Portfolio Additional Estimates Statements 2017 18 · The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) and Appropriation (Parliamentary

Portfolio Additional Estimates Statements 2017–18

Social Services Portfolio

Explanations of Additional Estimates 2017–18

© Commonwealth of Australia 2018

ISBN 978-1-925318-66-1

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The Hon Dan Tehan MP

Minister for Social Services

PARLIAMENT HOUSE

CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the

2017–18 Additional Estimates for the Social Services Portfolio.

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

statement on the funding requirements being sought for the Portfolio.

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

to the Parliament and, through it, the public.

Yours sincerely


iv

ABBREVIATIONS AND CONVENTIONS

The following notations may be used:

NEC/nec not elsewhere classified

– nil

.. not zero, but rounded to zero

na not applicable (unless otherwise specified)

nfp not for publication

$m $ million

$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded

to one decimal place, whereas figures in tables are generally rounded to the nearest

thousand. Discrepancies in tables between totals and sums of components are due to

rounding.

Enquiries

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

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

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

at www.budget.gov.au.

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

5

USER GUIDE TO THE

PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS

6

vii

USER GUIDE

The purpose of the 2017-18 Portfolio Additional Estimates Statements (PAES), like that

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

of Parliament of the proposed allocation of resources to Government outcomes by

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

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

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

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

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

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

outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation

Bills (Nos. 3 and 4) and Appropriation (Parliamentary Departments) Bill (No. 2)

2017-18. In this sense, the PAES is declared by the Additional Estimates Appropriation

Bills to be a ‘relevant document’ to the interpretation of the Bills according to

section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook (MYEFO) 2017-18 is a mid-year

budget report which provides updated information to allow the assessment of the

Government’s fiscal performance against its fiscal strategy, the PAES update the most

recent budget appropriations for entities within the portfolio.

User guide

viii

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

Explains key terms and acronyms relevant to the portfolio

User guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio Overview

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

in the portfolio.

Entity Additional Estimates Statements

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

Section 1: Entity

overview and resources

This section details the changes in total resources available to an

entity, the impact of any measures since Budget, and impact on

Appropriation Bills No. 3 and 4.

Section 2: Revisions to

outcomes and planned

performance

This section details changes to Government outcomes and/or

changes to the planned performance of entity programs.

Section 3: Special

account flows and

budgeted financial

statements

This section contains updated explanatory tables on special

account flows and staffing levels and revisions to the budgeted

financial statements.

Glossary/Abbreviations

ix

CONTENTS

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

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

Entity Additional Estimate Statements ....................................................................... 7

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

National Disability Insurance Agency .......................................................................... 101

Portfolio glossary ...................................................................................................... 126

Abbreviations ........................................................................................................... 130

10

1

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

2

3

SOCIAL SERVICES PORTFOLIO OVERVIEW

This document provides information about the changes within the

Social Services Portfolio since the publication of the 2017–18 Portfolio Budget

Statements. Prior to 20 December 2017, the Social Services Portfolio included the

Department of Human Services (DHS). As part of the Administrative Arrangements

Order (AAO) changes of 20 December 2017, DHS became part of the newly established

Human Services Portfolio. For information on DHS, refer to the Human Services

Portfolio Additional Estimates Statements.

Ministers and portfolio responsibilities

A new Cabinet Minister and Assistant Ministers for the Social Services Portfolio were

sworn in on 20 December 2017. The Minister and Assistant Ministers responsible for

the portfolio and its entities are as below:

From 2017-18 Budget to 19 December 2017 From 20 December 2017


The Hon Christian Porter MP



Assistant Minister for Social Services and

Disability Services

The Hon Jane Prentice MP


Disability Services



Multicultural Affairs

Senator the Hon Zed Seselja

Assistant Minister for Children and

Families

The Hon Dr David Gillespie MP

Overview of additional estimates sought for the portfolio

Additional appropriations of $36.7 million are being sought through Appropriation

Bill (No. 3) 2017–18 as a result of new measures and variations. In addition, these

statements reflect decreased estimates of $309.5 million for the portfolio’s special

appropriations.

Structure of the portfolio

Under the Public Governance, Performance and Accountability Act 2013 (PGPA Act),

the portfolio comprises of one Department of State, one listed Commonwealth entity

and one corporate Commonwealth entity. Refer to Figure 1 for further information on

the portfolio’s structure.

Portfolio overview

4

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.

DSS has four active outcomes. As part of the AAO of 20 December 2017 the

Multicultural Affairs function within Outcome 2 was transferred to the Department of

Home Affairs. To allow reporting of this function it is retained within Outcome 2 of

these statements.

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 (NDIS). It provides individual control and

choice in the delivery of reasonable and necessary care and supports to improve the

independence, and the social and economic participation of eligible people with

disability, their families and carers. NDIA will also play a key role in building

community awareness and understanding of disability matters to reduce the barriers

to community inclusion for people with disability, their families and carers. NDIA is a

corporate Commonwealth entity under the PGPA Act.

Portfolio overview

5

Figure 1: Social Services portfolio structure and outcomes



Assistant Minister for Social Services and Disability Services


Assistant Minister for Children and Families

The Hon Dr David Gillespie MP

Department of Social Services

Secretary: Ms Kathryn Campbell CSC

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 Rob De Luca

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.

6

6

7

SOCIAL SERVICES ADDITIONAL ESTIMATES STATEMENTS

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

National Disability Insurance Agency ..................................................................... 101

8

9



DEPARTMENT OF

SOCIAL SERVICES

ENTITY ADDITIONAL ESTIMATES

STATEMENTS

10

11


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

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

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

1.3 2017-18 measures since Budget ........................................................................... 19

1.4 Additional estimates, resourcing and variations to outcomes ................................. 23

1.5 Breakdown of additional estimates by Appropriation Bill ........................................ 27

Section 2: Revisions to outcomes and planned performance ............................... 28

2.1 Budgeted expenses and performance for Outcome 1 ............................................ 28




Section 3: Special account flows and budgeted financial statements .................. 89

3.1 Special account flows .............................................................................................. 89

3.2 Budgeted financial statements ................................................................................ 90

12

13


Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

DSS’ Outcome structure reflects the core areas in which the Department assists people

and families in Australia:

1. Social Security

2. Families and Communities

3. Disability and Carers

4. Housing

The Administrative Arrangements Orders of 20 December 2017 resulted in the transfer

of multicultural affairs to the Department of Home Affairs.

The Department pursues these Outcomes through policies and programs that:

support social and economic participation by requiring people who have the

capacity to work, to do so

target assistance where it is most required

deliver services to families, parents and children

enhance the independence, care and wellbeing of people with disability and carers

foster community cohesion and promote civil society

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

Department of Social Services Additional Estimates Statements

14

Key changes to policy priorities since the 2017–18 Budget

The Government is committed to ensuring Australia has a strong, sustainable and

needs-based social security system by:

promoting enhanced long-term financial independence and self-sufficiency for

newly arrived migrants by extending existing waiting periods for certain

welfare payments and introducing new, similar waiting periods for other

payments

maintaining income thresholds for some payments such as Family Tax

Benefit (FTB) and Paid Parental Leave (PPL) to target those most in need

streamlining and integrating payment and debt recovery systems.

The Government has committed to improve existing policies and programs through:

providing additional funding for drug and alcohol treatment and support

services targeted at those job seekers who test positive to a drug test more than

once under the drug testing trial

additional support and assistance for people who experienced institutional

child sexual abuse

the introduction of an Australia-wide screening database for workers in the

NDIS, the continuation of the key information service supporting employment

of people with disability and additional funding to support the transition of

Western Australia into the NDIS

the continued delivery of valuable services to vulnerable parents, families and

children.


15

1.2 ENTITY RESOURCE STATEMENT

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

Table 1.1 outlines the total resourcing available from all sources for the 2017–18 Budget

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

Special Appropriations and Special Accounts.


16

Table 1.1: Department of Social Services Resource Statement — Additional Estimates for 2017–18 as at Additional Estimates February 2018 Actual Estimate Proposed Total

available as at Additional estimate at

appropriation Budget Estimates Additional

2016–17 2017–18 2017–18 Estimates

$'000 $'000 $'000 2017–18

$'000

Departmental Annual appropriations - ordinary annual services

a

Prior year appropriations availableb 128,127 101,405 26,953 128,358

Departmental appropriationc 368,959 407,630 (11,910) 395,720

s 74 Retained revenue receiptsd 104,646 37,497 50,099 87,596

Departmental capital budgete 53,071 16,614 8,967 25,581

Annual appropriations - other services - non-operating

f

Equity injections 34,835 40,412 – 40,412

Total departmental annual appropriations 689,638 603,558 74,109 677,667

Total departmental resourcing 689,638 603,558 74,109 677,667

Administered Annual appropriations - ordinary annual services

a

Outcome 1 31,277 25,548 – 25,548

Outcome 2c 756,168 695,264 11,827 707,091

Outcome 3 1,639,642 4,331,634 (138,463) 4,193,171

Outcome 4 86,423 86,839 (684) 86,155

Payments to corporate entitiesg 1,598,466 1,026,117 24,862 1,050,979

Annual appropriations - other services - non-operating

Payments to corporate entities 116,197 – – –

Total administered annual appropriations 4,228,173 6,165,402 (102,458) 6,062,944

Special appropriations

Social Security (Administration) Act 1999 89,665,166 89,914,972 (187,102) 89,727,870 A New Tax System (Family Assistance) (Administration) Act 1999 20,200,088 19,251,398 (99,620) 19,151,778

Paid Parental Leave Act 2010 2,152,101 2,234,280 (23,298) 2,210,982

Student Assistance Act 1973 346,600 337,554 536 338,090 Public Governance, Performance and Accountability Act 2013 9,313 – – – Business Services Wage Assessment Tool Payment Scheme Act 2015

h 10,199 nfp nfp nfp

Total administered special appropriations 112,383,467 111,738,204 (309,484) 111,428,720


17

Table 1.1: Department of Social Services Resource Statement — Additional Estimates for 2017–18 as at Additional Estimates, February 2018 (continued) Actual Estimate Proposed Total



2016–17 2017–18 2017–18 Estimates

$'000 $'000 $'000 2017–18

$'000

Special accountsi

Opening balance 231,491 193,613 203,812 397,425

Appropriation receiptsj 325,061 386,870 (95) 386,775

Non–appropriated receipts 5,575 1,705 (5) 1,700

Total special accounts receipts 562,127 582,188 203,712 785,900

less administered appropriations drawn from annual/special appropriations and credited to special accounts 325,061 386,870 (95) 386,775 less payments to corporate entities from annual/special appropriations 1,714,663 1,026,117 24,862 1,050,979

Total administered resourcing 115,134,043 117,072,807 (232,997) 116,839,810

Total resourcing for DSS 115,823,681 117,676,365 (158,888) 117,517,477

2016–17 2017–18

Average staffing level (number) 1,979 1,995

Note: All figures are GST exclusive.

a Appropriation Act (No. 1) 2017–18 and Appropriation Bill (No. 3) 2017–18.

b Estimated adjusted balance carried forward from previous year for annual appropriations.

c Adjusted to reflect the transfer of the Multicultural Affairs function to the Department of Home Affairs as a result of the 20 December 2017 Administrative Arrangements Order (AAO).

d Estimated retained revenue receipts under section 74 of the PGPA Act.

e Departmental capital budgets are not separately identified in Appropriation Act (No. 1) and Bill (No. 3) and form part of ordinary annual services items. Please refer to Table 3.6 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

f Appropriation Act (No. 2) 2017–18 and Appropriation Bill (No. 4) 2017–18.

g ‘Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act.

h 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.

i Excludes ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM), Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM). For further information on special accounts, see Table 3.1.

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


18

Table 1.1: Department of Social Services resource statement – Additional Estimates for 2017–18 as at Additional Estimates, February 2018 (continued)

Third-party payments from and on behalf of other entities

Actual Estimate Proposed Total

Payments as at Additional estimate at

2016–17 Budget Estimates Additional

$'000 2017–18 2017–18 Estimates

$'000 $'000 2017–18

$'000

Payments made by the Department of Human Services on behalf of DSS:

Special appropriations – Social Security (Administration) Act 1999 89,617,284 91,887,360 (1,330,942) 90,556,418 Special appropriations – A New Tax System (Family Assistance) (Administration) Act 1999 20,199,502 19,499,677 (185,848) 19,313,829 Special appropriations – Paid Parental Leave Act 2010 2,152,101 2,239,894 (33,391) 2,206,503 Special appropriations – Student Assistance Act 1973 346,600 350,336 (3,228) 347,108

Annual administered appropriations 4,214 7,476 – 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 583 1,158 (1,154) 4 Special appropriations – Social Security (Administration) Act 1999 46,532 47,836 (952) 46,884

Payments made to other entities for the provision of services:

Australian Taxation Office 612 600 (600) –

Department of Veterans' Affairs 156 148 4 152 Payments made to corporate entities within the Portfolio:

National Disability Insurance Agencyk 1,714,663 1,026,117 24,862 1,050,979

Note: All figures are GST exclusive. k Funding under Appropriation Act (No. 1) and Appropriation Bill (No.3) is appropriated to DSS and then paid

to NDIA. All appropriations paid to the NDIA are considered to be departmental for all purposes.


19

1.3 2017-18 MEASURES SINCE BUDGET

Table 1.2 summarises new Government measures taken since the 2017–18 Budget.

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

program identified.

Table 1.2: Department of Social Services 2017–18 measures since Budget Program 2017–18 2018–19 2019–20 2020–21 $'000 $'000 $'000 $'000

Revenue Measure Higher Education Reforms - revised implementation

a 1.11

Administered expenses – – – –

Departmental expenses – – – –

Total – – – –

National Disability Insurance Scheme Quality and Safeguards Commission - national worker screening database

3.2

Administered expenses – 4,541 894 674


Total – 4,541 894 674

Total revenue measures

Administered – 4,541 894 674

Departmental – – – –

Total – 4,541 894 674

Expense measures No Jab No Pay and Healthy Start for School - strengthening compliance arrangements

1.1

Administered expenses – (1,039) (2,636) (4,170)


Total – (1,039) (2,636) (4,170)

Support for Veterans' Mental Health - additional funding

b

1.1, 1.8, 1.9, 1.10

Administered expenses (167) (2,485) (2,601) (2,756)


Total (167) (2,485) (2,601) (2,756)

Social Services Legislation Amendment (Welfare Reform) Bill 2017 - amendments

1.10

Administered expenses – – 9 31


Total – – 9 31

Higher Education Reforms - revised implementation

a 1.11



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.


20

Table 1.2: Department of Social Services 2017–18 measures since Budget (continued)

Program 2017–18 2018–19 2019–20 2020–21

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

Expense measures (continued) Children and Parenting Support Services - continuation 2.1

Administered expenses – 10,366 10,531 –


Total – 10,366 10,531 –

Commonwealth Redress Scheme for Survivors of Institutional Child Sexual Abuse - additional funding

2.1

Administered expenses – 20,308 16,939 17,376


Total – 20,308 16,939 17,376

Disability Employment Services - encouraging better employment outcomes

3.1, 3.3


Departmental expenses – 574 376 417

Total – (1,519) (1,717) (1,676)

DisabilityCare Australia Fund - initial payments 3.2



Total – – – –

National Disability Insurance Scheme Quality and Safeguards Commission - national worker screening database

3.3


Departmental expenses 368 2,590 1,787 1,347

Total 368 2,590 1,787 1,347

Cross-Outcome Family Tax Benefit - broadening debt repayment

Outcome 1

1.1, 1.2, 1.3, 1.6, 1.8, 1.9,

1.10, 1.11



Outcome 2 2.2

Administered expenses – (30) (171) (156)


Total – (18,520) (106,656) (97,123)



21


Program 2017–18 2018–19 2019–20 2020–21

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

Cross-Outcome (continued) Strengthening the Integrity of Welfare Payments and Better Management of the Social Welfare System - unlegislated components - not proceeding

Outcome 1

1.1, 1.2, 1.3, 1.6, 1.8, 1.9,

1.10, 1.11

Administered expenses – 43,928 218,011 405,689


Outcome 2 2.2



Outcome 3 3.1

Administered expenses – (709) (2,405) (3,423)


Total – 43,219 215,606 402,266

Encouraging Self-Sufficiency for Newly Arrived Migrants

Outcome 1 1.1, 1.3,

1.9, 1.10, 1.11, 1.12


Departmental expenses 1,160 556 – –

Outcome 2 2.2



Total 1,160 (124,392) (410,023) (746,700)

Family Tax Benefit and Paid Parental Leave - maintaining income thresholds

Outcome 1 1.1,

1.10, 1.11



Outcome 2 2.2

Administered expenses – – – (9,448)


Total – (41,400) (80,953) (198,463)

Rollout of National Disability Insurance Scheme in Western Australia - revised implementation arrangements

Outcome 1 1.8

Administered expenses (977) (3,056) (6,487) (9,399)


Outcome 3 3.1, 3.2

Administered expenses 1,356 2,820 1,866 168


Total 379 (236) (4,621) (9,231)



22


Program 2017–18 2018–19 2019–20 2020–21

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

Cross-Outcome (continued) Treatment Support Services for the Drug Testing Trial

Outcome 1 1.12


Departmental expenses 46 392 226 –

Outcome 2 2.1, 2.4

Administered expenses (9,378) 517 1,122 –

Departmental expenses (487) (343) (306) –

Total (9,819) 566 1,042 –

Total expense measures

Administered (9,166) (116,311) (365,376) (640,863)

Departmental 1,087 3,769 2,083 1,764

Total (8,079) (112,542) (363,293) (639,099)

Capital measures National Disability Insurance Scheme Quality and Safeguards Commission - national worker screening database

3.3


Departmental expenses – 6,492 – –

Total – 6,492 – –

Total capital measures

Administered – – – –

Departmental – 6,492 – –

Total – 6,492 – –

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 measure Higher Education Reforms - revised implementation is the Department of Education and Training. The full measures description and package details appear in MYEFO under the Education and Training portfolio.

b The lead entity for measure Support for Veterans' Mental Health - additional funding is the Department of Veterans' Affairs. The full measures description and package details appear in MYEFO under the Veterans' Affairs portfolio.


23

1.4 ADDITIONAL ESTIMATES, RESOURCING AND VARIATIONS TO

OUTCOMES

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

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

from new measures and other variations since the 2017–18 Budget in Appropriation Bills

No. 3 and 4.

Table 1.3: Additional estimates and other variations to outcomes since 2017–18 Budget

Program 2017–18 2018–19 2019–20 2020–21

impacted $'000 $'000 $'000 $'000

Outcome 1

Departmental

Annual appropriations

Treatment Support Services for the Drug Testing Trial 1.12 46 392 226 – Encouraging Self-Sufficiency for Newly Arrived Migrants 1.12 1,160 556 – –

Changes in Parameters

(net increase) 1.12 – 100 100 195

Other Variations

(net decrease) 1.12 (12,952) (11,992) (11,840) (11,680)

Net impact on appropriations for Outcome 1 (departmental) (11,746) (10,944) (11,514) (11,485)

Total net impact on appropriations for Outcome 1 (11,746) (10,944) (11,514) (11,485)


24

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

Program 2017–18 2018–19 2019–20 2020–21

impacted $'000 $'000 $'000 $'000

Outcome 2

Administered

Annual appropriations Treatment Support Services for the Drug Testing Trial 2.1 (9,378) 517 1,122 – Commonwealth Redress Scheme for Survivors of Institutional Child Sexual Abuse – Operation 2.1 – 20,308 16,939 17,376 Children and Parenting Support Services – Continuation 2.1 – 10,366 10,531 –

Movement of Funds

(net increase) 2.1 26,480 13,819 12,510 –

(net decrease) 2.1 (18,319) – – –


(net increase) 2.1, 2.2 – 294 26 499

Other Variationsa

(net increase) 2.1 13,044 12,935 13,010 11,680

(net decrease) 2.1 – (416) (422) (13,072)

Net impact on appropriations for Outcome 2 (administered) 11,827 57,823 53,716 16,483

Outcome 2

Departmental

Annual appropriations Treatment Support Services for the Drug Testing Trial 2.4 (487) (343) (306) –


(net increase) 2.4 – 148 127 242

Other Variationsa

(net increase) 2.4 – 7,386 8,945 8,051

(net decrease) 2.4 (1,230) (3,169) (3,172) (3,188)

Net impact on appropriations for Outcome 2 (departmental) (1,717) 4,022 5,594 5,105

Total net impact on appropriations for Outcome 2 10,110 61,845 59,310 21,588

a The Multicultural function within the Strengthening Communities component of Program 2.1 was transferred to the Department of Home Affairs as a result of the AAO of 20 December 2017. ‘Other Variations’ accounts for this AAO and other variations required for Outcome 2.


25


Program 2017–18 2018–19 2019–20 2020–21

impacted $'000 $'000 $'000 $'000

Outcome 3

Administered

Annual appropriations Disability Employment Services – encouraging better employment outcomes 3.1 – (2,093) (2,093) (2,093) Strengthening the Integrity of Welfare Payments and Better Management of the Social Welfare System – unlegislated components – not proceeding 3.1 – (709) (2,405) (3,423) Rollout of the NDIS in Western Australia – revised implementation arrangements 3.1, 3.2 1,356 2,820 1,866 168

Movement of Funds

(net increase) 3.1 – 3,604 – –

(net decrease) 3.1 (3,384) – (220) –


(net increase) 3.1, 3.2 217 – 5,230 1,634

(net decrease) 3.1, 3.2 – (2,947) – –

Other Variations

(net increase) 3.1, 3.2 55,825 214,951 449,581 930,245

(net decrease) 3.1, 3.2 (192,477) (55,761) (53,992) (50,739)

Net impact on appropriations for Outcome 3 (administered) (138,463) 159,865 397,967 875,792

Outcome 3

Departmental

Annual appropriations National Disability Insurance Scheme Quality and Safeguards Commission – national worker screening database 3.3 368 9,082 1,787 1,347 Disability Employment Services – encouraging better employment outcomes 3.3 – 574 376 417


(net increase) – – – –

(net increase) 3.3 – 86 85 166

Other Variations

(net increase) 3.3 10,152 – – –

Net impact on appropriations for Outcome 3 (departmental) 10,520 9,742 2,248 1,930

Total net impact on appropriations for Outcome 3 (127,943) 169,607 400,215 877,722


26


Program 2017–18 2018–19 2019–20 2020–21

impacted $'000 $'000 $'000 $'000

Outcome 4

Administered



(net decrease) 4.2 (126) (811) (1,095) (1,207)

Other Variations

(net decrease) 4.2 (558) (570) (583) (601)

Net impact on appropriations for Outcome 4 (administered) (684) (1,381) (1,678) (1,808)

Outcome 4

Departmental



(net increase) 4.3 – 13 13 26

Net impact on appropriations for Outcome 4 (departmental) – 13 13 26

Total net impact on appropriations for Outcome 4 (684) (1,368) (1,665) (1,782)


27

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION

BILL

The following tables detail the Additional Estimates sought for DSS through

Appropriation Bills No. 3 and 4.

Table 1.4: Appropriation Bill (No. 3) 2017–18

2016–17 2017–18 2017–18 Additional Reduced

Available Budget Revised Estimates Estimates

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

Administered items

Outcome 1 - Social Security 31,277 25,548 25,548 – –

Outcome 2 - Families and Communities 756,168 695,264 707,091 11,827 –

Outcome 3 - Disability and Carers 1,639,642 4,331,634 4,193,171 – (138,463)

Outcome 4 - Housing 86,423 86,839 86,155 – (684)

Total administered 2,513,510 5,139,285 5,011,965 11,827 (139,147)

Departmental programs

Outcome 1 - Social Security 109,012 121,897 110,151 – (11,746)

Outcome 2 - Families and Communities

a 194,214 176,727 176,240 – (487)

Outcome 3 - Disability and Carers 99,014 109,024 119,544 10,520 –

Outcome 4 - Housing 19,790 15,366 15,366 – –

Total departmental 422,030 423,014 421,301 10,520 (12,233)

Total administered and departmental 2,935,540 5,562,299 5,433,266 22,347 (151,380)

a Section 75 transfers as a result of the AAOs on 20 December 2017 are reflected in the 2017-18 Budget amount. Please see Table 1.1 footnotes for further details.


2016–17 2017–18 2017–18 Additional Reduced

Available Budget Revised Estimates Estimates

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

Non-operating

Equity injections 34,835 40,412 40,412 – –

Total non-operating 34,835 40,412 40,412 – –


28

Section 2: Revisions to outcomes and planned performance

2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1


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 Jobs and Small Business

Program

Program 1.1 – Employment Services


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


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.


29

Linked programs (continued)

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.

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


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

Programs

Program 1.1 – Veterans’ Income Support and Allowances


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


30

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.


2016–17 2017–18 2018–19 2019–20 2020–21

Actual Revised Forward Forward Forward

expenses estimated estimate estimate estimate

$'000 expenses $'000 $'000 $'000

$'000

Program 1.1: Family Tax Benefit

Administered expenses


A New Tax System (Family Assistance) (Administration) Act 1999 18,362,820 19,121,330 18,418,175 18,329,253 17,997,517

Administered Total 18,362,820 19,121,330 18,418,175 18,329,253 17,997,517

Total expenses for Program 1.1 18,362,820 19,121,330 18,418,175 18,329,253 17,997,517

Program 1.2: Child Payments



Social Security (Administration) Act 1999 3,230 3,154 3,084 3,082 3,070

A New Tax System (Family Assistance) (Administration) Act 1999 32,514 30,448 20,516 13,904 6,764

Student Assistance Act 1973 70,921 74,333 76,738 79,621 82,993

Administered Total 106,665 107,935 100,338 96,607 92,827

Total expenses for Program 1.2 106,665 107,935 100,338 96,607 92,827

Program 1.3: Income Support for Vulnerable People






Program 1.4: Income Support for People in Special Circumstances


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 659 1,366 1,362 1,369 1,376


Social Security (Administration) Act 1999 3,756 4,301 4,317 3,780 –




31

Table 2.1.1: Budgeted expenses for Outcome 1 (continued)


2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Program 1.5: Supplementary Payments and Support for Income Support Recipients


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





Program 1.6: Income Support for Seniors



Social Security (Administration) Act 1999 44,314,378 45,368,202 47,566,954 49,749,622 52,111,965



Program 1.7: Allowances and Concessions for Seniors






Program 1.8: Income Support for People with Disability







32



2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Program 1.9: Income Support for Carers


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 2,282 2,800 2,800 2,800 2,800





Program 1.10: Working Age Payments







Program 1.11: Student Payments




Student Assistance Act 1973 267,608 262,362 268,835 269,711 280,817



Program 1.12: Program Support for Outcome 1

Departmental expenses

Departmental appropriation 92,027 99,642 85,703 81,003 78,544

s 74 Retained revenue receipts

a 28,579 3,984 1,808 1,777 1,146

Expenses not requiring appropriation in the budget year

b 15,693 14,857 16,300 13,242 9,564

Departmental Total 136,299 118,483 103,811 96,022 89,254



33



2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Outcome 1 Totals by appropriation type



Special appropriations 107,560,491 109,149,885 111,576,762 115,843,773 119,200,088



Departmental appropriation 92,027 99,642 85,703 81,003 78,544


a 28,579 3,984 1,808 1,777 1,146


b 15,693 14,857 16,300 13,242 9,564

Departmental Total 136,299 118,483 103,811 96,022 89,254

Total expenses for Outcome 1 107,701,323 109,293,916 111,718,033 115,973,259 119,296,824

2016–17 2017–18

Average staffing level (number) 515 473

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 and amortisation expenses.


34

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


$'000 Budget estimate estimate estimate

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

1.1.1 - Component 1 (Family Tax Benefit Part A)

Special appropriations A New Tax System (Family Assistance) (Administration) Act 1999 14,127,755 14,857,499 14,319,740 14,297,176 14,066,399

Total component 1 expenses 14,127,755 14,857,499 14,319,740 14,297,176 14,066,399

1.1.2 - Component 2 (Family Tax Benefit Part B)


A New Tax System (Family Assistance) (Administration) Act 1999 4,235,232 4,263,830 4,098,423 4,032,065 3,931,110


1.1.3 - Component 3 (Schoolkids Bonus)


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

a (167) 1 12 12 8

Total component 3 expenses (167) 1 12 12 8

Total Program expenses 18,362,820 19,121,330 18,418,175 18,329,253 17,997,517 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.


35

Table 2.1.2: Program components of Outcome 1 (continued)

Program 1.2: Child Payments

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.2.1 - Component 1 (Single Income Family Supplement)

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

a 30,527 28,211 18,202 11,513 4,293

Total component 1 expenses 30,527 28,211 18,202 11,513 4,293

1.2.2 - Component 2 (Stillborn Baby Payment)

Special appropriations A New Tax System (Family Assistance) (Administration) Act 1999 1,987 2,237 2,314 2,391 2,471


1.2.3 - Component 3 (Double Orphan Pension)

Special appropriations Social Security (Administration) Act 1999 3,230 3,154 3,084 3,082 3,070


1.2.4 - Component 4 (Assistance for Isolated Children)

Special appropriations Student Assistance Act 1973 70,921 74,333 76,738 79,621 82,993


Total Program expenses 106,665 107,935 100,338 96,607 92,827 a

The Single Income Family Supplement (SIFS) is closed to new recipients from 1 July 2017. Grandfathering arrangements permit eligible recipients with entitlements to SIFS at 30 June 2017 to continue to receive this payment as long as they remain eligible.

Program 1.3: Income Support for Vulnerable People

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.3.1 - Component 1 (Special Benefit)



Total Program expenses 80,391 109,607 175,841 247,240 279,543


36


Program 1.4: Income Support for People in Special Circumstances

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.4.1 - Component 1 (Payments under Special Circumstances)

Annual administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 659 1,366 1,362 1,369 1,376

Total component 1 expenses 659 1,366 1,362 1,369 1,376

1.4.2 - Component 2 (Bereavement Allowance)

Special appropriations Social Security (Administration) Act 1999

a 3,756 4,301 4,317 3,780 –

Total component 2 expenses 3,756 4,301 4,317 3,780 –


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

Program 1.5: Supplementary Payments and Support for Income Support Recipients

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.5.1 - Component 1 (Low Income Supplement)

Special appropriations Social Security (Administration) Act 1999 1,883 – – – –

Total component 1 expenses 1,883 – – – –

1.5.2 - Component 2 (Essential Medical Equipment Payment)



1.5.3 - Component 3 (Utilities Allowance)





37


Program 1.6: Income Support for Seniors

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.6.1 - Component 1 (Age Pension)

Special appropriations Social Security (Administration) Act 1999 44,216,982 45,279,702 47,483,959 49,692,429 52,111,965


1.6.2 - Component 2 (Widow B Pension)


a 6,174 5,706 5,598 2,862 –


1.6.3 - Component 3 (Wife Pension (Age))


a 91,221 82,794 77,397 54,331 –


Total Program expenses 44,314,377 45,368,202 47,566,954 49,749,622 52,111,965 a


Program 1.7: Allowances and Concessions for Seniors

2016–17 2017–18 2018–19 2019–20 2020–21



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

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


a 91,399 93,289 80,607 68,399 61,084



The component was previously known as the Seniors Supplement.


38


Program 1.8: Income Support for People with Disability

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.8.1 - Component 1 (Disability Support Pension)



1.8.2 - Component 2 (Mobility Allowance)

Special appropriations Social Security (Administration) Act 1999 135,500 104,663 64,329 38,877 –


Total Program expenses 16,386,644 16,568,783 17,068,158 17,994,106 18,603,770


39


Program 1.9: Income Support for Carers

2016–17 2017–18 2018–19 2019–20 2020–21



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

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)



1.9.6 - Component 6 (Child Disability Assistance Payment)



1.9.7 - Component 7 (Wife Pension (DSP))


a 82,551 74,226 68,207 45,569 –


Total Program expenses 8,081,156 8,381,062 8,677,050 9,173,783 9,458,525 a



40


Program 1.10: Working Age Payments

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.10.1 - Component 1 (Compensation and Debt Relief)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 198 198 198 198

Total component 1 expenses – 198 198 198 198

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


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,592 20,190 30,938 27,158 200

Total component 2 expenses 1,592 20,190 30,938 27,158 200

1.10.3 - Component 3 (Newstart Allowance)


a 9,986,987 9,990,360 10,021,181 7,623,198 –

Total component 3 expenses 9,986,987 9,990,360 10,021,181 7,623,198 –

1.10.4 - Component 4 (Parenting Payment Partnered)



1.10.5 - Component 5 (Parenting Payment Single)



1.10.6 - Component 6 (Pensioner Education Supplement)



1.10.7 - Component 7 (Sickness Allowance)


a 95,810 64,533 61,391 58,511 1,344


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


41


Program 1.10: Working Age Payments (continued)

2016–17 2017–18 2018–19 2019–20 2020–21



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

1.10.8 - Component 8 (Widow Allowance)



1.10.9 - Component 9 (Youth Allowance (Other))



1.10.10 - Component 10 (Seasonal Work Incentives - Evaluation)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – – 326 – –

Total component 10 expenses – – 326 – –

1.10.11 - Component 11 (Partner Allowance)



1.10.12 - Component 12 (JobSeeker Payment)

Special appropriations Social Security (Administration) Act 1999 – – – 2,906,851 10,858,520

Total component 12 expenses – – – 2,906,851 10,858,520

1.10.13 - Component 13 (Social Impact Investment)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 994 1,836 1,939 2,908

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



42


Program 1.11: Student Payments

2016–17 2017–18 2018–19 2019–20 2020–21



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

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)





43



2016–17 2017–18 2018–19 2019–20 2020–21



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

1.12.1 - Component 1 (Departmental DSS - Outcome 1)

Annual departmental expenses

Departmental appropriation 92,027 99,642 85,703 81,003 78,544 s74 Retained revenue receipts

a 28,579 3,984 1,808 1,777 1,146


b 15,693 14,857 16,300 13,242 9,564



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

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 and amortisation expenses.


44

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

201718 Budget measures have created new programs or materially changed existing

programs.

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

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

Delivery DSS administers the program as part of the social security 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

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

Family Tax Benefit Part A (FTB Part A)

Family Tax Benefit Part B (FTB Part B)

Child Support Scheme

Agreement is in 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)

201819 and beyond As per 201718 As per 201718

Purpose

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


45

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.


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



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

Double Orphan Pension

Single Income Family Supplement

Stillborn Baby Payment

Assistance for Isolated Children



Outputs:


Number of children (Double Orphan Pension)



Purpose




46


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.


Payments are made through the Department of Human Services to eligible claimants under the provisions of social security law




Special Benefit



Outputs:



Payment accuracy


Purpose




47


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.


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




Bereavement Allowance

Payments under Special Circumstances



Outputs:




Purpose




48


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.


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




Low Income Supplement

Utilities Allowance

Essential Medical Equipment Payment



Outputs:

Number of recipients (Low Income Supplement, Utilities Allowance)

Number of payments (Essential Medical Equipment Payment)



Purpose




49


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.






Age Pension

Widow B Pension

Wife Pension (Age)



Outputs:



Payment accuracy (Age Pension)


Purpose




50


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.






Allowances and Concessions for Seniors



Outputs:




Purpose




51


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.






Disability Support Pension

Mobility Allowance



Outputs:



Payment accuracy (Disability Support Pension)


Purpose




52


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.



Ex-gratia payments to unsuccessful applicants of Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the PGPA Act




Carer Payment

Carer Allowance (Adult) and (Child)

Carer Supplement

Child Disability Assistance Payment

Wife Pension (DSP)



Outputs:



Payment accuracy (Carer Payment, Carer Allowance)


Purpose




53


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.






Newstart Allowance

Youth Allowance (Other)

Sickness Allowance

Parenting Payment

Partner Allowance

Widow Allowance



Outputs:



Payment accuracy


Purpose




54


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.


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



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

ABSTUDY

Austudy

Youth Allowance (student)

Student Startup Loans



Outputs:



Payment accuracy (ABSTUDY, Austudy, Youth Allowance (student))


Purpose




55


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



201718 Total departmental funding for Outcome 1

Funding is expended on activities that contribute to agency outcomes


Purpose




56


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.


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




Rent Assistance



Output:

Number of income units


Purposes


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


57



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


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



The administrative aspects of Income Management and payments under 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.


58


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


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.

Department of Home Affairs

Programs

Program 2.1 – Multicultural Affairs and Citizenship

Program 2.2 – Migration

Program 2.3 – Visas

Program 2.4 – Refugee and Humanitarian Assistance


The Department of Home Affairs has policy responsibility for the effective management of Australia's visa, multicultural affairs and citizenship, Skilled and Family Migration and Humanitarian Programs. DSS delivers settlement services to refugees and humanitarian migrants.


59



achieving the outcome, broken down by program, as well as by administered and

departmental funding sources.


2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Program 2.1: Families and Communities


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

a 673,658 707,091 699,200 678,264 643,536

Special appropriations Social Security (Administration) Act 1999 (26) 150 8 – – Commonwealth Redress Scheme for Institutional Child Sexual Abuse Bill 2017 – – nfp nfp nfp

Special Accounts Other Services - Services for Other Entities and Trust Moneys 14,035 22,274 6,863 3,400 3,400

Administered total 687,667 729,515 706,071 681,664 646,936


Program 2.2: Paid Parental Leave


Special appropriations Paid Parental Leave Act 2010 2,140,875 2,210,982 2,271,460 2,300,427 2,330,761

Administered total 2,140,875 2,210,982 2,271,460 2,300,427 2,330,761


Program 2.3: Social and Community Services


Special Accounts Social and Community Services Pay Equity Special Account 145,162 528,436 420,774 477,401 497,176




60



2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000



Departmental appropriationa 184,052 164,349 178,566 167,731 162,076


b 57,159 77,885 33,020 33,260 33,641


c 31,385 34,731 39,412 32,154 23,314

Departmental total 272,596 276,965 250,998 233,145 219,031



Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

a 673,658 707,091 699,200 678,264 643,536

Special appropriations 2,140,849 2,211,132 2,271,468 2,300,427 2,330,761

Special Accounts 159,197 550,710 427,637 480,801 500,576



Departmental appropriationa 184,052 164,349 178,566 167,731 162,076


b 57,159 77,885 33,020 33,260 33,641


c 31,385 34,731 39,412 32,154 23,314




61


Movement of administered funds between years

d

2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Outcome 2 Program 2.1: Families and Communities (34,490) 8,161 13,819 12,510 -

Total Movement of administered funds (34,490) 8,161 13,819 12,510 -

2016–17 2017–18 Average staffing level (number) 831 845 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change. a

Includes an interim s75 appropriation transfer to the Department of Home Affairs including forward estimates, with the final transfer to be reflected in the 2018-19 Portfolio Budget Statements.

b Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.

c ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation and amortisation expenses.

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


62


Program 2.1: Families and Communities

2016–17 2017–18 2018–19 2019–20 2020–21



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

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)





63


Program 2.1: Families and Communities (continued)

2016–17 2017–18 2018–19 2019–20 2020–21



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

2.1.6 - Component 6 (Settlement Services)



a 230,562 204,691 198,969 201,500 200,031


2.1.7 - Component 7 (Strengthening Communities)



b 31,316 44,244 47,783 41,368 35,931


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 (26) 150 8 – –

Total component 9 expenses (26) 150 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 14,036 22,274 6,863 3,400 3,400


a The Multicultural function within the Strengthening Communities component of Program 2.1 was transferred to the Department of Home Affairs as a result of the AAO of 20 December 2017.

b The Strengthening Communities component will cease on 31 March 2018 and be replaced by the redesigned Strong and Resilient Communities component from 1 April 2018. Volunteer Management and Volunteer Grants have been established as their own components from 1 January 2018.


64


Program 2.1: Families and Communities (continued)

2016–17 2017–18 2018–19 2019–20 2020–21



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

2.1.11 - Component 11 (Commonwealth Redress Scheme for Survivors of Institutional Child Sexual Abuse - Redress payment)

Special appropriations Commonwealth Redress Scheme for Institutional Child Sexual Abuse Bill 2017 – – nfp nfp nfp

Total component 11 expenses – – nfp nfp nfp

2.1.12 - Component 12 (Commonwealth Redress Scheme for Survivors of Institutional Child Sexual Abuse - Psychological Support payment)

Special appropriations Commonwealth Redress Scheme for Institutional Child Sexual Abuse Bill 2017 – – nfp nfp nfp

Total component 12 expenses – – nfp nfp nfp

2.1.13 - Component 13 (Volunteer Management)



c – 2,985 5,754 5,824 6,093

Total component 13 expenses – 2,985 5,754 5,824 6,093

2.1.14 - Component 14 (Volunteer Grants)



c – 10,000 10,000 10,000 10,000


Total Program expenses 687,669 729,515 706,071 681,664 646,936 c

Volunteer Grants and Volunteer Management were part of the Strengthening Communities component and have been established as their own components from 1 January 2018.


65


Program 2.2: Paid Parental Leave

2016–17 2017–18 2018–19 2019–20 2020–21



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

2.2.1 - Component 1 (Dad and Partner Pay)

Special appropriations Paid Parental Leave Act 2010 110,174 113,210 115,757 116,245 116,208


2.2.2 - Component 2 (Parental Leave Pay)

Special appropriations Paid Parental Leave Act 2010 2,030,702 2,097,772 2,155,703 2,184,182 2,214,553



Program 2.3: Social and Community Services

2016–17 2017–18 2018–19 2019–20 2020–21



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

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

Special Account expenses Social and Community Services Pay Equity Special Account

a 145,162 528,436 420,774 477,401 497,176


Total Program expenses 145,162 528,436 420,774 477,401 497,176 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.


66



2016–17 2017–18 2018–19 2019–20 2020–21



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



Departmental appropriation 184,052 164,349 178,566 167,731 162,076 s 74 Retained revenue receipts

a 57,159 77,885 33,020 33,260 33,641


b 31,385 34,731 39,412 32,154 23,314




Program support combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and ‘Revenue from independent sources (s 74)’.



67





programs.

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, humanitarian entrants, migrants and other individuals with special circumstances



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

support and capacity building that contribute to strengthening individual and family functioning and communities; or

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

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 to deliver services

Number of individuals assisted



Purpose

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



68


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




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.

Outputs:




Purpose




69


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



201718 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


Purpose




70





Year Performance criteria

Targets

2017-18 Total departmental funding for Outcome 2 Funding is expended on activities that contribute to agency outcomes


Purpose




71



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

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

Linked programs

Department of Jobs and Small Business

Program

Program 1.1 – Employment Services


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


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



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


72


National Disability Insurance Agency

Programs

Program 1.1 – Reasonable and necessary care and support participants

Program 1.2 – Community inclusion and capacity development grants


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


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.


73






2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Program 3.1: Disability Mental Health and Carers

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 976,431 1,111,804 1,120,703 1,097,858 1,093,908

Special appropriations Business Services Wage Assessment Tool Payment Scheme Act 2015

a – nfp nfp nfp nfp

Special Accounts National Disability Special Account 2,290 2,140 405 172 –

Administered total 978,721 1,113,944 1,121,108 1,098,030 1,093,908

Total expenses for Program 3.1 978,721 1,113,944 1,121,108 1,098,030 1,093,908

Program 3.2: National Disability Insurance Scheme

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 552,359 3,081,367 5,966,395 8,992,456 10,276,997

Administered total 552,359 3,081,367 5,966,395 8,992,456 10,276,997





b 24,007 5,990 3,354 3,177 3,484


c 13,182 16,846 16,680 13,428 9,621




74



2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000


Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,528,790 4,193,171 7,087,098 10,090,314 11,370,905

Special appropriationsa – nfp nfp nfp nfp

Special Accounts 2,290 2,140 405 172 –




b 24,007 5,990 3,354 3,177 3,484


c 13,182 16,846 16,680 13,428 9,621



Movement of administered funds between years

d

2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

Outcome 3:

Program 3.1: Disability Mental Health and Carers – (1,936) 1,936 – – Program 3.2 : National Disability Insurance Scheme – (1,448) 1,668 (220) –

Total movement of administered funds – (3,384) 3,604 (220) –

2016–17 2017–18

Average staffing level (number) 534 573

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 Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.

c ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation and amortisation

expenses. d

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


75


Program 3.1: Disability Mental Health and Carers

2016–17 2017–18 2018–19 2019–20 2020–21



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

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)

Special appropriations Business Services Wage Assessment Tool Payment Scheme Act 2015

a – nfp nfp nfp nfp

Total component 5 expenses – nfp nfp nfp nfp

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

Special Account Expenses: National Disability Special Account 2,290 2,140 405 172 –

Total component 6 expenses 2,290 2,140 405 172 –

Total Program expenses 978,723 1,113,944 1,121,108 1,098,030 1,093,908 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.


76


Program 3.2: National Disability Insurance Scheme

2016–17 2017–18 2018–19 2019–20 2020–21



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

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




3.2.2 - Component 2 (National Disability Insurance Scheme Research and Evaluation)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 966 650 – – –

Total component 2 expenses 966 650 – – –

3.2.3 - Component 3 (Sector Development Fund)


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

Total component 3 expenses – 40,962 12,000 3,000 –

3.2.4 - Component 4 (National Disability Insurance Scheme Participant Plans)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 2,476,075 5,434,075 8,773,089 10,104,649

Total component 4 expenses – 2,476,075 5,434,075 8,773,089 10,104,649

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


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 70,990 114,044 131,478 132,573


3.2.6 - Component 6 (Establishment of the NDIS Quality and Safeguards Commission)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) – 3,419 4,958 2,745 –

Total component 6 expenses – 3,419 4,958 2,745 –

Total Program expenses 552,358 3,081,367 5,966,395 8,992,456 10,276,997


77



2016–17 2017–18 2018–19 2019–20 2020–21



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




a 24,007 5,990 3,354 3,177 3,484


b 13,182 16,846 16,680 13,428 9,621







78





programs.

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



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

employment assistance and other services to people with disability

direct advocacy support to people with disability

support to carers

support through community based initiatives to assist people with, or at risk of, mental illness

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

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 to deliver services

Number of individuals assisted



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



79


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



Targets

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

developing and implementing policy settings for full scheme

implementing funding mechanisms for NDIS transitions

negotiating agreements with states and territories for full scheme

establishment of the NDIS Quality and Safeguards Commission

Timely and effective policy advice (including Quality and Safeguards) is provided for full 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





80






Targets






81


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


National Partnership Payments to the States under the National Partnership Agreement on Homelessness (NPAH), and the National Affordable Housing Specific Purpose Payment are made by the Treasury. Annual incentives under the National Rental Affordability Scheme (NRAS) are provided through tax offsets by the Australian Taxation Office.


82





Outcome 4: Housing

2016–17 2017–18 2018–19 2019–20 2020–21


Expenses estimated estimate estimate estimate

$'000 expenses $'000 $'000 $'000

$'000

Program 4.1: Housing and Homelessness

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,341 1,620 1,588 1,586 1,570



Program 4.2: Affordable Housing

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 84,487 84,535 84,736 81,729 75,788






a 4,573 1,087 665 633 576


b 2,511 3,056 3,309 2,674 1,920




83


Outcome 4: Housing

2016–17 2017–18 2018–19 2019–20 2020–21


Expenses estimated estimate estimate estimate

$'000 expenses $'000 $'000 $'000

$'000







a 4,573 1,087 665 633 576


b 2,511 3,056 3,309 2,674 1,920


Total expenses for Outcome 4 107,636 110,525 107,397 102,708 95,398

2016–17 2017–18 Average staffing level (number) 99 104 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.



84


Program 4.1: Housing and Homelessness

2016–17 2017–18 2018–19 2019–20 2020–21



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

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





Program 4.2: Affordable Housing

2016–17 2017–18 2018–19 2019–20 2020–21



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

4.2.1 - Component 1 (National Rental Affordability Scheme)






85



2016–17 2017–18 2018–19 2019–20 2020–21



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




a 4,573 1,087 665 633 576


b 2,511 3,056 3,309 2,674 1,920







86





programs.

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



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

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

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

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



87


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



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

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

Number of incentives issued for the relevant NRAS year (Cash payments and Refundable Tax Offsets (RTO))

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





88











89

Section 3: Special account flows and budgeted financial statements

3.1 SPECIAL ACCOUNT FLOWS

Estimates of special account flows

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

purposes. Table 3.1 shows the expected additions (receipts) and reductions (payments)

for each account used by the DSS.

Table 3.1: Estimates of special account flows and balances Outcome Opening Receipts Payments Adjustments Closing balance $'000 $'000 $'000 balance $'000 $'000

Other Services - Services for Other Entities and Trust Moneys (A) 2017-18

2.1

16,439 6,700 (22,274) – 865 Other Services - Services for Other Entities and Trust Moneys (A) 2016-17

23,629 10,058 (17,248) – 16,439 Social and Community Services Pay Equity Special Account (A) 2017-18

2.3

377,610 381,775 (528,436) – 230,949 Social and Community Services Pay Equity Special Account (A) 2016-17

202,195 320,578 (145,163) – 377,610 National Disability Research Special Account 2016 (A) 2017-18

3.1

3,376 – (2,140) – 1,236 National Disability Research Special Account 2016 (A) 2016-17

– – (2,087) 5,463 3,376 National Disability Special Account (A) 2017-18

3.1

– – – – – National Disability Special Account (A) 2016-17 5,667 – (204) (5,463) –

Total Special Accounts 2017–18 Budget estimate 397,425 388,475 (552,850) – 233,050

Total Special Accounts 2016–17 actual 231,491 330,636 (164,702) – 397,425

(A) = Administered


90

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

Departmental

Income and expenses

DSS is budgeting for a balanced operating result in 2017–18 before allowing for

unfunded depreciation expenses of $69.5 million. Under net cash funding

arrangements, asset replacement is funded through capital appropriations.

Total operating revenue for 2017–18 is estimated at $484.7 million while expenditure is

estimated to be $554.2 million, inclusive of unfunded depreciation. These budgeted

amounts are higher than in 2016–17, primarily due to the AAO of 20 December 2017

and Australian Government decisions and measures.

Balance sheet

DSS’ budgeted net asset position for 2017–18 is expected to be $226.7 million, which is

lower than 2016–17.

Administered

Income and expenses

DSS will administer the collection of non-taxation revenue estimated at $44.5 million in

2017–18, lower than 2016–17.

DSS will administer programs totalling $118.0 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

$5.6 billion, higher than in 2016–17.

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

be $6.4 billion, higher than 2016–17, primarily due to increased personal benefit

payable.


91

3.2.2 Budgeted financial statements

Table 3.2: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2016–17 2017–18 2018–19 2019–20 2020–21


$’000 Budget estimate estimate estimate

$’000 $’000 $’000 $’000

EXPENSES

Employee benefits 262,875 273,863 251,549 251,269 255,445

Supplier 215,525 206,297 150,371 128,677 112,924

Depreciation and amortisation 62,771 69,490 75,701 61,498 44,419 Write-down and impairment of assets 3,243 – – – –

Other expenses 780 4,506 4,493 4,486 4,522

Total expenses 545,194 554,156 482,114 445,930 417,310

LESS:

OWN-SOURCE INCOME

Own-source revenue Sale of goods and rendering of services 107,265 78,959 30,932 30,932 30,932

Rental Income 2,208 2,072 – – –

Other revenue 2,617 6,565 6,565 6,565 6,565

Total own-source revenue 112,090 87,596 37,497 37,497 37,497

Gains

Sale of assets 133 – – – –

Other gains 2,095 1,350 1,350 1,350 1,350

Total gains 2,228 1,350 1,350 1,350 1,350

Total own-source income 114,318 88,946 38,847 38,847 38,847

Net cost of/(contribution by) services 430,876 465,210 443,267 407,083 378,463

Revenue from Government 368,959 395,720 367,566 345,585 334,044

Surplus/(deficit) attributable to the Australian Government (61,917) (69,490) (75,701) (61,498) (44,419)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation reserves 4,636 – – – –

Total other comprehensive income 4,636 – – – –

Total comprehensive income/(loss) (57,281) (69,490) (75,701) (61,498) (44,419)

Total comprehensive income/(loss) attributable to the Australian Government (57,281) (69,490) (75,701) (61,498) (44,419)

Prepared on Australian Accounting Standard basis.


92

Table 3.2: 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



$’000 $’000 $’000 $’000

Surplus attributable to DSS 854 – – – –

Changes in asset revaluation reserves

4,636 – – – –

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations 5,490 – – – –

less depreciation/amortisation expenses previously funded through revenue appropriations

a 62,771 69,490 75,701 61,498 44,419

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (57,281) (69,490) (75,701) (61,498) (44,419)

Prepared on Australian Accounting Standard basis. a

From 201011, the Government introduced net cash appropriation arrangements where Appropriation Act (No.1) and Bill (No. 3) 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 Act (No.1) and Bill (No. 3) equity appropriations. For information regarding DCBs, please refer to Table 3.6 Departmental Capital Budget Statement.


93

Table 3.3: Budgeted departmental balance sheet (as at 30 June)

2016–17 2017–18 2018–19 2019–20 2020–21



$’000 $’000 $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 17,192 7,192 7,192 7,192 7,192

Trade and other receivables 111,166 94,451 77,805 72,675 69,736

Total financial assets 128,358 101,643 84,997 79,867 76,928

Non-financial assets

Leasehold Improvements 39,127 52,019 45,408 41,836 38,456

Property, plant and equipment 32,508 30,556 24,387 18,420 13,013

Intangibles 156,010 166,073 140,519 115,425 96,768

Other 26,397 26,397 26,397 26,397 26,397

Total non-financial assets 254,042 275,045 236,711 202,078 174,634

Assets held for sale 71 – – – –

Total assets 382,471 376,688 321,708 281,945 251,562

LIABILITIES

Payables

Suppliers 30,254 28,959 21,108 18,063 15,852

Other 41,113 36,776 34,776 32,776 30,776

Total payables 71,367 65,735 55,884 50,839 46,628

Provisions

Employee provisions 80,055 83,401 76,606 76,521 77,793

Other provisions 849 849 849 849 849

Total provisions 80,904 84,250 77,455 77,370 78,642

Total liabilities 152,271 149,985 133,339 128,209 125,270

Net assets 230,200 226,703 188,369 153,736 126,292

EQUITYa

Parent entity interest

Contributed equity 472,700 538,693 576,060 602,925 619,900

Reserves 72,335 72,335 72,335 72,335 72,335 Retained surpluses (accumulated deficit) (314,835) (384,325) (460,026) (521,524) (565,943)

Total parent entity interest 230,200 226,703 188,369 153,736 126,292

Total Equity 230,200 226,703 188,369 153,736 126,292

Prepared on Australian Accounting Standard basis. a ‘

Equity’ is the residual interest in assets after deduction of liabilities.


94

Table 3.4: Departmental statement of changes in equity – summary of movement (Budget Year 2017–18)

Retained Asset Contributed Total

earnings revaluation equity/ equity

$’000 reserve capital $'000

$'000 $'000

Opening balance as at 1 July 2017

Balance carried forward from previous period (314,835) 72,335 472,700 230,200

Adjusted opening balance (314,835) 72,335 472,700 230,200

Comprehensive income

Surplus/(deficit) for the period (69,490) – – (69,490)

Total comprehensive income (69,490) – – (69,490)

of which: Attributable to the Australian Government (69,490) – – (69,490)

Transactions with owners

Contributions by owners

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

Departmental Capital Budget (DCB) – – 25,581 25,581

Subtotal transactions with owners – – 65,993 65,993

Estimated closing balance as at 30 June 2018 (384,325) 72,335 538,693 226,703

Closing balance attributable to the Australian Government (384,325) 72,335 538,693 226,703



95

Table 3.5: Budgeted departmental statement of cash flows (for the period ended 30 June)

2016–17 2017–18 2018–19 2019–20 2020–21



$’000 $’000 $’000 $’000

OPERATING ACTIVITIES

Cash received

Appropriations 492,251 412,435 384,212 350,715 336,983

Goods and services 104,704 81,031 30,932 30,932 30,932

Other 27,953 6,565 6,565 6,565 6,565

Total cash received 624,908 500,031 421,709 388,212 374,480

Cash used

Employees 199,138 202,779 191,673 191,113 194,281

Other employee expenses 64,909 67,738 66,671 60,241 59,892

Suppliers 210,362 210,579 158,872 132,372 115,785

Other 105,414 4,506 4,493 4,486 4,522

Total cash used 579,823 485,602 421,709 388,212 374,480

Net cash from/(used by) operating activities 45,085 14,429 – – –

INVESTING ACTIVITIES

Cash received Proceeds from sales of property, plant and equipment 212 – – – –

Total cash received 212 – – – –

Cash used Purchase of property, plant, equipment and intangibles 103,666 90,422 37,367 26,865 16,975

Total cash used 103,666 90,422 37,367 26,865 16,975

Net cash from/(used by) investing activities (103,454) (90,422) (37,367) (26,865) (16,975)

FINANCING ACTIVITIES

Cash received Appropriations – contributed equity 70,486 65,993 37,367 26,865 16,975


Net cash from/(used by) financing activities 70,486 65,993 37,367 26,865 16,975

Net increase/(decrease) in cash held 12,117 (10,000) – – –

Cash and cash equivalents at the beginning of the reporting period 5,075 17,192 7,192 7,192 7,192

Cash and cash equivalents at the end of the reporting period 17,192 7,192 7,192 7,192 7,192



96

Table 3.6: Departmental capital budget statement

2016–17 2017–18 2018–19 2019–20 2020–21



$’000 $’000 $’000 $’000

NEW CAPITAL APPROPRIATIONS

Capital Budget – Appropriation Bill No. 1 (DCB) 53,071 25,581 16,549 16,596 16,693 Equity Injections – Appropriation Bill No. 2 34,835 40,412 20,818 10,269 282

Total new capital appropriations 87,906 65,993 37,367 26,865 16,975

Provided for: Purchase of non-financial assets 87,906 65,993 37,367 26,865 16,975

Total Items 87,906 65,993 37,367 26,865 16,975

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations

a 24,608 59,802 20,818 10,269 282

Funded by capital appropriations – DCB

b 50,138 30,620 16,549 16,596 16,693

Funded by lease incentive

28,920 – – – –

TOTAL 103,666 90,422 37,367 26,865 16,975

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 103,666 90,422 37,367 26,865 16,975

Total cash used to acquire assets 103,666 90,422 37,367 26,865 16,975


Includes both current Appropriation Bill (No. 4) 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).


97

Table 3.7: Statement of asset movements (2017–18)

Leasehold Property, Intangibles Other Total

improvements plant & $'000 $'000 $'000

$'000 equipment

$'000

As at 1 July 2017

Gross book value 44,267 43,127 295,011 26,397 408,802 Accumulated depreciation/ amortisation and impairment (5,140) (10,548) (139,001) – (154,689)

Opening net book balance 39,127 32,579 156,010 26,397 254,113

CAPITAL ASSET ADDITIONS

Estimated expenditure on new or replacement assets By purchase – appropriation equity

a 13,388 831 45,583 – 59,802

By purchase – appropriation ordinary annual services

b 5,700 7,623 17,297 – 30,620

Total additions 19,088 8,454 62,880 – 90,422

Other movements Depreciation/amortisation expense (6,196) (10,477) (52,817) – (69,490)

Total other movements (6,196) (10,477) (52,817) – (69,490)

As at 30 June 2018

Gross book value 63,355 51,581 357,891 26,397 499,224 Accumulated depreciation/ amortisation and impairment (11,336) (21,025) (191,818) – (224,179)

Closing net book balance 52,019 30,556 166,073 26,397 275,045


'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Act (No. 2) 2016-17.

b 'Appropriation ordinary annual services' refers to funding provided through Appropriation Act (No. 1) 201617 for depreciation/amortisation expenses, departmental capital budgets or other operational expenses.


98

Table 3.8: 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



$’000 $’000 $’000 $’000

EXPENSES

Grants 1,260,449 1,599,339 1,345,149 896,006 767,606

Subsidies 84,981 85,150 85,381 82,386 76,461

Personal benefits 109,503,446 110,524,402 112,940,365 117,466,403 120,589,931

Suppliers 971,638 1,104,633 1,071,552 1,053,632 1,036,111 Write down and impairment of assets 215,415 831,787 1,100,558 840,232 833,683

Borrowing costs – 12,304 13,302 13,776 14,271 Payments to corporate entities 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200

Other 148,640 2,768,217 5,828,570 9,326,827 10,712,193

Total expenses administered on behalf of Government 113,783,035 117,976,811 123,865,325 130,949,482 135,238,456

LESS:

OWN-SOURCE INCOME

Own-source revenue

Non-taxation revenue

Interest 1,528 21,827 41,800 51,956 56,324 Other sources of nontaxation revenues 77,042 22,640 33,506 31,072 29,352

Total non-taxation revenue 78,570 44,467 75,306 83,028 85,676

Total own-source revenue administered on behalf of Government 78,570 44,467 75,306 83,028 85,676

Total own-source income administered on behalf of Government 78,570 44,467 75,306 83,028 85,676

Net Cost of services 113,704,465 117,932,344 123,790,019 130,866,454 135,152,780

Surplus/(deficit) (113,704,465) (117,932,344) (123,790,019) (130,866,454) (135,152,780)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus 691,711 – – – –


Total comprehensive income/(loss) (113,012,754) (117,932,344) (123,790,019) (130,866,454) (135,152,780)



99

Table 3.9: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

2016–17 2017–18 2018–19 2019–20 2020–21



$’000 $’000 $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 403,275 238,900 264,726 297,074 376,362

Receivables 4,249,182 4,068,255 4,465,682 4,533,794 4,696,625

Investments 934,471 863,503 970,323 978,171 988,833

Total financial assets 5,586,928 5,170,658 5,700,731 5,809,039 6,061,820


Other non-financial assets – 436,204 442,788 460,700 475,487

Total non-financial assets – 436,204 442,788 460,700 475,487

Total assets administered on behalf of Government 5,586,928 5,606,862 6,143,519 6,269,739 6,537,307

LIABILITIES

Payables

Suppliers 56,086 56,086 56,086 56,086 56,086

Subsidies 60,727 69,199 74,676 78,461 80,148

Personal benefits payable 1,657,644 2,030,554 2,180,295 2,541,584 2,519,929

Grants 15,446 14,391 13,334 13,334 13,334

Other payables 6,246 6,246 6,246 6,246 6,246

Total payables 1,796,149 2,176,476 2,330,637 2,695,711 2,675,743

Provisions

Personal benefits provision 4,229,821 4,225,472 4,110,018 3,935,037 3,717,042

Total provisions 4,229,821 4,225,472 4,110,018 3,935,037 3,717,042

Total liabilities administered on behalf of Government 6,025,970 6,401,948 6,440,655 6,630,748 6,392,785

Net assets/(liabilities) (439,042) (795,086) (297,136) (361,009) 144,522



100

Table 3.10: Schedule of budgeted administered cash flows (for the period ended 30 June)

2016–17 2017–18 2018–19 2019–20 2020–21 Actual Revised Forward Forward Forward


$’000 $’000 $’000 $’000


Cash received

Interests 1,675 23,769 36,554 54,520 49,578

Other 1,251,496 1,099,870 1,446,520 1,837,166 1,932,085

Total cash received 1,253,171 1,123,639 1,483,074 1,891,686 1,981,663

Cash used

Grant payments 1,728,144 1,600,396 1,349,636 896,006 767,606

Subsidies paid 105,414 83,979 84,752 82,811 78,408

Personal benefits 112,260,103 112,180,254 115,405,355 119,847,989 123,560,152

Suppliers 1,066,023 1,104,633 1,071,555 1,056,690 1,039,169 Payment to corporate entities 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200

Other 150,733 2,767,003 5,828,538 9,326,827 10,712,193

Total cash used 116,908,883 118,787,244 125,220,284 132,480,543 137,365,728

Net cash from/(used by) operating activities (115,655,712) (117,663,605) (123,737,210) (130,588,857) (135,384,065)


Cash received

Repayments of loans and advances 63,036 45,238 45,238 45,238 45,238


Cash used

Advances and loans made 115,123 251,080 271,478 281,138 291,238

Other Investing 116,197 – 106,820 7,848 10,662

Total cash used 231,320 251,080 378,298 288,986 301,900

Net cash from/(used by) investing activities (168,284) (205,842) (333,060) (243,748) (256,662)

Net increase/(decrease) in cash held (115,823,996) (117,869,447) (124,070,270) (130,832,605) (135,640,727)

Cash and cash equivalents at beginning of reporting period 237,782 403,275 238,900 264,726 297,074

Cash from Official Public Account for:

– Appropriations 116,975,061 118,875,879 125,622,708 132,813,009 137,758,048 Cash to Official Public Account for:

– Appropriations (985,572) (1,170,807) (1,526,612) (1,948,056) (2,038,033)

Cash and cash equivalents at end of reporting period 403,275 238,900 264,726 297,074 376,362


101




ENTITY ADDITIONAL ESTIMATES

STATEMENTS

102

103


Section 1: Entity overview and resources .............................................................. 105

1.1 Strategic direction statement ................................................................................. 105

1.2 Entity resource statement ..................................................................................... 106

1.3 2017-18 measures since Budget .......................................................................... 109

1.4 Additional estimates, resourcing and variations to outcomes ............................... 110

1.5 Breakdown of additional estimates by Appropriation Bill ...................................... 111

Section 2: Revisions to outcomes and planned performance ............................. 112

2.1 Budgeted expenses and performance for Outcome 1 .......................................... 112

Section 3: Budgeted financial statements .............................................................. 118

3.1 Budgeted financial statements .............................................................................. 118

104

105


Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

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

There have been no significant changes to our key areas of focus since Budget

National Disability Insurance Agency Additional Estimates Statements

106

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Agency at Additional

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

2017-18 Budget year, including variations through Appropriation Bills No. 3 and No. 4,

Special Appropriations and Special Accounts.


107

Table 1.1: National Disability Insurance Agency resource statement – additional estimates for 2017–18 as at Additional Estimates, February 2018




2016–17 2017–18 2017–18 Estimates

$'000 $'000 $'000 2017–18

$'000

Opening balance/cash reserves at 1 July 306,430 647,805 680,482 1,328,287

Funds from Government Annual appropriations - ordinary annual services

a

Outcome 1 1,598,466 1,026,117 24,862 1,050,979

Annual appropriations - other servicesb

Equity injection 116,197 – – –

Total annual appropriations 1,714,663 1,026,117 24,862 1,050,979

Payments from related entities

Amounts from portfolio departmentc, f

– 2,700,151 (150,838) 2,549,313

Total amounts received from related entities – 2,700,151 (150,838) 2,549,313

Total funds from Government 1,714,663 3,726,268 (125,976) 3,600,292

Funds from other sources

Interest 13,802 – – – Contributions from state and territory governments

d, f

1,376,526 3,913,776 (119,676) 3,794,100

Resources received free of chargee, f

477,472 1,500,021 (58,160) 1,441,861

Other 7,491 – 5,734 5,734

Total funds from other sources 1,875,291 5,413,797 (172,102) 5,241,695

Total net resourcing for the National Disability Insurance Agency 3,896,384 9,787,870 382,404 10,170,274

2016-17 2017-18

Average staffing level (number) 1,872 2,460

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 NDIA is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Department of Social Services, as responsible noncorporate Commonwealth entity (NCCE), which are then paid to the NDIA and are considered 'departmental' for all purposes. a Appropriation Act (No. 1) 2017–18 and Appropriation Bill (No.3) 2017–18.

b Appropriation Act (No. 2) 2017–18 and Appropriation Bill (No.4) 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.

f The net reduction in revenue received from the Commonwealth, state and territory governments is due to

slower uptake in participants than budgeted.


108

Table 1.1: National Disability Insurance Agency resource statement – additional estimates for 2017–18 as at Additional Estimates, February 2018 (continued)

Third party payments from and on behalf of other entities




2016–17 2017–18 2017–18 Estimates

$'000 $'000 $'000 2017–18

$'000

Payments made to other entities for the provision of services 75,518 74,959 – 74,959


109

1.3 2017-18 MEASURES SINCE BUDGET

Table 1.2 summarises new government measures taken since the 2017–18 Budget.

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

program identified.

Table 1.2: National Disability Insurance Agency 2017–18 measures since Budget Program 2017–18 2018–19 2019–20 2020–21

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

Revenue measure


1.1, 1.2, 1.3

Departmental revenues 36,798 140,643 205,542 41,097

Total 36,798 140,643 205,542 41,097

Total revenue measure

Departmental 36,798 140,643 205,542 41,097

Total 36,798 140,643 205,542 41,097

Expense measures


1.1, 1.2, 1.3

Departmental expenses 109,186 445,125 782,068 1,121,197

Total 109,186 445,125 782,068 1,121,197

Total expense measures

Departmental 109,186 445,125 782,068 1,121,197

Total 109,186 445,125 782,068 1,121,197

Prepared on a Government Finance Statistics (fiscal) basis. Funding for expenses under Programs 1.1 and 1.2 is drawn down from the Department of Social Services which is directly appropriated the funding.


110

1.4 ADDITIONAL ESTIMATES, RESOURCING AND VARIATIONS TO

OUTCOMES

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

Estimates, by outcome. Table 1.3 details the Additional Estimates resulting from new

measures and other variations since the 2017–18 Budget in Appropriation Bills Nos. 3

and 4.

Table 1.3: Additional estimates and variations to outcomes from measures since 2017-18 Budget Program

impacted 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000

Outcome 1

Departmental



1.3

16,562 89,531 126,945 111,519

Other Variations 1.3 8,300 – – –

Net impact on estimates for Outcome 1 (departmental) 24,862 89,531 126,945 111,519

Total net impact on appropriations for Outcome 1 24,862 89,531 126,945 111,519


111

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION

BILL

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

Appropriation Bill Nos. 3 and 4.


2016-17

Available $'000

2017-18 Budget

$'000

2017-18 Revised

$'000

Additional Estimates

$'000

Reduced Estimates

$'000

Departmental 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.

1,598,466 1,026,117 1,050,979 24,862 –

Total departmental 1,598,466 1,026,117 1,050,979 24,862 –

Total administered and departmental 1,598,466 1,026,117 1,050,979 24,862 –

The 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.


112

Section 2: Revisions to outcomes and planned performance


Outcome 1:

To implement a National Disability Insurance Scheme that provides individual control

and choice in the delivery of reasonable and necessary case 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


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.


Program



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.


113

Table 2.1.1: Budgeted expenses and resources 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.

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.

2016–17 2017–18 2018–19 2019–20 2020–21



$'000 expenses $'000 $'000 $'000

$'000

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 – 2,478,323 5,483,790 8,953,018 10,354,240 Contributions from state and territory governments – 3,794,100 7,469,066 8,655,110 8,876,245 Revenues from other independent sources

a 1,243,042 1,441,861 2,062,301 1,744,506 1,845,197


Program 1.2: Community inclusion and capacity development grants

Revenue from Government Ordinary annual services (Appropriation Act No. 1) 33,284 – – – –

Payment from related entities – 70,990 114,044 131,478 132,573


Program 1.3: Agency costs

Revenue from Government Ordinary annual services (Appropriation Act No. 1) 691,801 1,050,979 1,480,448 1,270,220 1,208,200

Revenues from other independent sources

a 15,181 5,734 – – –



114

Table 2.1.1: Budgeted expenses and resources for Outcome 1 (continued)

2016–17 2017–18 2018–19 2019–20 2020–21



expenses

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

Outcome 1 totals by resource type

Revenue from Government Ordinary annual services (Appropriation Act No. 1) 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200

Payment from related entities – 2,549,313 5,597,834 9,084,496 10,486,813 Contributions from state and territory governments – 3,794,100 7,469,066 8,655,110 8,876,245 Revenues from other independent sources

a 1,258,223 1,447,595 2,062,301 1,744,506 1,845,197


2016–17 2017–18 Average staffing level (number) 1,872 2,460 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as Government priorities change. 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.


115

Table 2.1.2: Performance criteria for Outcome 1


Outcome 1. It is to be used by entities to describe the results they plan to achieve with

the resources provided for new programs, or materially changed existing programs

resulting from decisions made since the 2017-18 Budget.

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.



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.

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

Purpose 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.



116

Table 2.1.2: Performance criteria for Outcome 1 (continued)

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.



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.


Purpose 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.



117

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.



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.


Purposes

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.



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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 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 $7.8 billion in 2017-18. Participant plan and grant expenses

continue to increase across the forward estimates as further participants join the

Scheme, rising to $21.2 billion in 2020-21.

In December 2017, the Commonwealth and the Western Australian Government

announced the agreement to bring Western Australia into the National Disability

Insurance Scheme, making it a truly national scheme.

The growth in supplier expenses, which represents the largest component of Agency

operating costs, from $262.7 million in 2016-17 to $775.6 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 $1.2 billion

before reducing as the NDIS moves from the transition phase to full scheme. Similarly,

employee benefit expenses increase to $268.1 million in 2017-18 and $294.3 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 $1.4 billion in 2016-17 to $6.3 billion

in 2017-18 and further increasing to $19.4 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


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sale of goods and services expense in 2017-18 and over the forward estimates when

compared to the previous budget.

The Agency receives services provided in-kind to participants on behalf of the

Australian Government and state and territory governments, reflected as resources

received free of charge. This revenue rises from $477.5 million in 2016-17 to $1.4 billion

in 2017-18 and increases over the forward estimates, as the number of NDIS

participants who are receiving these supports increases.

The Agency had an operating surplus of $620.7 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.

Balance sheet

The Agency had a net asset position of $862.5 million in 2016-17 as this position is

forecasted to continue for the foreseeable future.

Total assets in 2017-18 are forecast to be $1.6 billion, comprised of $1.5 billion in

financial assets and $96.1 million in non-financial assets. The most significant asset is

cash of $1.3 billion which will be used to fund payments for reasonable support as well

as the Agency’s operations. Total liabilities are expected to be $752.6 million,

comprised primarily of $130.8 million in supplier payables, $505.6 million in

participant plan provisions and $45.7 million in unpaid employee entitlements.

The remaining amounts relate to $64.0 million as a provision for makegood and

$6.4 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 $2.9 billion

in 2016-17 to $7.3 billion in 2017-18, rising to $19.7 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.

Capital budget statement

The Agency will invest $70.2 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.


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3.1.2 Budgeted financial statements

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



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

EXPENSES

Employee benefits 175,013 268,132 294,342 292,962 298,500

Suppliers 262,653 775,557 1,153,871 944,289 875,729

Community partnership costs 125,687 – – – –

Grants 39,104 – – – –

Participant plan expenses 2,238,147 7,785,274 15,129,202 19,484,113 21,208,255

Depreciation and amortisation 8,718 13,024 32,234 32,968 33,971

Finance costs 444 – – – – Write-down and impairment of assets 6,923 – – – –

Total expenses 2,856,689 8,841,987 16,609,649 20,754,332 22,416,455

LESS:

OWN-SOURCE INCOME

Own-source revenue Revenue from rendering of services 1,382,615 6,343,413 13,066,900 17,739,606 19,363,058

Interest 13,802 – – – –

Other 1,379 5,734 – – –

Total own-source revenue 1,397,796 6,349,147 13,066,900 17,739,606 19,363,058

Gains

Other gains 477,495 1,441,861 2,062,301 1,744,506 1,845,197

Total gains 477,495 1,441,861 2,062,301 1,744,506 1,845,197

Total own-source income 1,875,291 7,791,008 15,129,201 19,484,112 21,208,255

Net (cost of)/contribution by services (981,398) (1,050,979) (1,480,448) (1,270,220) (1,208,200)

Revenue from Government 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200

Surplus/(deficit) attributable to the Australian Government 617,068 –

– – –

OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 3,675 – – – –


Total comprehensive income/(loss) attributable to the Australian Government 620,743 – – – –



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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



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

ASSETS

Financial assets

Cash and cash equivalents 1,328,287 1,310,487 1,373,886 1,390,237 1,418,959

Trade and other receivables 204,862 208,566 210,909 209,020 208,283

Total financial assets 1,533,149 1,519,053 1,584,795 1,599,257 1,627,242


Land and buildings 33,900 91,362 166,975 141,868 118,559

Property, plant and equipment 391 89 62 49 49

Other non-financial assets 4,617 4,617 4,617 4,617 4,617

Total non-financial assets 38,908 96,068 171,654 146,534 123,225

Total assets 1,572,057 1,615,121 1,756,449 1,745,791 1,750,467

LIABILITIES

Payables

Suppliers 106,792 130,786 154,612 135,402 127,910

Other payables 4,233 6,443 8,132 8,810 9,301

Total payables 111,025 137,229 162,744 144,212 137,211

Provisions

Employee provisions 35,563 45,713 54,192 53,695 53,998

Participant plan provisions 505,604 505,604 505,604 505,604 505,604

Other provisions 57,339 64,049 64,563 65,086 65,798

Total provisions 598,506 615,366 624,359 624,385 625,400

Total liabilities 709,531 752,595 787,103 768,597 762,611

Net assets 862,526 862,526 969,346 977,194 987,856

EQUITYa

Parent entity interest

Contributed equity 205,733 205,733 312,553 320,401 331,063

Reserves 5,556 5,556 5,556 5,556 5,556

Retained surplus (accumulated deficit) 651,237 651,237 651,237 651,237 651,237

Total parent entity interest 862,526 862,526 969,346 977,194 987,856

Total Equity 862,526 862,526 969,346 977,194 987,856


Equity is the residual interest in assets after the 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

$'000 reserve $'000 capital $'000

$'000 $'000

Opening balance as at 1 July 2017

Balance carried forward from previous period 651,237 5,556 – 205,733 862,526

Adjusted opening balance 651,237 5,556 – 205,733 862,526

Comprehensive income

Surplus/(deficit) for the period – – – – –

Total comprehensive income – – – – –

of which:

Estimated closing balance as at 30 June 2018

651,237 5,556 – 205,733 862,526

Closing balance attributable to the Australian Government

651,237 5,556 – 205,733 862,526



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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

actual $'000 estimate estimate estimate

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


Cash received

Receipts from Government 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200 State and territory government contributions 1,256,873 6,184,296 12,628,077 17,036,094 18,365,292

Interest received 13,237 – – – –

Net GST received 27,990 80,847 105,679 89,818 82,096

Other 938 – – – –

Total cash received 2,897,504 7,316,122 14,214,204 18,396,132 19,655,588

Cash used

Employees benefit 162,812 262,188 285,400 291,793 297,320

Suppliers expenses 211,681 834,314 1,170,505 922,257 798,305

Community partnership costs 134,697 – – – –

Participant plan expenses 1,457,486 6,172,969 12,693,900 17,165,731 18,531,241

Grant payment 42,206 – – – –

Total cash used 2,008,882 7,269,471 14,149,805 18,379,781 19,626,866

Net cash from/(used by) operating activities 888,622 46,651 64,399 16,351 28,722


Cash received Proceeds from sales of long-term deposits

33,194 5,734 – – –

Total cash received 33,194 5,734 – – –

Cash used Purchase of property, plant, equipment and intangibles 16,156 70,185 107,820 7,848 10,662

Total cash used 16,156 70,185 107,820 7,848 10,662

Net cash from/(used by) investing activities 17,038 (64,451) (107,820) (7,848) (10,662)

FINANCING ACTIVITIES

Cash received – – – – – Corporate Commonwealth entity payment 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 1,021,857 (17,800) 63,399 16,351 28,722

Cash and cash equivalents at the beginning of the reporting period 306,430 1,328,287 1,310,487 1,373,886 1,390,237

Cash and cash equivalents at the end of the reporting period 1,328,287 1,310,487 1,373,886 1,390,237 1,418,959



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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 $'000 estimate estimate estimate

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

NEW CAPITAL APPROPRIATIONS

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 16,156 – 106,820 7,848 10,662

Total Items 16,156 – 106,820 7,848 10,662

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriationa 16,156 70,185 107,820 7,848 10,662

TOTAL 16,156 70,185 107,820 7,848 10,662

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 16,156 70,185 107,820 7,848 10,662

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 16,156 70,185 107,820 7,848 10,662


Includes both current and prior Bill No. 4 and prior Act No. 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

$'000 plant and software and $'000

equipment intangibles

$'000 $'000

As at 1 July 2017

Gross book value 34,300 2,399 1,888 38,587 Accumulated depreciation/ amortisation and impairment (400) (2,009) (1,888) (4,297)

Opening net book balance 33,900 390 – 34,290

CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets

By purchase – appropriation equity

a 70,185 – – 70,185

Total additions 70,185 – – 70,185

Other movements Depreciation/amortisation expense (12,723) (301) – (13,024)

Total other movements (12,723) (301) – (13,024)

As at 30 June 2018

Gross book value 104,485 2,399 1,888 108,772 Accumulated depreciation/ amortisation and impairment (13,123) (2,310) (1,888) (17,321)

Closing net book balance 91,362 89 – 91,451


"Appropriation equity" refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Act (No. 2) 2017-2018 and Bill (No. 4) 2017-2018, including Collection Development Acquisition Budgets (CDABs).

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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 Bills (No. 3 and No. 4)

If an amount provided in Appropriation Acts (No. 1 or No. 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or No. 4). Once these Bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (No. 3 and No. 4). However, they are also commonly referred to as the Additional Estimates Bills.

assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

Glossary

127

average staffing level (ASL) The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Consolidated Revenue Fund

The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government form one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

cross-portfolio budget measure

A budget measure that affects 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.

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.

Glossary

128

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.

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.

Glossary

129

Public Governance, Performance and Accountability Act 2013

The primary piece of Commonwealth resource management legislation, establishing a coherent system of governance and accountability for public resources, with an emphasis on planning, performance and reporting. The Act applies to all Commonwealth entities and Commonwealth companies from 1 July 2014.

receipts The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and government business enterprise dividends received.

revenue Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.

special accounts Balances existing within the CRF that are supported by standing appropriations (PGPA Act sections 78 and 80). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (PGPA Act, section 78) or through an Act of Parliament (referred to in section 80 of the PGPA Act).

special appropriation (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.

Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.

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ABBREVIATIONS

AAO Administrative Arrangements Order

AIFS Australian Institute of Family Studies

BSWAT Business Services Wage Assessment Tool

CRF Consolidated Revenue Fund

DCB Departmental Capital Budget

DHS Department of Human Services

DSP Disability Support Pension

DSS Department of Social Services

FTB

MYEFO

Family Tax Benefit

Mid-Year Economic and Fiscal Outlook

NAHA National Affordable Housing Agreement

NAHSPP National Affordable Housing Specific Purpose Payment

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

Documents

Portfolio Additional Estimates Statements 2017 18 · The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) and Appropriation (Parliamentary