portfolio budget statements 2017-18 - budget related ... · i hereby submit portfolio budget...

Portfolio Budget Statements 201718 Budget Related Paper No. 1.15A

Social Services Portfolio

Budget Initiatives and Explanations of Appropriations Specified by Outcomes

and Programs by Entity

© Commonwealth of Australia 2017

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

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

Department of Social Services material used ‘as supplied’

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

Source: The Australian Government Department of Social Services

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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 Budget Statements in support of the 2017-18 Budget for the Social Services Portfolio.

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

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

Yours sincerely

The Hon Christian Porter MP

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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 not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million $b $ billion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 Should you have any enquiries regarding this publication, please contact Scott Dilley, Chief Finance Officer, Department of Social Services on 1300 653 227.

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

http://www.budget.gov.aua/

USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

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

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2) 2017-18 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2017-18 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

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

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

User Guide

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

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CONTENTS

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

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

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

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

1

PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

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SOCIAL SERVICES PORTFOLIO OVERVIEW This document provides information about the changes within the Social Services Portfolio since the publication of the 2016-17 Portfolio Additional Estimates Statements.

Ministers and portfolio responsibilities

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

• The Hon Christian Porter MP, Minister for Social Services

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

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

Structure of the portfolio

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

The Department of Human Services (DHS) is administered separately to the Department of Social Services (DSS). For information on DHS, refer to DHS’ 2017-18 Portfolio Budget Statements.

DEPARTMENT OF SOCIAL SERVICES

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

Portfolio Overview

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AUSTRALIAN INSTITUTE OF FAMILY STUDIES

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

NATIONAL DISABILITY INSURANCE AGENCY

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

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

Portfolio Overview

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Figure 1: Social Services portfolio structure and outcomes Minister for Social Services The Hon Christian Porter MP

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

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

Department of Social Services Secretary: Mr Finn Pratt AO PSM

Outcome 1: Social Security Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance. Outcome 2: Families and Communities

Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives. Outcome 3: Disability and Carers

Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services. Outcome 4: Housing Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Australian Institute of Family Studies Director: Ms Anne Hollonds

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

National Disability Insurance 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.

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ENTITY RESOURCES AND PLANNED PERFORMANCE

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

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

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

9



ENTITY RESOURCES AND PLANNED

PERFORMANCE

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SECTION 1: ENTITY OVERVIEW AND RESOURCES .............................................................. 13 1.1 Strategic direction statement ................................................................................... 13 1.2 Entity resource statement ....................................................................................... 16 1.3 Budget measures .................................................................................................... 20

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ..................................................... 28 2.1 Budgeted expenses and performance for Outcome 1 ............................................ 29 2.2 Budgeted expenses and performance for Outcome 2 ............................................ 62 2.3 Budgeted expenses and performance for Outcome 3 ............................................ 73 2.4 Budgeted expenses and performance for Outcome 4 ............................................ 83

SECTION 3: BUDGETED FINANCIAL STATEMENTS .............................................................. 91 3.1 Budgeted financial statements ................................................................................ 91 3.2 Budgeted financial statements tables ..................................................................... 94

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Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

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

DSS’ outcomes reflect four core areas in which we seek to assist people:

1. Social security

2. Families and communities

3. Disability and carers

4. Housing.

Key priorities for 2017-18

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

Department of Social Services Budget Statements

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Continuing reform of the welfare system

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

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

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

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

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

Improving disability support

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

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

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

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


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Investing in a Commonwealth Redress Scheme

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

Supporting vulnerable Australians

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

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

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


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1.2 ENTITY RESOURCE STATEMENT

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

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

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

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


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Table 1.1: Department of Social Services resource statement – Budget estimates for 2017-18 as at Budget May 2017 2016-17 2017-18 Estimated Estimate actual $'000 $'000 Departmental Annual appropriations - ordinary annual services

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

Annual appropriations - other services - non-operatinge Equity injections 34,835 40,412

Total departmental annual appropriations 687,411 603,558 Total departmental resourcing 687,411 603,558 Administered Annual appropriations - ordinary annual servicesb

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

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

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

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

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

the PGPA Act.


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Table 1.1: Department of Social Services resource statement – Budget estimates for 2017-18 as at Budget May 2017 (continued) 2016-17 2017-18 Estimated Estimate actual $'000 $'000

Special appropriations Social Security (Administration) Act 1999 89,339,987 89,914,972 A New Tax System (Family Assistance) (Administration) Act 1999 18,671,406 19,251,398 Paid Parental Leave Act 2010 2,168,943 2,234,280 Student Assistance Act 1973 346,769 337,554 Business Services Wage Assessment Tool Payment Scheme Act 2015g nfp nfp

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

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

Total special accounts receipts 561,500 582,188

less administered appropriations drawn from annual/special appropriations and credited to special accounts 325,061 386,870 less payments to corporate entities from annual/special appropriations 1,714,663 1,026,117 Total administered resourcing 113,277,054 117,072,807 Total resourcing for DSS 113,964,465 117,676,365 2016-17 2017-18

Average staffing level (number) 1,984 1,942 g The provision set aside for the Business Services Wage Assessment Tool (BSWAT) Payment Scheme is

not for publication (nfp) so as not to prejudice the Commonwealth in relation to legal claims brought against it.

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


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Table 1.1: Department of Social Services resource statement – Budget estimates for 2017-18 as at Budget May 2017 (continued)

Third-party payments from and on behalf of other entities 2016-17 2017-18 Estimated Estimate actual $'000 $'000

Payments made by the Department of Human Services on behalf of DSS: Special appropriations - Social Security (Administration) Act 1999 90,230,497 91,887,360 Special appropriations - A New Tax System (Family Assistance) (Administration) Act 1999 20,379,176 19,499,677 Special appropriations - Paid Parental Leave Act 2010 2,172,680 2,239,894 Special appropriations - Student Assistance Act 1973 351,054 350,336 Annual administered appropriations 7,660 7,476

Payments made by the Department of Veterans' Affairs on behalf of DSS: Special appropriations - A New Tax System (Family Assistance) (Administration) Act 1999 1,161 1,168 Special appropriations - Social Security (Administration) Act 1999 49,910 47,836

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

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

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


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1.3 BUDGET MEASURES

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

Table 1.2: Department of Social Services 2017-18 Budget measures

Part 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) 2016-17 2017-18 2018-19 2019-20 2020-21

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

Revenue Meaures

National Disability Insurance Scheme - finalisation of transition arrangements

3.1, 3.2

Administered revenues – – – – –

Departmental revenues – – – – –

Total – – – – –

Total Revenue Measures

Administered revenues – – – – –

Departmental revenues – – – – –

Total – – – – –

Expense Measures

Consistent Income Treatment for Families Receiving Family Tax Benefit Part A

1.1

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

Departmental expenses – – – – –

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

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

1.1

Administered expenses – – – – –


Total – – – – –

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

1.1



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


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Part 1: Measures announced since the 2016-17 MYEFO (continued) 2016-17 2017-18 2018-19 2019-20 2020-21

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

Expense Measures (continued)

Family Tax Benefit Part A rate increase - not proceedinga

1.1, 1.3, 1.8, 1.10,

1.11



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

1.1, 1.10, 1.11

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


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

Enhanced Residency Requirements for Pensioners

1.3, 1.6, 1.8, 1.9,

1.10



Total – – (15,148) (43,667) (67,393)

Energy Assistance Payment 1.6, 1.8, 1.10

Administered expenses 245,479 1,962 – – –


Total 245,479 1,962 – – –

Pensioner Concession Card - reinstatement

1.7



Total – – – – –

Aligning the Pensioner Education Supplement and Education Entry Payment

1.8, 1.9, 1.10, 1.11



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


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


Liquid Assets Waiting Period - increasing self-reliance

1.10, 1.11



Total – – (30,871) (40,622) (43,115)

Better Alignment of Student Payments

1.10, 1.11



Total – (25,226) (53,147) (55,348) (57,317)

Social Impact Investing Market - trials

1.10, 1.12

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

Departmental expenses – 1,201 1,740 116 321

Total – 2,195 3,576 2,055 3,229

Better Targeting of the Relocation Scholarship

1.11



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

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


Total – 7,981 9,823 11,046 12,042

Commonwealth contribution to Bourke Street Fundb

2.1



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


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

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

Administered expenses nfp nfp nfp – –

Departmental expenses nfp nfp nfp – –

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

Administered expenses – 8 8 – –

Departmental expenses – 5,177 5,150 – –

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

2.4

Administered expenses – – nfp nfp nfp

Departmental expenses – 5,989 nfp nfp nfp

Total – 5,989 nfp nfp nfp

Public Service Modernisation Fund - transformation and innovation streamc

2.4



Total – – – – –

National Disability Insurance Scheme - finalisation of transition arrangements

3.1, 3.2





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


Improving Disability Employment Services

3.1, 3.3

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

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

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

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


Total (15,500) 3,500 12,000 3,000 –

National Disability Insurance Scheme Quality and Safeguards Commission - establishment

3.2, 3.3

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


Total – 11,575 5,151 5,707 1,696

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

4.1



Total – 1,500 1,500 1,500 1,500

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

4.2



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


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

Cross-Outcome

Unlegislated Budget Repair Measures - not proceedingd

Outcome 1 1.1, 1.3, 1.6, 1.8,

1.9, 1.10, 1.11

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

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

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


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

Better targeting skilled visase

Outcome 1 1.1, 1.3, 1.8, 1.9

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

Departmental expenses – – – – – Outcome 2 2.2

Administered expenses – – – – (94)


Total – – – (998) (9,822)

Better Targeting of Assistance to Support Jobseekersf

Outcome 1 1.1, 1.8, 1.10, 1.12


Departmental expenses – 72 – – – Outcome 3 3.1





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

Cross-Outcome (continued)

Working Age Payments Reforms

Outcome 1

1.1, 1.4, 1.5, 1.6,

1.9, 1.10, 1.12

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

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

Administered expenses – – – 140 360


Total – (416) (1,213) (606) (4,913)

Community Support Programme - establishmentg

Outcome 1 1.10


Departmental expenses – – – – – Outcome 2 2.1

Administered expenses – – 20 21 21


Total – – (1,401) (5,793) (5,956)

Reducing Pressure on Housing Affordability - Social Impact Investments

Outcome 1 1.12


Departmental expenses – 195 475 – – Outcome 4 4.1

Administered expenses – 120 88 88 72


Total – 315 563 88 72

Total Expense Measures

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


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


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

Capital Measures Public Service Modernisation Fund - transformation and innovation streamc

2.4

Administered capital – – – – –

Departmental capital – – – – –

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

3.3


Departmental capital – 12,872 3,509 858 282

Total – 12,872 3,509 858 282

Total Capital Measures


Departmental capital – 12,872 3,509 858 282

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

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

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

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

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

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

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

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


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Section 2: Outcomes and planned performance

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

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

Note:

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

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

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

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

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


29

2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

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

Linked programs

Department of Education and Training

Program • Program 2.4 – Higher Education Loan Program

Contribution to Outcome 1 made by linked program This linked program contains eligibility requirements in connection with some of the payments and concessions that fall under this Outcome.

Department of Employment

Program • Program 1.1 – Employment Services

Contribution to Outcome 1 made by linked program Mutual obligation requirements and compliance frameworks for various payments under this Outcome are stipulated in this linked program.

Department of Health

Program • Program 5.3 – Immunisation

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

Department of Human Services

Programs • Program 1.1 – Services to the Community – Social Security and Welfare • Program 1.3 – Child Support

Contribution to Outcome 1 made by linked programs Various payments, concessions and the Child Support Scheme under this Outcome are delivered through the above linked programs administered by the Department of Human Services.


30

Linked programs (continued)

Department of the Prime Minister and Cabinet

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

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

Department of Veterans’ Affairs

Program • Program 1.1 – Veterans’ Income Support and Allowances

Contribution to Outcome 1 made by linked program Various payments and concessions under this Outcome are delivered through the above linked program administered by the Department of Veterans’ Affairs.


31

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

Outcome 1: Social Security

2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 Program 1.1 - Family Tax Benefit Administered expenses Special appropriations

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

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

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

Program 1.2 - Child Payments Administered expenses Special appropriations

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

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

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

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

Total expenses for Program 1.2 125,050 110,156 102,309 98,061 93,524

Program 1.3 - Income Support for Vulnerable People Administered expenses Special appropriations




Program 1.4 - Income Support for People in Special Circumstances Administered expenses

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

Special appropriations

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




32

Table 2.1.1: Budgeted expenses for Outcome 1 (continued)


2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 Program 1.5 - Supplementary Payments and Support for Income Support Recipients Administered expenses Special appropriations




Program 1.6 - Income Support for Seniors Administered expenses Special appropriations

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



Program 1.7 - Allowances and Concessions for Seniors Administered expenses Special appropriations




Program 1.8 - Income Support for People with Disability Administered expenses Special appropriations




Program 1.9 - Income Support for Carers Administered expenses







33



2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 Program 1.10 - Working Age Payments Administered expenses






Program 1.11 - Student Payments Administered expenses Special appropriations





Program 1.12 - Program Support for Outcome 1 Departmental expenses Departmental appropriation 116,953 123,488 117,277 113,585 111,635

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

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

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



34



2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 Outcome 1 Totals by appropriation type Administered expenses


Special appropriations 108,251,602 109,275,812 113,122,113 117,340,570 121,848,525 Administered Total 108,258,106 109,301,360 113,159,573 117,374,034 121,856,007 Departmental expenses Departmental appropriation 116,953 123,488 117,277 113,585 111,635

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


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

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

Movement of administered funds between yearsc

2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 Outcome 1:

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

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

2016-17 2017-18

Average staffing level (number) 517 484

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

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

in funds.


35

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

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

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

1.1.1 - Component 1 (Family Tax Benefit Part A)



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

1.1.2 - Component 2 (Family Tax Benefit Part B)




1.1.3 - Component 3 (Schoolkids Bonus)


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

Total component 3 expenses 4 2 1 1 1

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

doubtful debts for general interest charges.


36

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



1.2.1 - Component 1 (Single Income Family Supplement)


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

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

1.2.2 - Component 2 (Stillborn Baby Payment)


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


1.2.3 - Component 3 (Double Orphan Pension)




1.2.4 - Component 4 (Assistance for Isolated Children)




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

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


37

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



1.3.1 - Component 1 (Special Benefit)

Special appropriations Social Security (Administration) Act 1999 79,490 118,041 167,363 201,387 237,613


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

Program 1.4 - Income Support for People in Special Circumstances



1.4.1 - Component 1 (Payments under Special Circumstances)

Annual administered expenses

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


1.4.2 - Component 2 (Bereavement Allowance)


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

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

Total Program expenses 5,953 6,357 6,841 5,700 1,376 a This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure:

Working Age Payment Reforms.


38

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



1.5.1 - Component 1 (Low Income Supplement)

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

Total component 1 expenses 2,500 – – – –

1.5.2 - Component 2 (Essential Medical Equipment Payment)



1.5.3 - Component 3 (Utilities Allowance)





39

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



1.6.1 - Component 1 (Age Pension)

Special appropriations Social Security (Administration) Act 1999 44,369,503 45,381,689 47,592,140 49,752,587 52,310,675


1.6.2 - Component 2 (Widow B Pension)

Special appropriations Social Security (Administration) Act 1999a 6,124 5,838 5,657 3,963 –


1.6.3 - Component 3 (Wife Pension (Age))

Special appropriations Social Security (Administration) Act 1999a 92,133 86,313 79,843 53,553 –


Total Program expenses 44,467,760 45,473,840 47,677,640 49,810,103 52,310,675 a This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure:

Working Age Payment Reform.


40

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



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

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


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

Program 1.8 - Income Support for People with Disability



1.8.1 - Component 1 (Disability Support Pension)

Special appropriations Social Security (Administration) Act 1999 16,279,324 16,845,079 17,341,959 18,185,592 19,148,028


1.8.2 - Component 2 (Mobility Allowance)

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


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


41

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



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




1.9.2 - Component 2 (Carer Allowance (Adult))




1.9.3 - Component 3 (Carer Allowance (Child))




1.9.4 - Component 4 (Carer Payment)




1.9.5 - Component 5 (Carer Supplement)





42

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



1.9.6 - Component 6 (Child Disability Assistance Payment)




1.9.7 - Component 7 (Wife Pension (DSP))




Total Program expenses 8,143,355 8,511,620 8,818,147 8,945,652 9,006,601 a This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure:

Working Age Payment Reform.


43

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



1.10.1 - Component 1 (Compensation and Debt Relief)


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

Total component 1 expenses 198 198 198 198 198

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


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

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

1.10.3 - Component 3 (Newstart Allowance)


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

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

1.10.4 - Component 4 (Parenting Payment Partnered)


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

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

1.10.5 - Component 5 (Parenting Payment Single)




a This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure: Working Age Payment Reform.


44

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



1.10.6 - Component 6 (Pensioner Education Supplement)




1.10.7 - Component 7 (Sickness Allowance)




1.10.8 - Component 8 (Widow Allowance)




1.10.9 - Component 9 (Youth Allowance (Other))


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

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

1.10.10 - Component 10 (Seasonal Work Incentives - Evaluation)


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

Total component 10 expenses – – 326 – –

a This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure: Working Age Payment Reform.


45

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



1.10.11 - Component 11 (Partner Allowance)




1.10.12 - Component 12 (JobSeeker Payment)


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

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

1.10.13 - Component 13 (Social Impact Investment)


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

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



46

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



1.11.1 - Component 1 (ABSTUDY - Secondary)




1.11.2 - Component 2 (ABSTUDY - Tertiary)




1.11.3 - Component 3 (Austudy)




1.11.4 - Component 4 (Youth Allowance (student))




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




1.11.6 - Component 6 (Student Start-up Loan)






47

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



1.12.1 - Component 1 (Departmental DSS - Outcome 1)

Annual departmental expenses

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



Total Program expenses 135,896 141,273 135,550 130,408 122,147 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. a Program support combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘s 74 Retained

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

expenses and makegood expenses.


48

Cash projections for Rent Assistancea

Cross-Program: Rent Assistance

2016-17 2017-18 Estimated Budget actual $'000 $'000

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

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

DSS: Social Security (Administration) Act 1999

Age Pension 771,809 810,649

Austudy 47,734 47,711

Bereavement Allowance 94 108

Carer Payment 104,810 113,650

Disability Support Pension 680,924 714,046

Newstart Allowance 560,202 561,128

Parenting Payment (Partnered) 1,342 1,300

Parenting Payment (Single) 32,038 33,918

Partner Allowance 158 138

Sickness Allowance 7,368 8,125

Special Benefit 5,618 8,791

Widow Allowance 11,874 10,017

Widow Pension B 6 6

Wife Pension (Age) 884 835

Wife Pension (DSP) 934 812

Youth Allowance 209,238 204,914

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

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

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

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


49

Table 2.1.3: Performance Criteria for Outcome 1 Table 2.1.3 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2017-18 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance. Program 1.1 – Family Tax Benefit – To make payments to assist low and medium income families with the direct and indirect costs of raising dependent children.

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

Performance information

Year Performance criteria Targets

2016-17 Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments/programs below are made in accordance with relevant legislation, policy and guidelines: • Family Tax Benefit Part A (FTB Part A) • Family Tax Benefit Part B (FTB Part B) • Child Support Scheme

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments/programs below are made in accordance with relevant legislation, policy and guidelines: • Family Tax Benefit Part A (FTB Part A) • Family Tax Benefit Part B (FTB Part B) • Child Support Scheme

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

(Family Tax Benefit)

2018-19 and beyond As per 2017-18 As per 2017-18

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

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

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


50

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Double Orphan Pension • Single Income Family Supplement • Stillborn Baby Payment • Assistance for Isolated Children

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

(Double Orphan Pension) • Administered outlays

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Double Orphan Pension • Single Income Family Supplement • Stillborn Baby Payment • Assistance for Isolated Children

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

(Double Orphan Pension) • Administered outlays






51

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Special Benefit

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Special Benefit







52

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Bereavement Allowance • Payments under Special Circumstances

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Bereavement Allowance • Payments under Special Circumstances







53

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Low Income Supplement • Utilities Allowance • Essential Medical Equipment Payment

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

(Low Income Supplement, Utilities Allowance)

• Number of payments (Essential Medical Equipment Payment)

• Administered outlays

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Low Income Supplement • Utilities Allowance • Essential Medical Equipment Payment

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

(Low Income Supplement, Utilities Allowance)

• Number of payments (Essential Medical Equipment Payment)







54

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




2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Age Pension • Widow B Pension • Wife Pension (Age)


(Age Pension)

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Age Pension • Widow B Pension • Wife Pension (Age)


(Age Pension)






55

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




2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Allowances and Concessions for

Seniors

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Allowances and Concessions for

Seniors







56

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




2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Disability Support Pension • Mobility Allowance


2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Disability Support Pension • Mobility Allowance


(Disability Support Pension)






57

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Carer Payment • Carer Allowance (Adult) and (Child) • Carer Supplement • Child Disability Assistance Payment • Wife Pension (DSP)


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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Carer Payment • Carer Allowance (Adult) and (Child) • Carer Supplement • Child Disability Assistance Payment • Wife Pension (DSP)


(Carer Payment, Carer Allowance)






58

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




2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Newstart Allowance • Youth Allowance (Other) • Sickness Allowance • Parenting Payment • Partner Allowance • Widow Allowance

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Newstart Allowance • Youth Allowance (Other) • Sickness Allowance • Parenting Payment • Partner Allowance • Widow Allowance

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






59

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments and other financial assistance below are made in accordance with relevant legislation, policy and guidelines: • ABSTUDY • Austudy • Youth Allowance (student) • Student Start-up Loans


2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments and other financial assistance below are made in accordance with relevant legislation, policy and guidelines: • ABSTUDY • Austudy • Youth Allowance (student) • Student Start-up Loans


(ABSTUDY, Austudy, Youth Allowance (student))






60

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

Delivery Departmental funding



2016-17 Total departmental funding for Outcome 1 Funding is expended on activities that contribute to agency outcomes

2017-18 As per 2016-17

As per 2016-17






61

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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Rent Assistance

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Rent Assistance

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


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

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



62


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

Linked programs

Attorney-General’s Department

Programs • Program 1.1 – Attorney-General’s Department operating expenses – Civil

justice and legal services • Program 1.4 – Justice Services • Program 1.5 – Family Relationships • Program 1.6 – Indigenous Legal and Native Title Assistance

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


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

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

Department of the Prime Minister and Cabinet

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

Contribution to Outcome 2 made by linked programs These linked programs contribute to this Outcome by supporting Indigenous families and communities to enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians, supporting families to give children a good start in life and by supporting remote strategic investments and remote housing strategies.


63


Department of Immigration and Border Protection

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

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


64


Outcome 2: Families and Communities



Program 2.1 - Families and Communities

Administered expenses

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

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

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

Administered total 731,150 716,419 648,311 628,043 630,548


Program 2.2 - Paid Parental Leave

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

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


Program 2.3 - Social and Community Services

Administered expenses Special Accounts

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

Administered total 346,326 369,511 420,773 477,401 535,512


Program 2.4 - Program Support for Outcome 2

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


Departmental total 267,039 225,200 206,955 191,265 177,250



65


Outcome 2: Families and Communities



Outcome 2 Totals by appropriation type

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

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

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



Total expenses for Outcome 2 3,513,462 3,545,418 3,599,294 3,686,029 3,821,513

Movement of administered funds between yearsc 2016-17 2017-18 2018-19 2019-20 2020-21 Outcome 2:

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

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

2016-17 2017-18


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

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

in funds.


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



2.1.1 - Component 1 (Civil Society)




2.1.2 - Component 2 (Families and Children)




2.1.3 - Component 3 (Families and Communities Services Improvement)




2.1.4 - Component 4 (Financial Wellbeing and Capability)




2.1.5 - Component 5 (National Initiatives)




2.1.6 - Component 6 (Settlement Services)





67

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



2.1.7 - Component 7 (Strengthening Communities)

Annual administered expensesa



2.1.8 - Component 8 (Transition to Independent Living Allowance)




2.1.9 - Component 9 (Income Management Balancing Appropriation)

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

Total component 9 expenses 183 8 8 – –

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

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


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

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


68

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



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


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

Total component 1 expenses 4 8 – – –

2.2.2 - Component 2 (Dad and Partner Pay)


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


2.2.3 - Component 3 (Parental Leave Pay)


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



Program 2.3 - Social and Community Services



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

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


Total Program expenses 346,326 369,511 420,773 477,401 535,512 a 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.


69

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



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








70


Outcome 2 – Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives. Program 2.1 – Families and Communities – To strengthen relationships, support families, improve wellbeing of children and young people, reduce the cost of family breakdown, strengthen family and community functioning and facilitate the settlement of migrants and humanitarian entrants into the community.

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



2016-17 Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS. Agreements and contracts require: • support and capacity building that

contribute to strengthening individual and family functioning and communities; or

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

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

contracted or receiving grant funding

• Number of individuals and families assisted


2017-18 Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS. Agreements and contracts require: • support and capacity building that

contribute to strengthening individual and family functioning and communities; or

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


contracted or receiving grant funding to deliver services

• Number of individuals assisted



71

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


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



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

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



2016-17 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Parental Leave Pay • Dad and Partner Pay

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

2017-18 Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Parental Leave Pay • Dad and Partner Pay

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






72

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

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



2016-17 Delivery complies with relevant legislation The funds appropriated to the Department are issued to meet the Australian Government’s share of the pay increases

Payments made as described

2017-18 Delivery complies with relevant legislation The funds appropriated to the Department are issued to meet the Australian Government’s share of the pay increases

Payments made as described





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





2017-18 As per 2016-17 As per 2016-17






73


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

Linked programs

Department of Employment

Program • Program 1.1 – Employment Services

Contribution to Outcome 3 made by linked program This Outcome benefits from this linked program as it encourages individuals to support themselves through mutual obligation requirements and compliance frameworks.

Department of Health

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

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


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

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


74


National Disability Insurance Agency

Programs • Program 1.1 – Reasonable and necessary care and support participants • Program 1.2 – Community inclusion and capacity development grants

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

The Treasury

Program • Program 1.7 – Assistance to the State for Disability Services

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


75


Outcome 3: Disability and Carers



Program 3.1 - Disability Mental Health and Carers

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

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

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

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

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

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

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

Departmental expenses Departmental appropriation 93,954 103,550 92,522 87,866 84,347 s 74 Retained revenue receiptsc 6,379 4,212 4,376 4,401 4,264

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




76


Outcome 3: Disability and Carers



Outcome 3 Totals by appropriation type

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

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

Departmental appropriation 93,954 103,550 92,522 87,866 84,347 s 74 Retained revenue receiptsc 6,379 4,212 4,376 4,401 4,264

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

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

2016-17 2017-18


Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change.

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

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

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

makegood expenses.


77

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



3.1.1 - Component 1 (Community Mental Health)




3.1.2 - Component 2 (Disability and Carer Support)




3.1.3 - Component 3 (Disability Employment)




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




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


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

Total component 5 expenses nfp nfp nfp nfp nfp

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


78

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



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

Special Account Expenses:

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

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


Program 3.2 - National Disability Insurance Scheme



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



Total component 1 expenses 528,560 472,890 387,524 283,965 267,277 3.2.2 - Component 2 (National Disability Insurance Scheme Research and Evaluation)


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

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


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

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


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

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


79

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



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


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

Total component 5 expenses – 68,871 105,264 119,348 118,603 3.2.6 - Component 6 (Establishment of the NDIS Quality and Safeguards Commission)


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

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

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

Program 3.3 - Program Support for Outcome 3



3.3.1 - Component 1 (Departmental DSS - Outcome 3)

Annual departmental expenses








80


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

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

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


Year Performance criteriaa Targets

2016-17 Delivery by organisations is in accordance with specified requirements which may include service level standards of the contracts and agreements between organisations and DSS. Agreements and contracts require services that contribute to developing capabilities and active participation: • employment assistance and other

services to people with disability • direct advocacy support to people with

disability • support to carers • support through community based

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


contracted or receiving grant funding



2017-18 Delivery by organisations is in accordance with specified requirements which may include service level standards of the contracts and agreements between organisations and DSS. Agreements and contracts require services that contribute to developing capabilities and active participation: • employment assistance and other

services to people with disability • direct advocacy support to people with

disability • support to carers • support through community based

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

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


contracted or receiving grant funding to deliver services




81

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


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


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

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

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



2016-17 Policy, financial and partnership arrangements are in place to create an effective and sustainable NDIS including: • developing and implementing policy

settings for full scheme • implementing funding mechanisms for

transition • negotiating and implementing

agreements with states and territories for transition to full scheme

Timely and effective policy advice (including Quality and Safeguards) is provided for full scheme Appropriate management of the NDIS cash flow Negotiations of bilateral agreements are undertaken Strategic implementation issues are identified and resolved Outputs: • Value of Commonwealth

program funding transitioned to the NDIS

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


82

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

2017-18 Policy, financial and partnership arrangements are in place to create an effective and sustainable NDIS including: • developing and implementing policy

settings for full scheme • implementing funding mechanisms for

NDIS transitions • negotiating agreements with states and

territories for full scheme • establishment of the NDIS Quality and

Safeguards Commission

Timely and effective policy advice (including Quality and Safeguards) is provided for full scheme Appropriate management of the NDIS cash flow Strategic implementation issues are identified and resolved Established NDIS Quality and Safeguards Commission Outputs: • Value of Commonwealth

program funding transitioned to the NDIS

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

2018-19 and beyond As per 2017-18 As per 2017-18 Purpose Improved independence of, and participation by, people with disability, including

improved support for carers, by providing targeted support and services


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

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





2017-18 As per 2016-17 As per 2016-17


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



83


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

Linked programs

The Treasury

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

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


84


Outcome 4: Housing



Program 4.1 - Housing and Homelessness

Administered expenses Ordinary annual services (Appropriation Bill No.1) 1,358 1,620 1,588 1,588 1,572

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


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

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


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


85


Outcome 4: Housing



Outcome 4 Totals by appropriation type Administered expenses


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

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



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

2016-17 2017-18 Average staffing level (number) 96 88 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change. a Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act. b ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation, amortisation



86

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



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





Program 4.2 - Affordable Housing



4.2.1 - Component 1 (National Rental Affordability Scheme)






87

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



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








88


Outcome 4 – Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services. Program 4.1 – Housing and Homelessness – To provide support for affordable housing and homelessness prevention initiatives, including research and innovative early stage projects.

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



2016-17 Development of an evidence base on housing and homelessness

Achieved

2017-18 Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS

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


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

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

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


89

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

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



2016-17 Delivery complies with relevant legislation to ensure that incentives are issued accurately to approved participants who comply with the regulations, so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

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

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

• Participant compliance (%) for the relevant NRAS year

2017-18 Delivery complies with relevant legislation to ensure that incentives are issued accurately to approved participants who comply with the regulations, so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

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

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

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





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





2017-18 As per 2016-17 As per 2016-17





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Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2017-18 Budget year, including the impact of Budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

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

3.1.2 Explanatory notes and analysis of budgeted financial statements Budgeted statements of income and expenditure, assets and liabilities, and cash flows have been included for the financial years 2016-17 to 2020-21. These statements are prepared in accordance with the requirements of the Australian Government's financial budget and reporting framework.

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

Departmental and Administered Items

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

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

Asset Valuation

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


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Commentary – Financial Statements

Intangibles (Departmental)

Intangibles represent computer software at cost.

Employee provisions (Departmental)

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

Receivables (Administered)

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

Non-financial assets – other (Administered)

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

Personal benefits payable (Administered)

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

Departmental

Income and expenses

DSS is budgeting for a balanced operating result in 2017-18 before allowing for unfunded depreciation expenses of $63.5 million. Under net cash funding arrangements, asset replacement is funded through capital appropriations.

Total operating revenue for 2017-18 is estimated at $446.5 million, while expenditure is estimated to be $509.9 million, inclusive of $63.5 million of unfunded depreciation. These budgeted amounts are lower than in 2016-17.

Balance sheet

DSS’ budgeted net asset position for 2017-18 is expected to be $216.8 million, $6.5 million lower than 2016-17.


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Administered

Income and expenses

DSS will administer the collection of non-taxation revenue estimated at $34.4 million in 2017-18, lower than 2016-17 mainly due to general interest charges associated with special appropriations.

DSS will administer programs totalling $118.1 billion in 2017-18, higher than in 2016-17 due to demographic changes and policy initiatives.

Balance sheet

Total assets administered on behalf of the Australian Government are expected to be $5.5 billion, $0.9 billion higher than in 2016-17.

Total liabilities administered on behalf of the Australian Government are expected to be $6.3 billion, higher than 2016-17 primarily due to increased personal benefits payable.


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3.2 BUDGETED FINANCIAL STATEMENTS TABLES

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



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

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

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

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

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

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

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

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


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Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued) Note: Impact of Net Cash Appropriation Arrangements

2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000

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

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

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (64,204) (63,455) (63,655) (57,167) (35,021) Prepared on Australian Accounting Standards basis. a From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Bill

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


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Table 3.2: Budgeted departmental balance sheet (as at 30 June)



ASSETS Financial assets

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

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

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

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

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

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

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

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

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

Total parent entity interest 223,267 216,838 184,042 153,724 135,645 Total Equity 223,267 216,838 184,042 153,724 135,645

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


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Table 3.3: Departmental statement of changes in equity – summary of movement (Budget year 2017-18) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000

Opening balance as at 1 July 2017

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

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

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

of which: Attributable to the Australian Government (63,455) – – (63,455)

Transactions with owners Contributions by owners

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

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

Subtotal transactions with owners – – 57,026 57,026 Estimated closing balance as at 30 June 2018 (380,587) 67,699 529,726 216,838 Closing balance attributable to the Australian Government (380,587) 67,699 529,726 216,838

Prepared on Australian Accounting Standards basis.


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



OPERATING ACTIVITIES Cash received

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

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

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

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

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

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

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

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

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

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



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Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONS

Capital Budget – Appropriation Bill No. 1 (DCB) 53,071 16,614 16,533 16,580 16,660 Equity Injections – Appropriation Bill No. 2 34,835 40,412 14,326 10,269 282

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

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

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

Funded by capital appropriationsa 35,968 48,443 14,326 10,269 282 Funded by capital appropriations – DCBb 53,071 16,614 16,533 16,580 16,660

Funded by lease incentives 28,500 – – – –

TOTAL 117,539 65,057 30,859 26,849 16,942 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 117,539 65,057 30,859 26,849 16,942

Total cash used to acquire assets 117,539 65,057 30,859 26,849 16,942

Prepared on Australian Accounting Standards basis. a Includes both current Appropriation Bill (No. 2) and prior Act 2/4/6 appropriations. b Does not include annual finance lease costs. Includes purchases from current and previous years'

Departmental Capital Budgets (DCBs).


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Table 3.6: Statement of asset movements (Budget year 2017-18) Leasehold Property, Intangibles Other Total improvements plant & equipment $'000 $'000 $'000 $'000 $'000

As at 1 July 2017 Gross book value 57,361 42,574 343,723 23,369 467,027 Accumulated depreciation/ amortisation and impairment (12,597) (10,675) (181,600) – (204,872)

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

Estimated expenditure on new or replacement assets By purchase – appropriation equitya 6,051 2,431 39,961 – 48,443 By purchase – appropriation ordinary annual servicesb 3,420 4,535 8,659 – 16,614 Total additions 9,471 6,966 48,620 – 65,057 Other movements Depreciation/amortisation expense (2,918) (9,865) (50,672) – (63,455) Total other movements (2,918) (9,865) (50,672) – (63,455)

As at 30 June 2018 Gross book value 66,832 49,540 392,343 23,369 532,084 Accumulated depreciation/ amortisation and impairment (15,515) (20,540) (232,272) – (268,327)

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

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

2017-18 for depreciation/amortisation expenses, departmental capital budgets or other operational expenses.


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Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000

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

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

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

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

Other sources of non-taxation revenues 18,397 14,695 23,121 30,521 43,074

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

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

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

Total comprehensive income/(loss) (114,769,148) (118,033,888) (124,926,278) (131,746,295) (137,111,973)



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




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

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

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

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

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

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

Total liabilities administered on behalf of Government 6,078,131 6,312,113 6,569,480 6,524,145 6,444,256 Net assets/(liabilities) (1,468,466) (812,352) (723,187) (692,945) (669,087)

Prepared on Australian Accounting Standards basis. a Includes special account balances.


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



OPERATING ACTIVITIES

Cash received

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

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

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

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

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

Cash used

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

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

Net cash from/(used by) investing activities (202,200) (319,035) (468,137) (387,123) (406,103)

Net increase/(decrease) in cash held (116,826,609) (118,734,416) (124,777,162) (131,785,503) (137,136,835)

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

Cash from Official Public Account for:

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

Cash to Official Public Account for:

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

Cash and cash equivalents at end of reporting period 199,904 195,673 221,537 253,890 294,847


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SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................................ 109 1.1 Strategic direction statement ................................................................................. 109 1.2 Entity resource statement ..................................................................................... 112

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................................... 114 2.1 Budgeted expenses and performance for Outcome 1 .......................................... 115

SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................................ 121 3.1 Budgeted financial statements .............................................................................. 121 3.2 Budgeted financial statements tables ................................................................... 122

Australian Institute of Family Studies Budget Statements

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

• Undertaking high-quality impartial research related to the wellbeing of families in Australia

• Disseminating findings through multiple channels to identified target audiences

• Valuing and deepening our relationships

• Building and maintaining a successful organisation that ensures high standards of performance, underpinned by ethical behaviour, sound risk and resource management, effective governance, and rigorous accountability procedures, as expected of an Australian Government agency.

AIFS undertakes a range of research activities and ensures the quality of its work through:

• Rigorous ethical standards and oversight by an ethics committee

• Benchmarking against international standards

• Subjecting research design, methodology and results to peer review.

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


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As outlined in AIFS Agency Plan 2016–2020, the Institute’s research activities will focus on three key domains:

1. Family relationships, wellbeing and change

2. Social and economic participation

3. Child and family wellbeing.

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

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

Key activities in 2017-18

The Institute’s priorities, guided by the AIFS Agency Plan 2016 – 2020, will include a number of significant activities:

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

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

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

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


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

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


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


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

Table 1.1: Australian Institute of Family Studies resource statement – Budget estimates for 2017-18 as at Budget May 2017 2016-17 2017-18 Estimated Estimate actual $'000 $'000

Departmental Annual appropriations - ordinary annual servicesa

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

Annual appropriations - other services - non-operatinge Equity injection – 907

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

2016-17 2017-18

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

a Appropriation Bill (No. 1) 2017-18.

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

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

e Appropriation Bill (No. 2) 2017-18.


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1.3 BUDGET MEASURES

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

Table 1.2: Australian Institute of Family Studies 2017-18 budget measures Part 1: Measures announced since the 2016-17 MYEFO 2016-17 2017-18 2018-19 2019-20 2020-21 Program $'000 $'000 $'000 $'000 $'000

Expense measures

Public Service Modernisation Fund - agency sustainability streama

1.1


Total – – – – –

Total Expense Measures


Total – – – – –

Capital measures

Public Service Modernisation Fund - agency sustainability streama

1.1


Total – – – – –

Total Capital Measures


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

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


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Note:


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

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


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




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


Expenses not requiring appropriation in the budget yearb

341 534 332 370 403

Departmental total 12,443 12,725 12,833 12,772 13,425 Total expenses for Program 1.1 12,443 12,725 12,833 12,772 13,425 Outcome 1 Totals by appropriation type Departmental expenses


Expenses not requiring appropriation in the budget yearb

341 534 332 370 403

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

12,443 12,725 12,833 12,772 13,425 2016-17 2017-18

Average Staffing Level ( b )

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



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Table 2.1.2: Performance criteria for Outcome 1 Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2017-18 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Increased understanding of factors affecting how families function by conducting research and communicating findings to policy-makers, service providers and the broader community. Program 1.1 – To increase understanding of factors affecting how Australian families function by conducting research and communicating findings to policy-makers, service providers and the broader community, AIFS will manage its resources to: • undertake high-quality, impartial research relating to the wellbeing of families in Australia; • disseminate findings through multiple channels to identified target audiences; • value and develop relationships with organisations that have a stake in research, policy and practice

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

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

Delivery Research outputs, including research projects involving a range of data collection and analytical methods (including qualitative, quantitative and mixed methods), as well as undertaking longitudinal studies and analyses of major datasets such as the ABS census, data linkage and completing literature reviews and submissions to government inquiries.

The Institute will focus its work across four strategic areas: Create knowledge about families and communities Communicate knowledge about families and communities Connect research, policy and practice Activate organisational capability Communication activities, include: • information exchange activities; • publications such as the Family Matters journal, research reports and

papers, as well as articles in journals and books published elsewhere; • conferences, seminars, webinars, forums, etc. hosted by AIFS; • websites and electronic publishing; • presentations by AIFS’ staff at conferences and forums related to the

wellbeing of families in Australia; • Government submissions; and • bibliographic and other library services.


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


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

20

The number of research projects at the Institute

45

The number of longitudinal studies at the Institute

5

The number of publications disseminated or downloaded from the AIFS website

3 million

The total number of media mentions 3,500

The number of publications released by AIFS 100

The number of presentations given by the Institute’s staff

100

The number of bibliographic records generated at the Institute

2,000

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

2,500

The number of government submissions 12

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

18

The number of partnerships, MOUs and collaborations in place

8

The percentage of research staff with postgraduate qualifications

60 per cent

The reduction in operational costs 5 per cent

The percentage of clients satisfied with AIFS’ services

80 per cent

The percentage of stakeholders satisfied with AIFS’ services

80 per cent

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


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


20


45


5


3.2 million




100


2,200


3,000


10


18



60 per cent



85 per cent


85 per cent



119



22


47


5


3.2 million




120


2,300


3,200


12


20



65 per cent



85 per cent


85 per cent



120


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

22


47


5


3.4 million




120


2,400


3,500


12


22



70 per cent

The reduction in operational costs Steady


90 per cent


90 per cent

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




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Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2017-18 Budget year, including the impact of Budget measures and resourcing on financial statements.


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

3.1.2 Explanatory notes and analysis of budgeted financial statements Departmental

Income and Expenses

AIFS is budgeting for a break-even position in 2017-18 and the forward years after adjusting for depreciation and amortisation expenses.

Total own-sourced revenue for 2017-18 is expected to be $7.5 million and revenue from government is expected to be $4.7 million.

Balance Sheet

AIFS has a budgeted net asset position of $2.0 million in 2017-18.

Total Assets for 2017-18 are estimated to be $7.6 million, comprising $6.0 million of financial assets and $1.6 million in non-financial assets.

Total Liabilities for 2017-18 are estimated to be $5.6 million, with the primary liabilities being accrued employee entitlements, which total $2.2 million, supplier payables $0.2 million and unearned revenue $3.2 million.


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Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000

EXPENSES Employee benefits 8,137 9,299 9,389 9,578 9,768 Suppliers 3,965 2,892 3,112 2,824 3,254 Depreciation and amortisation 341 534 332 370 403

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

Sale of goods and rendering of services

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

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

Gains Other gains 32 32 32 32 32

Total gains 32 32 32 32 32 Total own-source income 7,644 7,508 8,093 7,950 8,549

Net cost of/(contribution by) services 4,799 5,217 4,740 4,822 4,876

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

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

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

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (341) (534) (332) (370) (403)

Prepared on Australian Accounting Standards basis. a From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Bill

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


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Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000


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


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

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

LIABILITIES Payables

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


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

EQUITYa Parent entity interest

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


Prepared on Australian Accounting Standards basis. a ‘Equity’ is the residual interest in assets after deduction of liabilities.


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Table 3.3: Departmental statement of changes in equity – summary of movement (Budget year 2017-18) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000

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

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

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

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


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

Sub-total transactions with owners – – 1,097 1,097 Estimated closing balance as at 30 June 2018 (2,363) 393 3,995 2,025 Closing balance attributable to the Australian Government (2,363) 393 3,995 2,025



125

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000


Appropriations 3,284 4,756 4,378 4,307 4,468 Sale of goods and rendering of services 7,863 7,311 7,824 7,753 8,278 Other 210 223 211 212 213

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

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

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

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

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

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

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

Cash and cash equivalents at the end of the reporting period 182 327 318 286 301



126

Table 3.5: Departmental capital budget statement (for the period 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000


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

Total new capital i ti

183 1,097 189 189 190 Provided for:

Purchase of non-financial t

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

PURCHASE OF NON-FINANCIAL ASSETS

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

TOTAL 183 1,097 189 189 190

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 183 1,097 189 189 190

Total cash used to acquire assets 183 1,097 189 189 190

Prepared on Australian Accounting Standards basis. a Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental Capital Budgets.


127

Table 3.6: Statement of asset movements (Budget year 2017-18) Other property, Computer Total plant and software and equipment intangibles $'000 $'000 $'000

As at 1 July 2017 Gross book value 1,187 296 1,483 Accumulated depreciation/amortisation and impairment (321) (210) (531)

Opening net book balance 866 86 952 CAPITAL ASSET ADDITIONS

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

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

Closing net book balance 1,426 89 1,515 Prepared on Australian Accounting Standards basis. a 'Appropriation equity' refers to equity injections provided through Appropriation Bill (No. 2) 2017-18. b ‘Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)

2017-18 for depreciation/amortisation expenses, DCBs or other operational expenses.

129



131


SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................................ 133 1.1 Strategic direction statement ................................................................................. 133 1.2 Entity resource statement ..................................................................................... 135 1.3 Budget measures .................................................................................................. 137

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................................... 138 2.1 Budgeted expenses and performance for Outcome 1 .......................................... 139

SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................................ 145 3.1 Budgeted financial statements .............................................................................. 145 3.2 Budgeted financial statements tables ................................................................... 148

133




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

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

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

Key areas of focus

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

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

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

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

National Disability Insurance Agency Budget Statements

134

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

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

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

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

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


135


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


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


136

Table 1.1: National Disability Insurance Agency resource statement – Budget estimates for 2017-18 as at Budget May 2017 2016-17 2017-18 Estimated Estimate actual $'000 $'000

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

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

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

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

Funds from other sources

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

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

2016-17 2017-18

Average staffing level (number) 1,849 2,460

Third party payments from and on behalf of other entities 2016-17 2017-18 estimated estimate actual $'000 $'000

Payments made to other entities for the provision of services 75,518 74,959 Prepared on a resourcing (i.e. appropriations available) basis. All figures shown above are GST exclusive – these may not match figures in the cash flow statement. The National Disability Insurance Agency (NDIA) is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Department of Social Services, as responsible non-corporate Commonwealth entity (NCCE), which are then paid to the NDIA and are considered 'departmental' for all purposes. a Appropriation Bill (No. 1) 2017-18. b Appropriation Bill (No. 2) 2017-18. c Commonwealth cash contributions for reasonable and necessary care and support for participants and

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

governments.


137

1.3 BUDGET MEASURES

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

Table 1.2: National Disability Insurance Agency 2017-18 Budget measures Part 1: Measures announced since the 2016-17 MYEFO 2016-17 2017-18 2018-19 2019-20 2020-21 Program $'000 $'000 $'000 $'000 $'000

Expense measures

National Disability Insurance Scheme - finalisation of transition arrangementsa

1.1, 1.2, 1.3

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

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

National Disability Insurance Scheme Quality and Safeguards Commission - establishmentb

1.3

Departmental expenses – 426 (463) (2,214) (2,914)

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

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

National Disability Insurance Scheme Quality and Safeguards Commission - establishmentb

1.3

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

Departmental – (1,031) (1,031) – – Total – (1,031) (1,031) – –

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

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

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


138




Note:


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

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

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

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

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

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


139


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.

Linked programs

Department of Social Services

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

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


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

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


140

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

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



Program 1.1: Reasonable and necessary care and support for participants

Revenue from Government

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

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

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

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


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

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

Total expenses for Program 1.2 33,284 68,871 105,264 119,348 118,603 Program 1.3: Agency costs


Ordinary annual services (Appropriation Bill No. 1) 691,801 1,026,117 1,393,872 1,143,913 1,096,187

Revenues from other independent sources 13,129 – – – –

Expenses not requiring appropriation in the budget year – 6,900 – – –

Total expenses for Program 1.3 704,930 1,033,017 1,393,872 1,143,913 1,096,187


141




Outcome 1 totals by resource type


Ordinary annual services (Appropriation Bill No. 1) 1,598,466 1,026,117 1,393,872 1,143,913 1,096,187

Payment from related entities – 2,700,151 5,449,981 8,468,295 9,326,901

Revenues from other independent sourcesa 2,112,747 5,413,797 8,922,369 9,506,881 9,957,196

Expenses not requiring appropriation in the budget year – 6,900 – – –

Total expenses for Outcome 1 3,711,213 9,146,965 15,766,222 19,119,089 20,380,284 2016-17 2017-18 Average staffing level (number) 1,849 2,460

a Revenues from other independent sources in Program 1.1 includes cash contributions from state and territory governments and services provided in-kind to participants on behalf of either the Australian Government and/or state and territory governments.


142

Table 2.1.2: Performance criteria for Outcome 1

Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2017-18

Budget measures have created new programs or materially changed existing programs.

Outcome 1 – To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities. Program 1.1 – Reasonable and necessary care and support for participants – the objective of this program is to provide funding for reasonable and necessary support to eligible people with a disability through consistent, high quality plans, and to ensure they are in control and have choices to appropriately support their independence and social and economic participation. This program contributes to the outcome by the delivery of financially sustainable funding for participants’ reasonable support, enabling participants to source services in their plans to achieve their goals. Delivery The program provides funding for reasonable and necessary support to eligible

participants in the Scheme with an approved plan. Funding arrangements are via cash payments to participants and registered service providers and the allocation of existing Commonwealth and state and territory arrangements.



2016-17 • Number of participants • Costs of financially

sustainable supports • Participant satisfaction

• The number of participants entering the Scheme by 30 June 2017 will be in line with bilateral estimates, noting that forecasts are dependent on a number of factors including working with jurisdictions to contact transitioning participants.

• Considering the number of participants who have entered the Scheme and distribution of packages committed to these participants, the Scheme is within the full scheme funding envelope for 2016-17.

• Participant satisfaction survey results are positive.

2017-18 • Number of participants • Costs of financially

sustainable supports • Participant satisfaction

• Number of participants entering the Scheme as per bilateral agreements and actuarial forecasts including any remaining 2016-17 participants if required.

• Costs are within expected amounts as per bilateral agreements and actuarial forecasts.

• Participant satisfaction survey results are positive.



143

Table 2.1.2: Performance criteria for Outcome 1 (continued) Purposes Improving outcomes for people with disability

Supporting people with disability to pursue their goals and maximise their independence and social and economic participation. Providing reasonable and necessary supports, including early intervention supports, for Scheme participants. Supporting people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports. Developing the capacity of people with disability to participate in the community and in employment.

Material changes to Program 1.1 resulting from the following measures: Nil a Participant satisfaction has previously been included within the performance criteria for Program 1.3 –

Agency costs and is now shown above.

Program 1.2 – Community inclusion and capacity development grants – the objective of this program is to provide funding to organisations to assist them to increase social and community participation for people with a disability. By increasing community and social involvement of people with a disability, this program directly targets and contributes to those parts of the outcome. This has additional benefits for increasing community awareness of people with a disability and their capabilities which will improve economic participation and thus independence.

Delivery The Agency will provide funding to organisations via grants which will allow them to assist all people with a disability, not only eligible participants.



2016-17 • Number and nominal value of grants provided

• The Agency will successfully issue all grants within agreed timeframes to allow organisations to fulfil the objectives of the program.

2017-18 • Number and nominal value of grants provided

• All grants successfully delivered in accordance with the program agreed with the Commonwealth and state and territory jurisdictions.


Purposes Improving outcomes for people with disability Supporting people with disability to pursue their goals and maximise their independence and social and economic participation. Developing the capacity of people with disability to participate in the community and in employment.



144

Table 2.1.2: Performance criteria for Outcome 1 (continued) Program 1.3 – Agency costs – the Agency costs program ensures efficient and effective use of the Agency operating resources to implement the outcomes of the Agency. This program contributes to the outcome as it is the primary delivery mechanism for the implementation of the Scheme. The Agency is responsible for assessing applicants to the Scheme and developing plans, for those whom are eligible, in a manner which is based on insurance principles, and administering the payments made under Program 1.1 and 1.2.

Delivery The Agency develops and maintains the strategies and frameworks to be used in the transition of the NDIS to full scheme. These include the process for assessment and planning, disability services market development and community engagement and communications. The Agency executes these through a network of service centres throughout Australia and by working together with its community partners to deliver elements of the Scheme to people with a disability and the wider sector.



2016-17 • Ratio of operating expenses to Scheme costs

• The Agency is able to successfully achieve delivery of the service network across Australia

• Agency is transitioning toward achieving operating expenses to Scheme costs target ratio.

• Required service network across Australia is operational as per bilateral agreements.

2017-18 • Ratio of operating expenses to Scheme costs

• The Agency is able to successfully achieve delivery of service network across Australia

• Agency is transitioning toward achieving operating expenses to Scheme costs target ratio.

• Required service network across Australia is operational as per bilateral agreements.


Purposesb Funding the operations of the Agency and its delivery partners to achieve the following: Improving outcomes for people with disability Facilitating the development of a nationally consistent approach to the access to, and the planning and funding of, supports for people with disability. Supporting people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports. Safeguarding the sustainability of the NDIS Building a sustainable scheme based on NDIS insurance principles, including assessing and reporting on whether NDIS investments improve outcomes and minimise lifetime support costs. Building public trust and stakeholder confidence Building trust and confidence amongst stakeholders (participants, carers, the community and the disability services market) through communication and engagement.

Material changes to Program 1.3 resulting from the following measures: Nil a Participant satisfaction has previously been included within the performance criteria for Program 1.3 and is

now shown within the performance criteria for Program 1.1 – Reasonable and necessary care and support for participants.

b These purposes will be reflected in the Agency’s forthcoming corporate plan.


145


Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2017-18 budget year, including the impact of budget measures and resourcing on financial statements.


3.1.1 Explanatory notes and analysis of budgeted financial statements Income and expenses

In 2017-18 the NDIS enters the second year of transition to full scheme. The large uptake in participants is represented by the increase in grant expenses, which includes programs 1.1 and 1.2, to $8.1 billion in 2017-18. Grant expenses continue to increase across the forward estimates as further participants join the Scheme, rising to $19.3 billion in 2020-21.

The growth in supplier expenses, which represents the largest component of Agency operating costs, from $458.5 million in 2016-17 to $765.1 million in 2017-18 is primarily driven by the growth in local area coordination services provided by the NDIA’s community partners. This growth continues in 2018-19 reaching a peak of $1.1 billion before reducing as the NDIS moves from the transition phase to full scheme. Similarly, employee benefit expenses increase to $236.6 million in 2017-18 and $274.3 million in 2018-19 as the NDIS rolls out to new locations prior to stabilising once full scheme is reached.

Sale of goods and services revenue increases from $1.5 billion in 2016-17 to $6.6 billion in 2017-18 and further increasing to $17.4 billion by 2020-21. This change is due to the increase in participant numbers as the Scheme continues transition to full scheme as well as a change in the mechanism by which the Agency is funded by the Commonwealth for programs 1.1 and 1.2.

In the 2016-17 year, the Agency was appropriated Commonwealth funding for each of its three programs. From 2017-18 onwards, Commonwealth funding for programs 1.1 and 1.2 will be appropriated to the Department of Social Services and paid to the NDIA as required. These amounts are reflected as revenue from the sale of goods and services in these years. Commonwealth funding for the Agency’s operating costs will continue to be appropriated to the NDIA and is reflected as revenue from Government. This change has resulted in a movement of revenue from Government to sale of goods and services expense in 2017-18 and over the forward estimates when compared to the previous budget.


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The Agency receives services provided in-kind to participants on behalf of the Australian Government and state and territory governments, reflected as resources received free of charge. This revenue rises from $624.8 million in 2016-17 to $1.5 billion in 2017-18 and increases over the forward estimates, as the number of NDIS participants who are receiving these supports increases.

The Agency is forecasting an operating surplus of $208.5 million in 2016-17. This is primarily a result of lower than expected payments to participants for reasonable and necessary support caused by slower than expected phasing of participants into the Scheme and lower than anticipated utilisation of support by participants. In 2017-18, the Agency will incur a one-off asset write-down associated with transitioning the administration of the Western Australian (WA) NDIS Trial Site to the WA Government of $6.9 million. This will lead to a $6.9 million operating loss in that year, with the Agency otherwise budgeting for a break even position from 2018-19.

Balance sheet The Agency is budgeting for a net asset position of $450.3 million in 2016-17, falling slightly to $443.4 million in 2017-18 as a result of the budgeted operating loss in 2017-18.

Total assets in 2017-18 are forecast to be $814.9 million, comprised of $657.3 million in financial assets and $157.6 million in non-financial assets. The most significant asset is cash of $648.8 million which will be used to fund payments for reasonable support as well as the Agency’s operations. Total liabilities are expected to be $371.5 million, comprised primarily of $87.5 million in supplier payables, $215.8 million in unclaimed support grant payments and $43.7 million in unpaid employee entitlements. The remaining amounts relate to $18.7 million as a provision for makegood and $5.8 million in other payables.

Statement of cash flows The Agency’s budgeted cash flows largely reflect activity in the income statement, with no significant variations between income and expenses and their associated cash flows. The total cash received from operating activities will increase from $3.2 billion in 2016-17 to $7.7 billion in 2017-18, rising to $18.6 billion in 2020-21. This primarily reflects increased funding from the Commonwealth, and state and territory governments as the NDIS moves towards full scheme. This will be offset by increased cash payments for reasonable and necessary support, and employee and supplier expenses as the Scheme grows.


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Capital budget statement The Agency will invest $106.4 million in the purchase of leasehold improvements during 2017-18 as new service centres are established to facilitate the NDIS transition. These will be funded through the use of prior year unspent equity injections. A further $107.8 million will be invested in the final year of transition in 2018-19 by which time the Agency’s network will be fully established, requiring a much lower level of capital funding to maintain in 2019-20 and beyond.


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Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000

EXPENSES Employee benefits 194,793 236,563 274,273 263,996 269,069 Suppliers 458,533 765,059 1,087,365 846,949 793,147 Grants 2,834,682 8,113,948 14,372,350 17,975,176 19,284,097 Depreciation and amortisation 14,727 24,495 32,234 32,968 33,971 Write-down and impairment of assets – 6,900 – – –

Total expenses 3,502,735 9,146,965 15,766,222 19,119,089 20,380,284 LESS: OWN-SOURCE INCOME Own-source revenue

Sale of goods and rendering of services 1,474,824 6,613,927 12,412,310 16,181,407 17,411,194 Resources received free of charge 624,794 1,500,021 1,960,040 1,793,769 1,872,903 Interest 12,568 – – – – Other 561 – – – –

Total own-source revenue 2,112,747 8,113,948 14,372,350 17,975,176 19,284,097 Total own-source income 2,112,747 8,113,948 14,372,350 17,975,176 19,284,097 Net (cost of)/contribution by services (1,389,988) (1,033,017) (1,393,872) (1,143,913) (1,096,187)

Revenue from Government 1,598,466 1,026,117 1,393,872 1,143,913 1,096,187

Surplus/(deficit) attributable to the Australian Government 208,478 (6,900)

– – –

Total comprehensive income/(loss) attributable to the Australian Government 208,478 (6,900) – – –



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Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21 Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 692,789 648,805 712,199 728,545 757,251 Trade and other receivables 4,824 8,528 10,871 8,982 8,245


Land and buildings 82,145 157,491 233,104 207,997 184,688 Property, plant and equipment 372 71 44 31 31

Total non-financial assets 82,517 157,562 233,148 208,028 184,719 Total assets 780,130 814,895 956,218 945,555 950,215

LIABILITIES Payables

Suppliers 63,483 87,456 111,282 92,072 84,580 Other payables 3,899 5,837 7,063 6,075 5,689


Employee provisions 34,386 43,708 52,645 53,809 54,973 Grants 215,848 215,848 215,848 215,848 215,848 Other provisions 12,250 18,682 19,196 19,719 20,431

Total provisions 262,484 278,238 287,689 289,376 291,252 Total liabilities 329,866 371,531 406,034 387,523 381,521 Net assets 450,264 443,364 550,184 558,032 568,694

EQUITYa Parent entity interest

Contributed equity 205,733 205,733 312,553 320,401 331,063 Reserves 1,881 1,881 1,881 1,881 1,881 Retained surplus (accumulated deficit) 242,650 235,750 235,750 235,750 235,750


Prepared on Australian Accounting Standards basis. a ‘Equity’ is the residual interest in assets after deduction of liabilities.


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Table 3.3: Departmental statement of changes in equity – summary of movement (Budget year 2017-18) Retained Asset Other Contributed Total

earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2017

Balance carried forward from previous period 242,650 1,881 – 205,733 450,264

Adjusted opening balance 242,650 1,881 – 205,733 450,264 Comprehensive income

Surplus/(deficit) for the period (6,900) – – – (6,900) Total comprehensive income (6,900) – – – (6,900)

of which: Attributable to the Australian Government (6,900) – – – (6,900)


Equity Injection – Appropriation – – – – –

Sub-total transactions with owners – – – – – Estimated closing balance as at 30 June 2018

235,750 1,881 – 205,733 443,364

Closing balance attributable to the Australian Government

235,750 1,881 – 205,733 443,364



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Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21

Estimated Budget Forward Forward Forward



Appropriations 1,598,466 1,026,117 1,393,872 1,143,913 1,096,187 Sale of goods and rendering of services 1,492,960 6,613,927 12,412,310 16,181,407 17,411,194 Interest 14,023 – – – – Net GST received 44,028 80,847 105,679 89,818 82,096 Other 561 – – – –

Total cash received 3,150,038 7,720,891 13,911,861 17,415,138 18,589,477 Cash used

Employees 185,113 227,241 265,336 262,832 267,905 Suppliers 492,874 817,264 1,169,814 954,550 881,672 Grants 2,129,957 6,613,930 12,412,317 16,181,410 17,411,194

Total cash used 2,807,944 7,658,435 13,847,467 17,398,792 18,560,771 Net cash from/(used by) operating activities 342,094 62,456 64,394 16,346 28,706 INVESTING ACTIVITIES Cash used

Purchase of property, plant, equipment and intangibles 71,932 106,440 107,820 7,848 10,662

Total cash used 71,932 106,440 107,820 7,848 10,662 Net cash from/(used by) investing activities (71,932) (106,440) (107,820) (7,848) (10,662) FINANCING ACTIVITIES

Contributed equity 116,197 – 106,820 7,848 10,662 Total cash received 116,197 – 106,820 7,848 10,662 Net cash from/(used by) financing activities 116,197 – 106,820 7,848 10,662 Net increase/(decrease) in cash held 386,359 (43,984) 63,394 16,346 28,706

Cash and cash equivalents at the beginning of the reporting period 306,430 692,789 648,805 712,199 728,545

Cash and cash equivalents at the end of the reporting period 692,789 648,805 712,199 728,545 757,251



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Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2016-17 2017-18 2018-19 2019-20 2020-21

Estimated Budget Forward Forward Forward



Equity injections - Appropriation Bill No. 2 116,197 – 106,820 7,848 10,662

Total new capital appropriations 116,197 – 106,820 7,848 10,662

Provided for: Purchase of non-financial assets 71,932 – 106,820 7,848 10,662

Total Items 71,932 – 106,820 7,848 10,662

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriationa 71,932 106,440 107,820 7,848 10,662

TOTAL 71,932 106,440 107,820 7,848 10,662 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 71,932 106,440 107,820 7,848 10,662 Total cash used to acquire

t 71,932 106,440 107,820 7,848 10,662

Prepared on Australian Accounting Standards basis. a Includes both current Appropriation Bill (No. 2) and prior Act 2/4/6 appropriations. Purchases in 2017-18 will

be funded through the use of prior year unspent equity injections.


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Table 3.6: Statement of asset movements (Budget year 2017-18)

Buildings Other property, Computer Total plant and software and equipment intangibles

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

Gross book value 115,186 2,402 1,888 119,476 Accumulated depreciation/ amortisation and impairment (33,041) (2,030) (1,888) (36,959)

Opening net book balance 82,145 372 – 82,517 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets

By purchase – appropriation equitya 106,440 – – 106,440 Total additions 106,440 – – 106,440 Other movements Depreciation/amortisation expense (24,194) (301) – (24,495) Other (6,900) – – (6,900) Total other movements (31,094) (301) – (31,395)

As at 30 June 2018 Gross book value 214,726 2,402 1,888 219,016 Accumulated depreciation/ amotisation and impairment (57,235) (2,331) (1,888) (61,454)

Closing net book balance 157,491 71 – 157,562 Prepared on Australian Accounting Standards basis. a ‘Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2)

2017-18, including CDABs.

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PORTFOLIO GLOSSARY accrual accounting System of accounting in which items are brought to

account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

additional estimates Where amounts appropriated at budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

administered funds Usually the funds or expenses an entity manages on behalf of the Government.

administered items Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the entity, and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.

annual appropriation Two appropriation bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

Appropriation An amount of public money Parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

Appropriation Bill (No. 1) The Bill proposes spending from the CRF for the ordinary annual services of Government. Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 1).

Glossary

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Appropriation Bill (No. 2) This bill proposes spending from the CRF for purposes other than the ordinary annual services of Government. Under existing arrangements between the two Houses of Parliament (the ‘Compact’), this Bill includes appropriation funding of administered expenses for new outcomes, for payments to the states and territories, and for departmental or administered capital. Funding for extensions to existing programs can be included in Appropriation Bill (No. 1). Once the bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 2).

Appropriation Bills (No. 3 and No. 4)

If an amount provided in Appropriation Acts (No.1 or No. 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or No. 4). However, they are also commonly referred to as the Additional Estimates Bills. Once these bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (No. 3 and No. 4).

assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

average staffing level (ASL) The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Consolidated Revenue Fund (CRF)

The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government form one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

cross-portfolio budget measure

A budget measure that affects programs administered in a number of portfolios.

departmental items Resources (assets, liabilities, revenues and expenses) that entity chief executive officers control directly. This includes outsourced activities funded and controlled by the entity. Examples of departmental items include entity running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

Glossary

156

depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.

equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

estimates An entity’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each program in the Budget, in consultation with the Department of Finance. (See also forward estimates and additional estimates.)

expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

forward estimates The financial statement estimate for the three out years after the budget year.

grants Non-reciprocal transfers of economic resources, in which the payer entity does not receive approximately equal value in return.

key performance indicators Qualitative and quantitative measures of a program that provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.

measure A new policy or savings decision of the Government with financial impacts on the Government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.

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.

Glossary

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outcome statement Articulates the intended results, activities and target group of an Australian Government entity. An outcome statement serves three main purposes within the financial framework: • to explain and control the purposes for which

annual appropriations are approved by the Parliament for use by entities

• to provide a basis for annual budgeting, including (financial) reporting against the use of appropriated funds

• to measure and assess entity and program (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.

program An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

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

The primary piece of Commonwealth resource management legislation, establishing a coherent system of governance and accountability for public resources, with an emphasis on planning, performance and reporting. The Act applies to all Commonwealth entities and Commonwealth companies from 1 July 2014.

receipts The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and government business enterprise dividends received.

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revenue Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.

special accounts Balances existing within the CRF that are supported by standing appropriations (PGPA Act sections 78 and 80). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (PGPA Act, section 78) or through an Act of Parliament (referred to in section 80 of the PGPA Act).

special appropriation (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year. Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.

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ABBREVIATIONS AAO Administrative Arrangements Order

ABS Australian Bureau of Statistics

AGD Attorney-General’s Department

AGRC Australian Gambling Research Centre

AHURI Australian Housing and Urban Research Institute

AIFS Australian Institute of Family Studies

BSWAT Business Services Wage Assessment Tool

CDC Cashless Debit Card

COAG Council of Australian Governments

CRF Consolidated Revenue Fund

DCB Departmental Capital Budget

DES Disability Employment Services

DoH Department of Health

DHS Department of Human Services

DSP Disability Support Pension

DSS Department of Social Services

DTBNYA Decision Taken But Not Yet Announced

DVA Department of Veterans’ Affairs

FFR Federal Financial Relations

FTB Family Tax Benefit

GST Goods and Services Tax

ICT Information Communications and Technology

IM Income Management

MoU Memorandum of Understanding

MYEFO Mid-Year Economic and Fiscal Outlook

NAATI National Accreditation Authority for Translators and Interpreters

NAHA National Affordable Housing Agreement

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NCCE Non-corporate Commonwealth Entity

NDIA National Disability Insurance Agency

NDIS National Disability Insurance Scheme

NPAH National Partnership Agreement on Homelessness

NRAS National Rental Affordability Scheme

PGPA Act Public Governance, Performance and Accountability Act 2013

PM&C Department of the Prime Minister and Cabinet

PPL Paid Parental Leave

RTO Refundable Tax Offsets

SACS Social and Community Services

SIFS Single Income Family Supplement

SSLA Bill Social Services Legislation Amendment Bill 2017

TILA Transition to Independent Living Allowance

UN United Nations

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