Abbreviations and conventions - Department of Social Services ...€¦ · Web viewThe purpose of the 201718 Portfolio Additional Estimates Statements (PAES), like that of the Portfolio

Portfolio AdditionalEstimates 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 MPMinister for Social Services

PARLIAMENT HOUSECANBERRA 2600

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the2017–18 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

The Hon Dan Tehan MP

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nfp not for publication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.

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

USER GUIDETO THE

PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS

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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.

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User guide

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio Overview

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

Entity Additional Estimates Statements

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

Section 1: Entity overview and resources

This section details the 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

Explains key terms and acronyms relevant to the portfolio

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CONTENTS

Portfolio overview........................................................................................................1Social Services portfolio overview..................................................................................3

Entity Additional Estimate Statements.......................................................................7Department of Social Services.......................................................................................9National Disability Insurance Agency.........................................................................101

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

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

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10

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

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SOCIAL SERVICES PORTFOLIO OVERVIEW

This document provides information about the changes within the Social Services Portfolio since the publication of the 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

Minister for Social ServicesThe Hon Christian Porter MP

Minister for Social ServicesThe Hon Dan Tehan MP

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

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

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

Assistant Minister for Children and FamiliesThe 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.

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Portfolio overview

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.

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Portfolio overview

Figure 1: Social Services portfolio structure and outcomesMinister for Social Services

The Hon Dan Tehan MPAssistant Minister for Social Services and Disability Services

The Hon Jane Prentice MPAssistant Minister for Children and Families

The Hon Dr David Gillespie MP

Department of Social ServicesSecretary: Ms Kathryn Campbell CSC

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

Australian Institute of Family StudiesDirector: Ms Anne Hollonds

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

National Disability Insurance AgencyChief Executive Officer: Mr 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.

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SOCIAL SERVICESADDITIONAL ESTIMATES

STATEMENTS

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

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

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ENTITY ADDITIONAL ESTIMATES STATEMENTS

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Section 1: Entity overview and resources.............................................................. 131.1 Strategic direction statement................................................................................. 131.2 Entity resource statement...................................................................................... 151.3 2017-18 measures since Budget........................................................................... 191.4 Additional estimates, resourcing and variations to outcomes.................................231.5 Breakdown of additional estimates by Appropriation Bill........................................27

Section 2: Revisions to outcomes and planned performance...............................282.1 Budgeted expenses and performance for Outcome 1............................................282.2 Budgeted expenses and performance for Outcome 2............................................572.3 Budgeted expenses and performance for Outcome 3............................................712.4 Budgeted expenses and performance for Outcome 4............................................81

Section 3: Special account flows and budgeted financial statements..................893.1 Special account flows.............................................................................................893.2 Budgeted financial statements...............................................................................90

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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.

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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.

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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.

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

Actual Estimate Proposed Totalavailable as at Additional estimate at

appropriation Budget Estimates Additional2016–17 2017–18 2017–18 Estimates

$'000 $'000 $'000 2017–18$'000

DepartmentalAnnual appropriations - ordinary annual servicesa

Prior year appropriations availableb 128,127 101,405 26,953 128,358Departmental appropriationc 368,959 407,630 (11,910) 395,720s 74 Retained revenue receiptsd 104,646 37,497 50,099 87,596Departmental capital budgete 53,071 16,614 8,967 25,581

Annual appropriations - other services -non-operatingf

Equity injections 34,835 40,412 – 40,412Total departmental annual appropriations 689,638 603,558 74,109 677,667Total departmental resourcing 689,638 603,558 74,109 677,667AdministeredAnnual appropriations - ordinary annual servicesa

Outcome 1 31,277 25,548 – 25,548Outcome 2c 756,168 695,264 11,827 707,091Outcome 3 1,639,642 4,331,634 (138,463) 4,193,171Outcome 4 86,423 86,839 (684) 86,155Payments 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) 6,062,944Special appropriations

Social Security (Administration) Act 1999 89,665,166 89,914,972 (187,102) 89,727,870A New Tax System(Family Assistance)(Administration) Act 1999 20,200,088 19,251,398 (99,620) 19,151,778Paid Parental Leave Act 2010 2,152,101 2,234,280 (23,298) 2,210,982Student Assistance Act 1973 346,600 337,554 536 338,090Public Governance, Performance and Accountability Act 2013 9,313 – – –Business Services Wage Assessment Tool Payment Scheme Act 2015h 10,199 nfp nfp nfp

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

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



$'000 $'000 $'000 2017–18$'000

Special accountsi

Opening balance 231,491 193,613 203,812 397,425Appropriation receiptsj 325,061 386,870 (95) 386,775Non–appropriated receipts 5,575 1,705 (5) 1,700

Total special accounts receipts 562,127 582,188 203,712 785,900less administered appropriations drawn from annual/special appropriations and credited to special accounts 325,061 386,870 (95) 386,775less payments to corporate entities from annual/special appropriations 1,714,663 1,026,117 24,862 1,050,979Total administered resourcing 115,134,043 117,072,807 (232,997) 116,839,810Total resourcing for DSS 115,823,681 117,676,365 (158,888) 117,517,477

2016–17 2017–18Average staffing level (number) 1,979 1,995Note: 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.

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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 entitiesActual Estimate Proposed Total

Payments as at Additional estimate at2016–17 Budget Estimates Additional

$'000 2017–18 2017–18 Estimates$'000 $'000 2017–18

$'000Payments 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) 90,556,418Special appropriations – A New Tax System (Family Assistance) (Administration) Act 1999 20,199,502 19,499,677 (185,848) 19,313,829Special appropriations – Paid Parental Leave Act 2010 2,152,101 2,239,894 (33,391) 2,206,503Special appropriations – Student Assistance Act 1973 346,600 350,336 (3,228) 347,108Annual 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) 4Special 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 1,050,979Note: 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.

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

$'000 $'000 $'000 $'000Revenue MeasureHigher Education Reforms - revised implementationa 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

Departmental expenses – – – –Total – 4,541 894 674Total revenue measures

Administered – 4,541 894 674

Departmental – – – –Total – 4,541 894 674Expense measuresNo Jab No Pay and Healthy Start for School - strengthening compliance arrangements

1.1

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

Departmental expenses – – – –Total – (1,039) (2,636) (4,170)Support for Veterans' Mental Health - additional fundingb

1.1, 1.8, 1.9, 1.10

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

Departmental expenses – – – –Total (167) (2,485) (2,601) (2,756)Social Services Legislation Amendment (Welfare Reform) Bill 2017 - amendments

1.10

Administered expenses – – 9 31

Departmental expenses – – – –Total – – 9 31Higher Education Reforms - revised implementationa 1.11

Administered expenses – – – –Departmental expenses – – – –

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

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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 –Departmental expenses – – – –

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 17,376Departmental expenses – – – –

Total – 20,308 16,939 17,376Disability Employment Services - encouraging better employment outcomes

3.1, 3.3

Administered expenses – (2,093) (2,093) (2,093)Departmental expenses – 574 376 417

Total – (1,519) (1,717) (1,676)DisabilityCare Australia Fund - initial payments 3.2

Administered expenses – – – –Departmental expenses – – – –

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

3.3

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

Total 368 2,590 1,787 1,347Cross-OutcomeFamily Tax Benefit - broadening debt repayment

Outcome 1

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

1.10, 1.11

Administered expenses – (18,490) (106,485) (96,967)

Departmental expenses – – – –Outcome 2 2.2

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

Departmental expenses – – – –Total – (18,520) (106,656) (97,123)Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Program 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, 1.11Administered expenses – 43,928 218,011 405,689Departmental expenses – – – –

Outcome 2 2.2Administered expenses – – – –Departmental expenses – – – –

Outcome 3 3.1Administered expenses – (709) (2,405) (3,423)Departmental expenses – – – –

Total – 43,219 215,606 402,266Encouraging Self-Sufficiency for Newly Arrived Migrants

Outcome 11.1, 1.3, 1.9, 1.10, 1.11, 1.12

Administered expenses – (106,404) (321,432) (612,402)Departmental expenses 1,160 556 – –

Outcome 2 2.2Administered expenses – (18,544) (88,591) (134,298)Departmental expenses – – – –

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

Administered expenses – (41,400) (80,953) (189,015)Departmental expenses – – – –

Outcome 2 2.2Administered expenses – – – (9,448)Departmental expenses – – – –

Total – (41,400) (80,953) (198,463)Rollout of National Disability Insurance Scheme in Western Australia - revised implementation arrangementsOutcome 1 1.8

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

Outcome 3 3.1, 3.2Administered expenses 1,356 2,820 1,866 168Departmental expenses – – – –

Total 379 (236) (4,621) (9,231)Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Program 2017–18 2018–19 2019–20 2020–21$'000 $'000 $'000 $'000

Cross-Outcome (continued)Treatment Support Services for the Drug Testing TrialOutcome 1 1.12

Administered expenses – – – –Departmental expenses 46 392 226 –

Outcome 2 2.1, 2.4Administered 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 1,764Total (8,079) (112,542) (363,293) (639,099)Capital measuresNational Disability Insurance Scheme Quality and Safeguards Commission - national worker screening database

3.3

Administered expenses – – – –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.

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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 2020–21impacted $'000 $'000 $'000 $'000

Outcome 1Departmental

Annual appropriationsTreatment 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 195Other 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)

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


Outcome 2Administered

Annual appropriationsTreatment 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 17,376Children 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) – – –Changes in Parameters(net increase) 2.1, 2.2 – 294 26 499Other Variationsa

(net increase) 2.1 13,044 12,935 13,010 11,680(net decrease) 2.1 – (416) (422) (13,072)

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

Annual appropriationsTreatment Support Services for the Drug Testing Trial 2.4 (487) (343) (306) –Changes in Parameters(net increase) 2.4 – 148 127 242Other 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 appropriationsfor Outcome 2 (departmental) (1,717) 4,022 5,594 5,105Total 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.

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Annual appropriationsDisability 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 168Movement of Funds(net increase) 3.1 – 3,604 – –(net decrease) 3.1 (3,384) – (220) –Changes in Parameters(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 appropriationsfor Outcome 3 (administered) (138,463) 159,865 397,967 875,792Outcome 3Departmental

Annual appropriationsNational Disability Insurance Scheme Quality and Safeguards Commission – national worker screening database 3.3 368 9,082 1,787 1,347Disability Employment Services – encouraging better employment outcomes 3.3 – 574 376 417Changes in Parameters(net increase) – – – –(net increase) 3.3 – 86 85 166Other Variations(net increase) 3.3 10,152 – – –

Net impact on appropriationsfor Outcome 3 (departmental) 10,520 9,742 2,248 1,930Total net impact on appropriations for Outcome 3 (127,943) 169,607 400,215 877,722

35




Annual appropriationsChanges in Parameters(net decrease) 4.2 (126) (811) (1,095) (1,207)Other Variations(net decrease) 4.2 (558) (570) (583) (601)

Net impact on appropriationsfor Outcome 4 (administered) (684) (1,381) (1,678) (1,808)Outcome 4Departmental

Annual appropriationsChanges in Parameters(net increase) 4.3 – 13 13 26

Net impact on appropriationsfor Outcome 4 (departmental) – 13 13 26Total net impact on appropriations for Outcome 4 (684) (1,368) (1,665) (1,782)

36

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) 2017–182016–17 2017–18 2017–18 Additional ReducedAvailable Budget Revised Estimates Estimates

$'000 $'000 $'000 $'000 $'000Administered 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 Communitiesa 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 anddepartmental 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.

Table 1.5: Appropriation Bill (No. 4) 2017–182016–17 2017–18 2017–18 Additional ReducedAvailable Budget Revised Estimates Estimates

$'000 $'000 $'000 $'000 $'000Non-operating

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

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

37


2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

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

Linked programs

Department of Education and Training

Program Program 2.4 – Higher Education Loan Program

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

Department of Jobs and Small Business

Program Program 1.1 – Employment Services

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

Department of Health

Program Program 5.3 – Immunisation

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

38

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

Department of the Prime Minister and Cabinet

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

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

Department of Veterans’ Affairs

Programs Program 1.1 – Veterans’ Income Support and Allowances

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

39

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

Outcome 1: Social Security

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

expenses estimated estimate estimate estimate$'000 expenses $'000 $'000 $'000

$'000Program 1.1: Family Tax BenefitAdministered expenses

Special appropriationsA 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 17,997,517Total expenses for Program 1.1 18,362,820 19,121,330 18,418,175 18,329,253 17,997,517Program 1.2: Child PaymentsAdministered expenses

Special appropriationsSocial Security (Administration) Act 1999 3,230 3,154 3,084 3,082 3,070A New Tax System (Family Assistance) (Administration) Act 1999 32,514 30,448 20,516 13,904 6,764Student Assistance Act 1973 70,921 74,333 76,738 79,621 82,993

Administered Total 106,665 107,935 100,338 96,607 92,827Total expenses for Program 1.2 106,665 107,935 100,338 96,607 92,827Program 1.3: Income Support for Vulnerable PeopleAdministered expenses

Special appropriationsSocial Security (Administration) Act 1999 80,391 109,607 175,841 247,240 279,543

Administered Total 80,391 109,607 175,841 247,240 279,543Total expenses for Program 1.3 80,391 109,607 175,841 247,240 279,543Program 1.4: Income Support for People in Special CircumstancesAdministered expenses

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

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

Administered Total 4,415 5,667 5,679 5,149 1,376Total expenses for Program 1.4 4,415 5,667 5,679 5,149 1,376

40

Table 2.1.1: Budgeted expenses for Outcome 1 (continued)




$'000Program 1.5: Supplementary Payments and Support for Income Support RecipientsAdministered expenses

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

Social Security (Administration) Act 1999 29,491 29,073 26,528 25,375 22,776

Administered Total 29,491 29,073 26,528 25,375 22,776Total expenses for Program 1.5 29,491 29,073 26,528 25,375 22,776Program 1.6: Income Support for SeniorsAdministered expenses

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

Administered Total 44,314,378 45,368,202 47,566,954 49,749,622 52,111,965Total expenses for Program 1.6 44,314,378 45,368,202 47,566,954 49,749,622 52,111,965Program 1.7: Allowances and Concessions for SeniorsAdministered expenses


Administered Total 91,399 93,289 80,607 68,399 61,084Total expenses for Program 1.7 91,399 93,289 80,607 68,399 61,084Program 1.8: Income Support for People with DisabilityAdministered expenses


Administered Total 16,386,643 16,568,783 17,068,158 17,994,106 18,603,770Total expenses for Program 1.8 16,386,643 16,568,783 17,068,158 17,994,106 18,603,770

41





$'000Program 1.9: Income Support for CarersAdministered expenses

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

Social Security (Administration) Act 1999 8,078,875 8,378,262 8,674,250 9,170,983 9,455,725

Administered Total 8,081,157 8,381,062 8,677,050 9,173,783 9,458,525Total expenses for Program 1.9 8,081,157 8,381,062 8,677,050 9,173,783 9,458,525Program 1.10: Working Age PaymentsAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,592 21,382 33,298 29,295 3,306Special appropriations

Social Security (Administration) Act 1999 17,026,937 16,504,042 16,587,296 17,151,667 17,487,954

Administered Total 17,028,529 16,525,424 16,620,594 17,180,962 17,491,260Total expenses for Program 1.10 17,028,529 16,525,424 16,620,594 17,180,962 17,491,260Program 1.11: Student PaymentsAdministered expenses

Special appropriationsSocial Security (Administration) Act 1999 2,811,528 2,602,699 2,605,463 2,737,030 2,806,110Student Assistance Act 1973 267,608 262,362 268,835 269,711 280,817

Administered Total 3,079,136 2,865,061 2,874,298 3,006,741 3,086,927Total expenses for Program 1.11 3,079,136 2,865,061 2,874,298 3,006,741 3,086,927Program 1.12: Program Support for Outcome 1Departmental expenses

Departmental appropriation 92,027 99,642 85,703 81,003 78,544s 74 Retained revenue receiptsa 28,579 3,984 1,808 1,777 1,146Expenses not requiring appropriation in the budget yearb 15,693 14,857 16,300 13,242 9,564

Departmental Total 136,299 118,483 103,811 96,022 89,254Total expenses for Program 1.12 136,299 118,483 103,811 96,022 89,254

42





$'000Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 4,533 25,548 37,460 33,464 7,482Special appropriations 107,560,491 109,149,885 111,576,762 115,843,773 119,200,088

Administered Total 107,565,024 109,175,433 111,614,222 115,877,237 119,207,570Departmental expenses

Departmental appropriation 92,027 99,642 85,703 81,003 78,544s 74 Retained revenue receiptsa 28,579 3,984 1,808 1,777 1,146Expenses not requiring appropriation in the budget yearb 15,693 14,857 16,300 13,242 9,564

Departmental Total 136,299 118,483 103,811 96,022 89,254Total expenses forOutcome 1 107,701,323 109,293,916 111,718,033 115,973,259 119,296,824

2016–17 2017–18Average staffing level (number) 515 473Note: 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.

43

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

2016–17 2017–18 2018–19 2019–20 2020–21Actual Revised Forward Forward Forward$'000 Budget estimate estimate estimate

$'000 $'000 $'000 $'0001.1.1 - Component 1 (Family Tax Benefit Part A)


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)



1.1.3 - Component 3 (Schoolkids Bonus)

Special appropriationsA New Tax System (Family Assistance) (Administration) Act 1999a (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 17,997,517a The Schoolkids Bonus ceased at the end of 2016. Residual expenses beyond this date relate to bad and

doubtful debts for general interest charges.

44

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


$'000 $'000 $'000 $'0001.2.1 - Component 1 (Single Income Family Supplement)

Special appropriationsA New Tax System (Family Assistance) (Administration) Act 1999a 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 appropriationsA 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)



1.2.4 - Component 4 (Assistance for Isolated Children)

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


Total Program expenses 106,665 107,935 100,338 96,607 92,827a 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 People2016–17 2017–18 2018–19 2019–20 2020–21

Actual Revised Forward Forward Forward$'000 Budget estimate estimate estimate

$'000 $'000 $'000 $'0001.3.1 - Component 1 (Special Benefit)


Total component 1 expenses 80,391 109,607 175,841 247,240 279,543Total Program expenses 80,391 109,607 175,841 247,240 279,543

45

Table 2.1.2: Program components of Outcome 1 (continued)Program 1.4: Income Support for People in Special Circumstances


$'000 $'000 $'000 $'0001.4.1 - 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 appropriationsSocial Security (Administration) Act 1999a 3,756 4,301 4,317 3,780 –

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

Total Program expenses 4,415 5,667 5,679 5,149 1,376a 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 Recipients2016–17 2017–18 2018–19 2019–20 2020–21


$'000 $'000 $'000 $'0001.5.1 - Component 1 (Low Income Supplement)

Special appropriationsSocial 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)



Total Program expenses 29,491 29,073 26,528 25,375 22,776

46

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


$'000 $'000 $'000 $'0001.6.1 - Component 1 (Age Pension)



1.6.2 - Component 2 (Widow B Pension)



1.6.3 - Component 3 (Wife Pension (Age))



Total Program expenses 44,314,377 45,368,202 47,566,954 49,749,622 52,111,965a This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure:

Working Age Payment Reforms.

Program 1.7: Allowances and Concessions for Seniors2016–17 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)

Special appropriationsSocial Security (Administration) Act 1999a 91,399 93,289 80,607 68,399 61,084


Total Program expenses 91,399 93,289 80,607 68,399 61,084a The component was previously known as the Seniors Supplement.

47

Table 2.1.2: Program components of Outcome 1 (continued)Program 1.8: Income Support for People with Disability


$'000 $'000 $'000 $'0001.8.1 - Component 1 (Disability Support Pension)



1.8.2 - Component 2 (Mobility Allowance)

Special appropriationsSocial 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

48

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


$'000 $'000 $'000 $'0001.9.1 - Component 1 (Ex-Gratia Payments to Unsuccessful Applicants of Carer Payment (Child))


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

Total component 1 expenses 2,282 2,800 2,800 2,800 2,8001.9.2 - Component 2 (Carer Allowance (Adult))


Total component 2 expenses 1,605,173 1,658,380 1,712,537 1,799,478 1,859,7231.9.3 - Component 3 (Carer Allowance (Child))


Total component 3 expenses 580,851 613,686 638,807 675,051 702,2871.9.4 - Component 4 (Carer Payment)


Total component 4 expenses 5,050,923 5,269,195 5,465,052 5,839,530 6,062,7201.9.5 - Component 5 (Carer Supplement)


Total component 5 expenses 578,881 580,220 602,115 618,924 633,5921.9.6 - Component 6 (Child Disability Assistance Payment)


Total component 6 expenses 180,495 182,555 187,532 192,431 197,4031.9.7 - Component 7 (Wife Pension (DSP))


Total component 7 expenses 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 This payment will cease from 20 March 2020. This change is a result of the 2017-18 Budget measure: Working Age Payment Reforms.

49

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


$'000 $'000 $'000 $'0001.10.1 - Component 1 (Compensation and Debt Relief)


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

Total component 1expenses – 198 198 198 198

1.10.2 - Component 2 (Investment Approach to Welfare - Evaluation)Annual administered expenses

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

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

1.10.3 - Component 3 (Newstart Allowance)

Special appropriationsSocial Security (Administration) Act 1999a 9,986,987 9,990,360 10,021,181 7,623,198 –

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

1.10.4 - Component 4 (Parenting Payment Partnered)


Total component 4expenses 979,790 889,871 921,719 940,101 951,768

1.10.5 - Component 5 (Parenting Payment Single)


Total component 5expenses 4,625,087 4,378,165 4,453,025 4,520,829 4,620,574

1.10.6 - Component 6 (Pensioner Education Supplement)



1.10.7 - Component 7 (Sickness Allowance)

Special appropriationsSocial Security (Administration) Act 1999a 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.

50

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


$'000 $'000 $'000 $'0001.10.8 - Component 8 (Widow Allowance)



1.10.9 - Component 9 (Youth Allowance (Other))



1.10.10 - Component 10 (Seasonal Work Incentives - Evaluation)Annual administered expenses

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

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

1.10.13 - Component 13 (Social Impact Investment)Annual administered expenses

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

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


51

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


$'000 $'000 $'000 $'0001.11.1 - 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)




52

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


$'000 $'000 $'000 $'0001.12.1 - Component 1 (Departmental DSS - Outcome 1)

Annual departmental expenses

Departmental appropriation 92,027 99,642 85,703 81,003 78,544s74 Retained revenue receiptsa 28,579 3,984 1,808 1,777 1,146Expenses not requiring appropriation in the budget yearb 15,693 14,857 16,300 13,242 9,564


Total Program expenses 136,299 118,483 103,811 96,022 89,254Note: 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.

53

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

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

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

Performance information

Year Performance criteria Targets

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

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

(Family Tax Benefit)

201819 and beyond As per 201718 As per 201718

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

54

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

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



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

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

(Double Orphan Pension) Administered outlays




(a)

55

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

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



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

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




56

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

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



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

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




57

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

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



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

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

(Low Income Supplement, Utilities Allowance)

Number of payments (Essential Medical Equipment Payment)

Administered outlays




58

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




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


(Age Pension)




(a)

59

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




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

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




60

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




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


(Disability Support Pension)




61

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

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



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


(Carer Payment, Carer Allowance)




62

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




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





63

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

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



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


(ABSTUDY, Austudy, Youth Allowance (student))




64

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

Delivery Departmental funding



201718 Total departmental funding for Outcome 1 Funding is expended on activities that contribute to agency outcomes




65

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

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



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

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


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

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

66


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

Linked programs

Attorney-General’s Department

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

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

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


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

Contribution to Outcome 2 made by linked programThe 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.

67


Department of the Prime Minister and Cabinet

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

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

Contribution to Outcome 2 made by linked programsThe 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.

68

Table 2.2.1: Budgeted expenses for Outcome 2This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by administered and departmental funding sources.

Outcome 2: Families and Communities



$'000Program 2.1: Families and CommunitiesAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)a 673,658 707,091 699,200 678,264 643,536Special appropriations

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

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

Administered total 687,667 729,515 706,071 681,664 646,936Total expenses forProgram 2.1 687,667 729,515 706,071 681,664 646,936Program 2.2: Paid Parental LeaveAdministered expenses

Special appropriationsPaid 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 2,330,761Total expenses forProgram 2.2 2,140,875 2,210,982 2,271,460 2,300,427 2,330,761Program 2.3: Social and Community ServicesAdministered expenses

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

Administered total 145,162 528,436 420,774 477,401 497,176Total expenses forProgram 2.3 145,162 528,436 420,774 477,401 497,176

69


Outcome 2: Families and Communities



$'000Program 2.4: Program Support for Outcome 2Departmental expenses

Departmental appropriationa 184,052 164,349 178,566 167,731 162,076s 74 Retained revenue receiptsb 57,159 77,885 33,020 33,260 33,641Expenses not requiring appropriation in the budget yearc 31,385 34,731 39,412 32,154 23,314

Departmental total 272,596 276,965 250,998 233,145 219,031Total expenses for Program 2.4 272,596 276,965 250,998 233,145 219,031

Outcome 2 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)a 673,658 707,091 699,200 678,264 643,536Special appropriations 2,140,849 2,211,132 2,271,468 2,300,427 2,330,761Special Accounts 159,197 550,710 427,637 480,801 500,576

Administered total 2,973,704 3,468,933 3,398,305 3,459,492 3,474,873Departmental expenses

Departmental appropriationa 184,052 164,349 178,566 167,731 162,076s 74 Retained revenue receiptsb 57,159 77,885 33,020 33,260 33,641Expenses not requiring appropriation in the budget yearc 31,385 34,731 39,412 32,154 23,314

Departmental total 272,596 276,965 250,998 233,145 219,031Total expenses forOutcome 2 3,246,300 3,745,898 3,649,303 3,692,637 3,693,904

70


Movement of administered funds between yearsd



$'000Outcome 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 2017–18Average staffing level (number) 831 845Note: 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.

71

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


$'000 $'000 $'000 $'0002.1.1 - Component 1 (Civil Society)




2.1.2 - Component 2 (Families and Children)Annual administered expenses



2.1.3 - Component 3 (Families and Communities Services Improvement)Annual administered expenses



2.1.4 - Component 4 (Financial Wellbeing and Capability)Annual administered expenses



2.1.5 - Component 5 (National Initiatives)Annual administered expenses



72

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


$'000 $'000 $'000 $'0002.1.6 - Component 6 (Settlement Services)


Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)a 230,562 204,691 198,969 201,500 200,031


2.1.7 - Component 7 (Strengthening Communities)Annual administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)b 31,316 44,244 47,783 41,368 35,931


2.1.8 - Component 8 (Transition to Independent Living Allowance)Annual administered expenses



2.1.9 - Component 9 (Income Management Balancing Appropriation)

Special appropriationsSocial Security (Administration) Act 1999 (26) 150 8 – –

Total component 9expenses (26) 150 8 – –

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

Special Account expensesOther Services - Services for Other Entities and Trust Moneys 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.

73

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


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

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

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

Total component 11expenses – – nfp nfp nfp

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

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

Total component 12expenses – – nfp nfp nfp

2.1.13 - Component 13 (Volunteer Management)Annual administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)c – 2,985 5,754 5,824 6,093

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

2.1.14 - Component 14 (Volunteer Grants)Annual administered expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)c – 10,000 10,000 10,000 10,000

Total component 14expenses – 10,000 10,000 10,000 10,000

Total Program expenses 687,669 729,515 706,071 681,664 646,936c Volunteer Grants and Volunteer Management were part of the Strengthening Communities component and

have been established as their own components from 1 January 2018.

74

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


$'000 $'000 $'000 $'0002.2.1 - Component 1 (Dad and Partner Pay)

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


2.2.2 - Component 2 (Parental Leave Pay)

Special appropriationsPaid 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 Services2016–17 2017–18 2018–19 2019–20 2020–21


$'000 $'000 $'000 $'0002.3.1 - Component 1 (Social and Community Services Pay Equity Special Account)

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


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

75





Departmental appropriation 184,052 164,349 178,566 167,731 162,076s 74 Retained revenue receiptsa 57,159 77,885 33,020 33,260 33,641Expenses not requiringappropriation in the budget yearb 31,385 34,731 39,412 32,154 23,314


Total Program expenses 272,596 276,965 250,998 233,145 219,031Note: Departmental appropriation items and totals by Outcome are indicative estimates and may change in the course of the budget year as Government priorities change.a Program support combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and

‘Revenue from independent sources (s 74)’.b ‘Expenses not requiring appropriation in the budget year’ is made up of depreciation and amortisation

expenses.

76


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


77

Table 2.2.3: Performance Criteria for Outcome 2 (continued)Program 2.2 – Paid Parental Leave – To provide financial support to parents to help them take time off work following the birth or adoption of a child.

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



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

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




78

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

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



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

Payments made as described




79





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




80


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

Linked programs

Department of Jobs and Small Business

Program Program 1.1 – Employment Services

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

Department of Health

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

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



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

81


National Disability Insurance Agency

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

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

The Treasury

Program Program 1.7 – Assistance to the State for Disability Services

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

82


Outcome 3: Disability and Carers



$'000Program 3.1: Disability Mental Health and CarersAdministered expenses

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

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

Special AccountsNational Disability Special Account 2,290 2,140 405 172 –

Administered total 978,721 1,113,944 1,121,108 1,098,030 1,093,908Total expenses for Program 3.1 978,721 1,113,944 1,121,108 1,098,030 1,093,908Program 3.2: National Disability Insurance SchemeAdministered 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 10,276,997Total expenses for Program 3.2 552,359 3,081,367 5,966,395 8,992,456 10,276,997Program 3.3: Program Support for Outcome 3Departmental expenses

Departmental appropriation 77,302 111,502 86,198 80,765 77,880s 74 Retained revenue receiptsb 24,007 5,990 3,354 3,177 3,484Expenses not requiring appropriation in the budget yearc 13,182 16,846 16,680 13,428 9,621


83


Outcome 3: Disability and Carers




Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 1,528,790 4,193,171 7,087,098 10,090,314 11,370,905Special appropriationsa – nfp nfp nfp nfpSpecial Accounts 2,290 2,140 405 172 –

Administered total 1,531,080 4,195,311 7,087,503 10,090,486 11,370,905Departmental expenses

Departmental appropriation 77,302 111,502 86,198 80,765 77,880s 74 Retained revenue receiptsb 24,007 5,990 3,354 3,177 3,484Expenses not requiring appropriation in the budget yearc 13,182 16,846 16,680 13,428 9,621

Departmental total 114,491 134,338 106,232 97,370 90,985Total expenses forOutcome 3 1,645,571 4,329,649 7,193,735 10,187,856 11,461,890

Movement of administered funds between years d



$'000Outcome 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 2017–18Average staffing level (number) 534 573Note: 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.

84

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


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

3.1.1 - Component 1 (Community Mental Health)Annual administered expenses


Total component 1 expenses 53,694 50,934 52,566 53,302 54,0503.1.2 - Component 2 (Disability and Carer Support)



Total component 2 expenses 127,193 147,701 156,957 156,810 158,8603.1.3 - Component 3 (Disability Employment)



Total component 3 expenses 784,467 871,429 842,500 836,591 851,6223.1.4 - Component 4 (Disability and Carer Service Improvement and Sector Support)



Total component 4 expenses 11,079 41,740 68,680 51,155 29,3763.1.5 - Component 5 (Business Services Wage Assessment Tool Payment Scheme)

Special appropriationsBusiness Services Wage Assessment Tool Payment Scheme Act 2015a – nfp nfp nfp nfp

Total component 5 expenses – nfp nfp nfp nfp3.1.6 - 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.

85

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


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

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


Total component 1 expenses 551,392 489,271 401,318 82,144 39,7753.2.2 - 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 10,104,6493.2.5 - 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

Total component 5 expenses – 70,990 114,044 131,478 132,5733.2.6 - 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

86





Departmental appropriation 77,302 111,502 86,198 80,765 77,880s 74 Retained revenue receiptsa 24,007 5,990 3,354 3,177 3,484Expenses not requiringappropriation in the budgetyearb 13,182 16,846 16,680 13,428 9,621



expenses.

87


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


88

Table 2.3.3: Performance Criteria for Outcome 3 (continued)Program 3.2 – National Disability Insurance Scheme – To improve the wellbeing and social and economic participation of people with disability, and their families and carers, by building a National Disability Insurance Scheme (NDIS) that delivers individualised support through an insurance approach. This program also includes funding from existing Commonwealth programs that are transitioning into the Scheme in a phased approach, funding to establish the NDIS Quality and Safeguards Commission and the Sector Development Fund.

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



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

settings for full scheme implementing funding mechanisms for

NDIS transitions negotiating agreements with states and

territories for full scheme establishment of the NDIS Quality and

Safeguards Commission

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

program funding transitioned to the NDIS

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




89









90


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

Linked programs

The Treasury

Programs Program 1.8 – Assistance to the States for affordable housing Program 1.9 – National Partnership Payments to the States

Contribution to Outcome 4 made by linked programsNational 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.

91


Outcome 4: Housing


Expenses estimated estimate estimate estimate$'000 expenses $'000 $'000 $'000

$'000Program 4.1: Housing and HomelessnessAdministered expenses


Administered total 1,341 1,620 1,588 1,586 1,570Total expenses for Program 4.1 1,341 1,620 1,588 1,586 1,570Program 4.2: Affordable HousingAdministered expenses


Administered total 84,487 84,535 84,736 81,729 75,788Total expenses for Program 4.2 84,487 84,535 84,736 81,729 75,788Program 4.3: Program Support for Outcome 4Departmental expenses

Departmental appropriation 14,724 20,227 17,099 16,086 15,544s 74 Retained revenue receiptsa 4,573 1,087 665 633 576Expenses not requiring appropriation in the budget yearb 2,511 3,056 3,309 2,674 1,920


92


Outcome 4: Housing


Expenses estimated estimate estimate estimate$'000 expenses $'000 $'000 $'000



Administered total 85,828 86,155 86,324 83,315 77,358Departmental expenses


Departmental total 21,808 24,370 21,073 19,393 18,040Total expenses forOutcome 4 107,636 110,525 107,397 102,708 95,398

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

93

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


$'000 $'000 $'000 $'0004.1.1 - Component 1 (Housing and Homelessness Service Improvement and Sector Support)





Program 4.2: Affordable Housing2016–17 2017–18 2018–19 2019–20 2020–21


$'000 $'000 $'000 $'0004.2.1 - Component 1 (National Rental Affordability Scheme)





94

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







expenses.

95


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


96

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

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



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




97









98

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 balancesOutcome 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) – 865Other 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) – 230,949Social 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

3.13,376 – (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

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statementsDepartmental

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.

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3.2.2 Budgeted financial statementsTable 3.2: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2016–17 2017–18 2018–19 2019–20 2020–21Actual Revised Forward Forward Forward$’000 Budget estimate estimate estimate

$’000 $’000 $’000 $’000EXPENSES

Employee benefits 262,875 273,863 251,549 251,269 255,445Supplier 215,525 206,297 150,371 128,677 112,924Depreciation and amortisation 62,771 69,490 75,701 61,498 44,419Write-down and impairment of assets 3,243 – – – –Other expenses 780 4,506 4,493 4,486 4,522

Total expenses 545,194 554,156 482,114 445,930 417,310LESS:OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and renderingof services 107,265 78,959 30,932 30,932 30,932Rental 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 37,497Gains

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 1,350Total own-source income 114,318 88,946 38,847 38,847 38,847Net cost of/(contribution by) services 430,876 465,210 443,267 407,083 378,463

Revenue from Government 368,959 395,720 367,566 345,585 334,044Surplus/(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.

101

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

Note: Impact of Net Cash Appropriation Arrangements2016–17 2017–18 2018–19 2019–20 2020–21

Actual Revised Forward Forward Forward$’000 Budget estimate estimate estimate

$’000 $’000 $’000 $’000Surplus 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 appropriationsa 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.

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Table 3.3: Budgeted departmental balance sheet (as at 30 June)2016–17 2017–18 2018–19 2019–20 2020–21


$’000 $’000 $’000 $’000ASSETSFinancial assets

Cash and cash equivalents 17,192 7,192 7,192 7,192 7,192Trade and other receivables 111,166 94,451 77,805 72,675 69,736

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

Leasehold Improvements 39,127 52,019 45,408 41,836 38,456Property, plant and equipment 32,508 30,556 24,387 18,420 13,013Intangibles 156,010 166,073 140,519 115,425 96,768Other 26,397 26,397 26,397 26,397 26,397

Total non-financial assets 254,042 275,045 236,711 202,078 174,634Assets held for sale 71 – – – –

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

Suppliers 30,254 28,959 21,108 18,063 15,852Other 41,113 36,776 34,776 32,776 30,776

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

Employee provisions 80,055 83,401 76,606 76,521 77,793Other provisions 849 849 849 849 849

Total provisions 80,904 84,250 77,455 77,370 78,642Total liabilities 152,271 149,985 133,339 128,209 125,270Net assets 230,200 226,703 188,369 153,736 126,292EQUITYa

Parent entity interestContributed equity 472,700 538,693 576,060 602,925 619,900Reserves 72,335 72,335 72,335 72,335 72,335Retained surpluses (accumulated deficit) (314,835) (384,325) (460,026) (521,524) (565,943)

Total parent entity interest 230,200 226,703 188,369 153,736 126,292Total Equity 230,200 226,703 188,369 153,736 126,292Prepared on Australian Accounting Standard basis.a ‘Equity’ is the residual interest in assets after deduction of liabilities.

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

Retained Asset Contributed Totalearnings revaluation equity/ equity

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

Opening balance as at 1 July 2017Balance carried forward from previous period (314,835) 72,335 472,700 230,200

Adjusted opening balance (314,835) 72,335 472,700 230,200Comprehensive 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 ownersContributions by owners

Equity Injection – Appropriation – – 40,412 40,412Departmental Capital Budget (DCB) – – 25,581 25,581

Subtotal transactions with owners – – 65,993 65,993Estimated closing balance as at 30 June 2018 (384,325) 72,335 538,693 226,703Closing balance attributable to the Australian Government (384,325) 72,335 538,693 226,703Prepared on Australian Accounting Standard basis.

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


$’000 $’000 $’000 $’000OPERATING ACTIVITIESCash received

Appropriations 492,251 412,435 384,212 350,715 336,983Goods and services 104,704 81,031 30,932 30,932 30,932Other 27,953 6,565 6,565 6,565 6,565

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

Employees 199,138 202,779 191,673 191,113 194,281Other employee expenses 64,909 67,738 66,671 60,241 59,892Suppliers 210,362 210,579 158,872 132,372 115,785Other 105,414 4,506 4,493 4,486 4,522

Total cash used 579,823 485,602 421,709 388,212 374,480Net cash from/(used by) operating activities 45,085 14,429 – – –INVESTING ACTIVITIESCash 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 16,975Net cash from/(used by) investing activities (103,454) (90,422) (37,367) (26,865) (16,975)FINANCING ACTIVITIESCash received

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

Total cash received 70,486 65,993 37,367 26,865 16,975Net cash from/(used by) financing activities 70,486 65,993 37,367 26,865 16,975Net 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 7,192Prepared on Australian Accounting Standard basis.

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Table 3.6: Departmental capital budget statement2016–17 2017–18 2018–19 2019–20 2020–21


$’000 $’000 $’000 $’000NEW CAPITAL APPROPRIATIONS

Capital Budget – Appropriation Bill No. 1 (DCB) 53,071 25,581 16,549 16,596 16,693Equity 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 16,975PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriationsa 24,608 59,802 20,818 10,269 282Funded by capital appropriations – DCBb 50,138 30,620 16,549 16,596 16,693Funded by lease incentive 28,920 – – – –

TOTAL 103,666 90,422 37,367 26,865 16,975RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLETotal purchases 103,666 90,422 37,367 26,865 16,975Total cash used to acquire assets 103,666 90,422 37,367 26,865 16,975Prepared on Australian Accounting Standard basis.a 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).

106

Table 3.7: Statement of asset movements (2017–18)Leasehold Property, Intangibles Other Total

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

$'000As at 1 July 2017

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

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

Estimated expenditure on new or replacement assetsBy purchase – appropriation equitya 13,388 831 45,583 – 59,802By purchase – appropriation ordinary annual servicesb 5,700 7,623 17,297 – 30,620Total additions 19,088 8,454 62,880 – 90,422Other movementsDepreciation/amortisationexpense (6,196) (10,477) (52,817) – (69,490)Total other movements (6,196) (10,477) (52,817) – (69,490)

As at 30 June 2018Gross book value 63,355 51,581 357,891 26,397 499,224Accumulated depreciation/amortisation and impairment (11,336) (21,025) (191,818) – (224,179)

Closing net book balance 52,019 30,556 166,073 26,397 275,045Prepared on Australian Accounting Standard basis.a '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) 2016-

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

107

Table 3.8: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)


$’000 $’000 $’000 $’000EXPENSES

Grants 1,260,449 1,599,339 1,345,149 896,006 767,606Subsidies 84,981 85,150 85,381 82,386 76,461Personal benefits 109,503,446 110,524,402 112,940,365 117,466,403 120,589,931Suppliers 971,638 1,104,633 1,071,552 1,053,632 1,036,111Write down and impairment of assets 215,415 831,787 1,100,558 840,232 833,683Borrowing costs – 12,304 13,302 13,776 14,271Payments to corporate entities 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200Other 148,640 2,768,217 5,828,570 9,326,827 10,712,193

Total expenses administered on behalf of Government 113,783,035 117,976,811 123,865,325 130,949,482 135,238,456LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

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

Total non-taxation revenue 78,570 44,467 75,306 83,028 85,676Total own-source revenue administered on behalf of Government 78,570 44,467 75,306 83,028 85,676Total own-source income administered on behalf of Government 78,570 44,467 75,306 83,028 85,676Net Cost of services 113,704,465 117,932,344 123,790,019 130,866,454 135,152,780Surplus/(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 other comprehensive income 691,711 – – – –Total comprehensiveincome/(loss) (113,012,754) (117,932,344) (123,790,019) (130,866,454) (135,152,780)Prepared on Australian Accounting Standard basis.

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


$’000 $’000 $’000 $’000ASSETSFinancial assets

Cash and cash equivalents 403,275 238,900 264,726 297,074 376,362Receivables 4,249,182 4,068,255 4,465,682 4,533,794 4,696,625Investments 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 6,061,820Non-financial assets

Other non-financial assets – 436,204 442,788 460,700 475,487Total non-financial assets – 436,204 442,788 460,700 475,487Total assets administered on behalf of Government 5,586,928 5,606,862 6,143,519 6,269,739 6,537,307LIABILITIESPayables

Suppliers 56,086 56,086 56,086 56,086 56,086Subsidies 60,727 69,199 74,676 78,461 80,148Personal benefits payable 1,657,644 2,030,554 2,180,295 2,541,584 2,519,929Grants 15,446 14,391 13,334 13,334 13,334Other 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 2,675,743Provisions

Personal benefits provision 4,229,821 4,225,472 4,110,018 3,935,037 3,717,042Total provisions 4,229,821 4,225,472 4,110,018 3,935,037 3,717,042Total liabilities administered on behalf of Government 6,025,970 6,401,948 6,440,655 6,630,748 6,392,785Net assets/(liabilities) (439,042) (795,086) (297,136) (361,009) 144,522Prepared on Australian Accounting Standard basis.

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


$’000 $’000 $’000 $’000OPERATING ACTIVITIESCash received

Interests 1,675 23,769 36,554 54,520 49,578Other 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 1,981,663Cash used

Grant payments 1,728,144 1,600,396 1,349,636 896,006 767,606Subsidies paid 105,414 83,979 84,752 82,811 78,408Personal benefits 112,260,103 112,180,254 115,405,355 119,847,989 123,560,152Suppliers 1,066,023 1,104,633 1,071,555 1,056,690 1,039,169Payment to corporate entities 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200Other 150,733 2,767,003 5,828,538 9,326,827 10,712,193

Total cash used 116,908,883 118,787,244 125,220,284 132,480,543 137,365,728Net cash from/(used by) operating activities (115,655,712) (117,663,605) (123,737,210) (130,588,857) (135,384,065)INVESTING ACTIVITIESCash receivedRepayments of loans and advances 63,036 45,238 45,238 45,238 45,238Total cash received 63,036 45,238 45,238 45,238 45,238Cash used

Advances and loans made 115,123 251,080 271,478 281,138 291,238Other Investing 116,197 – 106,820 7,848 10,662

Total cash used 231,320 251,080 378,298 288,986 301,900Net 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 116,975,061 118,875,879 125,622,708 132,813,009 137,758,048Cash 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 403,275 238,900 264,726 297,074 376,362Prepared on Australian Accounting Standard basis.

110

NATIONAL DISABILITYINSURANCE AGENCY

ENTITY ADDITIONAL ESTIMATES STATEMENTS

111

112


Section 1: Entity overview and resources.............................................................1051.1 Strategic direction statement................................................................................1051.2 Entity resource statement.....................................................................................1061.3 2017-18 measures since Budget..........................................................................1091.4 Additional estimates, resourcing and variations to outcomes...............................1101.5 Breakdown of additional estimates by Appropriation Bill......................................111

Section 2: Revisions to outcomes and planned performance.............................1122.1 Budgeted expenses and performance for Outcome 1..........................................112

Section 3: Budgeted financial statements.............................................................1183.1 Budgeted financial statements.............................................................................118

113

114


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

115

National Disability Insurance Agency Additional Estimates Statements

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.

116


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



$'000 $'000 $'000 2017–18$'000

Opening balance/cash reserves at 1 July 306,430 647,805 680,482 1,328,287Funds from GovernmentAnnual appropriations - ordinary annual servicesa

Outcome 1 1,598,466 1,026,117 24,862 1,050,979Annual appropriations - other servicesb

Equity injection 116,197 – – –Total annual appropriations 1,714,663 1,026,117 24,862 1,050,979Payments 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) 3,600,292Funds from other sources

Interest 13,802 – – –Contributions from state and territory governmentsd, 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) 1,441,861Other 7,491 – 5,734 5,734Total 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 2017-18Average staffing level (number) 1,872 2,460Prepared 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.

117


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 entitiesActual Estimate Proposed Total

available as at Additional estimate atappropriation Budget Estimates Additional

2016–17 2017–18 2017–18 Estimates$'000 $'000 $'000 2017–18

$'000Payments made to other entities for the provision of services 75,518 74,959 – 74,959

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

$'000 $'000 $'000 $'000Revenue measureRollout of National Disability Insurance Scheme in Western Australia - revised implementation arrangements

1.1, 1.2,1.3

Departmental revenues 36,798 140,643 205,542 41,097Total 36,798 140,643 205,542 41,097Total revenue measure

Departmental 36,798 140,643 205,542 41,097Total 36,798 140,643 205,542 41,097Expense measuresRollout of National Disability Insurance Scheme in Western Australia - revised implementation arrangements

1.1, 1.2,1.3

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

Departmental 109,186 445,125 782,068 1,121,197Total 109,186 445,125 782,068 1,121,197Prepared 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.

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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 1Departmental

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

1.3

16,562 89,531 126,945 111,519Other Variations 1.3 8,300 – – –

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

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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.

Table 1.4: Appropriation Bill (No. 3) 2017–182016-17

Available$'000

2017-18Budget

$'000

2017-18Revised

$'000

Additional Estimates

$'000

Reduced Estimates

$'000Departmental 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.

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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

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



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

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Table 2.1.1: Budgeted expenses and resources for Outcome 1This 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.



$'000

Program 1.1: Reasonable and necessary care and support for participantsRevenue 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 8,876,245Revenues from other independent sourcesa 1,243,042 1,441,861 2,062,301 1,744,506 1,845,197Total expenses forProgram 1.1 2,116,423 7,714,284 15,015,157 19,352,634 21,075,682Program 1.2: Community inclusion and capacity development grantsRevenue from Government

Ordinary annual services (Appropriation Act No. 1) 33,284 – – – –Payment from related entities – 70,990 114,044 131,478 132,573

Total expenses forProgram 1.2 33,284 70,990 114,044 131,478 132,573Program 1.3: Agency costsRevenue 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 sourcesa 15,181 5,734 – – –Total expenses forProgram 1.3 706,982 1,056,713 1,480,448 1,270,220 1,208,200

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Table 2.1.1: Budgeted expenses and resources for Outcome 1 (continued)2016–17 2017–18 2018–19 2019–20 2020–21

Actual Revised Forward Forward Forwardexpenses estimated estimate estimate estimate

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

Outcome 1 totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Act No. 1) 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200Payment 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 8,876,245Revenues from other independent sourcesa 1,258,223 1,447,595 2,062,301 1,744,506 1,845,197Total expenses forOutcome 1 2,856,689 8,841,987 16,609,649 20,754,332 22,416,455

2016–17 2017–18Average staffing level (number) 1,872 2,460Note: 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.

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Table 2.1.2: Performance criteria for Outcome 1Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It 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 disabilitySupporting 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.


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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 disabilitySupporting people with disability to pursue their goals and maximise their independence and social and economic participation.Developing the capacity of people with disability to participate in the community and in employment.


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Table 2.1.2: Performance criteria for Outcome 1 (continued)Program 1.3 – Agency costs – The Agency costs program ensures efficient and effective use of the Agency operating resources to implement the outcomes of the Agency.This program contributes to the outcome as it is the primary delivery mechanism for the implementation of the Scheme. The Agency is responsible for assessing applicants to the Scheme and developing plans, for those whom are eligible, in a manner which is based on insurance principles, and administering the payments made under Program 1.1 and 1.2.

Delivery The Agency develops and maintains the strategies and frameworks to be used in the transition of the NDIS to full scheme. These include the process for assessment and planning, disability services market development and community engagement and communications. The Agency executes these through a network of service centres throughout Australia and by working together with its community partners to deliver elements of the Scheme to people with a disability and the wider sector.



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 disabilityFacilitating the development of a nationally consistent approach to the access to, and the planning and funding of, supports for people with disability.Supporting people with disability to exercise choice and control in the pursuit of their goals and the planning and delivery of their supports.Safeguarding the sustainability of the NDISBuilding a sustainable scheme based on NDIS insurance principles, including assessing and reporting on whether NDIS investments improve outcomes and minimise lifetime support costs.Building public trust and stakeholder confidenceBuilding trust and confidence amongst stakeholders (participants, carers, the community and the disability services market) through communication and engagement.


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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 statementsIncome 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 sale of goods and services expense in 2017-18 and over the forward estimates when compared to the previous budget.

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The Agency receives services provided in-kind to participants on behalf of the Australian Government and state and territory governments, reflected as resources received free of charge. This revenue rises from $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


$'000 $'000 $'000 $'000EXPENSES

Employee benefits 175,013 268,132 294,342 292,962 298,500Suppliers 262,653 775,557 1,153,871 944,289 875,729Community partnership costs 125,687 – – – –Grants 39,104 – – – –Participant plan expenses 2,238,147 7,785,274 15,129,202 19,484,113 21,208,255Depreciation and amortisation 8,718 13,024 32,234 32,968 33,971Finance costs 444 – – – –

Write-down and impairment of assets 6,923 – – – –Total expenses 2,856,689 8,841,987 16,609,649 20,754,332 22,416,455LESS:OWN-SOURCE INCOMEOwn-source revenue

Revenue from rendering of services 1,382,615 6,343,413 13,066,900 17,739,606 19,363,058Interest 13,802 – – – –Other 1,379 5,734 – – –

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

Other gains 477,495 1,441,861 2,062,301 1,744,506 1,845,197Total gains 477,495 1,441,861 2,062,301 1,744,506 1,845,197Total own-source income 1,875,291 7,791,008 15,129,201 19,484,112 21,208,255Net (cost of)/contributionby 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 INCOMEChanges in asset revaluation surplus 3,675 – – – –Total other comprehensive income 3,675 – – – –Total comprehensive income/(loss) attributable to the Australian Government 620,743 – – – –Prepared on Australian Accounting Standard basis.

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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 $'000ASSETSFinancial assets

Cash and cash equivalents 1,328,287 1,310,487 1,373,886 1,390,237 1,418,959Trade 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 1,627,242Non-financial assets

Land and buildings 33,900 91,362 166,975 141,868 118,559Property, plant and equipment 391 89 62 49 49Other non-financial assets 4,617 4,617 4,617 4,617 4,617

Total non-financial assets 38,908 96,068 171,654 146,534 123,225Total assets 1,572,057 1,615,121 1,756,449 1,745,791 1,750,467LIABILITIESPayables

Suppliers 106,792 130,786 154,612 135,402 127,910Other payables 4,233 6,443 8,132 8,810 9,301

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

Employee provisions 35,563 45,713 54,192 53,695 53,998Participant plan provisions 505,604 505,604 505,604 505,604 505,604Other provisions 57,339 64,049 64,563 65,086 65,798

Total provisions 598,506 615,366 624,359 624,385 625,400Total liabilities 709,531 752,595 787,103 768,597 762,611Net assets 862,526 862,526 969,346 977,194 987,856EQUITYa

Parent entity interestContributed equity 205,733 205,733 312,553 320,401 331,063Reserves 5,556 5,556 5,556 5,556 5,556Retained surplus (accumulated deficit) 651,237 651,237 651,237 651,237 651,237

Total parent entity interest 862,526 862,526 969,346 977,194 987,856Total Equity 862,526 862,526 969,346 977,194 987,856Prepared on Australian Accounting Standard basis.a 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 Totalearnings revaluation reserves equity/ equity

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

Opening balance asat 1 July 2017

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

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

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

of which:Estimated closing balance asat 30 June 2018 651,237 5,556 – 205,733 862,526Closing balance attributable to the Australian Government 651,237 5,556 – 205,733 862,526Prepared on Australian Accounting Standard basis.

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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 2020–21Estimated Budget Forward Forward Forward

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

OPERATING ACTIVITIESCash received

Receipts from Government 1,598,466 1,050,979 1,480,448 1,270,220 1,208,200State and territory government contributions 1,256,873 6,184,296 12,628,077 17,036,094 18,365,292Interest received 13,237 – – – –Net GST received 27,990 80,847 105,679 89,818 82,096Other 938 – – – –

Total cash received 2,897,504 7,316,122 14,214,204 18,396,132 19,655,588Cash used

Employees benefit 162,812 262,188 285,400 291,793 297,320Suppliers expenses 211,681 834,314 1,170,505 922,257 798,305Community partnership costs 134,697 – – – –Participant plan expenses 1,457,486 6,172,969 12,693,900 17,165,731 18,531,241Grant payment 42,206 – – – –

Total cash used 2,008,882 7,269,471 14,149,805 18,379,781 19,626,866Net cash from/(used by) operating activities 888,622 46,651 64,399 16,351 28,722INVESTING ACTIVITIESCash 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 10,662Net cash from/(used by) investing activities 17,038 (64,451) (107,820) (7,848) (10,662)FINANCING ACTIVITIESCash received – – – – –

Corporate Commonwealth entity payment 116,197 – 106,820 7,848 10,662

Total cash received 116,197 – 106,820 7,848 10,662Net cash from/(used by) financing activities 116,197 – 106,820 7,848 10,662Net increase/(decrease) in cash held 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 1,418,959Prepared on Australian Accounting Standard basis.

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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 Forwardactual $'000 estimate estimate estimate$'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONS

Equity injections - AppropriationBill No. 2 116,197 – 106,820 7,848 10,662

Total new capital appropriations 116,197 – 106,820 7,848 10,662Provided for:

Purchase of non-financial assets 16,156 – 106,820 7,848 10,662

Total Items 16,156 – 106,820 7,848 10,662PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriationa 16,156 70,185 107,820 7,848 10,662TOTAL 16,156 70,185 107,820 7,848 10,662RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSETMOVEMENT TABLETotal purchases 16,156 70,185 107,820 7,848 10,662TOTAL CASH REQUIRED TO ACQUIRE ASSETS 16,156 70,185 107,820 7,848 10,662Prepared on Australian Accounting Standard basis.a 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 $'000equipment intangibles

$'000 $'000As at 1 July 2017

Gross book value 34,300 2,399 1,888 38,587Accumulated depreciation/ amortisation and impairment (400) (2,009) (1,888) (4,297)

Opening net book balance 33,900 390 – 34,290CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase – appropriation equitya 70,185 – – 70,185Total additions 70,185 – – 70,185Other movementsDepreciation/amortisation expense (12,723) (301) – (13,024)Total other movements (12,723) (301) – (13,024)

As at 30 June 2018Gross book value 104,485 2,399 1,888 108,772Accumulated depreciation/ amortisation and impairment (13,123) (2,310) (1,888) (17,321)

Closing net book balance 91,362 89 – 91,451Prepared on Australian Accounting Standard basis.a "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.

136

Glossary

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.

137

Glossary

key performanceindicators

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.

138

Glossary

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.

139

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

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Documents

Abbreviations and conventions - Department of Social Services ...€¦ · Web viewThe purpose of the 201718 Portfolio Additional Estimates Statements (PAES), like that of the Portfolio