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Portfolio Budget Statements 201718Budget Related Paper No. 1.15A

Social Services Portfolio

Budget Initiatives and Explanations ofAppropriations Specified by Outcomes

and Programs by Entity

© Commonwealth of Australia 2017

ISBN (Print) 978-1-925318-55-5ISBN (Online) 978-1-925318-56-2

This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the Department of Social Services logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode.

Use of Department of Social Services material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of Social Services endorses you or your use of the work).

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

Source: The Australian Government Department of Social Services

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

Based on The Australian Government Department of Social Services data

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Scott Dilley, Chief Finance Officer, Department of Social Services, 1300 653 227.

Printed by CanPrint Communications Pty Ltd.

The Hon Christian Porter MPMinister for Social Services

PARLIAMENT HOUSECANBERRA 2600

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 201718 Budget for the Social Services Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it, the public.

Yours sincerely

The Hon Christian Porter MP

Abbreviations and conventionsThe following notations may be used:

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

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

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

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

USER GUIDE

The purpose of the 201718 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. Entities receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2) 201718 (or Appropriation (Parliamentary Departments) Bill (No. 1) 201718 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

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

As required under section 12 of the Charter of Budget Honesty Act 1998, only entities within the general government sector are included as part of the Commonwealth general government sector fiscal estimates and produce PB statements where they receive funding (either directly or via portfolio departments) through the annual appropriation acts.

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User Guide

The Enhanced Commonwealth Performance Framework

The following diagram outlines the key components of the enhanced Commonwealth Performance Framework. The diagram identifies the content of each of the publications and the relationship between them. Links to the publications for each entity within the portfolio can be found in the introduction to Section 2: Outcomes and planned performance.

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CONTENTS

PORTFOLIO OVERVIEW.....................................................................................................1Social Services Portfolio Overview.................................................................................3

ENTITY RESOURCES AND PLANNED PERFORMANCE..........................................................7Department of Social Services.......................................................................................9Australian Institute of Family Studies.........................................................................105National Disability Insurance Agency.........................................................................129

PORTFOLIO GLOSSARY................................................................................................154

ABBREVIATIONS...........................................................................................................159

x

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

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SOCIAL SERVICES PORTFOLIO OVERVIEW

This document provides information about the changes within the Social Services Portfolio since the publication of the 201617 Portfolio Additional Estimates Statements.

Ministers and portfolio responsibilities

The minister and assistant ministers responsible for the portfolio and its entities are:

The Hon Christian Porter MP, Minister for Social Services

Senator the Hon Zed Seselja, Assistant Minister for Social Services and Multicultural Affairs

The Hon Jane Prentice MP, Assistant Minister for Social Services and Disability Services

Structure of the portfolio

Under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the portfolio comprises two non-corporate Commonwealth entities (one Department of State and one listed entity) and one corporate Commonwealth entity. Refer to Figure 1 for further information on the portfolio’s structure.

The Department of Human Services (DHS) is administered separately to the Department of Social Services (DSS). For information on DHS, refer to DHS’ 201718 Portfolio Budget Statements.

DEPARTMENT OF SOCIAL SERVICES

DSS was formed in September 2013 and is subject to the PGPA Act. DSS is a critical source of social policy advice for the Australian Government. It works in partnership with other government and non-government organisations, particularly with DHS, to ensure the effective development, management and delivery of a diverse range of policies, programs and services that are focused on improving the lifetime wellbeing of people and families in Australia.

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AUSTRALIAN INSTITUTE OF FAMILY STUDIES

The Australian Institute of Family Studies (AIFS) is a statutory body established under the Family Law Act 1975. Its role is to increase understanding of factors affecting how Australian families function by conducting research and disseminating findings. AIFS’ work provides an evidence base for developing policy and practice relating to the wellbeing of families in Australia. AIFS is a non-corporate Commonwealth entity under the PGPA Act.

NATIONAL DISABILITY INSURANCE AGENCY

The National Disability Insurance Agency (NDIA) is a statutory authority established under the National Disability Insurance Scheme Act 2013 to deliver the National Disability Insurance Scheme. It provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, and the social and economic participation of eligible people with disability, their families and carers. The NDIA also plays a key role in building community awareness and understanding of disability matters to reduce the barriers to community inclusion for people with disability, their families and carers. The NDIA is a corporate Commonwealth entity under the PGPA Act.

For information on resourcing across the portfolio, please refer to Part 1: Agency Financial Resourcing in Budget Paper No. 4: Agency Resourcing.

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Portfolio Overview

Figure 1: Social Services portfolio structure and outcomesMinister for Social ServicesThe Hon Christian Porter MP

Assistant Minister for Social Services and Multicultural AffairsSenator the Hon Zed Seselja

Assistant Minister for Social Services and Disability ServicesThe Hon Jane Prentice MP

Department of Social ServicesSecretary: Mr Finn Pratt AO PSM

Outcome 1: Social SecurityEncourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.Outcome 2: Families and CommunitiesContribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives.Outcome 3: Disability and CarersImproved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.Outcome 4: HousingIncreased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Australian Institute of Family StudiesDirector: Ms Anne Hollonds

Outcome 1:Increased understanding of factors affecting how families function by conducting research and communicating findings to policy-makers, service providers and the broader community.

National Disability Insurance AgencyChief Executive Officer: Mr David Bowen

Outcome 1:To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

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ENTITY RESOURCES AND PLANNED PERFORMANCE

DEPARTMENT OF SOCIAL SERVICES........................................................9

AUSTRALIAN INSTITUTE OF FAMILY STUDIES.........................................105

NATIONAL DISABILITY INSURANCE AGENCY..........................................129

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ENTITY RESOURCES AND PLANNED

PERFORMANCE

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SECTION 1: ENTITY OVERVIEW AND RESOURCES....................................................131.1 Strategic direction statement..................................................................................131.2 Entity resource statement.......................................................................................161.3 Budget measures...................................................................................................20

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE..........................................282.1 Budgeted expenses and performance for Outcome 1............................................292.2 Budgeted expenses and performance for Outcome 2............................................622.3 Budgeted expenses and performance for Outcome 3............................................732.4 Budgeted expenses and performance for Outcome 4............................................83

SECTION 3: BUDGETED FINANCIAL STATEMENTS....................................................913.1 Budgeted financial statements...............................................................................913.2 Budgeted financial statements tables.....................................................................94

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Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Social Services’ (DSS or the Department) mission is to improve the lifetime wellbeing of people and families in Australia by responding to need across people’s lives, encouraging independence and participation, and supporting a cohesive society.

DSS’ outcomes reflect four core areas in which we seek to assist people:1. Social security2. Families and communities3. Disability and carers4. Housing.

Key priorities for 2017-18The 2017-18 Budget builds on the Government’s commitment to support the safety and wellbeing of families, those living with disability, and the most vulnerable in our society. There is a clear need to continue with the reform of the welfare system to ensure it is easy to navigate, sustainable into the future, and ensures the focus remains on helping people find employment. This Budget recognises the importance of ensuring the quality and safety of National Disability Insurance Scheme (NDIS) services through the establishment of the NDIS Quality and Safeguards Commission and of building a capable workforce to service NDIS participants, as well as ensuring there are appropriate work opportunities for all people with disability. The Government also pays special attention to redress for victims of child sexual abuse in Commonwealth institutions.

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Department of Social Services Budget Statements

Continuing reform of the welfare systemThe Government is committed to ensuring Australia’s welfare system is focused on getting people into work. The Government recognises the welfare system needs to be simpler, better targeted, more aligned with community expectations, and focused on long-term employment.

The Government will simplify payments for people looking for work. One single JobSeeker Payment will be introduced, consolidating five existing income support payments. New participation and compliance rules will be progressively implemented that will set out clear requirements for job seekers and parents who receive a working age income support payment.

Targeted support for families and vulnerable Australians remains a priority. The Cashless Debit Card will be expanded to two new locations and the Income Management (IM) program will be extended for a further two years.

No Jab No Pay will be strengthened to provide a regular reminder to parents of the importance of immunising children and protecting public health.

A suite of measures will be introduced to assist welfare recipients overcome substance misuse that may prevent them from finding work and becoming self-sufficient.

Improving disability supportThe Government is committed to the long-term success of the NDIS and recognises this relies on a robust workforce able to deliver quality services and increased employment opportunities for people with disability.

The Government is investing $33.0 million to boost the Local Care Workforce to ensure NDIS participants receive quality services in their local area. This includes helping employers grow the care workforce with a particular focus on regional, rural and outer suburban communities.

To ensure quality and safe services for all NDIS participants the Government will establish a new independent Commonwealth body, the NDIS Quality and Safeguards Commission, which will implement the national NDIS Quality and Safeguarding Framework.

In line with the Government’s commitment to advancing and improving the social and economic participation of people with disability, improvements will be made to Disability Employment Services (DES) to help more people with disability find and keep jobs. The reforms will boost the effectiveness of the Government’s more than $800 million per annum investment in DES.

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Investing in a Commonwealth Redress Scheme

The Government acknowledges the suffering of survivors of child sexual abuse in institutional settings. The 2017-18 Budget commits an initial $33.4 million to meet the Commonwealth Redress Scheme’s establishment costs and confirms ongoing access to support services for survivors. The Scheme will provide survivors with a monetary payment, psychological counselling and, if requested by the survivor, a direct personal acknowledgement and response from the responsible institution.

Supporting vulnerable AustraliansBetter targeted and sustainable support for vulnerable Australians remains a priority for the Government.

A national approach to improving housing outcomes and reducing homelessness continues to be an area of focus. The Government recognises long-term and systemic reform is required. The Government intends to reform the National Affordable Housing Agreement (NAHA), the National Partnership Agreement on Homelessness (NPAH), and the National Affordable Housing Specific Purpose Payment to negotiate a new agreement with state and territory governments.

As part of these reforms, the NPAH will become part of the new agreement, with $381.8 million of funding provided for homelessness services, giving providers greater funding certainty and a platform to enable all governments to develop a national approach to homelessness. This funding will be quarantined under the new agreement.

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1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.

The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the Government or the public) and departmental (for the entity’s operations) classification.

For more detailed information on special and special appropriations, please refer to Budget Paper No. 4: Agency Resourcing.

Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome X’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

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Table 1.1: Department of Social Services resource statement – Budget estimates for 201718 as at Budget May 2017

201617 201718Estimated Estimate

actual$'000 $'000

DepartmentalAnnual appropriations - ordinary annual services

Prior year appropriations availablea 128,127 101,405Departmental appropriationb 369,390 407,630s 74 Retained revenue receiptsc 101,988 37,497Departmental capital budgetd 53,071 16,614

Annual appropriations - other services - non-operatinge

Equity injections 34,835 40,412Total departmental annual appropriations 687,411 603,558Total departmental resourcing 687,411 603,558AdministeredAnnual appropriations - ordinary annual servicesb

Outcome 1 31,277 25,548Outcome 2 756,168 695,264Outcome 3 1,639,642 4,331,634Outcome 4 86,423 86,839Payments to corporate entitiesf 1,598,466 1,026,117

Annual appropriations - other services - non-operatingPayments to corporate entitiesf 116,197 –

Total administered annual appropriations 4,228,173 6,165,402Note: All figures are GST exclusive.a Estimated adjusted balance carried forward from previous year for annual appropriations.b Appropriation Bill (No. 1) 2017-18.c Estimated retained revenue receipts under section 74 of the PGPA Act.d Departmental capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of

ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

e Appropriation Bill (No. 2) 2017-18.f ‘Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under

the PGPA Act.

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Table 1.1: Department of Social Services resource statement – Budget estimates for 201718 as at Budget May 2017 (continued)


actual$'000 $'000

Special appropriationsSocial Security (Administration) Act 1999 89,339,987 89,914,972A New Tax System (Family Assistance) (Administration) Act 1999 18,671,406 19,251,398Paid Parental Leave Act 2010 2,168,943 2,234,280Student Assistance Act 1973 346,769 337,554

Business Services Wage Assessment Tool PaymentScheme Act 2015g nfp nfp

Total administered special appropriations 110,527,105 111,738,204Special accounts

Opening balance 231,491 193,613Appropriation receiptsh 325,061 386,870Non-appropriated receipts 4,948 1,705

Total special accounts receipts 561,500 582,188

less administered appropriations drawn from annual/special appropriations and credited to special accounts 325,061 386,870less payments to corporate entities from annual/special appropriations 1,714,663 1,026,117Total administered resourcing 113,277,054 117,072,807Total resourcing for DSS 113,964,465 117,676,365

201617 201718Average staffing level (number) 1,984 1,942

g The provision set aside for the Business Services Wage Assessment Tool (BSWAT) Payment Scheme is not for publication (nfp) so as not to prejudice the Commonwealth in relation to legal claims brought against it.

h Amounts credited to the special accounts from DSS annual and special appropriations.

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Table 1.1: Department of Social Services resource statement – Budget estimates for 201718 as at Budget May 2017 (continued)Third-party payments from and on behalf of other entities


actual$'000 $'000

Payments made by the Department of Human Services on behalf of DSS:Special appropriations - Social Security (Administration) Act 1999 90,230,497 91,887,360

Special appropriations - A New Tax System (Family Assistance) (Administration) Act 1999 20,379,176 19,499,677Special appropriations - Paid Parental Leave Act 2010 2,172,680 2,239,894Special appropriations - Student Assistance Act 1973 351,054 350,336Annual administered appropriations 7,660 7,476

Payments made by the Department of Veterans' Affairs on behalf of DSS:

Special appropriations - A New Tax System (Family Assistance) (Administration) Act 1999 1,161 1,168Special appropriations - Social Security (Administration) Act 1999 49,910 47,836

Payments made to other entities for the provision of services:Australian Taxation Office 586 600Department of Veterans' Affairs 156 148

Payments made to corporate entities within the Portfolio:National Disability Insurance Agencyi 1,714,663 1,026,117

i The NDIA is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Department of Social Services, as the responsible non-corporate Commonwealth entity (NCCE), which are then paid to the NDIA. All appropriations paid to the NDIA are considered to be departmental for all purposes.

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1.3 BUDGET MEASURES

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

Table 1.2: Department of Social Services 201718 Budget measuresPart 1: Measures announced since the 201617 Mid-Year Economic and Fiscal Outlook (MYEFO)

201617 201718 201819 201920 202021

Program $'000 $'000 $'000 $'000 $'000

Revenue MeauresNational Disability Insurance Scheme - finalisation of transition arrangements

3.1, 3.2

Administered revenues – – – – –

Departmental revenues – – – – –

Total – – – – –

Total Revenue Measures

Administered revenues – – – – –

Departmental revenues – – – – –

Total – – – – –

Expense Measures

Consistent Income Treatment for Families Receiving Family Tax Benefit Part A

1.1

Administered expenses – – (127,608) (142,981) (144,337)

Departmental expenses – – – – –

Total – – (127,608) (142,981) (144,337)

Government Response to the Parliamentary Inquiry into the Child Support Program - implementation

1.1

Administered expenses – – – – –


Total – – – – –

Supporting No Jab No Pay - Healthy Start for School - new compliance arrangements

1.1



Total – – (11,119) (24,111) (30,784)Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Part 1: Measures announced since the 201617 MYEFO (continued)201617 201718 201819 201920 202021

Program $'000 $'000 $'000 $'000 $'000

Expense Measures (continued)Family Tax Benefit Part A rate increase - not proceedinga

1.1, 1.3, 1.8, 1.10,

1.11



Total – – (643,151) (638,142) (633,480)Funding the Jobs for Families Package

1.1, 1.10, 1.11

Administered expenses – (241,068) (571,936) (571,630) (570,127)


Total – (241,068) (571,936) (571,630) (570,127)

Enhanced Residency Requirements for Pensioners

1.3, 1.6, 1.8, 1.9,

1.10



Total – – (15,148) (43,667) (67,393)

Energy Assistance Payment 1.6, 1.8, 1.10

Administered expenses 245,479 1,962 – – –


Total 245,479 1,962 – – –Pensioner Concession Card - reinstatement

1.7



Total – – – – –

Aligning the Pensioner Education Supplement and Education Entry Payment

1.8, 1.9, 1.10, 1.11



Total – (14,453) (29,431) (30,098) (30,813)Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Program $'000 $'000 $'000 $'000 $'000

Expense Measures (continued)Liquid Assets Waiting Period - increasing self-reliance

1.10, 1.11



Total – – (30,871) (40,622) (43,115)

Better Alignment of Student Payments

1.10, 1.11



Total – (25,226) (53,147) (55,348) (57,317)Social Impact Investing Market - trials

1.10, 1.12

Administered expenses – 994 1,836 1,939 2,908

Departmental expenses – 1,201 1,740 116 321

Total – 2,195 3,576 2,055 3,229

Better Targeting of the Relocation Scholarship

1.11



Total – (1,154) (1,206) (1,253) (1,304)Australian Longitudinal Studies - additional funding 2.1

Administered expenses – 7,981 9,823 11,046 12,042


Total – 7,981 9,823 11,046 12,042Commonwealth contribution to Bourke Street Fundb

2.1



Total – – – – –Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Program $'000 $'000 $'000 $'000 $'000

Expense Measures (continued)Extension and expansion of Cashless Debit Card 2.1, 2.4

Administered expenses nfp nfp nfp – –

Departmental expenses nfp nfp nfp – –

Total nfp nfp nfp – –Extension of Income Management 2.1, 2.4

Administered expenses – 8 8 – –

Departmental expenses – 5,177 5,150 – –

Total – 5,185 5,158 – –Commonwealth Redress Scheme for Survivors of Institutional Child Sexual Abuse

2.4

Administered expenses – – nfp nfp nfp

Departmental expenses – 5,989 nfp nfp nfp

Total – 5,989 nfp nfp nfp

Public Service Modernisation Fund - transformation and innovation streamc

2.4



Total – – – – –

National Disability Insurance Scheme - finalisation of transition arrangements

3.1, 3.2




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Program $'000 $'000 $'000 $'000 $'000

Expense Measures (continued)Improving Disability Employment Services

3.1, 3.3

Administered expenses – – (11,257) (2,542) 6,558

Departmental expenses – 11,439 2,266 1,785 1,436

Total – 11,439 (8,991) (757) 7,994Boosting the Local Care Workforce 3.2

Administered expenses (15,500) 3,500 12,000 3,000 –


Total (15,500) 3,500 12,000 3,000 –

National Disability Insurance Scheme Quality and Safeguards Commission - establishment

3.2, 3.3

Administered expenses – 4,011 3,290 2,965 –


Total – 11,575 5,151 5,707 1,696

Reducing Pressure on Housing Affordability - Support for the Homes for Homes Initiative

4.1



Total – 1,500 1,500 1,500 1,500

Reducing Pressure on Housing Affordability - a new National Housing and Homelessness Agreement

4.2



Total – – – – –Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Program $'000 $'000 $'000 $'000 $'000

Cross-OutcomeUnlegislated Budget Repair Measures - not proceedingd

Outcome 11.1, 1.3, 1.6, 1.8, 1.9, 1.10,

1.11

Administered expenses 339,349 1,717,489 2,467,953 2,461,920 2,461,568

Departmental expenses – – – – –Outcome 2 2.1, 2.2

Administered expenses 79,334 557,002 576,749 597,422 623,609


Total 418,683 2,274,491 3,044,702 3,059,342 3,085,177

Better targeting skilled visase

Outcome 1 1.1, 1.3, 1.8, 1.9

Administered expenses – – – (998) (9,728)

Departmental expenses – – – – –Outcome 2 2.2

Administered expenses – – – – (94)


Total – – – (998) (9,822)

Better Targeting of Assistance to Support Jobseekersf

Outcome 1 1.1, 1.8, 1.10, 1.12


Departmental expenses – 72 – – –Outcome 3 3.1




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Program $'000 $'000 $'000 $'000 $'000

Cross-Outcome (continued)

Working Age Payments Reforms

Outcome 1

1.1, 1.4, 1.5, 1.6, 1.9, 1.10,

1.12

Administered expenses – (416) (1,213) (2,306) (5,273)

Departmental expenses – – – 1,560 –Outcome 3 3.1

Administered expenses – – – 140 360


Total – (416) (1,213) (606) (4,913)Community Support Programme - establishmentg

Outcome 1 1.10


Departmental expenses – – – – –Outcome 2 2.1

Administered expenses – – 20 21 21


Total – – (1,401) (5,793) (5,956)

Reducing Pressure on Housing Affordability - Social Impact InvestmentsOutcome 1 1.12


Departmental expenses – 195 475 – –Outcome 4 4.1

Administered expenses – 120 88 88 72


Total – 315 563 88 72

Total Expense Measures

Administered expenses 648,662 1,961,743 1,380,565 1,283,306 1,247,325


Total 648,662 1,993,380 1,392,057 1,289,509 1,250,778Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Program $'000 $'000 $'000 $'000 $'000

Capital MeasuresPublic Service Modernisation Fund - transformation and innovation streamc

2.4

Administered capital – – – – –

Departmental capital – – – – –

Total – – – – –National Disability Insurance Scheme Quality and Safeguards Commission - establishment

3.3


Departmental capital – 12,872 3,509 858 282

Total – 12,872 3,509 858 282

Total Capital Measures


Departmental capital – 12,872 3,509 858 282

Total – 12,872 3,509 858 282Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.a This measure reverses the measure that was announced as part of the Social Services Legislation

Amendment (Omnibus Savings and Child Care Reform) Bill 2017 which was introduced to Parliament on 8 February 2017. The reversal was announced during the introduction of the Social Services Legislation Amendment Bill 2017 (the SSLA Bill). The SSLA Bill was introduced to the Senate on 22 March 2017. It passed both Houses on 29 March 2017, and received Royal Assent on 12 April 2017. The above financial figures reflect the current net fiscal impact of the measure.

b The lead entity for the measure: Commonwealth contribution to Bourke Street Fund is the Treasury. The full measure description and package details appear in Budget Paper No. 2 under the Treasury Portfolio.

c The lead entity for the measure: Public Service Modernisation Fund - transformation and innovation stream is Cross Portfolio. The full measure description and package details appear in Budget Paper No. 2 under Cross Portfolio. DSS will receive funding of $16.263m in 2017-18, $26.026m in 2018-19 and $11.394m in 2019-20. Provision for the Public Service Modernisation Fund was included in the Budget estimates as part of the 2016-17 Budget measure: Public Service Transformation and the Efficiency Dividend.

d The lead entity for the measure: Unlegislated Budget Repair Measures - not proceeding is Cross Portfolio. The full measure description and package details appear in Budget Paper No. 2 under Cross Portfolio.

e The lead entity for the measure: Better targeting skilled visas is the Department of Immigration and Border Protection. The full measure description and package details appear in Budget Paper No. 2 under the Immigration and Border Protection Portfolio.

f The lead entity for the measure: Better Targeting of Assistance to Support JobSeekers is the Department of Employment. The full measure description and package details appear in Budget Paper No. 2 under the Employment Portfolio. The DSS component involves Decision Taken But Not Yet Announced (DTBNYA) in the 2016-17 MYEFO - Tightening Social Security Claim Requirements, with the following negative impact: 2017-18 ($57.673m), 2018-19 ($12.207m), 2019-20 ($12.898m), and 2020-21 ($13.318m).

g The lead entity for the measure: Community Support Programme - establishment is the Department of Immigration and Border Protection. The full measure description and package details appear in Budget Paper No. 2 under the Immigration and Border Protection Portfolio.

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Section 2: Outcomes and planned performance

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

Note:Performance reporting requirements in the Portfolio Budget Statements are part of the enhanced Commonwealth Performance Framework established by the Public Governance, Performance and Accountability Act 2013. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements – included in Annual Reports – to provide an entity’s complete performance story.

The most recent corporate plan for the Department of Social Services can be found at: www.dss.gov.au.

The most recent annual performance statement can be found at: www.dss.gov.au.

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https://www.dss.gov.au/

https://www.dss.gov.au/


2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

Outcome 1: Social SecurityEncourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.

Linked programs

Department of Education and TrainingProgram

Program 2.4 – Higher Education Loan ProgramContribution to Outcome 1 made by linked programThis linked program contains eligibility requirements in connection with some of the payments and concessions that fall under this Outcome.Department of EmploymentProgram

Program 1.1 – Employment ServicesContribution to Outcome 1 made by linked programMutual obligation requirements and compliance frameworks for various payments under this Outcome are stipulated in this linked program.Department of HealthProgram

Program 5.3 – ImmunisationContribution to Outcome 1 made by linked programThe Department of Health has policy responsibility for the National Immunisation Program. Eligibility for the Family Tax Benefit Part A Supplement that falls under this Outcome is contingent on satisfying requirements for age-related immunisation.Department of Human ServicesPrograms

Program 1.1 – Services to the Community – Social Security and Welfare

Program 1.3 – Child SupportContribution to Outcome 1 made by linked programsVarious payments, concessions and the Child Support Scheme under this Outcome are delivered through the above linked programs administered by the Department of Human Services.

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Linked programs (continued)

Department of the Prime Minister and CabinetPrograms

Program 2.1 – Indigenous Advancement – Jobs, Land and Economy Program 2.2 – Indigenous Advancement – Children and Schooling

Contribution to Outcome 1 made by linked programsMutual exclusion provisions are shared between scholarships administered by the Department of the Prime Minister and Cabinet and scholarships administered under this Outcome.Department of Veterans’ AffairsProgram

Program 1.1 – Veterans’ Income Support and AllowancesContribution to Outcome 1 made by linked programVarious payments and concessions under this Outcome are delivered through the above linked program administered by the Department of Veterans’ Affairs.

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Table 2.1.1: Budgeted expenses for Outcome 1This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by administered and departmental funding sources.

Outcome 1: Social Security

201617 201718 201819 201920 202021Estimated Budget Forward Forward Forward

actual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Program 1.1 - Family Tax BenefitAdministered expenses

Special appropriations

A New Tax System (Family Assistance) (Administration) Act 1999 18,595,476 19,220,950 18,749,857 18,830,463 18,758,200

Administered Total 18,595,476 19,220,950 18,749,857 18,830,463 18,758,200

Total expenses for Program 1.1 18,595,476 19,220,950 18,749,857 18,830,463 18,758,200Program 1.2 - Child PaymentsAdministered expenses


Social Security (Administration) Act 1999 3,412 3,539 3,663 3,775 3,904

A New Tax System (Family Assistance) (Administration) Act 1999 47,868 30,448 20,515 13,903 6,763

Student Assistance Act 1973 73,770 76,169 78,131 80,383 82,857

Administered Total 125,050 110,156 102,309 98,061 93,524

Total expenses for Program 1.2 125,050 110,156 102,309 98,061 93,524Program 1.3 - Income Support for Vulnerable PeopleAdministered expenses




Total expenses for Program 1.3 79,490 118,041 167,363 201,387 237,613Program 1.4 - Income Support for People in Special CircumstancesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,366 1,366 1,362 1,369 1,376Special appropriations

Social Security (Administration) Act 1999 4,587 4,991 5,479 4,331 –


Total expenses for Program 1.4 5,953 6,357 6,841 5,700 1,376

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Table 2.1.1: Budgeted expenses for Outcome 1 (continued)




Program 1.5 - Supplementary Payments and Support for Income Support RecipientsAdministered expenses




Total expenses for Program 1.5 33,606 30,196 27,500 26,716 25,253Program 1.6 - Income Support for SeniorsAdministered expenses


Social Security (Administration) Act 1999 44,467,760 45,473,840 47,677,640 49,810,103 52,310,675


Total expenses for Program 1.6 44,467,760 45,473,840 47,677,640 49,810,103 52,310,675Program 1.7 - Allowances and Concessions for SeniorsAdministered expenses




Total expenses for Program 1.7 101,686 93,289 80,607 68,399 61,084Program 1.8 - Income Support for People with DisabilityAdministered expenses




Total expenses for Program 1.8 16,422,992 16,969,008 17,430,795 18,253,059 19,148,028Program 1.9 - Income Support for CarersAdministered expenses




Total expenses for Program 1.9 8,143,355 8,511,620 8,818,147 8,945,652 9,006,601

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Program 1.10 - Working Age PaymentsAdministered expenses




Total expenses for Program 1.10 17,112,462 15,933,583 16,967,796 17,889,462 18,763,611Program 1.11 - Student PaymentsAdministered expenses





Total expenses for Program 1.11 3,170,276 2,834,320 3,130,718 3,245,032 3,450,042Program 1.12 - Program Support for Outcome 1Departmental expenses

Departmental appropriation 116,953 123,488 117,277 113,585 111,635

s 74 Retained revenue receiptsa 2,693 205 60 80 88

Expenses not requiring appropriation in the budget yearb 16,250 17,580 18,213 16,743 10,424

Departmental Total 135,896 141,273 135,550 130,408 122,147


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Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 6,504 25,548 37,460 33,464 7,482Special appropriations 108,251,602 109,275,812 113,122,113 117,340,570 121,848,525

Administered Total 108,258,106 109,301,360 113,159,573 117,374,034 121,856,007Departmental expenses




Departmental Total 135,896 141,273 135,550 130,408 122,147

Total expenses forOutcome 1 108,394,002 109,442,633 113,295,123 117,504,442 121,978,154

Movement of administered funds between yearsc



Outcome 1:

Program 1.10 - Working Age Payments (24,773) (7,367) 9,543 22,597 –

Total movement of administered funds (24,773) (7,367) 9,543 22,597 –

201617 201718

Average staffing level (number) 517 484Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change.a Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.b ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation

expenses and makegood expenses.c Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase

in funds.

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Table 2.1.2: Program components of Outcome 1Program 1.1 - Family Tax Benefit



1.1.1 - Component 1 (Family Tax Benefit Part A)Special appropriations


Total component 1 expenses 14,357,018 14,846,576 14,478,463 14,562,030 14,554,151

1.1.2 - Component 2 (Family Tax Benefit Part B)




1.1.3 - Component 3 (Schoolkids Bonus)


A New Tax System (Family Assistance) (Administration) Act 1999a 4 2 1 1 1

Total component 3 expenses 4 2 1 1 1

Total Program expenses 18,595,476 19,220,950 18,749,857 18,830,463 18,758,200a The Schoolkids Bonus ceased at the end of 2016. Residual expenses beyond this date relate to bad and

doubtful debts for general interest charges.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.2 - Child Payments



1.2.1 - Component 1 (Single Income Family Supplement)


A New Tax System (Family Assistance) (Administration) Act 1999a 45,707 28,211 18,202 11,513 4,293

Total component 1 expenses 45,707 28,211 18,202 11,513 4,293

1.2.2 - Component 2 (Stillborn Baby Payment)


A New Tax System (Family Assistance) (Administration) Act 1999 2,161 2,237 2,313 2,390 2,470


1.2.3 - Component 3 (Double Orphan Pension)




1.2.4 - Component 4 (Assistance for Isolated Children)




Total Program expenses 125,050 110,156 102,309 98,061 93,524a The Single Income Family Supplement (SIFS) will be closed to new recipients from 1 July 2017.

Grandfathering arrangements will permit eligible recipients with entitlements to SIFS at 30 June 2017 to continue to receive this payment as long as they remain eligible.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.3 - Income Support for Vulnerable People



1.3.1 - Component 1 (Special Benefit)




Total Program expenses 79,490 118,041 167,363 201,387 237,613

Program 1.4 - Income Support for People in Special Circumstances201617 201718 201819 201920 202021

Estimated Budget Forward Forward Forwardactual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

1.4.1 - Component 1 (Payments under Special Circumstances)

Annual administered expenses

Ordinary annual services (Appropriation Bill No.1) 1,366 1,366 1,362 1,369 1,376


1.4.2 - Component 2 (Bereavement Allowance)


Social Security (Administration) Act 1999a 4,587 4,991 5,479 4,331 –

Total component 2 expenses 4,587 4,991 5,479 4,331 –

Total Program expenses 5,953 6,357 6,841 5,700 1,376a This payment will cease from 20 March 2020. This change is a result of the 201718 Budget measure:

Working Age Payment Reforms.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.5 - Supplementary Payments and Support for Income Support Recipients



1.5.1 - Component 1 (Low Income Supplement)


Social Security (Administration) Act 1999 2,500 – – – –

Total component 1 expenses 2,500 – – – –

1.5.2 - Component 2 (Essential Medical Equipment Payment)




1.5.3 - Component 3 (Utilities Allowance)





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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.6 - Income Support for Seniors



1.6.1 - Component 1 (Age Pension)




1.6.2 - Component 2 (Widow B Pension)




1.6.3 - Component 3 (Wife Pension (Age))




Total Program expenses 44,467,760 45,473,840 47,677,640 49,810,103 52,310,675a This payment will cease from 20 March 2020. This change is a result of the 201718 Budget measure:

Working Age Payment Reform.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.7 - Allowances and Concessions for Seniors



1.7.1 - Component 1 (Energy Supplement for Commonwealth Seniors Health Card holders)


Social Security (Administration) Act 1999a 101,686 93,289 80,607 68,399 61,084


Total Program expenses 101,686 93,289 80,607 68,399 61,084a This component was previously known as the Seniors Supplement.

Program 1.8 - Income Support for People with Disability201617 201718 201819 201920 202021


1.8.1 - Component 1 (Disability Support Pension)




1.8.2 - Component 2 (Mobility Allowance)


Social Security (Administration) Act 1999 143,668 123,929 88,836 67,467 –


Total Program expenses 16,422,992 16,969,008 17,430,795 18,253,059 19,148,028

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.9 - Income Support for Carers



1.9.1 - Component 1 (Ex-Gratia Payments to Unsuccessful Applicants of Carer Payment (Child))



Total component 1expenses 2,800 2,800 2,800 2,800 2,800

1.9.2 - Component 2 (Carer Allowance (Adult))



Total component 2expenses 1,622,858 1,691,735 1,762,910 1,778,045 1,791,503

1.9.3 - Component 3 (Carer Allowance (Child))




1.9.4 - Component 4 (Carer Payment)




1.9.5 - Component 5 (Carer Supplement)




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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.9 - Income Support for Carers (continued)



1.9.6 - Component 6 (Child Disability Assistance Payment)




1.9.7 - Component 7 (Wife Pension (DSP))




Total Program expenses 8,143,355 8,511,620 8,818,147 8,945,652 9,006,601a This payment will cease from 20 March 2020. This change is a result of the 201718 Budget measure:

Working Age Payment Reform.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.10 - Working Age Payments



1.10.1 - Component 1 (Compensation and Debt Relief)


Ordinary annual services (Appropriation Bill No.1) 198 198 198 198 198

Total component 1expenses 198 198 198 198 198

1.10.2 - Component 2 (Investment Approach to Welfare - Evaluation)


Ordinary annual services (Appropriation Bill No.1) 2,140 20,190 30,938 27,158 200

Total component 2expenses 2,140 20,190 30,938 27,158 200

1.10.3 - Component 3 (Newstart Allowance)


Social Security (Administration) Act 1999a 10,029,524 9,558,610 10,203,851 7,681,649 –

Total component 3expenses 10,029,524 9,558,610 10,203,851 7,681,649 –

1.10.4 - Component 4 (Parenting Payment Partnered)


Social Security (Administration) Act 1999 978,235 849,829 918,446 990,885 1,052,753

Total component 4expenses 978,235 849,829 918,446 990,885 1,052,753

1.10.5 - Component 5 (Parenting Payment Single)




a This payment will cease from 20 March 2020. This change is a result of the 201718 Budget measure: Working Age Payment Reform.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.10 - Working Age Payments (continued)



1.10.6 - Component 6 (Pensioner Education Supplement)




1.10.7 - Component 7 (Sickness Allowance)



Total component 7expenses 86,171 75,157 104,188 71,753 –

1.10.8 - Component 8 (Widow Allowance)




1.10.9 - Component 9 (Youth Allowance (Other))


Social Security (Administration) Act 1999 1,016,759 792,868 964,438 988,541 1,087,570

Total component 9expenses 1,016,759 792,868 964,438 988,541 1,087,570

1.10.10 - Component 10 (Seasonal Work Incentives - Evaluation)


Ordinary annual services (Appropriation Bill No.1) – – 326 – –

Total component 10expenses – – 326 – –

a This payment will cease from 20 March 2020. This change is a result of the 201718 Budget measure: Working Age Payment Reform.

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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.10 - Working Age Payments (continued)



1.10.11 - Component 11 (Partner Allowance)




1.10.12 - Component 12 (JobSeeker Payment)


Social Security (Administration) Act 1999 – – – 3,136,025 11,452,062

Total component 12expenses – – – 3,136,025 11,452,062

1.10.13 - Component 13 (Social Impact Investment)


Ordinary annual services (Appropriation Bill No.1) – 994 1,836 1,939 2,908

Total component 13expenses – 994 1,836 1,939 2,908


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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.11 - Student Payments



1.11.1 - Component 1 (ABSTUDY - Secondary)




1.11.2 - Component 2 (ABSTUDY - Tertiary)




1.11.3 - Component 3 (Austudy)




1.11.4 - Component 4 (Youth Allowance (student))




1.11.5 - Component 5 (Student Start-up Loan - ABSTUDY)




1.11.6 - Component 6 (Student Start-up Loan)





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Table 2.1.2: Program components of Outcome 1 (continued)Program 1.12: Program Support for Outcome 1



1.12.1 - Component 1 (Departmental DSS - Outcome 1)

Annual departmental expenses

Program supporta 119,646 123,693 117,337 113,665 111,723



Total Program expenses 135,896 141,273 135,550 130,408 122,147Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as Government priorities change.a Program support combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘s 74 Retained

revenue receipts’.b ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation

expenses and makegood expenses.

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Cash projections for Rent Assistancea

Cross-Program: Rent Assistance201617 201718

Estimated Budgetactual$'000 $'000

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

Family Tax Benefit 1,933,315 1,969,516

DSS: Social Security (Administration) Act 1999

Age Pension 771,809 810,649

Austudy 47,734 47,711

Bereavement Allowance 94 108

Carer Payment 104,810 113,650

Disability Support Pension 680,924 714,046

Newstart Allowance 560,202 561,128

Parenting Payment (Partnered) 1,342 1,300

Parenting Payment (Single) 32,038 33,918

Partner Allowance 158 138

Sickness Allowance 7,368 8,125

Special Benefit 5,618 8,791

Widow Allowance 11,874 10,017

Widow Pension B 6 6

Wife Pension (Age) 884 835

Wife Pension (DSP) 934 812

Youth Allowance 209,238 204,914

DSS: ABSTUDY (Student Assistance Act 1973) 18,484 15,553

DVA: Veterans' Entitlements Act 1986b 31,499 30,398Total cash projections 4,418,331 4,531,615a Rent Assistance is not a discrete sum of money separately payable under the law, but is a supplementary

payment included in the calculation of the primary income support payment, Family Tax Benefit (FTB) or service pension. This table provides cash projections for the Rent Assistance component included in the primary income support payment FTB or service pension.

b Rent Assistance is paid to eligible service pension and income support supplement recipients.

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Table 2.1.3: Performance Criteria for Outcome 1Table 2.1.3 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 201718 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.

Program 1.1 – Family Tax Benefit – To make payments to assist low and medium income families with the direct and indirect costs of raising dependent children.

Delivery DSS administers the program as part of the social security systemPayments are made through the Department of Human Services to eligible claimants under the provisions of the family assistance law

Performance information

Year Performance criteria Targets

201617 Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments/programs below are made in accordance with relevant legislation, policy and guidelines: Family Tax Benefit Part A (FTB Part A) Family Tax Benefit Part B (FTB Part B) Child Support Scheme

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Number of eligible children Administered outlays Payment accuracy

201718 Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments/programs below are made in accordance with relevant legislation, policy and guidelines: Family Tax Benefit Part A (FTB Part A) Family Tax Benefit Part B (FTB Part B) Child Support Scheme

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Number of eligible children Administered outlays Payment accuracy

(Family Tax Benefit)

201819 and beyond As per 201718 As per 201718

Purposea Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance

Material changes to Program 1.1 resulting from the following measures: Nil

a Refers to updated purpose that will be reflected in the 2017-18 Corporate Plan.

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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.2 – Child Payments – To make payments to families in certain circumstances to assist with the costs of children.

Delivery DSS administers the program as part of the social security systemDouble Orphan Pension is paid through the Department of Human Services to eligible claimants under the provisions of social security lawSingle Income Family Supplement is paid through the Department of Human Services to eligible families under the provisions of the family assistance lawStillborn Baby Payment is made through the Department of Human Services to eligible claimants under the provisions of the family assistance lawAssistance for Isolated Children is paid through the Department of Human Services to eligible families. The appropriation for payments is in the Student Assistance Act 1973



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Double Orphan Pension Single Income Family Supplement Stillborn Baby Payment Assistance for Isolated Children

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Number of children

(Double Orphan Pension) Administered outlays

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Double Orphan Pension Single Income Family Supplement Stillborn Baby Payment Assistance for Isolated Children

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Number of children

(Double Orphan Pension) Administered outlays





(a)

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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.3 – Income Support for Vulnerable People – To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.

Delivery DSS administers the program as part of the social security systemPayments are made through the Department of Human Services to eligible claimants under the provisions of social security law



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Special Benefit

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Administered outlays Payment accuracy

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Special Benefit






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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.4 – Income Support for People in Special Circumstances – To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support. To make payments to Australians in circumstances beyond their control to support them in overcoming those circumstances and maintaining their financial wellbeing.

Delivery DSS administers the program as part of the social security systemBereavement Allowance payments are made through the Department of Human Services to eligible claimants under the provisions of social security lawPayments under Special Circumstances are made to eligible claimants under the provisions of social security law and the PGPA Act



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Bereavement Allowance Payments under Special Circumstances

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Administered outlays

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Bereavement Allowance Payments under Special Circumstances






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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.5 – Supplementary Payments and Support for Income Support Recipients – To make payments and subsidise services to certain income support recipients and low income households to assist them financially and to help them continue to participate economically and socially.

Delivery DSS administers the program as part of the social security systemLow Income Supplement, Utilities Allowance and Essential Medical Equipment Payment are made through the Department of Human Services to eligible claimants under the provisions of social security law



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Low Income Supplement Utilities Allowance Essential Medical Equipment Payment

Due to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients

(Low Income Supplement, Utilities Allowance)

Number of payments (Essential Medical Equipment Payment)

Administered outlays

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Low Income Supplement Utilities Allowance Essential Medical Equipment Payment

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients

(Low Income Supplement, Utilities Allowance)

Number of payments (Essential Medical Equipment Payment)






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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.6 – Income Support for Seniors – To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life transitions.




201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Age Pension Widow B Pension Wife Pension (Age)


(Age Pension)

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Age Pension Widow B Pension Wife Pension (Age)


(Age Pension)





(a)

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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.7 – Allowances and Concessions for Seniors – To make payments and provide services to senior Australians to assist with household expenses, enabling them to maintain their standard of living.




201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Allowances and Concessions for Seniors

Due to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Administered outlays

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Allowances and Concessions for Seniors






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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.8 – Income Support for People with Disability – To make payments to eligible people with disability who are unable to support themselves to achieve financial independence.




201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Disability Support Pension Mobility Allowance


201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Disability Support Pension Mobility Allowance


(Disability Support Pension)





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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.9 – Income Support for Carers – To make payments and allowances to financially assist eligible carers of people with disability or a severe medical condition.

Delivery DSS administers the program as part of the social security systemPayments are made through the Department of Human Services to eligible claimants under the provisions of social security lawEx-gratia payments to unsuccessful applicants of Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the PGPA Act



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Carer Payment Carer Allowance (Adult) and (Child) Carer Supplement Child Disability Assistance Payment Wife Pension (DSP)


(Carer Payment, Carer Allowance (Adult) and (Child))

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Carer Payment Carer Allowance (Adult) and (Child) Carer Supplement Child Disability Assistance Payment Wife Pension (DSP)


(Carer Payment, Carer Allowance)





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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.10 – Working Age Payments – To assist people who are temporarily unable to support themselves through work or have a limited capacity to work due to disability or caring responsibilities for young children.




201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Newstart Allowance Youth Allowance (Other) Sickness Allowance Parenting Payment Partner Allowance Widow Allowance

Agreement is in place.Due to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Administered outlays Payment accuracy

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Newstart Allowance Youth Allowance (Other) Sickness Allowance Parenting Payment Partner Allowance Widow Allowance

Agreement is in place.Due to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Administered outlays Payment accuracy





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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.11 – Student Payments – To achieve growth in skills, qualifications and productivity through providing income support and other financial assistance to students to assist them to undertake further education and training. To increase access and participation by Indigenous Australian students in school education, vocational education and training and higher education and accelerate their educational outcomes.

Delivery DSS administers the program as part of the social security systemPayments and other financial assistance are made through the Department of Human Services to eligible claimants under the provisions of social security and student assistance law



201617 Agreement is in place with the Department of Human Services to provide assurance that payments and other financial assistance below are made in accordance with relevant legislation, policy and guidelines: ABSTUDY Austudy Youth Allowance (student) Student Startup Loans


201718 Agreement is in place with the Department of Human Services to provide assurance that payments and other financial assistance below are made in accordance with relevant legislation, policy and guidelines: ABSTUDY Austudy Youth Allowance (student) Student Startup Loans


(ABSTUDY, Austudy, Youth Allowance (student))





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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Program 1.12 – Program Support for Outcome 1 – To provide departmental funding for the annual operating costs of DSS to achieve agency objectives.

Delivery Departmental funding



201617 Total departmental funding for Outcome 1 Funding is expended on activities that contribute to agency outcomes

201718 As per 201617 As per 201617





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Table 2.1.3: Performance Criteria for Outcome 1 (continued)Cross-Program – Rent Assistance – To make payments to low and moderate income Australians receiving income support or family payments to assist with the costs of renting private and community housing.

Delivery DSS administers the program as part of the social security systemRent Assistance payments are made through the Department of Human Services to eligible claimants under the provisions of the social security law and family assistance law



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Rent Assistance

Due to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Output: Number of income units

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Rent Assistance

Agreement is in placeDue to the nature of this program, where assistance is provided to all those that are eligible, targets are not reported. Actual performance will be reported in the DSS Annual Report.Output: Number of income units


Purposesa Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistanceImproved access to affordable housing, improved community housing and assisting individuals experiencing homelessness through targeted support and services

Material changes to Cross-Program: Rent Assistance resulting from the following measures: Nil


72



Outcome 2: Families and CommunitiesContribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives.

Linked programs

Attorney-General’s DepartmentPrograms

Program 1.1 – Attorney-General’s Department operating expenses – Civil justice and legal services

Program 1.4 – Justice Services Program 1.5 – Family Relationships Program 1.6 – Indigenous Legal and Native Title Assistance

Contribution to Outcome 2 made by linked programsThe Attorney-General’s Department has policy responsibility for improving access to justice for Indigenous people and for family matters, including Family Law Services. These linked programs provide payments for services to support this responsibility, and are administered by DSS under this Outcome.Department of Human ServicesProgram


Contribution to Outcome 2 made by linked programThe administrative aspects of Income Management, payments under the Paid Parental Leave Scheme and the Transition to Independent Living Allowance that fall under this Outcome are delivered by the Department of Human Services through the above linked program.Department of the Prime Minister and CabinetPrograms

Program 2.2 – Indigenous Advancement – Children and Schooling Program 2.3 – Indigenous Advancement – Safety and Wellbeing Program 2.5 – Indigenous Advancement – Remote Australia

StrategiesContribution to Outcome 2 made by linked programsThese linked programs contribute to this Outcome by supporting Indigenous families and communities to enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians, supporting families to give children a good start in life and by supporting remote

73


Attorney-General’s Departmentstrategic investments and remote housing strategies.


Department of Immigration and Border ProtectionPrograms

Program 2.1 – Citizenship Program 2.3 – Visas Program 2.4 – Refugee and Humanitarian Assistance

Contribution to Outcome 2 made by linked programsThe Department of Immigration and Border Protection has policy responsibility for the effective management of Australia's visa and citizenship programs, and the Humanitarian Programme. DSS delivers settlement services to refugees and humanitarian migrants.

74



Outcome 2: Families and Communities



Program 2.1 - Families and Communities

Administered expensesOrdinary annual services (Appropriation Bill No.1) 712,356 695,256 641,377 624,548 627,053Special appropriations

Social Security (Administration) Act 1999 183 8 8 – –

Special AccountsOther Services - Services for Other Entities and Trust Moneys 18,611 21,155 6,926 3,495 3,495

Administered total 731,150 716,419 648,311 628,043 630,548Total expenses forProgram 2.1 731,150 716,419 648,311 628,043 630,548Program 2.2 - Paid Parental Leave

Administered expensesOrdinary annual services (Appropriation Bill No.1) 4 8 – – –Special appropriations

Paid Parental Leave Act 2010 2,168,943 2,234,280 2,323,255 2,389,320 2,478,203Administered total 2,168,947 2,234,288 2,323,255 2,389,320 2,478,203

Total expenses forProgram 2.2 2,168,947 2,234,288 2,323,255 2,389,320 2,478,203Program 2.3 - Social and Community Services

Administered expensesSpecial Accounts

Social and Community Services Pay Equity Special Account 346,326 369,511 420,773 477,401 535,512

Administered total 346,326 369,511 420,773 477,401 535,512Total expenses forProgram 2.3 346,326 369,511 420,773 477,401 535,512Program 2.4 - Program Support for Outcome 2

Departmental expensesDepartmental appropriation 141,964 163,445 145,491 133,081 128,318s 74 Retained revenue receiptsa 93,144 33,732 33,656 33,629 33,878


Departmental total 267,039 225,200 206,955 191,265 177,250Total expenses forProgram 2.4 267,039 225,200 206,955 191,265 177,250

75



Outcome 2: Families and Communities



Outcome 2 Totals by appropriation type

Administered expensesOrdinary annual services (Appropriation Bill No.1) 712,360 695,264 641,377 624,548 627,053Special appropriations 2,169,126 2,234,288 2,323,263 2,389,320 2,478,203Special Accounts 364,937 390,666 427,699 480,896 539,007

Administered total 3,246,423 3,320,218 3,392,339 3,494,764 3,644,263Departmental expenses

Departmental appropriation 141,964 163,445 145,491 133,081 128,318s 74 Retained revenue receiptsa 93,144 33,732 33,656 33,629 33,878


Departmental total 267,039 225,200 206,955 191,265 177,250Total expenses forOutcome 2 3,513,462 3,545,418 3,599,294 3,686,029 3,821,513

Movement of administered funds between yearsc 201617 201718 201819 201920 202021Outcome 2:

Program 2.1 - Families and Communities (12,489) 12,489 – – –

Total movement of administered funds (12,489) 12,489 – – –

201617 201718


expenses, and makegood expenses.c Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase

in funds.

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Table 2.2.2: Program components of Outcome 2Program 2.1 - Families and Communities



2.1.1 - Component 1 (Civil Society)




2.1.2 - Component 2 (Families and Children)




2.1.3 - Component 3 (Families and Communities Services Improvement)




2.1.4 - Component 4 (Financial Wellbeing and Capability)




2.1.5 - Component 5 (National Initiatives)




2.1.6 - Component 6 (Settlement Services)




77


Table 2.2.2: Program components of Outcome 2 (continued)Program 2.1 - Families and Communities (continued)



2.1.7 - Component 7 (Strengthening Communities)

Annual administered expensesa



2.1.8 - Component 8 (Transition to Independent Living Allowance)




2.1.9 - Component 9 (Income Management Balancing Appropriation)

Special appropriationsSocial Security (Administration) Act 1999 183 8 8 – –

Total component 9expenses 183 8 8 – –

2.1.10 - Component 10 (Other Services - Services for Other Entities and Trust Moneys)

Special Account expensesOther Services - Services for Other Entities and Trust Moneys 18,611 21,155 6,926 3,495 3,495


Total Program expenses 731,150 716,419 648,311 628,043 630,548a The Strengthening Communities Activity will cease on 31 December 2017 and be replaced by the

redesigned Strong and Resilient Communities Activity (SARC) from 1 January 2018. Volunteer Grants will be established as its own activity from 1 January 2018.

78


Table 2.2.2: Program components of Outcome 2 (continued)Program 2.2 - Paid Parental Leave



2.2.1 - Component 1 (Paid Parental Leave - communication and evaluation)


Ordinary annual services (Appropriation Bill No.1) 4 8 – – –

Total component 1 expenses 4 8 – – –

2.2.2 - Component 2 (Dad and Partner Pay)


Paid Parental Leave Act 2010 107,533 111,195 114,717 118,394 122,189


2.2.3 - Component 3 (Parental Leave Pay)


Paid Parental Leave Act 2010 2,061,410 2,123,085 2,208,538 2,270,926 2,356,014



Program 2.3 - Social and Community Services201617 201718 201819 201920 202021


2.3.1 - Component 1 (Social and Community Services Pay Equity Special Account)

Special Account expenses

Social and Community Services Pay Equity Special Accounta

346,326 369,511 420,773 477,401 535,512Total component 1 expenses 346,326 369,511 420,773 477,401 535,512

Total Program expenses 346,326 369,511 420,773 477,401 535,512a The funding for the Social and Community Services Pay Equity Special Account is directly appropriated

through the Social and Community Services Pay Equity Special Account Act 2012.

79


Table 2.2.2: Program components of Outcome 2 (continued)Program 2.4: Program Support for Outcome 2



2.4.1 - Component 1 (Departmental DSS - Outcome 2)Annual departmental expenses


Expenses not requiringappropriation in the budget yearb 31,931 28,023 27,808 24,555 15,054





80



Outcome 2 – Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives.

Program 2.1 – Families and Communities – To strengthen relationships, support families, improve wellbeing of children and young people, reduce the cost of family breakdown, strengthen family and community functioning and facilitate the settlement of migrants and humanitarian entrants into the community.

Delivery Assist organisations through a program of grants, procurements and subsidies targeting families, children, young people, volunteers, multicultural communities, humanitarian entrants, migrants and other individuals with special circumstances



201617 Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS. Agreements and contracts require: support and capacity building that

contribute to strengthening individual and family functioning and communities; or

national leadership and representation for services to build capacity within the families and community sector that works to strengthen family and community functioning

Standard of delivery is performed in accordance with the terms and conditions of organisations’ contracts and agreements with DSS. No quantifiable targets as programs are demand driven. Actual performance will be reported in the DSS Annual Report.Outputs: Number of organisations

contracted or receiving grant funding

Number of individuals and families assisted


201718 Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS. Agreements and contracts require: support and capacity building that

contribute to strengthening individual and family functioning and communities; or

national leadership and representation for services to build capacity within the families and community sector that works to strengthen family and community functioning


contracted or receiving grant funding to deliver services

Number of individuals assisted


81


Table 2.2.3: Performance Criteria for Outcome 2 (continued)Program 2.1 – Families and Communities – To strengthen relationships, support families, improve wellbeing of children and young people, reduce the cost of family breakdown, strengthen family and community functioning and facilitate the settlement of migrants and humanitarian entrants into the community.


Purposea Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives



Program 2.2 – Paid Parental Leave – To provide financial support to parents to help them take time off work following the birth or adoption of a child.

Delivery The Department administers the program as part of the social security systemThe Department of Human Services either funds employers to provide Parental Leave Pay to eligible employees, or provides Parental Leave Pay directly to eligible parents and other persons, according to the provisions of the Paid Parental Leave Act 2010Dad and Partner Pay is paid by the Department of Human Services directly to eligible fathers or partners in accordance with the Paid Parental Leave Act 2010



201617 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Parental Leave Pay Dad and Partner Pay

Due to the nature of this payment, where assistance is provided to all those who are eligible and apply, targets are not reported. Actual performance will be reported in the DSS Annual Report.Output: Number of recipients

201718 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: Parental Leave Pay Dad and Partner Pay

Agreement is in placeDue to the nature of this payment, where assistance is provided to all those who are eligible and apply, targets are not reported. Actual performance will be reported in the DSS Annual Report.Outputs: Number of recipients Administered outlays





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Table 2.2.3: Performance Criteria for Outcome 2 (continued)Program 2.3 – Social and Community Services – To set aside funding for the implementation period of Fair Work Australia’s Social, Community and Disability Services Industry Equal Remuneration Order.

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



201617 Delivery complies with relevant legislationThe funds appropriated to the Department are issued to meet the Australian Government’s share of the pay increases

Payments made as described

201718 Delivery complies with relevant legislationThe funds appropriated to the Department are issued to meet the Australian Government’s share of the pay increases

Payments made as described





Program 2.4 – Program Support for Outcome 2 – To provide departmental funding for the annual operating costs of DSS to achieve agency objectives.





201718 As per 201617 As per 201617





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Outcome 3: Disability and CarersImproved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Linked programs

Department of EmploymentProgram

Program 1.1 – Employment ServicesContribution to Outcome 3 made by linked programThis Outcome benefits from this linked program as it encourages individuals to support themselves through mutual obligation requirements and compliance frameworks.Department of HealthPrograms

Program 2.1 – Mental Health Program 6.1 – Access and Information Program 6.2 – Home Support and Care Program 6.3 – Residential and Flexible Care Program 6.4 – Aged Care Quality

Contribution to Outcome 3 made by linked programsThis Outcome benefits from these linked programs as they also seek to improve the independence of, and participation by, people with disability and carers. In particular, the Department of Health manages two programs that will have partial or full funding transition to the NDIS and a continuity of support program for people aged 65 and over currently in state disability programs who are not eligible for the NDIS. The Department of Health also has policy responsibility for Medicare Benefits Schedule (MBS) items in relation to disability and mental health.Department of Human ServicesProgram


Contribution to Outcome 3 made by linked programVarious payments and concessions under this Outcome are delivered through the above linked program administered by the Department of Human Services.

84



National Disability Insurance AgencyPrograms

Program 1.1 – Reasonable and necessary care and support participants

Program 1.2 – Community inclusion and capacity development grants

Contribution to Outcome 3 made by linked programsThese linked programs provide for the delivery of the National Disability Insurance Scheme.The Treasury

Program Program 1.7 – Assistance to the State for Disability Services

Contribution to Outcome 3 made by linked programThe Treasury makes payments to the States under bilateral agreements on transition to a National Disability Insurance Scheme and a range of other agreements. It also makes National Specific Purpose Payments for disability services.

85



Outcome 3: Disability and Carers



Program 3.1 - Disability Mental Health and CarersAdministered expenses

Ordinary annual services (Appropriation Bill No.1) 1,060,440 1,115,868 1,124,153 1,114,072 1,111,943Special appropriations

Business Services Wage Assessment Tool Payment Scheme Act 2015a nfp nfp nfp nfp nfp

Special AccountsNational Disability Research Special Account 2016 2,950 2,140 405 172 –

Administered total 1,063,390 1,118,008 1,124,558 1,114,244 1,111,943

Total expenses for Program 3.1 1,063,390 1,118,008 1,124,558 1,114,244 1,111,943Program 3.2 - National Disability Insurance SchemeAdministered expenses

Ordinary annual services (Appropriation Bill No.1)b 559,693 3,215,766 5,803,080 8,578,296 9,382,922

Administered total 559,693 3,215,766 5,803,080 8,578,296 9,382,922Total expenses for Program 3.2 559,693 3,215,766 5,803,080 8,578,296 9,382,922Program 3.3 - Program Support for Outcome 3Departmental expenses


s 74 Retained revenue receiptsc 6,379 4,212 4,376 4,401 4,264

Expenses not requiring appropriation in the budget yeard 13,627 15,316 15,041 13,591 8,168

Departmental total 113,960 123,078 111,939 105,858 96,779


86



Outcome 3: Disability and Carers




Ordinary annual services (Appropriation Bill No.1) 1,620,133 4,331,634 6,927,233 9,692,368 10,494,865Special appropriationsa nfp nfp nfp nfp nfpSpecial Accounts 2,950 2,140 405 172 –

Administered total 1,623,083 4,333,774 6,927,638 9,692,540 10,494,865Departmental expenses


s 74 Retained revenue receiptsc 6,379 4,212 4,376 4,401 4,264

Expenses not requiring appropriation in the budget yeard 13,627 15,316 15,041 13,591 8,168

Departmental total 113,960 123,078 111,939 105,858 96,779Total expenses forOutcome 3 1,737,043 4,456,852 7,039,577 9,798,398 10,591,644

201617 201718

Average staffing level (number) 546 531Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change.

a The provision set aside for the Business Services Wage Assessment Tool (BSWAT) Payment Scheme is not for publication (nfp) so as not to prejudice the Commonwealth in relation to legal claims brought against it.

b From 1 July 2017, the Department of Social Services (DSS) is appropriated funding for National Disability Insurance Scheme (NDIS) Participant Plans and Information, Linkages and Capacity Building. These appropriations are provided to the National Disability Insurance Agency (NDIA) under their Program 1.1: Reasonable and necessary care and support for participants and Program 1.2: Community inclusion and capacity development grants. Further information can be found in NDIA’s 2017-18 Portfolio Budget Statements on page 129.

c Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.d ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation expenses, and

makegood expenses.

87


Table 2.3.2: Program components of Outcome 3Program 3.1 - Disability Mental Health and Carers



3.1.1 - Component 1 (Community Mental Health)




3.1.2 - Component 2 (Disability and Carer Support)




3.1.3 - Component 3 (Disability Employment)




3.1.4 - Component 4 (Disability and Carer Service Improvement and Sector Support)




3.1.5 - Component 5 (Business Services Wage Assessment Tool Payment Scheme)


Business Services Wage Assessment Tool Payment Scheme Act 2015a nfp nfp nfp nfp nfp

Total component 5expenses nfp nfp nfp nfp nfp

a The provision set aside for the Business Services Wage Assessment Tool (BSWAT) Payment Scheme is not for publication (nfp) so as not to prejudice the Commonwealth in relation to legal claims brought against it.

88


Table 2.3.2: Program components of Outcome 3 (continued)Program 3.1 - Disability Mental Health and Carers (continued)



3.1.6 - Component 6 (National Disability Research Special Account 2016)

Special Account Expenses:

National Disability Special Account 2016 2,950 2,140 405 172 –

Total component 6expenses 2,950 2,140 405 172 –


Program 3.2 - National Disability Insurance Scheme201617 201718 201819 201920 202021


3.2.1 - Component 1 (National Disability Insurance Scheme Transitioning Commonwealth Programs)



Total component 1 expenses 528,560 472,890 387,524 283,965 267,2773.2.2 - Component 2 (National Disability Insurance Scheme Research and Evaluation)


Ordinary annual services (Appropriation Bill No.1) 1,633 – – – –

Total component 2 expenses 1,633 – – – –3.2.3 - Component 3 (Sector Development Fund)


Ordinary annual services (Appropriation Bill No.1) 29,500 40,962 12,000 3,000 –

Total component 3 expenses 29,500 40,962 12,000 3,000 –3.2.4 - Component 4 (National Disability Insurance Scheme Participant Plans)


Ordinary annual services (Appropriation Bill No.1) – 2,629,032 5,295,002 8,169,018 8,997,042

Total component 4 expenses – 2,629,032 5,295,002 8,169,018 8,997,042

89


Table 2.3.2: Program components of Outcome 3 (continued)Program 3.2 - National Disability Insurance Scheme (continued)



3.2.5 - Component 5 (National Disability Insurance Scheme Information Linkages and Capacity Building)


Ordinary annual services (Appropriation Bill No.1) – 68,871 105,264 119,348 118,603

Total component 5 expenses – 68,871 105,264 119,348 118,6033.2.6 - Component 6 (Establishment of the NDIS Quality and Safeguards Commission)


Ordinary annual services (Appropriation Bill No.1) – 4,011 3,290 2,965 –

Total component 6 expenses – 4,011 3,290 2,965 –

Total Program expenses 559,693 3,215,766 5,803,080 8,578,296 9,382,922

Program 3.3 - Program Support for Outcome 3201617 201718 201819 201920 202021


3.3.1 - Component 1 (Departmental DSS - Outcome 3)

Annual departmental expenses


Expenses not requiringappropriation in the budgetyearb 13,627 15,316 15,041 13,591 8,168





90



Outcome 3 – Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Program 3.1 – Disability Mental Health and Carers – To provide support and community-based initiatives for people with disability, mental illness and carers, so they can develop their capabilities and actively participate in community and economic life.

Delivery Assist organisations through a program of grants, procurements and subsidies targeting support to people with disability, carers and people with, or at risk of, mental illness


Year Performance criteriaa Targets

201617 Delivery by organisations is in accordance with specified requirements which may include service level standards of the contracts and agreements between organisations and DSS. Agreements and contracts require services that contribute to developing capabilities and active participation: employment assistance and other

services to people with disability direct advocacy support to people with

disability support to carers support through community based

initiatives to assist people with, or at risk of, mental illness


contracted or receiving grant funding



201718 Delivery by organisations is in accordance with specified requirements which may include service level standards of the contracts and agreements between organisations and DSS. Agreements and contracts require services that contribute to developing capabilities and active participation: employment assistance and other

services to people with disability direct advocacy support to people with

disability support to carers support through community based

initiatives to assist people with, or at risk of, mental illness

national leadership and representation for services to build capacity within the disability, carers or community mental health sectors


contracted or receiving grant funding to deliver services



91


Table 2.3.3: Performance Criteria for Outcome 3 (continued)Program 3.1 – Disability Mental Health and Carers – To provide support and community-based initiatives for people with disability, mental illness and carers, so they can develop their capabilities and actively participate in community and economic life.


Purpose Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services


a Minor modifications to performance criteria are shown in italics and underlined.

Program 3.2 – National Disability Insurance Scheme – To improve the wellbeing and social and economic participation of people with disability, and their families and carers, by building a National Disability Insurance Scheme (NDIS) that delivers individualised support through an insurance approach. This program also includes funding from existing Commonwealth programs that are transitioning into the Scheme in a phased approach, funding to establish the NDIS Quality and Safeguards Commission and the Sector Development Fund.

Delivery Negotiate NDIS agreements, policy settings and financial arrangements with states and territories for the transition to full schemeEstablish the NDIS Quality and Safeguards CommissionThrough a program of grants for disability sector improvement, assist people with disability, people with severe mental illness, carers and service providers, to transition to the NDIS



201617 Policy, financial and partnership arrangements are in place to create an effective and sustainable NDIS including: developing and implementing policy

settings for full scheme implementing funding mechanisms for

transition negotiating and implementing

agreements with states and territories for transition to full scheme

Timely and effective policy advice (including Quality and Safeguards) is provided for full schemeAppropriate management of the NDIS cash flowNegotiations of bilateral agreements are undertakenStrategic implementation issues are identified and resolvedOutputs: Value of Commonwealth

program funding transitioned to the NDIS

Value and number of Sector Development grants supporting the expansion and diversification of the market, sector and workforce

92


Program 3.2 – National Disability Insurance Scheme – To improve the wellbeing and social and economic participation of people with disability, and their families and carers, by building a National Disability Insurance Scheme (NDIS) that delivers individualised support through an insurance approach. This program also includes funding from existing Commonwealth programs that are transitioning into the Scheme in a phased approach, funding to establish the NDIS Quality and Safeguards Commission and the Sector Development Fund.

201718 Policy, financial and partnership arrangements are in place to create an effective and sustainable NDIS including: developing and implementing policy

settings for full scheme implementing funding mechanisms for

NDIS transitions negotiating agreements with states and

territories for full scheme establishment of the NDIS Quality and

Safeguards Commission

Timely and effective policy advice (including Quality and Safeguards) is provided for full schemeAppropriate management of the NDIS cash flowStrategic implementation issues are identified and resolvedEstablished NDIS Quality and Safeguards CommissionOutputs: Value of Commonwealth

program funding transitioned to the NDIS

Value and number of Sector Development Fund projects supporting the market, sector and workforce to transition to the NDIS




a Minor modifications to performance criteria are shown in italics and underlined.

Program 3.3 – Program Support for Outcome 3 – To provide departmental funding for the annual operating costs of DSS to achieve agency objectives.





201718 As per 201617 As per 201617




93



Outcome 4: HousingIncreased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Linked programs

The TreasuryPrograms

Program 1.8 – Assistance to the States for Affordable Housing Program 1.9 – National Partnership Payments to the States

Contribution to Outcome 4 made by linked programThe Treasury makes payments to the States under the National Partnership Agreement on Homelessness (NPAH) and other agreements. It also makes National Specific Purpose Payments for housing services. Annual incentives under the National Rental Affordability Scheme (NRAS) are provided through tax offsets by the Australian Taxation Office.

94



Outcome 4: Housing



Program 4.1 - Housing and HomelessnessAdministered expenses


Administered total 1,358 1,620 1,588 1,588 1,572Total expenses for Program 4.1 1,358 1,620 1,588 1,588 1,572Program 4.2 - Affordable HousingAdministered expenses


Administered total 84,487 85,219 86,117 83,405 77,594Total expenses for Program 4.2 84,487 85,219 86,117 83,405 77,594Program 4.3 - Program Support for Outcome 4Departmental expenses

Departmental appropriation 16,519 17,147 15,951 14,728 14,201s 74 Retained revenue receiptsa 1,122 698 755 737 617


Departmental total 20,037 20,381 19,299 17,743 16,193Total expenses for Program 4.3 20,037 20,381 19,299 17,743 16,193

95



Outcome 4: Housing





Administered total 85,845 86,839 87,705 84,993 79,166Departmental expenses





Total expenses forOutcome 4 105,882 107,220 107,004 102,736 95,359

201617 201718



96


Table 2.4.2: Program components of Outcome 4 (continued)Program 4.1 - Housing and Homelessness



4.1.1 - Component 1 (Housing and Homelessness Service Improvement and Sector Support)





Program 4.2 - Affordable Housing201617 201718 201819 201920 202021


4.2.1 - Component 1 (National Rental Affordability Scheme)





97


Table 2.4.2: Program components of Outcome 4Program 4.3 - Program Support for Outcome 4



4.3.1 - Component 1 (Departmental DSS - Outcome 4)Annual departmental expenses







98



Outcome 4 – Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Program 4.1 – Housing and Homelessness – To provide support for affordable housing and homelessness prevention initiatives, including research and innovative early stage projects.

Delivery Fund organisations to conduct research and design and implement initiatives that improve the availability of affordable housing and prevent homelessness



201617 Development of an evidence base on housing and homelessness

Achieved

201718 Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS

Standard of delivery is performed in accordance with the terms and conditions of organisations’ contracts and agreements with DSS

201819 and beyond As per 2017-18 As per 2017-18

Purpose Improved access to affordable housing, improved community housing and assisting individuals experiencing homelessness through targeted support and services

Material changes to Program 4.1 resulting from the following measures:Measure title: Reducing Pressure on Housing Affordability — Support for the Homes for Homes Initiative

a New or modified performance criteria that reflect new or modified programs are shown in italics and underlined.

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Table 2.4.3: Performance Criteria for Outcome 4 (continued)Program 4.2 – Affordable Housing – To improve the supply of affordable rental housing to low and moderate income households.

Delivery Provide National Rental Affordability Scheme (NRAS) incentives in accordance with statutory criteria to approved participants



201617 Delivery complies with relevant legislation to ensure that incentives are issued accurately to approved participants who comply with the regulations, so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

Incentives are only issued when compliance with the regulations has been adhered to. It is also demand-driven in terms of approved participants needing to submit a Statement of Compliance in order to be eligible to receive an incentive. Actual performance will be reported in the DSS Annual Report. Number of incentives issued

for the relevant NRAS year (Cash payments and Refundable Tax Offsets (RTO))

Participant compliance (%) for the relevant NRAS year

201718 Delivery complies with relevant legislation to ensure that incentives are issued accurately to approved participants who comply with the regulations, so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

Incentives are only issued when compliance with the regulations has been adhered to. It is also demand-driven in terms of approved participants needing to submit a Statement of Compliance in order to be eligible to receive an incentive. Actual performance will be reported in the DSS Annual Report. Number of incentives issued

for the relevant NRAS year (Cash payments and Refundable Tax Offsets (RTO))

Percentage of dwellings that were paid an incentive for the relevant NRAS year




100


Table 2.4.3: Performance Criteria for Outcome 4 (continued)Program 4.3 – Program Support for Outcome 4 – To provide departmental funding for the annual operating costs of DSS to achieve agency objectives.





201718 As per 201617 As per 201617




101


Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 201718 Budget year, including the impact of Budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Differences in agency resourcing and financial statementsTable 3.1 recognises revenue on an accrual basis.

3.1.2 Explanatory notes and analysis of budgeted financial statements Budgeted statements of income and expenditure, assets and liabilities, and cash flows have been included for the financial years 201617 to 202021. These statements are prepared in accordance with the requirements of the Australian Government's financial budget and reporting framework.

Amounts in these statements are rounded to the nearest thousand dollars.

Departmental and Administered Items

Departmental revenues, expenses, assets and liabilities are those which are controlled by DSS. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by DSS in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities which are managed by DSS on behalf of the Government, according to set government directions. Administered expenses include subsidies, grants, personal benefit payments and suppliers.

Asset Valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued to fair value.

102


Commentary – Financial Statements

Intangibles (Departmental)

Intangibles represent computer software at cost.

Employee provisions (Departmental)

Employee provisions consist of accrued leave entitlements, accrued salary and wages and superannuation payments that are owed to employees at the end of the financial year.

Receivables (Administered)

Administered receivables represent amounts owing to the Australian Government for overpayments to benefit recipients. The figure presented in the financial statements is net of provisions recognised for bad and doubtful debts.

Non-financial assets – other (Administered)

Other non-financial assets relate to estimated administered prepayments at the end of the financial year.

Personal benefits payable (Administered)

Personal benefits payable relates to special appropriation amounts recognised as payables due to the timing of payments to benefit recipients at the end of the financial year.

Departmental

Income and expenses

DSS is budgeting for a balanced operating result in 201718 before allowing for unfunded depreciation expenses of $63.5 million. Under net cash funding arrangements, asset replacement is funded through capital appropriations.

Total operating revenue for 201718 is estimated at $446.5 million, while expenditure is estimated to be $509.9 million, inclusive of $63.5 million of unfunded depreciation. These budgeted amounts are lower than in 201617.

Balance sheet

DSS’ budgeted net asset position for 201718 is expected to be $216.8 million, $6.5 million lower than 201617.

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Administered

Income and expenses

DSS will administer the collection of non-taxation revenue estimated at $34.4 million in 201718, lower than 201617 mainly due to general interest charges associated with special appropriations.

DSS will administer programs totalling $118.1 billion in 201718, higher than in 201617 due to demographic changes and policy initiatives.

Balance sheet

Total assets administered on behalf of the Australian Government are expected to be $5.5 billion, $0.9 billion higher than in 201617.

Total liabilities administered on behalf of the Australian Government are expected to be $6.3 billion, higher than 201617 primarily due to increased personal benefits payable.

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3.2 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June



EXPENSESEmployee benefits 272,150 263,110 250,520 250,256 254,219Suppliers 196,259 178,861 155,075 133,365 118,607Depreciation and amortisation 64,204 63,455 63,655 57,167 35,021Other expenses 4,319 4,506 4,493 4,486 4,522

Total expenses 536,932 509,932 473,743 445,274 412,369LESS:OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and renderingof services 97,348 30,932 30,932 30,932 30,932Other revenue 4,640 6,565 6,565 6,565 6,565

Total own-source revenue 101,988 37,497 37,497 37,497 37,497Gains

Other gains 1,350 1,350 1,350 1,350 1,350Total gains 1,350 1,350 1,350 1,350 1,350Total own-source income 103,338 38,847 38,847 38,847 38,847Net cost of/(contribution by) services 433,594 471,085 434,896 406,427 373,522

Revenue from Government 369,390 407,630 371,241 349,260 338,501

Surplus/(deficit) attributableto the Australian Government (64,204) (63,455) (63,655) (57,167) (35,021)Total comprehensive income/(loss) (64,204) (63,455) (63,655) (57,167) (35,021)

Total comprehensive income/(loss) attributable to the Australian Government (64,204) (63,455) (63,655) (57,167) (35,021)Prepared on Australian Accounting Standards basis.

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Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of Net Cash Appropriation Arrangements201617 201718 201819 201920 202021


Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations – – – – –

less depreciation/amortisation expenses previously funded through revenue appropriationsa 64,204 63,455 63,655 57,167 35,021

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (64,204) (63,455) (63,655) (57,167) (35,021)Prepared on Australian Accounting Standards basis.a From 201011, the Government introduced net cash appropriation arrangements where Appropriation Bill

(No. 1) revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding DCBs, please refer to Table 3.5 Departmental capital budget statement.

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Table 3.2: Budgeted departmental balance sheet (as at 30 June)201617 201718 201819 201920 202021


ASSETSFinancial assets

Cash and cash equivalents 5,075 5,075 5,075 5,075 5,075Trade and other receivables 96,330 71,242 69,023 69,620 69,593

Total financial assets 101,405 76,317 74,098 74,695 74,668Non-financial assets

Leasehold improvements 44,764 51,317 49,908 49,388 48,368Property, plant and equipment 31,899 29,000 23,743 18,771 13,422Intangibles 162,123 160,071 133,941 109,115 97,405Other non-financial assets 23,369 23,369 23,369 23,369 23,369

Total non-financial assets 262,155 263,757 230,961 200,643 182,564Total assets 363,560 340,074 305,059 275,338 257,232LIABILITIESPayables

Suppliers 30,257 18,202 17,624 17,337 16,233Other payables 42,174 42,174 42,174 42,174 42,174

Total payables 72,431 60,376 59,798 59,511 58,407Provisions

Employee provisions 64,673 59,671 58,030 58,914 59,991Other provisions 3,189 3,189 3,189 3,189 3,189

Total provisions 67,862 62,860 61,219 62,103 63,180Total liabilities 140,293 123,236 121,017 121,614 121,587Net assets 223,267 216,838 184,042 153,724 135,645EQUITYa

Parent entity interestContributed equity 472,700 529,726 560,585 587,434 604,376Reserves 67,699 67,699 67,699 67,699 67,699Retained surpluses (accumulated deficit) (317,132) (380,587) (444,242) (501,409) (536,430)

Total parent entity interest 223,267 216,838 184,042 153,724 135,645Total Equity 223,267 216,838 184,042 153,724 135,645Prepared on Australian Accounting Standards basis.a ‘Equity' is the residual interest in assets after deduction of liabilities.

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Table 3.3: Departmental statement of changes in equity – summary of movement (Budget year 201718)

Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000

Opening balance asat 1 July 2017

Balance carried forward from previous period (317,132) 67,699 472,700 223,267

Adjusted opening balance (317,132) 67,699 472,700 223,267Comprehensive income

Surplus/(deficit) for the period (63,455) – – (63,455)Total comprehensive income (63,455) – – (63,455)

of which:

Attributable to the AustralianGovernment (63,455) – – (63,455)

Transactions with ownersContributions by owners

Equity Injection – Appropriation – – 40,412 40,412

Departmental Capital Budget (DCB)– – 16,614 16,614

Subtotal transactions with owners – – 57,026 57,026Estimated closing balanceas at 30 June 2018 (380,587) 67,699 529,726 216,838Closing balance attributable to the Australian Government (380,587) 67,699 529,726 216,838Prepared on Australian Accounting Standards basis.

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Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)



OPERATING ACTIVITIESCash received

Appropriations 396,112 432,718 373,460 348,663 338,528Goods and services 97,348 30,932 30,932 30,932 30,932Other 4,640 6,565 6,565 6,565 6,565

Total cash received 498,100 470,215 410,957 386,160 376,025Cash used

Employees 293,078 268,112 252,161 249,372 253,142Suppliers 199,570 189,566 154,303 132,302 118,361Other 4,319 4,506 4,493 4,486 4,522

Total cash used 496,967 462,184 410,957 386,160 376,025Net cash from/(used by)operating activities 1,133 8,031 – – –INVESTING ACTIVITIESCash used

Purchase of property, plantand equipment 89,039 65,057 30,859 26,849 16,942

Total cash used 89,039 65,057 30,859 26,849 16,942Net cash from/(used by)investing activities (89,039) (65,057) (30,859) (26,849) (16,942)FINANCING ACTIVITIESCash received

Appropriations – contributed equity 87,906 57,026 30,859 26,849 16,942

Total cash received 87,906 57,026 30,859 26,849 16,942Net cash from/(used by)financing activities 87,906 57,026 30,859 26,849 16,942Net increase/(decrease)in cash held – – – – –

Cash and cash equivalents at the beginning of the reporting period 5,075 5,075 5,075 5,075 5,075

Cash and cash equivalents at the end of the reporting period 5,075 5,075 5,075 5,075 5,075Prepared on Australian Accounting Standards basis.

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Table 3.5: Departmental capital budget statement (for the period ended 30 June)



NEW CAPITAL APPROPRIATIONS

Capital Budget – Appropriation Bill No. 1 (DCB) 53,071 16,614 16,533 16,580 16,660

Equity Injections – Appropriation Bill No. 2 34,835 40,412 14,326 10,269 282

Total new capital appropriations 87,906 57,026 30,859 26,849 16,942

Provided for:Purchase of non-financial assets 87,906 57,026 30,859 26,849 16,942

Total Items 87,906 57,026 30,859 26,849 16,942PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriationsa 35,968 48,443 14,326 10,269 282

Funded by capital appropriations – DCBb 53,071 16,614 16,533 16,580 16,660

Funded by lease incentives 28,500 – – – –

TOTAL 117,539 65,057 30,859 26,849 16,942RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLETotal purchases 117,539 65,057 30,859 26,849 16,942

Total cash used to acquire assets 117,539 65,057 30,859 26,849 16,942Prepared on Australian Accounting Standards basis.a Includes both current Appropriation Bill (No. 2) and prior Act 2/4/6 appropriations.b Does not include annual finance lease costs. Includes purchases from current and previous years'

Departmental Capital Budgets (DCBs).

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Table 3.6: Statement of asset movements (Budget year 201718)Leasehold Property, Intangibles Other Total

improvements plant &equipment

$'000 $'000 $'000 $'000 $'000

As at 1 July 2017Gross book value 57,361 42,574 343,723 23,369 467,027

Accumulated depreciation/amortisation and impairment (12,597) (10,675) (181,600) – (204,872)

Opening net book balance 44,764 31,899 162,123 23,369 262,155CAPITAL ASSET ADDITIONS

Estimated expenditure on new or replacement assetsBy purchase – appropriation equitya 6,051 2,431 39,961 – 48,443

By purchase – appropriation ordinary annual servicesb 3,420 4,535 8,659 – 16,614Total additions 9,471 6,966 48,620 – 65,057Other movementsDepreciation/amortisationexpense (2,918) (9,865) (50,672) – (63,455)Total other movements (2,918) (9,865) (50,672) – (63,455)

As at 30 June 2018Gross book value 66,832 49,540 392,343 23,369 532,084

Accumulated depreciation/amortisation and impairment (15,515) (20,540) (232,272) – (268,327)

Closing net book balance 51,317 29,000 160,071 23,369 263,757Prepared on Australian Accounting Standards basis.a 'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations

provided through Appropriation Bill (No. 2) 2017-18.b 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1) 2017-

18 for depreciation/amortisation expenses, departmental capital budgets or other operational expenses.

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Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)



EXPENSESGrants 3,053,448 2,459,197 2,680,440 2,196,985 2,124,904Subsidies 85,164 85,880 86,762 84,062 78,267Personal benefits 110,125,368 110,534,732 114,841,318 119,276,823 124,123,302Suppliers 1,039,540 1,075,615 1,055,221 1,055,280 1,042,392

Write-down and impairment of assets 296,682 964,995 591,609 439,745 189,319Other 211,721 2,947,889 5,705,777 8,737,349 9,612,304

Total expenses administered on behalf of Government 114,811,923 118,068,308 124,961,127 131,790,244 137,170,488LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Interest 24,378 19,725 11,728 13,428 15,441

Other sources of nontaxation revenues 18,397 14,695 23,121 30,521 43,074

Total non-taxation revenue 42,775 34,420 34,849 43,949 58,515

Total own-source revenue administered on behalf of Government 42,775 34,420 34,849 43,949 58,515

Total own-source income administered on behalf of Government 42,775 34,420 34,849 43,949 58,515Net Cost of services 114,769,148 118,033,888 124,926,278 131,746,295 137,111,973Surplus/(deficit) (114,769,148) (118,033,888) (124,926,278) (131,746,295) (137,111,973)

Total comprehensiveincome/(loss) (114,769,148) (118,033,888) (124,926,278) (131,746,295) (137,111,973)Prepared on Australian Accounting Standards basis.

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Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)




Cash and cash equivalentsa 199,904 195,673 221,537 253,890 294,847Receivables 3,710,859 4,596,627 4,797,491 4,725,933 4,601,747Investments 242,760 242,760 349,580 357,428 368,090

Total financial assets 4,153,523 5,035,060 5,368,608 5,337,251 5,264,684Non-financial assets

Other non-financial assets 456,142 464,701 477,685 493,949 510,485Total non-financial assets 456,142 464,701 477,685 493,949 510,485Total assets administered on behalf of Government 4,609,665 5,499,761 5,846,293 5,831,200 5,775,169LIABILITIESPayables

Suppliers 12,856 12,856 12,856 12,856 12,856Subsidies 144,999 153,648 159,851 163,977 165,874Personal benefits payable 1,662,590 1,935,329 2,233,953 2,283,663 2,334,100Grants 41,084 40,027 38,970 38,970 38,970Other payables 44,773 44,773 44,773 44,773 44,773

Total payables 1,906,302 2,186,633 2,490,403 2,544,239 2,596,573Provisions

Personal benefits provision 4,171,829 4,125,480 4,079,077 3,979,906 3,847,683Total provisions 4,171,829 4,125,480 4,079,077 3,979,906 3,847,683

Total liabilities administered on behalf of Government 6,078,131 6,312,113 6,569,480 6,524,145 6,444,256Net assets/(liabilities) (1,468,466) (812,352) (723,187) (692,945) (669,087)Prepared on Australian Accounting Standards basis.a Includes special account balances.

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Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)




Interests 39,635 33,963 24,807 21,956 21,785Other 724,896 1,721,567 1,861,127 1,675,558 1,315,568

Total cash received 764,531 1,755,530 1,885,934 1,697,514 1,337,353Cash used

Grant payments 3,054,485 2,460,254 2,684,927 2,196,985 2,124,904Subsidies paid 73,401 84,532 85,407 84,146 80,004Personal benefits 113,016,130 113,620,470 116,683,545 121,039,877 125,227,016Suppliers 1,039,541 1,075,615 1,055,224 1,058,338 1,045,450Other 205,383 2,930,040 5,685,856 8,716,548 9,590,711

Total cash used 117,388,940 120,170,911 126,194,959 133,095,894 138,068,085

Net cash from/(used by) operating activities (116,624,409) (118,415,381) (124,309,025) (131,398,380) (136,730,732)INVESTING ACTIVITIESCash used

Investments 118,271 – 106,820 7,848 10,662Loans and advances 83,929 319,035 361,317 379,275 395,441

Total cash used 202,200 319,035 468,137 387,123 406,103

Net cash from/(usedby) investing activities (202,200) (319,035) (468,137) (387,123) (406,103)Net increase/(decrease) in cash held (116,826,609) (118,734,416) (124,777,162) (131,785,503) (137,136,835)

Cash and cash equivalents at beginning of reporting period 6,291 199,904 195,673 221,537 253,890

Cash from Official Public Account for:

– Appropriations 117,861,502 120,532,783 126,732,398 133,571,640 138,571,415

Cash to Official Public Account for:

– Appropriations 841,280 1,802,598 1,929,372 1,753,784 1,393,623

Cash and cash equivalents at end of reporting period 199,904 195,673 221,537 253,890 294,847Prepared on Australian Accounting Standards basis.

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SECTION 1: ENTITY OVERVIEW AND RESOURCES..........................................................1091.1 Strategic direction statement................................................................................1091.2 Entity resource statement.....................................................................................112

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE.................................................1142.1 Budgeted expenses and performance for Outcome 1..........................................115

SECTION 3: BUDGETED FINANCIAL STATEMENTS...........................................................1213.1 Budgeted financial statements.............................................................................1213.2 Budgeted financial statements tables...................................................................122

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The Australian Institute of Family Studies (AIFS or the Institute) is the Australian Government’s key research body in the area of family wellbeing. It was established in 1980 under the Family Law Act 1975 and its role is to conduct research and communicate findings to policy-makers, service providers and the community about factors affecting family wellbeing. AIFS’ work provides an evidence base for developing policy and practice related to the wellbeing of families in Australia by:• Undertaking high-quality impartial research related to the wellbeing of

families in Australia• Disseminating findings through multiple channels to identified target

audiences• Valuing and deepening our relationships• Building and maintaining a successful organisation that ensures high

standards of performance, underpinned by ethical behaviour, sound risk and resource management, effective governance, and rigorous accountability procedures, as expected of an Australian Government agency.

AIFS undertakes a range of research activities and ensures the quality of its work through: • Rigorous ethical standards and oversight by an ethics committee• Benchmarking against international standards• Subjecting research design, methodology and results to peer review.

Its research work includes projects involving a range of data collection and analytic methods (such as quantitative, qualitative and mixed methods). This includes: undertaking longitudinal studies; analysing major national datasets, such as the Australian Bureau of Statistics (ABS) census; program evaluation; and undertaking literature reviews and submissions to government inquiries. AIFS is one of three Data Linkage Integrating Authorities in Australia. This enhances the Institute’s data holdings and capacity to make more effective use of Commonwealth data, administrative and other statistical holdings and enables AIFS to assist other agencies to benefit from linked data.

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Australian Institute of Family Studies Budget Statements

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As outlined in AIFS Agency Plan 2016–2020, the Institute’s research activities will focus on three key domains:1. Family relationships, wellbeing and change2. Social and economic participation 3. Child and family wellbeing.

Throughout 2017-18, much of AIFS’ work will again be undertaken on behalf of other agencies seeking research to inform specific policy/service-delivery decisions affecting families and their communities in Australia.

Communicating research findings will continue to be an integral part of AIFS’ work. Key stakeholders seeking this information include: the Australian Government; state, territory and local governments; providers of services to families and children; researchers and policy-makers; and the broader Australian community.

Key activities in 2017-18

The Institute’s priorities, guided by the AIFS Agency Plan 2016 – 2020, will include anumber of significant activities:• Longitudinal studies – particularly: Growing up in Australia: the

Longitudinal Study of Australian Children (LSAC); Building a New Life in Australia; the Longitudinal Study of Humanitarian Migrants; the Australian Temperament Project; and Beyond 18: the Longitudinal Study on Leaving Care – will continue to be a focus for AIFS. These studies are the key components of an evidence base to inform policy development and analysis undertaken within AIFS and by other researchers.

• Knowledge dissemination – the Institute continues to embrace new technologies to assist in disseminating research findings including new AIFS websites, newsletter delivery, targeted media, webinars, videos and various forms of social media. In particular, the Child Family Community Australia information exchange at AIFS is an important vehicle for translating research findings, disseminating practice-relevant information, and fostering engagement between researchers, policy-makers, and child and family welfare practitioners.

• The Australian Gambling Research Centre (AGRC) commenced operation at AIFS in July 2013 and was established under the then National Gambling Reform Act 2012 to complement the work of a range of research organisations. It draws together the evidence and identifies gaps in existing research and evaluation data.

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• The AIFS Webinar/Seminar Series provides a platform for world-class speakers to share their knowledge on matters affecting family wellbeing. These activities reach a broad audience in Australia and beyond.

• As in past years, AIFS will continue to build relationships with organisations that also have a stake in research, policy and practice that affect family wellbeing. These relationships help to efficiently build research capability and communications reach, for the benefit of the Australian Government and the Australian community.

• Finally, the Institute will maintain high standards in relation to its research and corporate governance through adherence to the standards set by the National Statement on Ethical Conduct in Human Research, through use of peer reviewing of projects and publications, and involvement of its Advisory Council, the AGRC Expert Advisory Group and the Risk Assessment and Audit Committee.

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Table 1.1 shows the total resources from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.


Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses for Outcome 1’ table in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

Table 1.1: Australian Institute of Family Studies resource statement – Budget estimates for 201718 as at Budget May 2017


actual$'000 $'000

DepartmentalAnnual appropriations - ordinary annual servicesa

Prior year appropriations availableb 3,832 4,388Departmental appropriation 4,458 4,683s 74 Retained revenue receiptsc 8,073 7,534Departmental capital budgetd 183 190

Annual appropriations - other services - non-operatinge

Equity injection – 907Total departmental annual appropriations 16,546 17,702Total departmental resourcing 16,546 17,702Total resourcing for the Australian Institute of Family Studies 16,546 17,702

201617 201718Average staffing level (number) 78 82Prepared on Australian Accounting Standards basis.Note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement.

a Appropriation Bill (No. 1) 201718.b Estimated adjusted balance carried forward from previous year.c Estimated retained revenue receipts under section 74 of the PGPA Act.d Departmental capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of

ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a ‘contribution by owner’.

e Appropriation Bill (No. 2) 201718.

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1.3 BUDGET MEASURES

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

Table 1.2: Australian Institute of Family Studies 201718 budget measuresPart 1: Measures announced since the 201617 MYEFO

2016-17 2017-18 2018-19 2019-20 2020-21Program $'000 $'000 $'000 $'000 $'000

Expense measures

Public Service Modernisation Fund - agency sustainability streama

1.1


Total – – – – –

Total Expense Measures


Total – – – – –

Capital measuresPublic Service Modernisation Fund - agency sustainability streama

1.1


Total – – – – –

Total Capital Measures


Total – – – – –Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.a The lead entity for the measure: Public Service Modernisation Fund - agency sustainability stream is

Cross Portfolio. The full measure description and package details appear in Budget Paper No. 2 under Cross Portfolio. AIFS will receive funding of $1.158m in 2017-18. Provision for the Public Service Modernisation Fund was included in the Budget estimates as part of the 2016-17 Budget measure: Public Service Transformation and the Efficiency Dividend.

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The most recent corporate plan for Australian Institute of Family Studies can be found at: www.aifs.gov.au.

The most recent annual performance statement can be found at: www.aifs.gov.au.

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Outcome 1Increased understanding of factors affecting how families function by conducting research and communicating findings to policy-makers, service providers and the broader community.


2016-17 2017-18 2018-19 2019-20 2020-21Estimated Budget Forward Forward Forward


Program 1.1: (Australian Institute of Family Studies)Departmental expenses


Expenses not requiring appropriation in the budget yearb

341 534 332 370 403


Total expenses forProgram 1.1 12,443 12,725 12,833 12,772 13,425Outcome 1 Totals by appropriation typeDepartmental expenses


Expenses not requiring appropriation in the budget yearb

341 534 332 370 403

Departmental total 12,443 12,725 12,833 12,772 13,425Total expenses for Outcome 1

12,443 12,725 12,833 12,772 13,425

2016-17 2017-18Average Staffing Level (number)

78 82Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change.a Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.b ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation


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Table 2.1.2: Performance criteria for Outcome 1Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 201718 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Increased understanding of factors affecting how families function by conducting research and communicating findings to policy-makers, service providers and the broader community.

Program 1.1 – To increase understanding of factors affecting how Australian families function by conducting research and communicating findings to policy-makers, service providers and the broader community, AIFS will manage its resources to: undertake high-quality, impartial research relating to the wellbeing of families in Australia; disseminate findings through multiple channels to identified target audiences; value and develop relationships with organisations that have a stake in research, policy and practice

influencing the wellbeing of families; and build and maintain a successful organisational culture that ensures high standards of performance,

underpinned by ethical behaviour, sound risk and resource management, effective governance, and rigorous accountability procedures, as expected of an Australian Government agency.

Delivery Research outputs, including research projects involving a range of data

collection and analytical methods (including qualitative, quantitative and mixed

methods), as well as undertaking longitudinal studies and analyses of major

datasets such as the ABS census, data linkage and completing literature reviews

and submissions to government inquiries.

The Institute will focus its work across four strategic areas:

Create knowledge about families and communities

Communicate knowledge about families and communities

Connect research, policy and practice

Activate organisational capabilityCommunication activities, include:

information exchange activities;

publications such as the Family Matters journal, research reports and

papers, as well as articles in journals and books published elsewhere;

conferences, seminars, webinars, forums, etc. hosted by AIFS;

websites and electronic publishing;

presentations by AIFS’ staff at conferences and forums related to the

wellbeing of families in Australia;

Government submissions; and

bibliographic and other library services.

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Table 2.1.2: Performance criteria for Outcome 1 (continued)Performance informationProvide research and disseminate research findings to improve the wellbeing of Australian families.


2016-17 The number of commissioning bodies commissioning work by the Institute

20

The number of research projects at the Institute

45

The number of longitudinal studies at the Institute

5

The number of publications disseminated or downloaded from the AIFS website

3 million

The total number of media mentions 3,500

The number of publications released by AIFS 100

The number of presentations given by the Institute’s staff

100

The number of bibliographic records generated at the Institute

2,000

The total attendance at AIFS conferences, seminars, webinars and forums

2,500

The number of government submissions 12

The number of conferences, seminars and forums hosted by the Institute

18

The number of partnerships, MOUs and collaborations in place

8

The percentage of research staff with postgraduate qualifications

60 per cent

The reduction in operational costs 5 per cent

The percentage of clients satisfied with AIFS’ services

80 per cent

The percentage of stakeholders satisfied with AIFS’ services

80 per cent

a New or modified performance criteria that reflect new or materially changed programs are shown in italics.

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Table 2.1.2: Performance criteria for Outcome 1 (continued)Year Performance criteriaa Targets


20


45


5


3.2 million




100


2,200


3,000


10


18



60 per cent



85 per cent


85 per cent


130




22


47


5


3.2 million




120


2,300


3,200


12


20



65 per cent



85 per cent


85 per cent


131



2019-20 and beyond The number of commissioning bodies commissioning work by the Institute

22


47


5


3.4 million




120


2,400


3,500


12


22



70 per cent

The reduction in operational costs Steady


90 per cent


90 per cent

Purposes The Institute’s mission is to increase the understanding of factors affecting Australian families by conducting research and communicating findings to policy makers, service providers and the broader community.



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Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 201718 Budget year, including the impact of Budget measures and resourcing on financial statements.


3.1.1 Differences between entity resourcing and financial statementsThe financial statements in Section 3 recognise revenue on an accrual basis and the Entity Resourcing is based on available appropriation and cash receipts.

3.1.2 Explanatory notes and analysis of budgeted financial statementsDepartmental

Income and Expenses

AIFS is budgeting for a break-even position in 201718 and the forward years after adjusting for depreciation and amortisation expenses.

Total own-sourced revenue for 201718 is expected to be $7.5 million and revenue from government is expected to be $4.7 million.

Balance Sheet

AIFS has a budgeted net asset position of $2.0 million in 201718.

Total Assets for 201718 are estimated to be $7.6 million, comprising $6.0 million of financial assets and $1.6 million in non-financial assets.

Total Liabilities for 201718 are estimated to be $5.6 million, with the primary liabilities being accrued employee entitlements, which total $2.2 million, supplier payables $0.2 million and unearned revenue $3.2 million.

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EXPENSESEmployee benefits 8,137 9,299 9,389 9,578 9,768

Suppliers 3,965 2,892 3,112 2,824 3,254

Depreciation and amortisation 341 534 332 370 403

Total expenses 12,443 12,725 12,833 12,772 13,425LESS:OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and rendering of services

7,423 7,287 7,872 7,729 8,328

Other revenue 189 189 189 189 189Total own-source revenue 7,612 7,476 8,061 7,918 8,517Gains

Other gains 32 32 32 32 32Total gains 32 32 32 32 32Total own-source income 7,644 7,508 8,093 7,950 8,549Net cost of/(contribution by) services 4,799 5,217 4,740 4,822 4,876

Revenue from Government 4,458 4,683 4,408 4,452 4,473Surplus/(deficit) attributable to the Australian Government (341) (534) (332) (370) (403)Total comprehensive income/(loss) attributable to the Australian Government (341) (534) (332) (370) (403)Note: Impact of Net Cash Appropriation Arrangements

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations – – – – –

less depreciation/amortisation expenses previously funded through revenue appropriationsa 341 534 332 370 403

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (341) (534) (332) (370) (403)Prepared on Australian Accounting Standards basis.a From 201011, the Government introduced net cash appropriation arrangements where Appropriation Bill

(No. 1) revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Bill (No. 1) equity appropriations. For information regarding DCBs, please refer to Table 3.5 Departmental capital budget statement.

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Cash and cash equivalents 182 327 318 286 301Trade and other receivables 5,403 5,323 5,382 5,520 5,555Other financial assets 381 374 403 396 426


Property, plant and equipment 866 1,426 1,202 1,040 848Intangibles 86 89 170 151 130Other non-financial assets 198 132 156 141 163

Total non-financial assets 1,150 1,647 1,528 1,332 1,141Total assets 7,116 7,671 7,631 7,534 7,423

LIABILITIESPayables

Suppliers 239 159 189 171 196Other payables 3,239 3,237 3,242 3,240 3,247


Employee provisions 2,176 2,250 2,318 2,422 2,492Total provisions 2,176 2,250 2,318 2,422 2,492Total liabilities 5,654 5,646 5,749 5,833 5,935Net assets 1,462 2,025 1,882 1,701 1,488

EQUITYa

Parent entity interestContributed equity 2,898 3,995 4,184 4,373 4,563Reserves 393 393 393 393 393Retained surplus (accumulated deficit) (1,829) (2,363) (2,695) (3,065) (3,468)

Total parent entity interest 1,462 2,025 1,882 1,701 1,488Total Equity 1,462 2,025 1,882 1,701 1,488Prepared on Australian Accounting Standards basis.a ‘Equity’ is the residual interest in assets after deduction of liabilities.

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Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2017Balance carried forward from previous period (1,829) 393 2,898 1,462

Adjusted opening balance (1,829) 393 2,898 1,462Comprehensive income

Surplus/(deficit) for the period (534) – – (534)Total comprehensive income (534) – – (534)

of which:Attributable to the Australian Government (534) – – (534)


Equity Injection – Appropriation – – 907 907Departmental Capital Budget (DCBs) – – 190 190

Sub-total transactions with owners – – 1,097 1,097Estimated closing balanceas at 30 June 2018 (2,363) 393 3,995 2,025Closing balance attributable to the Australian Government (2,363) 393 3,995 2,025Prepared on Australian Accounting Standards basis.

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Appropriations 3,284 4,756 4,378 4,307 4,468

Sale of goods and rendering of services 7,863 7,311 7,824 7,753 8,278Other 210 223 211 212 213

Total cash received 11,357 12,290 12,413 12,272 12,959Cash used

Employees 8,131 9,225 9,322 9,474 9,697Suppliers 3,998 2,920 3,100 2,830 3,247

Net GST paid 50 – – – –Total cash used 12,179 12,145 12,422 12,304 12,944Net cash from/(used by) operating activities (822) 145 (9) (32) 15INVESTING ACTIVITIESCash used

Purchase of property, plant, equipment and intangibles 183 1,097 189 189 190

Total cash used 183 1,097 189 189 190Net cash from/(used by) investing activities (183) (1,097) (189) (189) (190)FINANCING ACTIVITIESCash received

Contributed equity 183 1,097 189 189 190Total cash received 183 1,097 189 189 190Net cash from/(used by) financing activities 183 1,097 189 189 190Net increase/(decrease) in cash held (822) 145 (9) (32) 15

Cash and cash equivalents at the beginning of the reporting period 1,004 182 327 318 286

Cash and cash equivalents at the end of the reporting period 182 327 318 286 301Prepared on Australian Accounting Standards basis.

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Table 3.5: Departmental capital budget statement (for the period 30 June)201617 201718 201819 201920 202021



Capital budget – Appropriation Bill No. 1 (DCB) 183 190 189 189 190Equity injections – Bill 2 – 907 – – –

Total new capital appropriations

183 1,097 189 189 190Provided for:

Purchase of non-financial assets

183 1,097 189 189 190Total Items 183 1,097 189 189 190

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation – DCBa 183 190 189 189 190Funded by capital appropriation – 907 – – –

TOTAL 183 1,097 189 189 190

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSETMOVEMENT TABLETotal purchases 183 1,097 189 189 190

Total cash used to acquire assets 183 1,097 189 189 190Prepared on Australian Accounting Standards basis.a Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets.

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Table 3.6: Statement of asset movements (Budget year 201718)Other property, Computer Total

plant and software andequipment intangibles

$'000 $'000 $'000As at 1 July 2017

Gross book value 1,187 296 1,483Accumulated depreciation/amortisation and impairment (321) (210) (531)

Opening net book balance 866 86 952CAPITAL ASSET ADDITIONS

Estimated expenditure on new or replacement assetsBy purchase – appropriation equitya 907 – 907By purchase – appropriation ordinary annual servicesb 155 35 190Total additions 1,062 35 1,097Other movementsDepreciation/amortisation expense (502) (32) (534)Total other movements (502) (32) (534)

As at 30 June 2018Gross book value 2,249 331 2,580Accumulated depreciation/amortisation and impairment (823) (242) (1,065)

Closing net book balance 1,426 89 1,515Prepared on Australian Accounting Standards basis.a 'Appropriation equity' refers to equity injections provided through Appropriation Bill (No. 2) 201718.b ‘Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1) 2017-

18 for depreciation/amortisation expenses, DCBs or other operational expenses.

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SECTION 1: ENTITY OVERVIEW AND RESOURCES..........................................................1331.1 Strategic direction statement................................................................................1331.2 Entity resource statement.....................................................................................1351.3 Budget measures.................................................................................................137

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE.................................................1382.1 Budgeted expenses and performance for Outcome 1..........................................139

SECTION 3: BUDGETED FINANCIAL STATEMENTS...........................................................1453.1 Budgeted financial statements.............................................................................1453.2 Budgeted financial statements tables...................................................................148

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The National Disability Insurance Agency (NDIA or the Agency) was established under the National Disability Insurance Act 2013 (the Act) and has responsibility for administering the National Disability Insurance Scheme (NDIS or the Scheme). The Act (in conjunction with other laws) gives effect to Australia’s obligations under the United Nations (UN) Convention on the Rights of Persons with Disabilities.

The NDIS is a new way of providing support to Australians with significant and permanent disability, their families and carers.

The Agency is overseen by a Board which has responsibility for ensuring the proper, efficient and effective performance of the Agency’s functions, and setting the Agency’s strategic direction. The Agency’s governance structure also includes an Independent Advisory Council that provides advice to the Board on how effectively the Agency is delivering the NDIS.

Key areas of focusThe Agency is currently overseeing the transition of the NDIS to full scheme, in accordance with bilateral agreements between the Commonwealth and each state and territory. This represents a rapid scaling, with national participant numbers expected to increase from over 30,000 at 1 July 2016 to over 460,000 when the NDIS reaches full scheme.

The Agency’s emphasis throughout its transition to full scheme is on delivering the bilateral agreements through quality, outcomes-focussed plans, in a manner which supports the long term financial sustainability of the Scheme.

The Agency will achieve this through a continued focus on the following areas, in accordance with the Council of Australian Governments (COAG) Disability Reform Council’s statement of strategic guidance:

Ensuring participant and community outcomes: The Agency will work to ensure that participants across Australia, including those in rural and remote areas, have access to reasonable and necessary supports, and will be empowered to exercise choice and control to achieve their aspirations.

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National Disability Insurance Agency Budget Statements

Building and maintaining public trust and confidence: The Agency will build trust and confidence amongst participants, carers, the community and the disability services market through proactive communication and engagement.

Identifying strategic risks early and managing risks well: The Agency will focus on developing robust risk management processes designed to minimise potential exposure and harness opportunity.

Supporting market development: The Agency will, in its role as market steward, support the development of the disability support services market with the aim of ensuring that participants have access to a high quality, diverse and innovative marketplace of providers.

Safeguarding the sustainability of the NDIS: The Agency will ensure the Scheme is financially sustainable in the long term by adhering to insurance principles and taking early action to minimise emerging cost pressures.

Developing a high-performing Agency: The Agency must be a high-performing service organisation with the systems, skills, capabilities and mindset to deliver the NDIS.

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Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.


Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome 1’ table in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

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Table 1.1: National Disability Insurance Agency resource statement – Budget estimates for 201718 as at Budget May 2017

2016-17 2017-18Estimated Estimate

actual$'000 $'000

Opening balance/cash reserves at 1 July 692,789 647,805Funds from GovernmentAnnual appropriations - ordinary annual servicesa

Outcome 1 1,598,466 1,026,117Annual appropriations - other servicesb

Equity injection 116,197 –Total annual appropriations 1,714,663 1,026,117

Amounts received from related entities Amounts from portfolio departmentc – 2,700,151Total amounts received from related entities – 2,700,151Total funds from Government 1,714,663 3,726,268

Funds from other sourcesInterest 12,568 –Contributions from state and territory governmentsd 1,474,824 3,913,776Resources received free of chargee 624,794 1,500,021Other 561 –

Total funds from other sources 2,112,747 5,413,797Total net resourcing for the National Disability Insurance Agency 4,520,199 9,787,870

2016-17 2017-18Average staffing level (number) 1,849 2,460

Third party payments from and on behalf of other entities2016-17 2017-18

estimated estimateactual$'000 $'000

Payments made to other entities for the provision of services 75,518 74,959Prepared on a resourcing (i.e. appropriations available) basis.All figures shown above are GST exclusive – these may not match figures in the cash flow statement.The National Disability Insurance Agency (NDIA) is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Department of Social Services, as responsible non-corporate Commonwealth entity (NCCE), which are then paid to the NDIA and are considered 'departmental' for all purposes.a Appropriation Bill (No. 1) 201718.b Appropriation Bill (No. 2) 201718.c Commonwealth cash contributions for reasonable and necessary care and support for participants and

community inclusion and capacity development grants.d Cash contributions from state and territory governments.e Services provided in-kind to participants on behalf of the Australian Government and/or state and territory

governments.

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1.3 BUDGET MEASURES

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

Table 1.2: National Disability Insurance Agency 201718 Budget measuresPart 1: Measures announced since the 201617 MYEFO

201617 201718 201819 201920 202021Program $'000 $'000 $'000 $'000 $'000

Expense measures

National Disability Insurance Scheme - finalisation of transition arrangementsa

1.1, 1.2,1.3

Departmental expenses – (258,846) (447,344) (541,129) (767,164)Total – (258,846) (447,344) (541,129) (767,164)

National Disability Insurance Scheme Quality and Safeguards Commission - establishmentb

1.3

Departmental expenses – 426 (463) (2,214) (2,914)Total – 426 (463) (2,214) (2,914)Total expense measures

Departmental expenses – (258,420) (447,807) (543,343) (770,078)Total – (258,420) (447,807) (543,343) (770,078)Capital measures

National Disability Insurance Scheme Quality and Safeguards Commission - establishmentb

1.3

Departmental expenses – (1,031) (1,031) – –Total – (1,031) (1,031) – –Total capital measure

Departmental – (1,031) (1,031) – –Total – (1,031) (1,031) – –Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.a The lead entity for the measure: National Disability Insurance Scheme - finalisation of

transition arrangements is the Department of Social Services. A full measure description and package details appear in Budget Paper No. 2 under the Social Services Portfolio.

b The lead entity for the measure: National Disability Insurance Scheme Quality and Safeguards Commission - establishment is the Department of Social Services. A full measure description and package details appear in Budget Paper No. 2 under the Social Services Portfolio.

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The most recent corporate plan for the National Disability Insurance Agency can be found at: www.ndis.gov.au/about-us/information-publications-and-reports/corporate-plan.html

The most recent annual performance statement can be found at: www.ndis.gov.au/about-us/information-publications-and-reports/annual-reports.html

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http://www.ndis.gov.au/about-us/information-publications-and-reports/annual-reports.html

http://www.ndis.gov.au/about-us/information-publications-and-reports/annual-reports.html

http://www.ndis.gov.au/about-us/information-publications-and-reports/corporate-plan.html%20

http://www.ndis.gov.au/about-us/information-publications-and-reports/corporate-plan.html%20



Outcome 1To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

Linked programs

Department of Social ServicesPrograms

Program 3.1 – Disability Mental Health and Carers Program 3.2 – National Disability Insurance Scheme

Contribution to Outcome 1 made by linked programsThe Department of Social Services contributes to improving the wellbeing and social and economic participation of people with a disability, their families and carers by supporting the National Disability Insurance Agency, primarily, with policy support, ongoing negotiation of agreements with states and territories for transition to full scheme, administration of the Agency’s funding arrangements and payments of grants for Program 1.2.Department of Human ServicesPrograms


Contribution to Outcome 1 made by linked programsThe Department of Human Services contributes to improving the wellbeing and social and economic participation of people with a disability, their families and carers by supporting the National Disability Insurance Agency with the delivery of shared services arrangements, provision of specialised resources, and the provision of payments on the Agency’s behalf.

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Table 2.1.1: Budgeted expenses for Outcome 1This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by funding sources.

Outcome 1: To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.



Program 1.1: Reasonable and necessary care and support for participants

Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 873,381 – – – –

Payment from related entities – 2,631,280 5,344,717 8,348,947 9,208,298

Revenues from other independent sourcesa 2,099,618 5,413,797 8,922,369 9,506,881 9,957,196

Total expenses forProgram 1.1 2,972,999 8,045,077 14,267,086 17,855,828 19,165,494Program 1.2: Community inclusion and capacity development grants


Ordinary annual services (Appropriation Bill No. 1) 33,284 – – – –

Payment from related entities – 68,871 105,264 119,348 118,603

Total expenses forProgram 1.2 33,284 68,871 105,264 119,348 118,603Program 1.3: Agency costs


Ordinary annual services (Appropriation Bill No. 1) 691,801 1,026,117 1,393,872 1,143,913 1,096,187

Revenues from other independent sources 13,129 – – – –

Expenses not requiring appropriation in the budget year – 6,900 – – –

Total expenses forProgram 1.3 704,930 1,033,017 1,393,872 1,143,913 1,096,187

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Table 2.1.1: Budgeted expenses for Outcome 1 (continued)201617 201718 201819 201920 202021


Outcome 1 totals by resource type


Ordinary annual services (Appropriation Bill No. 1) 1,598,466 1,026,117 1,393,872 1,143,913 1,096,187

Payment from related entities – 2,700,151 5,449,981 8,468,295 9,326,901

Revenues from other independent sourcesa 2,112,747 5,413,797 8,922,369 9,506,881 9,957,196

Expenses not requiring appropriation in the budget year – 6,900 – – –

Total expenses forOutcome 1 3,711,213 9,146,965 15,766,222 19,119,089 20,380,284

201617 201718Average staffing level (number) 1,849 2,460

a Revenues from other independent sources in Program 1.1 includes cash contributions from state and territory governments and services provided in-kind to participants on behalf of either the Australian Government and/or state and territory governments.

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Table 2.1.2: Performance criteria for Outcome 1Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 201718 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

Program 1.1 – Reasonable and necessary care and support for participants – the objective of this program is to provide funding for reasonable and necessary support to eligible people with a disability through consistent, high quality plans, and to ensure they are in control and have choices to appropriately support their independence and social and economic participation.This program contributes to the outcome by the delivery of financially sustainable funding for participants’ reasonable support, enabling participants to source services in their plans to achieve their goals.Delivery The program provides funding for reasonable and necessary support to eligible

participants in the Scheme with an approved plan. Funding arrangements are via cash payments to participants and registered service providers and the allocation of existing Commonwealth and state and territory arrangements.



201617 Number of participants Costs of financially

sustainable supports Participant satisfaction

The number of participants entering the Scheme by 30 June 2017 will be in line with bilateral estimates, noting that forecasts are dependent on a number of factors including working with jurisdictions to contact transitioning participants.

Considering the number of participants who have entered the Scheme and distribution of packages committed to these participants, the Scheme is within the full scheme funding envelope for 2016-17.

Participant satisfaction survey results are positive.

201718 Number of participants Costs of financially

sustainable supports Participant satisfaction

Number of participants entering the Scheme as per bilateral agreements and actuarial forecasts including any remaining 2016-17 participants if required.

Costs are within expected amounts as per bilateral agreements and actuarial forecasts.

Participant satisfaction survey results are positive.


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Table 2.1.2: Performance criteria for Outcome 1 (continued)Purposes Improving outcomes for people with disability

Supporting people with disability to pursue their goals and maximise their independence and social and economic participation.Providing reasonable and necessary supports, including early intervention supports, for Scheme participants.Supporting people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports.Developing the capacity of people with disability to participate in the community and in employment.

Material changes to Program 1.1 resulting from the following measures: Nila Participant satisfaction has previously been included within the performance criteria for Program 1.3 –

Agency costs and is now shown above.

Program 1.2 – Community inclusion and capacity development grants – the objective of this program is to provide funding to organisations to assist them to increase social and community participation for people with a disability.By increasing community and social involvement of people with a disability, this program directly targets and contributes to those parts of the outcome. This has additional benefits for increasing community awareness of people with a disability and their capabilities which will improve economic participation and thus independence.

Delivery The Agency will provide funding to organisations via grants which will allow them to assist all people with a disability, not only eligible participants.



201617 Number and nominal value of grants provided

The Agency will successfully issue all grants within agreed timeframes to allow organisations to fulfil the objectives of the program.

201718 Number and nominal value of grants provided

All grants successfully delivered in accordance with the program agreed with the Commonwealth and state and territory jurisdictions.


Purposes Improving outcomes for people with disabilitySupporting people with disability to pursue their goals and maximise their independence and social and economic participation.Developing the capacity of people with disability to participate in the community and in employment.


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Table 2.1.2: Performance criteria for Outcome 1 (continued)Program 1.3 – Agency costs – the Agency costs program ensures efficient and effective use of the Agency operating resources to implement the outcomes of the Agency.This program contributes to the outcome as it is the primary delivery mechanism for the implementation of the Scheme. The Agency is responsible for assessing applicants to the Scheme and developing plans, for those whom are eligible, in a manner which is based on insurance principles, and administering the payments made under Program 1.1 and 1.2.

Delivery The Agency develops and maintains the strategies and frameworks to be used in the transition of the NDIS to full scheme. These include the process for assessment and planning, disability services market development and community engagement and communications. The Agency executes these through a network of service centres throughout Australia and by working together with its community partners to deliver elements of the Scheme to people with a disability and the wider sector.



201617 Ratio of operating expenses to Scheme costs

The Agency is able to successfully achieve delivery of the service network across Australia

Agency is transitioning toward achieving operating expenses to Scheme costs target ratio.

Required service network across Australia is operational as per bilateral agreements.

201718 Ratio of operating expenses to Scheme costs

The Agency is able to successfully achieve delivery of service network across Australia

Agency is transitioning toward achieving operating expenses to Scheme costs target ratio.

Required service network across Australia is operational as per bilateral agreements.


Purposesb Funding the operations of the Agency and its delivery partners to achieve the following:Improving outcomes for people with disabilityFacilitating the development of a nationally consistent approach to the access to, and the planning and funding of, supports for people with disability.Supporting people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports.Safeguarding the sustainability of the NDISBuilding a sustainable scheme based on NDIS insurance principles, including assessing and reporting on whether NDIS investments improve outcomes and minimise lifetime support costs.Building public trust and stakeholder confidenceBuilding trust and confidence amongst stakeholders (participants, carers, the community and the disability services market) through communication and engagement.

Material changes to Program 1.3 resulting from the following measures: Nila Participant satisfaction has previously been included within the performance criteria for Program 1.3 and is

now shown within the performance criteria for Program 1.1 – Reasonable and necessary care and support for participants.

b These purposes will be reflected in the Agency’s forthcoming corporate plan.

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Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 201718 budget year, including the impact of budget measures and resourcing on financial statements.


3.1.1 Explanatory notes and analysis of budgeted financial statementsIncome and expenses

In 201718 the NDIS enters the second year of transition to full scheme. The large uptake in participants is represented by the increase in grant expenses, which includes programs 1.1 and 1.2, to $8.1 billion in 201718. Grant expenses continue to increase across the forward estimates as further participants join the Scheme, rising to $19.3 billion in 202021.

The growth in supplier expenses, which represents the largest component of Agency operating costs, from $458.5 million in 201617 to $765.1 million in 201718 is primarily driven by the growth in local area coordination services provided by the NDIA’s community partners. This growth continues in 2018-19 reaching a peak of $1.1 billion before reducing as the NDIS moves from the transition phase to full scheme. Similarly, employee benefit expenses increase to $236.6 million in 201718 and $274.3 million in 201819 as the NDIS rolls out to new locations prior to stabilising once full scheme is reached.

Sale of goods and services revenue increases from $1.5 billion in 201617 to $6.6 billion in 201718 and further increasing to $17.4 billion by 202021. This change is due to the increase in participant numbers as the Scheme continues transition to full scheme as well as a change in the mechanism by which the Agency is funded by the Commonwealth for programs 1.1 and 1.2.

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In the 201617 year, the Agency was appropriated Commonwealth funding for each of its three programs. From 201718 onwards, Commonwealth funding for programs 1.1 and 1.2 will be appropriated to the Department of Social Services and paid to the NDIA as required. These amounts are reflected as revenue from the sale of goods and services in these years. Commonwealth funding for the Agency’s operating costs will continue to be appropriated to the NDIA and is reflected as revenue from Government. This change has resulted in a movement of revenue from Government to sale of goods and services expense in 201718 and over the forward estimates when compared to the previous budget.

The Agency receives services provided in-kind to participants on behalf of the Australian Government and state and territory governments, reflected as resources received free of charge. This revenue rises from $624.8 million in 201617 to $1.5 billion in 201718 and increases over the forward estimates, as the number of NDIS participants who are receiving these supports increases.

The Agency is forecasting an operating surplus of $208.5 million in 201617. This is primarily a result of lower than expected payments to participants for reasonable and necessary support caused by slower than expected phasing of participants into the Scheme and lower than anticipated utilisation of support by participants. In 201718, the Agency will incur a one-off asset write-down associated with transitioning the administration of the Western Australian (WA) NDIS Trial Site to the WA Government of $6.9 million. This will lead to a $6.9 million operating loss in that year, with the Agency otherwise budgeting for a break even position from 201819.

Balance sheetThe Agency is budgeting for a net asset position of $450.3 million in 2016-17, falling slightly to $443.4 million in 201718 as a result of the budgeted operating loss in 201718.

Total assets in 201718 are forecast to be $814.9 million, comprised of $657.3 million in financial assets and $157.6 million in non-financial assets. The most significant asset is cash of $648.8 million which will be used to fund payments for reasonable support as well as the Agency’s operations. Total liabilities are expected to be $371.5 million, comprised primarily of $87.5 million in supplier payables, $215.8 million in unclaimed support grant payments and $43.7 million in unpaid employee entitlements. The remaining amounts relate to $18.7 million as a provision for makegood and $5.8 million in other payables.

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Statement of cash flowsThe Agency’s budgeted cash flows largely reflect activity in the income statement, with no significant variations between income and expenses and their associated cash flows. The total cash received from operating activities will increase from $3.2 billion in 201617 to $7.7 billion in 201718, rising to $18.6 billion in 202021. This primarily reflects increased funding from the Commonwealth, and state and territory governments as the NDIS moves towards full scheme. This will be offset by increased cash payments for reasonable and necessary support, and employee and supplier expenses as the Scheme grows.

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Capital budget statementThe Agency will invest $106.4 million in the purchase of leasehold improvements during 201718 as new service centres are established to facilitate the NDIS transition. These will be funded through the use of prior year unspent equity injections. A further $107.8 million will be invested in the final year of transition in 201819 by which time the Agency’s network will be fully established, requiring a much lower level of capital funding to maintain in 201920 and beyond.

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EXPENSESEmployee benefits 194,793 236,563 274,273 263,996 269,069Suppliers 458,533 765,059 1,087,365 846,949 793,147Grants 2,834,682 8,113,948 14,372,350 17,975,176 19,284,097Depreciation and amortisation 14,727 24,495 32,234 32,968 33,971Write-down and impairment of assets – 6,900 – – –

Total expenses 3,502,735 9,146,965 15,766,222 19,119,089 20,380,284LESS:OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and rendering of services 1,474,824 6,613,927 12,412,310 16,181,407 17,411,194

Resources received free of charge 624,794 1,500,021 1,960,040 1,793,769 1,872,903Interest 12,568 – – – –Other 561 – – – –

Total own-source revenue 2,112,747 8,113,948 14,372,350 17,975,176 19,284,097Total own-source income 2,112,747 8,113,948 14,372,350 17,975,176 19,284,097Net (cost of)/contribution by services (1,389,988) (1,033,017) (1,393,872) (1,143,913) (1,096,187)

Revenue from Government 1,598,466 1,026,117 1,393,872 1,143,913 1,096,187

Surplus/(deficit) attributable to the Australian Government 208,478 (6,900) – – –Total comprehensive income/(loss) attributable to the Australian Government 208,478 (6,900) – – –Prepared on Australian Accounting Standards basis.

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Cash and cash equivalents 692,789 648,805 712,199 728,545 757,251Trade and other receivables 4,824 8,528 10,871 8,982 8,245


Land and buildings 82,145 157,491 233,104 207,997 184,688Property, plant and equipment 372 71 44 31 31

Total non-financial assets 82,517 157,562 233,148 208,028 184,719Total assets 780,130 814,895 956,218 945,555 950,215

LIABILITIESPayables

Suppliers 63,483 87,456 111,282 92,072 84,580Other payables 3,899 5,837 7,063 6,075 5,689


Employee provisions 34,386 43,708 52,645 53,809 54,973Grants 215,848 215,848 215,848 215,848 215,848Other provisions 12,250 18,682 19,196 19,719 20,431

Total provisions 262,484 278,238 287,689 289,376 291,252Total liabilities 329,866 371,531 406,034 387,523 381,521Net assets 450,264 443,364 550,184 558,032 568,694

EQUITYa

Parent entity interestContributed equity 205,733 205,733 312,553 320,401 331,063Reserves 1,881 1,881 1,881 1,881 1,881Retained surplus (accumulated deficit) 242,650 235,750 235,750 235,750 235,750

Total parent entity interest 450,264 443,364 550,184 558,032 568,694Total Equity 450,264 443,364 550,184 558,032 568,694Prepared on Australian Accounting Standards basis.a ‘Equity’ is the residual interest in assets after deduction of liabilities.

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Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance asat 1 July 2017

Balance carried forward from previous period 242,650 1,881 – 205,733 450,264

Adjusted opening balance 242,650 1,881 – 205,733 450,264Comprehensive income

Surplus/(deficit) for the period (6,900) – – – (6,900)Total comprehensive income (6,900) – – – (6,900)

of which:

Attributable to the Australian Government (6,900) – – – (6,900)


Equity Injection – Appropriation – – – – –

Sub-total transactions with owners – – – – –Estimated closing balance asat 30 June 2018 235,750 1,881 – 205,733 443,364Closing balance attributable to the Australian Government 235,750 1,881 – 205,733 443,364Prepared on Australian Accounting Standards basis.

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Appropriations 1,598,466 1,026,117 1,393,872 1,143,913 1,096,187Sale of goods and rendering of services 1,492,960 6,613,927 12,412,310 16,181,407 17,411,194Interest 14,023 – – – –Net GST received 44,028 80,847 105,679 89,818 82,096Other 561 – – – –

Total cash received 3,150,038 7,720,891 13,911,861 17,415,138 18,589,477Cash used

Employees 185,113 227,241 265,336 262,832 267,905Suppliers 492,874 817,264 1,169,814 954,550 881,672Grants 2,129,957 6,613,930 12,412,317 16,181,410 17,411,194

Total cash used 2,807,944 7,658,435 13,847,467 17,398,792 18,560,771Net cash from/(used by) operating activities 342,094 62,456 64,394 16,346 28,706INVESTING ACTIVITIESCash used

Purchase of property, plant, equipment and intangibles 71,932 106,440 107,820 7,848 10,662

Total cash used 71,932 106,440 107,820 7,848 10,662Net cash from/(used by) investing activities (71,932) (106,440) (107,820) (7,848) (10,662)FINANCING ACTIVITIES

Contributed equity 116,197 – 106,820 7,848 10,662Total cash received 116,197 – 106,820 7,848 10,662Net cash from/(used by) financing activities 116,197 – 106,820 7,848 10,662Net increase/(decrease) in cash held 386,359 (43,984) 63,394 16,346 28,706

Cash and cash equivalents at the beginning of the reporting period 306,430 692,789 648,805 712,199 728,545

Cash and cash equivalents at the end of the reporting period 692,789 648,805 712,199 728,545 757,251Prepared on Australian Accounting Standards basis.

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Table 3.5: Departmental capital budget statement (for the period ended 30 June)201617 201718 201819 201920 202021



Equity injections - Appropriation Bill No. 2 116,197 – 106,820 7,848 10,662

Total new capital appropriations 116,197 – 106,820 7,848 10,662

Provided for:Purchase of non-financial assets 71,932 – 106,820 7,848 10,662

Total Items 71,932 – 106,820 7,848 10,662

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriationa 71,932 106,440 107,820 7,848 10,662

TOTAL 71,932 106,440 107,820 7,848 10,662RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSETMOVEMENT TABLETotal purchases 71,932 106,440 107,820 7,848 10,662Total cash used to acquire assets

71,932 106,440 107,820 7,848 10,662Prepared on Australian Accounting Standards basis.a Includes both current Appropriation Bill (No. 2) and prior Act 2/4/6 appropriations. Purchases in 201718 will

be funded through the use of prior year unspent equity injections.

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Table 3.6: Statement of asset movements (Budget year 201718)Buildings Other property, Computer Total

plant and software andequipment intangibles

$'000 $'000 $'000 $'000As at 1 July 2017

Gross book value 115,186 2,402 1,888 119,476Accumulated depreciation/ amortisation and impairment (33,041) (2,030) (1,888) (36,959)

Opening net book balance 82,145 372 – 82,517CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase – appropriation equitya 106,440 – – 106,440Total additions 106,440 – – 106,440Other movementsDepreciation/amortisation expense (24,194) (301) – (24,495)Other (6,900) – – (6,900)Total other movements (31,094) (301) – (31,395)

As at 30 June 2018Gross book value 214,726 2,402 1,888 219,016Accumulated depreciation/ amotisation and impairment (57,235) (2,331) (1,888) (61,454)

Closing net book balance 157,491 71 – 157,562Prepared on Australian Accounting Standards basis.a ‘Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2)

201718, including CDABs.

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PORTFOLIO GLOSSARY

accrual accounting System of accounting in which items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

additional estimates Where amounts appropriated at budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

administered funds Usually the funds or expenses an entity manages on behalf of the Government.

administered items Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the entity, and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.

annual appropriation Two appropriation bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

Appropriation An amount of public money Parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

Appropriation Bill (No. 1) The Bill proposes spending from the CRF for the ordinary annual services of Government. Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 1).

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Appropriation Bill (No. 2) This bill proposes spending from the CRF for purposes other than the ordinary annual services of Government. Under existing arrangements between the two Houses of Parliament (the ‘Compact’), this Bill includes appropriation funding of administered expenses for new outcomes, for payments to the states and territories, and for departmental or administered capital. Funding for extensions to existing programs can be included in Appropriation Bill (No. 1). Once the bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 2).

Appropriation Bills (No. 3 and No. 4)

If an amount provided in Appropriation Acts (No.1 or No. 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or No. 4). However, they are also commonly referred to as the Additional Estimates Bills. Once these bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (No. 3 and No. 4).

assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

average staffing level (ASL)

The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the fulltime equivalent.

Consolidated Revenue Fund (CRF)

The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government form one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

cross-portfolio budget measure

A budget measure that affects programs administered in a number of portfolios.

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departmental items Resources (assets, liabilities, revenues and expenses) that entity chief executive officers control directly. This includes outsourced activities funded and controlled by the entity. Examples of departmental items include entity running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.

equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

estimates An entity’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each program in the Budget, in consultation with the Department of Finance. (See also forward estimates and additional estimates.)

expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

forward estimates The financial statement estimate for the three out years after the budget year.

grants Non-reciprocal transfers of economic resources, in which the payer entity does not receive approximately equal value in return.

key performance indicators

Qualitative and quantitative measures of a program that provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.

measure A new policy or savings decision of the Government with financial impacts on the Government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.

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Mid-Year Economic and Fiscal Outlook (MYEFO)

Provides an update of the Government’s budget estimates by examining expenses and revenues year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow assessment of the Government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

outcome The intended result, consequence or impact of government actions on the Australian community.

outcome statement Articulates the intended results, activities and target group of an Australian Government entity. An outcome statement serves three main purposes within the financial framework: to explain and control the purposes for

which annual appropriations are approved by the Parliament for use by entities

to provide a basis for annual budgeting, including (financial) reporting against the use of appropriated funds

to measure and assess entity and program (nonfinancial) performance in contributing to government policy objectives.

performance information

Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them.

portfolio A minister’s area of responsibility as a member of Cabinet. A portfolio consists of one or more Departments of State (portfolio departments) and entities with similar general objectives and outcomes.

program An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

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Public Governance, Performance and Accountability Act 2013(PGPA Act)

The primary piece of Commonwealth resource management legislation, establishing a coherent system of governance and accountability for public resources, with an emphasis on planning, performance and reporting. The Act applies to all Commonwealth entities and Commonwealth companies from 1 July 2014.

receipts The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and government business enterprise dividends received.

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Glossary

revenue Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.

special accounts Balances existing within the CRF that are supported by standing appropriations (PGPA Act sections 78 and 80). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (PGPA Act, section 78) or through an Act of Parliament (referred to in section 80 of the PGPA Act).

special appropriation (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.

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ABBREVIATIONS

AAO Administrative Arrangements OrderABS Australian Bureau of StatisticsAGD Attorney-General’s DepartmentAGRC Australian Gambling Research CentreAHURI Australian Housing and Urban Research

InstituteAIFS Australian Institute of Family StudiesBSWAT Business Services Wage Assessment ToolCDC Cashless Debit CardCOAG Council of Australian GovernmentsCRF Consolidated Revenue FundDCB Departmental Capital BudgetDES Disability Employment ServicesDoH Department of HealthDHS Department of Human ServicesDSP Disability Support PensionDSS Department of Social ServicesDTBNYA Decision Taken But Not Yet AnnouncedDVA Department of Veterans’ AffairsFFR Federal Financial RelationsFTB Family Tax BenefitGST Goods and Services TaxICT Information Communications and TechnologyIM Income ManagementMoU Memorandum of UnderstandingMYEFO Mid-Year Economic and Fiscal OutlookNAATI National Accreditation Authority for Translators

and InterpretersNAHA National Affordable Housing Agreement

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NCCE Non-corporate Commonwealth EntityNDIA National Disability Insurance AgencyNDIS National Disability Insurance SchemeNPAH National Partnership Agreement on

HomelessnessNRAS National Rental Affordability SchemePGPA Act Public Governance, Performance and

Accountability Act 2013

PM&C Department of the Prime Minister and CabinetPPL Paid Parental LeaveRTO Refundable Tax OffsetsSACS Social and Community ServicesSIFS Single Income Family SupplementSSLA Bill Social Services Legislation Amendment Bill

2017TILA Transition to Independent Living AllowanceUN United Nations

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