data for remaining rounds concluding in 2003-04 are not yet available.

Quality—access and choicePercentage of young people who complete their project

80 per cent for rounds 28, 29, 30 and 31; this includes participants who left the program to take up education, training or employment opportunities.

Data for remaining rounds concluding in 2003-04 are not yet available.

Quality—customer satisfactionPercentage of young people completing a project who are satisfied with training provided as determined by exit surveys—91 per cent satisfaction for the most recent rounds (28-30)

QuantityNumber of projects funded—174

Number of young people participating—1 740

Price$23.5 million

CommentaryGreen Corps is continuing to build on its success in assisting young people by helping to conserve Australia’s environment and preserve our heritage. This successful program is on track with 340 projects approved for 2002-03 to 2003-04. Green Corps will deliver 170 additional projects across Australia in 2004-05.

Job Placement, Employment and Training Program (J PET)Effectiveness-capacityPercentage of young people participating who achieve increased readiness for employment or further study during at least a three-month period under JPET-67 per cent

Quality—assuranceDepartment ensures providers meet terms and conditions of funding contract

No JPET service was ceased on the basis of contractual non-compliance.

Quality—customer satisfaction Service provider and customer satisfaction

Under development; project reporting to commence from 1 July 2004.

QuantityNumber of young people assisted-13 744

Of this figure, 1492 young people were from culturally or linguistically diverse backgrounds and 2041 identified as being Indigenous.

Table 10: JPET customers by living circumstances, 2002-03

Living circumstances Number

Homeless 3615

At risk of being homeless 8397

Refugee 547

In care or state ward 762

Has been an offender 2933

Price$19.2 million

CommentaryDuring 2003 FaCS undertook extensive consultations with the youth sector and interested stakeholders to develop a needs analysis and new selection process for the Job Placement, Employment and Training program (JPET).

The JPET 2003 needs analysis was developed with input from an independent working group that included representatives external to FaCS with high-level data expertise and extensive experience in the community services sector. The outcomes of the needs analysis were published in the JPET 2004 selection document, released in September 2003.

The JPET 2004 selection process commenced in September 2003; applications closed on 15 January 2004. Applicants were advised of the outcome on 2 April, with a public announcement on 14 April 2004.

The program target is to assist 14 000 young people; the program achieved 98 per cent of this target in 2003-04 (13 744 young people were assisted).

Mentor MarketplaceQuantityNumber of young people assisted

Mentor Marketplace projects began operation in June 2003. It is estimated that 1000 young people received mentor support in 2003-04.

Price$1.3 million

ReconnectEffectiveness-early interventionPercentage of customers with a positive change in their overall situation

Of the Reconnect participants who consented to participate in the Reconnect data collection, some 76 per cent reported an improvement in their overall situation at the end of their Reconnect support period.

Percentage of customers with an improved level of engagement

Table 11: Reconnect—percentage of customers with an improved level of engagement,2003–04

Improved engagement with

Family Education Training Employment Community

Customers (percentage) 65 49 51 44 58

QuantityNumber of people assisted:

Individual Reconnect cases — 4898

Group customers —7987

Price$20.1 million

CommentaryAn evaluation of the Reconnect program was completed in 2003-04. The principal finding was that Reconnect intervention resulted in significant positive outcomes for young people and their families.

Student Financial Supplement SchemeQuantityNumber of customers assisted-29 596 Price

$65.4 million

CommentaryThe Student Financial Supplement Scheme ceased from 1 January 2004 in response to increasing levels of bad and doubtful debt and reduced take-up of loans under the scheme.

Targeted Youth Assistance ProgramEffectiveness-targetingPercentage of individual contractual milestones achieved

Targeted Youth Assistance Program providers achieved their contracted performance milestones to the satisfaction of FaCS in 100 per cent of cases in 2003-04.

Price$0.1 million

CommentaryThe Innovative Collaborative Youth Servicing (ICYS) pilots received all remaining contracted payments by the end of the 2003-04 financial year, in recognition of satisfactory performance against contracted milestones. No further payments are required during the 2004-05 year.

Transition to Independent Living AllowanceQuantityNumber of young people assisted-556

Price$1.7 million

CommentaryThe Transition to Independent Living Allowance (TILA) program was fully implemented in 2003-04 and is now successfully operating. A lapsing program review of the TILA program will be undertaken in 2004-05.

Youth Activities Services (YAS) and Family Liaison Workers (FLW) programEffectiveness-adequacyPercentage of young people and YAS service providers reporting positive outcomes from participation in YAS activities-75.5 per cent

Percentage of young people, young people’s families and FLW service providers reporting positive outcomes from contact with the FLW program-78 per cent

QuantityNumber of contacts with young people through YAS program activities-127 609

Number of young people engaged through FLW activity-2495

Number of families engaged through FLW activity-290

Price$6.9 million

CommentaryAn evaluation of the YAS and FLW program was completed in April 2004. The department is considering the findings.

Youth AllowanceEffectiveness-adequacyMaximum weekly payments to recipients as a percentage of Male Total Average Weekly Earnings (MTAWE)

Table 12: Youth Allowance-maximum weekly payment to recipients as a percentage of Male Total Average Weekly Earnings (MTAWE), 2003-04

Youth Allowance rate per week ($)

Percentage of MTAWE

Single, under 18, at home 87.15 9.7

Single, under 18, away from home

159.25 17.8

Single, over 18, at home 104.85 11.7

Single, over 18, away from home 159.25 17.8

Single, with children 208.70 23.3

Partnered, no children 159.25 17.8

Partnered, with children 174.90 19.6

Ratios of minimum wages to single rates

Table 13: Youth Allowance—maximum weekly payments to recipients as a ratio to minimum federal award wage, 2003–04

Age

Minimum award wage per week ($)

At home rate

Away from home single/couple, no

children rateSingle, with children rate

Couple, with children rate

YA rate per

week (S)

Ratio

YA rate per week

($) Ratio

YA rate per

week (S)

Ratio

YA rate per

week ($) Ratio

15 186.96 N/A N/A 159.25 1.2:1 208.70 0.9:1 174.90 1.1:1

16 233.70 87.15 2.7:1 159.25 1.5:1 208.70 1.1:1 174.90 1.3:1

17 280.44 87.15 3.2:1 159.25 1.8:1 208.70 1.3:1 174.90 1.6:1

18 327.18 104.85 3.1:1 159.25 2.1:1 208.70 1.6:1 174.90 1.9:1

19 373.92 104.85 3.6:1 159.25 2.3:1 208.70 1.8:1 174.90 2.1:1

20 420.66 104.85 4.0:1 159.25 2.6:1 208.70 2.0:1 174.90 2.4:1

21+ 467.40 104.85 4.5:1 159.25 2.9:1 208.70 2.2:1 174.90 2.7:1

Note: Federal safety net minimum wage: $467.40 (from May 2004).

Maximum weekly payments to recipients—index of real value

Table 14: Youth Allowance—maximum weekly payment to recipients—index of real value, 2000 to 2004

2000 2001 2002 2003 2004Single under 18

At home98 100 101 100 101

Away from home98 100 101 100 101

With Rent Assistance98 101 102 101 102

Single 18+

At home98 100 101 100 101

Away from home98 100 101 100 101

With Rent Assistance98 100 101 100 101

Single, with children

1 child under 5 years98 107 109 108 109

With Rent Assistance98 107 109 108 109

Couple, with no children98 100 101 100 101

With Rent Assistance98 100 101 101 102

Couple, with children

1 child under 5 years98 110 112 111 112

With Rent Assistance98 110 111 111 111

Effectiveness-independenceNumber and percentage of Youth Allowance customers who achieved independence through workforce participation

77 025 Youth Allowance customers were assessed as independent in June 2004 because of previous workforce participation. They represented 20.2 per cent of all Youth Allowance customers and 52.8 per cent of all independent customers (customers not dependent on parents and therefore not subject to the parental means test). Of these customers, 70 934 (92.1 per cent) achieved independent status through minimum earnings, 3004 (3.9 per cent) through full-time work, 2819 (3.7 per cent) through part-time work, and 268 (0.3 per cent) through a special safety net criterion.

Number and percentage of Youth Allowance customers undertaking full-time or part-time study or training

At June 2004, 297 140 (77.8 per cent) Youth Allowance customers studied full-time. In addition,

1116 Youth allowance customers undertook part-time study to complement their job-search activities. This group represented 1.3 per cent of non-full time students receiving Youth Allowance. Full-time and part-time students collectively represent 78.1 per cent of all Youth Allowance customers.

Number and percentage undertaking solely job search

At June 2004, 50 958 Youth Allowance customers solely undertook job search, representing 13.3 per cent of the total Youth Allowance population and 60.2 per cent of Youth Allowance non-full time students.

Effectiveness-take-up/coverageNumber and percentage of all full-time students aged 16-24 years receiving Youth Allowance

Comparing income and support data with ABS data presents definitional problems, and there are differences in the applicable published age cohorts. However, administrative data suggest Youth Allowance customers represent around 31.5 per cent (289 686 of 919 700) of the population ‘potentially eligible’ for Youth Allowance as full-time students. The potentially eligible population refers to all those aged 16 to 19 studying full-time and students aged 20-24 at a tertiary institution.

Effectiveness-targetingPercentage of customers on a part rate of payment due to the parental means test

At June 2004, Centrelink assessed 235 788 Youth Allowance customers as dependent and subject to the parental means test. Of these 40 241 received a reduced rate due to their parents’

income or actual means, representing 10.5 per cent of all Youth Allowance customers and 17.1 per cent of dependent Youth Allowance customers.

Percentage of customers with private earnings

In the fortnight ending 18 June 2004, 19.3 per cent (16 369) of Youth Allowance non-full time students had private earnings. In the same fortnight 33.0 per cent (98 104) of all Youth Allowance full-time students had private earnings.

Average amount of private earnings per fortnight

In the fortnight ending 18 June 2004, 19.3 per cent (16 369) of Youth Allowance non-full time students had private earnings. In the same fortnight, 33.0 per cent (98 104) of all Youth Allowance full-time students had private earnings.

Table 15: Youth Allowance recipients—average private earnings per fortnight, fortnight ending 18 June 2004

Average earnings per fortnight ($)Youth Allowance full-time student

278.24

Youth Allowance non-full time student334.20

Percentage of non-full time students on a part rate of payment due to the personal means test

In the fortnight ending June 2004, 10.1 per cent (8479) of Youth Allowance non-full time students received a reduced rate because of the personal means test.

QuantityNumber and percentage of customers paid supplementary payments—Rent Assistance

71 807 (24.2 per cent) of full-time students

595 (19.6 per cent) of non-full time students

Number of customers assisted (Youth Allowance)-381 805

Price$2.3 billion

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 1.2, 9.7 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

494 ministerial submissions and other written briefings or advice prepared; 903 ministerial replies to correspondence completed.

Price$4.4 million

Purchasing, funding and relationship managementQuality—assuranceDepartment ensures that service providers meet terms and conditions of funding

Formal guidelines apply to the JPET, Reconnect and YAS and FLW programs. FaCS ensures that conditions of funding agreements are met by requiring service providers to submit a range of reports to FaCS, including quarterly financial reports, annual audited reports and annual self-evaluation reports. Services must provide customer data to the department in a timely manner. Each service funded under the Reconnect program must also be independently evaluated during a three-year funding agreement by an external consultant appointed by FaCS.

Services delivering Transition to Independent Living Allowance (TILA) are required, through their funding agreement, to submit copies of each referral assessment form as well as quarterly reports.

Service agreements or contracts that meet legislative, government policy and departmental requirements in place with all service providers

Services provided through JPET, Reconnect, YAS and FLW, and TILA are delivered in partnership with community and non-government organisations that have funding agreements with FaCS.

QuantityNumber of contracts or service agreements under management-345

Number of service providers under management-380

Price$16.1 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

Research and evaluation during 2003-04 was of a consistently high standard. It met timelines and terms of reference and was methodologically sound.

QuantityMajor pieces of research and evaluation completed

2 (Reconnect and YAS and FLW program evaluations)

Price

$2.3 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS

Centrelink delivers services to standards agreed with FaCS.

The Business Partnership Agreement with Centrelink sets out areas and performance measures that apply to income support payments. Centrelink monitors performance against agreed standards for the delivery of services.

Other services were delivered as agreed.

Quality—customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

Review mechanisms common to most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two. ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.

In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that a total of 441 661 Youth Allowance and Austudy Payment reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $12 808 223, and upward variations resulted in fortnightly increases of $1 950 934. The debts totalled $101 799 211. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.

Percentage of reviews and appeals where the original decision is changed

Table 16: Reviews and appeals—Output Group 1.2, 2003–04

Payment type

Authorised Review Officers

Social Security Appeals Tribunal

AdministrativeAppeals Tribunal

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Austudy Payment 749 31 203 39 34 9

Fares Allowance 6 17 1 100 0 0

Student Financial Supplement Scheme 14 28 3 33 0 0

Youth Allowance 3540 39 532 40 96 12

Independent Homeless Rate 127 13 30 27 3 0

Youth Training Allowance 17 36 2 50 0 0

Price$233.1 million — Centrelink

$1.4 million—other

Output Group 1.3 I Child supportContribution to Outcome 1Child support contributes to Outcome 1 by promoting parental responsibility for financially supporting children after separation, through the provision of services to assist in the payment of child support.

Strategies

Influence a whole-of-government approachThere is a wide range of issues facing separated parents that affect their ability to meet their child support responsibilities. The Child Support Agency (CSA) is part of the family law system-made up of a number of government agencies-that provides specific services to separated parents. CSA continues to play a lead role in working with other organisations across the system to build on opportunities to encourage parents to access the multitude of services that contribute to their independence and self-reliance.

Build a community focusIn order to achieve CSA’s vision-that all Australian parents meet their child support responsibilities—CSA collaborates with key stakeholders, community service providers and employers to develop products and services that meet the broader needs of separated parents on a range of questions, including financial, legal and emotional ones. CSA also aims to increase understanding of child support issues through community outreach.

Encourage and support parental responsibilityCSA aims to increase parents’ independence and self-reliance in managing their child support responsibilities. To achieve this, CSA recognises the need to better understand parents and their specific needs in order to offer them the right products and services at the appropriate phase in their life following separation.

Streamline agency service deliveryCSA is working in an environment of continually increasing parent numbers with the additional challenge of delivering improved services at a reduced cost. CSA is experiencing a growth in parent contact channels—in particular through its web site, which is becoming an important channel for service delivery. CSA is investigating ways of harnessing the wealth of information that is available from a broad range of government agencies in order to improve the service that CSA provides to parents.

Increase organisational capability and productivenessCSA strives to ensure that its people have the capability, commitment and resources to deliver appropriate child support outcomes by focusing on:

continually improving the skills and leadership capabilities of its people

developing and maintaining systems and tools to support staff to deliver high-quality service to parents

reviewing sourcing arrangements to ensure that CSA’s personnel, human and technological infrastructure supports are the best they can be.

Guarantee transparent and accountable serviceCSA is responsible for providing a transparent and accountable service to the Australian community. CSA continually refines its performance framework to ensure a balanced view of how it is performing.

Outputs under Output Group 1.3

Child supportThe transfer of child support payments between separated parents is facilitated and enforced under the Child Support Scheme.

Performance summaryThe following presents information on the performance of CSA in 2003-04 additional to the report on administered items and departmental outputs that follows.

RoleCSA administers the Child Support Scheme, facilitating the assessment, payment and transfer of child support between parents. It helps parents meet their responsibility to continue contributing to the financial support of their children after separation. CSA is a semi-autonomous unit within FaCS and is the service delivery agency for Output Group 1.3.

Business challengesChallenge 1: Influence a whole-of-government approachObjective: To provide leadership when working with other government agencies to develop whole-of-government solutions in child support and related areas

Outcome: A simpler and better integrated approach to child support across agencies

Strategy: Actively support the House of Representatives Standing Committee on Family and Community Affairs Inquiry into Child Custody Arrangements in the Event of Family Separation

CSA contributed to FaCS submissions to the inquiry into child custody arrangements. Since the committee’s report was released in December 2003, CSA has worked hard to improve weaknesses in administration identified by the committee, such as improved communications with parents. Working to implement the Government’s response to the recommendations of the inquiry—in partnership with other areas of FaCS, government and others—will be one of CSA’s priorities for the next financial year.

Strategy: Enhance CSA’s stakeholder management

In 2003-04, CSA focused on strengthening relationships and lines of communication with its stakeholders. CSA developed a new business area to manage external relations and liaise closely with Members of Parliament on issues relating to child support administration. Relationships across government continue to be strengthened.

Strategy: Build an integrated family law system

Family Law Pathways NetworkIn response to the Family Law Pathways report—Out of the Maze: Pathways to the Future for Families Experiencing Separation—a Family Law Pathways Network has been formed with 27 participating agencies. CSA is an active participant in the network.

The network has applied for and been granted funding for a project that aims to collect data and map the family law pathways system in Western Australia, and also to inform and educate service providers and encourage networking among them. The project will culminate in a workshop to resolve the issues identified through the project mapping in order to create achievable and sustainable outcomes. The network steering committee is currently finalising the selection of the project officer(s) who will carry out the study.

Cooperation with the courtsCSA continued to maintain a close relationship with the Family Court of Australia, the Family Court of Western Australia and the Federal Magistrates Court (the main courts dealing with child support matters in Australia). Representatives from these courts, along with other representatives from the legal profession, are members of CSA’s national and/or regional child support legal liaison groups.

CSA also has arrangements with these courts to assist them in child support proceedings between parents who are CSA customers (as opposed to proceedings where the Family Court Registrar is involved as a party). An experienced CSA officer is nominated as an information resource for the court. The officer either attends the court on a designated day or is available to provide information by telephone, as and when the court requires. The CSA officer does not give legal advice, but can explain how CSA would administer particular orders or agreements and answer other questions from the parties or the court.

CSA also participates as an observer on the Family Law Council, a statutory authority established under section 115 of the Family Law Act 1975, with members appointed by the Attorney-General in consultation with the Prime Minister and Cabinet. Membership includes a judge of the Family Court and may also include other judges, lawyers, social workers, relationship counsellors, government employees and others. The council’s function is to advise and make recommendations to the Attorney-General about the workings of the Family Law Act and other legislation relating to family law.

In a joint project with the Family Law Council and the family law section of the Law Council of Australia, CSA is producing a guide for legal practitioners, providing precedents for court orders and child support agreements made under the Child Support (Assessment) Act 1989. The guide

will assist family law practitioners to help their clients obtain court orders and agreements that properly balance their wish for finality and their need for flexibility while providing their children with a proper level of financial support. It will be released in the latter half of 2004.

Strategy: Develop products to support separated parents in collaboration with other players in the family law system

‘Me and My’ series of bookletsThe ‘Me and My’ series of booklets is a collection of self-help books designed to assist parents with their parenting, financial and emotional issues post-separation. This series has resulted from a collaborative effort with CSA’s partners (both government and non-government) in the family law system. CSA has updated and expanded the series to include additional educational resources. The series includes:

Me and My Kids: Parenting from a distance

Me and My Money—a revamped booklet on money management, with tips and hints on how to stretch your dollar further after separation

What about Me?—to be released in the second half of 2004, this booklet addresses the linkages between separation and emotional wellbeing.

CSA plans to expand the series further with the introduction in 2004-05 of two new booklets that deal with how parents can better manage relationships with the other parent and their new partners.

CSA will release an interactive multimedia CD-ROM in the near future that will also draw on collaboration with its partners in the family law system.

Challenge 2: Build a community focusObjective: To work with the community in shaping and implementing child support systems

Outcome: Community service providers and family networks support and assist families in resolving their child support issues

Strategy: Build collaborative relationships with key community service providers

Support for unemployed parentsSee ‘Child support improvements—support for unemployed parents’ at ‘Budget measures’ above.

Direct Telephone Support ServiceThe Direct Telephone Support Service pilot (previously reported as the emotional wellbeing pilot) commenced in Queensland in May 2003. This pilot, funded by the Department of Health and Ageing, is having a positive result in supporting the mental health and wellbeing of separated parents in Queensland, with a high level of satisfaction with the service reported by its users. The service involves CSA client service officers in an initial three-way telephone hook-up with the parent and the telephone counselling service. On-referrals are primarily to relationship counselling and legal services. Over 3000 parents have used the service and 51 per cent of these were referred to other community services.

Elsewhere in Australia, CSA staff continue to transfer parents directly to appropriate community service providers in their region.

Supporting Parents Referral ServiceThe Supporting Parents Referral Service pilot provided key findings that formed the basis for developing other referral services. Parents who participated in this pilot showed a significant increase in awareness of community services, high satisfaction with the service and some

improvement in the strength of relationship with their former partner. This pilot represents an important milestone in CSA’s goal of connecting separating parents to community services.

Community services directoryCSA’s community services directory contains details of more than 2300 organisations across Australia that help parents on a wide range of family-related issues. The directory was updated in April 2004 using a newly designed database that is easier to use and update. The new directory is available to CSA staff to assist them in providing appropriate contact information to parents. It is also available to the public through the CSA web site, where it is frequently consulted (more than 50 000 search requests externally in the past 12 months).

Outreach activitiesCSA continues to provide regular visiting services to outer metropolitan and rural locations throughout Australia to facilitate face-to-face interviews with parents. In 2003-04, 213 visits took place in 44 metropolitan and 64 rural locations, with many of these locations visited on a monthly basis. A total of 1972 parent interviews were conducted as part of this outreach activity in 2003-04. This represents a 35 per cent increase in the number of parent interviews compared with the previous year.

As part of CSA’s integrated, holistic outreach program, CSA officers also visited 428 community service organisations, and addressed a total of 822 staff, to strengthen community links, disseminate information and train staff on basic child support issues. Of these organisations, 23 provided multicultural support services and 31 were identified as helping Indigenous parents.

Increasing the capacity of community service providers to deal with child support issues has been a continued focus. CSA has provided training and developed a product to support community providers in helping parents adopt a problem-solving approach when dealing with child support issues.

Community information sessionsMore than 2200 people attended one of CSA’s 57 community information sessions—10 more than last year—with the opportunity to speak face-to-face with a CSA officer and to hear the key messages of the CSA. Community information sessions also help to facilitate parents’ access to key community service providers in their area that may assist them in addressing some of the broader issues affecting their child support decisions. A total of 925 personal parent interviews were conducted following the presentation of the information sessions.

More than half of these information sessions were conducted in rural and regional areas and more than 70 per cent of those attending took advantage of the opportunity to have a personal interview after the sessions to discuss their individual circumstances.

Gateways pilot projectIn 2003-04, CSA continued to promote connections across the whole of government and the community in a number of ways. For example, CSA in Queensland was integral in planning, developing and hosting the Family Law Pathways ‘mega’ training day pilot on 25 June 2004.

Major government agencies, family law practitioners and community groups presented in ‘Expo’ style their part of the journey along the family law pathway.

The pilot was so successful for participating organisations and client service officers that there are plans to make it an annual event and accommodate more participants. The pilot involved 17 organisations and 150 participants.

Strategy: Support parents in the workplace

Supporting parents in the workplace—'Staying Connected’

CSA, in partnership with the NSW-based community organisation Interrelate, designed an innovative half-day workplace program for separated fathers—Staying Connected. The program is designed to help men cope with separation by helping them to look after themselves, build a business-like relationship with the other parent and develop strategies to build and maintain positive ongoing relationships with their children.

The program was successfully piloted with Australia Post and the Australian Defence Force. It was officially launched in May 2004 in Kalgoorlie, Western Australia where, with its high proportion of separated fathers, it has been warmly received by the mining community.

Challenge 3: Encourage and support parental responsibilityObjective: To encourage parents to accept their child support responsibilities

Outcome: Parents accept their responsibilities with minimal government involvement

Strategy: Increase voluntary payment of child support and, where appropriate, enforce payment, through better targeted services

An important focus for CSA is to encourage and support parents to manage their child support responsibilities independently, thereby fostering better relationships within separated families and resulting in more child support being paid in a timely manner for the benefit of children. CSA’s emphasis on parental self-reliance is paying dividends, as the year 2003-04 marks the second consecutive year that over half of the parents registered with CSA (51.8 per cent) transferred their child support privately, with minimal CSA intervention.

Figure 3 below shows a disproportionate increase in the amount of child support transferred in 2002-03 compared with previous years. In previous years the amount of child support transferred through private collections was under reported. The increase above natural growth in 2002-03 is therefore due to the inclusion of previously uncounted private collect transfers, made possible by the introduction of ‘Cuba’, CSA’s new IT system, in March 2002.

Figure 3 CSA transfers by payment arrangement, 1993–94 to 2003–04

National collection strategyDuring the 2003-04 financial year, CSA successfully reduced Australian-source maintenance debt by $13 million, thereby reversing a previous five-year trend of rising domestic gross maintenance debt levels.

CSA also successfully collected an additional $19.3 million in child support as at 30 June 2004 as a result of additional resources provided through the Intensive Debt Collection Budget initiative to target ‘hard debt’.

In particular, CSA has expanded the international stream of its operations to bring about increased compliance—and, where appropriate, enforced payments—from international parents. It has also developed a strengthened working relationship with the Department of Immigration and Multicultural and Indigenous Affairs and a closer working relationship with international child support partners, including New Zealand.

Challenge 4: Streamline agency service deliveryObjective: To optimise cost-effective service delivery

Outcome: Child Support Agency administration represents world’s best practice in the field of child support administration

Strategy: Refine CSA’s client segmentation

Integrated service delivery model

Figure 4 shows CSA’s client (integrated) service delivery model, which outlines CSA’s service approach to help parents achieve independence and parental self-reliance. In its simplest dimension, the model shows how CSA helps parents to avoid enforced collection by encouraging voluntary collection through either CSA or private transfer of child support. The second dimension shows how CSA is organised to deliver its strategic intent:

The New Clients stream seeks to enable newly separated parents to make sustainable child support arrangements by providing appropriate options, pro-active support and quality referrals.

The Collection Support stream provides ongoing support for the changing needs of separated parents who generally meet their child support responsibilities. This ensures regular, reliable child support for children.

The Debt Management Services stream provides intensive case management to collect outstanding child support from parents who are unwilling to pay their child support voluntarily.

The International stream supports separated parents where one parent resides overseas.

The channels through which CSA provide services are shown to the left of the pyramid in Figure 4, demonstrating the telephone as the channel of greatest demand, with an increasing trend towards electronic services.

The business management framework underpins the CSA client service delivery model, ensuring that all activities and infrastructure are directed towards fulfilling CSA’s strategic intent and providing linkages to CSA’s quality improvement and governance focus (the cycle around the pyramid).

Figure 4 CSA—integrated service delivery model

Review of CSA lettersThe review of CSA form letters and statements has almost been completed. In all, over 150 of our letters (including the monthly payer statement) have been revised or rewritten.

Additional work (reverse work flows), caused by letters lacking clarity or giving incorrect information, were a primary target of this project. An evaluation of the project outcome is under way and is expected to be completed by August; however, preliminary results appear to indicate encouraging trends in information for parents now being more relevant and timely.

Challenge 5: Increase organisational capability and productivenessObjective: All Child Support Agency people have the capability, commitment and resources to deliver child support outcomes efficiently

Outcome: The Child Support Agency achieves the right balance between the interests of the organisation and the interests of its people

Strategy: Enhance our staff capability

Recruitment, development and retention of staffIn 2003-04 CSA recruited approximately 500 new staff nationally. Coupled with this has been a stabilisation of the staff turnover rate at approximately 10 per cent during the year. Maintaining (or reducing) the turnover rate at (or below) this level will be a focus for the agency during the coming year.

CSA has continued to work on establishing processes for employee performance and career feedback, development and advancement to improve quality outcomes for parents as well as to enhance employee job motivation and satisfaction. These in turn will lead to improved business performance and parent satisfaction.

CSA team leaders are responsible for the direct performance management of employees, providing them with a formal framework under which issues concerning assessment of their performance can be properly managed.

The employee portfolio provides the process for employees and their team leaders to set expectations and provide feedback for performance for the employee’s current job and level and advancement to higher levels. The process identifies agreed developmental needs and results in a plan to improve current performance and/or provide opportunities for future career development.

Negotiation of a new agency agreementThe current CSA Agency Agreement has a nominal expiry date of 15 December 2004; negotiations toward a new agreement commenced as required on 1 April 2004. The intent is to complete negotiations and certification prior to the expiration of the current agreement.

Negotiating our new agency agreement provides us with the opportunity to consult with our people and the Community and Public Sector Union (CPSU) about key issues for improvement. We have provided and will continue to provide many and varied avenues for consultation and feedback throughout the process.

Challenge 6: Guarantee transparent and accountable serviceObjective: To ensure complete accountability and best-value quality services by continually measuring and monitoring performance

Outcome: Ministers, government and community consider the Child Support Agency provides a valuable service to the community

Strategy: Achieve a more balanced view of our performance

Parent feedback: Clients Having a Say (CHAS)CSA has implemented a public sector industry first with our innovative method of capturing ‘real time’ parent satisfaction and feedback through an interactive voice recording system. Parents are randomly selected to voluntarily provide feedback to an automated survey system at the completion of their call with the CSA client service officer. The questions relate directly to the commitments made to parents in the CSA Client Charter. Responses are used to promote further improvements in the agency.

Early results are very promising with all except one aspect of client satisfaction rating above five out of seven, equating to more than 70 per cent of parents being satisfied or better. Newly separated parents rate all except one aspect of client satisfaction at six or above out of seven, equating to more than 80 per cent of parents being satisfied or better.

Client charter reviewIn 2003-04, CSA conducted a review of its Client Charter. Involving extensive consultation with parents and staff, the review focused on how to further integrate the award-winning CSA charter into everyday business practices and processes. In addition, CSA introduced its leading-edge evaluation system,

CHAS, to measure parents’ perceptions of how well CSA staff were meeting their service commitments.

Reviews and appeals

Change of assessment

CSA parents with special circumstances can apply to have their child support assessments varied. CSA received 29 619 applications for a change of assessment in 2003-04. This represents 4.2 per cent of all those eligible for a child support formula assessment.

Of the applications, 14 263 resulted in varied assessments while 6068 remained unchanged, with the balance being withdrawn or invalid. Payers made 54.3 per cent of all applications and payees made 44.1 per cent. The Child Support Registrar generated the balance of applications.

The registrar can initiate a change of assessment where special circumstances exist. In 2003-04, the registrar initiated 325 change-of-assessment applications. Of these applications, 82 per cent resulted in varied assessments.

During the reporting year, an ‘Own Motion Report into Change of Assessment Decisions’ was initiated by the Commonwealth Ombudsman. This report and findings of CSA’s own internal audit process have identified the need for a nationally consistent approach to decision making and quality assurance. To this end, the development of a systemic quality assurance framework and review of existing procedures and guidelines have been undertaken by CSA.

Objections

Under the Child Support (Assessment) Act 1989 and the Child Support (Registration and Collection) Act 1988, CSA parents can object to most decisions that CSA makes. In 2003-4, CSA received 19 099 objections and finalised 16 667. As at 30 June 2004, 2514 objections were in progress. Of all finalised objections, 46.9 per cent were disallowed, 18.6 per cent were upheld or partially upheld, and 34.5 per cent were withdrawn or invalid.

‘The Guide’CSA continues to publish and maintain ‘The Guide’, a comprehensive, easy-to-read, online reference to the way CSA administers child support legislation. ‘The Guide’ is published on the CSA web site so that parents, the legal profession, community organisations and interested members of the public have access to the information that CSA staff use on a daily basis to make decisions about child support issues. CSA reviews ‘The Guide’ regularly, in response to feedback from the people who use it, and to ensure that the information is up to date.

Risk and Audit CommitteeCSA established a governance and improvement committee to provide a more systemic approach to reviews and process improvements. The committee’s key achievements in 2003-04 include the finalisation of a comprehensive fraud control plan and the provision of an extensive update to the Joint Committee of Public Accounts and Audit on CSA initiatives.

Prime Minister’s Awards for ExcellenceIn November 2003, CSA was recognised for its work with separated parents when it won the Silver Award in the Prime Minister’s Awards for Excellence in Public Sector Management for its submission, Supporting Parents through Separation. The submission outlined products and services developed by CSA to assist parents experiencing separation-including how to improve the quality of relationships with children and how to improve access to services and information, particularly by men.

Financial and staffing resources summaryTable 17: Output Group 1.3—Child support

Group 1.3: Child support

(A) Budgeta

2003-04 $’000

(B) Actual 2003-04

$’000

Variation (column B

minus column A)$’000

Budgetb

2004-05 $’000

Administered Expenses (including third party outputs)

Child Support Agency—Payments to 3 665 2 552 -1 113 3 665

cover cheque dishonours, incorrect maintenance payments and refunds of overpaymentsc

CSA Support for Unemployed Payers 2 363 10 -2 353 2 383

Special Appropriations

Child Support (Registration and Collection) Act 1988—Payments to cover shortfalls in the Child Support Trust Accountd 99 372 87 832 -11 540 119 246

Child Support (Registration and Collection) Act 1988— Unexplained remittancese 180 1 -179 100

Total Administered Expenses 105 580 90 395 -15 185 125394Price of Departmental Outputs

Policy Advice833 833 0 1 402

Purchasing, Funding & Relationship Management 121 121 0 204

Research and Evaluation51 51 0 85

Service Delivery (Centrelink)528 530 2 3 139

Child Support Services257 026 257052 26 274724

Revenue from Government (Appropriation) for Departmental Output Groups 258 559 258 587 28 279 554FaCS Componentf

1 005 1 005 0 1 691

Child Support Agency Component257 026 257052 26 274724

Centrelink Component528 530 2 3 139

TOTAL FOR GROUP 1.3 364139 348 982 -15 157 404 948Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 14 12

Child Support Agency2 763 2 872

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b. Budget prior to additional estimates.

c. Estimated expenses for this item reflect the budgeted outlays by government (net expenses). Actual expenses disclose the total transactions on these accounts (gross expenses). There was $2.552 m returned to the CRF for this item.

d. Estimated expenses for these items reflect the budgeted outlays by government (net expenses). Actual expenses disclose the total transactions on these accounts (gross expenses). There was $80.083 m returned to the CRF for this item.

e. Estimated expenses for these items reflect the budgeted outlays by government (net expenses). Actual expenses disclose the total transactions on these accounts (gross expenses). There was $0 returned to the Consolidated Revenue Fund (CRF) for this item.

f. FaCS includes the Social Security Appeals Tribunal, but excludes the Child Support Agency, which is shown separately.

Performance information

Administered items

Child supportDue to the nature of the Child Support Agency, performance indicators are listed below at ‘Departmental outputs’, ‘Service delivery—CSA’.

Departmental outputs

CostCost per child support dollar transferred between parents

12.0 cents per $1 transferred

Cost per child support case

$350 per case

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two—‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

134 ministerial submissions and other written briefings or advice prepared; 1419 ministerial replies to correspondence completed.

Price$0.8 million

Purchasing, funding and relationship managementQuality-assurance

Department ensures that service providers meet terms and conditions of funding

As part of FaCS, the CSA follows the department’s purchasing, funding and relationship management guidelines.

Number of contracts or service agreements under management

All service providers have agreements or contracts with the CSA that meet FaCS guidelines.

Number of contracts/service agreements under management—2.

QuantityNumber of service providers under management

CSA is the only service provider in this output group.

Price$0.1 million

Research and evaluationQuantityMajor pieces of research and evaluation completed—0

Price$0.05 million

Service delivery—CentrelinkQuality-assuranceService providers deliver services to the timeliness and accuracy standards agreed with FaCS

Services were delivered as agreed.

Service delivery—CSAEffectiveness—adequacyTotal amount of child support transferred between parents

A total of $2.19 billion, including $1.4 billion in child support payments transferred directly, and $791 million in child support liabilities collected by CSA.

Average annual liability:

Stage 1 cases: $2350

Cases assessed under the child support formula: $3109.

Effectiveness-independenceChild support collection rate (CSA collect and private collect)

The collection rate is calculated by measuring dollars collected as a percentage of liabilities raised since the Child Support Scheme began in 1988.

Total collection (including private transfers)—95.4 per cent

CSA collection (where CSA collects the liability)—90.1 per cent*

* This represents the collection rate for CSA collections on domestic cases. CSA also manages child support cases where one parent resides in another country.

A supplementary collection statistic has been developed to enhance the reporting of CSA collection performance. The 2003-04 result, using this twelve-month rolling collection statistic measure, was 100.9 per cent.

Figure 5: Child support collection—total credits applied to total liabilities (CSA collect, domestic cases), 2001-02 to 2003-04

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2001-2002

87.8 88 88.2 88.3 88.5 88.4 88.4 88.4 88.5 88.7 88.3 88.2

2002-2003

88.1 88.3 88.3 88.3 88.4 88.3 88.3 88.3 88.5 88.6 88.7 88.7

2003-2004

88.8 89 89.2 89.4 89.5 89.5 89.6 89.7 89.8 89.9 90 90.1

Percentage of private collect cases to total cases (CSA collect and private collect cases)

By June 2004, 51.8 per cent of all registered parents had opted for private collection, compared with 50.6 per cent in 2003 and 49.4 per cent in 2002. This was the second year that over half of all parents registered with CSA chose to transfer their child support payments privately.

Figure 6: Child support collection-private collect cases as a percentage of total cases, 2001-02 to 2003-04

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2001-2002 47.8 48 48.3 48.5 48.7 48.9 49 49 49.4 49.1 49.1 49.4

2002-2003 49-3 49.4 49.3 49.4 49.5 49.6 49.6 49.7 49.9 50.3 50.5 50.6

2003-2004 50.7 50.7 50.8 50.9 51 51.1 51.2 51.2 51.4 51.6 51.7 51.8

Effectiveness—targetingNet clawback—reduction in Family Tax Benefit outlays as a result of child support obligations being met-$458.1 million

Quality—assuranceStakeholder confidence in child support services

CSA maintained and enhanced connections at all levels to improve stakeholder confidence in the administration of the Child Support Scheme and the services delivered by CSA.

Members of Parliament and their staff were briefed during the year; these briefings were well received. The volume of ministerial correspondence increased in proportion to the CSA caseload in 2003-04.

CSA staff conducted community information and outreach sessions in regional and metropolitan centres. These sessions were often attended by local Members of Parliament as well as by parents and other interested people. Those who came to the sessions gained information about the Child Support Scheme and CSA as well as about related community support services. Members of Parliament have provided very positive feedback about the operation of these sessions.

The Registrar’s Advisory Panels and the Legal Liaison Group continued to provide forums for discussion of and feedback about child support issues to representatives from parent groups, other government departments and legal bodies. These formal meetings facilitated the participation of key stakeholders in the administration of the Child Support Scheme in Australia.

Quality-customer satisfactionCustomer satisfaction as measured by satisfaction research

CSA conducted a Professionalism Survey in 2004. The results showed a significant improvement from the previous year and are the highest results since the introduction of the Professionalism Index in 1998. (See Figure 10, Volume 1: The four components of the professionalism index in Volume one, Part two — ‘Helping parents support their children—the Child Support Agency’)

A new survey model, based on the CSA Client Service Charter, was designed and has been implemented.

QuantityNumber of CSA customers

At 30 June 2004 CSA had 747 830 registered cases, representing more than 1.3 million separated parents and some 1.1 million children. This is an increase of 5.1 per cent since 30 June 2003.

Figure 7 Growth in CSA active caseload, 1991-2004

Price$257.1 million — CSA

$1.0 million — FaCS

$0.5 million — Centrelink

Output Group 1.4 I Child care supportContribution to Outcome 1Child care support contributes to Outcome 1:

by helping families to participate in the economic and social life of the community through the provision of support for child care

by helping families to balance their work and parenting roles through the provision of flexible child care services

through quality child care, contributing to the development and education of children

by providing a focus for early intervention and prevention initiatives for vulnerable families and children.

Strategies manage policy development and planning for the ongoing child care program, including

administration of Child Care Benefit

efficiently manage the Child Care Support Program, which provides considerable support for the availability and quality of child care

work closely with Centrelink and the child care sector to ensure payments and procedures are administered effectively and in accordance with legislation

communicate effectively with the child care sector and parents

work with state and territory governments to develop and implement more consistent approaches to child care service regulations to facilitate equity and access to these services

build and expand on established communication systems to provide information to families and consult with service providers

provide ongoing information and training to support the administration and delivery of child care support, particularly Child Care Benefit

continue to develop high-quality, timely data, consistent throughout states and territories and Australian Government agencies, for policy evaluation and future policy development

develop and implement measures to improve the availability, affordability and flexibility of quality child care that meets the needs of families, particularly in rural and remote communities

continue to implement quality assurance(QA) in long day care centres and family day care schemes, and introduce QA in outside school hours care.

Outputs under Output Group 1.4

Child Care BenefitChild Care Benefit (CCB) reduces the child care fees of eligible families using approved child care services or registered carers. Assistance provided is proportionally higher for lower-income families. Eligible families can have the benefit paid directly to the child care service to reduce their ongoing fees, or alternatively can receive the benefit as a lump-sum payment after the end of the financial year. Families using registered care (e.g. care provided by a relative, friend or neighbour registered as a carer with the Family Assistance Office) may be eligible for the minimum rate of CCB for up to 50 hours per week of work-related child care.

Child care for eligible parents undergoing trainingJobs, Education and Training Child Care (JETCC) helps people who receive certain Centrelink payments to improve their employment prospects by participating in study, work or job search activities. Eligible parents can get help finding suitable and affordable child care, and may also obtain assistance with paying child care fees. JETCC creches also provide flexible child care for particularly vulnerable groups of parents in areas where no other suitable child care services are available.

Support for child careCentre-based long day careCentre-based long day care services provide quality all-day or part-time care for children predominantly of working families. Some centres provide care for limited numbers of primary school children before and after school, and during school holidays.

Family day careChild care is provided by a network of caregivers who provide care and developmental activities in their own homes for other people’s children.

Greater flexibility and choice in child careThe ‘Choice and Flexibility in Child Care’ element of the Stronger Families and Communities Strategy helps families find the right mix between their work, community and parenting roles. Measures include:

continuing to develop in-home care as an innovative form of care for families with no other formal child care options

encouraging private providers to set up child care centres in rural or regional areas

further development of quality assurance systems for family day care and outside school hours care.

Flexible and innovative servicesFlexible child care can combine standard models of care with occasional care, mobile multipurpose centres, on-farm care, in-home care and/or overnight care. It can meet the needs of families living in rural and remote areas and Indigenous communities where people may have difficulty finding suitable child care.

In-home careIn-home care is a child care service provided by an approved child care worker in the child’s own home. This type of care is for families who do not have access to a standard child care service or for whom an existing service cannot meet their needs.

Multifunctional servicesMultifunctional services provide services in rural, remote or isolated communities that do not have a large enough population to support individual services.

Indigenous child care servicesIndigenous child care services provide flexible and culturally appropriate child care services to meet the social and developmental needs of Aboriginal and Torres Strait Islander children.

Outside school hours care and vacation careThese types of care provide care for primary school children before and/or after school and during vacation time.

Occasional care servicesOccasional care services provide short periods of care for children under school age.

Registered careRegistered care is a form of care provided by a carer registered with the Family Assistance Office (FAO) for work-related purposes. These carers can be individuals such as grandparents, relatives, friends, or nannies.

Other payments and servicesDisadvantaged Area Subsidy: Paid to eligible community-based long day care centres or outside school hours care services as recurrent grants to assist with general operational costs.

Special Needs Subsidy Scheme: Assists approved child care services to create a nurturing environment that is inclusive of children with ongoing high support needs. This includes children with diagnosed disabilities, children undergoing continuing assessment for disabilities, or developmental delay, and refugee children who have been subject to torture and trauma.

Special Services Program: Funds agencies and sections of the child care industry that target specific groups of children with additional needs. These include Aboriginal and Torres Strait Islander children, children from culturally and linguistically diverse backgrounds, Australian South Sea Islander children, children with disabilities, children of parents with disabilities, or children living in rural and remote locations.

Supplementary Services Program: Funds agencies to assist child care service staff to build skills and capacity, and provides resources and training to assist with the successful inclusion of children with additional needs into the service.

Professional Support: Resource and advisory (R&A) services and in-service training (1ST) providers deliver professional support services to Australian Government-approved child care services. R&As and ISTs help child care services to maintain and improve quality, efficiency and effectiveness. This is done through the provision of practical and professional training, advice and resources that increase the skill level of carers and services.

Disability Supplementary Services: An additional payment to family day carers and in-home carers who care for children with ongoing high support needs, including children with a disability.

JET Child Care Special Fee Assistance: Assists eligible parents in meeting the costs of child care by paying most of the ‘gap fee’—the difference between the full child care fee and Child Care Benefit (CCB).

JET Child Care Creches: Funding for creches, operated in conjunction with education and training activities for targeted vulnerable groups, where no other suitable child care services are available.

Regional Travel Assistance: Available to support eligible family day care and in-home care service providers with the travel costs associated with supporting their network of rural and remote carers.

Operational Subsidy: Paid to family day care and in-home care service providers.

Performance summary

Key achievements included: FaCS finalised the redevelopment of the Child Care Support Broadband and developed a new

funding model for the Child Care Support Program that included additional funding of $16.3 million over four years from the 2004-05 Budget.

In December 2003, the Government announced 10 000 additional outside school hours care places and 2500 family day care places. These places were made available from 1 January 2004.

In the 2004-05 Budget the Government announced 30 000 more outside school hours care places and 1500 family day care places to be available from 1 July 2004.

More families received access to quality affordable child care. From the September quarter of 2002 to the September quarter of 2003 the number of children using Australian Government-approved child care increased from about 759 000 to 763 000.

FaCS launched the Outside School Hours Care Quality Assurance (OSHCQA) system on 1 July 2003. The OSHCQA was developed in close collaboration with the child care sector, with 2620 services (96 per cent) having registered for quality assurance in 2003-04.

FaCS launched the revised Family Day Care Quality Practices Guide in June 2004. The guide was revised in consultation with the sector and makes the family day care quality assurance system more consistent with the quality assurance systems for long day care and outside school hour’s care.

FaCS finalised, printed and distributed the Australian Government report The Child Care Workforce Think Tank in December 2003. This represented a whole-of-sector approach to address critical factors affecting the future of the child care workforce.

In-home care is continuing to be developed as an innovative form of care for families with no other formal child care options. The Government has provided 4360 places to the sector since 2000-01 and announced the continuation of the program for four more years as part of the ‘Choice and Flexibility in Child Care’ measure of the Stronger Families and Communities Strategy.

In April 2004 the Government announced the Long Day Care Incentive Scheme as part of the ‘Choice and Flexibility in Child Care’ measure. Over the next four years this scheme aims to create 25 new long day care centres offering at least 1000 places in rural and urban fringe areas of high, unmet demand. The first funding round was announced in May 2004 and the assessment process is currently under way.

The 2004 Census of Child Care Services is continuing. Just over 9000 services have been contacted and as at 30 June 2004 approximately 7000 services had provided information on service and staff characteristics and the families and children attending. FaCS expects data to be published in April 2005.

The department completed production and distribution of a consolidated child care service handbook in September 2003. An online version of the handbook was also delivered.

Work is required to: progress the recommendations from the Child Care Workforce Think Tank. A joint workforce

plan is being undertaken by state and territory governments and the Australian Government. Professional and sector support workshops are also being held. However, further action is required to progress workforce issues and ensure the attraction and retention of qualified child care workers.

continue to support outside school hours care services with the introduction of quality assurance (QA) and to support family day care schemes with the introduction of the revised quality practices guide. This support is in recognition of the time it takes for child care services to progress through the QA cycle (two and a half years) and the significant staff turnover in the sector.

progress the development of an Indigenous Child Care Strategy in consultation with key stakeholders

further the implementation of the new Child Care Support Program, including:

– establishment of the new rural, remote and Indigenous child care services

– implementation of the new Inclusion and Professional Support Program

– development of guidelines for the new payment types

– transitional arrangements for current service providers moving to new payment types

– releasing 1000 additional in-home care places to the sector

– undertaking the first round of allocating funding under the Long Day Care Incentive Scheme

– developing and announcing a timetable for further funding rounds for the in-home care program and the Long Day Care Incentive Scheme

continue to monitor the availability and affordability of child care

develop with Centrelink options for the child care industry to conduct business with the FAO through an online channel. A scoping study identified a high level of industry interest in online service delivery. Design work will commence later in 2004 with full implementation by June 2007.

finalise with Centrelink a detailed compliance strategy for CCB to ensure payments and procedures are administered effectively and in accordance with legislation.

Financial and staffing resources summaryTable 18: Output Group 1.4—Child care support

Group 1.4: Child care support

(A) Budgeta

2003-04 $’000

(B) Actual

2003-04 $’000

Variation (column B minus column

A) $’000

Budgetb

2004-05 $’000

Administered Expenses (including third party outputs)

Child care for eligible parents undergoing training 14 969 12 880 -2 089 15 264

Support for Child Care193 236 189 747 -3 489 215 765

Support for Child Care SPP10 049 10 045 -4 10 632

Special Appropriations

Child Care Benefit (ANTS (Family Assistance) (Administration) Act 1999) 1 393 183 1 387 946 -5 237 1 534 328

Child Care Rebate (Childcare Rebate Act 1993) 0 0 0 0

Total Administered Expenses 1 611 437 1 600 618 -10 819 1 775 989Price of Departmental Outputs

Policy Advice7 379 7 380 1 10 537

Purchasing, Funding & Relationship Management 8 922 8 924 2 12 740

Research and Evaluation4 748 4 749 1 6 780

Service Delivery (Centrelink)95 102 95 428 326 102 508

Service Delivery (other)8 485 8 485 0 8 605

Revenue from Government (Appropriation) for Departmental Output Groups 124 636 124 966 330 141 170FaCS Componentc

21 049 21 053 4 30 057

Centrelink Component95 102 95 428 326 102 508

Service Delivery (other)8 485 8 485 0 8 605

TOTAL FOR GROUP 1.4 1 736 073 1 725 584 -10 489 1 917 159Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 265 234

a Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b Budget prior to additional estimates.

c FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Child Care BenefitEffectiveness-affordabilityChild care out-of-pocket costs as a proportion of weekly disposable income before and after child care subsidies

For a low-income family (with an income of around $32 000) with one child in full-time care, government assistance covers around 65 per cent of the average fee in long day care centres and around 74 per cent of the average fee in family day care. For a middle-income family (earning around $45 000) with one child in full-time care, government assistance covers around 53 per cent of the average fee in long day care and around 60 per cent in family day care.

Figure 8: Child care full-time gap fees as a proportion of weekly disposable income before and after Child Care Benefi t—one child, March 2004

Figure 9: Child care full-time gap fees as a proportion of weekly disposable income before and after Child Care Benefi t—two children, March 2004

Percentage of families receiving:

maximum Child Care Benefit-37 per cent

partial rate Child Care Benefit-46 per cent

minimum rate Child Care Benefit-17 per cent

Effectiveness-independencePercentage of Australian Government-funded child care that is used for:

work-related purposes-90 per cent

non-work related purposes-10 per cent

QuantityNumber of child care places available-517 654 (as at September 2003)

Number of eligible approved services-9703

Number of calls to the Child Care Access Hotline

48 562 for the period between 1 July 2003 and 30 June 2004

Number of families using Australian Government-approved child care services and claiming Child Care Benefit as a fee reduction

525 000 families and 741 000 children (in the September 2003 quarter)

Price$1387.9 million

Commentary

The number of children using child care has continued to increase. A record number of families now receive Child Care Benefit as a fee reduction. Between September 2002 and September 2003 this number increased by about 8000 families.

The number of Australian Government-funded child care places increased by over 17 600 between September 2002 and September 2003. The announcement of additional 40 000 outside school hours care places and 4000 family day care places in December 2003 and in the 2004-05 Budget is expected to further increase the number of child care places to around 563 000 by 30 June 2005.

Child care for eligible parents undergoing trainingEffectiveness-take-up/coverage Number of parent’s assisted-10 299

Number of children in child care-13 403

Price$12.9 million

Support for child careEffectiveness-targetingNumber of children with additional needs using Australian Government-approved child care services by target group

Children with disabilities-17 000

Aboriginal, Torres Strait and Australian South Seas Islander children-13 500

Children from non-English speaking background-83 000

Total number of children with additional needs using Australian Government-approved child care services-112 600

Quality-access and choiceNumber of children with disabilities assisted into mainstream services

17 000 children with disabilities were assisted into mainstream services.

2049 services were specifically targeted to rural and remote areas.

Quality-assurancePercentage of long day care centres accredited under the Quality Improvement and Accreditation System (QIAS)-95.5 per cent

Percentage of long day care centres satisfactorily participating in Quality Improvement and Accreditation System-100 per cent

Percentage of family day care services satisfactorily participating in Family Day Care Quality Assurance (FDCQA)-100 per cent

QuantityNumber of Indigenous-specific services-263

Number of services specifically targeted to rural and remote areas-2049

Stronger Families and Communities Strategy

Quality-assuranceDevelopment of a quality assurance system for the family day care and outside school hours care sectors

Family Day Care Quality Practices Guide revised edition distributed before 1 July 2004.

Outside School Hours Care Quality Assurance system introduced in July 2003.

QuantityNumber of child care places assisting families to fulfil work and family responsibilities through alternative child care arrangements as assessed by increases in the number of places for:

in-home care-1321

Private Provider Incentive-101

Number of new child care centres in rural areas that received establishment set-up equipment-1

CommentaryAt 30 June 2004, 4473 long day care centres were registered with the National Child Care Accreditation Council to participate in QIAS and 95.2 per cent were accredited.

At 30 June 2004, 320 family day care schemes were registered with the National Child Care Accreditation Council to participate in the Family Day Care Quality Assurance system and 99.7 per cent were accredited.

A national training program is being implemented, to support the introduction of the revised Family Day Care Quality Practices Guide, commencing in September 2004.

The Outside School Hours Care Quality Assurance system was introduced in July 2003. At 30 June 2004, 2656 services were registered to participate in Outside School Hours Care Quality Assurance. Registration is the first step in a five-step accreditation process. The first OSHC accreditation cycle will be complete in 2005-06. A national training program to support services commenced on 1 November 2003.

The department continues to refine the in-home care service delivery model in order to increase economic and social participation through access to appropriate child care.

The new Stronger Families and Communities Strategy (announced in April 2004) and the Child Care Support Program (announced in June 2004) will provide increased support for the establishment of new long day care centres in rural, remote and urban fringe areas where there is high unmet demand for child care. The new funding models particularly focus on child care for children aged under 24 months.

In 2003-04 it was estimated that there would be demand, nationally, for about 2500 in-home care places. This was tested in various states; however, as demand was not as high as anticipated, only 1321 places were allocated.

Funding for the Private Provider Incentive program was due to lapse on 30 June 2004 and it was inappropriate to approve funding for additional centres where it was unlikely they could be established within the timeframe. However, in April 2004 the Government announced four additional years of funding for a revised incentive scheme for long day care providers. An additional funding round was advertised in 2004 and this is currently being finalised. Further funding rounds will occur over the next two years with a view to establishing up to 25 additional long day care centres with at least 1000 places available to Australian families.

Total price$189.7 million — Support for Child Care

$10.0 million — Support for Child Care SPP

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 1.4, 7.8 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

377 ministerial submissions and other written briefings or advice prepared; 707 ministerial replies to correspondence completed.

Price$7.4 million

CommentaryThe ministerial correspondence completed figure provides details of correspondence finalised by Output Group 1.4. This figure does not include individual replies to campaign correspondence that may entail thousands of items, but may be recorded as a single item.

Purchasing, funding and relationship managementQuality-assuranceDepartment ensures that service providers meet terms and conditions of funding

In 2003-04 FaCS had separate service agreements with Centrelink, HIC and the Tax Office for the delivery of Child Care Benefit.

As at June 2004 FaCS had 11 557 funding agreements with child care service providers, of which 99.99 per cent met the terms and conditions of funding. FaCS is working with the services that did not meet terms and conditions to assist them to meet funding requirements.

Service agreements or contracts that meet legislative, government policy and departmental requirements are in place with all service providers

During 2003-04, all three service agreements with Centrelink, HIC and the Tax Office, and 99.99 per cent of FaCS funding agreements with child care service providers, met legislative, government policy and departmental requirements. FaCS is working with the services that did not meet terms and conditions to assist them to meet funding requirements.

QuantityNumber of contracts or service agreements under management

As at June 2004, FaCS had in place three service agreements and 11 557 funding agreements with child care providers under a range of child care support programs.

Price$8.9 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development)

FaCS’ agreements with Centrelink, HIC and the Tax Office provide for regular performance and management information reports to FaCS. These reports allow FaCS to evaluate both the quality of service provided and the level of compliance with the agreements.

QuantityMajor pieces of research and evaluation completed-4 (in progress)

Price$4.7 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS

Services were delivered as agreed.

Quality-customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’.

In 2003-04, the Integrated Review System indicated that a total of 6452 child care service operator reviews were completed. Child Care Benefit is paid on an ongoing advance/acquit basis. No debts or overpayments are raised as part of this ongoing process. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ’Right payments to the right people’.

Percentage of reviews and appeals where the original decision is changed

Table 19: Reviews and appeals—Output Group 1.4, 2003-04

Payment type

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Child Care Benefit (CCB) 427 4 90 2 18 0

Price$21.1 million—Centrelink

$8.5 million — other

Outcome 2 I Communities are strongServices and assistance that: encourage communities to be self-reliant and to connect with their members; and promote partnerships between business, communities and governments.

DescriptionOutcome 2 reflects the Government’s commitment to support and to strengthen communities. Building on the capabilities of communities, FaCS will:

strengthen opportunities for disadvantaged or ‘at risk’ individuals, families and communities to participate

encourage the development of community capacity for self-help

help to reduce the pressures on and within communities

support those affected by crises or disaster

provide housing assistance that links with broader community support to encourage participation

facilitate partnerships between business, community groups and governments.

Figure 10 Outputs contributing to Outcome 2

Financial and staffing resources summaryTable 20: Outcome 2—Communities are strong

Outcome 2: Communities are strong

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Administered Expenses (including third party outputs)

2.1 Housing Support1106168 1 105 706 -462

1 120 387

2.2 Community Support301796 247 741 -54055 339560

Items Applicable Across Outcome 2

National Secretariats (part component see also Outcomes 1 and 3) 694 450 -244 699

Total Administered Expenses1 408 658 1353897 -54 761

1 460 646

Price of Departmental Outputs

Output Group 2.1 Housing Support 11 198 11 204 6 19 930

Output Group 2.2 Community Support 48 384 48 449 65 38 011

Appropriations Applicable Across Outcome 2

Service Delivery Centrelink0 0 0 3 094

Revenue from Government (Appropriation) for Departmental Output Groups 59 582 59 653 71 61 035

Revenue from other Sources350 413 63 352

Total Price of Output Groups (Departmental) 59 932 60 066 134 61 387FaCS Componentc

41 112 41 120 8 33 577

Centrelink Component18 470 18 533 63 27 458

Non-appropriated expensesd

59 582 59 653 71 61 035TOTAL FOR OUTCOME 2 (Total Price of Outputs and Administered Expenses) 1 468 590 1 413 963 -54 627

1 522 033

Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 333 294

a Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b Budget prior to additional estimates.

c FaCS includes the Social Security Appeals Tribunal.

d Non-appropriated expenses are expenses from sources other than annual or special appropriation (non-appropriated revenue). For example, monies paid into the Child Support Trust Fund by non-custodial parents are non-appropriated revenue, while disbursements of those monies to custodial parents and allowances for bad debts are a non-appropriated expense. In Outcome 2, these include the National Housing Research Trust Fund.

Key strategiesThe key strategies for strengthening communities are:

administering programs that address the barriers to economic and social participation, particularly for disadvantaged groups, including youth, Indigenous peoples and those at risk of homelessness

building the capacity for self-reliance of at-risk individuals, families and communities

promoting increased positive engagement between business, community and government

providing funding for social housing and supported accommodation assistance

developing the knowledge base on homelessness to encourage new and innovative responses, with an emphasis on early intervention and prevention wherever possible

providing financial assistance to individuals and families in the private rental market.

Key activities that underpin the strategies are:

building partnerships with governments, communities and business

developing effective partnerships with local Indigenous communities and other stakeholders to improve outcomes for Indigenous Australians, particularly in rural and remote areas

providing a range of community support services, including emergency relief, disaster relief, drought counselling, and support for volunteering

facilitating a national response to problem gambling

providing assistance to people affected by homelessness or needing other crisis support, through the Supported Accommodation Assistance Program (SAAP) and other mechanisms

providing housing funding to state and territory governments through the Commonwealth-State Housing Agreement (CSHA)

providing Rent Assistance

providing housing assistance to Indigenous people, particularly those living in rural and remote areas

providing income support to help support young people who are seeking work or undertaking education and training

conducting or commissioning relevant research to inform policy advice to government.

Operating environment statementHousing is a basic need for individuals and families that must be met before any broader individual or community needs can be addressed. The overall level of home ownership in Australia has changed very little since 1994. In 2000-01, 70 per cent of Australian households were living in their own home, 38 per cent owned their home outright, 21 per cent were renting privately and almost 5 per cent were in public housing (Australian Bureau of Statistics Year Book Australia 2004). Despite rising incomes and low interest rates, housing affordability has fallen to its lowest in the last 10 years, primarily due to increasing house prices (Commonwealth Bank-Housing Industry Association Housing Affordability Index).

Homelessness continues to present a challenge to Australian communities. It is affected by a multitude of factors. The ABS report Counting the Homeless, 2001 estimated the number of homeless people in Australia on Census night in 2001 was 99 900. The previous estimate on Census night in 1996 was 105 300. This represents a decline in the national rate of homelessness per 10 000 of population from 59 in 1996 to 53 in 2001. The report used Census 2001 data complemented by data from surveys of youth homelessness and users of SAAP support services.

Working with families and communities to maintain connections and support is an emerging focus to improve community capacity and address locational disadvantage. Partnerships between communities, businesses, and non-government organisations continue to be effective in developing local solutions and building community capacity. There appears to be a cultural change under way in the corporate sector, with more companies actively engaging with local community groups, and increasingly seeing this as part of their core business. This is a potentially fundamental shift from viewing corporate social responsibility as an externally imposed obligation.

Volunteering is considered to be an indicator of community strength. Unlike many Western countries, Australia is maintaining a high level of volunteering. The ABS estimates that there are over 4.4 million volunteers, who contribute 700 million hours of time to the community every year, including at times of disaster. Volunteering contributions are worth around $42 billion per year.

Outcome 2 programs also address the needs of Indigenous Australians and, while the non-Indigenous population in Australia is trending towards lower birth rates and is ageing, the demographic profile of the Indigenous population is significantly different. According to the 2001 Census, the Indigenous population is estimated at 2.4 per cent of the total population of Australia. About 30 per cent of Australia’s Indigenous population lives in the major cities compared with 67 per cent of the nonindigenous population. Approximately 18 per cent of the Indigenous population lives in very remote areas compared with 0.7 per cent of non-Indigenous Australians.

The age structure of the population is much younger for Indigenous people, with 39 per cent being 14 years or younger (compared with 20 per cent of the non-Indigenous population); only 0.9 per cent of the Indigenous population is aged over 75 years (compared with 5.6 per cent of the non-Indigenous population).

The relatively low proportion of Indigenous persons in paid employment is a major factor contributing to the status of the Indigenous population as one of the most disadvantaged groups in the community. In the 2001 Census, the unemployment rate for Indigenous persons aged 15-64 years was nearly three times as high as the rate for non-Indigenous people. Overall, Indigenous persons aged 15-64 years had a labour force participation rate of 62 per cent for males and 46 per cent for females (compared with 81 per cent and 66 per cent for non-Indigenous males and females respectively).

The development of shared responsibility agreements and establishing Indigenous Coordination Centres in rural and remote Australia is a reflection of the improvement in a whole-of-government approach to address issues in Indigenous communities.

Social justice and equity impactOutcome 2 policies and programs are designed to support and strengthen communities. Service providers are funded to provide appropriate services to meet the needs of those living in rural and remote locations, Indigenous communities, people from diverse cultural and linguistic backgrounds, women and people with disabilities.

Performance highlights and policy outlook

Key achievements included: successful negotiation of the 2003 CSHA bilateral agreements with all states and territories,

including performance frameworks outlining targets, strategies and outcomes to be achieved over the five-year agreement. In 2003-04 the CSHA provided grants totalling almost $930 million to states and territories for the provision of public, community and Indigenous housing as well as crisis accommodation programs.

reducing and preventing homelessness through SAAP and the National Homelessness Strategy

assessing and improving housing-related health issues in 12 additional remote Indigenous communities across Western Australia, the Northern Territory, South Australia and New South Wales through the Fixing Houses for Better Health (FHBH) projects

conducting a series of regional workshops across Australia for architects, designers, engineers, environmental health officers and Indigenous housing managers to apply the standards of the National Indigenous Housing Guide (2nd edition) in the design, construction and maintenance of Indigenous housing

through the Stronger Families and Communities Strategy, funding a range of projects at the community level, including parenting and relationship education, community leadership training, assistance for families with young children, support for Indigenous families and communities, and the development of volunteering

ongoing support for the families and survivors of the Bali tragedy. This has included the provision of lifetime rehabilitation assistance for those injured, assistance with living and travel costs to attend the first anniversary commemorations in Bali and Canberra, emergency financial assistance and continuing personal support from Centrelink family liaison officers. In addition, FaCS continues to provide information to survivors and families through the Baliassist web site and Bali Update newsletter.

awarding Volunteer Small Equipment Grants to 3487 community organisations for the purchase of small equipment items to make the work of volunteers easier, safer and/or more enjoyable

launching the Community Business Partnerships National Brokerage Service, which provides advice and information about partnerships to small- and medium-sized businesses and community groups, and assists them in identifying potential partners

development of the National Framework for Problem Gambling

Indigenous Financial Management in Indigenous communities in Cape York. Projects are helping to increase the purchasing power of families by assisting them in managing their incomes. Indigenous families are building their financial literacy, stabilising family functioning and improving their living standards.

implementation, management and completion, on behalf of the SAAP National Coordination and Development Committee, of the SAAP IV national evaluation. The outcomes and findings of this evaluation will contribute to the Australian Government’s future policy and programmatic responses to homelessness.

Work is required to: further improve health-related outcomes from housing services to Indigenous communities by

building on and learning from FHBH projects of previous years

continue giving communities the opportunity to undertake a range of capacity-building projects, with particular emphasis on better outcomes for children and their families. The Stronger Families and Communities Strategy will move to a greater focus on early childhood with strong links to the National Agenda for Early Childhood.

implement and monitor individual performance reports, as agreed under the bilateral performance frameworks, by states and territories regarding their delivery of housing assistance, including outcomes achieved in the key areas of reducing barriers to workforce participation and attracting investment from outside the social housing system

refine volunteer programs to develop a more integrated approach to supporting volunteers and volunteer-involving organisations

negotiate new arrangements for SAAP following the expiration of the current agreements with states and territories on 30 June 2005

examine options as to how best to use the total pool of Indigenous housing funds provided by the Australian Government to address Indigenous housing priorities

expand the Indigenous Financial Management projects to additional sites, including one at Wadeye, Northern Territory, following the success of the project in Cape York

work with other areas of FaCS and across agencies with a focus on three key priority areas identified by the Indigenous Affairs Ministerial Taskforce:

– early childhood intervention and improving primary health and early education outcomes, to head off longer-term problems

– safer communities

– reducing dependency on passive welfare and boosting employment economic development in Indigenous communities.

Policy outlookThe policy outlook for Outcome 2 reflects the Government’s commitment to building community capacity for self-reliance, encouraging development of local solutions to local problems and, through capacity building, creating opportunities for economic and social participation within local communities. Outcome 2 future directions will continue to address the barriers to participation, particularly for disadvantaged groups, including Indigenous, those at risk of homelessness and people living in rural and remote localities. There will be particular emphasis on delivering Indigenous outcomes through the new service delivery network (Indigenous Coordination Centres in rural and remote areas, and Urban Coordination Centres in metropolitan areas), including stronger connections among program areas.

Budget measuresThis section reports on the achievements and challenges in implementing Budget measures for which expenses began accruing in 2003-04 and as tabled in the relevant Portfolio Budget Statement or Portfolio Additional Estimates Statement. They are listed by published title and in alphabetical order except where interlinked measures are grouped for ease of reading.

Bali terrorist attacks—assistance for victims and family members of victimsThe Government provided additional funding of $14.8 million over four years to assist Bali victims and their families. This assistance includes the holding of commemorations in Bali and Canberra, including providing assistance with travel and accommodation costs; the extension of access to personal support workers; the provision of emergency financial assistance; and lifetime rehabilitation assistance to those injured in the tragedy.

In 2003-04, 211 customers received personal support from Centrelink. In addition to this the following table shows support provided in 2003-04 through new and existing measures.

Table 21: Total assistance to victims and families affected by the Bali tragedy, 2003-04

Types of assistance Activity level No of customersa Cost ($)

Aftermathb 85 27 65 606

Trials 301 76 355 188

First anniversary commemorations 1592 749 1 906 025

Emergency financial assistance 30 27 57 169

Rehabilitationcd 68 20 15 879

Total administered 2076 899 2 399 867a. The same customer may have been assisted under more than one guideline or on more than one occasion.

b. Aftermath assistance included assistance with funerals, travel and accommodation costs for family members searching for, or being reunited with, victims.

c. The expenditure relates to assistance provided to Bali customers over and above the ‘normal’ assistance available to Australians learning to live (and possibly work) with disabilities.

d. Of these 20 customers, six also received modifications assistance.

Bali terrorist attacks—ex gratia payments for the victims and family members of victimsThe Government provided $1 million in financial years 2002-03 and 2003-04 to assist with travel and accommodation costs for certain people affected by the Bali bombings who decided to attend the trials in Bali of those accused of the bombings. This support was extended where a personal support worker was required.

This measure extends the assistance provided in 2002-03.

Centrelink Rural Call Centres—continuation of fundingFunding for two dedicated Centrelink rural call centres (RCCs) was extended for four more years from 2003-04 to 2006-07. Centres are located in regional Australia at Maryborough (Queensland) and Port Augusta (South Australia) and provide priority access to isolated rural customers.

Rural call centres continue to achieve very high standards of customer satisfaction, averaging around 88 per cent overall satisfaction (‘good’ or ‘very good’ responses) with the quality of services and information provided throughout the financial year.

Since the program’s inception, the role of and demand on the rural call centres has expanded well beyond the initial forecasts. In 2003-04 the centres were critical to the effective delivery of the Sugar Industry Reform Program, Drought Assistance Package and the Farm Help Program.

Personal counselling services in drought-affected rural areas— funding extensionAdditional funding of $2 million was provided to continue providing personal counselling services for those affected by the drought. This followed the success of a similar initiative in 2002-03. Counselling was provided by more than 30 Family Relationships Service Program providers operating through 100 outlets across Australia and by Centrelink social workers and psychologists.

A combination of face-to-face and telephone counselling provided wide coverage and choice of services to people in drought-affected communities. Service providers were active in promoting the availability of counselling services and this led to an increased number of clients seeking these services.

Stronger Families and Communities StrategyA total of $15 million was provided for 2003-04 to continue funding community-based projects to strengthen the resilience of families and support better parenting skills. The funding has helped families and communities to build strength and resilience so they can identify and resolve local issues, manage the impact of social and economic change and explore opportunities for development.

Support for Indigenous people—continue funding for Centre for Aboriginal Economic and Policy ResearchA collaborative agreement for the continued provision of social policy research into issues relevant to Indigenous policy in the Department of Family and Community Services portfolio has been signed with the Australian National University, represented by the Centre for Aboriginal Economic Policy Research (CAEPR). The agreement covers the period from January 2004 to June 2007.

A research agenda has been developed for the calendar year 2004, with two research projects identified for implementation. Both projects have commenced and reports are due for completion in the second half of 2004. These projects have been generated through work under the Council of Australian Governments’ Indigenous Community Coordination Pilot (ICCP) operating at Wadeye in the Thamarrurr region of the Northern Territory.

The first project will focus on enabling local personnel to understand, maintain and update a recently developed database for governance purposes such as planning, policy development, monitoring and evaluation.

The second project is a study of the opportunity costs for the local community involved in maintaining the ‘status quo’—that is, the economic costs for disadvantaged communities of issues such as low employment and occupational status, low-income status, poor education, high crime and custody rates—and of the costs needed for remedial action. In addition to generating useful data for ICCP members on program expenditure flows, it seeks to shift the view of government spending from one of sunken expenditures to one of investments with future social and economic return.

Support for Indigenous people-expansion of Centrelink’s Agent and Access Point NetworkCentrelink advises that the agency has continued its commitment throughout the year to improving access in, and delivering quality of services to, rural, regional and remote Australia with the extension of the Centrelink network of agents and access points across the country. Host organisations such as community groups and local councils are contracted to deliver services and programs on Centrelink’s behalf.

The current network exceeds 340 Centrelink agents and over 160 Centrelink access points, extending Centrelink’s service delivery to more than 1000 sites across Australia.

EvaluationAn independent review of the Voluntary Work Initiative and its sister program, the Volunteer Management Program, was finalised in August 2003. Overall, the review concluded that these programs continue to provide valuable support to the volunteering sector in Australia and are making a significant contribution to the Australians Working Together initiative. The review also identified opportunities to better exploit links between the programs, and to develop a more integrated approach to support volunteers and volunteer-involving organisations.

Evaluation and action research for the Stronger Families and Communities Strategy has met the required standards. Project-level evaluation and action research has been undertaken by many projects. A comprehensive national evaluation is being undertaken by an evaluation team led by the RMIT University. Progressive reporting has informed the development of the new Stronger Families and Communities Strategy. The final evaluation report is due in 2005.

Output Group 2.1 I Housing supportContribution to Outcome 2Housing support contributes to Outcome 2 by:

assisting low- and moderate-income households to access appropriate affordable housing

supporting initiatives to assist homeless people and those at risk of homelessness.

Strategies oversee the significant Australian Government investment in the Commonwealth-State

Housing Agreement (CSHA), which aims to provide appropriate and secure housing assistance for those who most need it

identify emerging housing issues through research and analysis to inform policy development

collaborate with the states and territories to achieve better social housing outcomes

manage the Rent Assistance program, which provides supplementary income to almost one million Australians to contribute to the cost of private rental housing

influence the response to homelessness issues through the Supported Accommodation Assistance Program (SAAP), which provides support and accommodation services for people who are homeless or at risk of becoming homeless

undertake policy development to prevent and address homelessness through the National Homelessness Strategy.

Outputs under Output Group 2.1

Commonwealth-State Housing Agreement (for expenses under the Housing Assistance Act 1996)The CSHA provides Australian Government grants of $4.75 billion over five years (approximately $930 million each year) to states and territories to assist those people whose housing needs cannot be met in the private sector to access appropriate and affordable housing.

Commonwealth-State Housing Agreement-Aboriginal Rental Housing ProgramAs part of the total CSHA funding, $91 million a year is provided to state and territory governments to supply Indigenous people with safe, healthy and sustainable housing.

Family Homelessness Prevention and Early Intervention PilotThe pilot program comprises eight services. Centrelink and community agencies work in partnership to identify and assist families at risk of homelessness.

National Housing PrioritiesThe program provides funding to support development of the community housing sector, including funding to support two national community housing representative bodies, the National Community Housing Forum and the Community Housing Federation of Australia.

National Housing ResearchFunding supplements the Australian Government’s $1.5 million annual funding commitment to the Australian Housing and Urban Research Institute (AHURI). Funds may also be used for research, development, demonstration and evaluation in relation to housing.

Rent AssistanceRent Assistance contributes to the improvement of housing affordability and complements broader income-support objectives by assisting individuals and families with the additional costs associated with renting in the private housing market. Rent Assistance provides assistance to almost one million Australians with an Australian Government provision of $1.95 million.

Rent Assistance is a non-taxable income supplement payable to those who receive an income support payment (except Austudy Payment) or an amount of Family Tax Benefit A greater than the base rate.

Social Housing Subsidy Program (SHSP)The program demonstrates use of private sector financing models for providing social housing. New South Wales and the Australian Capital Territory have projects funded under the program.

Supported Accommodation Assistance Program (SAAP)SAAP contributes to the reduction of homelessness through the provision of Australian Government grants to states and territories — over $170 million in 2003-04. The Australian

Government will contribute approximately $830 million over the life of the SAAP IV agreement (2000-05).

Supported Accommodation Assistance Program —National PrioritiesIn 2003-04 funding under the SAAP National Priorities was allocated to the National Homelessness Strategy. This included funding for the Commonwealth Advisory Committee on Homelessness and funding for demonstration projects to expand the knowledge base on homelessness and inform future policy and program development to prevent and reduce homelessness.

Performance summary

Key achievements included: successful negotiation of the 2003 CSHA bilateral agreements with all states and territories,

including performance frameworks outlining targets, strategies and outcomes to be achieved over the five-year agreement. In 2003-04 the CSHA provided grants totalling almost $930 million to states and territories for the provision of public, community and Indigenous housing, as well as crisis accommodation programs.

accommodation of 338 035 households in public housing at 30 June 2003

meeting the needs of around 97 600 clients through 1282 services on 176 300 occasions of support through SAAP in 2002-03. SAAP provided grants of around $170 million to states and territories to provide support to and accommodate people who are homeless or at risk of being homeless.

development and implementation of the SAAP national research agenda, focusing on trends in homelessness, causes of homelessness, groups with special needs and service delivery to homeless people

completion of the interim evaluation of the Family Homelessness Prevention and Early Intervention Pilot (FHPEIP), showing positive outcomes for the families assisted

support for a range of action research projects through the National Homelessness Strategy

further simplification of the Rent Assistance program through consolidation of the eight Rent Assistance rate calculators into one in the Social Security Act 1991. This consolidation will improve readability and ease of use when determining the rate of payment for Rent Assistance.

assisting an average of 938 000 income units with the cost of private renting each fortnight at a cost of $1.95 billion

implementation, management and completion, on behalf of the SAAP National Coordination and Development Committee, of the SAAP IV national evaluation.

Work is required to: implement and monitor individual performance reports, as agreed under the bilateral

performance frameworks, by states and territories regarding their delivery of housing assistance, including outcomes achieved in the key areas of reducing barriers to workforce participation and attracting investment from outside the social housing system

negotiate new arrangements for SAAP following the expiration of the current agreements with states and territories on 30 June 2005

complete research projects commissioned under the SAAP national research program on behalf of the SAAP National Coordination and Development Committee

complete the final evaluation of the Family Homelessness Prevention and Early Intervention Pilot and continue to use the findings of the demonstration projects under the National Homelessness Strategy to influence policy and service delivery, where appropriate

continue management of the AHURI research program

examine options as to how best to use the total pool of Indigenous housing funds provided by the Australian Government to address Indigenous housing need

complete the review of the Crisis Accommodation Program (CAP)

implement the Household Organisational Management Expenses (HOME) advice program, a 2004-05 Budget initiative.

Financial and staffing resources summaryTable 22: Output Group 2.1—Housing support

Group 2.1: Housing support

(A) Budgeta

2003-04 $’000

(B)Actual

2003-04$’000

Variation (column B minus column A)

$’000

Budgetb

2004-05 $’000

Administered Expenses (including third party outputs)

Family Homelessness Prevention and Early Intervention Pilot 1 311 1 241 -70 1 255

National Housing Priorities364 357 -7 372

National Housing Research420 420 0 420

Supported Accommodation Assistance Program (National Priorities) 808 850 42 811

Commonwealth State Housing Agreement (for expenditure under the Housing Assistance Act 1996) 929 875 929530 -345 940 711

Social Housing Subsidy Program2 130 2 048 -82 2 130

Supported Accommodation Assistance Program (for expenditure under the Supported Accommodation Assistance Act 1994) 171 260 171 260 0 174 688

Total Administered Expenses 1 106 168 1 105 706 -462 1 120 387Price of Departmental Outputs

Policy Advice4 377 4 378 1 6 474

Purchasing, Funding & Relationship Management 2 344 2 344 0 3 467

Research and Evaluation3 077 3 078 1 4 550

Service Delivery (Centrelink)1 198 1 202 4 5 228

Service Delivery (other)202 202 0 211

Revenue from Government (Appropriation) for Departmental Output Groups 11 198 11 204 6 19 930FaCS Componentc

10 000 10 002 2 14 702

Centrelink Component1 198 1 202 4 5 228

TOTAL FOR GROUP 2.1 1 117 366 1 116 910 -456 1 140 317Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 139 123

a Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b Budget prior to additional estimates.

c FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Commonwealth-State Housing AgreementNote

Data for the Commonwealth-State Housing Agreement refers to public housing for 2002-03, as data for 2003-04 are not due until December 2004.

Effectiveness-adequacyPercentage of households where dwelling size is not appropriate due to overcrowding

Table 23: Percentage of households where dwelling size is not appropriate due to overcrowding, 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

0.6 0.9 1.2 0.3 0.3 0.7 0.2 1.2 0.7

Effectiveness-affordabilityRent charged as a proportion of market rent for each dwelling (after reducing market rent by the amount of Rent Assistance a household would receive if renting privately)

Table 24: Rent charged as a proportion of market rent for each dwelling (adjusted for Rent Assistance), 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

56.0 66.9 87.9 80.1 81.9 94.0 5i-3 67.0 67.8

Note: States and territories used different methods for calculating market rent and the natures of the private rental markets differ.

Effectiveness-targetingNew allocations to those in greatest need as a percentage of all new allocations

Table 25: New allocations to those in greatest need as a percentage of all new allocations, 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

29.3 66.9 9-i 22.9 42.2 87.1 87.1 20.0 37-9

Note: ‘Greatest need’ means that a household was, at the time of allocation, in one or more of the following circumstances: they were homeless; their life or safety was at risk in their accommodation; their health condition was aggravated by their housing; their housing was inappropriate to their needs; or they had extremely high rental costs. Queensland data represent applicants who satisfied stringent priority housing criteria but do not include customers in circumstances similar to those who satisfy the criteria who were housed through Queensland’s standard ‘wait turn’ criteria.

New low-income householders as a percentage of all new households

Table 26: New low-income households as a percentage of all new households, 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

99-9 99.1 99-7 99-3 98.7 99.8 99-9 99-7 99-5

Note: This indicator shows the percentage of new households allocated public housing where household income was below the effective cut-out for receiving income support payments (at the pensioner rate).

Percentage of new tenancies allocated to households with special needs

Table 27: Percentage of new tenancies allocated to households with special needs, 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

52.4 43-7 38.9 44-7 59.0 49-9 35-3 62.8 48.1

Note: Households with special needs have one or more of the following characteristics: Indigenous; have a member with disabilities; the principal tenant is aged either 24 years or under, or 75 years or more.

Quality-access and choicePercentage of households rating amenity and location aspects of their dwelling as important and meeting their needs

Table 28: Amenity and location aspects of dwelling meet customers’ needs (%), 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

Amenity 75 77 78 79 79 79 76 75 77

Location 86 84 88 83 87 86 87 84 86

Quality-assuranceNumber of days taken to occupy vacant stock

Table 29: Number of days taken to occupy vacant stock, 2002–03

NSW VIC QLD WA SA TAS ACT NT Australia

33 38 29 44 43 39 39 60 37

Note: The data are affected by changes in maintenance programs, and some jurisdictions may have difficulty in excluding stock upgrades.

Quality-customer satisfaction Customer satisfaction with service

Table 30: Client satisfaction with service (%), 2002–03

NSW VIC QLD WA SA TAS ACT NT Australia

67 63 74 68 74 70 59 68 68

QuantityNumber of dwellings

Table 31: Number of dwellings, 2002-03

NSW VIC QLD WA SA TAS ACT NT Australia

125 216 64849 49 579 31720 47 772 12 004 11043 5829 348 012

CommentaryFaCS has worked with state and territory housing authorities to successfully develop the 2003 CSHA bilateral agreements. These agreements include refined and streamlined performance frameworks that articulate a range of outcomes to be achieved over the five-year agreement, and various strategies that aim to reduce workforce disincentives for social housing tenants and attract outside investment into the social housing sector.

Commonwealth-State Housing Agreement-Aboriginal Rental Housing Program

Note: At the time of publication only figures for the financial period 2002-03 were available, unless otherwise stated.

Effectiveness-capacityEfficient and sustainable Indigenous community housing organisations

100 per cent of states and territories are involved in implementing the National Skills Development Strategy for Indigenous Community Housing Management. The level of activity in developing and implementing training strategies varies between jurisdictions. Queensland and New South Wales

have developed comprehensive and successful training strategies using housing management training packages. The Northern Territory has begun to build its skills base using environmental health training.

Indigenous community housing organisations have effective housing management plans

In 2003-04, all states and territories agreed to report from 2004-05 onwards on Indigenous community housing organisations’ implementation of housing management plans. The most current data show that 55 per cent of Indigenous community housing organisations have completed the planning development process and have now finalised housing management plans, including asset and tenancy management strategies.

Effectiveness-take-up/coverageIncrease in Indigenous community housing rental income

Most recent data show there has been an increase of approximately $4.426 million (9 per cent) in Indigenous community housing rental income across Australia during the 2002-03 financial year.

Effectiveness-targetingRatio of capital to recurrent funding ratio

Annual performance reports for 2002-03 identify some states and territories as having made significant progress in achieving a ratio of capital to recurrent funding of 70:30. The Northern Territory reported an approximate 75:25 ratio of capital to recurrent funding for Indigenous housing, New South Wales reported a ratio of 62:38, Western Australia reported a ratio of 55:45 and South Australia achieved a 47:53 ratio in 2002-03. Information for other states was not available at the time of writing.

Quality-assurance90 per cent of health hardware in houses is fully functional and enables healthy living practices

All states and territories agreed to use the National Indigenous Housing Guide (2nd edition) to complement state and territory building standards, environmental health, building and planning legislation and local government building regulations. At this stage, negotiations are still occurring with states and territories about reporting against the National Framework for the Design, Construction and Maintenance of Indigenous Housing.

Fixing Houses for Better Health 2 projects (data from these projects used to measure this indicator) were completed in a total of 434 houses, with follow-up visits occurring six months later for 349 houses. Functionality levels were substantially improved for critical health living practices. For example, at the first visit, 66 per cent of houses had no power, water or waste connected whereas at the second visit, 92 per cent of houses were connected to these essential services. Specifically, 78 per cent of houses had safe electricity systems (compared with 11 per cent before the survey); 78 per cent had safe gas (62 per cent); 80 per cent had a working shower (23 per cent); 90 per cent had a working flush toilet (51 per cent) and 72 per cent had working laundry services (22 per cent).

All states and territories have Indigenous housing agreements signed

Seven states and territories had Indigenous housing agreements signed by 30 June 2004. Tasmania still has an agreement outstanding at this date.

Indigenous community housing organisations have managers with accredited housing management training

All states and territories are aware of the need for Indigenous community housing organisations to build their skills base to become efficient and sustainable. Most recent administrative data indicate that approximately 120 Indigenous community housing organisation managers and staff had undertaken or completed accredited housing management training in 2002-03.

New houses for Indigenous people are designed and built to minimise the impact of crowding on people’s health

The second revised and updated edition of the National Indigenous Housing Guide was published and a series of implementation workshops held across the country. All newly constructed houses should now be meeting the requirements of the National Framework for the Design, Construction and Maintenance of Indigenous Housing using the National Indigenous Housing Guide and/or state and territory building standards, environmental health, building and planning legislation, and local government building regulations. This will be reported against in the 2004-05 FaCS annual report.

Reduction in the number of Indigenous families in rural and remote areas living in improvised dwellings

The latest available data are the 2001 Community Infrastructure Needs Survey (CHINS) information on temporary dwellings. Temporary dwellings are defined in CHINS as structures used as a place of residence that do not meet building requirements. In the 2001 CHINS, 1882 Indigenous people were reported living in temporary dwellings. There has been a reduction of 399 since the 1999 CHINS was conducted. Data are not currently available on the breakdown of this figure across rural, remote and urban areas.

In 2003-04, 71 per cent of annual Indigenous housing plans included strategies to reduce the number of Indigenous families living in improvised dwellings.

Reduction in the number of Indigenous households with two or three families and/or reduction in average housing occupancy rates

Most recent available data indicate that there has been a decrease of 0.8 per cent in the proportion of households where dwelling size is not appropriate due to overcrowding during 2002-03.

In 2003-04, 100 per cent of annual Indigenous housing plans included strategies to reduce the average housing occupancy rates.

CommentaryIn the 2001-02 Budget, new housing funds included an extra $29 million for the Aboriginal Rental Housing Program (ARHP) from 2002-03 to 2004-05 ($9 million in 2002-03 and $10 million each in 2003-04 and 2004-05). The states and territories receiving the extra funding are the Northern Territory, Queensland, Western Australia and South Australia.

From 1 July 2004, the Community Housing and Infrastructure Program (CHIP) will be part of the FaCS portfolio of Indigenous housing programs. The transfer of CHIP to FaCS provides an opportunity to streamline service delivery arrangements as well as examine how best to use the total pool of Australian Government Indigenous housing funds to improve housing outcomes for Indigenous Australians.

Total price$929.5 million

Family Homelessness Prevention and Early Intervention PilotEffectiveness-early intervention

Percentage of clients with positive outcomes as defined under the program

78 per cent of families achieved an improved outcome in one or more of the following areas: financial situation; health; family relationships; personal skills; and community participation.

Percentage where financial circumstances are assessed-100 per cent

Percentage where reattachment with education, training or employment is achieved

50 per cent of adults who identified employment or education as case plan goals were successful.

95 per cent of school-aged children were attending school at the end of the support period.

Percentage where reattachment with community or family support network is improved-88 per cent

Percentage where family capabilities are improved-65 per cent

Percentage where living situation has stabilised-90 per cent

QuantityNumber of people assisted-Approximately 1200

Number of children only-Approximately 720 children

Number of children and their parents/guardians-Approximately 1200

Number of parents/guardians only-Approximately 480 parents/guardians

Price$1.2 million

CommentaryIn 2003 the interim evaluation of the pilots was completed, revealing very strong outcomes for participating families:

90 per cent of families stayed in their homes or were rehoused

78 per cent of families achieved an improved outcome in one or more of the following areas: financial situation; health; family relationships; personal skills; and community participation

over 50 per cent of adults who identified employment or education as case plan goals were successful. Those in employment after support rose from 14 per cent to 22 per cent, and participation in part-time education rose from 4.5 per cent to 10 per cent.

By June 2004 approximately 350 families (1200 customers) had been assisted under the pilot program in eight communities across Australia.

The final evaluation of the pilots will be completed during 2004-05.

The pilots are also contributing to fulfilling the department’s commitment to Indigenous people. The Indigenous participation rate in the pilots is 32 per cent, significantly higher than their participation rate in other mainstream programs.

The Australian Government committed further funding of $10.4 million over four years in the 2004-05 Budget to continue this work. From I July 2004 the pilots will be renamed and will continue as the Household Organisational Management Expenses (HOME) advice program.

National Housing PrioritiesQuality-assurance

Information received from organisations useful in housing policy development

The Community Housing Federation of Australia and the National Community Housing Forum provide FaCS with useful information that identifies current and emerging issues within the community housing sector. This advice helps FaCS to establish priorities and develop appropriate policy responses for the sector, and evaluate community housing initiatives.

Organisations’ representative structures provide effective mechanism for members’ views to be reflected in reports to FaCS

The representative structures of both organisations provide effective mechanisms for members’ views to be provided to FaCS. Both organisations have effectively maintained their membership base.

Projects achieve agreed outputs

FaCS Housing Support Branch is satisfied with the quality and timeliness of project outputs. In particular, recent project outputs on governance arrangements for larger-volume structures, regulation and community housing standards, and the tax implications of community housing joint ventures have been of benefit to the development of the sector.

Price$0.4 million

CommentaryThe Community Housing Federation of Australia (CHFA) is the national peak organisation representing the views of community housing providers throughout Australia. Through research, developing public policy and maintaining links with and between housing providers across Australia, CHFA advocates on behalf of the community housing sector at the national level. The National Community Housing Forum operates as a multipartite body that brings together representatives of service providers and consumers as well as representatives from all levels of government to develop community housing nationally.

National Housing ResearchQuality-assuranceFunded organisation meets the requirements of the funding agreement and associated documents

The Australian Housing and Urban Research Institute (AHURI) is the major vehicle for housing research and has met the requirements of the current funding agreement. A new funding agreement, effective from 1 July 2004, commits the Australian Government to fund AHURI until December 2005.

Price$0.4 million

CommentaryFour AHURI research projects were approved in 2003-04. The projects, to be completed over the next two years, will build AHURI’s evidence base around ten key themes: housing assistance programs; housing futures; program integration and housing assistance; innovation in the provision of housing; urban management and infrastructure; transforming communities; Indigenous housing; homelessness and marginal housing; the housing system; and the policy horizon.

The individual projects will be augmented by collaborative research ventures (CRVs), which will be up to three years in duration and cover broad research areas. The first CRV—‘Housing assistance and nonshelter outcomes’ — commenced in 2003-04, with two other CRVs — ‘2ist Century housing careers and Australia’s housing future’ and ‘Housing affordability for low-income Australians’—being developed in this period.

Rent AssistanceEffectiveness—affordabilityImpact of Rent Assistance on housing affordability—percentage of persons or couples paying more than 50 per cent of their combined income on rent after Rent Assistance taken into account

As at March 2004, if Rent Assistance were not payable, 28 per cent of persons or couples would have had to pay more than 50 per cent of their income in rent. When Rent Assistance is taken into account, this percentage drops to 9 per cent.

Table 32: Ratio of housing costs to income, before and after Rent Assistance, sample fortnights, June 2000 to March 2004a

If Rent Assistance not available With Rent Assistance available

Date

Paying more than 50 per cent of income in rent (%) Date

Paying more than 50 per cent of income in rent (%)

March 2004 28 March 2004 9

June 2003 28 June 2003 9

June 2002 28 June 2002 9

June 2001 27 June 2001 9

June 2000 33 June 2000 11

a. Latest information is for the fortnight ending 5 March 2004.

Impact of Rent Assistance on rental affordability-percentage of persons or couples paying more than 30 per cent of their combined income on rent after Rent Assistance taken into account

As at March 2004, if Rent Assistance were not payable, 69 per cent of persons or couples would have had to pay more than 30 per cent of their income in rent. When Rent Assistance is taken into account, this percentage drops to 36 per cent.

Table 33: Ratio of housing costs to income, before and after Rent Assistance, sample fortnights, June 2000 to March 2004a

If Rent Assistance not available With Rent Assistance available

DatePaying more than 30 per cent of income in rent (%) Date

Paying more than 30 per cent of income in rent (%)

March 2004 69 March 2004 36

June 2003 70 June 2003 36

June 2002 70 June 2002 35

June 2001 69 June 2001 34

June 2000 75 June 2000 42

a. Latest information is for the fortnight ending 5 March 2004.

Effectiveness-targetingPercentage of individuals or couples paying enough rent to receive maximum assistanceTable 34: Percentage of persons or couples paying enough rent to receive maximum assistance, sample fortnights, June 1998 to March 2004a

Date June 1998

June 1999

June 2000

June 2001

June 2002

June 2003

March 2004

Paying enough rent to receive maximum assistance (%)

61 63 63 57 57 59 62

a Latest information is for the fortnight ending 5 March 2004.

QuantityNumber of persons or couples receiving Rent Assistance

Of the 949 698 Rent Assistance recipients at 11 June 2004, 54 per cent were single without children; 24 per cent single with children; 14 per cent couples with children; and 8 per cent couples without children.

Table 35: Number of persons or couples receiving Rent Assistance, as at 11 June 2004

Persons or couples receiving Rent Assistance Gender of recipients

Primary paymenta Number (%)Female only (%)

Male only (%)

Both members of a couple (%)

Age Pension 162 602 17 54 27 19

Disability Support Pension 173 825 18 41 51 8

Newstart Allowance 182 984 19 42 55 4

Parenting Payment Single 200 460 21 93 7 0

Parenting Payment Partneredb 27 492 3 91 8 1

Youth Allowance 87 940 9 59 39 1

Family Tax Benefit 77 469 8 84 15 0

Other payments 36 926 4 61 28 10

Total 949 698 100 62 32 6a. One member of a couple is treated as the reference person depending upon the type of payment received.

b. A couple is reported as receiving Parenting Payment (Partnered) only if neither member of the couple receives another social security payment.

c. A person or couple is reported as receiving Family Tax Benefit only if neither the person nor partner receives a social security payment.

Price$1.953 billion

Rent Assistance payments are included in the special appropriation expenses for the primary payments listed in table 35. There is no separate line in the resource tables for Rent Assistance.

CommentaryThe average rent paid by persons or couples entitled to receive Rent Assistance for 5 March 2004 was $274 a fortnight while the average amount of Rent Assistance was $77 a fortnight.

Figure 11 Rent Assistance expenditure (2004) and customer numbers, 1993–04 to 2003–04

Social Housing Subsidy ProgramQuantityNumber of dwellings funded-332

Price$2.0 million

CommentaryThe Social Housing Subsidy Program (SHSP) was introduced in the early 1990s to demonstrate private sector financing models to expand housing options for rental tenants. The program involves a significant shift from the traditional focus on capital funding to more flexible approaches that utilise private sector investment, such as head leasing. Two projects operate under the program: the expansion of community housing opportunities in New South Wales and a private leasing scheme in the ACT. The ACT Government has released Stage 1 of its review of the private leasing scheme.

Supported Accommodation Assistance Program (SAAP)Note

Performance information for SAAP refers to 2002-03. Data for 2003-04 will be available towards the end of 2004.

The indicators below use a mix of client data and support period data because some SAAP clients make multiple use of SAAP services. All SAAP data are based on support periods or occasions of support, but it is possible to estimate the number of clients and derive demographic details. Unit

costs are based on recurrent funding allocations, excluding casual and potential clients, and accompanying children.

CostCost per customer assigned a SAAP service-$3040

Cost per completed support period-$1890

Cost per day of support-$41

Effectiveness-early interventionPercentage of SAAP customers’ identified needs that are met by the program-93.1 per cent

Effectiveness-independencePercentage of customers entering support with no income who exit with income-2.3 per cent (income includes income support)

Percentage of customers exiting to independent housing after support-72.4 per cent

Quality-access and choicePercentage of people seeking services who receive a service-85.8 per cent

Percentage of people with Aboriginal and Torres Strait Islander backgrounds seeking services who receive a service-82.3 per cent. The proportion of Aboriginal and Torres Strait Islander people among total SAAP clients was 17.7 per cent.

Percentage of people with culturally and linguistically diverse backgrounds seeking services who receive a service-94.o per cent. The proportion of people from culturally and linguistically diverse backgrounds among total SAAP clients was 9.79 per cent.

Quality-assuranceCommissioned research is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

Research and evaluation during 2003-04 was of a high standard. It met timelines and terms of reference and was methodologically sound.

Service improved through increased percentage of SAAP clients with a case plan

There was an agreed support plan for 61.3 per cent of support periods or occasions of support in 2002-03.

QuantityNumber of customers assisted annually-97 600

Number of occasions of support-176 300

Price$171.3 million

CommentaryDuring 2003-04, on behalf of the SAAP National Coordination and Development Committee, FaCS commissioned a number of research projects that were designed to research, gather and analyse data and information about SAAP and homelessness issues. The findings of these projects would inform the national evaluation of SAAP IV, which was also conducted in 2003-04.

The research projects undertaken and completed in 2003-04 included research to progress measurement of new indicators in the following areas: outcome measurement in SAAP-funded services, and identification and measurement of clients with high and complex needs.

Also undertaken and completed were a comprehensive literature review of Australian and international trends in homelessness; analysis of SAAP data relating to client outcomes; investigation of the support structures needed by SAAP clients to access and secure successful housing after homelessness; and research on the pathways into homelessness by ex-prisoners.

A survey of customer satisfaction in SAAP was also conducted in 2003-04. Nationally, implementation of the information management plan has progressed, including the piloting of a new core data set and exploring the possibility of introducing a new customer record linkage key in 2005.

The Supported Accommodation Assistance Act 1994 stipulates that there should be a national evaluation to measure program performance every five years and that the evaluation report is to be provided to ministers twelve months before the end of the current agreement.

In June 2003, Australian Government and state and territory government officials agreed to the approach to be used for the SAAP IV national evaluation.

The national evaluation commenced in August 2003, and was conducted by an independent consultant who accessed and analysed various data and information sources to assess the effectiveness, efficiency and appropriateness of current program arrangements. Significant public consultation and input from stakeholders occurred as part of the evaluation. FaCS managed the national evaluation on behalf of the SAAP National Coordination and Development Committee.

The evaluation was completed in May 2004 and provided to the Community and Disability Services ministers’ conference in July 2004. The Australian Government’s commitment to negotiating a new SAAP agreement with the states and territories was announced at this conference.

Supported Accommodation Assistance Program—National PrioritiesEffectiveness-early interventionProjects funded test new and innovative interventions that respond to, prevent or reduce homelessness

A number of strategies to support individuals and families to overcome barriers to stable housing have been successfully tested. They include strategies to increase access to and retention of private rental properties by independent young people, provision of knowledge and skills to traditionally living Aboriginal people about sustaining housing tenancies in an urban setting, and developing information and education for Indigenous young people in order to prevent homelessness.

Price$0.85 million

CommentaryReports from a number of different demonstration projects have recently started to become available. The findings from these reports will provide an evidence base to inform policy and program development in a range of relevant areas.

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 2.1, 1.0 cent was spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

242 ministerial submissions and other written briefings or advice prepared; 443 ministerial replies to correspondence completed.

Price$4.4 million

Purchasing, funding and relationship managementQuality-assuranceDepartment ensures that service providers meet terms and conditions of funding

All service providers met the terms and conditions of funding.

Service agreements or contracts that meet legislative, government policy and departmental requirements are in place with all service providers

All service agreements and contracts met defined standards. FaCS and Centrelink agreed on a Business Alliance Agreement for delivering Rent Assistance in 2004-05.

QuantityNumber of contracts or service agreements under management-45

Number of service providers under management-38

Price$2.3 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

All research met the required standards.

QuantityMajor pieces of research and evaluation completed

Two major evaluations, plus contributions to Australian Housing and Urban Research Institute (AHURI).

Price$3.1 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS

Rent Assistance is not separately appropriated, so Centrelink’s performance in respect of Rent Assistance is generally measured with the primary income support payments. Table 36 includes performance information on Rent Assistance relating to the number of reviews and appeals.

Quality—customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

In 2003-04 an estimated total of 154 732 reviews relating to Rent Assistance were conducted. It is estimated that 38 716 rate reductions resulted in fortnightly savings of $4.3 million, and 13 193 upward variations resulted in fortnightly increases of $636 000. The 17 242 debts totalled $4.8 million.

In addition to the above reviews, Rent Assistance incorrect payment and fraud is also controlled through review activities undertaken for qualifying primary payments.

Percentage of reviews and appeals where the original decision is changed

Table 36: Reviews and appeals—Output Group 2.1, 2003–04

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Payment type

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Rent Assistance 347 36 67 37 9 33

Price$1.2 million—Centrelink

$0.2 million — other

Group 2.2 I Community supportContribution to Outcome 2Community support contributes to Outcome 2 by:

developing community capacity and self-reliance

providing concessions and allowances to assist with living costs

helping people living in rural and regional areas to access opportunities for social and economic participation, and services that support their special needs

helping to improve the wellbeing and living conditions of Indigenous people

raising awareness and understanding of problem gambling.

Strategies implement priorities identified to address the adverse impact of problem gambling, including

support for a national research program

encourage Australians to undertake volunteering activities by providing funding to volunteer-involving organisations and the volunteering sector

implement a range of community initiatives through the Stronger Families and Communities Strategy

encourage and promote a culture of corporate and individual social responsibility in Australia

work with community, business and government to encourage more partnership between the sectors, including funding for a national service to broker local community business partnerships

manage the Prime Minister’s Awards for Excellence in Community Business Partnerships

provide a wide range of support measures to Australians recovering from crises and/or disasters

help Australians find relevant and current community information and services through maintaining the ‘Community Portal’ web site.

Outputs under Output Group 2.2

Community Business PartnershipThe partnership aims to identify and address incentives and impediments to philanthropy and to the creation of community business partnerships, and to promote a culture of individual and corporate social responsibility.

Compensation for extension of fringe benefits to pensioners and older long-term allowees and beneficiariesPayment is made to state and territory governments to compensate for additional people entitled to state and territory government concessions following the extension of the Pensioner Concession Card to all part-rate pensioners in 1993.

Concession cardsCommonwealth concession cards, including Pensioner Concession Card (PCC), Commonwealth Seniors Health Card (CSHC) and Health Care Card (HCC), are issued to eligible people to provide them with access to:

certain prescriptions at a cheaper rate

reduced thresholds for the Medicare Safety Net

bulkbilled medical services (at the discretion of the doctor).

Card holders may also be able to access a range of other concessions, such as those for health, household, transport, education and recreation services. The range of concessions available varies according to card type and differs from state to state.

Disaster Relief PaymentIn circumstances where a major disaster is declared by the Minister for Family and Community Services, Disaster Relief Payment provides short-term financial assistance to eligible people affected by the disaster.

Emergency ReliefEmergency Relief provides grants to community and charitable organisations to provide assistance to individuals and families in financial crisis. It also provides training support for paid and voluntary workers in the sector.

Extension of core concessions to Commonwealth Seniors Health Card holdersOn completion of negotiations with state and territory governments, this payment will allow the extension of ‘core’ concessions to CSHC holders.

Ex gratia payments to victims and family members of victims of the Bali terrorist attacksThe program has provided a range of assistance to those most affected by the Bali tragedy, including travel to the trials in Bali, first anniversary commemorations in Bali and Canberra, and continuing personal support by Centrelink family liaison officers.

Family and Community Networks Initiative (FCNI)This program funds projects that strengthen vulnerable and disadvantaged families and communities by delivering local solutions to local problems. Since February 2003 FCNI has been primarily focused on supporting Indigenous communities participating in the Council of Australian Governments’ (COAG’s) Indigenous Community Coordination Pilots (ICCP) around Australia.

Indigenous housing and infrastructure—expand the supply of healthy housingFixing Houses for Better Health (FHBH) projects seek to improve Indigenous health by fixing critical health hardware and safety systems in Indigenous housing and skilling local people to maintain their own houses in the long term. The projects recruit and train local Indigenous people, contract trades and employ local office staff to immediately repair health and safety hardware in every house in a community. Workers are also trained to regularly maintain these systems, thereby reducing the reliance on contracted trades. In 2003-04, 12 projects were funded across Australia for a total of $3 million.

Healthy housing researchThe second edition of the National Indigenous Housing Guide was published. This technical manual seeks to improve the design, construction and maintenance of Indigenous housing. FaCS, in partnership with the Royal Australian Institute of Architects, state Indigenous housing departments, Aboriginal and Torres Strait Islander Services and the army, presented a series of regional workshops for architects, designers, engineers, planners and housing managers exploring the usefulness of the guide.

FaCS completed a project to design a prototype kitchen, which aims to improve nutrition by enabling Indigenous people to improve the safe storage and healthy preparation of food. The kitchen components are designed to withstand high rates of usage in harsh environments. The design will be marketed to housing designers and builders of Indigenous housing, health clinics, aged care facilities, child care centres and staff housing in remote areas.

National Research on GamblingAn agreement between the Australian Government and all states and territories provides funds for a national gambling research program. This will enable governments to better address the negative social and economic impacts of gambling on individuals, families and communities.

National Reciprocal Transport Concessions for State Seniors Card holdersOn completion of negotiations with state and territory governments, the concessions program will assist those governments to fund concessional travel on public transport for holders of State Seniors Cards when they travel interstate.

Reimbursement to Great Southern Rail for concessional faresAn agreement with Great Southern Railway provides funding for it to deliver rail travel concessions to pensioners, eligible veterans and CSHC holders on Great Southern Railway lines (the Ghan, the Overland and the Indian Pacific).

Stronger Families and Communities Strategy: Communities InitiativesThe program helps families and communities to build strength and resilience so they can identify and resolve local issues, manage the impact of social and economic change and explore opportunities for development.

Funding for the Volunteer Small Equipment Grants was included under this initiative. These grants provide up to $5000 to help community organisations purchase equipment to make volunteering activities easier, safer and more enjoyable.

Volunteer Management ProgramThe program provides funding for Volunteer Resource Centres to support volunteer matching, referral and training activities, as well as assistance and training to organisations that use volunteers.

Performance summary

Key achievements included: through community-based projects, successfully helping improve the overall wellbeing of

individuals, families and communities by strengthening local leadership, developing skills and knowledge, supporting volunteers, and supporting early childhood development, parenting and the needs of young children

launching the Community Business Partnership National Brokerage Service, which provides advice and information about partnerships to small- and medium-sized businesses and community groups, and assists them to identify potential partners

conducting, through the Prime Minister’s Community Business Partnership, the first Corporate Social Responsibility essay competition for secondary school students, attracting 292 entries

receiving a record number of nominations for the 2003 Prime Minister’s Awards for Excellence in Community Business Partnerships

recommendations for taxation reforms to encourage philanthropy (for instance, to allow individuals, under certain circumstances, to receive a tax deduction for contributions made at one-off fund raising events)

completing a memorandum of understanding regarding funding for the National Gambling Research Agenda signed by all jurisdictions in October 2003, to include establishment of a secretariat to oversee implementation of agreed research projects

partnership with state and territory governments to develop the National Framework on Problem Gambling

delivery of two rounds of Volunteer Small Equipment Grants to 3487 community organisations, worth over $7 million in total

completion of a needs analysis for volunteering programs to identify areas of high need

providing a waiver of Centrepay fees to organisations offering no-interest loans under the National No-Interest Loan Scheme

conducting Fixing Houses for Better Health (FHBH) projects in 12 remote Indigenous communities across Australia: Western Australia (4), New South Wales (1), South Australia (5) and the Northern Territory (2)

conducting a series of regional workshops across Australia for architects, designers, engineers, environmental health officers and Indigenous housing managers to apply standards of the National Indigenous Housing Guide (2nd edition) in the design, construction and maintenance of Indigenous housing

responding to people in crisis as a result of the Bali tragedy and the drought

supporting Indigenous communities participating in COAG’s Indigenous Community Coordination Pilots (ICCP) around Australia through 22 projects, funded through the Family and Community Networks Initiative (FCNI)

maintaining the ‘Community Portal’ web site, which receives up to 700 visits per day and has links to 3381 Internet sites.

Work is required to: complete an evaluation of the Stronger Families and Communities Strategy

develop and implement a strategy for ongoing training and development of staff in the emergency relief sector

develop a workplace giving kit, in collaboration with the Tax Office, to be distributed to Australian businesses to explain the benefits of implementing a payroll deduction program to offer staff the opportunity to make a regular donation to a charitable organisation from their pre-tax pay

conduct a major research project to identify and report on Australian philanthropy and the fundraising and development capacity of the not-for-profit sector

implement the National Framework on Problem Gambling, following agreement from all states and territories in July 2004

further extend ‘core’ concessions to CSHC holders and introduce national reciprocal transport concessions for State Seniors Card holders

consult with the volunteering sector and other stakeholders about the future of the Volunteer Management Program and the Voluntary Work Initiative within the context of moving towards a better integrated suite of national volunteering programs

implement further projects and undertake an evaluation of the Family and Community Networks Initiative

develop Centrepay fee funding options for future funding for organisations offering no-interest loans under the National No-Interest Loan Scheme

finalise and publish report on Fixing Houses for Better Health 2

conduct a series of workshops for trades and construction workers on the application of the standards of the National Indigenous Housing Guide, similar to those conducted in 2003-04 for architects, designers, engineers, environmental health officers and Indigenous housing managers.

Financial and staffing resources summaryTable 37: Output Group 2.2—Community support

Group 2.2: Community support

(A)Budgeta

2003-04$’000

(B)Actual

2003-04$’000

Variation (column B

minus column A) $’000

Budgetb

2004-05$’000

Administered Expenses (including third party outputs)

Community Business Partnerships 2 750 1 531 -1 219 4 339

Emergency Relief Program 28 895 32 472 3 577 29 357

Ex gratia payments to victims and family members of victims of the Bali terrorist attacks 5 623 2 400 -3 223 2 004

Family and Community Networks Initiative 1 776 1 572 -204 1 820

Indigenous Housing and Infrastructure—Expand the supply of healthy housing 3 000 3 003 3 3 000

National Research on Gambling 500 600 100 500

Payments under S 33 of the FMA Act 1997 150 174 24 70

Payments under special circumstances 5 3 -2 5

Reimbursement to Great Southern Rail for concessional fares 6 399 4 182 -2 217 7 135

Stronger Families and Communities Strategy: Communities Initiatives 15 212 15 180 -32 14 214

Volunteer Management Program 1 635 1 627 -8 1 649

Compensation for extension of fringe benefits to pensioners and older long-term allowees and beneficiaries 184 997 184 997 0 190 693

Concessions for Commonwealth Seniors Health Card Holders SPP 45 254 0 -45 254 78 974

National Reciprocal Transport Concessions for State Seniors Card Holders 5 600 0 -5 600 5 800

Total Administered Expenses 301796 247 741 -54 055 339 560

Price of Departmental Outputs

Policy Advice 12 034 12 036 2 7 300

Purchasing, Funding & Relationship Management 12 960 12 963 3 7 863

Group 2.2: Community support

(A)Budgeta

2003-04$’000

(B)Actual

2003-04$’000

Variation (column B

minus column A) $’000

Budgetb

2004-05$’000

Research and Evaluation 6 117 6 118 1 3 711

Service Delivery (Centrelink) 17 272 17 331 59 19 136

Service Delivery (other) 1 1 0 1

Revenue from Government (Appropriation) for Departmental Output Groups 48 384 48 449 65 38 011

FaCS Componentc 31 112 31 118 6 18 875

Centrelink Component 17 272 17 331 59 19 136

TOTAL FOR GROUP 2.2 350180 296190 -53 990 377 571

Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 194 171

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b. Budget prior to additional estimates.

c. FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Community Business PartnershipEffectiveness-capacityNumber of hits on Prime Minister’s Community Business Partnership web site

42 820 hits, representing a 143 per cent increase.

Number and calibre of nominations from business and community for awards that recognise excellence in partnerships

306 award nominations were received for the 2003 awards, with 75.5 per cent meeting all selection criteria.

No award was presented in the Media category.

QuantityTake-up of socially responsible policies by the corporate sector

The Department of the Environment and Heritage commissioned research released on 14 July 2004 that showed that the rate of sustainability reporting by Australian companies has doubled, from 57 companies publishing public environmental reports in 2001-02, to 116 publishing sustainability reports in 2002-03. Sustainability reporting is a fair measure for examining the take-up of socially responsible policies as it shows companies are publicly embracing these issues.

Price$1.5 million

CommentaryA review of the Prime Minister’s Awards for Excellence in Community Business Partnerships will be undertaken in 2004-05. While there was a 15 per cent increase in nominations from 2002 to 2003, no award was made in the Media category. The review will examine how the awards have evolved over six years of operation and consider the continuing relevance of each category in the context of changing and evolving attitudes to community business engagement.

In August 2003, the Prime Minister asked the Community Business Partnership to undertake an inquiry into ways for government and business to encourage the private sector to employ more mature-age workers. Advice was presented to the Prime Minister in May 2004.

Compensation for extension of fringe benefits to pensioners and older long-term allowees and beneficiariesQuality-assuranceCertification from states and territories that they are complying with the agreement

All state and territory governments certified they will continue to comply with the terms of the Australian Government - state and territory government agreement.

Price$185.0 million

CommentaryIn 1993 the Australian Government extended the Pensioner Concession Card (PCC) to all part-rate pensioners and certain older long-term allowance recipients. In response to states’ and territories’ concern that an increase in the number of eligible card holders would have an impact on their state concession programs, the Australian Government agreed to provide an annual payment as compensation for the increased costs of ‘core’ concessions — utilities, municipal and water rates, public transport and motor vehicle registration.

Concessions for Commonwealth Seniors Health Card HoldersQuality-assuranceCertification from states and territories that they are complying with the agreement

None (see Commentary below)

CommentaryAgreement has not yet been reached with any state or territory to implement these concessions. When negotiations with state and territory governments are finalised, CSHC holders will be able to access ‘core’ concessions—utilities, municipal and water rates, public transport and motor vehicle registration.

Table 38: Number of persons covered by concession cards, 2003-04a

Concession cardNumber of card holders

Number of dependants listed on cards

Health Care Card 1 237 228 818 749

Low-Income Health Care Card 315 194 19 945

Pensioner Concession Card 3171574 1 128 250

Commonwealth Seniors Health Card 287326 Nil

Totala 5 011322 1 966 944a..Data current as at 11 June 2004.

Disaster Relief PaymentNo major disaster was declared in 2003-04.

Emergency Relief ProgramQuality-assuranceAdoption of voluntary minimum service standards in emergency relief service delivery outlets

Guiding principles and service standards for the program developed by FaCS in consultation with the emergency relief sector define the operating basis for all emergency relief services and provide a guide for implementing the principles, which are adopted by agencies on a voluntary basis.

Funding distributed on the basis of need in accordance with formula-based funding model

The Emergency Relief Program distributes funding based on the regional distribution of recipients of various Australian Government benefits and allowances. These benefits and allowances include Disability Support Pension, Newstart Allowance, Parenting Payment Single, Youth Allowance, Family Tax Benefit Part A (Maximum), the Community Development Employment Program and the Exceptional Circumstances Relief Payment.

QuantityNumber of agencies provided with emergency relief funds-See below

Number of service delivery outlets

FaCS provided funding to around 900 agencies for emergency relief to be distributed through more than 1400 emergency relief outlets.

Price$32.5 million

CommentaryThe Emergency Relief Program provides grants to a range of community organisations to provide emergency assistance to individuals and families in financial crisis. The objective of the program is to help people to deal with their immediate financial crisis in a way that maintains their dignity and encourages self-reliance. Assistance is provided primarily in the form of food vouchers, assistance with accommodation, part payment of utility accounts, material assistance such as food parcels or clothing and sometimes cash.

Ex gratia payments to victims and family members of victims of the Bali terrorist attacksEffectiveness-targetingNumber of hits on Bali Assist web site—2838 hits per month (based on data to 30 June 2004)

QuantityNumber of victims or family members assisted—899

Price$2.4 million

CommentaryThe Australian Government has continued to help those most affected by the Bali tragedy, providing a range of assistance and support. In 2003-04, 76 more people were assisted to attend part of the trials in Bali of the bombing suspects, and 27 additional people were assisted with other costs related to the Bali tragedy. The Bali Assist web site has continued to be a key tool for those seeking information about available assistance, important events and links to other relevant web sites. The average monthly number of hits was 2838, with a peak at 4118 hits in March 2004, highlighting continued demand for the information being offered on the site.

Family and Community Networks Initiative (FCNI)Effectiveness-capacityPercentage of projects achieving agreed objectives

Progress reports indicate that projects funded in 2003-04 have either achieved or are on track to achieving agreed FCNI objectives.

QuantityNumber of organisations involved in community networking initiatives

21 organisations were funded to provide community networking initiatives in 2003-04.

Number of new community networking projects and one-off projects

22 new projects were funded in 2003-04.

Price$1.6 million

CommentaryFunding under FCNI is provided for projects that will strengthen vulnerable and disadvantaged families and communities by improving access to information and delivering local solutions to local problems. Since February 2003 the FCNI has been primarily focused on supporting Indigenous communities participating in COAG’s Indigenous Community Coordination Pilots (ICCP) around Australia. Funding may also be available to support related work with Indigenous communities more generally. Twenty-two new projects were funded in 2003-04 and 13 of these directly supported ICCP sites.

Indigenous Housing and Infrastructure—expand the supply of healthy housing—Fixing Houses for Better Health (FHBH) 3Note

In 2003-04, 12 projects for a new round of FHBH projects, (FHBH3) were allocated a total of $3 million in funding. Performance information for the FHBH3 projects will be available for reporting in 2004-05.

In financial years 2001-02 and 2002-03, $3 million was allocated for FHBH2 projects in 11 remote Indigenous communities in three regions (Northern Territory, Western Australia and Torres Strait). All the FHBH2 projects were completed in 2003-04. The performance information below relates to the FHBH2 projects.

Effectiveness-capacityImprovement in the capacity of Indigenous communities participating in FHBH3 to assess the need for housing maintenance and to maintain their houses to a safe, healthy and sustainable standard

Ongoing employment of Maintaining Houses for Better Health (MHBH) workers is dependent on infrastructure to support a housing maintenance team. In 35 per cent of FHBH2 communities (4), Indigenous community housing managers were trained in the MHBH component of FHBH and continue to oversee local Indigenous workers to conduct regular surveys of safety and critical health hardware, such as taps, electrical items, drainage, and kitchen functionality, and to fix these items where possible at the time of the survey.

Effectiveness—take-up/coverageIntegration of the FHBH3 methodology with the housing maintenance and upgrade programs of state and territory Indigenous housing authorities participating in FHBH3

Indigenous housing authorities in Western Australia and the Northern Territory have initiated housing assessment and maintenance systems comparable or identical to those of FH BH projects.

Quality—assuranceImprovement in the functionality of housing health hardware between survey/fix 1 and survey/fix 2 in all communities participating in FHBH3

FHBH2 projects were completed in a total of 434 houses, with check-back visits occurring six months later for 349 houses. A total of 212 Indigenous people were trained in basic maintenance and employed 134 FaCS Annual Report 2003-04 I Volume 2on the survey teams during these projects. Licensed tradespeople fixed a total of 1826 plumbing items and 968 electrical items. Of these items, 62 per cent of repairs were required due to routine wear and tear; 27 per cent were because items were faulty; and only 11 per cent of repairs were due to damage. Functionality levels were substantially improved for critical health living practices. For example, at the first visit, 66 per cent of houses had no power, water or waste connected whereas at the second visit, 92 per cent of houses were connected to these essential services. Specifically, 78 per cent houses had safe electricity systems compared with 11 per cent before the survey; 78 per cent safe gas (62 per cent); 80 per cent working shower (23 per cent); 90 per cent working flush toilet (51 per cent) and 72 per cent working laundry services (22 per cent).

Price$3.0 million

CommentaryFHBH projects are seen as highly valuable for Indigenous communities as improvements to the functionality of houses are almost immediate and local community involvement in project implementation is very high. Training in survey methodology and basic repairs is provided, with further training available to communities to assist with long-term protection of assets and maintenance routines.

National Research on GamblingEffectiveness-capacityIncreased knowledge available to communities on problem gambling

The National Gambling Research Program projects that have been agreed to will contribute to greater understanding of the prevalence and impact of problem gambling, and the effectiveness of interventions.

Quality—assuranceResearch undertaken by the department, and through the National Gambling Research Program Secretariat, is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development at the national and state level

Research undertaken by the National Gambling Research Program is peer-reviewed at proposal and publication stages. Research funded directly by FaCS has been chosen by tender.

The findings of the National Gambling Research Program projects reflect national and state and territory government priorities, and are used to inform national and state and territory policy and program development.

QuantityNumber of research reports generated by the department and through the National Gambling Research Secretariat

Departmental research — 1 (Youth prevalence study, April 2004)

National Gambling Research Program—nil, establishment and development work only. Agreed projects due to commence in 2004-05.

Price$0.6 million

CommentaryA secretariat has been established in the Victorian Department of Justice and, on behalf of all jurisdictions, has commenced management of the implementation of the National Gambling Research Program.

The list of projects to be completed under the program has been agreed to by the Australian Government and all state and territory governments. Priority research projects under development and due to commence in 2004-05 include:

problem gambling and harm definitions

feasibility study of national gambling surveys

feasibility of longitudinal studies of problem gamblers

analysis of gambling consumers’ pre-commitment behaviour and effectiveness of pre-commitment strategies (a two-phased study).

Payments under section 33 of the FMA Act 1997 (act of grace payments)Quantity147

Price

$0.2 million

National Reciprocal Transport Concessions for State Seniors Card holdersCommencement is subject to agreement with each state and territory. Negotiations are continuing.

Reimbursement to Great Southern Rail for concessional faresEffectiveness-take-up/coveragePercentage of eligible clients using concessional travel on Great Southern Rail-2.07 per cent

QuantityNumber of customers utilising concessional travel on Great Southern Rail

47 451 eligible customers took 71 669 trips on Great Southern Rail services in 2003-04.

Price$4.2 million

CommentaryThe Australian Government funds Great Southern Rail for the cost of concessional travel by Pensioner Concession Card Holders, Veterans and Commonwealth Seniors Health Card holders. As announced in the 2004-05 Budget, effective from February 2004, the agreement was extended to Commonwealth Seniors Health Card holders travelling on the Alice Springs to Darwin line.

Stronger Families and Communities Strategy: Communities InitiativesEffectiveness-capacityCommunities demonstrate and apply greater understanding, skills and capacity as assessed by:

percentage of people completing courses and registering improvements in skills and knowledge—92 per cent of people completing courses registered improvements in skills and knowledge.

qualitative assessments of community projects to determine impact on capacity over time-an assessment to determine the impact of community projects on community capacity over time is being undertaken as part of the national evaluation.

record of regular volunteer training—1081 participants were involved with volunteer training.

Participation in communities increases as indicated by:

number of social networks established—839

number and range of participants in activities, e.g. multicultural groups, Indigenous groups, rural and remote dwellers, and percentage of local populations that attend-66 968 individuals participated in activities, including Indigenous people; young people; people of workforce age receiving Income Support; families with children, including those with children 0-5 years old; people with disabilities; ethnic families; and communities and families living in remote areas

number of community projects—376

number of new volunteers—1334

Quality-access and choicePercentage of community projects undertaken in rural and regional Australia-59 per cent Percentage of projects in disadvantaged communities-100 per cent

Quality—customer satisfactionMechanisms in place to monitor satisfaction of community agencies with training of volunteers and volunteers with training they received-mechanisms in place include questionnaires, evaluation forms, surveys and focus groups.

Percentage of participant and community satisfaction with the range, effectiveness and outcome of the projects-91 per cent

Percentage of project participants satisfied that projects met community need-89 per cent

QuantityNumber of communities involved in the leadership program and network-60

Number of participants in activities and completing training-274

Number of participants nationally in leadership development activities/national network-1923

Number of training initiatives- 87

CommentarySince the launch of the Stronger Families and Communities Strategy in April 2000, nearly 700 projects have been funded covering early childhood; parenting skills; relationship skills; mentoring and leadership; community building; and volunteering programs.

Almost a quarter of the projects have been in Indigenous communities and more than half in rural and remote communities.

A review during 2003 found that there were a number of positive outcomes, including the community-driven, flexible and participatory approach to identifying local projects. There were also areas that needed to be improved, including the need for less complex selection criteria, clearer timeframes for processing applications and a stronger focus on key Australian Government priorities.

The ongoing evaluation of the strategy will contribute to the evidence base for strengthening families and communities in Australia. Results based on project outcomes continue to demonstrate that the strategy is helping emerging leaders to develop and gain skills, supporting the work of assisting volunteers, building networks, building partnerships between business and communities and enhancing participation opportunities in communities.

The future focus of the Stronger Families and Communities Strategy will be towards families initiatives with an expansion of the Government’s commitment to early childhood.

Volunteer Small Equipment Grants QuantityNumber of grants issued

Reported under Output Group 1.1

Number of volunteers participating in volunteer small equipment projects

Reported under Output Group 1.1

CommentaryThe grants of up to $5000 each are for volunteer-involving organisations to purchase equipment that makes volunteering activities safer, easier and more enjoyable.

Total price$15.2 million

Volunteer Management ProgramQuantityNumber of volunteers referred, placed and trained for a period of six months or more-21204

Price$1.6 million

CommentaryA total of 21 442 volunteers were referred to 26 member organisations. 12 810 volunteers were placed in a position and 10 484 volunteers received training under the program.

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 2.2, 19.5 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices are satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

390 ministerial submissions and other written briefings or advice prepared; 414 ministerial replies to correspondence completed.

Price$12.0 million

Purchasing, funding and relationship managementQuality—assuranceDepartment ensures that service providers meet terms and conditions of funding-100 per cent

Service agreements or contracts that meet legislative, government policy and departmental requirements are in place with all service providers-100 per cent

QuantityNumber of contracts or service agreements under management-7230

Number of service providers under management-4618

Price$13.0 million

Research and evaluationQuality—assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development—100 per cent

QuantityMajor pieces of research and evaluation completed-3

Price$6.1 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS-100 per cent

Quality-customer rights and obligationsPercentage of reviews and appeals where the original decision is changed

Table 39: Reviews and appeals-Output Group 2.2, 2003-04

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Payment typeReviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Low-Income Health Care Card 9 56 0 0 1 0

Commonwealth Seniors Health Care Card 20 25 3 67 1 0

Disaster Relief Payment 0 0 0 0 0 0

Carer Allowance (Child) Health Care Card only 42 10 11 27 0 0

Health Care Card for Foster Children 7 29 0 0 0 0

Remote Area Allowance 4 50 0 0 0 0

Telephone Allowance 7 42 0 0 0 0

Price$17.3 million — Centrelink

$0.001 million-other

Outcome 3 I Individuals reach their potentialServices and assistance that: facilitate people to participate actively in economic and community life, work to their capacity, access a responsive and sustainable safety net and fully develop their capabilities.

DescriptionThis outcome reflects the Government’s commitment to encouraging self-reliance and community contribution through participation in the labour force and community life.

To maximise the engagement of all Australians in society, FaCS will:

encourage economic and social participation by individuals and families by enabling access and promoting opportunities

foster a culture of self-reliance in the community, and provide an effective safety net

develop partnerships with key stakeholders (other departments, business and community organisations and service providers) to improve the efficiency and effectiveness of services, to identify emerging problems and to develop appropriate policy responses.

Figure 12 Outputs contributing to Outcome 3

Financial and staffing resources summaryTable 40: Outcome 3—Individuals reach their potential

Outcome 3: Individuals reach their potential

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Administered Expenses (including third party outputs)

3.1 Labour Market Assistance12 690182 12 678 437 -11 745 13 166 054

3.2 Support for People with Disabilities 9 024 900 9 014 885 -10 015 9534429

3.3 Support for Carers1 851947 1 886 438 34 491 1 774 910

3.4 Support for the Aged19 262 333 19 773 771 511 438 20 343 665

Items Applicable Across Outcome 3

National Secretariats (part component see also Outcomes 1 and 2) 694 1 083 389 699

Ex gratia payments to ACT Bush Fire Victims 202 16 -186 253

Outcome 3: Individuals reach their potential

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Ex gratia— King Island and Furneaux Group of Islands 1 656 811 -845 0

Payments to universities and other organisations for special studies and research (part component see also Outcome 1) 82 81 -1 84

Total Administered Expenses 42 831 996 43 355 522 523 526 44 820 094Price of Departmental Outputs

Output Group 3.1 Labour Market Assistance 733 557 746 593 13 036 753 804

Output Group 3.2 Support for People with Disabilities 284452 295 986 11 534 316 287

Output Group 3.3 Support for Carers 19 676 30 422 10 746 29 369

Output Group 3.4 Support for the Aged 235 321 246 776 11 455 255436

Appropriations Applicable Across Outcome 3

Centrelink42 614 42 732 118 37 097

Revenue from Government (Appropriation) for Departmental Output Groups 1 315 620 1 362 508 46 888 1 391 993

Revenue from other Sources30 517 1 696 -28 821 1 099

Total Price of Output Groups (Departmental) 1 346137 1 364 204 18 067 1 393 092FaCS Component

107 708 107 721 13 140 008

Centrelink Component1 207 912 1 254 787 46 875 1 251 985

Non-appropriated expensesc

1 315 620 1 362 508 46 888 1 391 993TOTAL FOR OUTCOME 3 (Total Price of Outputs and Administered Expenses) 44 178 133 44 719 726 541 593 46 213 186Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 843 759

a Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b Budget prior to additional estimates.

c Non-appropriated expenses are expenses from sources other than the annual or special appropriation (non-appropriated revenue). For example, monies paid into the Child Support Trust Fund by non-custodial parents are non-appropriated revenue, while disbursements of those monies to custodial parents and allowances for bad debts are a non-appropriated expense.

Key strategiesThe key strategies and activities for assisting individuals to reach their potential are:

continuing to implement and monitor measures under the Australians Working Together (AWT) package to integrate income support with services tailored to individual needs, including:

– providing incentives and assistance for customers to seek and take up available work, including through the Employment Entry Payment and the introduction of Working Credit, which allows working-age customers to keep more of their income support payment when they first start work

– encouraging and promoting participation among income support customers, including through the Personal Support Programme; Personal Advisers; specialist disability employment services; rehabilitation services; the Jobs, Education and Training (JET) program; and the provision of participation supplements

improving targeting of Disability Support Pension consistent with the goals of increased participation and self-reliance

promoting and delivering continuous improvement to disability employment services through reforms to these services, including the introduction of case-based funding from 1 July 2004 and quality standards from 1 January 2005

promoting participation, independence and self-reliance among older Australians through policy development, education and advisory services

undertaking research and analysis to help FaCS understand its customers, their circumstances, needs and aspirations.

FaCS implements these strategies through relationships with other levels of government; business and community-based and private organisations; service providers; and formal purchaser-provider relationships with Australian Government agencies such as Centrelink.

Operating environment statementThroughout 2003-04 a reasonably robust Australian economy contributed to improvements in the labour market, including increased employment, a decrease in unemployment and decreased reliance on income support. Highlights include:

in the year to June 2004, the number of people employed in Australia grew by 2.2 per cent, a slightly higher rate of growth compared with the 2 per cent achieved the previous year

unemployment decreased over the year from 6.1 per cent of the labour force in June 2003 to 5.6 per cent in June 2004. Over the same period the number of unemployed people in receipt of Newstart Allowance decreased by 5.7 per cent (29 200) to 483 100. The decrease in unemployment was not consistent across regions: two in three Australian Bureau of Statistics (ABS) statistical regions experienced decreases in unemployment rates in the year to June 2004.

the number of working-age people1 on social security income support payments—representing almost 20 per cent of the Australian working-age population—also decreased slightly over the year, down from 2.53 million to 2.50 million people.

While there have been falls over time in the rate of joblessness in both couple and lone-parent families with dependent children, the increasing proportion of families headed by a lone parent (who account for 23 per cent of all families and over 70 per cent of jobless families) has meant there has been little change in aggregate rates of family joblessness. In June 2004 there were an estimated 471 100 children under 15 living in 267 800 jobless lone-parent families (52 per cent of all lone-parent families) and an estimated 219 300 children in 108 500 jobless couple families (6.3 per cent of couple families with dependent children under 15). The number of dependent children under the age of 25 in jobless families was 823 700.

During 2003 about 17 per cent of people of working age disclosed that they have a disability. People with disabilities are not a homogenous group. There is considerable variation in the onset, extent and significance of the disability and the impact on the person’s ability to work. ABS statistics indicate that, over the period 1998 to 2003, the workforce participation rates for people with disabilities have remained steady at 53 per cent. During the same period, the unemployment rate for people with disabilities has decreased from 11.5 per cent to 8.6 per cent. The prevalence of disability increases in older age groups: around 9 per cent of those aged 15-24 have a disability, rising to 39 per cent of those aged 60-64. This trend is consistently reflected in the high take-up of Disability Support Pension by older people, with one-third of Disability Support Pension grants made to applicants over 55 years of age. Approximately one in 19 people of working age are now receiving Disability Support Pension. The three main conditions prevalent in the Disability Support Pension population are musculo-skeletal conditions (34 per cent), psychiatric conditions (25 per cent) and intellectual disabilities (11 per cent).

Australia’s population is expected to age markedly over coming decades. The proportion of the population aged 65 and over is forecast to increase from its current 13 per cent to 19 per cent in 2021. The ageing of the population sees a growing demand for carers but also an increase in the number of older carers, with around 72 000 carers aged 65 years or over receiving Carer Payment and/or Carer Allowance at June 2004. Over 56 per cent of primary carers are women of working age. However, young carers are a group particularly at risk of isolation from the community and disconnection from education and employment opportunities. Around 8000 carers aged 25 years and under were receiving Carer Payment and/or Carer Allowance at June 2004.

Recent trends indicate that people currently reaching Age Pension age have higher levels of income and assets than was previously the case. At June 2004, among Age Pensioners who have been in receipt of Age Pension for less than one year, 50.5 per cent received a full-rate pension while 49.5 per cent received a part-rate pension due to the level of their income or assets. This compares with 63.9 per cent of the general Age Pension population who received a full-rate pension at June 2004.

However, the capacity to save for retirement is limited by the relatively low rates of labour force participation among people of mature age and those approaching Age Pension age:

fifty per cent of people who started receiving Age Pension between December 2002 and December 2003 were previously receiving another income support payment

labour force participation rates for people aged 65 and over were 9.7 per cent for men and 2.8 per cent for women at August 2003. Participation rates have been relatively stable for some years. Of those over Age Pension age in June 2004 who are working, 33 per cent are receiving a part pension and 17 per cent are on the Pension Bonus Scheme.

In February 2004, the Government announced a number of measures that will improve the accessibility and flexibility of the retirement income system. The range of income streams that qualify for taxation and social security concessions will be broadened. This will give people greater choice in how they fund their retirement and maximise their retirement income. It will encourage people to use their superannuation for support through their retirement.

1. 16-64 for males and 16-61 for females in June 2003, and 16-64 for males and 16-62 for females in June 2004.

Social justice and equity impactThe range of outputs and payments under Outcome 3 are designed to encourage self-reliance and economic and social participation and to maintain an effective, sustainable safety net. A central focus is to improve the work prospects of people of working age in order to reduce the number of jobless families. Support for those who cannot work because of caring responsibilities is an important part of this strategy, as is assisting those with older children into work.

Performance highlights and policy outlook

Key achievements included: continued progress on implementing a range of Australians Working Together measures

designed to support increased participation of groups facing barriers:

– Working Credit was introduced on 20 September 2003 and is available to over 2 million income support customers. Since its introduction, nearly 540 000 individuals have used their working credits. Customers receiving Newstart Allowance, Parenting Payment (Single), Youth Allowance (other), and Disability Support Pension appear to be the biggest users of Working Credit.

– Mature Age Allowance and Partner Allowance were closed off to new claimants from 20 September 2003, and more flexible participation arrangements were introduced for older workers and Parenting Payment recipients with older children.

– In 2003-04, the Personal Support Programme assisted around 40 185 individuals, up from approximately 26 000 in 2002-03 and 5000 above the 2003-04 Portfolio Budget Statement target of 35 000.

– During 2003-04, 41 354 people have undertaken vocational rehabilitation programs with CRS Australia and over 8000 have achieved an employment outcome.

– Personal Advisers interviewed more than 250 000 Centrelink customers, prepared participation plans with 98 per cent of these customers and referred over 130 000 customers to Australian Government-funded programs.

– During 2003-04, 5881 new jobseekers with disabilities received assistance from disability employment services with Australians Working Together funding to help address unmet need in high-demand areas.

Agreement was reached with all states and territories on the third Commonwealth State Territory Disability Agreement, which emphasises improved accountability and transparency for use of funding by all jurisdictions, better long-term demand management and better cross-government linkages for services.

Service update reviews for people receiving Disability Support Pension were introduced that provide opportunity for holistic assessments of customers’ circumstances and offers of assistance to maximise participation.

The first national study of supply and demand for Auslan interpreting services across Australia was completed.

Significant progress was made on implementing reforms to the Disability Employment Assistance Program, including quality standards and implementation of a range of resources to help disability employment services prepare for the transition to case-based funding.

FaCS contributed to the statement a more flexible and adaptable retirement income system, released by the Australian Government in February 2004, which announced a number of policy measures to improve the retirement income system. Measures included improvements to incentives for the take- up of non-commutable income streams and increased flexibility for people making the transition to retirement. This statement also set out the responsibilities of

the individual and government in financing retirement incomes, and highlighted the importance of financial planning and preparation for retirement.

FaCS also influenced and contributed to the ongoing policy debate on population ageing through conference papers and input to the Australian Government discussion paper Australia’s Demographic Challenges.

Work is required to: make the social support system less complex and more responsive to the individual needs of

customers, including:

– improving referrals to appropriate programs to help people’s economic or social participation, in collaboration with Centrelink, the Department of Employment and Workplace Relations and key stakeholders

– developing a ‘whole-of-system’ approach to encouraging and supporting participation

– identifying gaps in services to help those with barriers to participation

explore the outcomes from the Better Assessment and Early Intervention measure of Australians Working Together to develop options to help people with disabilities maximise their participation

establish the new national Auslan interpreter booking service and work with state and territory governments to increase the supply of accredited Auslan interpreters

implement the package of the 2004-05 Budget measures to assist carers

continue implementing the reforms to the Disability Employment Assistance Program, including:

– assisting employees with disabilities as well as business services through the implementation of the ‘Security, Quality Services and Choice for People with Disabilities’ package

– implementing case-based funding progressively from 1 July 2004

finalise implementation of income streams changes announced in a more flexible and adaptable retirement income system of February 2004.

Policy outlookThe policy outlook for the coming year and beyond will see a major focus on the implications of demographic change and recent social and economic trends including: an ageing population and slowing workforce growth; delayed child-bearing; and balancing work and family life. These all present ongoing challenges to ensuring that income support arrangements are flexible in responding to individual and family circumstances, and service and support networks remain highly relevant.

As a result of demographic changes, it is projected that economic growth in Australia will slow over the next four decades if current policies and workforce participation rates remain the same. A key policy focus is on increasing labour force participation as one of the most important means to achieve higher economic growth and increase the resilience and self-reliance of Australian families, communities and individuals. Policy considerations will include the impact of a slowing workforce growth, the support and service needs of people with disabilities, the situation of ageing carers, and ways to encourage workforce participation of mature-age people.

Monitoring the performance of the Australians Working Together measures will provide a better understanding of the appropriate mix of mainstream and specialist services (such as the Personal Support Programme) needed to support a population with increasingly complex circumstances. It will also provide further information to assess whether the income support system as a whole has the right balance of incentives, obligations and assistance to increase economic participation among the diverse groups of the working-age population. More work also needs to be done to

understand the particular issues facing long-term unemployed people, including geographic and personal issues (such as mental health) that need to be addressed to help them find and keep work. In addition, more research is required on the needs of Indigenous jobseekers and those with locational disadvantage.

The number of jobless families in Australia continues to be a concern. This underlines the importance of policies and program strategies to increase employment rates among Parenting Payment recipients and sole parents in particular.

Budget measuresThis section reports on the achievements and challenges in implementing Budget measures for which expenses began accruing in 2003-04 and as tabled in the relevant Portfolio Budget Statement or Portfolio Additional Estimates Statement. They are listed by published title and in alphabetical order except where interlinked measures are grouped for ease of reading.

Increasing individual self-reliance and directing payments to the right people and those most in need are critical to maintaining the integrity, strength and sustainability of Australia’s income support safety net. A number of Budget measures aim to ensure that income support payments and services are provided to those most in need.

Assurance of Support Scheme-improved operationThe transfer of administration of the Assurance of Support Scheme from the Department of Immigration and Multicultural and Indigenous Affairs to Centrelink from 1 July 2004 will simplify arrangements for people who provide an assurance of support. Performance will be measured through the achievement of a lower rate of assurance of support debts waived.

Australians Working Together measures—changed arrangementsThe Australians Working Together measures relating to changed administrative arrangements for activity-tested customers have all been successfully implemented. Together, these measures provide additional capacity for a more flexible and individualised approach in the development of appropriate activity or participation agreements. They also allow certain customers who have had a breach penalty imposed to either reduce or eliminate the penalty by complying with their requirements.

Bushfires—ex gratia assistance to income support recipientsFunding of $0.5 million over two years was provided for ex gratia payments to assist recipients of income support whose homes were destroyed in the 2002-03 summer bushfires.

Carer Allowance (Child)-enhanced qualification for automatic accessWith effect from 1 July 2003, a number of additional disabilities or medical conditions automatically qualify carers of children for Carer Allowance without the need for further medical assessment until the child’s sixteenth birthday.

Respite Support for Carers of Young People-continuation of fundingSubstantial support ($22 million over four years) is also being provided each year to continue assistance to over 7200 carers of young people with severe or profound disabilities who are not able to access existing state and territory respite care or other assistance provided by the Australian Government.

Carers—payment of one-off Carer BonusThe measure providing for payment of a one-off Carer Bonus resulted in payments totalling $273.9 million in 2003-04 being made to Carer Payment and Carer Allowance recipients. These payments

were made in recognition of the contribution of people who provide substantial care for a person with disabilities or a frail aged person.

Centrelink—assessment of income and assets held in trusts and private companiesFunding of $7.8 million in 2003-04 was provided to Centrelink to undertake the timely assessment of income and assets held by social welfare recipients with trusts or private companies. The additional funding allowed Centrelink to manage a higher than anticipated number of people in these circumstances.

Centrelink Call Centre supplementationFrom 1 July 2003, $15.5 million has been invested to improve the level of service to Centrelink customers who make inquiries to Centrelink call centres, by increasing the number of Centrelink call centre staff and expanding the capacity of Centrelink’s call centre network by 1.22 million additional answered calls.

Centrelink Rural Call Centres—continuation of fundingFunding of $31.8 million over four years was provided to continue the operation of two rural call centres, in Port Augusta in South Australia and Maryborough in Queensland. These rural-specific call centres provide information and advice on Centrelink services to many rural and regional customers.

Centrelink service delivery—enhanced information technology capabilityFunding of $312 million is being provided to Centrelink over five years to enhance the capabilities of its information technology systems and ensure continuing reliability. The funding will allow Centrelink to expand online services to customers (self-service) and enter working partnerships with community organisations. The funding will also allow Centrelink to increase payment accuracy through automated data matching and information exchange with businesses, government departments, banks and others.

By July 2007 Centrelink will have delivered a range of online services and will be undertaking real-time validation of customer circumstances with external parties. FaCS has a role in providing advice on the application of policy within the technology.

Clarke review—various Veterans’ Affairs measures affecting FaCSIn the 2004-05 Budget, the Government announced a range of initiatives in response to the Clarke review. An initiative that impacts on the FaCS portfolio is the Defence Force Income Support Allowance, which will create greater parity between Department of Veterans’ Affairs (DVA) disability pensioners who receive service pensions and those who receive social security payments.

Combating trafficking in persons—whole-of-government strategyIn October 2003 the Australian Government introduced a range of initiatives across several portfolios, led and coordinated by the Attorney-General’s Department, to significantly enhance the detection, investigation and prosecution of traffickers and help prevent the trafficking of persons. As part of a comprehensive set of victim support measures FaCS pays, through Centrelink, Special Benefit and Rent Assistance, where appropriate, to support victims of trafficking who are assisting law enforcement authorities. At 30 June 2004, four people were being paid Special Benefit and Rent Assistance under this arrangement.

Compliance reviews—expand data matching and asset reviews to identify incorrect paymentsCompliance reviews—extend 2002-03 data-matching pilotDisability Support Pensions—enhanced reviewsIdentity fraud—improving and increasing the number of investigationsParenting Payment—enhanced profiling to ensure correct paymentA range of measures were implemented that aim to minimise incorrect payments to customers, including: increased numbers of investigations into identity fraud; application of data matching to all payment types, and expansion of data sources used; and increased reviews each year (125 000 data- matching reviews; 20 000 Age Pension asset valuation reviews; and 43 000 compliance reviews).

Enhanced review and profiling measures and increased numbers of reviews for Parenting Payment and Disability Support Pension customers (27 000 additional Parenting Payment reviews and 61 000 Disability Support Pension targeted reviews each year) are also being implemented to ensure that Disability Support Pension and Parenting Payment customers receive their correct entitlement.

The measures generated savings of $111.94 million in 2003-04.

Disability Employment Assistance-improved viability of business servicesAn initiative of the 2003-04 Budget was a commitment of $25.4 million in tailored assistance to improve the viability of business services in the lead-up to quality assurance certification by December 2004. The assistance offered includes a business review by independent consultants and tailored assistance flowing from the review. Two hundred and twenty-seven business service organisations accepted the offer of assistance; at the end of June 2004, most business reviews are complete. To address the review recommendations, $12 million has been approved in tailored assistance funding, with more to be approved in the 2004-05 financial year.

Disability Employment Assistance-introduction of a case-based funding modelAn additional $135.3 million is being provided over four years to implement case-based funding for all disability employment services (to be implemented progressively from 1 July 2004 to 30 June 2006). Case-based funding replaces current block funding arrangements in a way that is fair and equitable. It is a fee-for-service arrangement where fees are paid to disability employment services to assist jobseekers and workers to find and retain employment. Fees are linked to the jobseeker or worker’s support and are paid as employment milestones are reached. It is expected to improve employment outcomes for many people with disabilities and includes incentives for delivery in rural and remote areas, new apprenticeships and work-based personal assistance.

Holocaust payments-extension of means test exemptionsFrom 13 May 2003, the exemption from social security income testing for restitution payments made to Holocaust victims in relation to Nazi persecution was extended to all such restitution payments regardless of their country of origin. Previously only payments for restitution made by the German and Austrian governments were income-test exempt.

Household, Income and Labour Dynamics in Australia (HILDA) survey-extended fundingPolicy development is also being informed by continued research using the HILDA survey. The continued work on the survey will provide the data needed to assess the effects of policy and other changes on families and household formation, labour market and education participation, and

retirement and retirement preparation. Performance will be measured by an increase in the production of relevant research papers for policy development using the longitudinal data (38 papers produced in 2003 using the first wave of data); the production of relevant, reliable, comprehensive and accessible longitudinal data; and positive feedback from government agencies and academic institutions on the value of the HILDA survey to social and economic research and policy development.

King Island and the Furneaux Group of Islands—ex gratia payments in lieu of Remote Area AllowanceA total of 377 ex gratia payments were paid in lieu of Remote Area Allowance to eligible current and former income support recipients who resided on King Island and the Furneaux Group of Islands between July 1990 and June 2001. A determination by the Tax Office, relating to the rezoning of the islands in 2001 as a Special Tax Zone B, allowed relevant remote area tax benefits to be back-paid until July 1990, and the ex gratia payments ensured that income support recipients received similar treatment.

New military rehabilitation and compensation schemeUnder the new scheme, Australian military personnel who suffer an injury or contract a disease as a result of their service after 1 July 2004 will have improved rehabilitation and compensation payment options. The new benefits provide a more generous, equitable and flexible choice between pensions and lump sums in the event of severe injury, as well as an increase in the payments made to the spouses of any service personnel who die while on war-like service.

Notification arrangements for people departing Australia and consistent treatment of foreign debt recoveryThe 2003-04 Budget strengthened the notification obligations for income support recipients travelling overseas. The Budget also promised that the full amount of a debt incurred as a result of receiving a foreign pension lump-sum payment would be recovered from both single and partnered customers, addressing an existing anomaly where foreign pension lump-sum payments are apportioned to each partner and only half the debt is recoverable.

Necessary administrative action was completed, and revised practices and procedures were introduced, to give full effect to these changes from 1 July 2004.

Our Universities—income support treatment of Commonwealth Learning ScholarshipsOur Universities—income support treatment of fee-exempt scholarships Our Universities—exempt fee-waiver and fee-pay scholarships from social security income testsMeasures have also been introduced from 1 January 2004 to facilitate increased higher education participation of students. The value of full fee-exempt scholarships provided by higher education institutions and Commonwealth Learning Scholarships are excluded from the assessable income of students who receive income support payments.

Measures have also been introduced from Budget night, 11 May 2004, to facilitate increased higher education participation of students by excluding the value of fee-waiver and fee-pay scholarships from the assessable income of students who receive income support payments. This includes scholarships offered in respect of the secondary, vocational education and training, and higher education sectors.

Pensioner Education Supplement—matching payments to study periodsThe implementation of changes to the Pensioner Education Supplement (PES) — matching payments to study period’s measure meant that PES was not going to be paid over the summer vacation period for continuing students unless they were actually undertaking formal study during that time. The Government withdrew this Budget measure before implementation.

Recognising and improving the work capacity of people with disabilities—delayed implementationThe 2002-03 Budget included a measure to tighten Disability Support Pension eligibility provisions in the Social Security Act 1991. The new provisions would have increased support and employment opportunities for people with disabilities who have the capacity to work. The provisions would only have affected people applying for Disability Support Pension from 1 July 2003. Legislation to give effect to the changes has not yet been passed.

Research into emerging areas of risks to the social security systemPolicy development is being informed by new research ($2.6 million in 2003-04) on emerging areas of risk to the social security system. The range of research projects undertaken under this funding is reported in Volume two, Part two, ‘Right payments to the right people’.

Social Security Act 1991—further legislative simplificationThe Social Security Act 1991 is being further simplified (from 1 July 2004) to consolidate the Rent Assistance calculation process, clarify the payments recoverable when customers receive economic loss compensation payments, and clarify the definition of independence for Disability Support Pension youth customers to be consistent with that applied to Youth Allowance customers.

Social Security Agreement with ChileSocial Security Agreement with Malta—revised agreementA revised international social security agreement with Malta was concluded and signed on 15 June 2004. The revised agreement is in line with the majority of Australia’s other agreements and limits coverage of Disability Support Pension to people who are severely disabled. The agreement is expected to be implemented from 1 July 2005. Performance will be measured by monitoring the variation in the number and value of new payments.

A new international social security agreement was implemented with Slovenia on 1 January 2004 and final legislative and treaty processes were completed for new agreements with Chile and Croatia (for implementation on 1 July 2004). These agreements will improve access to income support for people whose adult lives are spent both in Australia and in the agreement countries. The agreements cover Australian Age Pension and Disability Support Pension for people who are severely disabled. Performance will be measured through an increased number and value of foreign pensions paid into Australia and Australian pensions paid here and overseas.

Student Financial Supplement Scheme repealThe Student Financial Supplement Scheme was repealed from 1 January 2004 in response to increasing levels of bad and doubtful debt and reduced take-up of loans under the scheme. This has followed the introduction of Youth Allowance and increased access to alternative commercial loan products and opportunities for students to supplement their income.

Sugar Industry Reform Program (SIRP) 2004— intergenerational transferFaCS is administering the intergenerational transfer element of the SIRP through the Commonwealth Financial Counselling Program (CFCP) and Family Relationships Services Program (FRSP). FaCS has provided funding to some of its existing service providers (such as

Anglicare WA, Interrelate, Lifeline, Relationships Australia and Centacare) for the 2003-04 financial year. FaCS, in conjunction with service providers, is developing appropriate strategies and a funding model for funding in later years. FaCS is also administering the means test concessions for eligible farmers who pass on their farm to the next generation.

Temporary overseas absence provisions—reduction to 13 weeksTo encourage people who are of working age and on income support payments to remain in Australia and be available to contribute through employment or social participation, the 2003-04 Budget reduced the allowable period of temporary overseas absence for most pensions and allowances to 13 weeks from 1 July 2004. Age pensioners and people eligible for an Australian pension by virtue of an international social security agreement while they reside in the agreement country were not affected by this change.

Changes to Australia’s portability rules were agreed, required legislative amendments to the Social Security Act 1991 were introduced, and the new 13-week temporary overseas absence provisions came into effect on 1 July 2004. The changes were widely publicised through Centrelink and migrant media channels in Australia and overseas.

Output Group 3.1 I Labour market assistanceContribution to Outcome 3Labour market assistance contributes to Outcome 3 by providing income support and related programs for people of workforce age who, generally because of unemployment or parenting responsibilities, are in need of financial support. These programs:

provide an effective safety net

foster a culture of self-reliance in the community

encourage and facilitate participation in paid work or activities designed to improve employment prospects

maximise economic and social participation, while recognising that, for some people, caring responsibilities, disabilities, time out of the workforce or other barriers mean that levels and types of participation need to be flexible

support parents who have primary caring responsibilities for children under 16.

Strategies target income support payments to people most in need, including through income and assets

tests and waiting-period provisions

provide incentives and assistance, such as Employment Entry Payment and Working Credit, for customers to seek and take up available work

encourage and promote participation among income support customers, including through the Personal Support Programme; Personal Advisers; specialist disability employment services; rehabilitation services; the Jobs, Education and Training Program; and the provision of participation supplements

develop policies aimed at supporting parents and mature-aged customers who wish to participate in the labour market

undertake research and analysis to help understand customers, their circumstances, needs and aspirations.

Outputs under Output Group 3.1

Labour market assistance-assistance for people of workforce ageBereavement Allowance (BA)Bereavement Allowance is paid for up to 14 weeks to a recently widowed person without dependent children following the death of their partner. It is subject to an income and assets test. It is also paid under international social security agreements.

Mature Age Allowance (MAA)Mature Age Allowance provides income support to jobless people aged 60 years to Age Pension age who have been receiving other income support and face obstacles to employment because of a lack of recent workforce experience. This payment closed to new claimants 20 September 2003. People who would previously have been eligible for MAA can now access Newstart Allowance.

Newstart Allowance (NSA)Newstart Allowance provides income support for people between 21 years and Age Pension age who are unemployed. Recipients must satisfy the activity test by seeking work or undertaking an activity designed to improve their employment prospects. They must accept offers of suitable employment.

Parenting Payment (Partnered and Single)Parenting Payment provides income support to low-income people with primary care of at least one dependent child under 16 years of age. Parenting Payment (Single) (PPS) is payable to sole parents. Parenting Payment (Partnered) (PPP) is payable to low-income partnered parents. PPS is also paid under international social security agreements.

Partner Allowance (PA)Partner Allowance provides income support to mature-age people who are partners of income support recipients and face obstacles to employment due to a lack of recent workforce experience. This payment closed to new claimants on 20 September 2003. People who would previously have been eligible for PA can now access Newstart Allowance.

Pensioner Education Supplement (PES)The Pensioner Education Supplement is a fortnightly payment to certain income support recipients, mainly Parenting Payment (Single) and Disability Support Pension recipients, undertaking approved full-time or part-time study.

Special Benefit (SpB)Special Benefit provides assistance to people in severe financial need and for whom no other pension, allowance or other support is available.

Widow Allowance (WA)Widow Allowance provides income support for older working-age women who no longer have a partner and who have no recent workforce experience.

Supplementary labour market assistance payments Education Entry PaymentEducation Entry Payment is a lump sum, available annually, to assist with the cost of beginning approved study. It is available to customers who qualify for the Pensioner Education Supplement. Allowees who have received income support for at least 12 months may also be eligible.

Employment Entry PaymentEmployment Entry Payment is a lump sum, available annually, to assist with the cost of beginning employment. It is available to certain working-age customers who have received income support for at least 12 months and meet other criteria. Parenting Payment (Single) customers are not subject to the 12-month waiting period.

Language, Literacy and Numeracy SupplementThe supplement is intended to assist people on eligible income support payments with the additional costs associated with participation in the Language, Literacy and Numeracy program.

Work for the Dole SupplementThe Work for the Dole Supplement is a fortnightly supplement payment to assist with the cost of participating in the Work for the Dole program.

Community Development Employment Project Participant SupplementThis supplement is a fortnightly supplement payment to assist with the cost of participating in a Community Development Employment Project.

Jobs, Education and TrainingJobs, Education and Training Advisers provide help to eligible customers to improve their financial circumstances. They support parents, carers and some others to develop participation plans with a focus on an eventual employment outcome.

Payment to voluntary work agencies (Voluntary Work Initiative including AWT Participation through Volunteering)The payment enables agencies to help unemployed people find voluntary work. Volunteering Australia administers a national volunteer referral placement and training service for working-age income support customers.

Personal Support Programme (PSP)PSP provides assistance to people with multiple non-vocational barriers to employment. It serves as a bridge between short-term crisis assistance and employment-related assistance.

Welfare Reform Consultative ForumThe Welfare Reform Consultative Forum provides advice to the Australian Government on the operation of Australia’s welfare system and the development of the medium- to longer-term agenda for welfare reform, including approaches to reduce reliance on government benefits, promote participation activities and increase financial incentives to engage in paid employment.

Performance summary

Key achievements included: successful implementation and performance of a range of Australians Working Together

measures, including:

– implementation of Working Credit on 20 September 2003, including implementation of electronic employer reporting of earnings of workers in business services. Working Credit is available to over 2 million income support customers. Since its introduction, nearly 540 000 individuals have used their working credits.

– closure of Mature Age Allowance and Partner Allowance to new claimants from 20 September 2003, and introduction of more flexible participation arrangements for older Newstart Allowees

– introduction of participation requirements for Parenting Payment recipients with older children

– delivering the second year of assistance through the Personal Support Programme, enabling support of approximately 40 185 individuals in 2003-04 through 148 service providers and exceeding target participant numbers by over 5000 for the year

– introduction of Personal Advisers. In the first 18 months (September 2002 to April 2004), Personal Advisers interviewed more than 250 000 Centrelink customers, prepared participation plans with 98 per cent of these customers and referred over 130 000 customers to Australian Government-funded programs, education and training

vocational rehabilitation programs with Commonwealth Rehabilitation Service Australia undertaken by 41 354 people in 2003-04, with over 8000 achieving an employment outcome

implementation of a Budget measure on enhanced profiling of Parenting Payment customers

development of a support package for victims of trafficking of persons

implementation of the Parenting Payment pilot in combination with Centrelink and the Department of Employment and Workplace Relations. The pilot aims to improve referral of parents to Job Network and other appropriate support services to help parents overcome barriers to joining the labour market.

development of the data set and fieldwork for the Parents on Low Income Study (POLIS) project under an Australian Research Council agreement with the Australian Institute of Family Studies and the Australian National University. POLIS will provide valuable data for research on the dynamics of low income, welfare reliance and changes in family structure.

contribution to policy development from the Parenting Payment new claims survey. The survey is designed to increase understanding of the characteristics, circumstances and needs of new parenting customers, to assist with the implementation of the Helping Parents Return to Work initiative, and to provide baseline data for the evaluation of the initiative. Altogether 2005 Parenting Payment customers were interviewed. A longitudinal data set of customers first interviewed in 2002 was developed.

a series of seminars on wealth and debt issues facing income support recipients, to inform policy development on increasing self-reliance

implementing the recommendations of the Australian National Audit Office (ANAO) audit of Parenting Payment (Single)

support for the Breaching Review Taskforce in November 2003 to review breach data and procedures and to assess the fairness of the breach penalty system. The taskforce is due to report to the Minister in December 2004.

completion of a solution-focused research project—‘Mental Health Barriers to Social and Economic Participation’—which explored common mental health disorders as they apply to the income support population.

Results stimulated the commencement of a suite of interconnected trials, which focus on both the impact of mental health awareness training and the delivery of short-term intensive mental health interventions.

Work is required to: implement the Business Alliance Agreement to strengthen FaCS’ strategic alliance with

Centrelink

continue to refine quality controls and quality assurance processes for our payments and programs

commence a procurement process to secure Personal Support Programme contracts that are due to end in June 2005

assess the applicability of outcomes from a number of mental health trials to broader participation policy. The trials aim to evaluate early intervention strategies for income support customers with mental health issues.

respond to and implement any recommendations from the Breaching Review Taskforce report.

Financial and staffing resources summaryTable 41: Output Group 3.1—Labour market assistance

Group 3.1: Labour market assistance

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Administered Expenses (including third party outputs)

Payment to voluntary work agencies 3 260 3 260 0 3 756

Personal Support Program39 308 36 693 -2 615 53 468

Special Appropriations

Bereavement Allowance (Social Security (Administration) Act 1999) 1 095 1 075 -20 1 115

Mature Age Allowance (Social Security (Administration) Act 1999) 374 681 372523 -2 158 283 383

Newstart Allowance (Social Security (Administration) Act 1999) 4 745 310 4754733 9 423 5 261 366

Parenting Payment (Partnered and Single) (Social Security (Administration) Act 1999) 6 017 303 5995135 -22168 6 233 679

Partner Allowance (Benefit) (Social Security (Administration) Act 1999) 308 963 313 661 4 698 159 013

Partner Allowance (Pension) (Social Security (Administration) Act 1999) 546 793 546 801 8 456 110

Pensioner Education Supplement (Social Security (Administration) Act 1999) 67 433 72 139 4 706 73 784

Special Benefit (Social Security (Administration) Act 1999) 115 904 113 141 -2 763 132 140

Widow Allowance (Social Security (Administration) Act 1999) 470 132 469 276 -856 508240

Total Administered Expenses 12 690 182 12 678 437 -11 745 13 166 054Price of Departmental Outputs

Policy Advice19 667 19 671 4 23 918

Group 3.1: Labour market assistance

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Purchasing, Funding & Relationship Management 12 045 12 047 2 14 648

Research and Evaluation15 551 15 554 3 18 914

Service Delivery (Centrelink)682 042 695 072 13 030 692 031

Service Delivery (other)4 252 4 249 -3 4 293

Revenue from Government (Appropriation) for Departmental Output Groups 733 557 746 593 13 036 753 804FaCS Componentc

51 515 51 521 6 61 773

Centrelink Component682 042 695 072 13 030 692 031

TOTAL FOR GROUP 3.1 13 423 739 13 425 030 1 291 13 919 858

Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 310 280

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b. Budget prior to additional estimates.

c. FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Labour market assistance-assistance for people of workforce ageNotesThe performance information regarding labour market assistance payments (NSA, MAA, PA and WA) in this output group excludes information relating to participants in Community Development Employment Project (CDEP). These CDEP participants receive a CDEP scheme payment and may be eligible for the CDEP Participant Supplement and certain social security ‘add-ons’, such as Rent Assistance and Pharmaceutical Allowance. However, the basic rate of these labour market payments is not payable to CDEP scheme participants, hence their exclusion from the performance information provided below.

The majority of performance information is calculated using data for June 2004. This information is at a point in time rather than a yearly average.

Effectiveness-adequacyPer cent of maximum adult rates of income support to minimum wage

Table 42: Per cent of adult rates of income support as a percentage of minimum wage, June 2003 and June 2004

Year

Newstart Allowance

Mature Age Allowance

Partner Allowancea

Widow Allowance

Special Benefit

Parenting Payment (Single)

Parenting Payment (Partnered)a

2003-04 0.42 0.46 0.38 0.42 0.42 0.50 0.38

2002-03 0.42 0.46 0.38 0.42 0.42 0.49 0.38

a.These are partnered rates of payment.

Effectiveness-independenceAverage duration of Newstart Allowance/Youth Allowance (other) incapacity exemption

Newstart Allowance: 100 days; Youth Allowance: 64 days

Average duration on income support in weeks

Table 43: Average duration on income support in weeks, June 2003 and June 2004

Year

Newstart Allowance

Mature Age Allowance

Partner Allowance

Widow Allowance

Special Benefit

Parenting Payment (Single)

Parenting Payment (Partnered) Total

2003-04 166 261 244 302 140 250 251 219

2002-03 156 232 198 263 119 243 221 202

Percentage of Newstart allowees who leave payment within the first three months— 34 per cent

Percentage of Newstart allowees receiving payments for 12 months or more—60.9 per cent, up from 60.3 per cent in June 2003

Percentage of Parenting Payment recipients with a duration of five years or more—Parenting Payment (Single): 29 per cent; Parenting Payment (Partnered): 21 per cent

Percentage of customers undertaking paid work, job search, education or training, employment assistance, Work for the Dole, Mutual Obligation initiative or voluntary work

—At June 2004, the percentage of jobseekers on Newstart Allowance and Youth Allowance (other) whose main activity was job search was 52 per cent.

The percentage of jobseekers on Newstart Allowance and Youth Allowance (other) undertaking, as an activity, part-time work (taken to satisfy the activity test), education or training, employment assistance, Work for the Dole, Mutual Obligation initiative, or voluntary work was 13.2 per cent.

Number of customers who deplete their Working Credit (i.e. number of customers who use the Working Credit financial incentive to take up paid employment)—Approximately 26 000 per fortnight

Percentage of customers with earnings

Table 44: Percentage of income support customers with earnings, June 2003 and June 2004

Year

Newstart Allowanc

e

Mature Age

AllowancePartner

Allowance

Widow Allowanc

eSpecial Benefit

Parenting Payment (Single)

Parenting Payment

(Partnered) Total2003-04 16.4 7-2 7.7 10.2 2.0 30.0 11.3 19.2

2002-03 14.8 7.0 8.0 10.1 1.7 29.2 10.4 17.9

Average amount of earnings per fortnight

Table 45: Average amount of earnings of income support customers per fortnight, 2002–03 and 2003–04

Earnings ($)

Year

Newstart Allowance

Mature Age Allowance

Partner Allowance

Widow Allowance

Special Benefit

Parenting Payment (Single)

Parenting Payment (Partnered) Total

2003-04 329 229 274 247 209 674 488 525

2002-03 290 224 264 233 206 616 407 472

Note: The percentage of Parenting Payment (Single) and Parenting Payment (Partnered) customers with earnings, and their average earnings for 2002-03, have been revised from those reported in FaCS’ 2002-03 annual report. This reflects revision of the source data by Centrelink.

Figure 13: Proportion of Newstart Allowance customers with earnings and average amount of earnings in June, 1998 to 2004

Effectiveness-take-up/coveragePercentage of population of workforce age on labour market assistance-related income support

Table 46: Percentage of population of workforce age on labour market assistance–related income support, June 2003 and June 2004

Year

Newstart Allowanc

e

Mature Age

Allowance

Partner Allowanc

e

Widow Allowanc

e

Special

Benefit

Parenting

Payment (Single)

Parenting Payment

(Partnered) Total

2003-04

3.72 0.25 0.66 .30 0.05 3.45 1.36 9.80

2002-03

4.02 0.32 0.76 .30 0.05 3.40 1.41 10.27

Effectiveness-targetingNumber and average duration of waiting periods applied to Newstart Allowance claimants in 2003-04

A total of 114 011 customers commenced an ordinary waiting period with an average duration of seven days within the year; 33 728 customers commenced an income maintenance waiting period with an average duration of 32.1 days within the year; 32 543 customers commenced a liquid assets waiting period with an average duration of 64.4 days within the year; and 18 customers commenced a newly arrived resident waiting period. The average duration for customers completing a newly arrived resident waiting period within the year was 728 days.

Number of customers leaving payment following referral to mutual obligation activity

An estimated 984 customers left payment after being breached for failing to attend a mutual obligation interview or comply with a mutual obligation agreement.

Percentage of customers on part rate due to income test

Table 47: Percentage of customers on part rate due to income test, June 2003 and June 2004

Year

Newstart Allowanc

e

Mature Age

AllowancePartner

Allowance

Widow Allowanc

eSpecial Benefit

Parenting Payment (Single)

Parenting Payment

(Partnered) Total2003-04 18.3 20.2 20.5 23.2 60.9 n/a n/a n/a

2002-03 15.9 18.3 18.9 21.1 54.3 26.5 32.9 22.5

Note: A significant number of Special Benefit customers receive a part rate of payment as a result of modest income received from sources other than earnings such as overseas part pensions. As Special Benefit has no income-free area, their benefit is reduced on a dollar-for-dollar basis.

Note: The percentage of Parenting Payment (Single) and Parenting Payment (Partnered) customers with earnings, and their average earnings for 2002-03, have been revised from those reported in FaCS’ 2002-03 annual report. This reflects revision of the source data by Centrelink.

QuantityTotal number of customers assisted

Table 48: Number of customers in receipt of assistance, June 2003 and June 2004

YearNewstart

Allowance

Mature Age

AllowancePartner

AllowanceWidow

AllowanceSpecial Benefit

Bereavement Allowance

Parenting Payment (Single)

Parenting Payment

(Partnered) Total

2003-04 483 093 32 905 90 930 45 315 11 216 66 449 312 177 157

1 289 994

2002-03 512 332 41 070 102 805 43 202 12 228 55 436 958 181 405

1 330 055

Number of customers also receiving supplementary payments

Number of customers in receipt of supplementary assistance through the following payments in 2003-04:

Education Entry Payment: 50 445

Employment Entry Payment: 85 280

Pensioner Education Supplement: 50 445

Language, Literacy and Numeracy Supplement: 18 874.

Of the 50 445 customers receiving Pensioner Education Supplement (PES), 4377 were receiving PES at the half rate. Parenting Payment (Single) customers comprise around 56 per cent of PES recipients; Disability Support Pensioners comprise 29 per cent. The remaining 15 per cent receive Carer Payment, Veterans’ Affairs pensions, Widow Allowance, Widow B Pension or Wife Pension.

Price$1.1 million — Bereavement Allowance

$372.5 million — Mature Age Allowance

$4 754.7 million — Newstart Allowance

$5995.1million — Parenting Payment (Partnered and Single)

$313.7 million — Partner Allowance (Benefit)

$546.8 million — Partner Allowance (Pension)

$72.1 million — Pensioner Education Supplement

$113.1 million—Special Benefit

$469.3 million—Widow Allowance

CommentaryOverall, a smaller proportion of working-age people received labour market assistance-related income support compared with last year. This is largely due to strong economic and labour market conditions in recent years. These conditions have been of most benefit to short-term unemployed people. Around six in 10 people receiving unemployment payments have been on income support for 12 months or more.

Against this general trend, the number of people receiving Parenting Payment (Single) rose by almost three per cent in the year to June 2004. The increase in Parenting Payment (Single) customer numbers partly reflects growth in the number of single-parent families with children aged under 16 years in the general population. In addition, the relatively generous indexation of the payment rates and income test threshold means a growing number of Parenting Payment (Single) customers with higher earnings are remaining eligible for a part rate of payment. Finally, the generosity of the pension package (rates, income test and concessions) received by Parenting Payment (Single) customers relative to Parenting Payment (Partnered) customers provides a disincentive for single parents to partner. There is anecdotal evidence that this disincentive may be affecting customer behaviour, such that in recent years fewer Parenting Payment (Single) customers are partnering, leading to higher numbers remaining on Parenting Payment (Single).

The increasing proportion of long-term Newstart Allowance customers is reflected in the increase in average duration on income support of the Newstart Allowance population in the year to June 2004. Recent measures in the Australians Working Together (AWT) package, such as the Personal Support Programme, will help long-term customers address barriers they face to entering and re-entering the labour market.

The average duration on income support has also increased for Mature Age and Partner Allowance customers compared with June 2003. This is likely to be attributable to the closure of Mature Age Allowance and Partner Allowance to new claimants from 20 September 2003. As no new customers are coming onto these payments, the average duration on income support for customers on these payments is expected to continue to increase.

The proportion of customers with earnings increased in June 2004 compared with June 2003. Average earnings per fortnight also increased over this period. The robust economic and labour market conditions are contributing factors, coupled with the introduction of a number of Australians Working Together measures, such as Personal Advisers and Working Credit, that aim to encourage and facilitate greater participation in the workforce and community. Working Credit began on 20 September 2003 and is available to over 2 million income support customers. It allows working-age customers to keep more of their income support payment when they first start work. Since its introduction, nearly 540 000 individuals have used their working credits. Newstart Allowance, Parenting Payment (Single), Youth Allowance (other), and Disability Support Pension customers appear to be the biggest users of Working Credit.

Payment to voluntary work agencies—Voluntary Work Initiative including AWT Participation through VolunteeringQuantityNumber of customers assisted and referred to voluntary work—18 146

Price$3.3 million

CommentaryA review of the program was completed in 2003. Consultation with the volunteering sector and other stakeholders about the future design of the program will be completed in 2004. The consultations have been designed to capture views about how the program can better respond to emerging needs and issues within the volunteering sector.

Personal Support Programme (PSP)CostAmount outlaid to PSP providers in the past 12 months, expressed as average cost per participant in dollars

Over 40 185 individuals accessed Personal Support Programme services in 2003-04 at an average cost of just under $1000 per participant.

Effectiveness-adequacyPercentage of participants achieving social outcomes, and durable economic outcomes, within the last 12 months (as assessed using FaCS guidelines)

In total, 4812 Personal Support Programme participants achieved a social or durable economic outcome in 2003-04:

1701 participants (35 per cent) achieved a durable economic outcome—that is, 26 continuous weeks of employment, education or transition into Job Network, intensive assistance or Disability Employment Assistance

977 (20 per cent) achieved an employment outcome

3111 participants (65 per cent) achieved a social outcome.

Quality-access and choiceNumber of organisations delivering PSP services, nationally, by rural/metropolitan breakdown

At June 2004, Personal Support Programme was being delivered at 600 sites throughout Australia. Of these sites, 300 are in metropolitan areas, 273 are in regional or rural areas, and 27 sites deliver Personal Support Programme in remote areas.

Nearly 90 per cent of the 137 employment service areas have more than one Personal Support Programme service provider operating within the area.

QuantityNumber of individuals participating in PSP over the last 12 months

In 2003-04 the Personal Support Programme assisted 40 185 individuals, up from approximately 26 000 in 2002-03 and exceeding target participant numbers of 35 000 for the year.

Price$36.7 million

CommentaryIn 2003-04, demand for the Personal Support Programme (PSP) continued to outstrip supply with waitlists peaking at nearly 20 per cent of capacity in November 2003.

On 30 June 2004 the Minister announced changes to the funding structure of the program, increasing the payments made to providers for the following service arrangements and outcomes: increase in interpreter allowance; introduction of a new remote service payment; bringing forward the economic outcome payment from 26 weeks to 13 weeks; and introducing a new post-placement support payment at 26 weeks.

These changes commence on 1 July 2004. The increase in the interpreter allowance was backdated for all current participants who were eligible for the interpreter allowance in the 2003-04 financial year as was the new remote service delivery payment.

Action research process was introduced to the PSP Indigenous pilots this year, with the primary objective being to document the development of the innovative pilots, and to assess the appropriateness of the new models for the broader PSP service delivery network. Action research reporting has been extended to February 2005 due to delays in the pilot start dates.

Welfare Reform Consultative ForumQuantityAdvice on operation of Australia’s welfare system

number of meetings per annum

number of individuals or organisations represented in the forum’s membership

The forum consists of nine members from the government, community and business sectors. The forum met twice during 2003-04, and members participated in a working group on developing and communicating new welfare reform language to encourage participation.

Price$0.5 million (departmental expenses)

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 3.1, 5.9 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

204 ministerial submissions and other written briefings or advice prepared; 580 ministerial replies to correspondence completed.

Price$19.7 million

Purchasing, funding and relationship managementQuality-assuranceDepartment ensures that service providers meet terms and conditions of funding

The Business Partnership Agreement with Centrelink sets out key result areas and performance measures that apply to payments and services for Output Group 3.1. Centrelink monitors performance against agreed standards for the delivery of services and provides quarterly performance reports to FaCS.

Service agreements or contracts meet legislative, government policy and departmental requirements are in place with all service providers

Under the Business Partnership Agreement with Centrelink, Output Group 3.1 has one output specification.

QuantityNumber of contracts or service agreements under management

Contracts: 2 (1 Business Partnership Agreement with Centrelink and 1 contract with Volunteering Australia)

Service agreements: 148 with Personal Support Programme providers

Number of service providers under management

149 service providers (1 contract with Volunteering Australia; 148 service providers deliver Personal Support Programme services across 600 sites nationally)

Price$12.0 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

Research and evaluation during 2003-04 met the timelines and terms of reference and used sound methodology. All research and evaluation was of a consistently high standard.

QuantityMajor pieces of research and evaluation completed-1

Price$15.6 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS

Maintaining the integrity of the $65 billion that the department administers on behalf of government continued to be a priority for the department in 2003-04.

The financial year 2003-04 was the second year of the rolling random sample survey that provides the department with access to independent data about the accuracy of payments to customers for all the major income support payments. This program was funded in the 2001-02 Budget.

The results of the random sample surveys show that the payment accuracy rate for the first two quarters of 2003-04 was 96.7 per cent, statistically unchanged from the 2002-03 result of 96.6 per cent. The payment types surveyed were Age Pension, Disability Pension, Newstart Allowance, Parenting Payment (Partnered), Parenting Payment (Single) and Youth Allowance.

Quality—customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.

In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that a total of 2 269 807 Newstart Allowance, Partner Allowance, Parenting Payment (Single), Parenting Payment (Partnered), Widow Allowance, Mature Age Allowance, Special Benefit and Pensioner Education Supplement reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $75 297 967 and upward variations resulted in fortnightly increases of $13 613 428. It is estimated that debts totalled $234 246 767. Performance outcomes for debt recovery and prosecution activity are reported in ‘Right payments to the right people’.

Percentage of reviews and appeals where the original decision is changed

Table 49: Reviews and appeals—Output Group 3.1, 2003-04

Authorised Reviews Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Payment typeReviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Newstart Allowance 5 953 33 1 055 31 178 16

Mature Age 137 34 45 24 15 0

Allowance

Partner Allowance 412 37 67 25 30 13

Widow Allowance 177 42 37 49 3 0

Special Benefit 328 30 70 30 16 31

Bereavement Allowance 10 30 2 0 0 0

Parenting Payment (Single) 2 630 41 574 43 99 19

Parenting Payment (Partnered) 1 676 36 376 33 70 14

Pensioner Education Supplement 307 33 60 20 10 0

Price$695.1 million — Centrelink

$4.2 million — other

Output Group 3.2 I Support for people with disabilitiesContribution to Outcome 3Support for people with disabilities contributes to Outcome 3 by:

promoting independence and self-reliance through support for the provision of rehabilitation services, specialist employment services and other services for people with disabilities

helping to support people with disabilities with limited means through the provision of income support.

Strategies finalise the Commonwealth State Territory Disability Agreement with all state and territory

governments, focusing on better outcomes for people with disabilities and improved reporting and accountability

improve targeting of Disability Support Pension consistent with the goals of increased participation and self-reliance

fund research and develop projects in accordance with strategic priorities

inform debate on policy issues by making data more accessible

facilitate national events such as the Prime Minister’s Employer of the Year Awards and International Day of People with Disabilities

facilitate participation of people with disabilities at national and international conferences

facilitate access to information, including recreation information and video captioning

deliver continuous improvement of disability employment assistance and rehabilitation services through the introduction of quality standards and the implementation of case-based funding and business service reforms.

Outputs under Output Group 3.2

Commonwealth State Territory Disability Agreement (CSTDA)The agreement provides the national framework for provision of specialist disability services. The Australian Government has responsibility for the planning, policy setting and management of specialised employment assistance for people with disabilities. The state and territory governments have similar responsibilities for most other specialist disability services, including accommodation support, respite care and community access programs. Support for advocacy, information and print disability is a shared responsibility.

Disability Support PensionDisability Support Pension is a means-tested income support payment for people with a physical, intellectual or psychiatric impairment who are unable to work for at least 30 hours per week at award wages, or be reskilled for such work, within two years because of their impairment (special rules apply for people who are blind).

Mobility AllowanceMobility Allowance is a non-means tested income supplement to help with transport costs for people with disabilities who are in employment, vocational training, a combination of work or training, voluntary work or job search who are unable to use public transport without substantial assistance.

Sickness AllowanceSickness Allowance is a means-tested income support payment for people who are temporarily incapacitated for work or study due to illness and have a job or course of study to return to.

Wife Pension (Disability Support Pension)Wife Pension (DSP) is a means-tested income support payment available to female partners of Disability Support Pension recipients who were on payment as at 30 June 1995. Since 1 July 1995, this payment has been closed to new applicants.

Employment assistance and other servicesAdvocacyAdvocacy enables people with disabilities to more fully participate in community life, and achieve and maintain rights as citizens, involving their families where possible and appropriate.

Caption and Information ServicesThe services help people with disabilities access recreation information and captioned entertainment videos for people who are deaf or hearing-impaired.

Commonwealth Disability StrategyThe strategy is a whole-of-government approach to assist Australian Government agencies to design and deliver policies, programs and services that are accessible to people with disabilities. See Volume two, Part three, ‘Appendix 2’ for a report on FaCS’ performance against the strategy.

Disability Employment Assistance ProgramThe program provides funding for employment and related services to assist jobseekers with permanent disabilities that require ongoing support to find and maintain employment.

Employer Incentives StrategyThe strategy encourages employers to provide durable job opportunities for people with disabilities, including workplace modifications, wage subsidies, supported wage assessments and the disability recruitment coordinator service.

National Disability Advisory CouncilThe council provides consumer-focused advice to the Minister for Family and Community Services on disability issues and encourages consultation between the Government and people with disabilities, families, carers and service providers within the disability sector.

National Family Carers Voice (NFCV)The NFCV was established in August 2003 to provide an effective voice to government on family carer issues. The NFCV was appointed for two years to provide the Government with advice and options for addressing the longer-term needs of family carers.

Prime Minister’s Employer of the Year AwardsThe awards recognise employers who have demonstrated excellence in employing people with disabilities.

Print Disability ServicesThe services subsidise the production of print material in alternative formats such as audiotape and Braille.

Rehabilitation servicesRehabilitation services improve function and independence of people with disabilities so they can gain or retain suitable employment or live independently. These services are provided on behalf of FaCS by CRS Australia.

Performance summary

Key achievements included: agreement with all states and territories on the third Commonwealth State Territory Disability

Agreement.

The third agreement emphasises improved accountability and transparency for use of funding by all jurisdictions, better long-term demand management, and better cross-government linkages for services.

introduction of service update reviews for people receiving Disability Support Pension, which provide opportunity for broad assessments of customers’ circumstances and offers of assistance to maximise participation

presentation of the Prime Minister’s Employer of the Year Awards at Parliament House in October 2003 .

These awards recognise businesses that employ people with disabilities, demonstrating that disability need not be a barrier to a successful and productive working life.

completion of the first national study into supply and demand for Auslan interpreting services across Australia

introduction of voluntary employer reporting to assist Disability Support Pension customers, working in Business Services and with variable employment income, with their fortnightly reporting requirements.

Over 120 business services are registered for employer reporting and are able to report their employees’ earnings direct to Centrelink on a regular basis.

Significant progress was made on implementing reforms to disability employment assistance with:

finalisation of the case-based funding arrangements for disability employment assistance

implementation of a range of resources to help disability employment assistance services prepare for the transition to case-based funding

release of the business services wage assessment tool and the case-based funding prices for business services and open employment services in April 2004

reviews of business services by independent consultants

progress with the ‘Security, Quality Services and Choice for People with Disabilities’ measure announced in April 2004, which provides a flexible funding package to help business services improve their viability and to meet the costs of fairer, award-based wages

nature of the reforms to disability employment assistance services significantly influenced by consultations with people affected by the reforms.

The ‘Security, Quality Services and Choice for People with Disabilities’ package announced in May 2004 was shaped by public consultations held around Australia in 2001, 2002, and again in October and November 2003. These consultations involved providers, consumers, families and carers, and representative bodies of all these groups.

completion of a mid-term review of the quality strategy for disability employment assistance and rehabilitation services, which identified the improvements that can be made to ensure that the best possible administrative arrangements are in place by the end of December 2004

release of approximately 3000 additional disability employment assistance places funded under the AWT measure.

Around 6000 new jobseekers were assisted under the measure in 2003-04.

Work is required to: monitor the outcomes from the Australians Working Together Better Assessment and Early

Intervention measure to identify ways of maximising participation for people with disabilities

further consider policy options to improve effectiveness of the Disability Support Pension program

pursue research into disability and employment issues in partnership with research institutions

establish the new national Auslan interpreter booking service and work with state and territory governments to increase the supply of accredited Auslan interpreters

continue the assistance to business services through implementation of the ‘Security, Quality Services and Choice for People with Disabilities’ package of measures aimed at ensuring people with disabilities in business services enjoy continued service, choices in their employment and payment of award-based wages in a quality environment

implement case-based funding progressively from 1 July 2004

undertake monitoring and evaluation activities related to the Budget measures

improve access to, and outcomes from, mainstream services for people with disabilities.

Financial and staffing resources summaryTable 50: Output Group 3.2—Support for people with disabilities

Group 3.2: Support for people with disabilities

(A) Budgeta

2003-04 $’000

(B) Actual 2003-04

$’000

(column B minus

column A) $’000

Budgetb

2004-05 $’000

Administered Expenses (including third party outputs)

Auslan Interpreting Services0 0 0 2 123

Rehabilitation Servicesc

119 181 119 181 0 122 305

Employment Assistance and Other Services (including expenditure under the Disability Services Act 1986) 363 423 350584 -12 839 411 873

Commonwealth State Territory Disability Agreement 558 967 558 967 0 570 185

Special Appropriations

Disability Support Pension (Social Security (Administration) Act 1999) 7 490 847 7492532 1 685 7 951 912

Mobility Allowance (Social Security (Administration) Act 1999) 81 770 82 163 393 88 801

Sickness Allowance (Social Security (Administration) Act 1999) 84 170 85 375 1 205 87 167

Wife Pension (DSP) (Social Security (Administration) Act 1999) 326 542 326 083 -459 300 063

Total Administered Expenses 9 024 900 9 014 885 -10 015 9 534 429Price of Departmental Outputs

Policy Advice7 836 7 838 2 11 078

Purchasing, Funding & Relationship Management 22 921 22 925 4 32 401

Research and Evaluation5 995 5 996 1 8 473

Service Delivery (Centrelink)244 555 256 084 11 529 260 953

Service Delivery (other)3 145 3 143 -2 3 382

Revenue from Government (Appropriation) for Departmental Output Groups 284 452 295 986 11 534 316 287FaCS Componentd

39 897 39 902 5 55 334

Group 3.2: Support for people with disabilities

(A) Budgeta

2003-04 $’000

(B) Actual 2003-04

$’000

(column B minus

column A) $’000

Budgetb

2004-05 $’000

Centrelink Component244 555 256 084 11 529 260 953

TOTAL FOR GROUP 3.2 9 309 352 9 310 871 1 519 9 850 716Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 407 365

a.Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b.Budget prior to additional estimates.

c.Departmental appropriations for Rehabilitation Services (CRS) have been reclassified as administered appropriations from 1 July 2003.

d.FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Commonwealth State Territory Disability AgreementThe Commonwealth State Territory Disability Agreement provides the national framework for the delivery, funding and development of specialist disability services for people with disabilities. Under the agreement the Australian Government has responsibility for the planning, policy setting and management of specialised employment assistance. The state and territory governments have similar responsibilities for accommodation support, community support, community access and respite. Support for advocacy and print disability is a shared responsibility.

Services administered by the state and territory governments, with some Australian Government financial support, are addressed on pages 184-185. Services administered by the Australian Government are addressed on pages 185-193.

Effectiveness-capacityProportion of accommodation customers receiving community-based care or support

This area is an agreed responsibility of state and territory governments. No maximum or minimum capacity is set by the Australian Government. Information on usage is collected by the Productivity Commission.

Services provided with Australian Government unmet-need funds

Reporting on this has ceased since funds are no longer separately identified.

Effectiveness—take-up/coverageNumber of estimated potential population using accommodation services

This area is an agreed responsibility of state and territory governments. No maximum or minimum capacity is set by the Australian Government. Nationally, 3.0 per cent of the estimated potential

population were users of accommodation support services on the snapshot day in 2002 (Productivity Commission, Report on Government Services 2004, page 13.16).

Effectiveness-targetingProportion of customers from linguistically and culturally diverse or Indigenous backgrounds

Table 51: CSTDA-funded services—percentage of service users from linguistically and culturally diverse and Indigenous backgrounds by service type, 1 January to 30 June 2003

Service typeCulturally & linguistically diverse clients (%) Indigenous clients (%)

Accommodation support 4.1 3.7

Community support 3.3 4.8

Community access 3.7 2.4

Respite 3.2 4.0

Open employment 5.0 2.2

Supported employment 3.9 2.1

Open and supported employment 8.3 3.3

Source: Commonwealth State Territory Agreement Annual Public Report 2002-03.

Note: Service user data are estimates after use of a statistical linkage key to account for individuals who received more than one service during the six months.

QuantityNumber of customers in different service types

Table 52: CSTDA-funded services—number of service users and services received by service type, 1 January to 30 June 2003

Service type Service users Services received

Accommodation support 29 660 31 272

Community support 53 588 69 140

Community access 41 925 46 225

Respite care 16 706 19 403

Open employment 35 321 35 871

Supported employment 17 565 17 789

Open and supported employment 3 064 3 067

All service types 155 707 222 767

Source: Commonwealth State Territory Agreement Annual Public Report 2002-03.

Note: For each service user, the number of ‘services received’ represents the number of different service type outlets from which the service user has received services. Service user data are after use of a statistical linkage key to account for individuals who received more than one service during the six months from 1 January to 30 June 2003. Totals may not be the sum of the components since individuals may have accessed services from more than one state or territory over the six-month period.

Price$559.0 million

CommentaryThe revised data set is now collecting whole-of-year data instead of a single snapshot day. Due to the redevelopment of the new CSTDA national minimum data set, the number of consumers of CSTDA services by disability type, from linguistically and culturally diverse backgrounds, Indigenous backgrounds and use of service types for 2003-04 was not available for inclusion in this report. The revised data collected will improve the range and quality of information about the people who receive CSTDA-funded services.

Disability support: Disability Support Pension, Mobility Allowance, Sickness Allowance and Wife Pension (DSP)Effectiveness-adequacyMaximum payments to recipients-as a percentage of Male Total Average Weekly Earnings (MTAWE)

Disability Support Pension and Wife Pension (DSP) are adjusted twice a year in line with the Consumer Price Index (CPI). After the CPI adjustment, if the single pension rate is less than 25 per cent of Male Total Average Weekly Earnings, it is increased to that level (with a proportional flow-on to the partnered rate of pension). Rent Assistance is also indexed to the CPI.

The maximum rate of Disability Support Pension depends upon whether a person is aged under 21 and/or has dependent children.

Maximum payments to recipients-index of real value

The real value of Sickness Allowance and Mobility Allowance is maintained through annual indexation in line with the CPI.

Effectiveness-independenceAverage duration of payment

Disability Support Pension: 7.5 years (30.9 per cent for less than three years, 26.7 per cent for 10 years or more)

Sickness Allowance: 34 weeks

Percentage of customers with income from employment and average amount of income from employment per fortnight (June 2004)

Disability Support Pension: 9 per cent of clients with an average amount of income from employment of $388 per fortnight

Wife Pension (DSP): 20 per cent of clients with an average amount of income from employment of $579 per fortnight

Percentage of customers with non-employment income and average amount of non-employment income per fortnight (June 2004)

Disability Support Pension: 82 per cent of clients with an average amount of non-employment income of $86 per fortnight

Wife Pension (DSP): 87 per cent of clients with an average amount of non-employment income of $45 per fortnight

Effectiveness-take-up/coveragePercentage of people of workforce age who receive Disability Support Pension or Wife Pension (DSP) or Sickness Allowance or Mobility Allowance

744 439 people received disability-related benefits, or around 7.3 per cent of the Australian civilian labour force population.

93.6 per cent received Disability Support Pension.

4.5 per cent received Wife Pension (DSP).

1.1 per cent received Sickness Allowance.

Of the 47 402 customers receiving Mobility Allowance, 41 327 also received Disability Support Pension. A total of 2293 customers receiving Mobility Allowance were receiving other forms of income support.

Effectiveness-targetingPercentage of customers by disability typeDisability Support Pension:

Musculo-skeletal conditions: 34 per cent

Psychological/psychiatric conditions: 25 per cent

Intellectual/learning difficulties: 11 per cent

Sickness Allowance:

Musculo-skeletal conditions: 15 per cent

Depression: 13 per cent

Fracture and crush injuries: 12 per cent

Percentage on part rate due to means testData were not available due to changes to Centrelink systems with the introduction of Working Credit in September 2003. Data for 2003-04 will be included in the 2004-05 annual report.

QuantityNumber of customers in receipt of assistanceDisability Support Pension: 696 742

Wife Pension (DSP): 33 183

Sickness Allowance: 8478

Mobility Allowance: 47 402

Number of customers paid under international agreements-2870

Average value of payments for DSP at June 2004-$6698 per year

Price$7.5 billion-Disability Support Pension

$82.2 million-Mobility Allowance

$85.4 million-Sickness Allowance

$326.1 million-Wife Pension (DSP)

CommentaryIn 2003-04, the Disability Support Pension population increased by 3.5 per cent. With the exception of 2001-02, the rate of increase has gradually slowed since the 13.3 per cent increase recorded in 1991 following the introduction of the disability reform package.

Since the implementation of the Australians Working Together Better Assessment and Early Intervention measure in 2002, the rejection rate for Disability Support Pension claims has increased from 33 per cent in 2001-02 to 37 per cent in 2003-04. That measure introduced independent assessment of work capacity to provide Centrelink staff with better information about the appropriate payment and service needs of people with varying degrees of incapacity for work.

Customers receiving Disability Support Pension are more likely to be male; however, the proportion of female customers is increasing, mainly due to the closure of other forms of income support payments, such as Wife Pension (DSP) and Widow B Pension, and the increasing Age Pension qualifying age for women. Customers are more likely to be between 45 and 65 years of age.

The three largest categories of disability type are musculo-skeletal conditions, psychological/psychiatric conditions and intellectual/learning difficulties. The proportion of customers in each of these categories has remained largely unchanged over the past few years.

Service update reviews introduced in September 2003 have contributed to an improvement in payment correctness as indicated by a reduction in the average amount of debt accrued by Disability Support Pension customers, suggesting that incorrect payments are being detected earlier.

Employment assistance and other servicesDisability Employment Assistance Program Effectiveness-early interventionNumber of young people (15-24 years) assisted as a proportion of new jobseekers (block grant funding)-38 per cent

Effectiveness-targetingPercentage of customers from linguistically and culturally diverse backgrounds-7 per cent

Quality-assuranceNumber of disability employment services certified under the post-30 June 2002 Disability Service Standards

Under the new quality assurance system 54 per cent of disability employment services achieved certification by 30 June 2004. The remaining disability employment services are scheduled to have audits before the end of December 2004.

Number of disability employment services meeting the pre-1 July 2002 Disability Services Standards

All services met the standards in place before 1 July 2002 or had acceptable action plans for meeting the pre-1 July 2002 standards. Service quality was monitored through annual self-assessment, five-yearly audits and review of standards action plans by FaCS state and territory offices.

QuantityNumber of customers receiving assistance from funded specialist disability employment services (block grant and case-based funding)-68 137

Percentage increase in the number of customers assisted by funded specialist disability employment services since 1996-97 (both block grant and case-based funding)-61.1 per cent

Block grant funding Effectiveness-capacityPercentage of all customers who have achieved a sustainable employment outcome (13 weeks of work) under block grant funding-62.8 per cent

Percentage of new jobseeker customers who have achieved a sustainable employment outcome (13 weeks of work) under block grant funding-32.5 per cent

Case-based funding Effectiveness-capacityNumber of jobseekers who have achieved a sustainable employment outcome (26 weeks of work), as a proportion of all jobseekers under case-based funding since November 1999— 35 per cent

Percentage of new jobseeker customers who have achieved a sustainable employment outcome (26 weeks of work) under case-based funding—35 per cent

Effectiveness—early interventionNumber of young people (15-24 years) in employment assistance, as percentage of all new jobseekers (case-based funding only)—39.9 per cent

Respite for carers of young people with severe or profound disabilities QuantityNumber of carers of young people with severe or profound disabilities assisted by Australian Government-funded respite centres—5737

Employer incentives QuantityNumber of customers assisted under the employer incentives strategy programs of wage subsidy, supported wage system, and workplace modifications

Wage subsidy scheme: 2580

Supported wage system: 3425

Workplace modifications scheme: 275

Total price$350.6 million

CommentaryA number of research and evaluation activities were undertaken during the year to provide a solid evidence base to support the disability employment assistance reforms and to help create a viable, sustainable business service sector.

The mid-term review of the 2001-02 Budget measure introducing a quality strategy for disability employment assistance services confirmed that the system provides a robust system for determining whether disability employment and rehabilitation services comply with the Disability Services Standards. The review also found that FaCS faces a number of challenges, including sustaining industry focus on achieving certification by December 2004.

Case-based funding prices for both open employment services and business services were subject to lengthy trialling and evaluation before being announced. Financial modelling tools were developed to enable services to predict their likely future funding levels in both transition to and a full case-based funding environment.

A panel of consultants was convened to review the viability of business services. Reviews of most business services were completed during the year and these have laid a solid foundation for the implementation of the business services assistance package.

In order to monitor the introduction of the reforms and evaluate their success, an evaluation framework and plan for the reforms were developed. These will ensure the design and planning of monitoring and evaluation activities are well coordinated, that appropriate linkages between evaluation-related activities are established and maintained, and that timely and relevant evaluation information is available.

During 2003 a safety net discussion paper was distributed to facilitate a national round of consultations. The consultations, involving 202 sessions nationally, were undertaken to provide information on the objectives and content of disability employment assistance reforms and their impact on customers and their families, and information on case-based funding and its implications for business services. The consultations involved business services, people with disabilities, their families and carers and local disability stakeholders.

The consultations highlighted anxiety about the cost of paying pro-rata award based-wages, continuity of service and the possible impact of wages on Centrelink assistance provided to families, carers and people with disabilities. Feedback from the consultations and subsequent

written submissions were used to formulate the ‘Security, Quality Services and Choice for People with Disabilities’ package announced in May 2004.

Extensive trialling of the new wage tool for business services was undertaken in 2002-03. Its release was delayed following the Business Services Review Implementation Group’s request to further test its methodology. The new wage tool was demonstrated with a representative sample of 31 business services in 2003-04. The wage tool was subject to extensive independent expert review and found to be reliable, transparent and consistent with modern wage remuneration practices.

The Business Services Review Implementation Group (BSRIG), a joint initiative with ACROD, the national industry association for disability services, was established in 2001 to assist the business services sector to implement the 52 recommendations of the business services review report released in 2000.

The BSRIG continues to develop advice on strategies to assist business services to improve their commercial performance.

Approximately 3000 additional disability employment assistance places funded under the AWT measure were released. Around 6000 new jobseekers were assisted under the measure in 2003-04.

Rehabilitation servicesFaCS continued to purchase rehabilitation services from CRS Australia in 2003-04.

Effectiveness-capacityNumber of new customers assisted on a rehabilitation program

New customers assisted: 24 535

Existing customers assisted: 16 819

Percentage of rehabilitation customers achieving a durable employment outcome

A total of 23 587 customers exited from a CRS rehabilitation program during 2003-04 and of this number 16 064 customers achieved an outcome.

An employment outcome of 13 weeks or more was achieved by 8874 customers (37.6 per cent). An ‘other’ economic outcome (for example, studying, supported employment or voluntary work) was achieved by 1901 customers (8.1 per cent) and a social outcome (for example, seeking work and increased community participation) was recorded by 5289 customers (22.4 per cent).

In addition, 475 customers completed an independent living program and achieved increased social participation.

Percentage of customers achieving outcomes in CRS Australia rehabilitation programs

Table 53: Customer outcomes in CRS Australia rehabilitation programs, 2002-03 and 2003-04

2003-04 2002-03

Activity Number Percentage Number Percentage

Employment outcomesa 8 874 37.6 7 290 38.5

Other economic outcomesa 1 901 8.1 1 406 7.4

2003-04 2002-03

Activity Number Percentage Number Percentage

Social outcomes 5 289 22.4 3 347 17.7

Total outcomes 16 064 68.1 12 043 63.6

Incomplete programs 7 523 31.9 6 902 36.4

Total rehabilitation programsb 23 587 100 18 945 100

a. In 2003-04, CDEP has been removed as an employment outcome and is now included as an ‘other’ economic outcome.

b. Total programs less independent living programs.

Effectiveness-targetingPercentage of customers from linguistically and culturally diverse backgrounds, and by disability, gender and age

Table 54: New customers supported by CRS Australia by special needs groups, 2003-04

Special needs group Percentage

Aboriginal or Torres Strait Islander background 1.01

Culturally and linguistically diverse backgrounds 9.23

Rural and remote 6.04

Capital and metropolitan 93.96

Note: ‘Rural and remote’ incorporates the Accessibility/Remoteness Index of Australia (ARIA) classifications Moderately Accessible, Remote and Very Remote. Capital and Metropolitan incorporates ARIA classifications Accessible and Highly Accessible.

Table 55: New customers supported by CRS Australia by primary disability type, 2003–04

Primary disability Percentage

Physical 57.72

Intellectual/learning 2.72

Acquired brain injury 4.33

Vision 1.34

Hearing 2.63

Speech 0.14

Psychiatric 27.78

Neurological 1.52

Blind/deaf 0.04

Other 1.78

Table 56: New customers supported by CRS Australia by age and gender, 2003–04

Age group Males (%) Females (%) Total customers

0-19 3.37 4.06 888

20-24 8.32 9.53 2148

25-29 10.19 9.09 2403

30-39 26.87 21.29 6099

40-49 28.03 33.39 7351

50-59 20.58 21.28 5111

60 plus 2.64 1.36 535

Total 100.00 100.00 24 535Quality-assuranceCRS Australia delivers services to the agreed standards

CRS Australia provides services under and in accordance with Part III of the Disability Services Act 1986, and under the terms and conditions set out in its service-level agreement with FaCS. CRS Australia delivered services to the standards agreed under the service-level agreement for rehabilitation services.

CRS Australia successfully completed the accreditation process under the recently introduced quality assurance framework for disability employment and rehabilitation services. Of all customers responding to the CRS Australia feedback survey, 91 per cent rated CRS Australia service as good to excellent, with 62 per cent rating CRS Australia as excellent.

QuantityNumber of customers assisted on a rehabilitation program

In 2003-04 CRS Australia was contracted to provide assistance to 39 445 eligible customers, consisting of 22 626 new customers (+/- 5 per cent) and 16 819 existing customers in 2003-04. CRS Australia exceeded this requirement, providing services to 24 535 new customers in addition to 16 819 existing customers, or 41 354 customers in total.

Price$119.2 million

Commentary

A cost-benefit analysis of vocational rehabilitation was undertaken by Curtin University, indicating a total benefit-to-cost ratio of 30:1—that is, for every $1 spent by the Australian Government, there is over a $30 return in public and social benefits.

CRS Australia received additional funding under the Australians Working Together package, which enabled it to assist 4800 additional mature-aged jobseekers and parents in 2003-04.

CRS Australia undertook three early intervention pilot projects testing the effectiveness of a group program for youth and mature-aged jobseekers with a disability regarded as lacking the motivation to undertake a vocational rehabilitation program. The model was seen to be an effective one in improving participants’ readiness to participate in vocational activity. At the completion of the pilots over 75 per cent of participants moved on to a vocational activity, paid work, or further study.

Most participants reported personal gains in managing their health and disability.

Departmental outputs

CostRatio of departmental expense to administered expense

For every dollar spent on administered items under Output Group 3.2, 3.3 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standards for policy advice

Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

324 ministerial submissions and other written briefings or advice prepared; 1142 ministerial replies to correspondence completed.

Price$7.8 million

Purchasing, funding and relationship managementQuality—assuranceDepartment ensures that service providers meet terms and conditions of funding

The relevant areas in FaCS and Centrelink negotiated the Disability and Carers Output Specification for 2003-04. It establishes performance measures for the delivery of disability payments and services that FaCS purchases from Centrelink. This specification formed part of the overarching Business Partnership Agreement between the two organisations. A framework was developed to monitor and report against agreed standards for delivering services.

Service providers’ performance is monitored through regular reports specified in funding agreements. All service providers meet the terms and conditions of funding.

Service agreements or contracts that meet legislative, government policy and departmental requirements in place with all service providers

Such agreements are in place with all providers.

QuantityNumber of contracts or service agreements under management (both departmental and administered)-547

Number of service providers under management (both service outlets and consultants or contractors) -952

Price$22.9 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development

Research and evaluation during 2003-04 met the timelines, terms of reference and used sound methodology. All research and evaluation was of a consistently high standard.

QuantityMajor pieces of research and evaluation completed-8

Price$6.0 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS-100 per cent

Quality—customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.

In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that a total of 548 783 Disability Support Pension, Wife Pension (DSP), Sickness Allowance and Mobility Allowance reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $8 003 651, and upward variations resulted in fortnightly increases of $1 942 185. It is estimated that debts totalled $57 717 679. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.

Percentage of reviews and appeals where the original decision is changed

Table 57: Reviews and appeals—Output Group 3.2, 2003-04

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Payment typeReviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Disability Support Pension 7027 30 2317 32 542 27

Wife Pension (Disability Support Pension) 255 41 100 37 36 6

Sickness Allowance 189 28 38 32 6 17

Mobility Allowance 181 33 28 25 5 20

Disability Wage Supplement 2 50 0 0 1 0

Price$256.1 million — Centrelink

$3.1 million—other

Output Group 3.3 I Support for carersContribution to Outcome 3Support for carers contributes to Outcome 3 by helping to support carers through the provision of income support and income supplement payments.

Strategies provide targeted income support and supplementary payments for carers that recognise their

diversity

maintain policies that encourage the social and economic participation of carers, including voluntary or paid work and study

provide carers who wish to re-enter the labour market with assistance while in the caring role and when their caring responsibilities cease

increase community awareness of carer payment programs and other support for carers provided by the Government.

Outputs under Output Group 3.3

Carer AllowanceCarer Allowance is an income supplement for people who provide daily care and attention at home to a person who has disabilities or a severe medical condition. The payment is not means-tested; it is indexed annually.

Carer PaymentCarer Payment is an income support payment for people whose caring responsibilities prevent them from undertaking substantial workforce participation. The payment is means-tested and paid at the same rate as other social security pensions.

Performance summary

Key achievements included: payment of a one-off Carer Bonus of $1000 to eligible recipients of Carer Payment and a one-

off Carer Bonus of up to $600 for Carer Allowance recipients for each eligible care receiver for whom they provide care

supporting the work of the National Family Carers Voice

completing the review of Carer Allowance customers who are carers of children whose eligibility had been assessed before July 1998 and had not been subject to medical review for five years

amending the lists of recognised disabilities that automatically qualify carers of children for Carer Allowance by adding or modifying six disabilities or medical conditions

completing the review of the lists of recognised disabilities used in the assessment of eligibility for Carer Allowance (Child).

Work is required to: continue supporting the work of the National Family Carers Voice

contribute to the young carers summit being organised and conducted on the Government’s behalf by Carers Australia. The summit will provide young carers with the opportunity to obtain information and to talk with government at all levels about improving support for young carers.

evaluate the child and adult disability assessment tools

implement any recommendations from the review of the lists of recognised disabilities used in the assessment of eligibility for Carer Allowance (Child)

implement the 2004-05 Budget measures for carers, including:

– extending Carer Allowance eligibility to carers who do not live with the person for whom they provide substantial levels of personal care on a daily basis

– providing additional respite services and age-appropriate information to help young carers stay in education while also providing care

– providing up to four weeks’ respite for parents aged 70 years and over who are caring for a son or daughter with disabilities when funding is matched by state and territory governments. Parents aged 65 to 69 years who care for a son or daughter with disabilities and need to spend time in hospital will be eligible for up to two weeks’ respite care.

– piloting a range of programs that will further assist carers in their role

explore the issue of succession planning for parents of sons and daughters with severe disabilities by establishing an advisory body to work with the Australian Government and state and territory governments.

Financial and staffing resources summaryTable 58: Output Group 3.3—Support for carers

Group 3.3: Support for carers

(A)Budgeta

2003-04S’000

(B)Actual

2003-04S’000

Variation (column B

minus column A)

S’000

Budgetb

2004-05S’000

Administered Expenses (including third party outputs)

Special Appropriations

Assistance to Carers0 0 0 3767

Carer Allowance (Adult and Child) (Social Security (Administration) Act 1999) 942 341 965430 23 089 825943

Carer Payment (Social Security (Administration) Act 1999) 909606 921008 11402 945 200

Total Administered Expenses 1851947 1886 438 34491 i7749ioPrice of Departmental Outputs

Policy Advice1645 1645 0 2870

Purchasing, Funding & Relationship Management 773 773 0 1349

Research and Evaluation195 195 0 339

Service Delivery (Centrelink)16219 26 965 10746 23931

Service Delivery (other)844 844 0 880

Revenue from Government (Appropriation) for Departmental Output Groups 19 676 30422 10746 29369FaCS Componentc

3457 3457 0 5438

Centrelink Component16219 26 965 10746 23931

TOTAL FOR GROUP 3.31871623 1916 860 45237

1804 279

Staffing Years (Number) 2003-04 2004-05FaCS (including the Social Security Appeals Tribunal) 29 27

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b. Budget prior to additional estimates.

c. FaCS includes the Social Security Appeals Tribunal.

Performance information

Administered itemsThe majority of performance information presented below is calculated using data for June 2004. This means that the information corresponds to a point in time rather than a yearly average.

Carer AllowanceEffectiveness-adequacyMaximum payments to recipients-Carer Allowance to be regularly indexed in line with the Consumer Price Index (CPI)Carer Allowance is indexed on 1 January each year.

QuantityNumber of customers receiving Carer Allowance198 083 received Carer Allowance (Adult)

96 153 received Carer Allowance (Child)

2856 received both Carer Allowance (Adult) and Carer Allowance (Child)

17 464 did not receive Carer Allowance (Child) but did receive a Health Care Card only (also 515 were ‘not coded’)

Number of people cared for by customers receiving Carer Allowance339 630 Carer Allowance care receivers, including 205 663 adults, 111 774 children and 22 193 children for whom a Health Care Card only was received.

Price$965.4 million

Carer PaymentEffectiveness-adequacyMaximum payments to recipients-as a percentage of Male Total Average Weekly Earnings (MTAWE)Carer Payment is adjusted twice a year in line with the Consumer Price Index (CPI). If the single pension rate (excluding the component added in as part of the new tax system) is less than 25 per cent of MTAWE, then Carer Payment is increased to that rate (with, for partnered recipients, a proportional flow-on to the partnered rate of pension).

Effectiveness-independencePercentage of customers with income from employment and average amount of income from employment per fortnight (June 2004)—11 per cent of customers with an average amount of income from employment of $380 per fortnight

Percentage of customers with non-employment income and average amount of non-employment income per fortnight (June 2004)-88 per cent of customers with an average amount of non-employment income of $62 per fortnight

Effectiveness-take up/coverage

Percentage of Carer Payment customers also in receipt of Carer Allowance—76 per cent (June 2004)

Effectiveness-targetingPercentage on part rate due to means test—Data were not available due to changes to Centrelink systems with the introduction of Working Credit in September 2003. Data for 2003-04 will be included in the 2004-05 annual report.

QuantityNumber of customers receiving Carer Payment—84 082

Number of people cared for by customers receiving Carer Payment (at June 2004)-89 404

Price$921.0 million

CommentaryIn 2003-04, the number of customers receiving Carer Payment increased by 11 per cent, down from a 13 per cent increase in 2002-03. The number receiving Carer Allowance decreased by 1 per cent, down from a 10 per cent increase in 2002-03. The change in customer numbers reflects a number of factors:

demographic changes, such as the ageing of the population and an associated increase in the incidence of people suffering from disabilities

greater public awareness of the two payments

the increase in numbers of people with disabilities and medical conditions being cared for at home

the liberalisation of the qualification criteria for Carer Payment

broader targeting of Carer Allowance

reduction in the number of Carer Allowance customers following the review in 2003 of the status of children whose eligibility had been protected from medical review for five years.

Departmental outputs

CostRatio of departmental expense to administered expenseFor every dollar spent on administered items under Output Group 3.3, 1.6 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department meets standard for policy adviceMinisters and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers

134 ministerial submissions and other written briefings or advice prepared; 600 ministerial replies to correspondence completed.

Price$1.6 million

Purchasing, funding and relationship managementQuality—assuranceDepartment ensures that service providers meet terms and conditions of fundingThe relevant areas in FaCS and Centrelink negotiated the Disability and Carers Output Specification for 2003-04. It establishes performance measures for the delivery of carer payments and services that FaCS purchases from Centrelink. This specification forms part of an overarching Business Partnership Agreement between the two organisations. A framework was developed to monitor and report against agreed standards for delivering services.

QuantityNumber of contracts or service agreements under management1—Business Partnership Agreement with Centrelink

Number of service providers under management1—Centrelink, through the FaCS-Centrelink Business Partnership Agreement

Price$0.8 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and developmentResearch and evaluation in progress met the timelines and terms of reference and used sound methodology. All research and evaluation was of a consistently high standard.

Quantity

Major pieces of research and evaluation completed-1

Price$0.2 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCSThe Business Partnership Agreement with Centrelink sets FaCS’ key result areas and performance measures for carer program payments. Centrelink monitors performance against agreed standards for the delivery of services.

Quality—customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activities

Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.

In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that 214 404 Carer Payment reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $1 376 475, and upward variations resulted in fortnightly increases of $261 664. It is estimated that debts totalled $6 705 643. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.

Percentage of reviews and appeals where the original decision is changedTable 59: Reviews and appeals—Output Group 3.3, 2003–04

Payment type

AuthorisedReview Officers

Social SecurityAppeals Tribunal

AdministrativeAppeals Tribunal

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Carer Allowance 1 197 22 294 25 43 9

Carer Payment 664 36 172 33 34 9

Price$27.0 million — Centrelink

$0.8 million — other

Output Group 3.4 I Support for the agedContribution to Outcome 3Support for the aged contributes to Outcome 3 by:

assisting retirees to make the best use of savings and investments to maintain their standard of living

helping to support the aged with limited means through the provision of income support

providing information and fostering opportunities for mature-age people to participate in their community.

Strategies promote participation, independence and self-reliance among older Australians through policy

development, education and advisory services

contribute to an adequate, sustainable and appropriately targeted social safety net through the means test and policy directions that focus on older Australians

enter into international social security agreements to enable Australians to gain access to overseas pensions and domestic benefits that would be otherwise unavailable

influence the policy debate about population ageing issues and retirement income issues

provide recognition for the contribution made by older Australians to building the community.

Outputs under Output Group 3.4

Ex gratia payments to Holocaust survivorsRestitution payments made to Holocaust victims regardless of the payment’s country of origin have been made exempt from the social security income test from 13 May 2003 under a measure announced in the 2003-04 Budget. Previously only payments made by the German and Austrian governments were exempt. All income support recipients who receive restitution payments in relation to Nazi persecution now receive consistent treatment under the social security income test. The ex gratia payments were made until legislation was passed.

National Information Centre on Retirement Investments (NICRI)NICRI is an independent body funded by the Australian Government to provide the public with free and independent information on planning and saving for retirement, on the nature of investment options and on effective use of financial resources in retirement.

Support for the aged

Age PensionAge Pension is a payment for people of Age Pension age who cannot support themselves fully in retirement. Age Pension age is currently 65 years of age for men and 62.5 for women. The qualifying age for women is being progressively raised to 65 and will reach that age by 2014.

Widow B PensionWidow B Pension is paid only to widowed, divorced and separated women aged 50 years and over on 1 July 1987, and women aged 45 and over on 1 July 1987 who received Sole Parent Pension (or one of its forerunners) on or after that date. The payment is being phased out in recognition of women’s increasing labour force participation, with no new grants from 20 March 1997.

Wife Pension (Age)Wife Pension (Age) is a safety net payment for female partners of recipients of Age Pension where those partners are not eligible in their own right for the Age Pension. The payment is being phased out, with no new grants since 1 July 1995.

FaCS also makes Age, Wife (Age) and Widow B pension payments to people under various international social security agreements.

Pension Bonus SchemeThe Pension Bonus Scheme is intended to encourage older Australians to continue working beyond Age Pension age rather than retiring from the workforce and claiming Age Pension. It provides a one-off tax- free lump sum to eligible people. It is payable when a person registered in the scheme finally claims and receives Age Pension.

Telephone Allowance to Commonwealth Seniors Health Card holdersTelephone Allowance is available to Commonwealth Seniors Health Card holders to assist with the cost of maintaining a telephone service.

FaCS seniors publicationsFaCS promotes independence and self-reliance through the promotion of a range of publications which, in addition to the information and services provided through the Financial Information Service (FIS) and NICRI, provide information to retirees and pre-retirees on planning, saving and preparing for retirement, on investment options and on the effective use of savings for self-

support. The department works with industry bodies, other agencies and community groups in producing these publications. The publications are available through Centrelink offices and on the FaCS web site.

Performance summary

Key achievements included: major contribution to the development of the Australian government paper A More Flexible and

Adaptable Retirement Income System.

The paper sets out responsibilities of the individual and government in financing retirement incomes, and highlights the importance of financial planning and preparation for retirement, and in particular the measures to:

– increase choice and competition in the income streams market through a potential new product called a market-linked income stream

– change the assets test exemption for complying income streams and introduce increased flexibility for people making the transition to retirement.

influencing and contributing to the ongoing policy debate on population ageing through conference papers and input to the Australian Government discussion paper Australia’s Demographic Challenges

major contribution to the development of Australian Government legislation to prohibit age discrimination

research designed to test FaCS seniors publications, which has found reaction to the publications extremely positive in all respects.

Work is required to: develop further policy responses to the effects of population ageing and long-term

demographic change, including through work with other departments

ensure that the social security means test is responsive to the effects of population ageing and the needs of working senior Australians

better promote the Pension Bonus Scheme and options that facilitate choices available to older Australians who are willing and able to continue working

further promote seniors programs that will help people better prepare for retirement, including NICRI, FIS and FaCS senior’s publications to ensure information reaches the target audience.

Financial and staffing resources summaryTable 60: Output Group 3.4—Support for the aged

Group 3.4: Support for the aged (A)Budgeta

2003-04$’000

(B)Actual2003-04$’000

Variation (column B minus column A) $’000

Budgetb

2004-05$’000

Administered Expenses (including third party outputs)

Ex gratia Exempt Scholarships that Waive or Pay Tuition Fees

160 0 -160 340

Ex gratia payment to Holocaust Survivors

76 24 -52 0

Group 3.4: Support for the aged (A)Budgeta

2003-04$’000

(B)Actual2003-04$’000

Variation (column B minus column A) $’000

Budgetb

2004-05$’000

National Information Centre on Retirement Investments

462 462 0 469

Special Appropriations

Age Pension (Social Security (Administration) Act 1999)

19 026 770 19 540 401 513 631 20 140 472

Aged Persons Savings Bonus (ANTS (Bonuses for Older Australians) Act 1999)c

0 13 13 0

Self-funded Retirees’ Supplementary Bonus (ANTS (Bonuses for Older Australians) Act 1999)

200 169 -31 0

Telephone Allowance for Commonwealth Seniors Health Card Holders (Social Security (Administration) Act 1999)

13 000 12 251 -749 13 300

Widow B Pension (Social Security (Administration) Act 1999)

27 958 26 275 -1 683 14 496

Wife Pension (Age) (Social Security (Administration) Act 1999)

193 707 194 176 469 174588

Total Administered Expenses 19 262 333 19 773 771 511 438 20 343 665

Price of Departmental Outputs

Policy Advice 6 534 6 535 1 9 197

Purchasing, Funding & Relationship Management

1 855 1 855 0 2 611

Research and Evaluation 3 195 3 196 1 4 498

Service Delivery (Centrelink) 222 482 233 935 11 453 237 973

Service Delivery (other) 1 255 1 254 -1 1 157

Revenue from Government (Appropriation) for Departmental Output Groups

235 321 246 776 11 455 255 436

FaCS Componentd 12 839 12 841 2 17 463

Centrelink Component 222 482 233 935 11 453 237 973

TOTAL FOR GROUP 3.4 19 497 654 20 020 547 522 893 20 599 101

Staffing Years (Number) 2003-04 2004-05

Group 3.4: Support for the aged (A)Budgeta

2003-04$’000

(B)Actual2003-04$’000

Variation (column B minus column A) $’000

Budgetb

2004-05$’000

FaCS (including the Social Security Appeals Tribunal)

97 87

a. Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b.Budget prior to additional estimates.

c.The aged persons’ savings bonus and the self-funded retirees’ supplementary bonus provided compensation to older Australians for A New Tax System in July 2000. Some residual claims result from the lodgement of taxation returns for the 2000-01 financial year.

d.FACS includes the Social Security Appeals Tribunal.

Performance information

Administered items

Ex gratia payments to Holocaust survivorsQuality-assuranceLegislation approving the exemption of the Holocaust payments from the social security income test became law in December 2003. Ex gratia payments were made to affected customers from 13 May 2003 until the exemption became law.

Price$0.02 million

National Information Centre on Retirement Investments (NICRI)Quality-assuranceFaCS satisfied that NICRI met terms and conditions of government funding, as specified in contract between FaCS and NICRIDuring 2003-04, NICRI:

addressed 66 retirement or Financial Information Service (FIS) seminars (51 FIS, 15 other), for which feedback was very positive

conducted training sessions for FIS officers and various community workers

distributed 177 558 information leaflets on types of investment, financial planning and preparation for retirement

responded to 4876 inquiries from the general public, financial advisers and FIS officers

maintained a web site at www.nicri.org.au, which was accessed 17 014 times.

Price$0.5 million

CommentaryFaCS is satisfied that NICRI met the terms and conditions of government funding, as specified in the contract between FaCS and NICRI for 2003-04, by providing quality technical information to the public on retirement investment and planning, and by assisting Centrelink Financial Information Service officers.

Support for the agedEffectiveness-adequacyMaximum payments to recipients-as a percentage of Male Total Average Weekly Earnings (MTAWE)The maximum basic rate and pension supplement for Age Pension, Wife Pension (Age) and Widow B Pension are indexed twice a year in line with increases in the Consumer Price Index (CPI). If, after CPI adjustment, the single maximum basic rate is less than 25 per cent of MTAWE, it is adjusted up to that benchmark, with proportional flow-on to the partnered maximum basic rate.

While indexation in line with CPI increases ensures payment rates reflect increases in prices, the MTAWE benchmark ensures pensioners share in any increases in community living standards as measured by growth in wages. The real value of pension payments has substantially increased over the last decade.

Maximum payments to recipients-index of real valueFigure 14 Maximum payments to recipients of pension—index of real value, June 1994 to June 2004

Table 61: Maximum payments to recipients of pension: index of real value, June 1994 to June 2004

Pension Type

Year

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Single Pensioner

100.0 98.1 100.0 101.2 102.4 103.3 103.0 105.0 107.2 108.9 112.1

with Rent Assistance

100.0 98.1 100.0 101.2 102.1 102.9 102.4 105.4 107.1 108.6 111.2

Pension Couple

100.0 98.1 100.0 101.2 102.5 103.4 103.1 105.1 107.3 109.0 112.2

with Rent Assistance

100.0 98.1 100.0 101.2 102.3 103.1 102.7 105.3 107.2 108.9 111.7

Increases to the single pension rate: actual increases versus alternative CPI and MTAWE adjustmentsFigure 15 Increases to single pension rate: actual increases versus alternative CPI andMTAWE adjustments, September 1997 to June 2004

Effectiveness-independencePercentage on part rate due to means testsAs at June 2004, 36.1 per cent of people receiving Age Pension, 22.4 per cent of women receiving Wife Pension (Age) and 25.0 per cent of women receiving Widow B Pension were receiving a part-rate pension.

Table 62: Income and asset value limits for full pension, as at 30 June 2004

Single $ Couple (combined) $Income free area (per fortnight)

120 212

Asset value limit for home owners (home not included)149 500 212 500

Asset value limit for non-home owners257 500 320 500

Figure 16 Proportion of Age Pension customers receiving a part-rate pension, June 1994 to June 2004

Average reduction per part-rate pensionerFor those customers receiving a reduced Age Pension, the average reduction due to the means test has increased in the last year:

$94.80 per fortnight in 2000-01

$102.35 per fortnight in 2001-02

$103.32 per fortnight in 2002-03

$105.78 per fortnight in 2003-04.

Note: The increase in the proportion of customers receiving part-rate Age Pension is due mainly to an increase in assessable income.

Percentage of income units headed by a person aged 65 years and over: with government pension as principal source of income

The Age Pension represents a large proportion of most people’s retirement income in Australia.

Australian Bureau of Statistics (ABS) figures show that the proportion of income units relying on pensions and benefits as their principal source of income where the person is aged 65 years or more fell from about 75 per cent in 1999-2000 to under 71 per cent in 2000-01:

– 74.1 per cent in 1996-97

– 73.4 per cent in 1997-98

– 74.7 per cent in 1999-2000

– 70.6 per cent in 2000-01.

with government pension contributing less than 20 per cent of income

with government pension contributing less than 50 per cent of income

ABS data for 2000-01 show the proportion of income units headed by a person aged 65 years and over where the Age Pension contributed to less than 50 per cent of income as follows:

– Age Pension: 50 per cent of income — 29.3 per cent of income units

– Age Pension: 20 per cent of income—17.8 per cent of income units

– Age Pension: 1 per cent of income — 11.6 per cent of income units.

Average amount of assessed incomeAt June 2004, 95 per cent of persons receiving Age Pension, 94 per cent of women receiving Wife Pension (Age) and 79 per cent of women receiving Widow B Pension had assessed private income from sources other than their pension. Across all payment types included in Table 63, assessed income made up, on average, 25 per cent of total income (including pension).

Table 63: Percentage of customers of Age Pension, Wife Pension (Age) and Widow B Pension with assessable income (%) and their average assessed income ($), 2001–02 to 2003–04

2001-02 2002-03 2003-04

$ Per cent $ Per cent $ Per centSingle age pensioners

2811 91.8 2932 91.8 3374 92.3

Partnered age pensioners3336 97.8 3458 97.8 3838 98.0

Wife pensioners (Age)2200 94.4 2266 94.4 2122 94.4

Widow B Pensioners2541 80.7 2928 80.7 3206 79.3

In June 2004, 94 per cent of people receiving Age Pension had income from their own savings, with the annual average being $1348. The proportion of Age Pension customers receiving income from superannuation was 14 per cent. The annual average income from superannuation rose from $6153 in June 2003 to $6266 in June 2004.

Percentage of age pensioners with assessed income greater than $500 per annumProportion of people receiving Age Pension who had assessed income exceeding $500 per year:

66.2 per cent in 2000-01

62.9 per cent in 2001-02

63.7 per cent in 2002-03

67.5 per cent in 2003-04.

Ratio of assessed income to total income

Ratio of assessed income to total income (including pension): $25.90 of assessed income to every $100 of total income in 2000-01

$24.00 of assessed income to every $100 of total income in 2001-02

$24.10 of assessed income to every $100 of total income in 2002-03

$25.50 of assessed income to every $100 of total income in 2003-04.

Effectiveness-take-up/coveragePercentage of estimated aged population who are customersABS estimates the Australian population over qualifying age for Age Pension at 2 817 120 persons in June 2004. At this time, around 67 per cent, or 1 876 250 persons, received Age Pension. In addition, around 299 416 people over Age Pension age received a similar means-tested income support payment from the Department of Veterans’ Affairs (DVA), bringing total government pension take-up for this group to 77 per cent.

Figure 17: Take-up of Age Pension, June 1994 to June 2004

Quality—access and choiceAccess for target or special interest groupsWomen have a longer life expectancy and lower qualifying age for Age Pension than men. Subsequently, women comprise the greater proportion of people receiving Age Pension (59.4 per cent in June 2004). Women receiving Age Pension are less likely than men to have accumulated income and assets to provide for retirement and consequently have to spread their wealth over a

longer retirement period. As a result, 65.5 per cent of women receiving Age Pension receive the full-rate compared with 61.6 per cent of men.

Almost 45 per cent of Age Pension customers are single and tend to be older than partnered pensioners. More single pensioners receive a full-rate pension than are partnered pensioners (70.2 per cent compared with 58.9 per cent). An increasing proportion of people receiving Age Pension are born overseas. In June 2004, 38.5 per cent of Age Pension customers assisted by Centrelink were born overseas.

Figure 18 Percentage of Age Pension customers born overseas, June 1994 to June 2004

QuantityNumber customers assisted

Number of people assisted by Centrelink at June 2004:

1 869 612 people paid Age Pension

19 646 women paid Wife Pension (Age)

1879 women paid Widow B Pension.

In addition, the Department of Veterans’ Affairs paid Age Pension to 6638 people and Wife Pension (Age) to 82 people.

Number of customers paid Rent AssistanceIn June 2004, based on the number of people assisted by Centrelink:

10.4 per cent (194 427) of Age Pension customers were paid Rent Assistance

8.2 per cent (1604) of Wife Pension (Age) customers were paid Rent Assistance

8.7 per cent (164) of Widow B Pension customers were paid Rent Assistance.

Number of customers paid under international agreements Average value of paymentsIn June 2004, 28 325 Age Pensions were paid under agreements (excluding new Zealand and the United Kingdom), averaging $3875 per year per customer. In addition, 7430 Age Pensions were paid under the agreement with New Zealand at an average of $7834 per year per customer, and 1177 Age Pensions were paid under the agreement with the United Kingdom, averaging $5108 per year per customer.

In June 2004, 437 Wife (Age) Pensions were paid under agreements (excluding New Zealand and the United Kingdom), averaging $4120 per year per customer. In addition, 11 Wife (Age) Pensions were paid under the agreement with New Zealand at an average of $9360 per year per customer, and one was paid under the agreement with the United Kingdom, at a cost of $4394 in 2003-04.

In June 2004, 308 Widow B Pensions were paid under agreements (excluding New Zealand and the United Kingdom), averaging $5426 per year per customer. In addition, four Widow B Pensions were paid under the agreement with New Zealand at an average of $11 395 per year per customer.

Number of Commonwealth Seniors Health Card holders-287 326

Number of Pension Bonus Scheme registrationsIn June 2004, among those over Age Pension age who were working, 33 per cent received Age Pension while they worked and another 17 per cent were registered in the Pension Bonus Scheme. On 30 June 2004, 67 975 people had registered in the scheme. In 2003-04 a total of $83 876 551 was paid in bonuses to 7407 people.

Price$19.5 billion-Age Pension including (Deferred Age) Pension Bonus Scheme

$26.3 million-Widow B Pension

$194.2 million-Wife Pension (Age).

Telephone Allowance to Commonwealth Seniors Health Card holdersEffectiveness-take Up/coveragePercentage of eligible Commonwealth Seniors Health Card holders receiving Telephone Allowance-88 per cent

QuantityNumber of Commonwealth Seniors Health Card holders receiving Telephone Allowance— 252 127

Price$12.3 million

Departmental outputs

CostRatio of departmental expense to administered expensesFor every dollar spent on administered items under Output Group 3.4, 1.3 cents were spent on departmental outputs.

Policy adviceQuality-customer satisfactionMinisters and ministers’ offices are satisfied with the quality of policy advice and FaCS meets standards for policy adviceMinisters and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.

QuantityNumber of items to ministers255 ministerial submissions and other written briefings or advice prepared; 1458 ministerial replies to correspondence completed.

Price$6.5 million

Purchasing, funding and relationship managementQuality-assuranceService agreements or contracts that meet legislative, government policy and departmental requirements in place with all service providers-100 per cent

Service providers meet terms and conditions of fundingFaCS ensures that service providers meet terms and conditions of funding.

QuantityNumber of contracts or service agreements under management-4

Number of service providers under management-4

Price$1.9 million

Research and evaluationQuality-assuranceResearch and evaluation is of a high standard (timely, fulfills terms of reference, complete, methodologically sound) and contributes to policy understanding and development100 per cent

QuantityMajor pieces of research and evaluation completed—1

Price$3.2 million

Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCSFinancial Information ServiceCentrelink delivers the Financial Information Service (FIS). The service aims to encourage and assist people to maintain or improve their standard of living by planning effectively for their retirement and maximising their retirement income.

There are 141 FIS officers throughout Australia (122 full-time and 19 part-time). Between July 2003 and June 2004, FIS officers conducted 210 208 calls and 77 041 interviews. Over the same period 78 574 people attended FIS seminars. The seminars are increasingly focused on assisting and encouraging pre-retirees to commence planning for retirement.

Quality—customer rights and obligationsControl of incorrect payment and fraud: savings in administered items arising from compliance activitiesReview mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.

In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that 424 604 Age Pension, Wife Pension (Age) and Widow B Pension reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $3 614 036, and upward variations resulted in fortnightly increases of $876 122. It is estimated that debts totalled $39 606 267. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.

Percentage of reviews and appeals relating to the Age Pension where the original decision is changedTable 64: Reviews and appeals—Output Group 3.4, 2003–04

Payment type

Authorised Review Officers

Social Security Appeals Tribunal

Administrative Appeals Tribunal

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Reviews finalised

Percentage changed

Age Pension 3429 38 1075 38 275 15

Wife Pension (Age) 68 38 27 33 5 0

Widow B Pension 42 24 13 15 0 0Price$233.9 million — Centrelink

$1.3 million—other

Part 2 I Management and accountabilityCorporate governance and performanceFaCS includes the Child Support Agency (CSA) which, as a semi-autonomous entity within the department, has distinct governance arrangements that recognise the specialist nature of its business in comparison with the rest of FaCS. Where applicable, these distinct governance and management arrangements are highlighted in this report.

Boards and committees

FaCS Executive BoardThe Executive Board is an important forum for collegiate senior leadership in FaCS; it also assists the Secretary in the exercise of his responsibilities. The board is supported by a set of committees that are established in line with Australian National Audit Office (ANAO) guidelines on good practice for governance arrangements in Australian Public Service (APS) agencies.

The FaCS Executive Board consists of the Secretary (chair); both deputy secretaries; the Chief Financial Officer; all executive directors; the General Manager, Child Support Agency; the senior state and territory office manager; the Assistant Secretary, People Branch; another branch head on a rotating basis; and a senior representative of Centrelink.

The board met 12 times during the year. Meetings usually followed a set agenda that focused on:

strategic priorities

strategic risks

management of major projects and the department’s finances

human resources issues

performance reporting.

From time to time meetings were devoted wholly or largely to threshold issues for the department such as developing a greater whole-of-business approach in both the state and territory office network and National Office.

Board committeesThe following committees underpin the work of the board:

The Business Planning and Resource Allocation Committee (BARAC) continued for most of the year to be the main group responsible for guiding business planning and determining and monitoring resource allocation and expenditure. From April 2004, the Executive Budget Committee (EBC) worked in parallel with BARAC until assuming responsibility as the primary body for business planning and resource allocation in FaCS.

The Knowledge Committee continued its program of setting the agenda for, and monitoring key strategies associated with knowledge management in FaCS. The committee has built on its previous information technology work to focus more on networking and information sharing. The importance of research in FaCS was formalised with the establishment of a Research Committee in its own right, run jointly with the Knowledge Committee.

The Information and Communication Technology Committee facilitates information and communication technology (ICT) support for FaCS business activities. It does this by coordinating strategic directions and technical architecture standards for ICT investments while fostering a business-centred ICT asset management culture within the department. Significantly, the year saw the introduction of the 2004-07 ICT Strategic Plan.

During the year the People Committee oversaw a range of projects aimed at strengthening the diversity, capability and wellbeing of FaCS employees. These included establishing a Diversity Council, producing a capability development framework and introducing the Compass program, an entry-level recruitment scheme aimed at both graduates and trainees and including some internal staff. Recruiting, developing and retaining Indigenous staff, succession planning, and the role of mature-aged workers were also key areas of focus for the committee.

The Network Management Group (NMG) manages the state and territory office network. Its responsibilities include: setting the strategic directions for the state and territory office network within the context of FaCS’ business priorities; making decisions in relation to the direction, operation and resourcing of the network; and managing the network’s input into the policy development and implementation process. The group’s members include the Executive Director-Alliance and Delivery Frameworks and each of the state and territory office managers.

Committees reporting to the SecretaryThree committees report directly to the Secretary:

The Portfolio Policy Committee is charged with ensuring that the portfolio produces a focused and coherent set of Budget measures by establishing and identifying high-priority areas of focus that enhance the portfolio’s strategic direction.

The Risk Assessment and Audit Committee (RAAC) aims to ensure the department’s approach to the implementation of its control framework is effective. It also provides assurance to the Secretary on the preparation and review of the annual financial statements. During the year the RAAC took a particular interest in the management of risk in FaCS, and increased its focus on the resolution of audit recommendations.

The Protective Security Committee aims to ensure that the department’s Security Action Plan is relevant, implemented and monitored effectively. It provides advice regarding changes in protective security policy, procedures and standards as appropriate.

Figure 19: FaCS committee structure

Senior management

FaCS—senior managementTwo deputy secretaries, Wayne Jackson and Stephen Hunter, assist the Secretary in managing FaCS. Stephen Hunter transferred to FaCS from the Department of the Environment and Heritage on 1 July 2003.

Wayne Jackson worked with the following executive directors:

David Kalisch — Family and Children

Robert Knapp—Strategic Framework and Ageing

Serena Wilson—Welfare Reform

Peta Winzar—Economic and Social Participation (apart from disability payments and services)

Cate McKenzie—Alliance and Delivery Frameworks.

Stephen Hunter worked with the following executive directors:

Glenys Beauchamp—Community Development and Support

Peta Winzar—Disability Payments and Services (part of the Economic and Social Participation cluster)

Virginia Mudie — People, Business Improvement and Support

Serena Wilson — Ministerial and Communications (part of Welfare Reform cluster).

The Chief Financial Officer and the General Manager of the Child Support Agency report directly to the Secretary.

Executive directors are responsible for achieving nominated strategic outcomes. They are responsible for the systemic management of ‘cluster’ outputs and making sure that branches work together to achieve policy interests. Branch outputs support outcome achievements, and clustering of branches around outcomes reflects this. Assistant secretaries and state and territory office managers are responsible for managing their respective branches or offices and delivering particular outputs, including programs and services.

CSA—senior managementFigure 20: Child Support Agency top organisational structure

Integrated governance

FaCS—strategy and planningDuring 2003-04 FaCS continued to be guided by its Strategic Statement 2002-05. The statement was reviewed through the FaCS Priorities Plan, an annual reassessment that allows flexibility and responsiveness to the changing environment while maintaining the vision inherent in the longer-range statement. The priorities for FaCS continued to be:

investing in children and strengthening families

participation

implementation and service delivery

financial integrity

people

knowledge.

Guided by these priorities, and working in a cohesive and collegiate fashion, the FaCS Executive Board and committees, including the Network Management Group, planned and implemented a number of significant changes in response to emerging needs.

These included a departmental restructure that formally took effect from 1 July 2004. It places greater emphasis on the Participation and Family and Children’s agendas through the formation of a Participation group and a Family and Children group.

The restructure also has the People function reporting directly to a deputy secretary.

Other major planning initiatives, all of which aimed to enhance governance principles and processes, included:

formation of an Executive Budget Committee (EBC), which replaced the Business Planning and Resource Allocation Committee. The committee guides internal resource allocations and this year introduced a revised approach to business planning that focuses on a cluster level—that is, an organisational element managed by executive directors—rather than previous planning at branch level.

greater emphasis on the management of strategic risks

a range of state and territory office initiatives aimed at greater business integration, and a focus on site-based service.

Child Support Agency—strategy and planningCSA’s annual Business Plan clearly links its business priorities to FaCS’ strategic statement and priorities. The CSA works closely with FaCS, particularly with branches within the Family and Children cluster of the department. The CSA draws on its experience with parents and knowledge of community interests to contribute to FaCS’ policy development and consideration of implementation issues.

During the past year CSA has enhanced its business management systems, which include frameworks to guide parents, resource and project management and to promote quality and innovation. This integrated system contributes to comprehensive and consistent corporate governance throughout the CSA.

Internal audit

FaCS—internal auditFaCS finalised 12 internal audits in 2003-04 and commenced seven more from the audit work plan as originally approved by the Risk Assessment and Audit Committee (RAAC). Several planned audits were cancelled or delayed due to a variety of circumstances; these were replaced with three other audits approved by RAAC as amendments to the work plan. Ernst & Young was the primary provider of FaCS’ internal audit function; the secondary provider, KPMG, was not called upon to undertake any audit work this year.

Work on the following audits was completed during 2003-04:

IMPACT upgrade — quality and system control assurance audit

review of ministerial correspondence

follow-up audit of grant funding for child care services within the Stronger Families and Communities Strategy

management of payroll, leave, flextime and entitlements

audit on FaCS core data integrity and security

spot check on leave—follow-up review (stage 3)

spot check on leave—comparison and analysis of results

FaCS-Centrelink relationship

customer services in the Child Support Agency

regulatory compliance and business processes (second quarterly review)

regulatory compliance and business processes (third quarterly review)

accessing customer records on Centrelink systems.

Work on the following seven audits commenced:

Australians Working Together

FaCS Online Funding Management System

integrity and reliability of management information

FaCS external stakeholder relationships

IMPACT

FaCS corporate governance and accountability arrangements

further spot audit on leave.

The three audits added, and now under way, were:

management of disability programs

integrity of calculation of program payments developed by end users

Emergency Relief Program.

Other major activities included:

monitoring the implementation of recommendations from audits by the ANAO and the Joint Committee of Public Accounts and Audit (JCPAA) and from FaCS internal audits

monitoring the findings and recommendations from audit activity undertaken by Centrelink where such recommendations have an impact on FaCS’ program areas and the delivery of services

continued enhancements to the audit monitoring database to improve the process for following up progress on implementing audit recommendations and for reporting to the RAAC.

In general, recent audit findings have indicated that the department’s processes continue to improve and adequate controls are in place to ensure the mitigation of risk.

Child Support Agency-internal auditFollowing through on recommendations in a previous ANAO report, audits finalised through the FaCS internal audit program examined CSA regulatory compliance, business processes and parent services.

To complement the departmental internal audit plan, CSA undertakes a planned series of quality audits. Audits performed this year covered Objections, the Tax Refund Interception Process, Reason 8 in the Change of Assessment process, Estimates, Coaching, Complaints and the Advancement process.

Risk management

FaCS-risk managementUnder the overall direction of the FaCS Executive Board, FaCS continued to implement an integrated risk management framework. Risk assessment at cluster level was integrated with the new cluster-level planning process to provide better linkages between risk management at the strategic (departmental) and operational (branch) levels. In September 2003, the department conducted a successful simulation exercise to test its business continuity and disaster recovery plans.

Child Support Agency-risk managementThis year CSA continued to work towards integrating risk identification and management into all aspects of CSA’s business. The methodology used is sufficiently robust to withstand the changes

facing the CSA as it disengages from corporate and systems managed through the Tax Office. In particular, CSA continued its focus on:

delivering risk assessment and risk management training, fully aligned with the FaCS risk management framework

establishing business continuity contingencies for information technology (IT) and telephony systems

monitoring the security level of risk for all new and existing CSA accommodation.

Protective security

FaCS—protective securityFaCS has committed resources to strengthen and maintain areas of the department’s protective security framework. Particular emphasis has been given to increasing staff security awareness and training and ensuring that staff are appropriately cleared to access classified information. The 2003-04 security risk assessment of all FaCS sites will inform the development of a revised security action plan for the department.

FaCS has integrated the IT security function within the department’s protective security function for a more holistic approach to security that will achieve greater compliance with the Commonwealth Protective Security Manual 2000.

In 2003-04 FaCS had seven significant security incidents that are being dealt with by one formal investigation within FaCS.

Child Support Agency-protective securityCSA has a comprehensive security framework and reporting system. CSA has increased the security awareness of staff by conducting face-to-face training in conjunction with the recently implemented e-learning training package on security fraud and privacy.

Strong liaison points have been established between CSA and police authorities to help streamline the reporting of security incidents requiring police input.

Financial management

Asset managementIn 2003-04, FaCS conducted a revaluation of its leasehold improvements. This resulted in an increase in value of approximately $7 million. FaCS also carried out a stocktake of both IT and non-IT assets. The stocktake led to a refinement of FaCS asset management processes.

PurchasingThe department’s purchasing activities are consistent with the department’s Chief Executive Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Guidelines.

Summary of consultancy services contractsDuring 2003-04 the department (including the Child Support Agency (CSA) and the Social Security Appeals Tribunal (SSAT)) awarded 249 consultancy services contracts (Table 65). A summary of consultancy services expenditure is set out below in Table 66.

Table 65: FaCS (including CSA and SSAT)—number of consultancy services contracts let, 2003-04

Department/Agency less than $10 000 $10 000 or more Total

FaCS 14 147 161

CSA 63 8 71

SSAT8 5 13

Total 85 160 245Note: See Table 90 in Appendix 5 for details of new consultancies let to the value of $10 000 or more during 2003-04.

Table 66: FaCS (including CSA and SSAT)—total consultancy services expenditure, 2003-04

FaCS$16 653 617

CSA$2 948 975

SSAT$217 388

Total $19 819 980Note: The total expenditure for consultancy services in 2003-04 includes expenditure relating to consultancy services contracts let prior to 2003-04 and consultancies less than $10 000 in value.

Project managementThe department has been working to increase project management maturity and project management knowledge through its Project Management Integration Office (PMIO). The PMIO has seen a marked increase in activities during 2003-04, primarily achieved through education and increased reporting using project management tools.

Project management education has been increased through a series of education sessions provided to National Office and state and territory offices. Ongoing education packages are offered to all FaCS staff. Project facilitation and one-on-one education are also ongoing.

The first series of project management reporting for department-wide major projects such as strategic investment and new policy projects has concluded. In total, 80 projects have used project management processes and tools to plan, manage and report on the progress of their projects to the Executive. FaCS is also working closely with the Department of the Prime Minister and Cabinet and other APS agencies to implement project management processes and methodologies in major government initiatives.

A second benchmarking exercise is being conducted to analyse FaCS project management maturity and to determine how project management could better support FaCS projects. This process allows FaCS to benchmark itself against other APS agencies as well as a range of industries in the private sector.

Harm Prevention Charities RegisterThe Harm Prevention Charities Register (HPCR) was introduced on 1 July 2003 in response to the Report on the Inquiry into the Definition of Charities and Related Organisations. The HPCR is a category of Deductible Gift Register for institutions whose principal activities are to promote the prevention and control of harmful and abusive behaviour among humans.

The department assessed 13 applications for the HPCR during 2003-04. All applications were assessed against HPCR eligibility criteria. Eligible applications were then submitted to the Minister for Family and Community Services and the Minister for Revenue and Assistant Treasurer for their consideration. There are currently two institutions listed on the HPCR.

Child Support Agency-significant financial eventsThe 2003-04 year was the last of a four-year funding agreement between CSA and the Department of Finance and Administration. The agreement funded CSA based on the number of cases it handled and provided a strong basis for financial planning. It is based on CSA’s output pricing model and has resulted in a pricing efficiency of 3 per cent per year. This meant that CSA services were delivered to a larger parent group at a lower price, indicating significant productivity improvements.

Such productivity improvements reflect the success of CSA’s strategy of increasing voluntary compliance by encouraging parents, where feasible, to manage their child support payments with minimal intervention. Achievements are measured by the proportion of ‘private collect cases’ compared with ‘agency collect cases’ and with the overall collection rate. The agreed target for private collection was 50 per cent by 30 June 2003. CSA exceeded this target by achieving a private collect rate of 50.6 per cent by 30 June 2003 and 51.8 per cent by 30 June 2004. An overall collection rate exceeding 95 per cent further reflects the success of emphasising voluntary compliance.

The CSA has negotiated a new funding agreement to cover the period 1 July 2004 to 30 June 2008. This agreement provides funding to enable CSA to maintain its assistance to parents in meeting their responsibilities. The agreement requires further productivity gains at 1 per cent per annum with provisions for an expected average annual growth of 4.2 per cent in the number of cases to be handled and for an increasing number of complex cases such as non-wage and salary earners, non-lodgers of tax returns and nonresidents of Australia.

Competitive tendering and contractingCSA adheres to the Australian Government’s policy in seeking value for money in service delivery. CSA’s strategy of sourcing services considers both internal and external service providers. CSA is considering alternative service options for delivery of the information technology and corporate services that have been previously provided by or through the Tax Office.

Office accommodationCSA continues to rationalise its office accommodation. In 2003-04 CSA relocated three offices — in Hobart, Newcastle, and Melbourne—from sites co-located with the Tax Office to sites leased by the CSA. In Melbourne, the CSA Moonee Ponds office and a large portion of the CSA Box Hill office moved to a new site in the Melbourne central business district; the remaining staff at Box Hill will relocate into the Melbourne CBD site toward the end of the 2004-05 financial year. This brings to seven the total number of sites leased by CSA, or approximately half of all CSA offices. These moves will realise ongoing annual savings in excess of $1 million in property operating expenses. As part of the Tax Office-CSA disengagement program, CSA will continue to relocate or secure space under CSA leases when opportunities, needs and circumstances allow.

Fraud control

FaCS—fraud controlIn addition to the fraud control measures outlined in ‘Right payments to the right people’ in this volume, FaCS continues to address internal and external fraud through its formal Fraud Control Action Plan. In 2003-04 Ernst & Young commenced a new fraud risk assessment that will inform the development of the department’s new Fraud Control Action Plan 2005-08.

Certification of the departmental fraud control arrangements follows.

DEPARTMENT OF FAMILY AND COMMUNITY SERVICES CERTIFICATION OF DEPARTMENTAL FRAUD CONTROL ARRANGEMENTS

I, Mark Sullivan, certify that I am satisfied that, for the financial year 2003-04, the Department of Family & Community Services, which includes the Child Support Agency (CSA), has had:

appropriate fraud risk assessments and fraud control plans in place that comply with the Commonwealth Fraud Control Guidelines;

appropriate fraud prevention, detection, investigation and reporting procedures and processes in place; and

annual fraud data has been collected and reported that complies with the Commonwealth Fraud Control Guidelines.

Mark Sullivan

Secretary

July 2004

Management of ethical standards

FaCS—management of ethical standardsThe FaCS Strategic Statement 2002-05 includes an ethics statement that sets out the behaviours staff should adopt in dealings with our ministers, partners, the people of Australia and our colleagues.

FaCS ensures that staff observe the Australian Public Service Code of Conduct and it takes appropriate action if it is determined that a breach has occurred. FaCS staff are aware that breaches of the code will be taken seriously and may result in disciplinary action.

Staff commencing in FaCS are provided with the Australian Public Service Code of Conduct and the APS Values. The orientation and graduate training programs include information on ethics and values.

The FaCS ethics statement, Australian Public Service Code of Conduct and the APS Values are available to all staff through the department’s intranet.

Six investigations were completed to determine whether a breach of the code had occurred. Of these cases four investigations found that a breach had occurred and action was taken against the officers concerned.

Results of investigations All investigations resulted in a recommendation of counselling and additional training.

Two investigations resulted in a transfer to alternative duties.

Causes of breaches of the code:

two breaches arising from inappropriate use of Australian Government resources

two breaches arising from inappropriate behaviour.

Child Support Agency—management of ethical standardsAll CSA staff undertake training in recognising and preventing fraud in the workplace. Online training for staff relating to fraud awareness and prevention has been developed.

All CSA staff are also provided with the Australian Public Service Code of Conduct on commencement, and the values of this code, together with CSA core values, are built into the entry-level training program.

Service charters

FaCS—service charter and performanceThe FaCS service charter sets out the standard of service that people who deal with FaCS can expect and the ways in which they can help FaCS improve service to its customers. The charter also helps FaCS staff develop a better understanding of their roles and responsibilities. An internal review of the

service charter was undertaken in 2002-03 by consulting with FaCS staff and branch service charter coordinators as well as with service charter officers from Centrelink, the CSA and the Tax Office. A revised charter, based on feedback, was published in December 2003.

FaCS’ complaints recording systemFaCS has a complaints mechanism, linked to its service charter, incorporating the FaCS complaints recording system, established complaints ‘protocols and procedures’ and a network of complaints coordinators. It provides an effective means of capturing complaints, dealing with them in a consistent and timely manner and identifying systemic issues that require remedial action.

FaCS received 155 complaints in 2003-04. Of these, 137 complaints were resolved and 18 are being actioned.

Table 67: Complaints recorded, 2003–04

Category TotalFaCS

business processes

FaCS service

standards PolicyProgram design

Service provider

No category

Received Finalised

2 33 18 7 90 5 153 137Child Support Agency-Client Charter and performanceThe client charter outlines CSA’s commitment to quality service. It explains CSA’s responsibilities towards parents and parent responsibilities towards CSA together with information about customer contact channels. The supporting charter package provides further information about the values and staff behaviours that enable CSA to meet its client charter commitments.

CSA reviewed the client charter and supporting package extensively to ensure they continue to meet parent and stakeholder expectations. In addition, CSA introduced a leading-edge evaluation system to measure parents’ perceptions of how well CSA is meeting its service commitments.

Child Support Agency’s complaints serviceCSA’s complaints service continues to be an effective mechanism for resolving parents’ concerns. The complaints process is linked to CSA’s client charter. It ensures that individual complaints are addressed responsively, while trends and emerging issues are identified and fed back in to business improvement processes. As well as complaints received directly from parents, CSA also managed complaints escalated by the Commonwealth Ombudsman, Members of Parliament and the Office of the Federal Privacy Commissioner. In 2003-04 the number of complaints received from all sources decreased slightly while the caseloads grew. This is a pleasing result.

Enabling our peopleFaCS and its agency, the Child Support Agency (CSA), recognise that their people are their key resource. FaCS supports its people in achieving FaCS outcomes with initiatives that address capability, diversity and health.

Certified and workplace agreements

FaCS—certified agreementThe third and final pay increase under the FaCS Certified Agreement 2002-05 was paid on 1 April 2004 after the parties to the agreement noted that sufficient progress had been made against performance improvement milestones regarding the completion of individual performance agreements, the implementation of an organisational performance measurement framework and the development of revised work level standards for FaCS job classifications.

The current agreement nominally expires in May 2005. The agreement provides that the department will commence consultation with FaCS employees and their representatives, including the unions, about a subsequent agreement by November 2004.

Child Support Agency—agency agreementThe Child Support Agency (General Employees) Agreement has a nominal expiry date of 15 December 2004. Negotiations are currently being held on the subsequent agreement, which is expected to be completed prior to the expiration of the current agreement.

AdvancementCSA’s Advancement model continued to improve organisational capability. The introduction of a robust performance management tool has resulted in improved feedback to staff, effective performance management processes and improved staff satisfaction. The performance management framework is being reviewed to confirm effectiveness and identify opportunities for improvement.

CSA has recently identified five key priorities to address to maintain continuous improvement of the Advancement process. Over the coming year the focus will be on implementing strategies that further streamline the Advancement process and improve the management tools used to complement advancement and performance management within CSA. The streamlined process will align with CSA business needs and APS merit principles and will operate within the CSA Advancement framework in conjunction with the principles agreed to in the agency agreement.

SES remunerationAll FaCS senior executive service (SES) staff have Australian workplace agreements (AWAs) in place.

FaCS’ executive remuneration policy provides for an annual review of SES salaries taking account of the Australian Public Service SES Remuneration Survey published each year.

FaCS executive remuneration and performance pay are set out in Volume two, Part four, ‘Financial statements’.

Australian workplace agreementsFaCS (including CSA) offers AWAs to all SES staff and key non-SES staff. These agreements provide flexible or specially tailored remuneration and conditions. AWAs also are used to recruit or retain specialist staff and/or to recognise particular expertise, additional work responsibility and complexity, or especially valuable individual contributions to FaCS outcomes.

See Volume two, Part three, ‘Appendix 1’ for more information on AWAs.

Capability development

FaCS—capability developmentStrategic capability development frameworkFaCS is seeking to take a more strategic approach to developing capability, including establishing a greater match between individual requirements and FaCS’ capability needs.

FaCS has developed a capability development framework that identifies and addresses both organisational and individual capability needs, including leadership and priority skills. The aim of the framework is to ensure that the development needs of staff at all levels are addressed, with a particular emphasis on strategic organisational capabilities.

By defining capability requirements it is anticipated that development activities in future will reflect a greater focus on the strategic needs of the organisation.

Development programsFaCS continues to support training for staff and managers, with a focus on identified workforce capability and skills gaps. Learning activities in 2003-04 covered the following themes:

senior executive development—using strategic planning processes and individual coaching

leadership development—including residential workshops and peer coaching

financial management

contract management

partnering and relationship management

policy development and writing

project management.

As part of its approach to identifying and strengthening leadership potential, FaCS also participated in the following external development programs:

Australian and New Zealand School of Government (ANZSOG): Executive Fellows Program and Executive Master in Public Administration

Australian Public Service Commission (APSC): Career Development Assessment Centres (CDACs).

Child Support Agency-capability developmentLeadershipCSA recognises the importance of having strong, skilled leaders in the organisation. As a follow-on from the success of the CSA leadership conference held in May 2003, a CSA business focus has been on increasing leadership capability at the operational, stream and strategic levels. Key initiatives included:

conducting stream leadership forums to assist in the ongoing development of the strategic operational management capacity of CSA’s leadership network

recruiting 18 graduates to join nine current staff in participating in a graduate leadership program, including undertaking a CSA-tailored Graduate Certificate in Public Administration through the University of Canberra.

Business coaching

The CSA national business coaching model was implemented in May 2003, as part of the improvement process for the coaching model that was originally developed in 1999. The four key messages of business coaching are to:

improve organisational capability by ensuring coaches are trained, and accountable for developing staff skills

align coaching with business priorities

establish a sustainable infrastructure to support coaching

provide tools to support coaches and a commitment to continuous improvement of products and resources.

A recent audit indicates that 74 per cent of staff that participated in the audit are satisfied with the level of coaching they receive and that staff are happy with the change from reactive coaching to pro-active coaching.

Corporate healthCSA’s corporate health survey is designed to measure organisational values and associated culture, aspects of communication and perception of quality of service by staff.

The most recent corporate health index was established in December 2003. Issues rated comparatively highly are those relating to strategic direction, role clarity, focus on customers, immediate supervisor, teamwork, job security, job satisfaction, and job and personal growth. Issues relating to procedural justice, cross-stream cooperation, change management and resources necessary to do the job are focus areas for improvement.

Rewards and recognitionThe CSA rewards and recognition program provides a way for CSA to acknowledge the valuable contributions of its people to business objectives and values. Every three months one individual or team in each CSA site is recognised for their input to the business. A national award is given annually to the top nomination(s) from the site winners.

At the 2004 Rewards and Recognition-General Manager’s Awards, winners were presented with their awards by the Hon Christopher Pyne, MP, Parliamentary Secretary to the Minister for Family and Community Services. The awards were made for Innovation, Excellence in Change Leadership, Client Service, Commitment to Purpose and Service to the Community.

National Consultative ForumThe National Consultative Forum is a formal channel for consultation within CSA. The forum has been in place for several years and continues to provide valuable input into a wide range of initiatives, including current negotiations for a new agency agreement. The forum consists of management representatives and representatives elected by staff.

Diversity

FaCS-workplace diversityFaCS has continued its commitment to workplace diversity this financial year by undertaking initiatives directed at mature-age and Indigenous employees as well as establishing a diversity council to monitor our effectiveness and promote activity in providing a safe, equitable, accessible and inclusive work environment.

In December 2003 the inaugural FaCS Diversity Council was convened. The council, which meets quarterly, is chaired by the Secretary; its members represent a range of FaCS employees and diversity networks. The council has begun identifying issues and priorities to be addressed in the next Diversity Plan by conducting a FaCS-wide diversity survey.

Our Mature Workers Strategy was launched in March 2004. It contains activities to support a greater number of career and life style choices for those beginning to consider retirement, including strategies for transferring knowledge, mentoring and encouraging employment beyond an age at which people may otherwise have chosen to retire.

FaCS addressed Commitment 7 of our Statement of Commitment to Aboriginal and Torres Strait Islander People by developing and launching our Indigenous Recruitment and Retention Strategy in July 2003. Activity to implement this strategy is ongoing.

Staff with disabilitiesIn early 2003, FaCS proposed a whole-of-government project to explore how information and communication technology (ICT) investment and usage can be better used to support flexible work practices across the APS. Subsequently, two new better practice checklists: the first on assistive technology for employees of the Australian Government, and another on the ICT to support for telework (work conducted outside the controlled office environment) were developed.

FaCS’ Disability Stakeholder Group (DSG) met in May 2004 to assist People Branch to plan for recruitment and retention of staff with disabilities. The strategy that was developed will be incorporated into the new FaCS Diversity Plan and will include a Reasonable Adjustment Policy.

Child Support Agency-workplace diversityThe CSA Workplace Diversity Plan was developed in 2002-03. The plan consists of overarching principles and strategies that guide relevant events, activities and day-to-day operations. The ‘diversity wheel’ provides a ready-reference tool for staff to reinforce their awareness of their diversity responsibilities.

The diversity plan will be re-evaluated in 2004 with a view to developing a new plan for 2004-05.

Occupational health and safety

FaCS-occupational health and safetyFaCS has an occupational health and safety (OHS) policy, agreement and infrastructure that ensure cooperative consultation with FaCS employees about health and safety matters. FaCS’ National Office develops national work environment policies, coordinates the delivery of nationally consistent work environment policies and delivers work environment services to National Office staff. In each state or territory office, the human resources or business services manager is responsible for delivery of work environment services and national policies, local policy development and local compensation management.

FaCS incident reportsThere were nine OHS incidents and these resulted in incapacity of 30 or more days.

Child Support Agency-occupational health and safetyCSA has developed an OHS operational plan for the next two years. The plan is designed to underpin a safe and healthy CSA workplace in which managers and employees recognise and acknowledge their respective roles and responsibilities for occupational health and safety. Occupational health and safety is recognised as an integral component of management systems and daily work practices, and CSA performance and outcomes of occupational health and safety achieve a standard of best practice.

Key result areas of the operational plan are based on the National Occupational Health and Safety Commission (NOHSC) strategy 2002-12:

prevention of injury and disease in the workplace

effective management of injured employees

improved OHS performance leading to reduced premium costs.

The OHS operational plan will be the basis for reporting to the CSA National Occupational Health and Safety Committee, which acts as the primary advisory body for OHS and meets quarterly.

CSA incident reportsDuring 2003-04 CSA reported four notifiable occurrences.

This is an increase of one from the previous year. There were no provisional improvement notices or improvement notices received, a decrease of one in each category from last year.

Internal communication

FaCS—internal communicationStaff can draw on a range of internal communication media and mechanisms for information on current FaCS activities, policies and programs and changes to organisational processes, systems and procedures affecting business. Internal communication vehicles include a weekly all-staff electronic newsletter and quarterly hard-copy magazine, targeted topic-specific newsletters and fact sheets, an intranet, and seminars and presentations.

Major issues communicated to staff this year included:

the launch of the first FaCS triple bottom line report in October 2003 and associated changes to business operations throughout 2004

the new Stronger Families and Communities Strategy

the restructure of the department

the transfer of functions to FaCS from the Aboriginal and Torres Strait Islander Commission (ATSIC) and Aboriginal and Torres Strait Islander Services (ATSIS)

the launch of the FaCS Mature Workers Strategy.

Child Support Agency—internal communicationCSA has a strong internal communication program, which has achieved awards for excellence on a number of occasions. Key internal communication vehicles include:

regional newsletters

a monthly national newsletter (available in both hard copy and electronic format)

communication representatives in each CSA site

C3—the CSA intranet site

‘The Guide’ — an online legal resource to help staff make decisions on child support cases that is also available for parents on the CSA web site

the Community Services Directory—to help staff refer parents to appropriate community services in their local area.

Major issues communicated to staff included the agency agreement, Budget measures, inquiry recommendations, government processes and outcomes of the CSA national leadership conference.

Environmental managementFaCS and ecologically sustainable developmentFaCS has adopted a triple bottom line (TBL) approach to considering ecologically sustainable development in the way it thinks, acts and makes decisions.

The first FaCS TBL report covering the 2002-03 year provided an environmental performance baseline and made a number of commitments for FaCS to work towards better understanding and improving performance in targeted areas. The second FaCS TBL report provides environmental performance information for the 2003-04 year and progress against these commitments.

Measures to minimise FaCS’ environmental impactsIn 2003-04 FaCS implemented a number of initiatives designed to improve the environmental performance of its operations. These included:

a new property services contract that includes provisions to improve environmental data collection and reporting as well as the environmental performance of leased buildings

a new cut paper contract with a supplier who meets FaCS’ environmental standards and requirements

a new contract for the supply of printers and photocopiers with a supplier who meets FaCS’ environmental standards and requirements

entering into the Greenhouse Challenge Agreement with the Australian Greenhouse Office, FaCS has agreed to report greenhouse emissions resulting from its operations and to implement measures to reduce these emissions

commencing an arrangement with Cartridges 4 Planet Ark to recover and recycle or remanufacture all used printer toner and ink cartridges

working towards implementing an environmental management system (EMS) and gaining ISO 14001 certification on two sites

leasing an electric-petrol hybrid car for ministerial courier functions.

A full description of these initiatives, along with environmental performance data, can be found in the FaCS TBL report for 2003-04.

FaCS triple bottom line reportingFaCS has adopted TBL reporting for the second consecutive year as a way of considering and recording the wider economic, social and environmental implications of its decisions and actions.

Once again, the indicators used in preparing the TBL report are drawn from the Global Reporting Initiative (GRI) and the guide to reporting against environmental indicators published by the Department of the Environment and Heritage. The second TBL report tracks progress made in meeting commitments made in the first, published in October 2003, and makes new commitments (or renews commitments) to improve performance in a number of areas. In this way continuous improvement is monitored and areas needing more attention are identified.

Both the Child Support Agency (CSA) and Centrelink worked closely with FaCS in producing these reports.

Summary of impactsThe areas of greatest impact for TBL reporting are:

electricity consumption

transport

paper consumption

waste and recycling

water consumption.

Further details can be found in the FaCS triple bottom line report, available online at www.facs.gov.au, by emailing TBL@facs.gov.au or by writing to the Assistant Secretary-Resource Management Branch, Box 7788 Canberra Mail Centre ACT 2610.

Table 68: Overview of FaCS environmental performance, 2002-03 and 2003-04

2002-03 2003-04 % change

Total direct energy use

23 930 380 mega joules (Mj) 33 587 376 Mj (a)

Total greenhouse gas emissions

2.65 tCO2 -e/employee 2.37 tCO2 -e/employee -11%

Total paper consumed

87.6 tonnes 95.2 tonnes +8.7%

a. Cannot be compared because of the increase in available data.

External scrutinyPrivacy

FaCS—privacyFaCS adopts practices to protect the privacy of the information obtained from people accessing portfolio services.

FaCS has developed assurance processes so it can be confident that Centrelink and the Family Assistance Office have effective mechanisms in place to protect customers’ personal information. Centrelink also is bound by the Centrelink privacy guidelines, issued by the minister in June 1999, which complement the current privacy regime, ensure Centrelink fully complies with the principles underlying the Privacy Act 1988, and address privacy issues particular to the Centrelink environment.

FaCS’ business partnership agreements with its partner service delivery agencies include mechanisms to allow FaCS to monitor and contribute to the protection of customer privacy. FaCS is a party to the Administrative Law Protocol with the Tax Office, the Health Insurance Commission and Centrelink, which provides for cooperation between the parties for the handling of matters related to privacy and freedom of information. FaCS also maintains a separate memorandum of understanding in its Business Partnership Agreement with Centrelink. As part of the protocols and memorandum, partner service delivery agencies are required to provide FaCS with quarterly reports on privacy, confidentiality and freedom of information matters. Centrelink and FaCS officers meet regularly to discuss and resolve privacy issues.

Liaison with the Privacy CommissionerFaCS liaises with the Privacy Commissioner on issues concerning policy development relating to social security and family assistance, and on the handling of personal information. FaCS also liaises with the Privacy Commissioner on any complaints received about the department. Complaints about interferences with privacy alleged by customers of FaCS’ service delivery agencies are forwarded directly to those agencies to investigate and resolve.

FaCS consulted the Privacy Commissioner on significant privacy issues as they arose. FaCS also participated as a member of the Privacy Contact Officers Network and participated in regular meetings of that network.

Complaints, reports and determinations by the Privacy CommissionerIn 2003-04, one complaint against FaCS was received by the Privacy Commissioner. The complaint concerned an alleged inappropriate disclosure of personal information under Information Privacy Principle 11. Preliminary inquiries were conducted into the complaint under section 42 of the Privacy Act. The complaint was then closed without formal investigation on the grounds that it did not appear that there had been a breach of the Act. FaCS had received no formal complaints from the Office of the Federal Privacy Commissioner in 2002-03.

Privacy compliance and investigationsFaCS considers that any improper use or disclosure of personal information by staff, and soliciting of personal information from staff, would be of serious concern. The confidentiality provisions of legislation that fall under the operational jurisdiction of the FaCS portfolio expressly forbid the release of customer information, except in limited circumstances. FaCS therefore investigates all complaints and allegations of breaches of privacy or confidentiality.

FaCS maintains a memorandum of understanding with Centrelink under which Centrelink investigates alleged breaches of privacy including contraventions of departmental procedures by FaCS staff or service providers. FaCS’ Administrative Law Protocol with the Tax Office and the Health Insurance Commission requires those agencies to report to FaCS outcomes of investigations they conduct into alleged breaches of privacy involving the service delivery of family assistance to customers. The Tax Office and Health Insurance Commission are yet to report on any investigations carried out in 2003-04.

Information Privacy Principle 4 provides that a record-keeper ensure that a record containing personal information is protected against loss, unauthorised access, use, modification or disclosure and other misuse. In 2003-04, no complaints were received against FaCS in relation to Information Privacy Principle 4.

Child Support Agency-privacyCSA has a strong commitment to protecting its clients’ privacy, and privacy issues are covered in induction and other staff training programs. Most privacy concerns and potential privacy breaches reported by staff and customers of CSA are resolved internally through a national network of CSA privacy officers.

The Office of the Federal Privacy Commissioner refers child support matters to CSA in the first instance. Most concerns are resolved in this way.

At the start of 2003-04, four formal investigations were in progress into CSA matters by the Office of the Federal Privacy Commissioner. In 2003-04, four new investigations were also commenced, and there were seven matters finalised. In three cases CSA was found to have breached the Privacy Act, resulting in two compensation payments totalling $750. The provision of an apology was considered sufficient to resolve the other matter.

For many years CSA has been a highly active member of the ACT and Australian Government Privacy Contact Officers’ network. On behalf of the network, in March 2004 CSA delivered a farewell presentation to retiring Privacy Commissioner, Mr Malcolm Crompton.

Child Support Agency-customer compensation and waiver of debtIn 2003-04, CSA finalised 176 claims and requests made for compensation and waiver of debt, compared with 122 in 2002-03 and 144 in 2001-02. Of the 176 claims finalised, 35 were upheld. CSA paid $30 385.08 in compensation during 2003-04 compared with $45 487 in 2002-03 This

comprised $29 825.08 in payments under the Compensation for Detriment due to Defective Administration Scheme, and $560 in payments for legal liability. Debts totalling $17 518.96 were waived by the Parliamentary Secretary to the Minister for Finance.

Complaints to the Ombudsman

FaCS—complaints to the OmbudsmanThe Commonwealth Ombudsman received 16 complaints about the department in 2003-04, which is approximately a 36 per cent reduction on the 2002-03 figure of 25 complaints. In certain cases a complaint may contain more than one issue (‘complaint issue’) requiring investigation. The Ombudsman’s office therefore reports on complaint issues received, rather than complaints. During 2003-04, 13 complaints were finalised covering 14 complaint issues with only two of these complaint issues investigated by the Ombudsman. Of the two investigated, one complaint issue of defective administration against FaCS was found. Investigation into the other complaint issue was not continued as the Ombudsman found that further action was not warranted. The Ombudsman exercised his discretion not to investigate six complaint issues, which were referred back to the department.

Table 69: FaCS-complaint issues received by the Ombudsman, 2003-04

Department/Program Number of complaint issues

Family and Children’s Program 3

Disability programs 1

Family Assistance Office 1

Income security 2

Freedom of information 2

Other 5

Total 14Child Support Agency-complaints to the OmbudsmanThe Ombudsman received 2311 complaints about CSA in 2003-04, compared with 2435 received in the previous year. There were 823 complaints made to the Ombudsman in which the Ombudsman contacted CSA and conducted some investigation of the complaint issues. The difference in the number of complaints received by the Ombudsman about CSA and the number of complaints received from the Ombudsman by CSA is accounted for by the Ombudsman not pursuing an investigation in relation to 60 per cent of all complaints about CSA.

The CSA complaints service continues to be an effective mechanism for resolving parent concerns. In 2003-04, the Ombudsman referred a significant proportion of all complaints made about CSA back to the CSA complaints service without investigating. CSA continues to draw valuable lessons from issues raised through the Ombudsman to effect improvements in the quality of service provided.

Child Support Agency-Ombudsman’s ‘own motion review’During the reporting year an ‘Own Motion Report into Change of Assessment Decisions’ made on the basis of income, earning capacity, property and financial resources was initiated by the Commonwealth Ombudsman.

The investigation involved the examination of eight decisions made between April and October 2002. It included a review of existing guidelines, procedural instructions and other relevant documentation, in addition to the review of each application and decision. In total, 1156 decisions were reviewed.

The key finding is that an overwhelming majority of the decisions reviewed (95 per cent) were assessed as being correct-that is, open to being made by the senior case officer.

The decisions can be categorised as follows:

71 per cent were assessed as being a ‘good’ decision

24 per cent were assessed as needing improvement (e.g. better explanation, unclear)

5 per cent only were assessed as not reasonably open to the senior case officer to make. (The Ombudsman stated that ‘on the information available to us, we considered that it would be likely that, had we received a complaint from one of the parents, we would have suggested that the CSA reconsider the decision’.)

CSA welcomes the Ombudsman’s analysis and recommendations as an opportunity to further improve the service provided to parents.

Australian National Audit Office (ANAO) activityThe Auditor-General tabled in Parliament 10 audit reports relevant to departmental operations: one audit examining the department’s management of Internet portals; and nine cross-agency audits. The substance of the audit reports is as follows:

No. 7: Recordkeeping in Large Commonwealth Organisations (tabled 24 September 2003)The objective of this cross-agency audit was to:

assess whether recordkeeping policies, systems and procedures were in accordance with relevant government policies, legislation, accepted standards and recordkeeping principles, and applicable organisational controls

identify better practices and recommend any improvements.

Key findings from this audit were that organisations audited met government policies, legislation, accepted standards and principles to varying degrees. However, there was a need for a consistent approach to improving current processes. The audit made several recommendations for better practices for recordkeeping in organisations.

FaCS supports the recommendations in the report and is developing strategies for better recordkeeping, including the implementation of an electronic document management system (EDMS).

No. 11: Annual Performance Reporting (tabled 4 November 2003)The objective of this cross-agency audit was to determine whether agencies had:

established a sound annual reporting performance information framework

developed arrangements to ensure performance information is accurate and coherent

appropriately analysed performance information in their annual reports.

Key findings from this audit included the following:

in a number of instances, agencies did not have suitable performance measures relating to the quality of outputs/administered items or effectiveness/impact indicators for outcomes

the performance information frameworks of many of the agency reports examined were not structured to allow an assessment of the efficiency of agency operations and the cost-effectiveness of outputs delivered

there was little or no performance information that related to the individual contributions of each agency, and other stakeholders, to the achievement of shared outcomes.

Overall, FaCS is considered to be compliant and has in place the necessary framework to implement the recommendations where relevant.

FaCS agreed with the recommendations.

No. 19: Property Management (tabled 17 December 2003)The objective of this cross-agency audit was to assess whether the property management function, including the management of leases, was being performed efficiently and was providing an effective level of support for the delivery of the organisations’ services (outputs). The audit evaluated property management policies and practices across the following dimensions:

planning and control

business processes and practices

information and performance management.

Key findings from this audit were as follows:

performance management processes were largely informal and unstructured

mechanisms and indicators included in contracts for measuring contractors’ performance were rarely used

the performance monitoring practices used by organisations were considered inefficient.

This lack of performance monitoring controls raises the risk of not detecting poor performance in a timely manner and taking appropriate and effective strategies for rectifying problems.

Most of the organisations included in this audit needed to improve processes for the management of property-related service contracts.

FaCS agrees with the findings from this report and is implementing the recommendations, including the development of a strategic property plan with the new service provider and a memorandum of understanding with Centrelink over future office accommodation in the National Office. The new contract with the service provider also provides for an extensive performance framework with bi-annual reviews and evaluation.

No. 24: Agency Management of Special Accounts (tabled 31 January 2004)The objective of this cross-agency audit was to:

identify all Special Accounts (and their predecessors) that have existed at sometime during the time since the Financial Management and Accountability Act 1997 (FMA Act) commenced operation on 1 January 1998

assess the efficiency and effectiveness of the establishment, management and abolition of these Special Accounts

assess compliance with the legislative requirements (including those of the FMA Act and Finance Minister’s Orders promulgated under that Act).

Key findings from this review included the following:

there is uncertainty about the number and identity of Special Accounts that exist since the introduction of the FMA Act

agencies need to improve their management of Special Accounts, particularly in the areas of nonreporting and the inaccuracies of the financial disclosures

there has been noncompliance with a number of legislative requirements.

FaCS agrees with the audit recommendations and has in place the necessary framework to implement the recommendations.

No. 25: Intellectual Property Policies and Practices in Commonwealth Agencies (tabled 5 February 2004)The objective of this cross-agency audit was to:

form an opinion on whether Australian Government agencies have systems in place to efficiently, effectively and ethically manage their intellectual property assets

identify areas for better practice in intellectual property management by those agencies.

The key finding from this audit was that only 30 per cent of agencies had developed specific policies for managing intellectual property.

FaCS was one of several government agencies that agreed with the audit recommendations and have a process in place for the implementation of these recommendations.

No. 27: Management of Internet Portals at the Department of Family and Community Services (tabled 9 February 2004)The primary objective of this FaCS-specific performance audit was to assess FaCS’ management of the Internet portals for which it had responsibility.

The ANAO also included in the audit a web site directed towards youth, The source, which provided many of the services expected of a portal. The audit considered governance structures for the portals; measurement and/or assessment of efficiency and effectiveness; and control factors, such as change management, security, and legal issues.

Key findings from this audit were as follows:

FaCS had a business case for the development of the portals that identified costs but did not identify any benefits accruing to FaCS from providing the portals. This lack of a robust business case meant that there is no basis for a business driver for further developments.

the responsibility for departmental structures and budgets relating to the FaCS’ portals and The source web site were at an appropriate level. FaCS has developed its three portals to meet the basic level of functionality as required by the Government.

the absence of a completed eCommunications strategic framework meant that FaCS did not have agreed development plans for the portals.

FaCS agreed with the recommendations and is developing a portal governance framework guideline document, which, when completed, will include proposals for analysing portal usage and managing promotion of the sites; provide for quality assurance; and provide guidelines for risk management and compliance.

No. 35: Compensation Payment and Debt Relief in Special Circumstances (tabled 24 March 2004)The objective of this cross-agency audit was to:

assess whether the management of claims for compensation and debt relief under the various discretionary mechanisms for granting relief was in accordance with relevant legislative requirements and Australian Government guidelines

determine whether the current administrative policies and procedures for the various mechanisms of compensation and debt relief provided for the effective management and reporting of claims made under those mechanisms.

The ANAO concluded that overall the management of compensatory claims was in accordance with relevant legislation and guidelines, and that there were mechanisms in place for proper management of claims.

A key finding from this audit was the need for improvement in consistency and accountability across the mechanisms examined and in the timeliness of payments for claims.

FACS agreed with the relevant recommendations and, in consultation with the CSA, is in the process of implementing the recommendations resulting from this audit.

No. 42: Financial Delegations for the Expenditure of Public Monies in FMA Agencies (tabled 16 April 2004)The objective of this cross-agency audit was to:

assess whether financial delegations associated with the expenditure of public monies were determined, applied and managed in accordance with applicable legislation, government policy and applicable controls

identify better practices and recommend improvements as necessary to current practices.

The key findings of this audit were the following:

financial delegations were not always being managed in accordance with relevant legislation

the statutory power for entering contracts, agreements and arrangements was incorrectly referenced in some organisations.

FaCS was one of several government agencies that supported the audit recommendations. FaCS has a process in place for the implementation of these recommendations.

No 55: Management of Protective Security (tabled 23 June 2004)FaCS was one of four agencies that participated in this cross-agency audit.

The objective of the audit was to assess whether protective security functions in selected organisations were being managed effectively. The audit evaluated the broader management issues associated with protective security.

The key finding from the audit was that not all the audited organisations had, at the time of the audit, sufficient and reliable processes in place for the effective management of their protective security functions. However, at the time of the audit, there were several significant reforms in progress among the audited organisations. The implementation of these reforms is expected to address many of the shortcomings identified by the ANAO.

The ANAO made four recommendations designed to improve the management of protective security functions in all Australian Government organisations.

FaCS, along with the other agencies involved, supported the recommendations. These referred to security planning, security awareness, security risk management and monitoring performance.

In addition, FaCS considers that it already has processes in place to comply with all aspects of the recommendations. FaCS will also take action to explore the viability of introducing further measures to monitor the performance of protective security activities.

FaCS has also established a Protective Security Committee to oversee and monitor the delivery and implementation of the protective security framework across the department.

No 58: Control Structures as Part of the Audit of Financial Statements of Major Australian Government Entities for the Year Ending 30 June 2004 (tabled 30 June 2004)This report updates the ANAO’s assessment of audit findings relating to major entity internal control structures, including governance arrangements, information systems and control procedures through to March 2004. The report represents a summary of findings from the interim phase of the financial statement audit of major government entities for 2003-04.

The ANAO assessed FaCS’ potential risk of material misstatement in the 2003-04 financial statements as moderate to high. This is based on the goals, priorities, objectives and strategies deemed necessary to achieve the initiatives established.

The ANAO considers that FaCS has an effective and robust financial reporting system in place through the use of monthly accrual reporting to the Executive Board using analysis of budget data and performance measures (financial and non-financial) in relation to the current financial position.

The ANAO did, however, identify a total of eight areas where reporting of administered financial information could be strengthened.

FaCS supports the findings and has initiated corrective action to ensure that the recommendations are addressed in a timely manner in order to further strengthen the control environment.

Information strategies and technology managementFaCS—information strategies and technology managementFaCS undertook a number of key information communication and technology initiatives during the year. These are summarised below.

Information and Communication Technology Strategic Plan 2004-07The Information and Communication Technology (ICT) Strategic Plan was finalised this year after extensive consultation. The strategic plan provides the platform from which FaCS can maintain a level of market-accepted technology, support programs such as Australians Working Together, provide government-wide interoperability and connectivity, and offer information management solutions to enhance FaCS’ ability to harness knowledge.

Information and communication technology support for flexible work practicesFaCS is committed to helping its people achieve a work-life balance. In early 2003, recognising that other Australian Public Service (APS) agencies also want to support their employees, FaCS proposed a whole-of-government project to explore how information and communication (ICT) investment and usage can be better used to support flexible work practices throughout the APS.

The proposal was strongly supported by the then National Office for the Information Economy (NOIE). During 2003-04, FaCS facilitated the project in partnership with NOIE, the Australian Public Service Commission and the Department of Employment and Workplace Relations. Twenty-two Australian Government agencies participated via an interdepartmental committee and three working groups.

The knowledge resulting from this broad pool of experience and practice enabled a set of recommendations to be developed and commitment secured for their implementation throughout the APS. Included in the recommendations were two new better practice checklists.

The Chief Information Office Committee (a cross-agency ICT leadership forum that addresses priorities determined by the Information Management Strategy Committee, the Australian

Government’s peak information, communication and technology strategy body) endorsed the recommendations (including the new checklists) on 30 June 2004.

Electronic Document Management System (EDMS)In August 2003 a contract was signed with Inform Systems for the provision of iManage, the new FaCS Electronic Document Management System (EDMS). An extensive design and testing phase followed, which included some customisation of iManage to meet FaCS’ specific needs.

A pilot of iManage was deployed successfully to 126 staff in the NSW state office in February 2004. Following a review of the pilot, full implementation of iManage commenced with the Victorian state office in April 2004. iManage implementation across the department will be completed in June 2005.

IT outsourcingFaCS has entered into a contract with Getronics for the provision of IT services covering help desk, desktop and infrastructure support. The services commenced on 1 July 2004.

FaCS Online Funding Management System (FOFMS)FaCS is developing an integrated solution for the department’s funding management requirements. The enabling tool for achieving this solution will be the FaCS Online Funding Management System (FOFMS). The solution will facilitate the implementation of a common approach to managing the department’s arrangements with service providers across all funding programs.

FOFMS aims to support the lifecycle of funding arrangements—from developing applications to establishing the service, managing the agreement and making payments through to reporting and evaluation. The system aims to deliver online claims-driven payments and case-based funding functionality. FOFMS also aims to meet the department’s obligations under the Government’s online initiative and will enable compliance with ANAO best practice for administration of grants.

A tender evaluation process conducted during the first half of the financial year resulted in Accenture being selected as the preferred implementation partner. Contracts were signed on 13 February 2004 and the design, development and implementation phase of the FOFMS project commenced on 16 February 2004.

Edge expert systemIn view of the considerable changes that had occurred in family policy and its delivery, FaCS and Centrelink commissioned a review of the business case for the further development and deployment of the Edge expert system.

The review report was completed in November 2003. The review found that a viable business case for Edge no longer existed for deployment of the system in its then current form. However, Centrelink has commissioned a feasibility study to further explore the targeted use of expert systems in a way that would leverage off the work already undertaken and learnings gained. The feasibility report is yet to be finalised.

Information technology securityIT security has been integrated within the protective security function to provide a more holistic security approach for the department.

An IT security architecture project was completed this year; following on from that, an IT Security Migration Plan was developed to address gaps in the department’s current IT security architecture as compared with the requirements of the Australian Government’s minimum standards for IT security.

Child Support Agency—IT performance solutions

e-businessCSA will be piloting new e-business initiatives to provide parents with an alternative service channel. The pilot will consist of an online statement facility and, for employers, the ability to send information online. These products were chosen based on extensive research and internal analysis. The pilots will complement the existing range of tools available to help parents manage their separation and child support issues.

CSA Business Continuity PlanThis year CSA continued to consolidate the agency’s Business Continuity Plan. This plan includes documentation on IT and telephony recovery in the event of a business interruption. CSA has developed a set of action cards and check lists for the resolution of outages and procedures for evacuations. CSA’s aim is to ensure that staff are aware of all procedures relating to business continuity communication and action responsibilities.

Library and research servicesThe Library and Information Services section continued to expand its information delivery, research provision, research training and tailored information services to all four customer agencies: FaCS, Centrelink, CSA and the Social Security Appeals Tribunal. ATSIS was accepted as a new customer agency, and service to that agency commenced in March 2004. The digital archive of the Guide to the Social Security Act was extended to include the re-creation of missing releases. The Library and Information Services section also became the secretariat of FaCS’ Knowledge Committee, and contributed a major part of the draft information architecture for FaCS.

Ministerial and parliamentary servicesFaCS delivered services to both ministers and to the parliamentary secretary on behalf of the Family and Community Services portfolio, including the Child Support Agency, Centrelink, the Social Security Appeals Tribunal and the Australian Institute of Family Studies.

In 2002-03 a project was undertaken to obtain more objective data about the quality of policy advice to the minister’s office, one of the major outputs of the department. It was necessary to reassess the quality standards in 2003-04 to take into consideration the preferences of the new ministers. It is intended to repeat the performance review in 2004-05.

Ministerial correspondence showed a significant increase of about 24 per cent from 17 571 in 2002-03 to 21 818 in 2003-04. Fifty-one per cent of draft replies were provided to Minister Vanstone and to her successor, Minister Patterson, within their agreed standard of 14 days, up from 28 per cent the previous year. Fifty-nine per cent were provided to other signatories within their standard of 21 days, compared with 45 per cent for the previous year—again a significant improvement over the 2002-03 results.

Figure 21 Volume of ministerial correspondence received by FaCS portfolio, 2002–03 and 2003–04

The fluctuation during the quarter September to December 2003 is attributed to the change in minister from Senator the Hon Amanda Vanstone to Senator the Hon Kay Patterson. The increase in correspondence during the first quarter of 2004 is attributed to the release of the report of the inquiry into child custody arrangements. Correspondence increased again in June 2004 due to the announcement of the one-off $600 per child bonus payment.

The ministers and the parliamentary secretary sign replies to other Members of Parliament and Senators, representatives of peak organisations, and to constituents from their respective electorates. The department replies directly to other correspondents.

Figure 22 Signatories for ministerial correspondence, 2003–04

The portfolio prepared a total of 2409 ministerial submissions/minutes during the year with sixty per cent of those being for Minister Patterson.

Figure 23 Timeliness for responding to questions on notice, 2000–01 to 2003

Minister Patterson expects to receive answers to questions on notice within 23 days. This allows sufficient time for clearance within the Parliament’s standard of 30 days (Senate) or 60 days (House of Representatives). The department is meeting the 23-day standard around 50 per cent of the time.

Table 70: Ministerial and parliamentary services—number of briefi ngs, submissions, ministerial correspondence and questions on notice, 2003–04

Output group

Ministerial correspondence

Processeda

Question-time

briefsb Briefingsc SubmissionsdQuestions on notice

1.1 Family assistance 2 418 454 104 231 2

1.2 Youth and student support 903 208 37 248 1

1.3 Child support1419 43 13 66 12

1.4 Child care support 707 184 39 147 7

2.1 Housing support 443 108 35 99 0

2.2 Community support 414 91 90 203 6

3.1 Labour market assistance 580 124 11 66 3

3.2 Support for people with disabilities 1142 86 94 138 6

3.3 Support for carers 600 118 6 10 0

3.4 Support for the aged 1458 166 17 67 5

Not directly attributable0 2 610 232 52 342 22

FaCS subtotal 12 694 1814 498 1617 64Centrelink

3311 125 17 2 77 35

Total 16 005 1939 515 1894 99

a. These figures do not include replies to campaign mail.

b. These figures include both new question tme briefings and those that have been substantially revised.

c. Written submissions requested by the ministers, the parliamentary secretary or their staff.

d. Written submissions initiated by departmental officers, for the attention of the ministers or the parliamentary secretary. e Material that cannot be attributed to any single output group. It includes policy that covers multiple programs and correspondence referred to other departments for a response.

Parliamentary committeesHouse of Representatives Standing Committee on Employment and Workplace Relations: Inquiry into Employment: Increasing Participation in Paid WorkThe committee was asked to report on employment issues in both rural/regional and urban/outer suburban areas and on measures that can be implemented to increase the level of participation in paid work in Australia, particularly by income support recipients. FaCS lodged a written submission in October 2003 and appeared at the public hearings on 26 November 2003 and on 26 May 2004. FaCS took a number of questions on notice from the November hearing that were supplied to the committee in February 2004. In May 2004 FaCS also responded to a series of questions on notice taken from a separate hearing with various employer representatives. The committee’s final report is expected to be tabled in August or September 2004.

House of Representatives Standing Committee on Family and Community Affairs: Report of the Inquiry into Child Custody Arrangements in the Event of Family SeparationFaCS contributed detailed and extensive submissions to this inquiry, and appeared before the committee to give further evidence on a number of occasions. FaCS’ submissions focused on providing the committee with an understanding of the complexity and dynamic nature of contemporary Australian families; information on the range of family relationships services available to families and children with relationship difficulties; and information on policy issues and administration of the Child Support Scheme.

House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs: Report of the Inquiry into Capacity Building and Service Delivery in Indigenous CommunitiesFaCS provided a comprehensive submission in September 2002 discussing conceptual frameworks and issues relating to capacity building, responding to specific inquiry questions, and outlining how FaCS and Centrelink are contributing to building capacities in Indigenous communities. FaCS officers subsequently appeared before the committee on 25 June 2003 to give further evidence, and participated in a roundtable discussion with the committee on ways forward on 13 February 2004. The committee’s report, Many Ways Forward, was tabled on 21 June 2004.

Senate Legal and Constitutional References Committee: Inquiry into Australian ExpatriatesIn February 2004, FaCS provided a submission to the committee’s Inquiry into Australian Expatriates. The submission considered the reasons for Australians living overseas; the income support and services provided to Australian expatriates; Australia’s international social security agreements; and the costs, benefits and opportunities presented. The submission emphasised the principle of ‘shared responsibility’.

Senate Standing Committee on Community Affairs: Inquiry into Poverty and Financial Hardship

Following the appearance of FaCS witnesses before the committee on 20 June 2003, FaCS provided written answers on 13 August 2003 to eight questions taken on notice or received in writing from committee members.

Senate Legal and Constitutional References Committee: Inquiry into Legal Aid and Access to JusticeOn 1 October 2003 FaCS provided a submission to the committee that outlined the comprehensive and accessible arrangements in place for the review of decisions made by Centrelink and the Child Support Agency. The submission also addressed other possible methods of redress, including payments under the Compensation for Detriment caused by Defective Administration Scheme, payments under regulation 9 of the Financial Management and Accountability Regulations and act of grace payments.

Senate Standing Committee on Economics: Inquiry into the Structure and Distributive Effects of the Australian Taxation SystemThe committee was asked to examine the structure and distributive effects of the Australian taxation system. The main areas of investigation were the tax burden on individuals, businesses and taxpayers’ families, the use of tax and expenditure incentives to influence social and economic conduct and the role of the different levels of government in collecting and distributing tax revenue. FaCS lodged a written submission in July 2003, which focused on the interaction of the tax and social security systems in the context of the broader social support system. Officials also appeared before the committee on 28 July 2003.

Senate Standing Committee on Regulations and Ordinances: Social Security (Attribution of Income-Ineligible Deductions) Determination 2004FaCS wrote to the committee addressing two concerns raised by the committee in relation to the above determination. The committee answered that it had considered the department’s response and agreed that the advice provided addressed its concerns.

Senate Standing Committee on Community Affairs: Inquiry into Family and Community Services and Veterans’ Affairs Legislation Amendment (Income Streams) Bill 2004The committee examined the Family and Community Services and Veterans’ Affairs Legislation Amendment (Income Streams) Bill 2004. Certain non-commutable insurance-based income streams products receive a 100 per cent exemption from the social security assets test. The Bill:

changes the assets test concession from 100 per cent to 50 per cent for products purchased from 20 September 2004

extends the assets test concession to a new market-linked income stream product from 20 September 2004.

FaCS lodged a submission in June 2004 to further explain how the initiatives would increase the investment options available to retirees and ensure the Age Pension is paid to those in need.

FaCS witnesses appeared before the committee on 18 June 2004. The report was tabled on 21 June 2004 and legislation passed on 24 June 2004.

Joint Standing Committee on TreatiesAn agreement on social security between Australia and Croatia was tabled in Parliament on 17 June 2003. FaCS witnesses appeared before the committee at its public hearing on 18 August 2003. The committee recommended that binding treaty action be taken and the new treaty came into force on 1 July 2004.

Partnerships for peopleThis section describes how FaCS implements the Government’s commitment to encouraging the wider community to become involved in creating and delivering its policies, programs and services.

To help make this happen, FaCS:

administers Australian Government funding to service providers and peak community organisations

works collaboratively with business, the community and other government organisations through a ‘social coalition’

works with Centrelink to make sure government policies are effectively delivered to the Australian community.

Service providers

Funding to communities and organisations to deliver servicesFaCS has a service delivery relationship with nearly 16 000 non-government service delivery outlets, funded either directly—for example, Personal Support Programme, Disability Employment Assistance, and Job Placement, Employment and Training—or indirectly—Supported Accommodation Assistance Program and child care providers receiving Child Care Benefit.

In 2003-04, FaCS administered $969.2 million in direct funding to non-government service delivery outlets to deliver services to individuals, families and communities on behalf of the department. The funding covered a diverse range of services that strengthen families, communities and economic and social participation, including:

employment assistance and other services for people with disabilities

child care support through direct subsidies to child care providers

family support, including child abuse prevention, family relationships support and services for families with children

community support, including emergency relief and homelessness

support for youth and students.

FaCS also administered $1.898 billion in special purpose payments to states and territories in 2003-04. These payments include:

the Commonwealth-State Housing Agreement (CSHA), which provides affordable public housing

the Commonwealth-State/Territory Disability Agreement, which provides services for people with disabilities

the Supported Accommodation Assistance Program (SAAP), which provides crisis intervention and stabilisation for people who are homeless

compensation for the extension of fringe benefits (such as transport concessions) provided by state and territory governments to pensioners and other beneficiaries

concessions for Commonwealth Seniors Health Care Card holders.

FaCS service delivery frameworkIn 2003-04, FaCS has been developing a service delivery framework that will provide the basis for FaCS business to be managed in a consistent way. The aim of the framework is to encourage

accountable and transparent practices between FaCS and organisations funded to deliver services on the department’s behalf.

As a first step toward establishing a ‘FaCS way of doing business’, FaCS has commenced work on developing a practical guide that sets out the currently accepted best practice for program administration with FaCS-funded service providers. This practical guide will also reflect what the minimum requirements are from a FaCS perspective—what is mandatory and what is optional for managing relationships with FaCS-funded service providers. The guide will include chapters on developing program guidelines, management of funding agreements, program review and evaluation, policy development, program design and selection of service providers.

Working collaborativelyFaCS is committed to using a partnership approach to service delivery, working collaboratively with other agencies—those of the Australian Government, state and territory governments and the nongovernment business community sector—to develop, plan, fund and deliver services. The transfer of some ATSIS programs into FaCS and the establishment of 22 Indigenous Coordination Centres (ICCs) across regional Australia are a current example. FaCS is using the new whole-of-government mainstreaming approach to work collaboratively and flexibly with others to address both the challenges and opportunities that this new model presents for FaCS in the way it delivers programs and services.

State and territory office network-engaging the community

Lead state rolesVarious offices within the department’s state and territory office (STO) network take on ‘lead state’ roles, contributing to specific policy areas (see Table 71).

With their unique expertise and local networks, lead states added value to FaCS’ work by:

assuring ministers that FaCS’ advice is informed by community input

enhancing the department’s capacity to do business in a ‘joined-up’ way

providing links across programs and with other levels of government

using local knowledge to give FaCS a competitive advantage in a contestable policy environment

highlighting hot spots and trends

gathering and disseminating information within the department and between Centrelink and other service providers.

Table 71: FaCS lead state responsibilities

Area of focus Output group

Lead state

Families 1.1 South Australia

Youth 1.2 New South Wales

Children 1.3 & 1.4 Victoria

Housing/Homelessness 2.1 South Australia

Community 2.2 Victoria

Indigenous 2.1 & 2.2 New South Wales

Labour market 3.1 New South Wales

Disabilities 3.2 New South Wales, Western Australia and Queensland

Carers 3.3 Indigenous Policy and North Australia Office

Aged 3.4 Victoria

Corporate Various New South Wales

Service delivery Various Victoria

Engaging the communityThe development of the Family Homelessness Prevention and Early Intervention Pilot (FHPEIP) scheme is an example of how the department, through the state and territory office network, engages the community. The FHPEIP was announced by the Government in the 2001-02 Budget. The aim of the pilot was to identify and help families at risk of homelessness before homelessness became a reality for them. Many families had been seeking help only when they reached a crisis point. FaCS wanted to trial early intervention to prevent families getting into crisis.

The FHPEIP program was developed in the FaCS National Office. Each state and territory office contributed local knowledge to the process of site selection. They researched areas of disadvantage, looking for locations with the greatest need for a homelessness prevention program. The Minister for Family and Community Services approved the selection of eight FHPEIP sites across the country-one in each state and territory. The Wyong Shire was the area selected in New South Wales for the pilot.

Advertisements for tenders were published in newspapers, and FaCS staff presented the concept to non-government organisations that were interested in operating the program in and around Wyong. FaCS NSW staff received the applications from interested organisations and worked with their colleagues in the FaCS National Office on the tender assessment process to select the successful tenderer.

In June 2002, the Minister announced the Wyong Burnside Uniting Church as the successful tenderer. They called their new homelessness pilot program ‘Habitat’.

Staff from the NSW FaCS office worked closely with Habitat from the start as they established the program-building partnerships, recruiting staff, drafting a memorandum of understanding with Centrelink, their close partner and the source of many of their referrals. FaCS NSW staff also worked with Habitat on defining what ‘homelessness’ meant in Wyong. Together they talked through the referral process and other ways to make the program successful.

NSW FaCS staff played an important role in building the partnership with Habitat and Centrelink. Habitat and Centrelink work closely to identify families at risk. They discovered that single fathers were not accessing many services around Wyong. Habitat was instrumental in setting up the first men’s program in the region-the Men’s Advocacy and Practical Strategies (MAPS) group. Habitat and Centrelink began building relationships with other agencies in the area that could potentially identify and refer families at risk. These organisations have now themselves formed successful partnerships.

Throughout the pilot, NSW FaCS staff monitored Habitat’s contract with FaCS and assisted the organisation in developing its annual plans and the other reports required under the agreement. FaCS staff attended face-to-face meetings with the organisation on a monthly basis until the

program became established, when meetings were held once every two months. At the end of June 2004, NSW FaCS staff met Habitat workers to help them plan and prepare their final evaluation report.

In 2003-04, almost 100 families at risk of homelessness in the Wyong Shire had been in contact with Habitat.

The second phase of the homelessness pilots-the Household Organisational Management Expenses (HOME) advice program-will be coordinated through FaCS National Office.

Funding for peak bodiesThrough the National Secretariat Program, FaCS supports peak organisations to contribute to government policy and service delivery and to channel information between their membership and government. It also provides a consultative mechanism for the ministers and the portfolio.

The National Secretariat Program provided financial support to 20 national community peak bodies representing six portfolio programs: community services, homelessness, welfare, disabilities, children’s services and family relationships.

Total expenditure in 2003-04 was $3 871 212 (GST inclusive).

Table 72: Organisations funded under the National Secretariat Program, 2003-04

PEAK BODY FUNDING ($)National secretariat

Australian Council of Social Service513 950

National Industry Association for Disability Services (ACROD)275 000

FamiliesAustralia275 000

Early Childhood Australia275 000

Australian Federation of Homelessness Organisations275 000

VolunteeringAustralia165 000

Australian Federation of Disability Organisations137 500

Secretariat support

Blind Citizens Australia132 000

Deafness Forum of Australia132 000

Head Injury Council of Australia132 000

National Council on Intellectual Disability132 000

National Ethnic Disability Alliance132 000

Australian Association of the Deaf132 000

PEAK BODY FUNDING ($)Physical Disability Council of Australia

132 000

Women with Disabilities Australia132 000

Program support grants

Catholic Welfare Australia118 492

Family Services Australia169 204

Relationships Australia116 303

Secretariat of National Aboriginal and Islander Child Care142 763

Lone Fathers Association55 000

National Council of Single Mothers and their Children55 000

Australian Early Childhood Association55 000

Australian Federation of Homelessness Organisations55 000

Australian Association of the Deaf44 000

Blind Citizens Australia44 000

Deafness Forum of Australia44 000

Total 3 871 212Note: The nature of this program means that some funding is also reported in the individual output group performance reports.

FaCS-Centrelink relationship

FaCS-Centrelink Business AllianceAlliance 2004 projectThe Alliance 2004 project was the main vehicle for building a new relationship between FaCS and Centrelink. The project aimed to improve the outcomes for customers and community, provide better reporting to government and improve the FaCS-Centrelink relationship.

The business alliance frameworks that FaCS has developed with Centrelink will reshape the relationship from one that has been largely focused on inputs and processes to one that is more clearly focused on achieving government outcomes. In addition to providing a clear ‘line of sight’ from inputs to outputs and outcomes, they provide FaCS and Centrelink staff with:

clearly articulated roles, responsibilities and accountabilities

an improved focus on what each organisation contributes to government outcomes and outputs, with fewer disputes about expectations

evidence that gives confidence that the business relationship is effective, and risks to achieving business objectives are managed.

The Alliance 2004 project consisted of six frameworks:

Outcomes and Outputs Framework (OOF)This framework increases transparency to government by setting out performance measures for service delivery outputs, improving each organisation’s focus on what it contributes to government outcomes, and showing that the success of one organisation is integral to the success of the other.

Business Assurance Framework (BAF)This framework allocates responsibility for managing key risks and, for ensuring that appropriate controls are in place to mitigate these risks and that processes are in place to show that the controls are working.

Centrelink funding modelThis cost-based model ensures that Centrelink is funded for the work it undertakes on behalf of Australian Government agencies. The model improves the ‘line of sight’ from inputs through outputs to outcomes, provides transparency to government and enables FaCS and Centrelink to be more responsive to issues affecting our business.

Information and evidence baseThis framework improves FaCS and Centrelink’s transparency to government (on current measures) and their responsiveness to government (on future directions); recognises that information is essential for supporting decision making; and provides evidence that the organisations’ business relationship is being managed effectively.

Relationship frameworkThis framework sets out the vision for the business alliance, clarifies the roles and responsibilities of FaCS and Centrelink, and acknowledges that each organisation makes different but equally valuable contributions to these outcomes.

Business Alliance AgreementThis agreement documents the agreements between FaCS and Centrelink for all joint business interactions. It increases transparency to government and replaces the current 2001-04 Business Partnership Agreement.

Research partnerships

Longitudinal studiesThe development of long-term partnerships with academic researchers and community organisations is a key factor in the success of FaCS’ major longitudinal studies, including:

the Household, Income and Labour Dynamics in Australia (HILDA) survey

Growing Up in Australia: Longitudinal Study of Australian Children (LSAC)

Footprints in Time: Longitudinal Study of Indigenous Children (LSIC).

All aspects of these studies—from the identification of research objectives to the type of information collected, the design of the study, and the use of the data — are supported by advisory committees involving academic experts in the subject matter, actual and potential users of the data sets, and community representatives who have knowledge of the issues and policy impacts. Other Australian Government agencies and state and territory government

representatives are also actively involved in providing advice on the studies, recognising their important role as data users, policy makers and service providers.

The HILDA and LSAC studies are managed and operated by consortia of academic institutions representing experts in the relevant fields, in close partnership with FaCS.

The Melbourne Institute of Applied Economic and Social Research at the University of Melbourne manages the HILDA survey itself, and a group of academic researchers who are keen users of the data provides advice and support to the Melbourne Institute. These researchers include labour market economists, sociologists and demographers.

LSAC is managed by the Australian Institute of Family Studies (AIFS) and a consortium of researchers from 10 academic institutions, including child psychologists, paediatricians, early childhood educationalists, sociologists, and psychiatrists.

This partnership arrangement means that FaCS, as a policy and service delivery department, can work closely with research experts and community groups to ensure the longitudinal studies produce data that are relevant to policy and of high-quality scientific value.

With LSIC, particular attention is being paid to engaging with Aboriginal and Torres Strait Islander people, communities, organisations and service providers in recognition of the critical importance that the study is accepted by the Indigenous community and that the data collected will meet their needs.

Social Policy Research ServicesThe Social Policy Research Services (SPRS) agreements (2001-04) comprise research partnerships between FaCS and three university-based research institutions: the Social Policy Research Centre (SPRC) at the University of New South Wales; the Melbourne Institute of Applied Economic and Social Research at the University of Melbourne; and the Social Policy Evaluation, Analysis and Research Centre (SPEAR) at the Australian National University.

The Melbourne Institute has expertise in empirical studies of the labour market and its interaction with the social security system, behavioural policy modelling, and economic and social research on families and communities. The SPRC focuses on the design and delivery of social policy programs and their impact on the living standards, behaviour and circumstances of income support recipients and their families, and community organisations. SPEAR has expertise in evaluation of the effectiveness of social policy programs and interventions, including alternative delivery options, advanced econometric and statistical methods, and longitudinal data design and analysis.

The SPRS agreements represent a mutually beneficial relationship whereby FaCS draws on the expertise of academics held in high repute who, in turn, benefit from access to FaCS’ longitudinal data holdings.

In addition to the SPRS program, FaCS also has a research agreement with the Centre for Aboriginal Economic Policy Research at the Australian National University. This work focuses on priorities identified in FaCS’ Indigenous research agenda.

Australian Research Council (ARC) Linkage Grant projectsFrom time to time, FaCS acts as an industry partner with universities in ARC Linkage Grant projects. Examples of current involvement include:

Labour supply and savings of older Australians: behavioural responses and economic impact— FaCS partnership with the University of New South Wales and the University of Sydney

Parents on low income study (POLIS) — FaCS partnership with the Australian Institute of Family Studies and the Australian National University

Intergenerational transmission of dependence on income support: patterns, causation and implications for Australian social policy—FaCS partnership with the Australian National University.

Right payments to the right peopleAs part of the Alliance 2004 project governing the relationship between FaCS and Centrelink (see pages 270-271), the Outcomes and Outputs Framework (OOF) sets out the performance framework that reflects the organisations’ roles in achieving government outcomes. It also sets out the measures that will be used to assess the organisations’ respective contributions to the FaCS departmental outputs of service delivery and policy advice. FaCS and Centrelink are jointly accountable to Parliament for the payments and services that Centrelink delivers to the community.

The 2001-04 Business Partnership Agreement, governing the relationship between FaCS and Centrelink, specifies a monetary compliance benchmark of $980 million in savings, which was achieved by Centrelink in 2003-04.

New debt-raising and recovery performance measures included as part of the OOF have been developed under the Alliance 2004 project for implementation in 2004-05.

The 2004-05 financial year will be used to benchmark performance with a view to setting compliance performance targets in 2005-06.

Control of program fraud and incorrect paymentOn behalf of FaCS, Centrelink ensures that controls are in place to minimise the risk of fraud and payment incorrectness. The agencies’ Business Partnership Agreement details these controls and provides a framework for maximising correct payment.

This framework consists of three key strategies:

prevention-through systems and procedures to minimise the risk of incorrect payment

detection and recovery-through processes to detect incorrect payments as soon as possible and to correct them promptly

deterrence-promoting voluntary compliance through creating a public recognition of the risks and penalties involved in attempting to fraudulently receive payments, including likelihood of detection, recovery of debts and possible prosecution.

Under these key strategies FaCS requires Centrelink to:

develop, implement, and support systems and procedures to prevent, identify, investigate and deter incorrect payments and fraud

undertake activities in debt prevention; reviews; debt identification, raising and recovery; and prosecution

monitor, analyse and report on performance.

Control strategies aim to prevent incorrect payments rather than detect them later. The controls are risk-based and Centrelink gives due consideration, in consultation with FaCS, to cost efficiency and good customer service.

The relevant legislation and the key performance indicators for debts seek to ensure that debts are identified and raised in an accurate and timely manner. Affected customers are notified of adverse determinations resulting from reviews that affect a rate of payment, result in a debt or action to recover a debt, or institute prosecution proceedings.

Reviews apply natural justice; in adverse determinations the customer can comment on the reasons for action taken. FaCS also requires Centrelink to provide an assurance of correct payment by:

adhering to agreed procedures and processes to maximise correct payments, and providing ongoing assessment of control framework effectiveness, particularly proof-of-identity procedures to minimise identity fraud

undertaking, in consultation with FaCS, comprehensive risk assessments of service and payment delivery for each income support program

providing data on the accuracy of decision making to assure FaCS that the incidence of incorrect payment arising through incorrect decisions is minimal.

FaCS continually monitors performance to measure the success of the control framework and service provider performance. At a departmental level, the impact of compliance activities on outlays indicates performance.

Random samplesRolling random sample surveys provide a key measure of the effectiveness of compliance and other review activity. The primary purpose of the random sample surveys is to provide a measure for accuracy of outlays, and a means to facilitate external assurance as required under the business assurance framework.

Random samples are a point-in-time analysis of customers’ circumstances, designed to establish whether customers are being correctly paid in accordance with the Business Assurance Framework’s ‘four pillars’ of payment correctness. During 2003-04 Centrelink undertook, on FaCS’ behalf, rolling random sample surveys of 10 050 customers receiving benefits, including the Age Pension (1500), Youth Allowance (1500), Parenting Payment Partnered (1500), Parenting Payment Single (1500), Disability Support Pension (DSP) (1500), Newstart Allowance (1500), Wife Pension Age and DSP (350), Widow Allowance (350) and Partner Allowance (350). The ongoing program of random sample surveys will provide continuous information on the level of, and reasons for, incorrect payment as well as on the effectiveness of the overall control framework for managing payment accuracy. The results of random sample surveys undertaken to 31 December 2003 are provided in Table 73.

Table 73: Results of random sample surveys undertaken to 31 December 2003a

Payment type Residual inaccuracy

Age Pension 1.29%

Disability Support Pension 1.83%

Newstart Allowance 6.73%

Parenting Payment Partnered 6.80%

Parenting Payment Single 4.39%

Youth Allowance 8.45%

Widows Pension B 1.73%

Overall rate of inaccuracy 3.30%

a. The rate of inaccuracy is derived from the ratio of inaccurate payment to the amount being paid to the sample populations adjusted for the existing control framework. The overall inaccuracy rate of 3.3% is estimated by weighting by payment population and includes upward and downward variations. A similar proportion of inaccuracy would be expected across the entire population.

Maximising correctness of payments

Debt preventionThrough its business partnership with Centrelink, FaCS emphasises preventive measures for all dealings with customers by ensuring a framework of procedures, controls and systems, including:

undertaking identification checks

issuing appropriate claim forms to customers and alerting customers to their obligations and existing detection mechanisms

verifying critical facts that customers supply

selectively applying risk-based admission procedures to ensure resources go to those cases where perceived risk of incorrect payment is greatest

requiring customers to provide their tax file numbers and where appropriate their partners’ tax file numbers as a condition for receipt of payment

requiring benefits be paid directly into customer accounts to reduce the occurrence of cheque fraud.

Detection and recovery

Review activityFaCS funds Centrelink to undertake particular review activities to target identified risks. All review activity is conducted in accordance with the Privacy Act.

ProfilingService profiling is a method of selectively identifying and reviewing customers who need a more focused level of service to help them meet program outcomes, including payment correctness, activity testing and economic and social participation.

Further Budget measures in 2003-04 provided for the introduction of service profiling for Disability Support Pension and Austudy, as well as providing additional resources to conduct more profiling reviews for Youth Allowance, Age Pension and Parenting Payment.

Data matchingData matching involves comparing customer identity details, including in some cases tax file numbers, with records from other federal and state bodies, to identify declared income or assets changes. Data-matching activities include:

Tax Office individual and partners’ tax data

Tax Office employment declaration forms

Tax Office rental assets data

Tax Office Pay-As-You-Go payment summary information

Tax Office Australian Business Number information

state and territory registrars general deaths data

Department of Immigration and Multicultural and Indigenous Affairs immigration records

state and territory departments of corrective services data

Defence Housing Authority data

Commonwealth Superannuation Administration (ComSuper) data

Department of Employment and Workplace Relations data

enrolment status of Youth Allowance and Austudy customers.

Other activitiesOther methods to identify possible incorrect payments include:

joint case work between Centrelink and the Tax Office

information from members of the public

risk-based review selections generated from statistical analysis of customer characteristics

reviews to examine customer entitlements at a specific time in their duration on payment.

Identity fraudFaCS and Centrelink continue to build relationships with other organisations with customers in common and where fraud prevention is of mutual interest. FaCS was involved in whole-of-government activities by participating in various committees to combat identity fraud through mutual cooperation in investigating the cash economy. Legislation was passed in November 2003 enabling Centrelink access to AUSTRAC financial transactions reporting information. Use of these data will enhance the ability to detect identity fraud and misrepresentations by Centrelink customers.

Sophisticated computer detection methods continue to detect identity-related fraud. In 2003-04, these methods identified 171 cases of identity fraud. This relates to 729 claims for payment, as a single fraudulent identity may be used to make a number of claims.

Debt recoveryFaCS, through Centrelink, recovers debts by withholding ongoing payments and recovering cash repayments. In certain cases, garnishee action recovers debts from tax refunds and other lump-sum payments. Care is taken that customers are not placed in undue hardship from ongoing witholdings of payments or garnishee action.

A contracted mercantile agent collects debts when the debtor’s whereabouts are unknown to Centrelink or it is not cost-effective to pursue the debts through standard debt recovery processes.

CompensationCompensation provisions reflect the principle that income support for people who suffer compensable injuries mainly lies with relevant compensation authorities rather than with the taxpayer-funded social security system. Compensation provisions provide for:

recovery of past payments of social security from arrears payments of periodic compensation payments and lump-sum compensation payments

preclusion periods within which social security payments cannot be paid due to the receipt of lump-sum compensation payments

periodic payments, such as weekly workers’ compensation payments, to reduce directly, dollar-for- dollar, the rate of social security payments otherwise payable. Any excess is treated as income for partners of compensation recipients.

To ensure the community understands the social security implications of receiving compensation, Centrelink provides a high-level outreach and information service to compensation authorities and to legal, insurance, union and community representatives.

In 2003-04, application of the compliance provisions achieved estimated savings to outlays of $404 million.

DeterrenceDealing decisively with detected cases of incorrect payment encourages voluntary compliance. This helps the public recognise the risks and penalties involved in attempting to fraudulently claim payments. Centrelink must:

promptly identify and investigate (or refer to the Australian Federal Police) possible offences

refer appropriate cases to the Director of Public Prosecutions for possible prosecution.

Procedural requirements make customers aware of their obligations, and prosecution outcomes are publicised.

Customer AccountThe Customer Account is a web browser interface to customer data currently stored in the Centrelink mainframe computer. Its purpose is to simplify, streamline and standardise the way staff use and manage customer data. The Customer Account re-uses customer information and offers staff a single-screen summary of customer data that would normally be accessed via 24 mainframe screens. Customer Account provides links to other tools and applications, including the mainframe. New claims processing software for Parenting Payment Single and Newstart Allowance/Youth Allowance continues to be developed for this financial year.

FaCS expects that by July 2006 customers will be able to view, update and in some instances make a claim via their personal accounts and supply simple updates via the Internet. FaCS keep a watching brief on Customer Account to monitor budgeted savings and ensure that policy is correctly applied within the technology.

Business Assurance FrameworkThe Business Assurance Framework (BAF) has been developed by FaCS and Centrelink to provide a comprehensive picture of the operation of controls and of the effectiveness of the risk management framework for the delivery of programs and services to customers through Centrelink. The BAF recognises that many controls are managed through the service delivery arrangements with Centrelink; it assigns responsibility for managing risks to the agency best placed to do so while seeking assurances that the management of those risks is effective.

The BAF builds on existing mechanisms of quality control and quality assurance to measure the quality of controls against key risks in the delivery of services to customers. It also relies on external assurance, such as ANAO audits and validation of data, to provide confidence in the quality assurance process and in the information upon which assurances are based.

The basic principles of the BAF are the following:

there should be agreement between stakeholders about the outcomes to be achieved

there should be alignment and consistency between quality control, quality assurance and external assurance processes through common definitions and agreement on what is to be measured and how

the focus should be both retrospective (risks to outcomes are being effectively managed) and prospective (emerging risks are being identified and treated).

The rolling random sample surveys of payment correctness form an integral part of the BAF in relation to accuracy of outlays and payment correctness. Implementation of these surveys was completed during 2003-04. The surveys use definitions of accuracy of outlays, payment

correctness and sources of error agreed between FaCS and Centrelink under the BAF. The information from the surveys is also used in identifying and analysing program steps deemed critical to payment correctness.

Further development of the BAF has been undertaken as part of the Alliance 2004 project with Centrelink and focuses on services to customers provided through Centrelink such as referrals to services, participation support and information on rights and responsibilities. FaCS and Centrelink have agreed key risks to the delivery of these services and are working together to develop definitions and methodologies for measurement of the quality of controls. The work is expected to be completed during 2004-05.

The development of the FaCS service delivery framework will guide program managers in establishing and managing service delivery arrangements with other providers. This will be informed by the work on the development of the BAF with Centrelink to support risk management within FaCS.

AchievementsSavings to outlays In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe

data indicated that review activity achieved $104.16 million in savings to future fortnightly outlays.

Review activity raised debts of $452.82 million.

Review activity In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe

data indicated that Centrelink reviewed 4 108 593 social security payments. Of these, 958 772 were compliance reviews.

It is estimated that compliance review activity resulted in 157 977 social security payments (16.48 per cent) being reduced. Overall, 18.72 per cent of compliance reviews identified an incorrect payment.

Debt raising and recovery Centrelink raised 1 538 486 FaCS and Family Assistance Office debts, valued at $922.18

million. Of these, debts raised for recovery totalled $891.82 million, with the balance being waived at determination.

Recoveries of FaCS and Family Assistance Office debts by cash and withholdings amounted to $678.55 million. These figures include compensation debts.

Total recoveries were equivalent to 76 per cent of the amount of new debt raised over the same period, and 91 per cent of total recoveries were raised within 56 days (target: 80 per cent).

These figures exclude Child Care Benefit and Family Tax Benefit reconciliations and tax return non-lodger debts.

ProsecutionsIn 2003-04, 4462 cases of alleged social security fraud were referred to the Director of Public Prosecutions. The courts dealt with 3043 cases resulting in 2977 (98 per cent) convictions. 87 per cent of cases met the quality requirements of the Director of Public Prosecutions (target: at least 80 per cent).

Budget measures

PreventionRisk profile review activities for Youth Allowance and Austudy were aligned with those of other payments to minimise incorrect payments and debts for these customer groups. Face-to-face reviews of Parenting Payment customers were introduced to enable timely interventions for customers at risk of being incorrectly paid.

DetectionExpanded data matching enabled newly available data sources—such as income reported against Australian Business Numbers, Pay-As-You-Go payment summaries from the Tax Office and Job Network placements in casual employment data—to be accessed.

Risk profiling capability for the Age Pension program was expanded to review arrangements for customers at risk of failing to declare changes in their real estate holdings.

An increased focus on identity fraud investigations using increased external and internal data sources occurred. Additional services from the Australian Federal Police and the Director of Public Prosecutions were purchased.

Research and developmentAs part of the 2003-04 Budget, FaCS was provided with funding to coordinate the research, development and analysis of perceived risks to FaCS outlays, including:

research into awareness and community awareness and attitudes towards biometric technologies

research into the impact of the cash economy on FaCS outlays

exploring the use of geographical risk mapping software to enhance existing profiling measures

exploring the effectiveness of current prosecution arrangements in deterring fraud

involvement in a cross-agency data-cleansing project to quantify dubious records in identity registers of the Australian Government and state and territory governments

research into study-related debt.

An independent review of compliance arrangements was conducted as requested by ministers for consideration in the 2004-05 budget process.

Other projects included the purchase of data-mining software, research into compliance motivation, assessment of random sampling methodology, research into prosecution, marriage-like relationships, and research by the Securities Industry Research Centre of Asia-Pacific (SIRCA) to investigate and manage identity fraud.

Social Security Appeals TribunalThe Social Security Appeals Tribunal (SSAT) is part of the FaCS portfolio and is responsible to the Minister for Family and Community Services. It is a statutory body created by the Social Security (Administration) Act 1999 to conduct merits review of administrative decisions made under a number of enactments, in particular the social security law and family assistance law.

Tribunal structure and membershipThe SSAT consists of an Executive Director, directors, members and staff. The current Executive Director, Mr. Les Blacklow, was appointed for a three-year term from 1 April 2002. The Secretary of FaCS delegates financial and employment powers to the Executive Director.

The Executive Director of the SSAT is responsible to the Minister for Family and Community Services for the overall operation and administration of the tribunal, including taking reasonable steps to ensure that its decisions are consistent and that it performs its functions efficiently and effectively.

The National Office of the SSAT is in Melbourne. The National Manager and staff in the National Office assist the Executive Director.

There is an office of the tribunal in each state and territory, each headed by a director. The director of the Victorian office is also responsible for the Tasmanian office, the director of the Queensland office is responsible for the Northern Territory office, and the director of the New South Wales office is responsible for the Australian Capital Territory office.

At 30 June 2004, the tribunal had 151 members, working either full-time or part-time. Members are selected for general skills such as an understanding of and commitment to the principles of administrative review, a knowledge of the social security system, interpersonal skills and particular expertise in disciplines such as law, welfare or community work, medicine or public administration.

The Governor-General in Council appoints the Executive Director, directors and members. This demonstrates a clear demarcation between FaCS personnel and tribunal membership.

In line with its reporting obligations under section 25 of Part 3 of Schedule 3 to the Social Security (Administration) Act, the Executive Director submits an annual report to the Minister for Family and Community Services, to be laid before both Houses of Parliament.

GovernanceUnder the tribunal’s corporate governance arrangements, the Executive Group advises and assists the Executive Director in the overall operation and administration of the core business of the SSAT. Chaired by the Executive Director, with the National Manager and directors as members, this group focuses principally on the strategic direction and overall performance of the tribunal.

The SSAT is a member of the Council of Australasian Tribunals.

Appeal management and customer serviceAs provided for in the Social Security (Administration) Act, the tribunal provides a review mechanism that is ‘fair, just, economical, informal and quick’. To this end, it is independent of Centrelink and FaCS.

The SSAT’s Strategic Plan for 2003-05 sets out its core values and service standards, within the framework of its primary objectives.

In 2003-04, 9282 appeals were lodged with the tribunal. At the start of the year, 1392 appeals were on hand. During the year, the tribunal finalised 9328 appeals involving review of 10 271 separate decisions. The average time between the lodging and finalising of an appeal was 8.6 weeks. At 30 June 2004, 1346 appeals were on hand.

The SSAT provides a quarterly performance report to the minister.

Relationship managementAlthough the tribunal has the independent power to review appeals, the tribunal has a memorandum of understanding with FaCS for administrative services that support the tribunal in functioning effectively; an updated memorandum of understanding is being negotiated. The SSAT purchases the use of FaCS financial and personnel management information systems to assist in performing its purchasing, accounts payment, budgeting and staff management functions.

In June 2003, the tribunal signed an Administrative Arrangements Agreement with Centrelink, aimed at establishing a long-term professional relationship between both organisations. The key focus of this agreement is to enhance service delivery outcomes for appellants and to improve liaison across a broad range of administrative matters. Both parties monitor compliance with this agreement, which will be reviewed in December 2004 for a further three-year period.

Financial managementFunding for the tribunal’s running costs (salary, administration, property and IT) is provided in the FaCS operational budget. While the tribunal prepares and submits budget bids to FaCS to incorporate into total portfolio requirements, it does so in aggregate. FaCS provides funds to the tribunal in fortnightly instalments of one twenty-sixth of the budget allocation.

The tribunal manages its own financial resources. In 2003-04, the tribunal operated within its budget of $13.03 million.

People managementThe tribunal is responsible for managing its human resources. It purchases human resource policy advice and administrative support from FaCS, as required, to perform this function.

As mentioned above, FaCS performs some administrative functions on behalf of the tribunal, such as leave processing and payment of salaries and fees for all tribunal staff and members.

Information managementThe tribunal has its own electronic appeal management system to manage and administer the lodgment of appeals. The tribunal purchases IT infrastructure services from FaCS.

Risk managementThe tribunal has a security and fraud control plan, and has implemented the Government Online Strategy and the Commonwealth Disability Strategy. It uses a comprehensive internal audit program to provide a framework for the measurement (both quantitative and qualitative) of performance and identification of risk across all areas of tribunal activity.

Service charterThe tribunal’s service charter expresses its commitment to providing high-quality, timely and courteous services to its applicants and stakeholders.

Part 3 I AppendixesAppendix 1 I Staffing overviewThe following tables provide details of Australian Public Service (APS) employees (ongoing and non-ongoing) employed under the Public Service Act 1999 in 2003-04. The tables include

aggregated information on salary, performance pay and non-salary benefits to which staff were entitled under the certified agreements and Australian workplace agreements of the Department of Family and Community Services (FaCS), the Child Support Agency (CSA) and the Social Security Appeals Tribunal (SSAT).

Staff numbers in Table 75 reflect the number of people employed under the Public Service Act on 30 June 2004.

The financial and staffing resources summary tables that appear against each outcome and output group provide details of staffing years in terms of full-time equivalent numbers. Due to the impact of part-time employees and employees on leave without pay during the reporting period, the ‘staffing years (numbers)’ are less than the staff numbers in the tables below.

Classification streams—FaCS, CSA and SSATTable 74: Staffing overview—explanation of different classification streams

APS class (applies to CSA) FaCS (excluding CSA and SSAT)

SSAT

Senior Executive Service (SES) Senior Executive Service -

Executive Officer Level 2 FaCS Executive Level 2 SSAT 5

Executive Officer Level 2 FaCS Executive level 2 SSAT 5

Executive Officer Level 1 FaCS Executive Level 1 SSAT 4

Australian Public Service Level 5-6 FaCS Broadband Level 3 SSAT 3

Australian Public Service Level 3-4 FaCS Broadband Level 2 SSAT 2

Australian Public Service Level 1-2 FaCS Broadband Level 1 SSAT 1

Australian Public Service Level 4 to Executive Officer Level 1

Public Affairs Officer -

Executive Officer Level 2 Senior Public Affairs Officer -

Australian Public Service Level 3 to Executive Officer Level 2

Legal Officer 1 -

Executive Officer Level 2 Legal Officer 2 -

Staff by gender—FaCS, CSA and SSATTable 75: Staffing overview—actual ongoing and non-ongoing full and part-time staff by gender at 30 June 2004

Total staff

Ongoing full-time

Ongoing part-time

Non-ongoingfull-time

Non-ongoingpart-time Total

Total staff

Men1343 68 48 5 1464

Women2764 629 114 29 3536

5000FaCS (excluding CSA and SSAT)

Ongoing full-time

Ongoing part-time

Non-ongoingfull-time

Non-ongoingpart-time Total

Men560 38 29 4 631

Women943 239 50 22 1254

1885CSA

Ongoing full-time

Ongoing part-time

Non-ongoingfull-time

Non-ongoingpart-time Total

Men783 30 9 0 822

Women1820 388 26 5 2239

3061SSAT

Ongoing full-time

Ongoing part-time

Non-ongoingfull-time

Non-ongoingpart-time Total

Men0 0 10 1 11

Women1 2 38 2 43

54

Staff by classificationTable 76: Staffing overview—actual staff by classification in the relative levels of the larger classification groups and by state and territory at 30 June 2004

Total FaCS staff (including CSA, excluding SSAT)Classification ACT QLD NSW VIC SA WA NT TAS TotalGraduates/Cadets/Research Officers 20 2 2 1 1 26

Australian Public Service Level 24 26 34 19 9 12 2 4 130

Total FaCS staff (including CSA, excluding SSAT)1-2

Australian Public Service Level 3-4 241 457 711 393 188 195 10 123 2318

Australian Public Service Level 5-6 550 210 239 186 87 107 20 40 1439

Legal Officer 16 6

Legal Officer 29 9

Public Affairs Officer22 22

Executive Officer Level 1 and equivalents 522 38 43 29 14 17 8 7 678

Executive Officer Level 2 and equivalents 203 13 16 11 3 3 7 1 257

Senior Executive Service Band 1 38 2 4 2 2 1 49

Senior Executive Service Band 2 9 9

Senior Executive Service Band 3 2 2

Secretary1 1

Total staff 1647 748 1047 642 302 335 49 176 4946FaCS (excluding CSA and SSAT)

Classification ACT QLD NSW VIC SA WA NT TAS TotalGraduates/Cadets,'Research Officers 18 18

FaCS Broadband Level 124 5 6 2 1 2 1 41

FaCS Broadband Level 2146 21 27 23 7 8 7 8 247

FaCS Broadband Level 3456 58 82 67 37 34 20 12 766

FaCS Executive Level 1469 12 14 8 6 6 8 3 526

FaCS Executive Level 2176 4 5 4 2 2 7 200

Legal Officer 16 6

Legal Officer 29 9

Public Affairs Officer22 22

Senior Executive Service Band 32 1 2 1 2 1 39

Total FaCS staff (including CSA, excluding SSAT)1

Senior Executive Service Band 2 8 8

Senior Executive Service Band 3 2 2

Secretary1 1

Total 1369 101 136 105 52 51 46 25 1885Table 76: Staffing overview-actual staff by classification in the relative levels of the larger classification groups and by state and territory at 30 June 2004 continued

CSA

Classification ACT QLD NSW VIC SA WA NT TAS TotalGraduates

2 2 0 2 1 1 0 0 8

Australian Public Service Level 10 1 7 2 2 2 0 0 14

Australian Public Service Level 20 20 21 15 7 9 0 3 75

Australian Public Service Level 347 258 418 210 134 110 2 85 1264

Australian Public Service Level 448 178 266 160 47 77 1 30 807

Australian Public Service Level 544 82 75 62 26 44 0 14 347

Australian Public Service Level 650 70 82 57 24 29 0 14 326

Executive Officer Level 153 26 29 21 8 11 0 4 152

Executive Officer Level 227 9 11 7 1 1 0 1 57

Senior Executive Service Band 16 1 2 1 0 0 0 0 10

Senior Executive Service Band 21 0 0 0 0 0 0 0 1

Total 278 647 911 537 250 284 3 151 3061SSAT

National Office ACT QLD NSW VIC SA WA NT TAS Total

SSAT 11 2 3 1 1 8

SSAT 22 1 4 6 6 4 2 1 26

SSAT 36 1 1 1 1 2 12

SSAT 42 1 1 1 5

SSAT 53 3

Total 13 1 7 10 11 5 5 0 2 54

Salary ranges by classification—FaCS, CSA and SSATTable 77: Salary ranges by classification at 30 June 2004

FaCS (excluding CSA and SSAT)

Low ($) High($)

SES Band 3 166 073 17 1334

SES Band 2 130 222 134 345

SES Band 1 103 968 107 261

FaCS Executive Level 2A 91 118 91 118

FaCS Executive Level 2B 77 404 88 168

FaCS Executive Level 1 66 441 74 014

FaCS Broadband 3 50 471 60 420

FaCS Broadband 2 39 605 48118

FaCS Broadband 1 29 946 38 141

Graduate APS 29 946 38 141

CSA

Low ($) High($)SES Band 2

SES Band 1

Covered by FaCS

remuneration policy

Covered by FaCS

remuneration policy

Executive Officer Level 2 82 640 101 446

Executive Officer Level 1 66 575 71 891

APS Level 6 53 225 59 657

APS Level 5 48 083 51 507

APS Level 4 43 111 47 328

APS Level 3 38 679 41 747

FaCS (excluding CSA and SSAT)

APS Level 2 34 893 37 659

APS Level 1 31 015 33 306

Graduate APS 38 679 38 679

SSAT

Low ($) High($)

SSAT 5 77 564 90 876

SSAT 4 63 166 72 619

SSAT 3 50 357 60 260

SSAT 2 40 357 48 216

SSAT 1 30 311 38 039

Performance payTable 78: Staffing overview-performance pay at 30 June 2004

FaCS (excluding CSA and SSAT)

Level Number

Aggregatedamount

$Average

$Minimum

$Maximum

$

SES 3 & SES 2a 12 81 576 6798 0 9 885

SES 1 36 197 784 5494 0 8 785

FaCS Executive Level 2A 7 36 738 5248 0 11 117

FaCS Executive Level 2B 40 240 411 6010 0 10 987

FaCS Executive Level 1 21 103 380 4923 372 6 650

Total 116 659 889

CSA

Level Number

Aggregatedamount

$Average

$Minimum

$Maximum

$

SES 2 and SES 1a 7 47 747 6821 6188 9119

FaCS (excluding CSA and SSAT)

Executive Officer Level 2 and Executive Officer Level 1a 20 116 790 5840 4314 7265

Total 27 164 537a. Figures have been aggregated to protect employees’ privacy.

Australian workplace agreements and certified agreementsTable 79: Staffing overview-staff under Australian workplace agreements and certified agreements at 30 June 2004

FaCS (excluding CSA and SSAT) CSA SSAT

Staff covered by certified agreements 1758 2990 53

SES Non-SES SES Non-SES SES Non-SESStaff covered by Australian workplace agreements 56 71 10 61 - 1

Table 80: Staffing overview—non-salary benefits at 30 June 2004

FaCS (excluding CSA and SSAT)

Non-SES staff-certified agreement

access to employee assistance program

mobile phone for official and incidental personal use

airline lounge membership

child and elder care information and referral service

school holiday child care subsidy

family care rooms

reimbursement of extra costs for family care

study assistance

time off for long business travel

business class travel for long-haul flights

flexible remuneration packaging

assistance with public transport and parking costs

influenza vaccination

contributions towards promoting good health

4WD driver training for staff required to service remote localities

Non SES staff-Australian workplace agreements

all of the above benefits except flextime cash-out

recreation leave cash-out

home office equipment

support for professional and personal development

SES staff—Australian workplace agreements

all of the above benefits except flextime cash-out

motor vehicle for official and private use; fuel and parking

Child Support Agency

Staff up to Executive Level 1—certified agreement

Christmas shut-down

FlexTime, FlexBank and Flexcount

leave cash-out and leave purchase entitlements

carer and parental leave

access to flexible working arrangements

Executive Level 2 staff—Australian workplace agreements

mobile phone for work-related use

$250 per year reimbursement for health-related activities or purchases

airline lounge membership

Visa travel card

SES staff—Australian workplace agreements

SES private-plated vehicle

mobile phone for work-related use

home office

Visa card for business expenses

airline lounge membership

support for personal and professional development

SSAT

access to child care information and referral and school holiday subsidies

Flextime

leave purchase provisions

carer leave, parental leave and adoption leave

study assistance scheme

influenza vaccinations

healthy lifestyle program

Appendix 2 I Commonwealth Disability Strategy performance reportFaCS reports in this appendix its performance against the policy, purchaser and employer roles set out in the Commonwealth Disability Strategy. The Social Security Appeals Tribunal reports in its own annual report.

FaCSMost branches in FaCS collected data for this report over a sample period from April to June 2004. Three branches achieved better practice through collecting the data as part of their regular ongoing management information gathering.

Disability actionFaCS’ core business of policy advising and program management includes improving outcomes for people with disabilities. FaCS has continued to work to improve access to its policies, programs and facilities for people with disabilities. The FaCS Disability Action Plan 2001–04 sets out the actions and responsibilities agreed by the department to make accessibility part of normal business processes. The Plan is consistent with the Commonwealth Disability Strategy.

Some highlights in 2003-04:

FaCS appointed a Disability Access Coordinator whose role is to ensure that equity principles are incorporated into all people management issues, policies and services within FaCS

the FaCS Disability Stakeholder Group met in May 2004 to help plan for a recruitment and retention strategy for staff with disabilities. The strategy will be incorporated into the new FaCS Diversity Plan and will encompass a reasonable adjustment policy

procedures for requests for policy costing now include a reminder for staff to consider accessibility issues when developing new policy or revising existing policy.

FaCS continued to make incremental improvements in the accessibility of its information and in embedding accessibility issues in its mainstream processes

FaCS’ 2002-03 annual report received a Silver Award from the Institute of Public Administration of Australia for the ease with which the online version of the report can be accessed.

Room for improvementFaCS is evaluating the effectiveness and ongoing role of its Disability Action Plan in integrating disability access and opportunities into all areas of FaCS business. The review is being undertaken in consultation with the disability sector and is expected to be completed by the end of 2004.

FaCS staff generally have a high level of awareness of disability issues. The rigour of data collection against the Commonwealth Disability Strategy (CDS) performance indicators, however, continues to be problematic despite FaCS’ efforts to improve the consistency of reporting. The underlying cause appears to be the disconnect between CDS performance monitoring and FaCS’ core business work flow management and information. This issue is within the scope of the current review of FaCS’ action plan.

Table 81: FaCS—performance report against the Commonwealth Disability Strategy reporting framework for the sample period April to June 2004

POLICY ADVISER ROLE

Performance indicator Performance measure Current level of performance

New or revised program/policies assess impact on the lives of people with disabilities prior to decision

Percentage of new or revised policy/program proposals that document that the impact of the proposal was considered prior to the decision-making stage

90 per cent (up from 85 per cent)

People with disabilities are included in consultations about new or revised policy/ program proposals

Percentage of consultations about new or revised policy/program proposals that are developed in consultation with people with disabilities

92 per cent (up from 85 per cent)

Public announcements of new, revised or proposed policy/program initiatives are available in accessible formats for people with disabilities in a timely manner

Percentage of new, revised or proposed policy/program announcements available in a range of accessible formats Time taken in providing announcements in accessible formats

94 per cent (up from 90 per cent)

FaCS has a service standard for provision of these documents

PURCHASER ROLE

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in: accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in: electronic formats

100 pa cent (no change)

Branches reported that they met FaCS’ accessible information standard

formats other than electronic

Processes for purchasing goods or services with a direct impact on the lives of people with disabilities are developed in consultation with people with disabilities

Percentage of processes for purchasing goods or seivices that directly impact on the lives of people with disabilities that are developed in consultation with people with disabilities

98 per cent (up from 85 per cent)

Purchasing specifications and contract requirements fa the purchase of goods and services are consistent with the requirements of the Disability Discrimination Act 1992

Percentage of purchasing specifications for goods and sen-ices that specify that tender aganisations must comply with the Disability Discrimination Act 1992

Percentage of contracts for the purchase of goods and services that require the contractor to comply with the Disability Discrimination Act 1992

99 per cent (up from 98 per cent, reflecting a gradual decrease in the number of older non-standard contracts still active)

FaCS standard contracts include a specific reference to Disability Discrimination Act 1992 from July 2002

Publicly available performance reporting against the purchase contract specifications requested in accessible formats for people with disabilities is provided

Percentage of publicly available purchasing specifications requested and provided in: accessible electronic formats

accessible formats other than electronic

Average time taken to provide accessible material in: electronic formats

formats other than electronic

100 pa cent of performance reports released are publicly available in accessible electronic formats, html or text files (up from 95 per cent)

The time taken to provide these documents was not routinely recorded

Complaints/grievance mechanisms, including access to external mechanisms, in place to address concerns raised about provider's performance

Established complaints/grievance mechanisms, including access to external mechanisms, in operation

Complaints are handled under the FaCS service charter. This includes access to external complaints mechanisms. Under funded seivice agreements, providers are required to have a grievance mechanism in

place and access to another level of resolution if this fails.

EMPLOYER ROLE

Employment policies, procedures and practices comply with the requirements of the Disability Discrimination Act 1992

Number of employment policies, procedures and practices that meet the requirements of the Disability Discrimination Act 1992

100 per cent

Recruitment information for potential job applicants is available in accessible formats on request

Percentage of recruitment information requested and provided in: accessible electronic formats

(html or text files)

accessible formats other than electronic

Average time taken to provide accessible information in: electronic formats

formats other than electronic

100 per cent of all standard recruitment materials are in accessible formats. Advice and support is provided to all recruitment panels and agencies on handling requests for accessible information. A log of all requests for accessible information is maintained.

There were no requests for recruitment information in other formats

Agency recruiters and managers apply the principle of reasonable adjustment

Percentage of recruiters and managers provided with information on reasonable adjustment

100 per cent

Training and development programs consider the needs of staffwith disabilities

Percentage of training and development programs that consider the needs of staff with disabilities

100 per cent

All FaCS core skills learning and development programs include information to enable staff to cater for the needs of peoplewith disabilities

Training and development programs include information on disability issues as they relate to the content of the program

Percentage of training and development programs that include information on disability issues as they relate to the program

100 per cent

FaCS’ priority skills learning and development programs include information on

disability issues relating to the program

One office reported that 60 staff received extensive training on disability issues

Complaint/grievance mechanism, including access to external mechanisms, in place to address issues and concerns raised by staff

Established complaints/grievance mechanisms, including access to external mechanisms in operation

The FaCS certified agreement has an established process for handling complaints and resolving disputes that includes access to external mechanisms

All staff are provided with information on the complaints and grievance mechanisms

Child Support AgencyTable 82: Child Support Agency—performance report against the Commonwealth Disability Strategy reporting framework for the period 2003–04

PURCHASER ROLE

Performance indicator Performance measure Current level of performance

Publicly available information on agreed purchasing specifications is available in accessible formats for people with disabilities

Percentage of publicly available purchasing specifications requested and provided in: accessible electronic

formats

accessible formats other than electronic

Average time taken to provide accessible material in: electronic formats

formats other than electronic

100 per cent for electronic formats

100 per cent for formats other than electronic

The time taken to provide these documents has not been routinely recorded. There were no requests for documentation in other formats.

Processes for purchasing goods or services with a direct impact on the lives of

Percentage of processes for purchasing goods or services that directly impact

No tenders placed had a direct impact on people with disabilities

people with disabilities are developed in consultation with people with disabilities

on the lives of people with disabilities that are developed in consultation with people with disabilities

Purchasing specifications and contract requirements for the purchase of goods and services are consistent with the requirements of the Disability Discrimination Act 1992

Percentage of purchasing specifications for goods and services that specify that tender organisations must comply with the Disability Discrimination Act 1992

Percentage of contracts for the purchase of goods and services that require the contractor to comply with the Disability Discrimination Act 1992

All tender documents made reference to compliance with relevant Commonwealth legislation, including the Disability Discrimination Act 1992

All contracts offered required the contractor to comply with all relevant Commonwealth legislation

Publicly available performance reporting against the purchase contract specifications requested in accessible formats for people with disabilities is available

Percentage of publicly available purchasing specifications requested and provided in: accessible electronic

formats

accessible formats other than electronic

Average time taken to provide accessible material in: accessible electronic

formats

accessible formats other than electronic

CSA did not release any performance measurements or reports against contract purchasing specifications

The time taken to provide these documents has not been routinely recorded

PURCHASER ROLE continuedComplaints/grievance mechanisms, including access to external mechanisms, in place to address concerns raised about the provider’s performance

Established complaints/grievance mechanisms, including access to external mechanisms, in operation

100 per cent

All tender documents contain specific clauses on complaint-handling procedures

PROVIDER ROLE

Providers have established mechanisms for quality improvement and assurance

Evidence of quality improvement and assurance systems in operation

CSA has developed and implemented a comprehensive integrated business management system that includes frameworks for managing quality improvement and assurance

Providers have an established service charter

Established service charter that adequately reflects the

CSA has a client service charter that specifies the roles of the

that specifies the roles of the provider and consumer and service standards which address accessibility for people with disabilities

needs of people with disabilities in operation

provider and the consumer. This document is available on the CSA web site.

Complaints/grievance mechanism, including access to external mechanisms, in place to address issues and concerns raised about performance

Established complaints/grievance mechanism, including access to external mechanisms in operation

100 per cent

CSA has a well-established complaints service that includes access to external mechanisms such as the Commonwealth Ombudsman and the Federal Privacy Commissioner

EMPLOYER ROLE

Employment policies, procedures and practices comply with the requirements of the Disability Discrimination Act 1992

Number of employment policies, procedures and practices that meet the requirements of the Disability Discrimination Act 1992

CSA (General Employees)

Agreement 2002 adheres to relevant Commonwealth legislation, including the Disability Discrimination Act 1992

CSA Deaf Network continued to be supported during 2003-04

CSA continues to review the following policies or programs in keeping with the Disability Discrimination Act 1992: orientation program

entry-level training program

graduate program

team leader development program

human resources management procedures and corporate guidelines

recruitment management procedures

EMPLOYER ROLE continuedRecruitment information for potential job applicants is available in accessible formats on request

Percentage of recruitment information requested and provided in: accessible electronic

formats

accessible formats other than electronic

Average time taken to provide accessible information in: electronic formats

100 per cent for electronic formats

Average time for electronic formats: 24 hours

All recruitment information is available in accessible formats on CSA’s web site and the recruitment contractor’s web site. The recruitment team did not receive any requests for information in non-electronic

formats other than electronic

accessible formats.

Agency recruiters and managers apply the principle of reasonable adjustment

Percentage of recruiters and managers provided with information on reasonable adjustment

100 per cent for recruiters 100 per cent for managers

All recruitment contracts specify that reasonable adjustments are to be made during the recruitment and selection process. All internal recruiters and managers are provided with information and advice on reasonable adjustment.

Training and development programs consider the needs of staff with disabilities

Percentage of training and development programs that consider the needs of staff with disabilities

100 per cent

CSA training database enables employees to identify specific needs at the time of nomination. Training programs are developed taking into account individual learning styles and preferences for accessing information. All training evaluations seek to identify needs not met during the training.

Training and development programs include information on disability issues as they relate to the content of the program

Percentage of training and development programs that include information on disability issues as they relate to the program

100 per cent

Complaint/grievance mechanism, including access to external mechanisms, in place to address issues and concerns raised by staff

Established complaints/grievance mechanisms, including access to external mechanisms in operation

100 per cent

CSA (General Employee) Agreement 2002 has an established process for handling complaints that includes access to external mechanisms. All staff are provided with advice on the complaints/ grievance process during orientation.

Appendix 3 I Advertising and market researchThe information provided in this appendix is required by section 311A of the Commonwealth Electoral Act 1918. A detailed list is provided below.

Table 83: FaCS—expenditure on advertising agencies, 2003–04

Name of organisation Service provided

Total cost ($)

Avant CardNational distribution of 80 000 promotional post cards for National Youth Week 2004 11 276

Drake Advertising

National (excluding Northern Territory and South Australia) production, installation and rental of bus advertising space for National Youth Week 2004 32 748

Fusebox Design

Design of kit products for the Prime Minister’s Community Business Partnership’s corporate social responsibility essay competition 6 902

GridDesign of the Community Business newsletter, editions one and two 9 565

M&C SaatchiFee for the development of tender proposal for More Help for Families communication campaign 5 500

Vinten Browning

Conduct research into welfare reform messages and terminology in order to develop new and accessible language to increase economic and social participation 14 316

Whybin\TBWADevelopment and production of TV, radio and press for More Help for Families communication campaign 1 650 000

Table 84: FaCS—expenditure on direct mail organisations, 2003–04

Name of organisation Service providedTotal cost ($)

Complete Mail and Warehousing

National distribution to schools of information for National Youth Week 2004 4 209

Go Print ACT National distribution for National Youth Week 20032 420

iContact Australia Pty Ltd Mailing of publications on request and from mailing lists 96 383

Table 85: FaCS—expenditure on market research organisations, 2003–04

Name of organisation Service providedTotal cost ($)

Centre for Community Child Health

Research into the information needs of Australian parents 195 327

Eureka Strategic Research Pty Ltd

Developmental research for national campaign to encourage philanthropic giving 67 550

Open Mind Research Group

Marketing research with youth focus groups on ‘The source’ web site (youth portal) 9 875

Open Mind Research Group

Provision of consultancy services for the More Help for Families communication campaign (benchmarking research, tracking research, advertising concept testing) 120 427

ORIMA Research Focus groups with parents as part of consultations on the National Agenda for Early Childhood 92 280

Table 86: FaCS—expenditure on media advertising organisations, 2003-04

Name of organisation Service providedTotal cost ($)

Eryl Morgan Publications Pty Ltd trading as Local Government Focus

Advertising for National Community Business Partnerships Brokerage Service

2 500

HMA Blaze Pty Ltd Radio advertisements for More Help for Families communication campaign 1 684 375

HMA Blaze Pty Ltd Advertising for More Help for Families communication campaign 1 252 499

HMA Blaze Pty Ltd Newspaper announcements on commencement of various international social security arrangements 94 415

HMA Blaze Pty Ltd Advertising-family tax benefit/child care benefit lump sum payments 72 690

HMA Blaze Pty Ltd Advertisement of tender for Indigenous financial literacy research 7 970

HMA Blaze Pty Ltd Advertising in seniors publications for public information program and planning for retirement 7 068

HMA Blaze Pty Ltd Call for submissions to apply for funding from the Local Answers initiative under the Stronger Families and Communities Strategy 67 768

HMA Blaze Pty Ltd Advertising National Disability Conference funding 2003-04 5 432

HMA Blaze Pty Ltd Advertising National Disability Conference funding 2004-05 21 260

HMA Blaze Pty Ltd Call for submissions to apply for funding from the Communities for Children initiative under the Stronger Families and Communities Strategy 42 463

HMA Blaze Pty Ltd Advertising for applications for National Disability Advisory Council vacancies 4 446

Table 86: FaCS-expenditure on media advertising organisations, 2003-04 continued

Name of organisation Service provided

Total cost ($)

HMA Blaze Pty Ltd

Advertising for applications for the 2003 National Indigenous Youth Leadership Group 4 348

HMA Blaze Pty Ltd

Advertising for the Prime Minister’s Community Business Partnership’s corporate social responsibility essay competition 3 995

HMA Blaze Pty Ltd

Advertising for nominations for the Prime Minister’s Employer of the Year Awards 3 630

HMA Blaze Pty Ltd

Advertising for the Prime Minister’s Community Business Partnership National Brokerage Service 3 093

HMA Blaze Pty Ltd

Advertising for tender for National Disability Recruitment Coordinator Service 3 060

HMA Blaze Pty Advertising to promote consultations on business services safety 26 593

Name of organisation Service provided

Total cost ($)

Ltd net

HMA Blaze Pty Ltd

Advertising to support the release of the Security, Quality Services and Choice for People with Disabilities package 21 205

HMA Blaze Pty Ltd

Advertisement seeking public ideas to encourage philanthropy20 090

HMA Blaze Pty Ltd

Advertising for tenders and expressions of interest for the Social Policy Research Services 16 333

HMA Blaze Pty Ltd

Advertising for National Disability Advisory Council community consultation in Geraldton, WA 2 110

HMA Blaze Pty Ltd

Recruitment advertising167 222

HMA Blaze Pty Ltd

Media advertising for various campaigns relating to child care places and child care funding 166 590

HMA Blaze Pty Ltd

Advertising for applications for the 2003 National Youth Roundtable 16 344

HMA Blaze Pty Ltd

Advertising national information sessions for Stronger Families and Communities Strategy 15 829

HMA Blaze Pty Ltd

Advertising for submissions to the review of the Carer Allowance (child) Lists of Recognised Disabilities 14 461

HMA Blaze Pty Ltd

Advertising for the Prime Minister’s Awards for Excellence in Community Business Partnerships 131 081

HMA Blaze Pty Ltd

Advertisement calling for submissions for funding from the Early Childhood—Invest To Grow initiative under the Stronger Families and Communities Strategy 11 940

HMA Blaze Pty Ltd

Advertising for additional disability employment assistance places— request for submissions 11 070

HMA Blaze Pty Ltd

Advertorial promoting winners of the Prime Minister’s Employer of the Year Awards 11 000

HMA Blaze Pty Ltd

Corporate philanthropy feature in The Australian10 035

HMA Blaze Pty Ltd

Advertising for National Disability Advisory Council community consultation in Mt Gambier, SA 1 805

Table 86: FaCS—expenditure on media advertising organisations, 2003–04 continued

Name of organisation Service provided

Total cost ($)

HMA Blaze Pty Ltd Advertising the availability of personal counselling for people in drought-affected rural areas 6 995

Horizon PR Public relations and sponsorship for National Youth Week 2003 and 2004 234 850

Horizon PR Distribution of media releases for National Youth Week 20041 955

Media Monitors Media monitoring service for National Youth Week 20046 070

Name of organisation Service provided

Total cost ($)

News Limited Feature on the 2003 Prime Minister’s Awards for Excellence in Community Business Partnerships 444 098

Radiowise Media Networks

Production of advertising material for radio communications aimed at seniors 19 200

SENSIS Placement of the Child Care Access Hotline in the yellow and white pages, including online 129 387

Child Support Agency-expenditureTable 87: Child Support Agency—expenditure on direct mail organisations, 2003–04

Name of organisation Service providedTotal cost ($)

Canprint Communications

Mail-out of CSA Update magazine to subscribers11 196

Electronic Delivery Service Pty Ltd

Management of document distribution (undertaken by Salmat Document Management Solutions Pty Ltd) 79 224

Rothfield Mail-out of CSA publications to clients from Internet orders 12 128

Table 88: Child Support Agency—expenditure on market research organisations, 2003–04

Name of organisation Service providedTotal cost ($)

Blue Moon Research and Planning Pty Ltd

Market research on newly separated unemployed parents 47 520

Blue Moon Research and Planning Pty Ltd

Customer testing of Getting Started publications 24 200

Blue Moon Research and Planning Pty Ltd

Market research on new product (Me and My Money booklet) 23 100

Chant link & Associates Customer research-professionalism survey39 820

Client Wise Customer satisfaction research93 468

Colmar Brunton Electronic service delivery research31 300

Colmar Brunton Evaluation of Direct Telephone Support Service 20 000

Colmar Brunton Social and market research on CSA products and services 111 086

Corporate Diagnostics Pty Ltd Market research with CSA customers (Qld)2 933

MRA Market Research Associates

Customer research for Me and My Kids booklet33 550

Table 89: Child Support Agency—expenditure on media advertising organisations, 2003–04

Name of organisation Service provided

Total cost ($)

HMA Blaze Pty Ltd Recruitment advertising 89 486

Manpower Services (Aust) Pty Ltd Recruitment advertising 8 045

Southern Cross Radio

Radio advertising to promote community information sessions 28 840

Appendix 4 I Competitive tendering and contractingCompetitive tendering and contractingCompetitive tendering and contracting (CTC) is the process by which the responsibility for delivery of services previously performed in-house is transferred to an external organisation.

FaCS has had in place for a number of years a range of CTC contracts that have had a significant impact on its administrative work. Several of these have been reviewed, renewed or replaced during the financial year in accordance with existing contractual provisions, changes in the department’s business needs or amended service-level requirements.

The Child Support Agency (CSA) has undertaken a strategy of sourcing services that achieves value for money in service delivery. The sourcing strategy considers both internal and external service providers. CSA is considering alternative service options for its information technology and corporate service requirements, which have previously been provided under service level agreements with the Tax Office.

FaCS, including the CSA, did not have any contracts exempt from the gazettal requirement during 2003-04.

CTC contracts—additional informationThe following list reports on CTC contracts of $100 000 and above that were entered into, or remained current, during 2003-04. Details of all contracts above $100 000 are available on the department’s web site in accordance with Senate Order No. 192.

Payments under these contracts are on a GST-inclusive basis.

Acme ConsultingThe arrangement in place is the result of an open tender process to select a panel of providers to undertake professional writing and editing services for FaCS. The panel allows relevant expertise to be drawn on as required. The current contract commenced on 1 April 2003 and will expire on 1 April 2006. Expenditure for financial year 2003-04 was $137 957.

Acumen Alliance (ACT) Pty LtdIn December 2001 the CSA executed a contract with Acumen Alliance (ACT) Pty Ltd as a result of an open tender process for the provision of national occupational health and safety services. The contract has been varied and now expires in June 2005. Expenditure for the financial year 2003-04 was $609 540.

CITECThe arrangement in place with CITEC results from FaCS’ decision to establish its own corporate enterprise resource planning systems using the SAP R/3 application. An open tender process was

conducted and CITEC was engaged under the Commonwealth Government Information Technology and Communications’ terms and conditions dated 1 October 1998 under the whole-of-government head agreement. This contract provides SAP R/3 bureau services and related network services. A change order was executed in November 2002 and the contract now expires in November 2005. Expenditure for financial year 2003-04 was $1 360 368.

Corrs Chambers WestgarthFollowing a restricted tender to firms listed on the Office of Asset Sales and Commercial Support’s panel of contractors, a standing offer arrangement was entered into with Corrs Chambers Westgarth. Corrs Chambers Westgarth provides specialist legal and probity advice in support of FaCS’ market testing of corporate services. Expenditure for financial year 2003-04 was $60 208.

DBM AustraliaAs a result of an open tender process, DBM Australia was contracted to provide career support services for staff of FaCS affected by the market testing of corporate services. Expenditure for financial year 2003-04 was $92 566.

DGJ Projects Pty LimitedFollowing an open tender process DGJ Projects Pty Limited (now known as Deacons Projects) was engaged to manage FaCS’ Legal Services Branch. The original contract was for a 12-month period but was extended to 14 March 2004 to enable FaCS to undertake market testing of its legal services. Following a decision not to award a contract from the market-testing process, the contract was extended for further three more months to 30 June 2004. This enabled FaCS to review its legal service requirements, choose the best model for provision of services, and undertake a procurement process. Expenditure for the financial year 2003-04 was $560 392 for management, $542 010 for special projects and $613 134 for supplementary advice.

Ernst & YoungErnst & Young were engaged, following an open tender process, to provide internal audit, risk management, fraud control and investigation and business continuity planning services. The nature of the contract provides FaCS with an opportunity to establish a partnering arrangement with a focus on business improvement. Expenditure for financial year 2003-04 was as follows:

delivery of audit services: $577 538

risk management and business continuity planning: $47 630

fraud control: $35 895.

Forstaff Australia Pty LtdIn 2000 the CSA conducted an open tender for the provision of entry-level staff. A standing offer arrangement with Employment National (Administration) Pty Ltd was entered into in February 2001 for a period of two years. This was novated to IMP Group (Australia) Pty Ltd trading as Ozjobs on

20 December 2002 on the sale of Employment National. The contract was extended for a further period of two years to February 2005. The contract has since been novated to Forstaff Australia Pty Ltd on 26 February 2004 on the sale of Ozjobs. Expenditure for financial year 2003-04 was $880 627.

iContactThe arrangement in place was a consequence of FaCS’ decision to establish a central warehouse, fulfilment and distribution service to meet the department’s needs. An open tender process was conducted and iContact was engaged for a period of three years. The contract was extended for a further year and expires on 23 April 2005. Expenditure for financial year 2003-04 was $1 960 744.

Manpower Services (Australia) Pty LtdIn 2000 the CSA conducted an open tender for the provision of entry-level staff. A standing offer arrangement with Manpower was entered into in February 2001 for a period of two years. This was extended for a further period of two years to February 2005. Expenditure for financial year 2003-04 was $232 804.

Media Monitors ACTAs a result of an open tender process, Media Monitors ACT were selected to provide a daily press clipping service for FaCS. The contract commenced in March 2004 and will expire in June 2005. The total value of the contract is expected to be $163 000. Expenditure under this contract for the financial year 2003-04 was $26 737.

Media Monitors ACTAs a result of an open tender process, Media Monitors ACT were selected to provide a broadcast monitoring service for FaCS. The contract commenced in March 2004 and will expire in June 2005. The total value of the contract is expected to be $75 000. Expenditure under this contract for the financial year 2003-04 was $14 125.

Mercer CommunicationsThe arrangement with Mercer Communications resulted from the decision to separate FaCS telecommunication responsibilities from Centrelink. From a select tender process Mercer Communications were contracted to assist with the separation, and provide the department with voice management services. The contract is currently on a month-by-month arrangement, and is being reviewed. Expenditure for financial year 2003-04 was $260 578.

Stocklands Property ManagementThe arrangement with Stocklands Property Management was in place prior to the Administrative Arrangement Orders in October 1998, when two divisions of the former Department of Health and Family Services transferred to the Department of Family and Community Services. FaCS has continued to use the services provided under the arrangement. The contract expired on 30 June 2002 and the arrangement continued until the open tender for property management services was finalised in January 2004. Expenditure for financial year 2003-04 was $141 416.

United KFPWFollowing an open tender process, a three-year contract was entered into from 14 January 2004 with United KFPW to undertake property management services on behalf of the department. Expenditure for the financial year 2003-04 was $108 945.

Wilton Hanford Hanover Pty LtdWilton Hanford Hanover Pty Ltd was chosen as a result of a select tender process conducted in November 2002 to project manage the production and distribution of a consolidated child care service handbook. This contract was extended from September 2003 to project manage the production and distribution of the second edition of the child care service handbook. This contract expired on 31 July 2004. Expenditure for the financial year 2003-04 was $354 846.

Market testingAgencies subject to the Financial Management and Accountability Act 1997 must market-test relevant activities and services, beginning with corporate services—that is, they must invite external service providers to tender for business.

In 2003-04 FaCS completed its market-testing program, approaching the market for property and legal services. The contract for property was finalised in 2003-04. The contract for legal services is due to commence in 2004-05.

Following the examination of FaCS’ ministerial, parliamentary, media and public relations services and the consideration of the risks and experiences of other agencies, FaCS decided not to proceed to market- test these services. Instead, FaCS has commenced a program of continuous business improvement processes that may result in selective outsourcing.

Appendix 5 I ConsultantsFaCS’ responsibilities for both policy matters and the delivery of government services often require the use of consultant expertise. Consultants are generally engaged when particular specialist expertise is necessary, sufficiently skilled expertise is not immediately available in-house, or independent advice on an issue is required.

The services provided by consultants include information gathering, research, data analysis, surveys of customers, different types of financial activities and the provision of technical expertise.

The engagement of consultants is carried out in the same manner as the department’s other procurement activities — that is, consistent with the Commonwealth Procurement Guidelines and the department’s Chief Executive Instructions. The priority is to obtain value for money. Competitive processes are, as far as possible, used for the selection of consultants, and the Chief Executive Instructions contain guidelines for the approval of expenditure.

The department did not have any contracts exempted from the gazettal requirement during 2003-04.

New consultancies of $10 000 or moreTable 90: below set out details of new consultancies let to the value of $10 000 or more during 2003-04.

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

3 Dimensional Consulting Pty Ltd

Consultancy service for development of and technical support of AMSWIN (SSAT case management system)

50 000 Biv A, D

3 Dimensional Consulting Pty Ltd

Consultancy service for conversion of AMSWIN reports to CRYSTAL reports (SSAT case management system)

80 000 Biv A, D

3 Dimensional Consulting Pty Ltd

Consultancy service for enhancements to AMSWIN (SSAT case management system)

50 000 Biv A, D

Accenture Australia Holdings Pty Ltd

FaCS Online Funding Management System (FOFMS) implementation plan and scoping plan

35 200 A A, D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

Access Economics Pty Ltd

Consultancy services in relation to research on state and territory expenditure on homelessness since 1994-95

87 945 Bii B, E

Acumen Alliance Probity audit of the Stronger Family and Community Strategy 2004

20 000 Bii C, D

Adelaide Central Mission

A study on breaching Centrelink guidelines and homelessness

11 000 Bv E

AIDS Council of NSW

A study on homelessness and same-sex domestic violence in the Supported Accommodation Assistance Program (SAAP)

11 000 Bv E

Alan Stewart Consulting Services WA

Site visits and stakeholder interviews related to the review of the Buddies— Disability Employment Assistance Program

34 782 Biii B

Allen Consulting Group

Independent review of FaCS Compliance Framework

290 790 Bi C, D

ARTD Pty Ltd Consultancy services to assist with stage 1 of the evaluation of the Disability Employment Assistance Program

30 000 Biv E

ARTD Pty Ltd Development of an evaluation framework and plan for the reform package to improve employment assistance for people with disabilities

16 500 Bv D

ARTD Pty Ltd Disability Employment Assistance Services Program quality strategy mid-term review

120 000 A C

ARTD Pty Ltd Evaluation of the Green Corps Program—Young Australians for the Environment

128 800 Bv A, C

Ascent Consulting Pty Ltd

Telephony services review for CSA 27 552 Biv C

AustralAsia Economics Pty Ltd

Provision of contract services in relation to the development of an evaluation framework for Fixing Houses for Better Health projects

13 500 C E

Australian Bureau of Statistics

Consultancy services for the provision of a confidentialised unit record file from the 1999 child care survey

26 000 C B

Australian Consultancy services for the 50 000 C B

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

Bureau of Statistics

provision of a confidentialised unit record file from the 2002 child care survey

Australian Healthcare Associates Pty Ltd

Consultations with Commonwealth-funded advocacy services, and information collection in relation to disability employment reforms

16 650 A B, C

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant Consultancy service contracted

Total value of contract $

Howengaged

Justification

Australian Healthcare Associates Pty Ltd

Consultations with Commonwealth-funded advocacy services, and information collection in relation to disability employment reforms

57 255 A B, C

Australian Healthcare Associates Pty Ltd

Consultancy services in relation to analysis of data and preparation of the Commonwealth-State and Territory Disability Agreement (CSTDA) national public report 2002-03

76 423 A A, D

Australian Housing and Urban Research Institute

A literature review to analyse and compare Australian and international approaches to homelessness

34 721 Bii, Biv A, C, D

Australian Housing and Urban Research Institute (Curtin University)

Research into impact of SAAP on community capacity and self-reliance

84 948 Bii, Biv A, C, D

Australian Institute of Criminology

Research into ex-prisoners, SAAP and homelessness

77 129 Bi A, C, D, E

Australian Institute of Family Studies

Analysis of the impact of activity requirements for Parenting Payment customers on their children aged 13-15 years

87 477 Bii B, C, D, E

Australian Institute of Family Studies

Evaluation of methodologies for producing cost- benefit analyses of early childhood interventions

71 610 Bv D

Australian National University

Project researching fairness and deterrence effects in prosecution of social security fraud in Australia

36 590 Bii E

Name of consultant Consultancy service contracted

Total value of contract $

Howengaged

Justification

Australian National University

Research into intergenerational transmission of dependence on income support: patterns, causation and implications for Australian social policy

1 160 060 Bi B, D

Australian National University

Investigation of the perceived fairness of prosecution action taken against individuals prosecuted for social security or tax fraud

87 272 Bii E

Australian National University

Analysis and report on findings using the FaCS Longitudinal Data Set (LDS)

20 000 Bii A, C, D

Australian National University-Centre for Mental Health Research)

Evaluation of the effectiveness of mental health training provided to Personal Advisers and Jobs, Education and Training (JET) Advisers

10 000 Bii A, D, E

Barkly Region Alcohol and Drug Abuse Advisory Group Inc.

Development of a town camp safety strategy

11 000 Bv E

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Baycorp Advantage Marketing Solutions Pty Ltd

Consultancy services in relation to landscape profiling of certain income support recipients

16 500 Bv D

Beyond Consulting Pty Ltd

Community consultation and social needs analysis; provision of recommendations to inform the development of an Indigenous pilot for the Personal Support Programme

33 000 A, Bv D

Booz Allen & Hamilton (Australia) Ltd

National Youth Affairs Research Scheme research project ‘Rural and regional young people and transport’

55 000 A C

Business Engines Pty Ltd

Project management and delivery of process and governance review of

115 000 A C

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

information delivery in the FaCS portfolio

Business Engines Pty Ltd

Project management and Refresh Business intelligence project (FaCS component of the Centrelink Refresh project)

130 000 Bv D

Butlin & Lloyd Pty Ltd, trading as Amity Management Consulting Group

Review of the crisis accommodation program

54 120 A C, D

Canberra Fathers and Children Service Inc.

A study on Canberra Fathers and Children Service’ model and client group and transferability of the model

11 000 Bv E

Centre for International Economics

Provision of consultancy services for preliminary cost-benefit research

33 000 Bv D

Clarity

Communications

Prime Minister Employer of the Year Awards publicist

20 000 Bi A

Clientwise Pty Limited Client satisfaction research for CSA programs

33 768 A B, C

Colmar Brunton Social Research Pty Ltd

Consultancy services to conduct action-research on four Indigenous Personal Support Programme pilot projects

94 620 Bii D

Colmar Brunton Social Research Pty Ltd

Client input consultancy for Family Relationships Services Program

99 297 A C, D

Colmar Brunton Social Research Pty Ltd

Action-research in relation to Personal Support Programme innovative pilots

88 000 A B, C, D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant

Consultancy service contracted

Total value of contract $

How engaged

Justification

Colmar Brunton Social Research Pty Ltd

Consultancy services in relation to conducting the national SAAP satisfaction survey

99 373 A B, C

Council for Homeless Persons

A study on school-age children in SAAP transitional housing and support services

11 000 Bv E

Name of consultant

Consultancy service contracted

Total value of contract $

How engaged

Justification

Courage Partners Pty Ltd

Consultancy services to develop an evaluation design for Family Tax Benefit and Child Care Benefit evaluation

11 800 Bv A, D

CPT Global Ltd Development of a strategy for Tax Office computing structure disengagement

44 700 Bii C

Dawn House Inc. Report on accompanied Indigenous children in Supported Accommodation Assistance Program (SAAP) services

11 000 A E

Deloitte Touche Tohmatsu

Review of the Edge expert system

174 479 Bii A, C, D

Deloitte Touche Tohmatsu

Consultancy services relating to financial modelling for the Centrelink funding model

15 000 Bi, Biv E

Deloitte Touche Tohmatsu

Advice and assistance with the Centrelink funding model

61 500 Bi, Biv E

Dimension Data Australia

Feasibility study to determine security arrangements for external customer access

48 000 Biv A

Edith Cowan University-School of Indigenous Australian Studies

Laverton and Newman remote area service centre evaluation

43 450 Bii D

Elizabeth Hoffman House

A study on improving access and sustaining outcomes for young Koories in SAAP

11 000 Bv E

Empower Group Pty Ltd

Human resource and workforce planning in relation to office-wide job and work analysis using work- level standards to determine accountabilities and improve work flows

69 245 Bv D, E

Erebus Consulting Partners

National evaluation of the Supported Accommodation Assistance Program (SAAP IV)

312 000 Bii A, C, D, E

Erebus Consulting Partners

Consultancy services in relation to the component module of the national evaluation of the SAAP (SAAP IV) titled ‘Review of SAAP IV Accountability Framework’

31 350 A, Bii C

Erebus Consulting Partners

Consultancy services in relation to the component module of the national evaluation of the SAAP

25 300 A, Bii C

Name of consultant

Consultancy service contracted

Total value of contract $

How engaged

Justification

(SAAP IV) titled ‘Review of SAAP IV National Research Program’

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

Ernst & Young Research on FaCS programs and provision of a report on FaCS’ interaction with the community sector

41 202 A C

Ernst & Young Provision of strategic property plan 16 500 A A

Ernst & Young Risk assessment of SAP Human Resources system

29 027 Biv C

Eureka Strategic Research Pty Ltd

Undertake formative research on community awareness attitudes to identify better communication messages and approaches

61 400 Biii A

Flinders University

Research into identifying good practices and pitfalls in community-based projects

80 000 C CD

Focus Pty Ltd Development of an Indigenous financial literacy research report

58 300 A A, B

Griffith University

National Youth Affairs Research Scheme research project ‘Sustainable Consumption: Young Australians as Agents of Change’

54 101 A C

Health Outcomes International Pty Ltd

Evaluation of the ‘Strengthening and Supporting Families Coping with Illicit Drug Use’ program

207 742 Bi B, C, D

Healthabitat Pty Ltd

Housing for health in Indigenous communities, general advice and assistance in relation to ‘Fixing Houses for Better Health 3’ in 2003-04 and 2004-05

159 120 C E

ICON Recruitment Pty Ltd

Project management and delivery of documentation and tools reviews to support information delivery across FaCS and Centrelink

25 000 Bv D

Indigo Titan Development of a strategy for installation and configuration of human resource IT disengagement for CSA

178 835 Bii C

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

Interaction Consulting Group Pty Ltd

Analysis of family assistance ministerial correspondence, discussion with stakeholders, redrafting of standard ministerial paragraphs, and design and delivery of a staff seminar on preparation of ministerial responses

27 000 Bv A, D

Interaction Consulting Group Pty Ltd

Design of a capability development framework for FaCS

28 215 Bv D

IT Newcom Pty Ltd

Benchmarking services for CSA programs

64 452 Biv B, C

Jenny Pearson & Associates Pty Ltd

Case-based funding pricing review in relation to Open Employment Maintenance

11 220 Bv B, C, D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

Jenny Pearson & Associates Pty Ltd

Research into the application of contemporary technology to the production of alternative format material

56 074 Bii A, E

Urbis JHD Pty Ltd

Family Relationships Services Program- independent review

247 659 Bv C, D

John Christian Dahlsen

Development of a constitution for the Non-Profit Council of Australia

34 000 C D

John Robinson Consulting Services Pty Ltd

Analysis of the provision of legal services in FaCS

60 000 Bi, Bii, Biii

A, C, D

KPMG Financial viability and corporate governance assessments of applicants’ request for submission

11 000 A D

KPMG Review of Active Job Services under the Disability Employment Assistance Program

25 859 A D

KPMG Business reviews of supported employment services (business services) funded under the Disability Employment Assistant Program and recommendation of tailored assistance to improve their viability

121 000 A A, C, D

KPMG Financial viability assessments of 44 000 A D

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

organisations seeking funding under the Job Placement, Employment and Training Program

KPMG Business reviews of supported employment services (business services) funded under the Disability Employment Assistant Program and recommendation of tailored assistance to improve their viability

14 370 A A, B, C, D

KPMG Financial review under the Disability Employment Assistance Program

13 375 A D, E

KPMG Review of case-based funding for business services-Phase 2

150 000 A A, B, C, D

KPMG Financial review under the Disability Employment Assistance Program

21 505 A A

KPMG Green Corps Program compliance audit

12 155 A C

The Learning Group Pty Ltd

Building multimedia products 33 165 Bii D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

LennMac Consulting Pty Ltd

Research into sustaining housing after homelessness

50 000 Bii A, C, D

Managed Business Applications

Business improvement process to review and enhance the internal structure of the CSA

12 000 Bii D

Merri Outreach Services

Study on what the m SAAP can do to help people to maintain long-term housing

11 000 Bv E

Minter Ellison Consulting

Review of the effectiveness of the ‘lead states’ mechanisms in meeting FaCS’ business needs

40 000 Biv C, D, E

Minter Ellison Consulting

Coordination of a suite of activities relating to the Stronger Families and Communities Strategy, including the review of the program, managing the backlog of project proposals, stakeholder management and advice to the Minister

47 520 Bv C, D

Name of consultant

Consultancy service contracted Total value of contract $

How engaged

Justification

Mission Australia: Northern NSW Regional Office

Study on tenant databases and their relationship to homelessness

11 000 Bv E

Morgan Disney & Associates Pty Ltd

Feasibility study to review ‘Transition from Care’ program-costs and benefits of alternative pathways of young people leaving care

21 945 Bii D

Morgan Disney & Associates Pty Ltd

Consultancy services in relation to preparation, facilitation and write-up of strategic directions workshops and national forum relating to the Family Relationships Services Program

1

52 950

Bi D, E

Murdoch Children’s Research Institute

Parenting information project-phase one

637 211 Bv C, D

Naidu Consulting Services

Advice and assistance in the selection process for a new FaCS program ‘Supporting early childhood’

25 000 Bi, Bii A

Noetic Solutions Pty Ltd

Consultancy services in relation to FaCS Knowledge Committee’s strategic direction and terms of reference

24 200 Bi, Bii A, D, E

NSW Commission for Children and Young People

Conduct of a national consultation process with children and young people on the Australian Action Plan for a World Fit for Children

55 000 Bv B, C, D

Nucleus Consulting Group Pty Ltd

Analysis of data set for Disability Support Pension- new claims project

22 220 Bii B

O’Brien Rich Research

Evaluation of the rural and remote pilot projects for Disability Employment Assistance

144 302 A C, D

Orima Research Pty Ltd

Research into customer awareness of Centrelink notification obligations

74 000 A A, B, C, D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Orima Research Pty Ltd

Research into study-related debt

37 026 A A, C, D, E

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Orima Research Pty Ltd

Social security fraud deterrence survey

33 000 A D

Orima Research Pty Ltd

Assessing the effectiveness of the Personal Support Program

293 217 A D

Orima Research Pty Ltd

Research services regarding perceptions, attitudes and behaviours among family payment customers

129 704 A A, D

Orima Research Pty Ltd

Research into encouraging voluntary behaviour change among Centrelink customers

43 697 A A, B, C, D

OVE ARUP Pty Ltd Comparative study in relation to Fixing Houses for Better Health and Indigenous Housing Management System Maintenance Project

49 400 Bii C, E

PALM Management Pty Ltd

Phase 1—Business improvement within People Branch, FaCS

17 050 Bv D

Paxus Australia Pty Ltd

Project management and delivery of documentation and tools reviews to support information delivery across FaCS and Centrelink

130 000 Bv D

Pejovic Associates Pty Ltd

Assistance with the preparation of expressions of interest and bids for international consultancy work

40 000 Bii D

Peter Orchard & Associates

Review of action-research within the Reconnect program

19 840 C D

Practical Management and Development Pty Ltd

Completion of community selection and feasibility studies, budget reviews and contract development for Fixing Houses for Better Health projects in Northern Territory and Western Australia in 2003-04

22 800 C E

Pricewaterhouse

Coopers

Case-based funding financial modelling

55 000 A D

Pricewaterhouse

Coopers

Case-based funding financial modelling tool

160 000 A D

Pricewaterhouse

Coopers

Development of a financial model to predict expenditure for the Personal Support Programme

35 000 A D, E

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Pricewaterhouse

Coopers

Statistical analysis of the processes and procedures of the random sample and risk-profiling programs

88 000 A A, B, C, D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Pricewaterhouse

Coopers

Personal Support Programme cash flow modelling tool

38 500 A D

Pricewaterhouse

Coopers

Business reviews of supported employment services (business services) funded under the Disability Employment Assistant Program and recommendation of tailored assistance to improve their viability

1 210 000 Bi, Bii, Biv

A, C, D

Robyn Penman Longitudinal Study of Indigenous Children (LSIC) literature review

45 500 Bi, Bii A, D

Queensland University of Technology

Provision of expertise for the Reconnect Action Research Committee

12 000 C D

University of Newcastle—Research Centre for Gender and Health

National Youth Affairs Research Scheme research project ‘Barriers to Service Delivery for Young Pregnant Women and Mothers’

55 283 A C

RMIT Research into debt and compliance motivation

65 000 Bii A, B, C, D

RPR Consulting Pty Ltd

Research to inform the Family Relationships Services Program Review to strengthen focus on prevention, early intervention and early resolution of conflict covering key relationships and family transitions that best meet the needs of children involved

27 720 A D, E

RPR Consulting Pty Ltd

Familiarisation of the Family Relationships Services Program subprograms and evaluations and assessment of the implementation of recommendations and identify

49 220 A D, E

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

best-practice models of service delivery (Australia and overseas) including service quality issues and the approval requirements through a literature review

RPR Consulting Pty Ltd

Evaluation of SAAP IV information management planning

82 060 A A, C, D

RPR Consulting Pty Ltd

Family Relationships Services Program approval requirements—organisation assessment and validation 2003-04

110 550 A C, D, E

RPR Consulting Pty Ltd

Development and conduct of the Reconnect good- practice forums 2003

101 860 A A, D, E

RPR Consulting Pty Ltd

Conduct of good practice forums for the Youth Activities Services and Family Liaison Workers program

56 870 A D

RPR Consulting Pty Ltd

Development and conduct of the Reconnect good- practice forum for 2003

10 065 A C, D, E

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant Consultancy service contracted

Total value of contract $

Howengaged

Justification

Salvation Army (Tasmania) Property Trust

Review of the role of SAAP in providing support and meeting housing needs of ex-offenders

11 000 Bv E

Social Options Australia

Investigation of the pathways into homelessness associated with problem gambling

90 000 Bv B

Social Research Centre Pty Ltd

Provision of research services regarding family assistance customers’ preference for service delivery channels

129 042 Bv B

Social Research Centre Pty Ltd

Examination of the impact of Personal Adviser initiatives on income support customers—collection of qualitative and quantitative data, analysis and reporting

434 244 Bii B

Name of consultant Consultancy service contracted

Total value of contract $

Howengaged

Justification

Social Research Centre Pty Ltd

Evaluation of the Commonwealth Disability Strategy, stage one

35 135 A C

Social Research Centre Pty Ltd

Consultancy services in relation to study of parents on low income, survey component

124 000 Biv B

Social Research Centre Pty Ltd

Consultancy services in relation to Parenting Payment new claims survey, round 3

293 963 Biv A, B

Social Research Centre Pty Ltd

Research into children in AAP 31 977 Bi, Bii, Biv B, C, D

Social Ventures Australia

Advice on possible support tools necessary for the successful running of the Stronger Families and Communities Strategy

60 000 C C, D

South Australian Centre for Economic Studies—Adelaide and Flinders universities

Development of a high-performance indicator framework for the Personal Support Programme

156 354 Bii A, B, C, D

South Australian Centre for Economic Studies—Adelaide and Flinders universities

Youth gambling prevalence, literature review

27 500 C D

Success Works Pty Ltd

SAAP IV national evaluation, component module— Supported Accommodation Assistance Program strategic themes in practice and capacity of SAAP service system

82 280 Bi, Bii A, C

Suzanne Kenney Consultant

Development of an Indigenous pilot for the Personal Support Programme

33 000 Bv D

Table 90: FaCS (including CSA and SSAT)—new consultancies to the value of $10 000 or more, 2003-04 continued

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Swinburne University of Technology- Institute for

Research into costs and pathways to homelessness

58 520 Bii, Biv A, B, C, D

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

Social Research

Team Systems Pty Ltd Design and facilitation of processes relating to Alliance 2004 and provision of advice on change management activities

78 070 Bii D

TestRight Computing Pty Ltd

Redevelopment of SSATellite system

30 000 Biv A, D

TestRight Computing Pty Ltd

Quality assurance and technical review of the AMSWIN application and requirements

43 200 Biv A, D

Uniting Church in Australia Property Trust (NSW) for Wesley Mission Homeless Persons Services

Improving interagency cooperation and coordination in SAAP

11 000 Bv E

WalterTurnbull Compliance audit of a Job Placement, Employment and Training (IPET)-funded recipient

19 925 A D

WalterTurnbull Business reviews of supported employment services (business services) funded under the Disability Employment Assistant Program and recommendation of tailored assistance to improve their viability

1 430 000 A A, C, D

WalterTurnbull Development of a detailed business plan for a funding recipient under the Disability Employment Assistance Program

11 000 Bv A

WalterTurnbull Financial review of LaTrobe Valley Supported Employment Services under the Disability Employment Assistance Program

13 750 Bv A

WalterTurnbull Reconciliation of participation allowance relating to the Green Corps Program

18 179 A D

WalterTurnbull Compliance audit of a Job Placement, Employment and Training (JPET)-funded

11 000 A A

Name of consultant Consultancy service contracted

Total value of contract $

How engaged

Justification

recipient

WalterTurnbull Business reviews of supported employment services (business services) funded under the Disability Employment Assistant Program and recommendation of tailored assistance to improve their viability

13 750 A A

WalterTurnbull Financial review under the Disability Employment Assistance Program

15 900 Bv A

Name of consultant Consultancy service contracted

Total value of contract $

How

engaged

Justification

WalterTurnbull Financial review of Westside Community Services under the Disability Employment Assistance Program

15 000 A D

Western Domestic Violence Service Inc.

A study on practice dilemmas in working with women with complex needs in SAAP

11 000 Bv E

Total 15 177 481

LegendThe legend provides an explanatory guide to the data contained in the above table.

How engaged

A open tender

Bi restricted tender—urgency

Bii restricted tender—specialist knowledge

Biii restricted tender—consultant with the Government Communications Unit

Biv restricted tender—previous good dealings

Bv restricted tender—other

C sole supplier

Justification for consultancy services

A skills currently unavailable within FaCS

B requirements for collection of quantitative/qualitative statistical information

C requirement for independent or impartial research/assessment by an independent organisation

D requirement for specialist/professional expertise

E the consultant is recognised as an expert in the field and uniquely able to provide required services

Appendix 6 Discretionary grantsTable 91: Discretionary grants, 2003–04

Program name Program description Expenditure ($)

‘Can Do’ Communities

Community development initiative under the Stronger Families and Communities Strategy

64 025

Community Business Partnership program

Funding to promote increased positive engagement between business, community and government

56 000

‘Creating Common Wealth’ Youth Enterprise Development Forum

Grants to assist with administrative arrangements for the ‘Creating Common Wealth’ Youth Enterprise Development Forum

10 000

Employment Assistance and Other Services

Provision of employment, assistance and other services for people with disabilities

37 500

Family and Community Network Initiative

Grants to develop the capacity of families and communities to respond effectively to personal and local issues

2 046 950

Labour Market Assistance

An initiative under the Australians Working Together package; aims to support individuals of working age through the provision of income support to seek work or other activities such as training, community work (voluntary work) or caring for children

2 361 150

National Housing Priorities

Grants for a range of housing projects, and support for organisations involved in the development of community housing infrastructure

357488

National Housing Research

Support for housing policy research. Funds also used for housing- related research, development, demonstration and evaluation

840 000

National Secretariat program

Funding to a number of national community peak bodies to contribute to government policy and service delivery

3 326 872

National Skills program

Funding to a range of volunteer and community service groups for training and skill development

60 000

Step to the Future Funding for placements for senior students at a national forum for youth

25 000

Stronger Families and Communities Strategy (Outcome 1)

Funding for a range of initiatives designed to contribute to family strength and resilience through early intervention and prevention approaches

20 412 979

Stronger Families and Communities Strategy (Outcome 2)

Funding for a range of initiatives designed to build community capacity through developing partnerships with government, community and business, including supporting volunteers

17 207 643

Support for People with Disabilities

Funding to promote independence and self-reliance through support for the provision of rehabilitation services, specialist employment services and other services for people with disabilities, and to support people with disabilities with limited means through the provision of income support

155 010

Young Australian of the Year Awards

Showcases the achievements of young Australians who, through initiative, hard work and persistence, achieve extraordinary results; the Minister for Children and Youth Affairs sponsors the Career Achievement category of these awards

165 000

Youth Affairs Grants and Publicity

Working together with young people and other partners to enable young people to reach their potential and encourage them to contribute to their families and communities

206 500

Total 47 332 117

Note: Details of individual grants paid may be requested from the Assistant Secretary Financial Services Branch, FaCS.

Appendix 7 I Freedom of informationFreedom of Information practices and proceduresFaCS handles all freedom of information (FOI) requests in accordance with the Freedom of Information Act 1982. FaCS’ protocols with Centrelink and other agencies delivering services on FaCS’ behalf also ensures that all requests are handled in accordance with the Freedom of Information Act.

In 2003-04, the Child Support Agency (CSA) continued to develop protocols and procedures to ensure it complied with the Freedom of Information Act 1982 when responding to requests. CSA also provides informal access in relation to requests for customers’ personal information.

Freedom of information requestsTable 92: FaCS and CSA—freedom of information: number of requests, 2003–04

Agency

Number of requests received

Number of requests finalised (including withdrawn)

Number of requests transferred to another agency

Number of requests outstanding

FaCS 15 7 2 2

Child Support Agency

336 323 0 37

Table 93: FaCS and CSA—freedom of information: timeliness of response to requests, 2003-04

Agency

Requests answered in less than 30 days

Requests answered in30 to 60 days

Requests answered in 60 to 90 days

Requests answered in more than 90 days

FaCS 4 8 0 3

Child Support Agency

216 65 19 11

Procedures for gaining access to documentsContact officers at both FaCS and CSA can advise on FOI matters and discuss the nature and scope of an intended request.

Formal applications for access to documents under FOI must be made by letter or statement or, where available, by completing a form. The application must be submitted to the offices listed in Table 94.

CSA follows informal access guidelines in cases where individuals seek access to documents that contain their own information, eliminating the need to lodge a formal FOI application.

Table 94: FaCS and CSA—freedom of information: facilities and procedures for accessing documents, 2003-04

Facilities for access to documents and general inquiries Formal request Informal request

FaCS Director, FOI Team FaCS National Office Box 7788

Canberra Mail Centre ACT 2610

General inquiries:

Freedom of Information Officer FaCS

Box 7788

Canberra Mail Centre ACT 2610

Telephone: 02 6244 5529

Fax: 02 6244 5744

FaCS state and territory offices FaCS National Office

Freedom of Information Officer

Box 7788

Canberra Mail Centre ACT 2610

Telephone: 02 6244 5529

Fax: 02 6244 5744

FaCS state and territory offices FaCS National Office

Freedom of Information Officer

Box 7788

Canberra Mail Centre

ACT 2610

Telephone: 02 6244 5529 Fax: 02 6244 5744

CSA CSA officesa, in person Documents can be mailed For forms and information, phone 131 272

Lodge request or mail to CSA officesa

Electronically at the CSA

web site: www.csa.gov.au

Telephone 131 272

Speak to FOI contact officer

Write to FOI contact officer

a. CSA offices and addresses

NSW

Albuiy PO Box 9815 Albury 2640

Newcastle GPO Bax 9815 Sydney 2001

Parramatta GPO Bax 9815 Sydney 2001

Penrith GPO Bax 9815 Sydney 2001

Sydney GPO Bax 9815 Sydney 2001

Wollongong GPO Bax 9815 Sydney 2001

VIC

Box Hill PO Box 9815 Box Hill 3128

Dandenong PO Box 9815 Dandenong 3175

Geelong PO Box 9815 Geelong 3220

Moo nee Ponds PO Box 9815 Moonee Ponds 3039

QLD

Brisbane GPO Box 9815 Brisbane 4001

Townsville PO Bax 9815 Townsville 4810

SA

Adelaide GPO Bax 1867 Adelaide 5001

WA

Perth PO Bax 9815 Perth 6848

TAS

Hobart GPO Bax 9815 Hobart 7001

ACT

Canberra GPO Bax 9815 Sydney 2001

Table 95: FaCS and CSA—freedom of information: categories of documents maintained, 2003–04

FaCS Child Support Agency

Documents FaCS holds are: separate records such as agenda and

minutes of decision-making bodies

separate records of Cabinet matters, including Cabinet submissions and Cabinet minutes

separate records prepared for the Executive Council

general correspondence and associated documents according to subject matter

documents maintained separately that relate to FaCS’ specific functions—for example, finance

documents containing personal information of individuals accessing payments and services of the portfolio.

None of these documents are: open to the public as part of the public

register or otherwise, in accordance with an enactment other than the Freedom of Information Act 1982, where that access is subject to a fee or other charge

available for purchase by the public in accordance with arrangements made by FaCS except manuals, instructions or guidelines

customarily made available to the public other than under the Freedom of Information Act 1982, free of charge on request.

Forms and leaflets relating to FaCS payments delivered by Centrelink are freely available to the public.

Documents CSA holds are: agendas for, and minutes of, meetings of

senior officers within CSA

ministerial, interdepartmental and general correspondence

internal administration papers and records

CSA legislation, policy and procedural documents

reports relating to CSA statistics, research and projects

proposals for legislation, drafting instructions and draft legislation

copies of instruments of delegation, given to, or by, the Child Support Registrar

requests for legal advice and copies of notes of advice given

briefing papers prepared for, and submissions to, the Minister or the Government

answers to parliamentary questions

correspondence, reports and other documents relating to CSA structure and the number, size and location of offices

correspondence, reports and other documents concerning the CSA’s human resources management

documents that relate to CSA specific functions, containing personal information of individuals accessing CSA.

CSA makes child support forms, brochures and booklets freely available to the public. People can also access many of these documents and the CSA guide to policy, rulings and determinations through CSA’s web site, www.csa.gov.au

Appendix 8 I LegislationAs at 30 June 2004, FaCS programs were administered under the provisions of the following Acts and parts of Acts for which the Minister for Family and Community Services is responsible under the Administrative Arrangements Order:

A New Tax System (FamilyAssistance) Act 1999

A New Tax System (FamilyAssistance) (Administration) Act 1999

A New Tax System (FamilyAssistance and Related Measures) Act 2000

A New Tax System (Bonuses for Older Australians) Act 1999, Parts 1 and 5 in so far as they relate to Family and Community Services customers and Part 2

Child Care Act 1972

Child Support (Assessment) Act 1989

Child Support (Registration and Collection) Act 1988

Commonwealth and State Housing Agreements Acts

Commonwealth Services Delivery Agency Act 1997

Data-matching Program (Assistance and Tax) Act 1990

Disability Services Act 1986

Family Law Act 1975, Part XIVA

Home Deposit Assistance Act 1982

Home Savings Grants Acts

Homeless Persons Assistance Act 1974

Housing Agreements Acts

Housing Assistance Acts

Marriage Act 1961, Part IA

Social Security Act 1991

Social Security (Administration) Act 1999

Social Security (International Agreements) Act 1999

Social Security (Rewrite) Transition Act 1991

Social Welfare Commission (Repeal) Act 1976

States Grants (Housing) Act 1971

Supported Accommodation Assistance Acts

Appendix 9 | Statement of material errorThe following corrections are made to the FaCS 2002-03 annual report:

Output Group 1.2 Youth and Student Support

Austudy Payment

Table 9 Maximum weekly payments to recipients—as a ratio to the Minimum Federal Award Wage

On page 46 of Volume two of the 2002-03 annual report, incorrect figures were reported in Table 9.

The correct figures are as follows:

Min award wage PW ($) Austudy rate PW ($) Ratiosingle no children

448.20 155.05 2.9:1

single with children448.20 203.20 2.2:1

partnered no children448.20 155.05 2.9:1

partnered with children448.20 170.30 2.6:1

Output Group 3.4—Support for the Aged

Support for the Aged: Age Pension, Widow B Pension, Wife Pension (Age), Pension Bonus Scheme Percentage of estimated aged population who are customers

On page 196 of Volume two of the 2002-03 annual report, an incorrect figure was reported for the estimate of the Australian population over qualifying age for Age Pension. The figure reported was 2 742 662 persons for June 2003. The correct figure is 2 795 212. An incorrect figure was also reported for the number of people over Age Pension age receiving similar means-tested income support payments from the Department of Veterans’ Affairs. The figure reported was 31 000. The correct figure should read 310 000. This section of the 2002-03 annual report should read:

‘ABS estimates the Australian population over qualifying age for Age Pension at 2 795 212 persons for June 2003. At this time, around 67 per cent, or 1 861 055 persons, received Age Pension. In addition, around 310 000 people over Age Pension age received similar means-tested income support payments from the Department of Veterans’ Affairs (DVA), bringing total government pension take-up for this group to 78 per cent.’

Appendix 4 Consultants

Summary

Table 85 Consultancy services contracts 2002-03

On page 281 of Volume two of the 2002-03 annual report, two incorrect figures were reported in Table 85. Total consultancy services expenditure of FaCS core was reported as $32 340 127. The correct figure is $14 959 718. As a result, the correct total for Table 85 should read $16 881 838 and not $34 262 247.

Appendix 4 Consultants

Table 86 FaCS—New consultancies let during 2002-03 to the value of $10 000 or more

On page 283 of Volume two of the 2002-03 annual report, the name of the consultant for the following consultancy service, which was provided at a contract price of $18 095 435, was incorrectly reported as the Australian Institute of Health and Welfare:

‘Consultancy services for the detailed design, implementation and management of a major longitudinal study of Australian children’

The name of the consultant should read the Australian Institute of Family Studies.

Tables 85 and 86 were corrected in the online annual report in December 2003.

Part 4 Financial statements 2003–04

Glossary

Administered items Expenses, revenues, assets or liabilities that agencies administer on behalf of the Commonwealth. Administered expenses include grants, subsidies and benefits.

Average staffing level(s) (ASL)

ASL is 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.

Customers Recipients of social support payments or outputs.

Competitive tendering The process by which agencies call for offers to perform a service from internal and external bodies, including the private sector and other departments and agencies, in an open and transparent competitive environment.

Departmental Assets, liabilities, revenues and expenses directly controlled by agencies.

Departmental outputs Four common ‘departmental’ outputs are reported for each of the ten output groups. Broadly, these outputs are the direct product of the policy, management and administrative functions of FaCS.

Effectiveness The extent to which actual outcomes are achieved, in terms of the planned outcomes, via relevant outputs, programs or administered expenses. The effectiveness of an output or program should be distinguished from its efficiency, which concerns the adequacy of its administration.

FaCS Department of Family and Community Services including Child Support Agency.

FaCS core Department of Family and Community Services excluding Child Support Agency.

Governance Method or system of government or management of the organisation.

Outcomes Results, impacts or consequences of actions by the Commonwealth on the Australian community. Outcomes are the results or impacts that the Government wishes to achieve. Actual outcomes are the results or impacts actually achieved.

Outputs The goods and services produced by agencies on behalf of Government for external organisations or individuals. Outputs include goods and services produced for other areas of Government external to the agency.

Output groups The aggregation based on homogeneity, type of product or beneficiary target group, of outputs. Aggregation may also be needed for the provision of adequate information for performance monitoring; or based on a materiality test.

Performance The proficiency of an agency in acquiring resources economically and using those resources efficiently and effectively in achieving outcomes.

Performance indicators Qualitative and quantitative factors of an output which provide a framework for assessing performance where direct causal links are not obvious and changes in performance are difficult to measure directly. Performance indicators are published in the Portfolio Budget Statement.

Performance information Evidence about performance that is collected and used systemically. Evidence may relate to effectiveness or efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them. Performance information is the actual results in terms of performance indicators.

Performance measures A more precise measure than indicators. Performance measures relate to outcomes, outputs, third party outputs and administered items. They are used when there is a direct causal link between an intervention and a measurable change in performance.

Portfolio Budget Statements

Statements prepared by portfolios to explain the budget appropriations in terms of planned Government outcomes.

Price The amount the Government or the community pays for the delivery of agreed outputs. The total of all prices aggregates to equal total expenses.

Quality Relates to the characteristics by which customers or stakeholders judge an organisation, product or service. Assessment of quality involves use of information gathered from interested parties to identify difference between users' expectations and experiences.

Quantity Size of an output. Count or volume measures. How many or how much.

Strategies Groups of activities to produce outputs required to achieve planned outcomes. Strategies usually comprise several activities and outputs.

List of acronyms and initialisms

A/g acting

ABS Australian Bureau of Statistics

ACCAP Australian Council for Children and Parenting

ACROD National Industry Association for Disability Services

AHURI Australian Housing and Urban Research Institute

AICCA Aboriginal and Islander child care agency

AIFS Australian Institute of Family Studies

ANAO Australian National Audit Office

ANTS A New Tax System

ANZSOG Australian and New Zealand School of Government

APS Australian Public Service

APSC Australian Public Service Commission

ARC Australian Research Council

ARHP Aboriginal Rental Housing Program

ARIA Accessibility/Remoteness Index of Australia

ATSIC Aboriginal and Torres Strait Islander Commission

ATSIS Aboriginal and Torres Strait Islander Services

Auslan Australian sign language

AUSTRAC Australian Transaction Reports and Analysis Centre

AWA Australian workplace agreement

AWT Australians Working Together

BA Bereavement Allowance

BAF Business Assurance Framework

BARAC Business Planning and Resource Allocation Committee

BSRIG Business Services Review Implementation Group

CAEPR Centre for Aboriginal Economic Policy Research

CAP Crisis Accommodation Program

CBD central business district

CCB Child Care Benefit

CDAC Career Development Assessment Centre

CDEP Community Development Employment Project

CDS Commonwealth Disability Strategy

CFCP Commonwealth Financial Counselling Program

CHAS Clients Having a Say

CHFA Community Housing Federation of Australia

CHINS Community Infrastructure Needs Survey

CHIP Community Housing and Infrastructure Program

COAG Council of Australian Governments

CPI Consumer Price Index

CPSU Community and Public Sector Union

CRF Consolidated Revenue Fund

CRV collaborative research venture

CSA Child Support Agency

CSHA Commonwealth-State Housing Agreement

CSHC Commonwealth Seniors Health Card

CSTDA Commonwealth State Territory Disability Agreement

CTC competitive tendering and contracting

DSG Disability Stakeholder Group

DSP Disability Support Pension

DVA Department of Veterans’ Affairs

EBC Executive Budget Committee

EDI Early Development Index

EDMS Electronic Document Management System

EIP Early I ntervention Parenting

EMS environmental management system

FaCS Department of Family and Community Services

FAMQIS Family Quality Information Strategy

FAO Family Assistance Office

FCNI Family and Community Networks initiative

FDCQA Family Day Care Quality Assurance

FHBH Fixing Houses for Better Health

FHPEIP Family Homelessness Prevention and Earfy intervention Pilot

FIS Financial information Service

FLW Family Liaison workers

FMA Act Financial Management and Accountability Act 1997

FOFMS FaCS Online Funding Management System

FOI freedom of information

FRE Family Relationships Education

FRSP Family Relationships Services Program

FTB Family Tax Benefit

GBP Good Beginnings Prototype

GRI Global Reporting initiative

GST Goods and Services Tax

HHC Health care Card

HIC Health insurance Commission

HILDA Household, income and Labour Dynamics in Australia

HOME Household Organisational Management Expenses

HPCR Harm Prevention charities Register

ICC indigenous Coordination centre

KCP indigenous Community Coordination Pilot

KT information and communication technology

KYS innovative Collaborative Youth Servicing

IDC intensive Debt Collection

IPFWB indigenous Parenting and Family wellbeing

ISO international Organization for standardization

IST in-service training

JET jobs. Education and Training

JETCC jobs. Education and Training Child Care

JPET Job Placement, Employment and Training

LDS Longitudinal Data Set

LSAC Longitudinal Study of Australian Children

LSIC Longitudinal Study of Indigenous Children

MAA Mature Age Allowance

MAPS Men’s Advocacy and Practical Strategies

MFR Men and Family Relationships

MHBH Maintaining Houses for Better Health

MTAWE Male Total Average Weekly Earnings

NFCV National Family Carers Voice

NICRI National Information Centre on Retirement Investments

NIDS National Illicit Drugs Strategy

NMG Network Management Group

NOHSC National Occupational Health and Safety Commission

NOIE National Office for the Information Economy

NSA Newstart Allowance

OHS Occupational Health and Safety

OOF Outcomes and Outputs Framework

OSHCQA Outside School Hours Care Quality Assurance

PA Partner Allowance

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PCC Pensioner Concession Card

PES Pensioner Education Supplement

PIT parental income test

PMIO Project Management Integration Office

POLIS Parents on low income study

PPP Parenting Payment (Partnered)

PPS Parenting Payment (Single)

PSP Personal Support Programme

QA quality assurance

QIAS Quality Improvement and Accreditation System

R&A resource and advisory

RMC Risk Assessment and Audit Committee

RCC rural call centre

REACH Responding Early Assisting Children

SAAP Supported Accommodation Assistance Program

SES senior executive service

SFSS Student Financial Supplement Scheme

SHSP Social Housing Subsidy Program

SI RCA Securities Industry Research Centre of Asia-Pacific

SIRP Sugar Industry Reform Program

SNSS Special Needs Subsidy Scheme

SpB Special Benefit

SPEAR Social Policy Evaluation, Analysis and Research Centre (Australian National University)

SPP specific purpose payments

SPRC Social Policy Research Centre (University of New South Wales)

SPRS Social Policy Research Services

SSAT Social Security Appeals Tribunal

STO state and territory office

TBL triple bottom line

TFR total fertility rate

TILA Transition to Independent Living Allowance

WA Widow Allowance

YAS Youth Allowance

How to find out moreDepartment of Family and Community ServicesPhone: 1300 653 227

TTY: 1800 260 402

Web site: www.facs.gov.au

National Office

Tuggeranong Office Park

Athllon Drive

Greenway ACT 2900

Box 7788

Canberra Mail Centre ACT 2610

State and territory offices

NSW Level 5, 1 Oxford Street

Darlinghurst, Sydney 2010

Victoria 3rd Floor, Casselden Place Bldg

2 Lonsdale Street

Melbourne 3000

Queensland Levels 5 & 6,200 Adelaide Street

Brisbane 4000

Western Australia Level 12, Central Park Building

152-158 St Georges Terrace

Perth 6000

South Australia Level 10,55 Currie Street

Adelaide 5000

Tasmania Level 3,21 Kirksway Place

Battery Point, Hobart 7004

Northern Territory 2nd Floor, NET Building

Scaturchio Street

Casuarina, Darwin 0810

ACT Level 3,8-10 Hobart Place

Canberra 2600

Child Support AgencyGeneral inquiries: 13 12 72

TTY: 1800 631 187

TIS: 13 14 50