Part II: Expense measures (continued)

---

• Defence
• Education, Science and Training
• Employment and Workplace Relations
• Environment and Heritage
• Family and Community Services
• Finance and Administration
• Foreign Affairs and Trade
  

---

 

Defence

Additional funding for increased coastal surveillance

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	22.3	-	-	-

Explanation

The Government has allocated additional funding for additional deployment costs for the Australian Defence Force to continue coastal surveillance of Australia's northern approaches to deter unauthorised boat arrivals. This is in addition to the $18.7 million in additional funds provided in 2001-02.

Additional funding for the War Against Terrorism

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	194.0	-	-	-

Explanation

The Government will provide additional funding of $523.8 million (including $329.8 million in 2001-02) to support Australia's contribution to the War Against Terrorism in Afghanistan and the Persian Gulf. The deployment involves around 1,100 Australian Defence Force personnel and includes: an Australian special forces task group and other personnel participating in Afghanistan; a naval task group supporting the Multinational Interception Force implementing UN Security Council resolutions in the Persian Gulf and other activities in support of the War Against Terrorism.

Commonwealth Heads of Government Meeting (CHOGM) in Queensland

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	-	-	-	-

Explanation

The Government provided additional funding of $2.5 million in 2001-02 for the Commonwealth Heads of Government Meeting (CHOGM) in Coolum, Queensland in March 2002. The change in the venue and timing of CHOGM (previously scheduled for October 2001 in Brisbane) and the events of 11 September 2001 and the threat assessments arising from them, required enhanced security arrangements to ensure a secure and safe venue.

Counter-terrorism: improving operational capacity

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	10.2	-	-	-

Explanation

The Department of Defence will receive additional funding of $15 million, with $4.8 million provided in 2001-02, to improve real time communications in support of the War Against Terrorism.

Defence Communications Project

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	26.3	18.5	25.3	38.5

Explanation

The Department of Defence will receive additional funding of $113.6 million (including $5 million in 2001-02) to improve secure communication systems, as a result of assessments made following 11 September 2001.

Enhanced protective security

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	27.9	-	-	-

Explanation

In light of the heightened state of alert resulting from the War Against Terrorism, the Government has provided additional funding to support enhanced security measures of Defence personnel and facilities, including increased guarding, patrolling and protective searches. Funding of $27 million was provided in 2001-02.

See also the related capital measure titled Enhanced protective security in the Defence portfolio.

Enhancement to Defence's tactical response capability

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	32.6	37.8	28.8	33.4

Explanation

Following the events of 11 September 2001, the Government has decided to double the tactical assault capability of the Australian Defence Force by establishing a permanent Tactical Assault Group on the east coast of Australia. This group will supplement the existing Tactical Assault Group located on the west coast. Funding of $23.1 million was provided in 2001-02 to establish an interim east coast Tactical Assault Group.

A Tactical Assault Group is a special forces unit trained to conduct counter terrorism activities in a range of situations, including the recovery of hostages. A full strength permanent group will be drawn immediately from the existing Australian Defence Force. The funding provided allows for the purchase of specialist military equipment for the new Tactical Assault Group and for the recruitment and training of new personnel to replace those personnel drawn into the new Tactical Assault Group.

See also the related capital measure titled Enhancement to Defence's tactical response capability in the Defence portfolio.

E-security national agenda

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	2.0	2.0	2.0	2.0

Explanation

The Government will provide additional funding of $8 million to improve security awareness and management of the national information infrastructure. The E-security national agenda is designed to protect Australia's critical information technology infrastructure from attack.

Incident response capability

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	18.0	21.0	22.0	24.0

Explanation

The Government will provide additional funding of $85 million to introduce a number of measures designed to strengthen Australia's preparedness and consequence management of Chemical, Biological, Radiological, Nuclear And Explosive (CBRNE) incidents.

The Government is establishing within the Australian Defence Force a permanent Incident Response Regiment (IRR). The IRR will complement existing Commonwealth and state and territory capabilities dealing with CBRNE threats and incidents. It builds upon earlier capabilities funded through the Defence 2000 White Paper and interim arrangements put in place to cover events of national significance, such as the recent Commonwealth Heads of Government Meeting.

The IRR will be a group of highly trained Defence personnel able to respond to CBRNE emergencies in Australia and involving Australian interests overseas, including supporting hostage recovery operations with CBRNE dimensions, providing specialist and technical advice to Commonwealth, state and territory agencies and combating terrorist attacks involving an improvised nuclear device.

See also the related capital measure titled Incident response capability in the Defence portfolio.

Increased funding to intelligence agencies

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	7.4	4.3	4.3	4.3

Explanation

The Government will provide additional funding of $20.3 million to enhance counter-terrorism capabilities.

Increased munitions war - stocks

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	-	-	-	-

Explanation

The Government will allocate funding of $20.9 million in 2002-03 to purchase high priority explosive ordnance stocks to ensure an appropriate level of ordnance stocks are available for sudden contingencies consistent with scenarios identified in the Defence White Paper.

This measure will be funded from the additional resources provided to the Department of Defence as part of the Defence White Paper. The White Paper includes an additional $1,039.4 million in 2002-03, $1,464.7 million in 2003-04, $2,042.1 million in 2004-05 and $2,359.4 million in 2005-06.

Reprioritisation of Defence administrative spending to operational requirements

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	-97.0	-	-	-

Explanation

The Department of Defence will achieve savings of $146 million in 2001-02 and $97 million in 2002-03 through increased efficiencies within administrative expenses such as travel, facilities maintenance, publishing and printing, advertising, consultants and contractors and other general services. This is out of its annual $2.9 billion administrative budget, excluding costs associated with repairs and maintenance. Increased efficiencies will not impact on current operations or force capability. Reprioritised funding will be redirected to meet operational requirements.

Rescheduling of major capital equipment acquisitions

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Defence	-150.0	153.8	-	-

Explanation

In the light of changed strategic circumstances, Defence is undertaking a major Strategic Review, due in October. This review may lead to variations in the Defence Capability Plan. Prior to this review the Government has agreed to rephasing of a small part of Defence's $3.6 billion capital equipment expenditure into 2003-04. There is no expected impact on Defence capability.

Education, Science and Training

Actuarial assessment of unfunded higher education superannuation

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-	-	-	-

Explanation

In 2002-03, the Commonwealth will review the cost sharing arrangements with the States relating to universities' unfunded superannuation liabilities, with a view to simplifying the arrangements for all parties. This will draw on an actuarial assessment of the total amount of unfunded superannuation, including the relative Commonwealth and State shares.

The cost of this measure will be absorbed within the existing resources of the Department of Education, Science and Training.

Australia's radioactive waste management strategy

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	2.3	2.3	5.3	-

Explanation

The Government will provide $9.9 million to establish two national radioactive waste management facilities, a national repository for the underground disposal of low level waste, and a national store for the above-ground storage of intermediate level waste.

Purpose-built waste management facilities will improve community safety by ensuring that radioactive waste is responsibly managed and is as secure as possible from threat or misuse.

This measure will fund an existing programme that has identified possible sites for the national repository through to the construction of the facility. It will also fund the siting, assessment and construction of the national store, which will be a specially designed and constructed building for the safe storage of intermediate level waste.

Expanding School Based New Apprenticeships

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	4.2	9.1	9.2	9.2

Explanation

The Government has decided to provide extra incentives to employers taking on New Apprentices who are continuing their school studies. Employers who are willing to take on a New Apprentice while they are at school will receive $750. A retention bonus of $750 will be provided to employers who continue to employ a young person as a New Apprentice within six months of them completing Year 12.

School Based New Apprenticeships enable students to gain a national vocational qualification while continuing school studies. Students earn a wage for the time spent in productive work, providing an attractive transition pathway for some school students. The measure will encourage a greater national take up of the School Based New Apprenticeship pathway.

Extension of the English as a Second Language - New Arrivals Programme

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	3.2	3.5	3.7	3.9

Explanation

The Government will provide additional funding of $14.3 million to extend the English as a Second Language - New Arrivals Programme to minors in the humanitarian and refugee temporary protection visa categories. From 1 July 2002 these new arrangements will provide assistance to around 750 students annually who are new arrivals under these visa categories who are undertaking primary or secondary education at a government or non-government school.

These students will receive a minimum of six months intensive English language assistance where English is not their first language or is not the language commonly spoken at home and where their proficiency has been assessed as requiring intensive assistance to enable them to fully participate in mainstream classroom activities.

Improving information technology skills for older workers

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	5.8	5.8	5.8	5.8

Explanation

The Government will provide up to 11,500 mature age people each year with training up to the value of $500 to attain basic skills in computer and information technology (IT).

The measure provides accredited training to mature age people in the labour force, who are welfare dependent and have no previous post-school qualifications in IT. The training would bring them up to a level of IT literacy that would enable them to operate at a basic level in the workplace.

Innovation New Apprenticeship Incentive

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	2.5	6.6	6.6	6.6

Explanation

The Government will provide an extra incentive of $1,100 to employers taking on a New Apprentice in Information Technology (IT) and other highly skilled occupations.

Skill shortages in IT and innovation industries have been identified as a key constraint on the growth and competitiveness of Australian industry, and the emerging information economy. The measure encourages employers to increase structured training opportunities in IT and high skilled occupations through the New Apprenticeship arrangements.

Maintaining funding to the Anglo-Australian Telescope Board

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-	-	-	0.4

Explanation

The Government will provide additional funds to the Anglo-Australian Telescope Board (AATB) equal to the GST liability on the United Kingdom Government's contributions. This will ensure that the AATB's activities continue to be equally funded (in effect) by the Governments of Australia and the UK.

The measure is estimated to cost $0.4 million per year from 2005-06.

Quality Teacher Programme

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-	-	-	-

Explanation

The Government will continue for a further three years the Quality Teacher Programme (QTP), by providing $31.9 million in 2002-03, $32.5 million in 2003-04 and $33.1 million in 2004-05.

The programme provides funding for professional development and the renewal of teacher skills in the priority areas of literacy, numeracy, mathematics, science, information technology and vocational education. The programme targets teachers who have completed formal training ten or more years ago, casual teachers and teachers who are re-entering the teaching force. The programme also supports national projects related to teacher quality.

Provision for this funding has already been included in the forward estimates.

Rationalisation of funding for State and Territory Industry Training Advisory Bodies

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-5.1	-2.5	-5.3	-2.5

Explanation

The Government has decided to rationalise funding for state and territory Industry Training Advisory Bodies (ITABs) in order to encourage rationalisation of the high number of boards. Commonwealth funding for the states and territories will be reduced in 2002-03 and ceased in 2003-04.

ITABs provide advice to the state and territory training authorities and Ministers on the allocation of vocational education and training resources. This is not an area which requires ongoing Commonwealth supervision.

Reprioritisation of portfolio resourcing

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-8.2	-	-	-

Explanation

The Government has decided to reprioritise portfolio resourcing in 2002-03 to support a range of new education and training activities and to allow for the examination of priorities.

Review of Australia's veterinary profession to address the shortage of rural based large livestock veterinarians

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	0.1	-	-	-

Explanation

The Government will provide $100,000 towards a review of the veterinary profession. The review is to address the shortage of rural based large livestock veterinarians, with particular focus on the impediments within the education system that may contribute to the shortage.

See also the related expense measure titled Boosting rural veterinary services in the Agriculture, Fisheries and Forestry portfolio.

The General Sir John Monash Awards

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-	-	-	-

Explanation

The Government will provide seed funding of $250,000 in 2001-02 to the General Sir John Monash Foundation to assist with the establishment of the General Sir John Monash Awards.

This funding will assist with the establishment of an endowment fund to provide awards to Australian postgraduate students to study abroad at the world's leading universities in North America and Europe, while at the same time promoting international exchange by inviting foreign postgraduates to study in Australia.

This measure is being fully absorbed within the existing resources of the Department of Education, Science and Training.

University of Tasmania - Graduate Diploma in Environment and Planning

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	0.2	0.1	0.1	-

Explanation

The Government will provide $360,000 for the establishment of a Graduate Diploma in Environment and Planning at the University of Tasmania, including six scholarships worth $10,000 each over 2003 to 2005.

This initiative will build on the University of Tasmania's reputation in integrated social, economic and environmental planning, and to assist in meeting the growing demand for professionals in this field, particularly in Tasmania.

Employment and Workplace Relations

Funding to support the appointment of additional Members to the Australian Industrial Relations Commission

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Australian Industrial Registry	2.2	2.3	2.4	2.5

Explanation

The Government will provide additional funding of $11.2 million (including $1.8 million in 2001-02) to the Australian Industrial Registry to cover the cost of the additional four Presidential Members to the Australian Industrial Relations Commission appointed in September 2001.

Funding for 2001-02 will be provided as an equity injection in 2002-03.

Arrangements for the Third Employment Services Contract

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Employment and Workplace Relations	-	-0.3	-20.4	-44.0

Explanation

The Government will provide funding of $3,339 million over three years beginning 1 July 2003 for arrangements associated with the Third Employment Services Contract. The Government has decided to make a number of improvements to the Job Network to better target and further increase the effectiveness of employment services provided to job seekers and employers. These improvements will include:

• benefits to job seekers from improved Intensive Support customised assistance with all long term unemployed job seekers being guaranteed access to these services. Service delivery will also be simplified by ensuring that eligible job seekers can, for the duration of their unemployment, access the range of services available through a single Job Network provider of their choice.

In addition, the Government will introduce a number of new initiatives as part of the Third Employment Services Contract including:

• Job Seeker Accounts averaging $850 will be available to 165,000 eligible job seekers each year receiving Intensive Support at a cost of $420 million over three years. The Job Seeker Accounts may be used for expenses that will help a job seeker into employment including training, wage subsidies or transport.
• the Government will require all Job Network providers to provide a guaranteed minimum level of service to all job seekers. These minimum standards will support more active job search and will include assistance with resume and job application preparation, regular contact with the provider to assist with job search activities as well as lodgement of vocational profiles on to the Australian Job Search site to allow automatic job matching.
• an additional 8,500 Work for the Dole places will be funded per year at a cost of $81.8 million over three years.

Provision for this funding has already been included in the forward estimates. However, due to the combination of better targeting, increased effectiveness of services and the move to fixed price contracts, some savings are expected in the out years under the Third Employment Services Contract.

See also the related capital measure titled Arrangements for the Third Employment Services Contract in the Employment and Workplace Relations portfolio.

Environment and Heritage

Expansion of the market for Biofuels

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Australian Greenhouse Office	-	-	-	-

Explanation

The Government will reallocate $2.5 million in 2002-03 and 2003-04 from the Greenhouse Gas Abatement Programme to fund a study addressing market barriers to the uptake of biofuels. The study will include consideration of options for vehicle testing to determine appropriate standards for ethanol blend fuels.

Rationalisation of Australian Greenhouse Office Programmes

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Australian Greenhouse Office	-5.7	-	-	-

Explanation

The Government has identified programmes administered by the Australian Greenhouse Office for which take-up has been lower than expected. Savings can be achieved without impacting on the effectiveness of the Government's greenhouse strategy. The programmes affected include the Renewable Energy Commercialisation Programme and the Renewable Energy Showcase.

Development of sewerage schemes for Boat Harbour and Sisters Beach, Tasmania

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of the Environment and Heritage	1.0	1.0	1.0	-

Explanation

The Government will provide $3 million to the Waratah-Wynyard Council for a new environmentally sustainable sewerage system for the Sisters Beach and Boat Harbour communities.

National Oceans Policy

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
National Oceans Office	-	-	-	-

Explanation

The Government will provide funding of $9.1 million in 2002-03 to the National Oceans Office. The funding will provide for the further development of Regional Marine Plans and related activities as part of Australia's Oceans Policy. It will be used to finalise the South East Regional Marine Plan and for initial development of a marine plan for the Gulf of Carpentaria and the Torres Strait region. Provision for this funding has already been included in the forward estimates.

Additional funding for the Sydney Harbour Federation Trust

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Sydney Harbour Federation Trust	10.5	-	-	-

Explanation

The Government will provide funding to the Sydney Harbour Federation Trust for the management of the Trust's seven harbour sites. Funding will provide for the development of the long term management plans, which will involve extensive public consultation as well as assessments and surveys for site remediation and environmental management, building works and the natural and cultural values to be considered in planning for future uses. Funding will also provide for administration of essential maintenance and repair works, safety and security of Trust properties, and services and facilities to enable public access.

Family and Community Services

Additional funding for changes to social security arrangements with New Zealand

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	0.2	2.1	1.6	1.9

Explanation

The Government will provide an additional $5.8 million for activities required to fully implement the new social security arrangements with New Zealand that were announced on 26 February 2001. These funds will be used to:

• issue certificates of residence to New Zealand citizens who require confirmation of their Australian residence on or prior to 26 February 2001. The certificates will provide these people with the same access to Australian social security payments as existed prior to the new arrangements; and
• assess the severity of the disability of claimants for the Disability Support Pension who are New Zealand citizens (or former New Zealand residents) living in Australia, in order to determine if they meet the criteria for a New Zealand Invalidity Benefit.

This will ensure that eligible people receive appropriate benefits under Australia's social security arrangements.

Better monitoring of preparing for Work Activity Agreements

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-27.9	-67.1	-53.4	-55.6

Explanation

The Government has decided to implement formal reviews of the activity agreements that job seekers are required to negotiate when receiving Newstart or Youth Allowances. The reviews will take place whenever a job seeker exits one of the approved activities. The agreements outline mutual obligation responsibilities and activities designed to improve a person's chance of finding work. These reviews will lead to better activity agreements, thereby increasing the part-time and full-time employment prospects for these job seekers. It will also lead to easier identification of non-genuine job seekers.

The new arrangements will take effect from 1 July 2002 and are estimated to save $203.9 million over four years.

The Government announced this measure on 4 March 2002 as part of a package of changes to breaching rules.

Changes to the indexation provisions for Commonwealth support of the child care sector

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-	-	-	-

Explanation

From 1 April 2002 the Government changed the indexation date for payments to child care service providers and other children's services programmes from 1 April to 1 July each year. These programmes provide support for the establishment, operation and quality improvement of various child care services, and provide assistance to children's services such as playgroups and some youth services.

The movement to a 1 July indexation date will simplify the administration of support for the sector and is consistent with the indexation arrangements for Child Care Benefit.

The delay in the application of indexation from 1 April to 1 July in 2002 will result in a slightly different payment for 2001-02 compared to current arrangements. Service providers who were relying on indexation increases being paid earlier in the year will have the opportunity to apply for bridging payments to cover them during the transition to the new arrangements.

Compliance Package - assurance, research and development

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	0.6	-3.2	-3.7	-4.1

Explanation

The Government will provide funding for research and development into new areas of compliance activity. This will involve:

• extending the rolling programme of random sample surveys of benefit recipients. This will provide continuous data on the level and reasons for incorrect payments and the effectiveness of the overall control framework for managing payments; and
• piloting data matching techniques between Australia and the Netherlands. The pilot will identify people receiving pensions from the Netherlands that have not been declared to Centrelink (and vice versa). It will also identify any cases of pension payments continuing to deceased people.

This measure is expected to generate net savings of $10.3 million.

Compliance Package - prevention and detection

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-62.9	-60.6	-74.3	-76.1
Australian Taxation Office	2.9	2.0	2.1	2.1
Total	-60.0	-58.6	-72.2	-74.0

Explanation

The Government will put in place additional strategies for minimising fraud and incorrect payments of benefits by:

• improving processes for updating benefit recipient information;
• increasing the number of reviews of Rent Assistance payments by 100,000;
• piloting the use of widened criteria for selecting cases for compliance reviews. The pilot will increase the number of compliance reviews conducted by 43,000;
• building on the whole-of-government approach to targeting the cash economy; and
• automating the linking of Youth Allowance records with the records of parents and siblings who are also pension or other payment recipients. This change will allow the transfer of relevant information regarding parental circumstances that may affect the Youth Allowance recipient's entitlement.

This measure is expected to generate savings of $264.7 million over four years. It builds on the five year Strategic Framework for Minimising Incorrect Payment and Fraud announced in the 2001-02 Budget.

This is a cross-portfolio measure between the Department of Family and Community Services and the Australian Taxation Office.

Ex-gratia payments to volunteer firefighters for lost income - New South Wales bushfires 2001-02

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-	-	-	-

Explanation

The Government will make ex-gratia payments, at an expected cost of $2 million in 2001-02, to volunteer bushfire fighters who lost employment income while fighting fires during the declared NSW bushfire emergency period (24 December 2001 to 16 January 2002). The payments will be made to members of recognised firefighting organisations at a rate of $160 per day of employment income lost.

Extension of funding to support family relationships

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	5.3	-	-	-

Explanation

The Government will provide funding of $5.3 million to continue the Men and Family Relationship Services and Family Relationship Education Services programmes. These programmes aim to improve outcomes for families by providing early intervention education and counselling services.

Extension of the Family and Community Networks Initiative

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-1.4	-	-	-

Explanation

From 2002-03, the Government will provide $8.5 million to continue the Family and Community Networks Initiative. The programme provides funding for projects to build community strength and community networking in disadvantaged areas. It aims to improve coordination and collaboration between government jurisdictions and encourages the involvement of local business in community development.

Funding of $1 million will be provided in 2002-03, with funding of $7.5 million to be provided over the three years from 2003-04 to 2005-06. Reduced funding is provided in the first year as new community-building projects require a staged implementation, which allows for consultation and planning in the initial phase.

Provision for this funding has already been included in the forward estimates. Funding in 2002-03 is less than that already included in the forward estimates.

Extension of waiver provision for Newstart recipients

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	0.7	0.7	0.7	0.7

Explanation

The Government has decided to extend the activities available to Newstart recipients so that activity test breach penalties are waived for people participating in a programme of rehabilitation (under the Commonwealth Rehabilitation Service) or specified vocational training in a labour market programme. The new arrangements will take effect from 1 July 2002, at a cost of $2.8 million and will encourage Newstart recipients subject to activity test breach penalties to undertake programmes designed to improve their employment prospects.

The Government announced this measure on 4 March 2002 as part of a package of changes to breaching rules.

Four new international social security agreements

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-	3.2	1.9	1.5

Explanation

The Government will provide $6.5 million to extend the current network of reciprocal social security agreements to Switzerland, Norway, Croatia and Slovenia.

These agreements will improve access to income support to people whose adult lives are spent in both Australia and the agreement countries and will cover Age Pensions and Disability Support Pensions. Australia and the agreement countries will share financial responsibility for these pensions, each paying a proportion of their pension based on the length of residence or contributions that recipients have accrued in each country.

Funding for this measure covers changes to income support payments made by Australia and departmental costs associated with implementing the agreements.

The agreements are expected to commence from 1 January 2004.

Implementation of certain Australians Working Together measures

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-39.2	16.6	1.7	-

Explanation

The implementation of a small number of the 2001-02 Budget measures in the Australians Working Together package has been rescheduled to allow longer lead times in preparation for the changes. Most of the Australians Working Together measures will be implemented at the times originally announced.

The rescheduling involves:

• implementing the Working Credit measure from 28 April 2003 rather than 20 September 2002;
• deferring the introduction of the Improved Information Technology measure;
• deferring new funding for the Community and Business Engagement measure from 2002-03 to 2003-04; and
• better aligning the timing of evaluation activities with the implementation of the Australians Working Together package.

Additional funding of $1.1 million has also been provided for communication and consultation on the package.

National reciprocal transport concessions for State Seniors Card holders

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	7.4	5.7	5.9	6.4

Explanation

The Government will provide funding of $25.5 million to provide reciprocal travel concessions to enable State Government Seniors Card holders to travel at concessional rates on public transport outside their home state.

Funding is dependent upon states and territories reaching an agreement with the Commonwealth over the terms of the measure.

Provision for this funding was contained in the Contingency Reserve and therefore this measure has no effect on the fiscal or underlying cash balance.

Prime Minister's Community Business Partnership

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-	2.5	2.6	-

Explanation

The Government has decided to continue the Prime Minister's Community Business Partnership for an additional three years from 2002-03. The Partnership aims to develop and promote a culture of corporate and individual social responsibility within Australia (through advocacy, facilitation and recognition). The funding will assist in the delivery of the Business Engagement initiative announced as part of the Australians Working Together package of measures in the 2001-02 Budget.

Provision for funding in 2002-03 has already been made in the forward estimates.

Recognising and improving the work capacity of people with a disability

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Education, Science and Training	-	14.4	10.4	10.9
Department of Employment and Workplace Relations	-	12.4	12.9	13.5
Department of Family and Community Services	7.2	-13.9	-120.0	-279.2
Department of Health and Ageing	-	-0.1	-1.5	-3.5
Total	7.2	12.8	-98.2	-258.3

Explanation

This package of measures will focus on developing and improving the work capacity of people with disabilities and keep those with substantial work capacity more engaged with the labour market. To achieve this, the Government will provide additional funding over three years for over 73,000 new places in disability employment services, rehabilitation, the Job Network, education and training and the Personal Support Programme.

The Government will change the eligibility criteria for the Disability Support Pension (DSP) so that it is payable to people with very restricted work capacity (less than 15 hours per week compared to 30 hours per week currently). Centrelink will be able to offer a broader range of services, including rehabilitation, disability employment services and the Personal Support Programme to assist in reskilling for employment. Those aged 55 and over will no longer have their local labour market conditions taken into account in determining their eligibility for DSP. Most people affected by the new rules who are unable to find work or undertaking work related support programmes will receive or remain on Newstart Allowance and it is expected that better employment outcomes will be achieved for people with a disability under the new arrangements.

This measure will apply to all new DSP applicants from 1 July 2003 and will reduce the number of new claims approved for DSP. Current recipients (excepting those who are severely disabled and clearly have no work capacity or who are within five years of Age Pension age) will also be assessed under the new criteria within five years of implementation.

Administration of DSP will also be improved to ensure that only those with permanent conditions are granted the DSP, and that the potential benefits of mainstream training are properly considered.

Reduced penalties for non-attendance at interviews

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	34.0	30.0	33.3	35.0

Explanation

The Government has decided to modify arrangements for job seekers failing to attend job interviews, at a cost of $132.3 million.

From 1 July 2002, Centrelink will not be required to immediately impose a breach penalty on job seekers who fail to attend an interview and are unable to be contacted. Under the new arrangements, payments will be suspended until these job seekers contact Centrelink to explain their non-compliance, at which time Centrelink will decide whether a breach penalty is warranted. Those job seekers incurring a breach under this measure will be subject to an administrative breach penalty, which is significantly lighter than the activity test breach penalty currently applicable.

Requiring job seekers to contact Centrelink before payment can be restored will help encourage those individuals who have found work to advise Centrelink of their change in circumstances.

The Government announced this measure on 4 March 2002 as part of a package of changes to breaching rules.

Reprioritisation of departmental resources

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-5.0	-	-	-

Explanation

The Government will make a one-off reduction in the 2002-03 operating costs of the Department of Family and Community Services. The reduction will be achieved through reducing or deferring work on discretionary activities.

Restricting activity test exemptions for Newstart Allowance and Youth Allowance recipients

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-	-	-	-

Explanation

The Government will legislate to amend the temporarily incapacitated activity test provisions in the Social Security Act 1991.

The amendments will allow those temporarily incapacitated Newstart and Youth Allowance recipients who are unable to work for eight or more hours a week to still be offered some other suitable activity such as rehabilitation, disability employment services and the Personal Support Programme which will enable them to stay active and keep employment skills. Costs associated with offering this additional activity will be absorbed.

Revised funding for the Stronger Families and Communities Strategy

Expenses ($m)

	2002-03	2003-04	2004-05	2005-06
Department of Family and Community Services	-10.0	-6.5	-	-

Explanation

The Government has decided after a review of the underspending profile of the Stronger Families and Communities Strategy to revise down funding to levels more closely aligned with that currently expended. It is expected that present outcomes will be maintained under the revised funding levels.

Third Commonwealth State Territory Disability Agreement

Expenses ($m)

2002-03