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The Budget in Summary

The 2001-02 Budget includes new spending of more than $327 million over the next four years to build on the Government's strategic approach to reducing Indigenous disadvantage through practical reconciliation. The new initiatives continue the Government's focus on the key areas of health, housing, employment and education where Indigenous Australians are particularly disadvantaged. Significant new initiatives in this year's Budget include funding over the next four years of:

• $82.8 million as part of the Government's Australians Working Together package made up of:
• $32.2 million to develop and monitor community-based participation agreements negotiated between ATSIC and remote Indigenous communities;
• $31.1 million to find more jobs for Indigenous people through contracting Community Development Employment Project organisations to take on the role of Indigenous Employment Centres;
• $10.2 million to assist Indigenous students to stay in school or undertake vocational training;
• $9.3 million to improve access to Centrelink services for remote Indigenous communities;
• $86 million to ensure speedier resolution of native title claims;
• $75 million to expand the supply of healthy Indigenous housing through construction of new houses, upgrades of existing housing stock, improved infrastructure and measures to build the capacity of community housing organisations to more effectively manage and maintain housing stock;
• $43.8 million to assist not-for-profit Aboriginal and Torres Strait Islander health, housing, employment, education and legal service providers with the effects of changes to the fringe benefits tax arrangements. This will ensure that these organisations can continue to attract professional staff; and
• $40 million to improve Indigenous health. Involves additional ongoing funding of around $20 million a year from 2003-04 for the Indigenous Primary Health Care Access programme.

The Government has also agreed to continue funding, beyond 30 June 2002, for the important Link-up, counselling and parenting elements of the Government's practical package of initiatives for those affected by past family separation practices. An amount of $53.8 million will be provided to extend these programmes to 30 June 2006 adding to the $63 million previously allocated.

The Commonwealth will also contribute a further $15.3 million over the next three years to continue funding the successful major infrastructure projects in the Torres Strait region, subject to agreement on matching funding from the Queensland Government.

Following a joint ATSIC and Department of Finance pricing review of ATSIC spending, the Government has agreed to continue more than $60 million of funding over four years to ATSIC following the completion of the four-year Reconciliation and Aboriginal and Torres Strait Islander Affairs portfolio funding guarantee.

These initiatives form part of a commitment of $2.39 billion to programmes and services of particular relevance to Aboriginal and Torres Strait Islander people in 2001-02. The majority of Indigenous-specific funding is shared across the portfolios of Reconciliation and Aboriginal and Torres Strait Islander Affairs; Health and Aged Care; Education, Training and Youth Affairs; Employment, Workplace Relations and Small Business; Family and Community Services; and the Attorney-General.

Funding for the Reconciliation and Aboriginal and Torres Strait Islander Affairs portfolio comprises 55 per cent of total Indigenous-specific funding. With more than $100 million over four years for new measures in the 2001-02 Budget and an allocation of $1.134 billion (excluding funding for the Indigenous Land Fund), ATSIC funding will be 47 per cent of total Indigenous-specific funding in 2001-02. This represents an increase in real terms compared to ATSIC's spending in the last year of office of the previous Labor government.

Chart 1: Functional Dissection of 2001-02 Budget (total $2.39 billion)

Around three-quarters of the total funding allocated by the Government to Indigenous-specific activities will be spent in the four priority areas of health, housing, education and employment.

Chart 2: Identifiable Commonwealth Expenditure on Aboriginal and Torres
Strait Islander Affairs 1981-82 to 2001-02 (in 2001-02 Dollars)

Source: Figures from 1981-82 to 1994-95 - Department of the Parliamentary Library, Current Issues Brief No.18 of 1997-98, Dr John Gardiner-Garden

Figures from 1995-96 to cash Budget 1998-99 - Addressing Priorities in Indigenous Affairs, Statement by the Minister for Aboriginal and Torres Strait Islander Affairs, 12 May 1998

Figures for 1999-2000 actual obtained from Departments and agencies

Note: (a) Cash based estimated outcome for 1997-98

(b) Cash based Budget figure for 1998-99

(c) Accrual based estimated outcome figures

(d) Accrual based actual outcome figure

(e) Accrual based Budget figure