portfolio additional estimates statements 2015 16 · pdf filei hereby submit portfolio...

Portfolio Additional Estimates Statements 2015–16

Social Services Portfolio

Explanations of Additional Estimates 2015–16

© Commonwealth of Australia 2016

ISBN 978-1-925318-18-0

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The Hon Christian Porter MP

Minister for Social Services

PARLIAMENT HOUSE

CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the

2015–16 Additional Estimates for the Social Services Portfolio.

These statements have been developed, and are submitted to the Parliament, as a

statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability

to the Parliament and, through it, the public.

Yours sincerely


iv

ABBREVIATIONS AND CONVENTIONS

The following notations may be used:

NEC/nec not elsewhere classified

– nil

.. not zero, but rounded to zero

na 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nfp not for publication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.

Enquiries

If you have any enquiries regarding this publication, please contact Scott Dilley,

Chief Finance Officer, in the Department of Social Services on 1300 653 227.

A copy of this document can be found on the Australian Government Budget website

at www.budget.gov.au.

http://www.budget.gov.au/

5

USER GUIDE TO THE

PORTFOLIO ADDITIONAL ESTIMATES

STATEMENTS

vii

USER GUIDE

The purpose of the Portfolio Additional Estimates Statements (PAES), like that of the

Portfolio Budget Statements (PB Statements), is to inform Senators and Members of

Parliament of the proposed allocation of resources to Government outcomes by

agencies within the portfolio. The focus of the PAES differs from the PB Statements in

one important aspect. While the PAES includes an Entity Resource Statement to inform

Parliament of the revised estimate of the total resources available to an entity, the focus

of the PAES is on explaining the changes in resourcing by outcome(s) since the Budget.

As such, the PAES provides information on new measures and their impact on the

financial and/or non-financial planned performance of programmes supporting those

outcomes.

The PAES facilitates understanding of the proposed appropriations in

Appropriation Bills (No. 3 and No. 4) 2015–16. In this sense, the PAES is declared by

the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the

interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook 2015–16 is a mid-year budget report

which provides updated information to allow the assessment of the Government’s

fiscal performance against its fiscal strategy, the PAES update the most recent budget

appropriations for entities within the portfolio.

User guide

viii

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User Guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio Overview

Provides an overview of the portfolio, including a chart that outlines the outcomes for entities

in the portfolio.

Entity Additional Estimates Statements

A statement (under the name of the entity) for each entity affected by

Additional Estimates.

Section 1: Entity

Overview and Resources

This section details the total resources available to an entity, the

impact of any measures since Budget, and impact on

Appropriation Bills Nos. 3 and 4.

Section 2: Revisions to

Outcomes and Planned

Performance

This section details changes to Government outcomes and/or

changes to the planned performance of entity programmes.

Section 3: Explanatory

Tables and Budgeted

Financial Statements

This section contains updated explanatory tables on special

account flows and staffing levels and revisions to the budgeted

financial statements.

Glossary/Abbreviations Explains key terms and acronyms relevant to the portfolio.

ix

CONTENTS

Portfolio overview ......................................................................................................... 1

Social Services portfolio overview................................................................................... 3

Entity Additional Estimates Statements ..................................................................... 7

Department of Social Services ........................................................................................ 9

National Disability Insurance Agency ............................................................................ 97

Glossary ..................................................................................................................... 119

Abbreviations ........................................................................................................... 123

1

PORTFOLIO OVERVIEW

3

SOCIAL SERVICES PORTFOLIO OVERVIEW

This document provides information about the changes within the

Social Services Portfolio since the publication of the 2015–16 Portfolio Budget

Statements.

Ministers and portfolio responsibilities

A new Minister for Social Services was sworn in on 21 September 2015. The minister

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

The Hon Christian Porter MP, Minister for Social Services

The Hon Alan Tudge MP, Assistant Minister for Social Services

Senator the Hon Concetta Fierravanti-Wells, Assistant Minister for Multicultural

Affairs

Overview of additional estimates sought for the portfolio

Additional appropriations of $277.4 million are being sought through Appropriation

Bill (No. 3) 2015–16 and $10.1 million through Appropriation Bill (No. 4) 2015–16 as a

result of new measures and variations. In addition, these statements reflect decreased

estimates of $14,568.6 million for the portfolio’s special appropriations.

Structure of the portfolio

Following changes to the Administrative Arrangement Order (AAO) a number of

functions have transferred from the Department of Social Services (DSS) to other

departments.

The AAO of 21 September 2015 resulted in the transfer of child care policy and

programmes and coordination of early childhood development policy to the

Department of Education and Training.

The AAO of 30 September 2015 resulted in the transfer of aged care policy and

programmes to the Department of Health.

Further details on the transferred functions can be found on page 32 of

these statements.

Portfolio overview

4

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 DSS. For

information on DHS, refer to DHS’ Additional Estimates Statements.

DEPARTMENT OF SOCIAL SERVICES

DSS was formed in September 2013 and is subject to the PGPA Act. DSS has four active

outcomes, with an additional outcome for which functions have transferred to the

Department of Health.

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, programmes and services that are focused on improving the lifetime

wellbeing of people and families in Australia.

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. NDIA will also play a key role in building community awareness

and understanding of disability matters to reduce the barriers to community inclusion

for people with disability, their families and carers. NDIA is a corporate

Commonwealth entity under the PGPA Act.

Portfolio overview

5

Figure 1: Social Services portfolio structure and outcomes

Minister for Social Services


Assistant Minister for Social Services

The Hon Alan Tudge MP

Assistant Minister for Multicultural Affairs

Senator the Hon Concetta Fierravanti-Wells

Department of Social Services

Secretary: Mr Finn Pratt AO PSM

Outcome 1: Social Security

Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.

Outcome 2: Families and Communities1

Stronger families and more resilient communities by developing civil society and by providing family and community services.

Outcome 3: Ageing and Aged Care2

Improved wellbeing for older Australians through targeted support, access to quality care and related information services.

Outcome 4: Housing

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

Outcome 5: Disability and Carers

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

Australian Institute of Family Studies

Director: Ms Anne Hollonds

Outcome 1:

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

National Disability Insurance Agency

Chief Executive Officer: Mr David Bowen

Outcome 1:

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

1 Functions relating to child care and early childhood development have transferred to the Department of Education and Training as a result of the AAO of 21 September 2015. DSS reports the part-year financial impact for which it had responsibility.

2 All ageing and aged care functions have transferred to the Department of Health as a result of the AAO of 30 September 2015. This outcome is temporarily retained to enable DSS to report the part -year financial impact for which it had responsibility.

Portfolio overview

6

Portfolio resources

Table 1 shows for those entities reporting in the PAES the additional resources

provided to the portfolio in the 2015–16 budget year, by entity.

Table 1: Portfolio resources 2015–16

Appropriation Bill No. 3

Appropriation Bill No. 4

Special appropriation

Receipts

Total

($m) ($m) ($m) ($m) ($m)

DSS1

Administered appropriations 95.7 – (14,568.6) – (14,472.9)

Departmental appropriations 6.7 – – – 6.7

Total: 102.4 – (14,568.6) – (14,466.2)

NDIA2

Administered appropriations 108.3 – – – 108.3

Departmental appropriations – – – – –

Total: 108.3 – – – 108.3

DHS3

Administered appropriations – – (..) (0.3) (0.3)

Departmental appropriations 66.7 10.1 – 37.3 114.1

Total: 66.7 10.1 (..) 37.0 113.8

Portfolio total 277.4 10.1 (14,568.6) 37.0 (14,244.1)

Less amounts transferred within portfolio

– – – 4.7 4.7

Resources available within portfolio: (14,239.4) 1 Total resourcing does not include the balance of special accounts carried forward from 2014–15. 2 Funding under Appropriation Act (No. 1) 2015–16 and Appropriation Bill (No. 3) 2015–16 is appropriated to DSS

and then paid to NDIA. All appropriations paid to the NDIA are considered to be departmental for all purposes. Budgetary reporting by the NDIA will in part be reported as departmental and administered to reflect the administered nature of the funds' purpose.

3 DHS is administered separately to DSS. Details of the allocation of resources for DHS can be found in DHS’ 2015–16 Portfolio Additional Estimates Statements.

7

ENTITY ADDITIONAL ESTIMATES

STATEMENTS Department of Social Services .................................................................................... 9

National Disability Insurance Agency ....................................................................... 97

9


ENTITY ADDITIONAL ESTIMATES

STATEMENTS

11


Section 1: Entity overview and resources ................................................................ 13

1.1 Strategic direction statement ................................................................................... 13

1.2 Entity resource statement ....................................................................................... 15

1.3 Entity measures table .............................................................................................. 19

1.4 Additional estimates and variations ........................................................................ 25

1.5 Breakdown of additional estimates by Appropriation Bill ........................................ 31

Section 2: Revision to outcomes and planned performance ................................. 32

2.1 Outcomes and performance information ................................................................. 32

Section 3: Explanatory tables and budgeted financial statements ....................... 81

3.1 Explanatory tables ................................................................................................... 81

3.2 Budgeted financial statements ................................................................................ 83

13


Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

Changes to Administrative Arrangements Orders (AAOs) since the 2015–16 Budget

have resulted in the transfer of responsibility for a number of programmes from the

Department of Social Services (DSS) to other departments.






DSS’ mission is to improve the lifetime wellbeing of people and families in Australia.

The Department achieves this mission through policies and services that:

support people and families to participate economically and socially in Australian

society

enhance the independence, care and wellbeing of people with high needs

foster community cohesion and promote civil society

provide a safety net for people who cannot fully support themselves.

In 2015 the Government focused on supporting families, children and carers with

better targeted support that encourages self-reliance and participation, while helping

those most in need.

This was complemented with opportunities to support increased participation by

young people to find and stay in employment and improving job opportunities for

people with disability.

Department of Social Services Additional Estimates Statements

14

DSS’ outcomes reflect four core areas in which the Department seeks to assist people

and one residual outcome for reporting purposes only:

1. Social Security

2. Families and Communities (now excluding child care)

3. Ageing and Aged Care (residual reporting only)

4. Housing

5. Disability and Carers.

Key changes for 2015–16

Significant changes to Government priorities administered by DSS since the

2015–16 Budget involve:

Implementing several components of the Government’s Women’s Safety Package,

including: working with the states to develop innovative ways of using technology

to keep women safe; and a national communications campaign.

Reforms to Family Tax Benefit to better target assistance to families, including an

increase to fortnightly payments while phasing out end-of-year supplements.

Assistance for the resettlement of an additional 12,000 refugees who are fleeing

conflict in Syria and Iraq.

Revised arrangements for Paid Parental Leave.


15

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for DSS at Additional Estimates.

Table 1.1 outlines the total resourcing available from all sources for the 2015–16 budget

year, including variations through Appropriation Bills (No. 3 and 4), special

appropriations and special accounts.

Table 1.1: Department of Social Services resource statement – Additional Estimates for 2015–16 as at Additional Estimates February 2016

Actual available

appropriation 2014–15

$'000

Estimate as at Budget 2015–16

$'000 +

Proposed Additional

Estimate1, 2

2015–16

$'000 =

Total estimate at Additional

Estimates 2015–16

$'000

Ordinary annual services3

Departmental appropriation

Prior year departmental appropriation4

213,354

214,099

(41,139)

172,960

Departmental appropriation5

649,003

652,558

(137,103)

515,455

s 74 Retained Revenue Receipts6

70,463

43,902

–

43,902

Total

932,820

910,559

(178,242)

732,317

Administered expenses

Outcome 1

14,802

13,564

–

13,564

Outcome 2

827,097

1,011,507

(204,697)

806,810

Outcome 3

2,283,463

2,193,469

(1,517,332)

676,137

Outcome 4

70,558

73,571

(267)

73,304

Outcome 5

1,581,272

1,806,943

(108,443)

1,698,500

Total

4,777,192

5,099,054

(1,830,739)

3,268,315

Non–appropriated revenue

12,278

12,770

–

12,770

Payments to corporate entities7

329,762

473,835

108,271

582,106

Total administered

5,119,232

5,585,659

(1,722,468)

3,863,191

Total ordinary annual services A 6,052,052

6,496,218

(1,900,710)

4,595,508

Other services8

Departmental non-operating

Equity injections

16,373

66,357

(15,504)

50,853

Total

16,373

66,357

(15,504)

50,853

Administered non-operating

Payments to corporate entities – non-operating

23,349

57,756

–

57,756

Total

23,349

57,756

–

57,756

Total other services B 39,722

124,113

(15,504)

108,609

Total available annual appropriations 6,091,774 6,620,331

(1,916,214) 4,704,117


16

Table 1.1: Department of Social Services resource statement – Additional Estimates for 2015–16 as at Additional Estimates February 2016 (continued)

Actual available


$'000


$'000 +

Proposed Additional

Estimate1, 2

2015–16

$'000 =

Total estimate at Additional

Estimates 2015–16

$'000

Special appropriations

Special appropriations limited by criteria/entitlement

Aged Care Act 1997

10,971,775

11,549,325

(8,603,797)

2,945,528

Aged Care (Bond Security) Act 2006

8,574

–

–

–

Social Security (Administration) Act 1999

86,841,783

90,107,132

(1,454,607)

88,652,525

Early Years Quality Fund Special Account Act 2013

165,000

–

–

–

Social and Community Services Pay Equity Special Account Act 2012

204,440

–

–

–

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

24,563,077

27,343,944

(4,472,157)

22,871,787

National Health Act 1953 - s 12

75,017

99,513

(35,890)

63,623

Paid Parental Leave Act 2010

1,944,534

2,066,333

(4,315)

2,062,018

Student Assistance Act 1973

313,914

340,926

2,215

343,141

Business Services Wage Assessment Tool Payment Scheme Act 20159

–

–

nfp

nfp

Total special appropriations C 125,088,114

131,507,173

(14,568,551)

116,938,622

Total appropriations excluding special accounts 131,179,888 138,127,504

(16,484,765) 121,642,739


17


Actual available

appropriation

2014–15 $'000

Estimate as at Budget

2015–16

$'000 +

Proposed Additional

Estimate1, 2

2015–16 $'000

=

Total estimate at Additional Estimates 2015–16

$'000

Special accounts

Opening balance10

133,015

214,653

95,134

309,787

Appropriation receipts11

389,673

266,563

25

266,588

Non-appropriation receipts to special accounts

27,499

1,201

–

1,201

Total special accounts D 550,187

482,417

95,159

577,576

Total resourcing

131,730,075

138,609,921

(16,389,606)

122,220,315

A+B+C+D

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or payments to corporate entities through annual appropriations

(742,784)

(536,591)

(108,296)

(644,887)

Total net resourcing for DSS 130,987,291 138,073,330 (16,497,902) 121,575,428

Note: All figures are GST exclusive. 1 Ministerial responsibility for child care policy and programmes and coordination of early childhood development

policy has been transferred to the Department of Education and Training consistent with the AAO changes of 21 September 2015. Appropriations totaling $348.6m were transferred via a legislative instrument under s 75 of the Public Governance, Performance and Accountability (PGPA) Act 2013 (PGPA Act).

2 Ministerial responsibility for ageing and aged care policy and programmes has been transferred to the Department of Health consistent with the AAO changes of 30 September 2015. Appropriations totaling $1,617.7m were transferred via a legislative instrument under s 75 of the PGPA Act 2013.

3 Appropriation Act (No. 1) 2015–16 and Appropriation Bill (No. 3) 2015–16. 4 Estimated adjusted balance carried forward from previous year for annual appropriations. 5 Includes an amount of $18.8m in 2015–16 for the departmental capital budget (refer to Table 3.2.5 for further

details). For accounting purposes this amount has been designated as ‘contributions by owners’. 6 Estimated retained revenue receipts under s 74 of the PGPA Act 2013. 7 Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the

PGPA Act 2013. 8 Appropriation Act (No. 2) 2015–16 and Appropriation Bill (No. 4) 2015–16. 9 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.

10 Estimated opening balance for special accounts. For further information on special accounts see Table 3.1.2.

11 Appropriation receipts from DSS annual and special appropriations for 2015–16 (see Table 3.1.1).


18


Third-party payments from and on behalf of other entities

Estimate at Budget

2015–16

$'000

Estimate at Additional Estimates 2015–16

$'000

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

Special appropriations – A New Tax System (Family Assistance) (Administration) Act 1999 22,949,829 21,793,988

Special appropriations – Social Security (Administration) Act 1999 90,936,706 90,183,527

Special appropriations – Paid Parental Leave Act 2010 2,063,118 2,059,356

Special appropriations – Student Assistance Act 1973 347,679 350,718

Special appropriations – Aged Care Act 1997 11,547,461 2,945,528

Special appropriations – National Health Act 1956 - Continence Aids Payment Scheme 99,513 63,623

Annual appropriations – Compensation and Debt Relief 198 198

Annual appropriations – Ex-Gratia and Act of Grace Payments 3,769 3,769

Department of social Services has the authority to make the following payments to customers on behalf of the Department of Education and Training:

Special appropriations - A New Tax System (Family Assistance) (Administration) Act 199912 – 204,208

Department of Veterans' Affairs has the authority to make the following payments to customers on behalf of DSS:

Special Appropriations – A New Tax System (Family Assistance) (Administration) Act 1999 1,095 1,139

Special appropriations – Social Security (Administration) Act 1999 51,598 50,615

Payments made to other entities for the provision of services:

Australian Taxation Office 590 590

Department of Veterans' Affairs 194 194

Payments made to corporate entities within the portfolio:

National Disability Insurance Agency13 531,591 639,862

Note: All figures are GST exclusive. 12 Payments made by DSS for Child Care programmes on behalf of the Department of Education and Training. 13 Funding under Appropriation Act (No. 1) 2015–16 and Appropriation Bill (No. 3) 2015–16 is appropriated to DSS

and then paid to NDIA. All appropriations paid to the NDIA are considered to be departmental for all purposes. Budgetary reporting by the NDIA will in part be reported as departmental and administered to reflect the administered nature of the funds' purpose.


19

1.3 ENTITY MEASURES

Table 1.2 summarises new government measures taken since the 2015–16 Budget.

The table is split into revenue, expense and capital measures, with the affected

programme identified.

Table 1.2: Department of Social Services 2015–16 measures since Budget Programme

2015–16 2016–17 2017–18 2018–19

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

Revenue measures

Applying a General Interest Charge to the Debts of Ex-recipients of Social Security and Family Assistance Payments

1.1, 1.3, 1.6, 1.8,

1.9, 1.10, 2.2

Outcome 1

Administered expenses – 26,302 10,574 4,721

Departmental expenses – – – –

Outcome 2

Administered expenses – 86 34 15

Departmental expenses – – – –

Total – 26,388 10,608 4,736

Total revenue measures

Administered – 26,388 10,608 4,736

Total – 26,388 10,608 4,736

Expense measures

Family Payment Reform — a new families package

1.1, 1.3, 1.8,

1.10, 1.11, 1.12

Administered expenses – 122,203 (607,688) 247,406

Departmental expenses (690) 6 – –

Total (690) 122,209 (607,688) 247,406

New Treatment of Fringe Benefits for Family Assistance and Youth Payments purposes

1.1, 1.10, 1.11, 1.12

Administered expenses – (21,957) (38,130) (36,481)

Departmental expenses – 145 57 –

Total – (21,812) (38,073) (36,481)


20

Table 1.2: Department of Social Services 2015–16 measures since Budget (continued)

Programme 2015–16 2016–17 2017–18 2018–19

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

Expense measures (continued)

Maintain the Higher Income Free Threshold for Family Tax Benefit Part A for a Further Two Years 1.1, 1.12

Administered expenses – – (49,421) (69,084)

Departmental expenses – 12 – –

Total – 12 (49,421) (69,084)

Removal of Family Member Exemptions from the Newly Arrived Resident's Waiting Period

1.3, 1.4, 1.9,

1.10, 1.11, 1.12


Departmental expenses 35 82 – –

Total 35 (29,203) (109,283) (82,264)

Age Pension — aligning the pension means testing arrangements with residential aged care arrangements

1.6, 1.7, 1.12


Departmental expenses – 202 75 –

Total – (1,652) (28,943) (36,662)

Enhanced Welfare Payment Integrity — income data matching

1.6, 1.8, 1.9,

1.10, 1.11, 1.12


Departmental expenses – 16 16 16

Total – (629,070) (650,103) (22,243)

Enhanced Welfare Payment Integrity — non-employment income data matching

1.6, 1.8, 1.9,

1.10, 1.11, 1.12



Total – (301,348) (276,464) (217,943)

Addressing Welfare Reliance in Remote Communities 1.8, 1.10

Administered expenses – (27,834) – –

Total – (27,834) – –


21


Programme 2015–16 2016–17 2017–18 2018–19

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

Expense measures (continued)

Green Army — project cap 1.8, 1.10


Total – 7,000 13,866 29,272

Women's Safety Package 2.1

Administered expenses 11,422 22,580 22,589 1,409

Total 11,422 22,580 22,589 1,409

Australian Disability Enterprises — Business Services Wage Assessment Tool — payment scheme

1 5.1

Administered expenses nfp nfp nfp nfp

Departmental expenses nfp nfp nfp nfp

Total nfp nfp nfp nfp


22


Programme 2015–16 2016–17 2017–18 2018–19

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

Cross-outcome

Syrian and Iraqi Humanitarian Crisis

1.1, 1.2, 1.6, 1.8,

1.9, 1.10, 1.11,

2.1, 2.8, 5.1

Outcome 1


Outcome 2


Departmental expenses 2,963 5,084 797 142

Outcome 5

Administered expenses 938 2,185 1,316 401

Total 107,389 188,829 176,559 165,286

Commonwealth Parental Leave Payments — consistent treatment for income support assessment

1.1, 1.8, 1.9,

1.10, 2.8

Outcome 1


Outcome 2

Departmental expenses 28 – – –

Total 28 (31,852) (32,826) (34,095)

Remove the Exemptions for Parents in Employment Nil Rate Periods

1.1, 1.10,

1.11, 2.8

Outcome 1

Administered expenses – – – (40,726)

Outcome 2

Departmental expenses – – 384 –

Total – – 384 (40,726)

Parental Leave Pay — revised arrangements

1.1, 1.12, 2.2

Outcome 1


Departmental expenses – – (1) –

Outcome 2


Total – 9,950 58,575 62,942


23


Programme 2015–16 2016–17 2017–18 2018–19

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

Cross-outcome (continued)

National Disability Insurance Scheme — transition to full Scheme

1.8, 5.1, 5.2, 5.3

Outcome 1


Outcome 5

Administered expenses 8,133 (9,064) (58,207) (121,558)

Departmental expenses 6,905 5,589 5,249 4,736

Total 15,038 (14,511) (91,505) (202,520)

Applying a General Interest Charge to the Debts of Ex-recipients of Social Security and Family Assistance Payments 1.12, 2.8

Outcome 1


Outcome 2


Total – 510 551 253

Enhanced Welfare Payment Integrity — expand debt recovery 1.12, 2.8

Outcome 1

Departmental expenses 169 219 220 221

Outcome 2

Departmental expenses 19 24 24 25

Total 188 243 244 246

Department of Social Services — introduction of a new electronic document management system

1.12, 2.8, 4.3,

5.3

Outcome 1

Departmental expenses (32) (540) (687) (692)

Outcome 2


Outcome 4


Outcome 5


Total (120) (2,158) (2,747) (2,766)


24


Programme 2015–16 2016–17 2017–18 2018–19

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

Cross-outcome (continued)

Funding for Frontline Services2 2.1, 5.1,

5.2

Outcome 2

Administered expenses 7,085 7,290 – –

Outcome 5

Administered expenses 764 775 – –

Total 7,849 8,065 – –

Total expense measures

Administered 131,830 (710,071) (1,619,026) (240,672)

Departmental 9,309 10,029 4,741 2,702

Total 141,139 (700,042) (1,614,285) (237,970)

Prepared on a Government Finance Statistics (fiscal) basis. 1 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. 2 This measure was a Decision Taken But Not Yet Announced in the 2015–16 Budget.


25

1. 4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for DSS at

Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and

variations resulting from new measures since the 2015–16 Budget in Appropriation Bill

(No. 3). Table 1.4 details additional estimates or variations through other factors, such

as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since Budget

Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 1

Increase in estimates (departmental)

New Treatment of Fringe Benefits for Family Assistance and Youth Payments purposes 1.12 – 145 57 –

Maintain the Higher Income Free Threshold for Family Tax Benefit Part A for a Further Two Years 1.12 – 12 – –

Removal of Family Member Exemptions from the Newly Arrived Resident's Waiting Period 1.12 35 82 – –

Age Pension — aligning the pension means testing arrangements with residential aged care arrangements 1.12 – 202 75 –

Enhanced Welfare Payment Integrity — income data matching 1.12 – 298 116 75

Enhanced Welfare Payment Integrity — non-employment income data matching 1.12 – 16 16 16

Applying a General Interest Charge to the Debts of Ex-recipients of Social Security and Family Assistance Payments 1.12 – 459 497 229

Enhanced Welfare Payment Integrity — expand debt recovery 1.12 169 219 220 221

Decrease in estimates (departmental)

Family Payment Reform — a new families package 1.12 (690) 6 – –

Parental Leave Pay — revised arrangements 1.12 – – (1) –

Department of Social Services — introduction of a new electronic document management system 1.12 (32) (540) (687) (692)

Net impact on estimates

for Outcome 1 (departmental) (518) 899 293 (151)


26

Table 1.3: Additional estimates and variations to outcomes from measures since Budget (continued)

Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 2

Increase in estimates (administered)

Women's Safety Package 2.1 11,422 22,580 22,589 1,409

Funding for Frontline Services 2.1 7,085 7,290 – –

Syrian and Iraqi Humanitarian Crisis 2.1 67,788 44,257 11,713 9,938


for Outcome 2 (administered)

86,295 74,127 34,302 11,347


Syrian and Iraqi Humanitarian Crisis 2.8 2,963 5,084 797 142

Commonwealth Parental Leave Payments — consistent treatment for income support assessment 2.8 28 – – –

Remove the Exemptions for Parents in Employment Nil Rate Periods 2.8 – – 384 –

Applying a General Interest Charge to the Debts of Ex-recipients of Social Security and Family Assistance Payments 2.8 – 51 54 24

Enhanced Welfare Payment Integrity — expand debt recovery 2.8 19 24 24 25


Introduction of a new electronic document management system 2.8 (28) (539) (688) (692)


for Outcome 2 (departmental) 2,982 4,620 571 (501)


27

Table 1.3: Additional estimates and variations to outcomes from measures since Budget (continued)

Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 4




for Outcome 4 (departmental)

(32) (540) (686) (692)

Outcome 5


Syrian and Iraqi Humanitarian Crisis 5.1 938 2,185 1,316 401

Funding for Frontline Services1 5.1, 5.2 764 775 – –

Decrease in estimates (administered)

National Disability Insurance Scheme — transition to full Scheme 5.1, 5.2 8,133 (9,064) (58,207) (121,558)


for Outcome 5 (administered)

9,835 (6,104) (56,891) (121,157)


National Disability Insurance Scheme — transition to full Scheme 5.3 6,905 5,589 5,249 4,736




for Outcome 5 (departmental) 6,877 5,050 4,563 4,046 Prepared on a Government Finance Statistics (fiscal) basis. 1 This measure was a Decision Taken But Not Yet Announced in the 2015–16 Budget.


28

Table 1.4: Additional estimates and variations to outcomes from other variations

Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 1


Parameter changes 1.12 – – (97) (192)

Whole of Government Savings 1.12 (247) (247) (320) (337)

Net impact on estimates for Outcome 1 (departmental) (247) (247) (417) (529)

Outcome 2


Movement of funds between years 2.1 915 – – –

Other changes 2.1 796 653 473 486

Programme specific changes 2.1 4,116 723 – –

Self balancing transfers within the same year

2.1 27,256 27,416 25,884 26,246


Parameter changes 2.1 – (539) (1,105) (1,662)

Machinery of Government changes 2.4 (300,401) (560,881) (410,962) (373,783)

Movement of funds between years 2.1 – – (915) –


2.4 (23,674) (25,527) (25,884) (26,246)

Net impact on estimates for Outcome 2 (administered) (290,992) (558,155) (412,509) (374,959)


Movement of funds between years 2.8 393 – – –

Programme specific changes 2.8 825 1,785 – –



Movement of funds between years 2.8 – – (393) –



2.8 (3,582) (1,889) – –

Whole of Government Savings 2.8 – – (169) (204)

Net impact on estimates for Outcome 2 (departmental) (47,268) (69,572) (58,728) (52,299)


29

Table 1.4: Additional estimates and variations to outcomes from other variations (continued)

Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 3


Parameter changes 3.2 – 53 – –

Other changes 3.5 – – 30 59


Machinery of Government changes All (1,507,182) (2,207,135) (2,212,810) (2,307,685)

Parameter changes 3.1, 3.5, 3.6 – (157) (1,941) (3,960)


3.2 (10,150) (10,323) (10,498) (10,676)

Net impact on estimates for Outcome 3 (administered) (1,517,332) (2,217,562) (2,225,219) (2,322,262)





Net impact on estimates for Outcome 3 (departmental) (98,258) (135,257) (129,087) (132,410)

Outcome 4


Other changes 4.2 2,106 5,245 5,403 5,522


Other changes 4.2 (2,227) – – –

Parameter changes All (146) (985) (1,299) (1,310)

Net impact on estimates for Outcome 4 (administered) (267) 4,260 4,104 4,212




Net impact on estimates for Outcome 4 (departmental)

– – (23) (37)


30

Table 1.4: Additional estimates and variations to outcomes from other variations (continued)

Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 5


Movement of funds between years All 5,000 40,336 77,596 7,754

Parameter changes 5.1 – 56 220 393

Programme specific changes 5.1 – 1 451 908


5.1 10,150 10,323 10,498 10,676


Movement of funds between years 5.1 (28,647) – – –

Other changes 5.2 – (9,473) (9,473) (9,973)

Other changes in programme specific parameters

5.1 (101,228) (70,200) (76,262) (55,070)

Parameter changes All – (291) (1,180) (2,061)

Programme specific changes 5.1 (3,553) (12,532) (8,871) (7,921)

Net impact on estimates for Outcome 5 (administered) (118,278) (41,780) (7,021) (55,294)




Net impact on estimates for Outcome 5 (departmental)

– – (123) (205)


31

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION

BILL

The following tables detail the Additional Estimates sought for DSS through

Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015–16

2014–15 Available

$'000

2015–16 Budget

1

$'000

2015–16 Revised

$'000

Additional Estimates

$'000

Reduced Estimates

$'000

Administered items

Outcome 1 - Social Security 14,770 13,564 13,564 – –

Outcome 2 - Families and Communities 756,927 707,772 803,476 95,704 –

Outcome 3 - Ageing and Aged Care 2,061,166 685,606 675,456 – (10,150)

Outcome 4 - Housing 70,558 73,571 73,304 – (267)

Outcome 5 - Disability and Carers 1,580,539 1,806,943 1,698,500 – (108,443)

Total administered 4,483,960 3,287,456 3,264,300 95,704 (118,860)

Departmental programmes

Outcome 1 - Social Security 180,055 128,401 127,636 – (765)

Outcome 2 - Families and Communities 130,425 167,869 168,487 618 –

Outcome 3 - Ageing and Aged Care 93,322 94,767 94,767 – –

Outcome 4 - Housing 3,019 11,657 11,625 – (32)

Outcome 5 - Disability and Carers 172,058 106,063 112,940 6,877 –

Total departmental 578,879 508,757 515,455 7,495 (797)

Total administered and departmental

5,062,839 3,796,213 3,779,755 103,199 (119,657)

1 Section 75 transfers as a result of the AAOs of 21 and 30 September 2015 are reflected in the 2015–16 Budget amount. Please see Table 1.1 footnotes for further details.


32

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

The Department of Social Services’ outcome structure remains unchanged from the

structure reported in the 2015–16 Social Services Portfolio Budget Statements.

However, following Administrative Arrangements Order (AAO) changes a number of

functions have transferred from DSS to other departments. DSS reports the part-year

financial impact for which it had responsibility. The outcome structure will be

amended when DSS is no longer required to report on the affected programmes.






The impacts on the outcome and programme structure are:

Figure 2.1: Changes to DSS outcomes and programmes after 30 September 2015

From Department of Social Services To

Outcome 2

Department of Education and Training Outcome

Programme 2.4 Support for the Child Care System

Programme 1.7 Support for the Child Care System

Programme 2.5 Child Care Benefit Programme 1.8 Child Care Benefit

Programme 2.6 Child Care Rebate Programme 1.9 Child Care Rebate

Programme 2.7 Child Care Subsidy Programme 1.10 Child Care Subsidy

Outcome 3

Department of Health Outcome

Programme 3.1 Access and Information Programme 11.1 Access and Information

Programme 3.2 Home Support Programme 11.2 Home Support

Programme 3.3 Home Care Programme 11.3 Home Care

Programme 3.4 Residential and Flexible Care Programme 11.4 Residential and Flexible Care

Programme 3.5 Workforce and Quality Programme 11.5 Workforce and Quality

Programme 3.6 Ageing and Service Improvement

Programme 11.6 Ageing and Service Improvement

Programme 3.7 Programme Support for Outcome 3

(Departmental resourcing estimates are across programmes)


33

Outcome 1: Social Security

Financial support for individuals and families who are unable to fully support

themselves by providing a sustainable payments and concessions system.

Outcome 1 strategy

An outline of the strategy for achieving Outcome 1 can be found on pages 3942 of the

2015–16 Social Services Portfolio Budget Statements. An outline of the objectives,

deliverables and key performance indicators for Outcome 1 programmes can be found

on pages 4584.

Some aspects of measures published in the 2015–16 Social Services Portfolio Budget

Statements have changed. The impacts are listed below.

Changes to family assistance and youth payments

New measures since the 2015–16 Budget include:

• Maintaining the Family Tax Benefit Part A higher income free area at its current

level for a further two years, until 1 July 2019.

• Exemptions from the Family Tax Benefit Part A income test and the Parental

Income Test for youth payments will be removed for families where a parent is in

an ‘employment nil rate period’, from 1 July 2018.

• Gross rather than adjusted net value of reportable fringe benefits will be assessed

when calculating a family’s adjusted taxable income (ATI) for the family assistance

income test and parental income tests which apply to some youth income support

payments, from 1 January 2017. Fringe benefit income sourced from certain not-for-

profit institutions that are exempt from fringe benefits tax will continue to be

assessed under current arrangements using adjusted net value.

• Increase to the Family Tax Benefit Part A fortnightly rates by $10.08 for each FTB

child in the family up to 19 years of age, subject to the passage of legislation, from

1 July 2018.

• Removal of Family Tax Benefit Part B for couple families (other than grandparents

and great grandparents) with a youngest child aged 13 or over, from 1 July 2016.

• Phase out of Family Tax Benefit end of year supplements, subject to the passage of

legislation.


34

The following measures from the 201415 Budget have been reversed:

• Maintain eligibility thresholds for Australian Government payments.

• New Family Tax Benefit allowance for single parents.

• Limiting Family Tax Benefit Part B to families with children under six years of age.

• Family Payment reform maintain Family Tax Benefit payment rates.

• Revise Family Tax Benefit end of year supplements.

Changes to support for seniors


• Removal of pension income and assets test exemptions that are available to

pensioners in aged care who rent out their former home and pay their aged care

accommodation costs by periodic payments, for pensioners who enter aged care

from 1 January 2017.

Tightening eligibility and encouraging participation for working age people and

students

The following measures are subject to the passage of legislation:

• Discontinuing the Pensioner Education Supplement (PES) and the Education Entry

Payment (EdEP).

The start date for the following measure has changed:

• Legislation has been passed that will cease the Student Start-up Scholarship and

commencing the Student Start-up Loan from 1 January 2016. Grandfathering

arrangements will be in place for students who received a Student Start-up

Scholarship prior to 1 January 2016 and remained continuously in receipt of Youth

Allowance (student), Austudy or ABSTUDY Living Allowance since that time.

Improving debt recovery from ex-recipients of social security and family assistance

payments


• Application of a General Interest Charge (GIC) to the debts of ex-recipients of social

security and family assistance payments, who are unwilling to enter into acceptable

repayment arrangements, from 1 July 2016.


35

Outcome expense statement

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

Table 2.1: Budgeted expenses and resources for Outcome 1 Outcome 1: Social Security 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Programme 1.1: Family Tax Benefit


Special appropriations 20,956,284 20,858,903

Total for Programme 1.1 20,956,284 20,858,903

Programme 1.2: Child Payments


Special appropriations 124,964 128,619

Total for Programme 1.2 124,964 128,619

Programme 1.3: Income Support for Vulnerable People




Programme 1.4: Income Support for People in Special Circumstances


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 640 1,369



Programme 1.5: Supplementary Payments and Support for Income Support Recipients


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 8,844 8,997



Programme 1.6: Income Support for Seniors


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,028 –




36

Table 2.1: Budgeted expenses and resources for Outcome 1 (continued) Outcome 1: Social Security 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Programme 1.7: Allowances and Concessions for Seniors




Programme 1.8: Income Support for People with Disability


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 75 –



Programme 1.9: Income Support for Carers





Programme 1.10: Working Age Payments


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 398



Programme 1.11: Student Payments




Programme 1.12: Programme Support for Outcome 1

Departmental expenses

Departmental appropriation1 138,347 110,761

Expenses not requiring appropriation in the budget year2 12,078 12,125



37

Table 2.1: Budgeted expenses and resources for Outcome 1 (continued) Outcome 1: Social Security 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Outcome 1 Totals by appropriation type:







Total expenses for Outcome 1 107,540,988 109,997,721

2014–15 2015–16

Average staffing level (number) 600 480

Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as government priorities change. 1 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and

‘Retained Revenue Receipts under s 74 of the PGPA Act 2013’. 2 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood

expenses.


38

Objectives for Programme 1.1: Family Tax Benefit

There have been no significant changes to the objectives for programme 1.1 since

publication of the 2015–16 Social Services Portfolio Budget Statements.

Table 2.1.1: Expenses for Family Tax Benefit

2014–15 Actual

$'000

2015–16 Revised budget

$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000

Special Appropriations:

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

Family Tax Benefit Part A 15,175,630 14,473,649 15,186,852 14,633,285 14,736,894

Family Tax Benefit Part B 4,670,184 5,303,715 4,005,462 3,938,967 3,839,381

Schoolkids Bonus1 1,110,470 1,081,539 6 2 1

Total programme expenses 20,956,284 20,858,903 19,192,320 18,572,254 18,576,276 1 Legislation has passed to end the Schoolkids Bonus payments. The Schoolkids Bonus will continue until the end

of 2016. Residual expense beyond this date relates to bad and doubtful debts for general interest charge.

Programme 1.1 deliverables

There have been no significant changes to the deliverables for programme 1.1 since


Programme 1.1 key performance indicators

There have been no significant changes to the key performance indicators for

programme 1.1 since publication of the 2015–16 Social Services Portfolio Budget

Statements.


39

Objectives for Programme 1.2: Child Payments



Table 2.1.2: Expenses for Child Payments

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000



Single Income Family Supplement 52,701 51,585 50,712 49,804 48,918

Stillborn Baby Payment 2,096 1,913 1,983 2,053 2,125


Double Orphan Pension 3,471 3,643 3,932 4,092 4,260

Student Assistance Act 1973

Assistance for Isolated

Children 66,696 71,478 73,675 75,983 78,207

Total programme expenses 124,964 128,619 130,302 131,932 133,510







Statements.


40

Objectives for Programme 1.3: Income Support for Vulnerable People



Table 2.1.3: Expenses for Income Support for Vulnerable People

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000



Special Benefit 64,744 66,858 88,628 129,047 154,453








Statements.


41

Objectives for Programme 1.4: Income Support for People in Special Circumstances



Table 2.1.4: Expenses for Income Support for People in Special Circumstances

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000

Annual administered expenses:

Payments under Special Circumstances 640 1,369 1,366 1,366 1,362



Bereavement Allowance 4,541 4,960 5,410 6,013 6,668








Statements.


42

Objectives for Programme 1.5: Supplementary Payments and Support for Income Support Recipients



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

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Reimbursement to Great Southern Rail for Concessional Fares 8,844 8,997 – – –



Low Income Supplement 1,928 2,500 2,500 – –

Essential Medical Equipment Payment 5,439 6,611 6,772 6,936 7,102

Utilities Allowance1 17,234 27,540 24,070 22,707 21,540

Total programme expenses 33,445 45,648 33,342 29,643 28,642 1 The 2015–16 and out year estimates for Utilities Allowance (Working Age Payments) have been merged with

Programme 1.5 Supplementary Payments and Support for Income Support Recipients.







Statements.


43

Objectives for Programme 1.6: Income Support for Seniors



Table 2.1.6: Expenses for Income Support for Seniors

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Extend Deeming Provisions to account-based Income Streams - awareness Strategy 31 – – – –

Age Pension and Pensioner Concessions Information 997 – – – –



Age Pension 41,367,055 43,206,622 45,525,751 46,972,744 49,615,275

Widow B Pension 6,981 6,556 6,395 6,206 6,037

Wife Pension (Age) 113,328 101,358 97,967 92,690 87,533

Total programme expenses 41,488,392 43,314,536 45,630,113 47,071,640 49,708,845







Statements.


44

Objectives for Programme 1.7: Allowances and Concessions for Seniors



Table 2.1.7: Expenses for Allowances and Concessions for Seniors

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000



Seniors Supplement 284,145 94,426 114,519 130,204 134,129








Statements.


45

Objectives for Programme 1.8: Income Support for People with Disability



Table 2.1.8: Expenses for Income Support for People with Disability

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Disability Support Pension - Communications Campaign 75 – – – –



Disability Support Pension 16,536,887 16,551,774 17,044,121 17,564,553 18,129,835

Mobility Allowance 155,372 159,952 150,564 126,091 82,618








Statements.


46

Objectives for Programme 1.9: Income Support for Carers



Table 2.1.9: Expenses for Income Support for Carers

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Ex-Gratia Payments to Unsuccessful Applicants of Carer Payment (Child) 2,785 2,800 2,800 2,800 2,800



Carer Allowance (Adult) 1,512,990 1,595,905 1,693,517 1,807,738 1,886,584

Carer Allowance (Child) 538,743 571,119 592,906 617,052 629,337

Carer Payment 4,555,473 4,894,414 5,339,390 5,813,848 6,251,879

Carer Supplement 551,699 568,328 591,489 615,343 636,859

Child Disability Assistance Payment 170,989 174,758 178,463 182,143 183,204

Wife Pension (DSP) 107,626 92,040 81,649 70,807 62,329








Statements.


47

Objectives for Programme 1.10: Working Age Payments



Table 2.1.10: Expenses for Working Age Payments

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Compensation and Debt Relief

– 198 198 198 198

Investment Approaches to Welfare - Evaluation

– 200 200 200 200



Newstart Allowance 9,535,789 10,075,024 9,258,618 9,125,737 9,693,185

Parenting Payment Partnered 1,019,572 1,007,902 979,170 953,741 1,015,194

Parenting Payment Single 4,579,566 4,640,836 4,564,130 4,622,727 4,827,967

Partner Allowance Benefit 6,044 5,845 3,011 2,758 1,961

Partner Allowance Pension 76,952 57,649 41,300 33,309 22,350

Pensioner Education Supplement 77,259 38,561 – – –

Sickness Allowance 105,929 111,329 90,321 93,221 119,670

Utilities Allowance (Working Age Payments)

1 9,304 – – – –

Widow Allowance 352,850 307,380 259,934 208,273 171,472

Youth Allowance (Other) 1,087,963 990,286 1,600,645 1,688,059 1,960,323

Total programme expenses 16,851,228 17,235,210 16,797,527 16,728,223 17,812,520 1 The 2015–16 and out year estimates for Utilities Allowance (Working Age Payments) have been merged with

Programme 1.5 Supplementary Payments and Support for Income Support Recipients.







Statements.


48

Objectives for Programme 1.11: Student Payments



Table 2.1.11: Expenses for Student Payments

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Student Assistance Act 1973 ABSTUDY - Secondary 134,719 154,195 151,547 150,650 150,263

ABSTUDY - Tertiary 104,986 119,371 119,211 123,122 131,638


Austudy 650,285 655,333 591,596 601,857 663,535

Youth Allowance (student) 2,559,551 2,584,317 2,295,120 2,357,358 2,615,000








Statements.


49

Objectives for Programme 1.12: Programme Support for Outcome 1



Table 2.1.12: Expenses for Programme Support for Outcome 1

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000

Annual departmental expenses

Programme support 138,347 110,761 110,397 104,895 103,186

Expenses not requiring appropriation in the budget year

1 12,078 12,125 14,455 13,382 10,230


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

expenses.







Statements.


50

Outcome 2: Families and Communities

Stronger families and more resilient communities by developing civil society and by

providing family and community services.

Outcome 2 strategy

An outline of the strategy for achieving Outcome 2 can be found on pages 8587 of the



on pages 90112.



Department of Education and Training. DSS reports the part-year financial impact for

which it had responsibility. Further information can be found in the Department of

Education and Training's 2015–16 Portfolio Additional Estimates Statements.


Women’s Safety Package to provide support for women and children at high risk

of experiencing violence. The Package will improve frontline support and services,

leverage innovative technologies to keep women safe, and provide education

resources to help change community attitudes to violence and abuse.


51



Table 2.2: Budgeted expenses and resources for Outcome 2 Outcome 2: Families and Communities 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Programme 2.1: Families and Communities



Special appropriations (63) 8

Special Accounts 6,335 16,683


Programme 2.2: Paid Parental Leave




Programme 2.3: Social and Community Services




Programme 2.4: Support for the Child Care System





Programme 2.5: Child Care Benefit




Programme 2.6: Child Care Rebate


Special appropriations 1,406,619 910,862

Total for Programme 2.6 1,406,619 910,862

Programme 2.7: Child Care Subsidy

Administered expenses – –

Total for Programme 2.7 – –







52

Table 2.2: Budgeted expenses and resources for Outcome 2 (continued) Outcome 2: Families and Communities 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000










2014–15 2015–16

Average staffing level (number) 1,011 1,153

Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as government priorities change. 1 Functions relating to child care policy and programmes and coordination of early childhood development policy

were transferred to the Department of Education and Training as a result of the AAO changes of 21 September 2015. The budget for 2015–16 represents the part year funding for these programmes which resides with DSS. The remainder of the appropriation for 2015–16 is reported in the Department of Education and Training’s 2015–16 Portfolio Additional Estimates Statements.

2 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and ‘Retained Revenue Receipts under s 74 of the PGPA Act 2013’.

3 Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood expenses.


53

Objectives for Programme 2.1: Families and Communities



The administrative aspects of Income Management under the Financial Wellbeing and

Capability component of programme 2.1 are delivered by the Department of Human

Services (DHS). For more information refer to DHS' Budget Statements in

volume 1.15B of the 2015–16 Social Services Portfolio Budget Statements.

Table 2.2.1: Expenses for Families and Communities

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Civil Society 1,476 1,470 1,489 1,514 1,540

Families and Children 228,154 256,086 255,961 249,684 241,033

Families and Communities Services Improvement 2,624 2,657 2,679 2,695 2,712

Financial Wellbeing and Capability 124,949 107,749 96,458 99,283 100,001

National Initiatives 32,528 40,335 51,271 51,886 31,930

Settlement Services 135,086 221,800 205,449 172,911 193,600

Strengthening Communities 17,920 40,450 30,380 27,558 27,982

Transition to Independent Living Allowance 1,261 3,512 3,512 3,512 3,512



Income Management Balancing Appropriation (63) 8 – – –

Special Account Expenses:

Other Services - Services for Other Entities and Trust Moneys

6,335 16,683 11,995 435 113








Statements.


54

Objectives for Programme 2.2: Paid Parental Leave



Table 2.2.2: Expenses for Paid Parental Leave

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Paid Parental Leave - communication and evaluation – – 249 254 –


Paid Parental Leave Act 2010

Dad and Partner Pay 89,426 98,356 103,013 107,132 110,975

Parental Leave Pay 1,842,265 1,958,206 1,542,955 1,548,456 1,615,687








Statements.


55

Objectives for Programme 2.3: Social and Community Services



Table 2.2.3: Expenses for Social and Community Services

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Social and Community Services Pay Equity Special Account

1

148,158 261,563 319,929 381,773 447,217

Total programme expenses 148,158 261,563 319,929 381,773 447,217 1 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.







Statements.


56

Objectives for Programme 2.4: Support for the Child Care System



Department of Education and Training. This includes responsibility for the activities

under this programme. DSS reports the part-year financial impact for which it had

responsibility. Further information can be found in the Department of Education and

Training's 2015–16 Portfolio Additional Estimates Statements.

Table 2.2.4: Expenses for Support for the Child Care System

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Child Care Services Support 152,618 119,924 – – –

Jobs Education and Training Child Care Fee Assistance (JETCCFA) 6,852 12,622 – – –

Child Care Subsidy Communications Campaign – 205 – – –


Early Years Quality Fund Special Account 69,841 3,342 – – –

Total programme expenses 229,311 136,093 – – –


57

Objectives for Programme 2.5: Child Care Benefit







Table 2.2.5: Expenses for Child Care Benefit

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000



Child Care Benefit 1,722,479 1,051,279 – – –

Total programme expenses 1,722,479 1,051,279 – – –


58

Objectives for Programme 2.6: Child Care Rebate







Table 2.2.6: Expenses for Child Care Rebate

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000



Child Care Benefit 1,406,619 910,862 – – –

Total programme expenses 1,406,619 910,862 – – –


59

Objectives for Programme 2.7: Child Care Subsidy




under this programme. Further information can be found in the Department of

Education and Training's 2015–16 Portfolio Additional Estimates Statements.

Table 2.2.7: Expenses for Child Care Subsidy

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000

Annual expenses:

Child Care Subsidy – – – – –

Total programme expenses – – – – –


60





2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000

Annual departmental expenses



1 20,378 25,875 26,560 22,584 17,531



expenses.







Statements.


61

Outcome 3: Ageing and Aged Care

Improved wellbeing for older Australians through targeted support, access to quality

care and related information services.

Outcome 3 strategy


programmes to the Department of Health. DSS reports the part-year financial impact

for which it had responsibility. Further information can be found in the Department of

Health's 2015–16 Portfolio Additional Estimates Statements.



Table 2.3: Budgeted expenses and resources for Outcome 3 Outcome 3: Ageing and Aged Care 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Programme 3.1: Access and Information




Programme 3.2: Home Support


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,624,274 534,768


Programme 3.3: Home Care


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 403 147

Special appropriations 1,280,750 349,497


Programme 3.4: Residential and Flexible Care





Programme 3.5: Workforce and Quality




Programme 3.6: Ageing and Service Improvement




Special Accounts 245 –



62

Table 2.3: Budgeted expenses and resources for Outcome 3 (continued) Outcome 3: Ageing and Aged Care 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000








Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 2,013,409 676,137


Special Accounts 245 –





2014–15 2015–16

Average staffing level (number) 1,036 475

Note: As a result of the AAO of 30 September 2015, all programmes in this outcome was transferred from DSS to the Department of Health. The budget for 2015–16 represents the part-year funding for which DSS has responsibility. The remainder of the appropriation for 2015–16 is reported in the Department of Health’s 2015–16 Portfolio Additional Estimates Statements. Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as government priorities change. 1 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and


expenses.


63

Objectives for Programme 3.1: Access and Information


programmes to the Department of Health. This includes responsibility for the activities


responsibility. Further information can be found in the Department of Health's

2015–16 Portfolio Additional Estimates Statements.

Table 2.3.1: Expenses for Access and Information

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Access and Information 133,739 42,474 – – –



64

Objectives for Programme 3.2: Home Support






Table 2.3.2: Expenses for Home Support

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Home Support 1,624,274 534,768 – – –

Total programme expenses 1,624,274 534,768 – – –


65

Objectives for Programme 3.3: Home Care






Table 2.3.3: Expenses for Home Care

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Home Care 403 147 – – –


Aged Care Act 1997

Home Care Packages

1 1,280,750 349,497 – – –

Total programme expenses 1,281,153 349,644 – – – 1 As a result of legislative changes to the Aged Care Act 1997 in August 2013, the Community Care Subsidies and

Flexible Care Subsidies special appropriations were replaced by the Home Care Packages special appropriation.


66

Objectives for Programme 3.4: Residential and Flexible Care






Table 2.3.4: Expenses for Residential and Flexible Care

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Residential and Flexible Care 49,826 20,106 – – –

Zero Interest Loans 16,038 11,549 – – –


Aged Care Act 1997

Flexible Care Subsidies 407,938 74,679 – – –

Residential Care Subsidies 9,262,277 2,521,352 – – –

Aged Care (Bond Security) Act 2006

Accommodation Bond Guarantee Scheme 8,574 – – – –

Total programme expenses 9,744,653 2,627,686 – – –


67

Objectives for Programme 3.5: Workforce and Quality






Table 2.3.5: Expenses for Workforce and Quality

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Workforce and Quality 102,910 39,830 – – –



68

Objectives for Programme 3.6: Ageing and Service Improvement






Table 2.3.6: Expenses for Ageing and Service Improvement

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Ageing and Service Improvement 86,219 27,263 – – –


National Health Act 1953 - section 12

Continence Aids Payment Scheme 75,207 63,623 – – –


Other Services - Services for Other Entities and Trust Moneys 245 – – – –



69








2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000

Annual departmental expenses:

Programme support 207,649 63,237 – – –


1 20,877 6,923 – – –

Total programme expenses 228,526 70,160 – –


expenses.


70

Outcome 4: Housing

Increased housing supply, improved community housing and assisting individuals

experiencing homelessness through targeted support and services.

Outcome 4 strategy

An outline of the strategy for achieving Outcome 4 can be found on page 137 of the


deliverables and key performance inidicators for Outcome 4 programmes can be found

on pages 139142.




71

Table 2.4: Budgeted expenses and resources for Outcome 4 Outcome 4: Housing 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Programme 4.1: Housing and Homelessness




Programme 4.2: Affordable Housing









Outcome 4 Totals by appropriation type






Total expenses for Outcome 4 91,718 98,657

2014–15 2015–16


Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as government priorities change. 1 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’

and ‘Retained Revenue Receipts under s 74 of the PGPA Act 2013’. 2 ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation and makegood

expenses.


72

Objectives for Programme 4.1: Housing and Homelessness



Table 2.4.1: Expenses for Housing and Homelessness

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Housing and Homelessness Service Improvement and Sector Support 2,805 1,339 1,359 – –

Total programme expenses 2,805 1,339 1,359 – –







Statements.


73

Objectives for Programme 4.2: Affordable Housing



Table 2.4.2: Expenses for Affordable Housing

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


National Rental Affordability Scheme 64,790 71,965 86,010 88,315 89,063








Statements.


74





2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000




1 2,192 2,502 2,888 2,712 2,005



expenses.







Statements.


75

Outcome 5: Disability and Carers

Improved independence of, and participation by, people with disability, including

improved support for carers, by providing targeted support and services.

Outcome 5 strategy

An outline of the strategy for achieving Outcome 5 can be found on pages 143144 of

the 2015–16 Social Services Portfolio Budget Statements. An outline of the objectives,


on pages 146157.




76

Table 2.5: Budgeted expenses and resources for Outcome 5 Outcome 5: Disability and Carers 2014–15

Actual expenses

$'000

2015–16 Revised

estimated expenses

$'000

Programme 5.1: Disability Mental Health and Carers


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 866,139 1,090,660

Special appropriations1 – nfp

Special Accounts 533 1,675

Total for Programme 5.1 866,672 1,092,335

Programme 5.2: National Disability Insurance Scheme









Outcome 5 Totals by appropriation type


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,407,154 1,698,500

Special appropriations1 – nfp

Special Accounts 533 1,675





2014–15 2015–16


Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as government priorities change. 1 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. 2 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and


expenses.


77

Objectives for Programme 5.1: Disability, Mental Health and Carers



Table 2.5.1: Expenses for Disability, Mental Health and Carers

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Community Mental Health 41,137 62,626 57,377 51,980 52,775

Disability and Carer Support

23,690 125,206 143,460 153,917 163,524

Disability Employment 796,873 864,070 986,544 1,006,445 978,282

Disability Service Improvement and Sector Support

4,439 38,758 78,636 70,448 15,514


Business Services Wage Assessment Tool Payment Scheme Act 2015

1

Business Services Wage Assessment Tool Payment Scheme

– nfp nfp nfp nfp


National Disability Special Account

533 1,675 2,282 2,248 300

Total programme expenses 866,672 1,092,335 1,268,299 1,285,038 1,210,395 1 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.







Statements.


78

Objectives for Programme 5.2: National Disability Insurance Scheme




programmes to the Department of Health. This transfer has changed the linkages of

programme 5.2 to the Department of Health’s programmes, from:

Department of Health Programme 5.1: Disability, Mental Health and Carers

Programme.

to:

Department of Health Programme 3.5: Hearing Services, Programme 5.4: Mental

Health, Programme 11.3: Home Care Programme, Programme 11.6: Continence

Aids Payment Scheme.

Table 2.5.2: Expenses for National Disability Insurance Scheme

2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


National Disability Insurance Scheme Transition 539,511 566,500 520,546 486,528 431,340

National Disability Insurance Scheme 1,504 9,584 8,326 – –

Sector Development Fund – 31,756 45,000 37,462 –



79


The deliverables for programme 5.2 have been amended since publication of the

2015–16 Social Services Portfolio Budget Statements.

To reflect current participant uptake and NDIS phasing, the National Disability

Insurance Scheme qualitative deliverable targets for programme 5.2 have been

amended to:

2014–15

Estimated actual

2015–16 Budget

2016–17 Forward estimate



Number of people provided with support 17,303 37,100 140,300 295,600 455,800

The other deliverables remain unchanged.




Statements.


80





2014–15 Actual

$'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000




1 7,669 11,888 13,309 11,986 9,143



expenses.







Statements.


81

Section 3: Explanatory tables and budgeted financial statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

Special accounts provide a means to set aside and record amounts used for specified

purposes. Table 3.1.1 shows the expected additions (receipts) and reductions

(payments) for each account used by the Department of Social Services (DSS). The

corresponding table in the 2015–16 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances

Outcome Opening balance

2015–16 2014–15

'$000

Receipts 2015–16 2014–15

'$000

Payments 2015–16 2014–15

'$000

Adjustments 2015–16 2014–15

'$000

Closing balance

2015–16 2014–15

'$000

Outcome 2

Public Governance, Performance and Accountability (PGPA) Act 2013 (s 78)

Other Services - Services for Other Entities and Trust Moneys (A)

2.1 18,743 6,201 (16,683) – 8,261

3,602 22,076 (6,935) – 18,743

Social and Community Services Pay Equity Special Account (A) 2.3 175,432 261,588 (261,563) – 175,457

118,598 205,009 (148,175) – 175,432

Early Years Quality Fund Special Account (A)

1 2.4 105,395 – (3,342) (102,053) –

– 189,857 (84,462) – 105,395


82

Table 3.1.1: Estimates of special account flows and balances (continued)

Outcome Opening balance

2015–16 2014–15

'$000

Receipts 2015–16 2014–15

'$000

Payments 2015–16 2014–15

'$000

Adjustments 2015–16 2014–15

'$000

Closing balance

2015–16 2014–15

'$000

Outcome 3


Other Services - Services for Other Entities and Trust Moneys (A)

2

3.1, 3.2, 3.6 3,171 – – (3,171) –

3,186 230 (245) – 3,171

Outcome 5


National Disability Special Account (A) 5.1 7,046 – (1,675) – 5,371

7,629 – (583) – 7,046

Total Special Accounts 2015–16 Budget estimate 309,787 267,789 (283,263) (105,224) 189,089

Total Special Accounts

2014–15 actual 133,015 417,172 (240,400) – 309,787

(A) = Administered 1 This special account was transferred to the Department of Education and Training a result of the AAO changes

of 21 September 2015. The budget for 2015–16 represents the part year funding for this account which resides with DSS. The remainder of the balance for 2015–16 is reported in the Department of Education and Training’s 2015–16 Portfolio Additional Estimates Statements.

2 This special account was transferred to the Department of Health as a result of the AAO changes of 30 September 2015. The budget for 2015–16 represents the part year funding for this account which resides with DSS. The remainder of the balance for 2015–16 is reported in the Department of Health’s 2015–16 Portfolio Additional Estimates Statements.


83

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements

Table 3.2.1 recognises revenue on an accrual basis.

3.2.2 Analysis of budgeted financial statements

Departmental

Income and expenses

DSS is budgeting for a balanced operating result in 2015–16 before allowing for

unfunded depreciation expenses of $59.3 million. Under net cash funding

arrangements, asset replacement is funded through capital appropriations.

Total operating revenue for 2015–16 is estimated at $541.8 million while expenditure is

estimated to be $601.1 million, inclusive of unfunded depreciation. These budgeted

amounts are lower than in 2014–15, primarily due to the Administrative Arrangements

Orders (AAO) of 21 and 30 September 2015 and Australian Government decisions and

measures.

Balance sheet

DSS’ budgeted net asset position for 2015–16 is expected to be $163.7 million.

Administered

Income and expenses

DSS will administer the collection of non-taxation revenue estimated at $37.3 million in

2015–16, lower than 2014–15.

DSS will administer programmes totalling $121,034.1 million in 2015–16, lower than in

2014–15 due to the part year effect of the AAO of 21 and 30 September 2015 and

demographic changes and policy initiatives.

Balance sheet

Total assets administered on behalf of the Australian Government are expected to be

$4,108.7 million, $450.8 million lower than in 2014–15.

Total liabilities administered on behalf of the Australian Government are expected to

be $7,764.0 million, lower than 2014–15, primarily due to decreased personal benefits

provisions and payables.


84

3.2.3 Budgeted financial statements tables

Departmental financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

Actual Revised

budget Forward estimate

Forward estimate

Forward estimate

2014–15 2015–16 2016–17 2017–18 2018–19

$’000 $’000 $’000 $’000 $’000

EXPENSES

Employee benefits 391,431 375,813 290,969 270,073 258,630

Suppliers 252,894 162,031 141,671 122,545 129,323

Depreciation and amortisation 63,194 59,313 57,212 50,664 38,909

Write-down and impairment of assets 14,747 – – – –

Other expenses 3,661 3,958 4,319 4,522 4,520

Total expenses 725,927 601,115 494,171 447,804 431,382

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 55,341 37,337 37,337 37,337 37,337

Other revenue 7,814 6,565 6,565 6,565 6,565

Total own-source revenue 63,155 43,902 43,902 43,902 43,902

Gains

Sale of assets 215 – – – –

Other gains 1,643 1,200 1,200 1,200 1,200

Total gains 1,858 1,200 1,200 1,200 1,200

Total own-source income 65,013 45,102 45,102 45,102 45,102

Net cost of (contribution by) services 660,914 556,013 449,069 402,702 386,280

Revenue from Government 598,490 496,700 391,857 352,038 347,371

Surplus (Deficit) attributable to the Australian Government (62,424) (59,313) (57,212) (50,664) (38,909)


85

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June) (continued)

Actual Revised budget

Forward estimate

Forward estimate

Forward estimate

2014–15 2015–16 2016–17 2017–18 2018–19

$’000 $’000 $’000 $’000 $’000

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation reserves (1,389) – – – –

Total other comprehensive income (1,389) – – – –

Total comprehensive income (loss) attributable to the Australian Government (63,813) (59,313) (57,212) (50,664) (38,909)

Note: Impact of Net Cash Appropriation Arrangements

Surplus attributable to DSS 770 – – – –

Changes in asset revaluation reserves (1,389) – – – –

Total Comprehensive Income (loss) less depreciation/ amortisation expenses previously funded through revenue appropriations

(619) – – – –

plus depreciation/amortisation expenses previously funded through revenue appropriations

1

(63,194) (59,313) (57,212) (50,664) (38,909)

Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income

(63,813) (59,313) (57,212) (50,664) (38,909)

Prepared on an Australian Accounting Standards basis. 1 From 2010–11 the Government introduced net cash appropriation arrangements where Appropriation Act No. 1

or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of Non-Corporate Commonwealth Entities were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


86

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Actual

2014–15 $'000

Revised budget

2015–16 $'000

Forward estimate 2016–17

$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 8,589 8,453 8,453 8,453 8,453

Trade and other receivables 164,371 130,439 101,403 93,270 90,643

Total financial assets 172,960 138,892 109,856 101,723 99,096

Non-financial assets

Leasehold Improvements 31,047 27,347 27,367 24,524 21,783

Property, plant and equipment 24,675 25,235 21,227 17,197 14,042

Intangibles 113,619 117,351 112,219 93,603 77,666

Other 18,610 18,437 18,437 18,437 18,437

Total non-financial assets 187,951 188,370 179,250 153,761 131,928

Assets held for sale 59 – – – –

Total assets 360,970 327,262 289,106 255,484 231,024

LIABILITIES

Payables

Suppliers 34,185 21,871 19,825 17,328 18,296

Other payables 37,936 20,547 20,547 20,547 20,547

Total payables 72,121 42,418 40,372 37,875 38,843

Provisions

Employee provisions 118,876 113,952 86,309 80,306 76,715

Other provisions 6,504 7,157 7,810 8,177 8,173

Total provisions 125,380 121,109 94,119 88,483 84,888

Total liabilities 197,501 163,527 134,491 126,358 123,731

Net assets 163,469 163,735 154,615 129,126 107,293

EQUITY1

Parent entity interest

Contributed equity 295,011 359,966 408,058 433,233 450,309

Reserves 66,095 57,164 57,164 57,164 57,164

Retained surpluses (accumulated deficit) (197,637) (253,395) (310,607) (361,271) (400,180)

Total parent entity interest 163,469 163,735 154,615 129,126 107,293

Total Equity 163,469 163,735 154,615 129,126 107,293

Prepared on an Australian Accounting Standards basis. 1 'Equity' is the residual interest in assets after deduction of liabilities.


87

Table 3.2.3: Departmental statement of changes in equity – summary of movement (budget year 2015–16)

Retained earnings

$’000

Asset revaluation

reserve $’000

Contributed equity/capital

$’000

Total equity $’000

Opening balance as at 1 July 2015

Balance carried forward from previous period (197,637) 66,095 295,011 163,469

Adjusted opening balance (197,637) 66,095 295,011 163,469

Comprehensive income

Surplus (deficit) for the period (59,313) – – (59,313)

Total comprehensive income (59,313) – – (59,313)

of which:

Attributable to the Australian Government (59,313) – – (59,313)

Transactions with owners

Contributions by owners

Equity Injection - Appropriation – – 50,853 50,109

Departmental Capital Budget (DCBs) – – 18,755 19,499

Restructuring 3,555 (8,931) (4,653) (10,029)

Sub-total transactions with owners 3,555 (8,931) 64,955 59,579

Estimated closing balance as at 30 June 2016 (253,395) 57,164 359,966 163,735

Closing balance (253,395) 57,164 359,966 163,735

Prepared on an Australian Accounting Standards basis.


88

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

Actual

2014–15 $'000

Revised budget

2015–16 $'000


$'000


$'000


$'000

OPERATING ACTIVITIES

Cash received

Appropriations 674,899 530,579 411,436 372,311 365,083

Sales of goods and rendering of services 70,495 37,337 37,337 37,337 37,337

Other 26,601 6,351 6,565 6,565 6,565

Total cash received 771,995 574,267 455,338 416,213 408,985

Cash used

Employees 412,202 397,111 301,696 279,245 266,074

Suppliers 277,868 151,174 130,629 114,119 120,060

Other 73,352 26,118 23,013 22,849 22,851

Total cash used 763,422 574,403 455,338 416,213 408,985

Net cash from (used by)

operating activities 8,573 (136) – – –

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 255 – – – –

Total cash received 255 – – – –

Cash used

Purchase of property, plant and equipment 13,667 69,608 48,092 25,175 17,076

Purchase of intangibles 46,455 – – – –

Total cash used 60,122 69,608 48,092 25,175 17,076

Net cash from (used by) investing activities (59,867) (69,608) (48,092) (25,175) (17,076)

FINANCING ACTIVITIES

Cash received


Total cash received 56,660 69,608 48,092 25,175 17,076

Net cash from (used by)

financing activities 56,660 69,608 48,092 25,175 17,076

Net increase (decrease) in cash held 5,366 (136) – – –

Cash and cash equivalents at the beginning of the reporting period 3,223 8,589 8,453 8,453 8,453

Cash and cash equivalents at the end of the reporting period

8,589 8,453 8,453 8,453 8,453



89

Table 3.2.5: Departmental capital budget statement

Actual

2014–15 $'000

Revised budget

2015–16 $'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS

Capital Budget – Act No. 1 (DCB) 19,173 18,755 14,792 16,954 17,076

Equity Injections – Act No. 2 16,373 50,853 33,300 8,221 –

Total new capital appropriations 35,546 69,608 48,092 25,175 17,076

Provided for:

Purchase of non-financial assets 35,546 69,608 48,092 25,175 17,076

Total Items 35,546 69,608 48,092 25,175 17,076

PURCHASE OF

NON-FINANCIAL ASSETS

Funded by capital appropriations

1 16,373 50,853 33,300 8,221 –

Funded by capital appropriations – DCB

2 19,173 18,755 14,792 16,954 17,076

TOTAL AMOUNT SPENT 35,546 69,608 48,092 25,175 17,076

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 35,546 69,608 48,092 25,175 17,076

Total cash used to acquire assets

35,546 69,608 48,092 25,175 17,076

Prepared on an Australian Accounting Standards basis. 1 Includes both current and prior Appropriation Act (No. 2) and Appropriation Bills (No. 4 and 6). 2 Does not include annual finance lease costs. Includes purchase from current and previous years’ Departmental

Capital Budgets (DCBs).


90

Table 3.2.6: Statement of asset movements (2015–16)

Leasehold improvements

$’000

Property, plant &

equipment $’000

Intangibles $’000

Other $’000

Total $’000

As at 1 July 2015

Gross book value 67,772 47,025 223,680 18,610 357,087

Accumulated depreciation/amortisation (36,725) (22,291) (110,061) – (169,077)

Opening net book balance 31,047 24,734 113,619 18,610 188,010

CAPITAL ASSET ADDITIONS

Estimated expenditure on new or replacement assets

By purchase – appropriation equity

1 11,599 8,900 30,354 – 50,853

By purchase – appropriation ordinary annual services

2 3,529 3,173 12,053 – 18,755

Total additions 15,128 12,073 42,407 – 69,608

Other movements

Restructuring (5,085) (1,151) (3,526) (173) (9,935)

Depreciation/amortisation expense (13,743) (10,421) (35,149) – (59,313)

Total other movements (18,828) (11,572) (38,675) (173) (69,248)

As at 30 June 2016

Gross book value 82,900 59,098 266,087 18,610 426,695

Restructuring (5,085) (1,151) (3,526) (173) (9,935)

Accumulated depreciation/amortisation (50,468) (32,712) (145,210) – (228,390)

Closing net book balance 27,347 25,235 117,351 18,437 188,370


1 'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Act (No. 2) and Appropriation Bill (No. 4) 2015–16.

2 'Appropriation ordinary annual services' refers to funding provided through Appropriation Act (No. 1) and Appropriation Bill No. 3 2015–16 for depreciation/amortisation expenses, departmental capital budgets or other operational expenses.


91

Administered financial statements

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

Actual

2014–15 $'000

Revised budget

2015–16 $'000


$'000


$'000


$'000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Grants 3,300,321 2,592,264 3,100,244 5,546,949 8,007,844

Subsidies 11,049,588 3,033,985 86,687 88,976 89,708

Personal benefits 112,441,175 113,915,104 112,008,029 114,028,560 119,541,833

Suppliers 965,652 1,193,585 1,308,202 1,299,752 1,278,061

Write down and impairment of assets 92,130 112,074 551,518 528,867 216,780

Borrowing costs – 15,159 19,898 20,489 22,116

Other expenses 358,362 171,890 175,300 185,856 205,238

Total expenses administered on behalf of Government 128,207,228 121,034,061 117,249,878 121,699,449 129,361,580

LESS:

OWN-SOURCE INCOME

Own-source revenue

Non-taxation revenue

Interest 7,753 8,169 35,162 17,457 11,948

Other revenues 278,553 29,145 27,182 27,335 31,885

Total non-taxation revenue 286,306 37,314 62,344 44,792 43,833

Total own-source revenues administered on behalf of Government 286,306 37,314 62,344 44,792 43,833

Total own-source income administered on behalf of Government 286,306 37,314 62,344 44,792 43,833

Net Cost of services 127,920,922 120,996,747 117,187,534 121,654,657 129,317,747

Surplus (deficit) (127,920,922) (120,996,747) (117,187,534) (121,654,657) (129,317,747)

OTHER COMPREHENSIVE INCOME

Changes in asset

revaluation surplus (42,481) – – – –

Total other comprehensive (loss) / income (42,481) – – – –

Total comprehensive income (loss) (127,963,403) (120,996,747) (117,187,534) (121,654,657) (129,317,747)



92

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

Actual

2014–15 $'000

Revised budget

2015–16 $'000


$'000


$'000


$'000

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assets


Receivables 4,495,893 3,987,296 4,617,821 5,045,432 4,920,121

Investments 52,049 109,805 226,002 327,183 334,884

Total financial assets 4,559,453 4,108,612 4,855,334 5,384,126 5,266,516


Other non-financial assets 44 44 44 44 44

Total non-financial assets 44 44 44 44 44

Total assets administered on behalf of Government 4,559,497 4,108,656 4,855,378 5,384,170 5,266,560

LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

Payables

Suppliers 61,928 11,127 11,127 11,127 11,127

Subsidies 218,800 100,187 168,507 178,862 184,926

Personal benefits payable 3,211,052 2,308,625 1,830,528 2,134,233 2,479,775

Grants 67,277 61,878 51,451 41,686 32,377

Other payables – 50,801 50,801 50,801 50,801

Total payables 3,559,057 2,532,618 2,112,414 2,416,709 2,759,006

Provisions

Personal benefits provision 6,336,314 5,231,409 4,596,273 3,515,610 2,542,601

Total provisions 6,336,314 5,231,409 4,596,273 3,515,610 2,542,601

Total liabilities administered on behalf of Government 9,895,371 7,764,027 6,708,687 5,932,319 5,301,607

Net assets/(liabilities) (5,335,874) (3,655,371) (1,853,309) (548,149) (35,047)



93

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

Actual

2014–15 $'000

Revised budget

2015–16 $'000


$'000


$'000


$'000


Cash received

Interests 6,221 23,867 50,419 32,265 25,096

Net GST received 333,838 342,287 342,287 342,287 342,287

Other 505,152 664,911 1,282,336 1,458,286 1,236,248

Total cash received 845,211 1,031,065 1,675,042 1,832,838 1,603,631

Cash used

Grant payments 3,263,303 2,391,579 2,806,527 5,177,608 7,559,811

Subsidies paid 11,294,413 3,024,068 70,551 85,922 88,492

Personal benefits 113,905,788 116,056,308 115,290,289 116,914,380 121,159,547

Suppliers 1,032,807 1,198,549 1,317,015 1,310,090 1,290,638

Net GST paid – 342,287 342,287 342,287 342,287

Other 640,585 377,974 479,444 564,962 666,010

Total cash used 130,136,896 123,390,765 120,306,113 124,395,249 131,106,785

Net cash from (used by) operating activities (129,291,685) (122,359,700) (118,631,071) (122,562,411) (129,503,154)


Cash received

Repayment of advances and loans 88,254 –

– – –

Total cash received 88,254 – – – –

Cash used

Investments 23,349 103,828 127,245 99,096 5,723

Loans and Advances 73,554 (9,105) 335,925 350,308 381,843

Total cash used 96,903 94,723 463,170 449,404 387,566

Net cash from (used by) investing activities (8,649) (94,723) (463,170) (449,404) (387,566)


Cash used

Net increase or (decrease) in cash held (129,300,334) (122,454,423) (119,094,241) (123,011,815) (129,890,720)

Cash and cash equivalents at beginning of reporting period 51,826 11,511 11,511 11,511 11,511

Cash from Official Public Account for:

- Appropriations 130,193,483 123,191,693 120,510,111 124,568,250 131,219,676

Cash to Official Public Account for:

- Appropriations (933,464) (737,270) (1,415,870) (1,556,435) (1,328,956)

Cash and cash equivalents at end of reporting period 11,511 11,511 11,511 11,511 11,511



94

3.2.4 Notes to the financial statements

Budgeted statements of income and expenditure, assets and liabilities and cash flows

have been included for the financial years 2015–16 to 2018–19. These statements are

prepared in accordance with the requirements of the Australian Government's

financial budget and reporting framework.

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

Reporting Entities

DSS does not have any reporting entities after the transfer of the Social Security

Appeals Tribunal to the Attorney-General’s portfolio from 1 July 2015.

Departmental and Administered Items

Departmental revenues, expenses, assets and liabilities are those which are controlled

by DSS. Departmental expenses include employee and supplier expenses and other

administrative costs which are incurred by DSS in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities which are managed

by DSS on behalf of the Australian Government, according to set government

directions. Administered expenses include subsidies, grants, personal benefit

payments and suppliers.

The distinction between departmental and administered funding enables an

assessment of the administrative efficiency of the department in managing

government programmes.

Asset Valuation

All assets are initially recorded at cost. Property, plant and equipment and other

infrastructure assets are periodically revalued at their fair value.

Commentary – Financial Statements

Intangibles (Departmental)

Intangibles represent the amount of computer software currently recorded by DSS.

Intangible assets are recorded at cost.

Employee provisions (Departmental)

Employee provisions consist of accrued leave entitlements, accrued salary and wages

and superannuation payments that are owed to employees at the end of the financial

year.


95

Receivables (Administered)

Administered receivables represent amounts owing to the Australian Government for

overpayments to benefit recipients. The figure presented in the financial statements is

net of provisions recognised for bad and doubtful debts.

Non-Financial Assets – Other (Administered)

Other non-financial assets item relates to estimated administered prepayments at the

end of the financial year.

Personal benefits payable (Administered)

Personal benefits payable relates to special appropriation amounts recognised as

payables due to the timing of pay days to benefit recipients at the end of the financial

year.

97

NATIONAL DISABILITY

INSURANCE AGENCY

ENTITY ADDITIONAL ESTIMATE

STATEMENTS

99


Section 1: Agency overview and resources ........................................................... 101

1.1 Strategic direction statement ................................................................................. 101

1.2 Entity resource statement ..................................................................................... 102

1.3 Entity measures table ............................................................................................ 103

1.4 Additional estimates and variations ...................................................................... 104

1.5 Breakdown of additional estimates by Appropriation Bill ...................................... 105

Section 2: Revision to outcomes and planned performance ............................... 106

2.1 Outcomes and performance information ............................................................... 106

Section 3: Explanatory tables and budgeted financial statements ..................... 111

3.1 Explanatory tables ................................................................................................. 111

3.2 Budgeted financial statements .............................................................................. 111

101


Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

There have been no significant changes to the strategic direction of the National

Disability Insurance Agency since publication of the 2015-16 Social Services Portfolio

Budget Statements. An outline of the strategy for the Agency can be found on page 229

of the 2015-16 Social Services Portfolio Budget Statements.

The Agency has been provided with additional resources to reflect the Government’s

negotiations with the states and for operational arrangements for the full rollout of the

Scheme. Additional funding has been provided to support the Agency’s revised

service delivery operating model which reviewed many of the Agency’s functions and

operations to have a closer alignment to participant numbers and their requirements.

National Disability Insurance Agency Additional Estimates Statements

102

1.2 ENTITY RESOURCE STATEMENT

The entity resource statement details the resourcing for the Agency at Additional

Estimates. Table 1.1 outlines the total resourcing available from all sources for the

2015–16 Budget year, including variations through Appropriation Bill No. 3.

Table 1.1: National Disability Insurance Agency resource statement – Additional Estimates for 2015–16 as at Additional Estimates February 2016

Actual available


$'000


$'000

Proposed Additional Estimates 2015–16

$'000

Total estimate at Additional Estimates 2015–16

$'000

Opening balance/Reserves at bank – 143,744 – 143,744

REVENUE FROM GOVERNMENT

Ordinary annual services1

Outcome 1 – 473,835 108,271 582,106

Total ordinary annual services – 473,835 108,271 582,106

Other services2

Non-operating – 57,756 – 57,756

Total other services – 57,756 – 57,756

Total annual appropriations – 531,591 108,271 639,862

Total funds from Government – 531,591 108,271 639,862

FUNDS FROM OTHER SOURCES

Contributions from state and territory governments

3

– 304,575 88,163 392,738

Resources received free of charge4 – 300,514 (87,439) 213,075

Interest – – – –

Sale of goods and services – – – –

Other – – – –

Total – 605,089 724 605,813

Total net resourcing for agency – 1,280,424 108,995 1,389,419 All figures are GST exclusive. The National Disability Insurance Agency is not directly appropriated as it is a Corporate Entity. Appropriations are made to the Department of Social Services which are then paid to the National Disability Insurance Agency and are considered 'departmental' for all purposes. 1

Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015–16. 2 Appropriation Act (No. 2) 2015-16 and Appropriation Bill (No. 4) 2015–16. 3 Cash contributions from state and territory governments. 4 Services provided in-kind to participants on behalf of the Australian Government and/or state and territory

governments.


103

1.3 ENTITY MEASURES TABLE

Table 1.2 summarises new government measures taken since the 2015–16 Budget.

The table is split into expense and capital measures, with the affected programme

identified.

Table 1.2: National Disability Insurance Agency 2015–16 measures since Budget

Programme 2015–16 $'000

2016–17 $'000

2017–18 $'000

2018–19 $'000

Expense measures National Disability Insurance Scheme — transition to full Scheme

All

Departmental expenses 108,286 291,318 103,246 (249,786)

Total 108,286 291,318 103,246 (249,786)

Total expense measures

Departmental 108,286 291,318 103,246 (249,786)

Total 108,286 291,318 103,246 (249,786) Prepared on a Government Financial Statistics (fiscal) basis


104

1. 4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Agency at Additional

Estimates, by outcome. Table 1.3 details the additional estimates and variations

resulting from new measures since the 2015–16 Budget in Appropriation Bill (No. 3).

Table 1.4 details Additional Estimates or variations through other factors, such as

parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since Budget Programme

impacted 2015–16

$'000 2016–17

$'000 2017–18

$'000 2018–19

$'000

Outcome 1


National Disability Insurance Scheme — transition to full Scheme

All 108,207 3,657 (223,353) (514,817)

Net impact on estimates for Outcome 1 (departmental) 108,207 3,657 (223,353) (514,817) Note: The above table does not fully reflect all changes to the NDIS resourcing since the 2015-16 Budget. The changes to Scheme resourcing shown are the net impact of Commonwealth cash contributions through Appropriation Bill 3.

Table 1.4: Additional estimates and variations to outcomes from other variations Programme

impacted 2015-16

$'000 2016-17

$'000 2017-18

$'000 2018-19

$'000

Outcome 1


Other variations 1.1 64 50,439 58,777 190,937


Changes in price & wage indices 1.1, 1.2 - (8) (81) (8,606)

Whole of Government savings 1.3 - (42) (207) (245)

Net impact on estimates for Outcome 1 (departmental) 64 50,389 58,504 182,141

Note: The above table does not fully reflect all changes to the NDIS resourcing since the 2015-16 Budget. The changes to Scheme resourcing shown are the net impact of Commonwealth cash contributions through Appropriation Bill 3.


105

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION

BILL

The following table details the Additional Estimates sought for the Agency through

Appropriation Bills No. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015–16

201415

Available $'000

2015–16 Budget

$'000

2015–16 Revised

$'000

Additional Estimates

$'000

Reduced Estimates

$'000

Departmental programmes

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.

– 473,835 582,106 108,271 –

Total departmental – 473,835 582,106 108,271 –

Total administered and departmental – 473,835 582,106 108,271 –


106

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

An outline of the strategy for the Agency can be found on pages 234–235 of the

2015–16 Social Services Portfolio Budget Statements. An outline of the objectives


on pages 234–242.

Amendments have been made to the key performance indicators for programme 1.1

following the signing of bilateral agreements between the Australian Government and

the governments of New South Wales, Victoria, South Australia and Tasmania.


107



Table 2.1: Budgeted expenses and resources for Outcome 1 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.

2014–15 Actual

expenses $'000

2015–16 Revised

estimated expenses

$'000

Programme 1.1: Reasonable and necessary care and support for participants

Revenue from Government


Revenues from other independent sources1 315,378 592,313


Program 1.2: Community inclusion and capacity development grants


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 10,688

Revenues from other independent sources – –

Total for Programme 1.2 – 10,688

Program 1.3: Agency cost



Revenues from other independent sources2 12,659 13,500


Outcome 1 Totals by resource type



Revenues from other independent sources 328,037 605,813

Total expenses for Outcome 1 622,047 1,187,919

2014-15 2015-16

Average Staffing Level (number) 643 1,220 1 Revenues from other independent sources 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.

2 Revenues from other independent sources includes interest from term deposits for 2014–15 and a contribution by the Victorian government in both years related to the establishment of the Agency in Geelong, Victoria.


108

Objectives for Programme 1.1: Reasonable and necessary care and support for participants

There have been no significant changes to the programme objectives since publication

of the Social Services’ 2015–16 Portfolio Budget Statements.

Table 2.1.1: Expenses for Reasonable and necessary care and support for participants 2014–15

Actual $'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Reasonable and necessary care and support for participants 452,215 859,860 4,098,395 9,713,757 16,588,879

Total programme expenses 452,215 859,860 4,098,395 9,713,757 16,588,879



publication of the Social Services’ 2015–16 Portfolio Budget Statements.


Bilateral agreements between the Australian Government and the governments of

New South Wales, Victoria, South Australia and Tasmania have been signed since the

Social Services’ 2015–16 Portfolio Budget Statements. Negotiations with other states

and territories are continuing.

The Australian Government estimates of the roll-out to full scheme have been

amended to reflect these agreements to:

2014–15

Estimated actual

2015–16 Budget




Number of people provided with support 17,303 37,100 140,300 295,600 455,800


109

Objectives for Programme 1.2: Community inclusion and capacity development grants



Table 2.1.2: Expenses for Community inclusion and capacity development grants 2014–15

Actual $'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Community inclusion and capacity development grants – 10,688 31,506 70,980 112,136

Total programme expenses – 10,688 31,506 70,980 112,136






programme 1.2 since publication of the Social Services’ 2015–16 Portfolio Budget

Statements.


110

Objectives for Programme 1.3: Agency costs



Table 2.1.3: Expenses for Agency costs 2014–15

Actual $'000


$'000

2016–17 Forward

year 1 $'000

2017–18 Forward

year 2 $'000

2018–19 Forward

year 3 $'000


Agency cost 169,832 317,371 771,576 1,238,334 1,553,446

Total programme expenses 169,832 317,371 771,576 1,238,334 1,553,446






programme 1.3 since publication of the Social Services’ 2015–16 Portfolio Budget

Statements.


111

Section 3: Explanatory tables and budgeted financial statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

The Agency is not responsible for any special accounts.

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The Agency is budgeting for a break-even operating result in 2015–16 and for the

remainder of the forward estimates. The Agency’s budgeted financial statements have

been adjusted to take into account revised service delivery arrangements, indexation

adjustments and other Government savings measures.

There are no other changes to the Agency’s budgeted financial statements, as reflected

in the Portfolio Budget Statements. Accordingly, the Agency’s revised budgeted

financial statements should be read in conjunction with the Budget Papers and

Portfolio Budget Statements.


112

3.2.2 Budgeted financial statements tables

Departmental financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

2014–15 Actual $'000


$'000


$'000


$'000


$'000

EXPENSES

Employee benefits 72,441 126,151 185,286 257,171 317,305

Suppliers 89,348 176,451 560,195 944,987 1,199,763

Grants 466,221 870,548 4,129,901 9,784,737 16,701,015

Depreciation and amortisation 8,032 14,769 26,095 36,176 36,378 Write-down and impairment of assets 20 – – – –

Total expenses 636,062 1,187,919 4,901,477 11,023,071 18,254,461

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 149,174 392,738 2,088,572 4,686,161 8,454,893

Interest 4,705 – – – –

Other 454 – – – –

Total own-source revenue 154,333 392,738 2,088,572 4,686,161 8,454,893

Gains

Resources received free of charge 173,704 213,075 994,373 2,045,540 2,937,327

Total gains 173,704 213,075 994,373 2,045,540 2,937,327

Total own-source income 328,037 605,813 3,082,945 6,731,701 11,392,220 Net cost of/contribution by) services 308,025 582,106 1,818,532 4,291,370 6,862,241

Other gains 308,434 582,106 1,818,532 4,291,370 6,862,241

Surplus/(Deficit) attributable to the Australian Government 409 – – – –



113

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

2014–15 Actual $'000


$'000


$'000


$'000


$'000

ASSETS

Financial assets


Trade and other receivables 83,933 82,188 82,903 84,076 84,352

Total financial assets 220,415 237,065 296,522 388,531 438,732


Land and buildings 26,463 70,806 159,670 224,389 199,520

Property, plant and equipment 1,456 99 1,337 1,623 (2,185)

Intangibles 3,416 3,416 3,416 3,416 3,416

Other non-financial assets 4,274 4,721 6,412 7,952 8,064

Total non-financial assets 35,609 79,042 170,835 237,380 208,815

Total assets 256,024 316,107 467,357 625,911 647,547

LIABILITIES

Payables

Suppliers 18,517 21,158 30,758 45,704 49,662

Other payables 4,757 8,153 7,169 5,234 4,041

Total payables 23,274 29,311 37,927 50,938 53,703

Provisions

Employee provisions 16,853 16,041 42,478 86,840 98,010

Grants 163,088 160,190 160,190 160,190 160,190

Other provisions 2,642 2,642 2,642 2,642 2,642

Total provisions 182,583 178,873 205,310 249,672 260,842

Total liabilities 205,857 208,184 243,237 300,610 314,545

Net assets 50,167 107,923 224,120 325,301 333,002

EQUITY1

Parent entity interest


Retained surplus/(accumulated deficit) 18,387 18,387 18,387 18,387 18,387

Total parent entity interest 50,167 107,923 224,120 325,301 333,002

Total Equity 50,167 107,923 224,120 325,301 333,002

Prepared on an Australian Accounting Standards basis. 1 Equity is the residual interest in assets after the deduction of liabilities.


114

Table 3.2.3: Departmental statement of changes in equity – summary of movement (budget year 2015–16)

Retained earnings

$'000

Asset revaluation

reserve $'000

Other reserves

$'000

Contributed equity/ capital $'000

Total equity $'000

Opening balance as at 1 July 2015

Balance carried forward from previous period 18,387 – – 31,780 50,167

Adjusted opening balance 18,387 – – 31,780 50,167

Comprehensive income

Surplus/(deficit) for the period – – – – – Total comprehensive income – – – – – Transactions with owners

Contributions by owners

Equity Injection - Appropriation – – – 57,756 57,756

Sub-total transactions with owners – – – 57,756 57,756

Estimated closing balance as at 30 June 2016 18,387 – – 89,536 107,923

Closing balance attributable to the Australian Government 18,387 – – 89,536 107,923 Prepared on an Australian Accounting Standards basis.


115

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2014–15 Actual $'000


$'000


$'000


$'000


$'000


Cash received

Appropriations 309,321 603,211 1,818,532 4,291,370 6,862,241

Sale of goods and rendering of services 119,868 392,738 2,088,572 4,686,161 8,454,893

Interest 4,448 – – – –

Other – 3,396 – – –

Total cash received 433,637 999,345 3,907,104 8,977,531 15,317,134

Cash used

Employees 63,988 126,963 158,849 212,809 306,135

Suppliers 49,858 175,319 552,286 931,581 1,195,917

Net GST paid 318 90 715 1,173 276

Grant payments 283,604 678,578 3,135,528 7,739,197 13,763,688

Other 400 - 984 1,935 1,193

Total cash used 398,168 980,950 3,848,362 8,886,695 15,267,209

Net cash from/(used by) operating activities 35,469 18,395 58,742 90,836 49,925


Cash received

Other 666 – – – –

Total cash received 666 – – – –

Cash used

Purchase of property, plant, equipment and intangibles 17,296 57,756 116,197 101,181 7,701

Total cash used 17,296 57,756 116,197 101,181 7,701

Net cash from/(used by) investing activities (16,630) (57,756) (116,197) (101,181) (7,701)


Cash received

Contributed equity (6,910) 57,756 116,197 101,181 7,701

Other 2,228 – – – –

Total cash received (4,682) 57,756 116,197 101,181 7,701

Cash used

Total cash used – – – – – Net cash used by financing activities (4,682) 57,756 116,197 101,181 7,701

Net increase/(decrease) in cash held 14,157 18,395 58,742 90,836 49,925

Cash and cash equivalents at the beginning of the reporting period 122,325 136,482 154,877 213,619 304,455

Cash and cash equivalents at the end of the reporting period 136,482 154,877 213,619 304,455 354,380



116

Table 3.2.5: Departmental capital budget statement

2014–15 Actual $'000


$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS

Equity injections - Act No. 2 23,349 57,756 116,197 101,181 7,701

Total new capital appropriations 23,349 57,756 116,197 101,181 7,701

Provided for:

Purchase of non-financial assets 23,349 57,756 116,197 101,181 7,701

Total Items 23,349 57,756 116,197 101,181 7,701

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations1 23,349 57,756 116,197 101,181 7,701

TOTAL AMOUNT SPENT 23,349 57,756 116,197 101,181 7,701

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 23,349 57,756 116,197 101,181 7,701

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 23,349 57,756 116,197 101,181 7,701 Prepared on an Australian Accounting Standards basis. 1 Includes both current and prior Appropriation Act (No. 2) and Appropriation Bills (No. 4 and 6) appropriations and

special capital appropriations.


117

Table 3.2.6: Statement of asset movements (2015–16)

Buildings $'000

Other property, plant

and equipment

$'000

Computer software and

intangibles $'000

Total $'000

As at 1 July 2015

Gross book value 37,747 2,299 3,555 43,601

Accumulated depreciation/amortisation and impairment (11,284) (843) (139) (12,266)

Opening net book balance 26,463 1,456 3,416 31,335

Capital asset additions Estimated expenditure on new or replacement assets

By purchase - appropriation equity1 55,125 2,631 – 57,756

Total additions 55,125 2,631 – 57,756

Other movements

Depreciation/amortisation expense (10,782) (3,987) – (14,769)

Total other movements (10,782) (3,987) – (14,769)

As at 30 June 2016

Gross book value 92,872 4,930 3,555 101,357

Accumulated depreciation/amortisation and impairment (22,066) (4,830) (139) (27,035)

Closing net book balance 70,806 100 3,416 74,322 Prepared on an Australian Accounting Standards basis. 1 'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations provided

through Appropriation Act (No. 2) and Appropriation Bill (No. 4) 2015–16, including CDABs.


118

Notes to the financial statements

The budgeted statements of income and expenditure, assets and liabilities and cash

flows have been included for the financial years 2015–16 to 2018–19. 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.

119

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 programme. It may be a measure but will not constitute a programme in its own right.

annual appropriation Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

Appropriation Bills (No. 3 and No. 4)

If an amount provided in Appropriation Acts (No. 1 or No. 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or No. 4). Once these Bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (No. 3 and No. 4). However, they are also commonly referred to as the Additional Estimates Bills.

assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

Glossary

120

average staffing level (ASL) The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Consolidated Revenue Fund

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 programmes administered in a number of portfolios.

departmental items Resources (assets, liabilities, revenues and expenses) that entity accountable authorities 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 programme.

depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.

equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

estimates An entity’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each programme in the Budget, in consultation with the Department of Finance. (See also forward estimates and additional estimates.)

expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

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.

Glossary

121

key performance indicators

Qualitative and quantitative measures of a programme that provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.

measure A new policy or savings decision of the Government with financial impacts on the Government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.

Mid-Year Economic and Fiscal Outlook (MYEFO)

Provides an update of the 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 programme (non-financial) performance in contributing to government policy objectives.

performance information Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them.

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.

programme An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

Glossary

122

Public Governance, Performance and Accountability Act 2013

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.

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.

123

ABBREVIATIONS

AAO Administrative Arrangements Order

AIFS Australian Institute of Family Studies

ATI Adjusted Taxable Income

BSWAT Business Services Wage Assessment Tool

CRF Consolidated Revenue Fund

DCB Departmental Capital Budget

DHS Department of Human Services

DSS Department of Social Services

EdEP Education Entry Payment

FTB Family Tax Benefit

GIC General Interest Charge

MYEFO Mid-Year Economic and Fiscal Outlook

NDIA National Disability Insurance Agency

NDIS National Disability Insurance Scheme

PAES Portfolio Additional Estimates Statements

PES Pensioner Education Supplement

PGPA Act Public Governance, Performance and Accountability

Act 2013

portfolio additional estimates statements 2015 16 · pdf filei hereby submit portfolio...

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