Appendix A:
Policy decisions taken since the 2003-04 Budget

Expense measures

Agriculture, Fisheries and Forestry

Drought assistance — Exceptional Circumstances assistance

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Agriculture, Fisheries and Forestry	333.4	264.1	12.1	-
Department of Family and Community Services	9.5	7.1	1.8	-
Department of Health and Ageing	10.0	6.3	-	-
Total	352.9	277.5	13.9	-

The Government will provide an additional $644.3 million over three years for Exceptional Circumstances assistance to farmers in drought affected regions across Australia. This brings Exceptional Circumstances assistance to a total of $1,077 million. The Minister for Agriculture, Fisheries and Forestry has made several announcements since May 2003 declaring Exceptional Circumstances in additional regions across Australia. The amount of assistance may increase subject to the receipt of additional applications.

Exceptional Circumstances assistance comprises interest rate subsidies and income support to assist viable farm businesses and farm families adversely affected by exceptional climatic events, including drought. Eligible recipients are also provided with a health care concession card and access to Youth Allowance.

Exceptional Circumstances drought assistance is a cross-portfolio measure between the Departments of Agriculture, Fisheries and Forestry, Health and Ageing, and Family and Community Services. Funding for the Department of Agriculture, Fisheries and Forestry includes $9.8 million over three years for Centrelink to administer elements of Exceptional Circumstances assistance.

Further information can be found in the relevant press releases issued by the Minister for Agriculture, Fisheries and Forestry.

Drought assistance — interim support

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Agriculture, Fisheries and Forestry	50.3	7.2	-	-

The Government will provide an additional $57.5 million over two years for interim income support and interest rate relief to farmers in drought-affected regions across Australia. This brings interim support to a total of $136.4 million. The Minister for Agriculture, Fisheries and Forestry has made several announcements since May 2003 for new interim support in advance of State Government applications for Exceptional Circumstances assistance in those regions being assessed by the Australian Government.

Once a fully completed application for a particular region is received by the Australian Government and is deemed to show a prima facie case for Exceptional Circumstances declaration, interim income support is made available to eligible farmers on conditions equivalent to the Exceptional Circumstances Relief Payment. Interest rate relief on new and additional borrowings over two years was also made available to eligible farmers until 30 September 2003.

Access to interim income support is available for up to six months while the Exceptional Circumstances application is assessed. Should the Government declare Exceptional Circumstances in a region, interim income support ceases and standard Exceptional Circumstances assistance arrangements commence.

This funding includes $5.3 million over two years for Centrelink to administer this measure.

Further information can be found in the relevant press releases issued by the Minister for Agriculture, Fisheries and Forestry.

National Water Initiative — addressing water over-allocation in the Murray-Darling Basin

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Agriculture, Fisheries and Forestry	-	*	*	*

The Government will contribute $200 million over five years, commencing in 2004-05, to a $500 million package to address water over-allocation in the Murray-Darling Basin.

At the Council of Australian Governments (COAG) meeting of 29 August 2003, other Murray-Darling jurisdictions agreed to complement the Government’s contribution by committing funding as follows: New South Wales ($115 million), Victoria ($115 million), South Australia ($65 million) and the Australian Capital Territory ($5 million).

Details of the package are being negotiated by member jurisdictions of the Murray-Darling Basin and will be the subject of a specific Intergovernmental Agreement.

Provision for the Government’s funding contribution has been included in the contingency reserve pending finalisation of the funding profile.

Further information can be found in the COAG Communiqué of 29 August 2003.

Attorney-General’s

Combating trafficking in persons — whole of government strategy

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Federal Police	1.2	1.6	1.6	1.7
Attorney-General’s Department	0.2	0.1	0.1	0.1
Department of Immigration and Multicultural and Indigenous Affairs	0.3	0.4	0.4	0.4
Department of the Prime Minister and Cabinet	-	-	0.8	0.8
Department of Health and Ageing	0.2	0.1	0.2	0.2
Department of Family and Community Services	0.3	0.4	0.7	0.7
Total	2.2	2.6	3.8	3.9
Related capital ($m)
Australian Federal Police	0.5	-	-	-
Department of Immigration and Multicultural and Indigenous Affairs	..	-	-	-

The Government will provide $13.1 million (including $0.6 million capital funding) over four years to combat people trafficking and sexual servitude in Australia.

A range of initiatives, including the establishment of a mobile people trafficking strike team, improvements to legislation to comprehensively criminalise trafficking activity, and the provision of co-ordinated victim support measures will significantly enhance the detection, investigation and prosecution of traffickers, and help prevent trafficking of persons. The measure includes an amount of $0.5 million for surveillance and standard-issue equipment for AFP officers.

Further information can be found in the joint press release of 13 October 2003 issued by the Minister for Justice and Customs, the Minister for Immigration and Multicultural and Indigenous Affairs, the Minister for Foreign Affairs, the Minister Assisting the Prime Minister for the Status of Women and the Attorney-General.

HIH Insurance Group — collapse related prosecutions

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Office of the Director of Public Prosecutions	2.8	5.8	5.5	-

The Government will provide $14 million over three years to the Office of the Director of Public Prosecutions (DPP) to fund criminal prosecutions relating to the financial collapse of the HIH Insurance Group. A specialised unit will be established within the DPP dedicated solely to the pursuit of HIH matters.

Further information can be found in the joint press release of 3 July 2003 issued by the Treasurer and the Attorney-General.

National Threat Assessment Centre — establishment

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Security Intelligence Organisation	2.9	8.5	8.4	8.7
Attorney-General’s Department	0.1	0.4	0.3	0.3
Australian Secret Intelligence Service	-	0.6	0.5	0.5
Department of Transport and Regional Services	0.5	0.4	0.4	0.4
Department of Defence	0.7	0.5	0.5	0.5
Department of Foreign Affairs and Trade	-	-	-	-
Office of National Assessments	-	-	-	-
Total	4.2	10.2	10.1	10.4
Related capital ($m)
Australian Security Intelligence Organisation	1.5	0.9	0.2	0.2

The Government has provided $48.6 million over five years to establish a National Threat Assessment Centre (NTAC) (including $10.9 million in 2007-08). This funding includes capital of $3.1 million over five years for related equipment.

NTAC, which was established in October 2003, will be a 24-hour-a-day, seven-day-a-week operation from 1 July 2004. NTAC will strengthen Australia’s counter-terrorism capabilities by consolidating the threat assessment efforts of several agencies through the secondment of analysts into a single, dedicated unit based in the Australian Security Intelligence Organisation. Additional analysts will also be recruited to fully staff NTAC.

Further information can be found in the press release of 17 October 2003 issued by the Attorney-General.

Communications, Information Technology and the Arts

Regional Telecommunications Inquiry — Government response

Table A4: Summary of measures

1. A positive number for revenue indicates an increase in the fiscal balance.

 

The Government will provide funding of $186.8 million over four years as part of its comprehensive response to the Regional Telecommunications Inquiry. This funding includes $35 million to be refocussed within the Building Additional Rural Networks (BARN) programme to help fund the Higher Bandwidth Incentive Scheme.

The funding will ensure all Australians have access to adequate telecommunications services, enhance a range of existing services, and ensure that regional Australia continues to share equitably in the benefits of future technologies. A central objective of this strategy will be to provide access to affordable broadband services in regional Australia.

Further information can be found in the joint press release of 25 June 2003 issued by the Deputy Prime Minister and the Minister for Communications, Information Technology and the Arts.

Australian soccer — interim assistance

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Sports Commission	3.0	3.0	3.0	-
Related capital ($m)
Australian Sports Commission	-	-	-	-

The Government will continue its support for reform of soccer in Australia by providing a grant of up to $9 million over three years from 2003-04 and a loan of up to $6 million from 2003-04. Funds are tied to the implementation of the recommendations of the Report of the Independent Soccer Review Committee into the Structure, Governance and Management of Soccer in Australia and will be administered by the Australian Sports Commission.

The provision of loans from the Budget only affects the composition of the Australian Government’s financial assets. As such this loan does not impact on the fiscal balance.

Further information, including an outline of the terms and conditions which apply to the loan, can be found in the press release of 26 September 2003 issued by the Minister for the Arts and Sport.

Deaflympic Games — assistance

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Communications, Information Technology and the Arts	-	4.0	-	-

The Government will provide up to $4 million in 2004-05 for the Deaflympic Games in Melbourne in January 2005.

The cost of staging the Games will be met jointly by the Australian and Victorian Governments.

Further information can be found in the press release of 22 August 2003 issued by the Minister for the Arts and Sport.

Inaugural World Peace Game — contribution

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Sports Commission	0.1	-	-	-

The Government will contribute $50,000 in 2003-04 to the Western Australian Sports Centre Trust for the staging of the inaugural ‘World Peace Game’, a soccer match played on 16 November 2003 in Perth between the Iraqi National Football Team and an Australian team.

Further information can be found in the press release of 6 November 2003 issued by the Prime Minister.

Unsolicited electronic messaging (spam) regulatory regime

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Communications Authority	-	-	-	-

The Government will establish a regulatory regime in 2003-04 to manage unsolicited electronic communication or ‘spam’. The costs for the establishment and ongoing management of the regulatory regime and an information campaign will be funded from existing resourcing within the Communications, Information Technology and the Arts portfolio.

Further information can be found in the press release of 18 September 2003 issued by the Minister for Communications, Information Technology and the Arts.

Education, Science and Training

James Cook University — rehabilitation sciences facility

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Education Science and Training	3.7	2.4	-	-

The Government will provide funding of $6.1 million over two years to assist with the construction of a Centre of Excellence for Rehabilitation Sciences at the James Cook University’s Douglas site. The new Centre will address regional health workforce shortages and the health needs of rural and remote communities in North Queensland.

Further information can be found in the press release of 20 September 2003 issued by the Prime Minister.

Our Universities — Commonwealth Grants Scheme — increased flexibility

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Education Science and Training	-	11.0	11.6	9.8
Related capital ($m)
Department of Education Science and Training	-	-	-	-
Related revenue(a) ($m)
Department of Education Science and Training	-	-	0.4	1.1

1. A positive number for revenue indicates an increase in the fiscal balance.

 

The Government will provide additional funding of $27.1 million from 2005 to 2007 to ensure that higher education institutions are not significantly disadvantaged during the transition from current funding arrangements to the new Commonwealth Grants Scheme that commences in January 2005.

Additional funding of $5.3 million over the three years to 2006-07 will also be provided to allow higher education institutions to exceed their student enrolment target agreed under the Commonwealth Grants Scheme by five per cent, rather than the originally agreed two per cent. These students will be eligible for Higher Education Contribution Scheme (HECS) places (to be re-named HECS — HELP).

Under accepted accounting practice, the amount loaned to students is treated as a financial asset and therefore does not impact on the fiscal balance. Payment by students of the indexation component under the Higher Education Loans Programme is treated as interest revenue and impacts on the fiscal balance from 2005-06.

This funding builds on measures announced in the 2003-04 Budget.

Further information can be found in the press releases of 8 July 2003 and 17 September 2003 issued by the Minister for Education, Science and Training.

Our Universities — enhancements to higher education reform package

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Education Science and Training	6.0	40.4	47.4	59.7
Related capital ($m)
Department of Education Science and Training	-	-	-	-
Related revenue(a) ($m)
Department of Education Science and Training	-	-	-	2.4

1. A positive number for revenue indicates an increase in the fiscal balance.

 

As at 2 December 2003, the Government had announced a number of enhancements to the Our Universities higher education package that was announced in the 2003-04 Budget. These changes involve the provision of an additional $153.5 million over four years and increased revenue of $2.4 million in 2006-07, and comprise:

• an increase in the repayment threshold for the Higher Education Loans Programme (HELP) from the original $30,000 level announced in the 2003-04 Budget;
• an increase in funding ($50.9 million over four years) to assist disadvantaged groups to participate in higher education, through the Students with Disabilities and Higher Education Equity Programmes, and through increased resources under the Commonwealth Grants Scheme to support disadvantaged students undertaking bridging and pre-university courses;
• an increase in funding ($17.2 million over four years) to provide additional support for the Australian Maritime College in Tasmania, and the Batchelor Institute of Indigenous Tertiary Education in the Northern Territory, as national institutes;
• an expansion of the Commonwealth Accommodation Scholarships programme by an additional 1,500 scholarships from 2004 ($62.7 million over four years);
• an additional 1,400 student places in higher education institutions from 2007 ($10.8 million in 2006-07); and
• an increase in funding to further develop the University of Tasmania Medical School (a total of $12 million in 2004-05 and 2005-06).

Further changes announced after 2 December 2003 will be taken into account in the 2004-05 Budget.

Our Universities — regional universities loading extension

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Education Science and Training	4.7	4.8	5.1	5.3

The Government will provide additional funding of $19.9 million over four years from January 2004 to extend the loading for regional universities announced in the 2003-04 Budget. The funding will cover additional regional campuses, all their internal students and a proportion of external students supported by the Australian Government, at all regional campuses. This funding is a contribution to the higher costs of delivering education in regional campuses and builds on existing measures announced in the 2003-04 Budget.

Further information can be found in the press release of 17 September 2003 issued by the Minister for Education, Science and Training.

Environment and Heritage

Mandatory National Water Efficiency Labelling and Standards Scheme

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of the Environment and Heritage	-	-	-	-

The Government has agreed to the development and implementation of a mandatory national water efficiency labelling and standards scheme. This will involve the development of performance standards and a consumer product labelling scheme for household products such as shower heads, dishwashers, washing machines and toilets.

The cost of this initiative, $2 million over five years, will be met from funding allocated in the 2003-04 Budget for Urban Environment Initiatives.

Further information can be found in the press release of 2 October 2003 issued by the Minister for the Environment and Heritage.

Regional Natural Heritage Programme

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of the Environment and Heritage	1.0	4.5	4.5	-

The Government will provide funding of $10.0 million over three years commencing in 2003-04, for the establishment of a Regional Natural Heritage Programme. This programme will enable Australia to play a broader international role in the protection of biodiversity in critically endangered places in South-East Asia and the Pacific region.

Rotterdam and Stockholm Conventions — ratification

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of the Environment and Heritage	-	-	-	-
Department of Agriculture, Fisheries and Forestry	-	-	-	-
Department of Health and Ageing	-	-	-	-

The Government has agreed to ratify both the Rotterdam Convention on the Prior Informed Consent Procedure and the Stockholm Convention on Persistent Organic Pollutants.

Ratification of these conventions will promote shared responsibility and co-operative efforts amongst signatories in the international trade of certain hazardous chemicals and establish measures that reduce or eliminate the use of twelve persistent organic pollutants.

The cost of ratification and implementation will be met from within the existing resourcing of the Department of the Environment and Heritage, the Department of Agriculture, Fisheries and Forestry and the Department of Health and Ageing.

Further details can be found in the joint press release of 29 August 2003 issued by the Minister for Foreign Affairs and the Minister for the Environment and Heritage.

Family and Community Services

Bali Terrorist Attacks — assistance for victims and family members of victims

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	7.9	2.7	1.7	1.7
Department of Foreign Affairs and Trade	0.8	-	-	-
Total	8.7	2.7	1.7	1.7

The Government will provide additional funding of $14.8 million over four years to assist Bali victims and their families, including by:

• holding a commemoration of the first anniversary of the tragedy and assisting Bali victims and their families to attend the services in Bali on 12 October 2003 and Canberra on 16 October 2003;
• extending personal support services provided by Centrelink Family Liaison Officers until 30 June 2005;
• providing emergency financial assistance of up to $5,000 until 31 December 2004 to help Bali victims and their families address immediate financial needs and to provide financial advice; and
• providing rehabilitation and home, vehicle and work modifications assistance for out-of-pocket expenses.

See also the related expense measures titled Bali Terrorist Attacks — assistance for States and Territories for the initial treatment of victims in the Health and Ageing portfolio and Governor-General — improved support in the Prime Minister and Cabinet portfolio.

Carer Allowance (child) — enhanced qualification for automatic access

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	2.2	2.4	2.5	2.6

The Government has added or modified six disabilities on the List of Recognised Disabilities that give automatic access to the Carer Allowance, at a cost of $9.6 million over four years. The disabilities are Down Syndrome, Cystic Fibrosis, Epilepsy (uncontrolled), Haemophilia (moderate), Phenylketonuria, and Fragile X Syndrome. Carers of children with one of these conditions will now be automatically eligible for the Carer Allowance without the need for further medical assessment prior to the child’s sixteenth birthday.

Further information can be found in the press release of 12 August 2003 issued by the Minister for Family and Community Services.

Family Tax Benefit and Child Care Benefit — extension of time for top-up payments and claims

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	45.1	24.5	24.6	24.7
Australian Taxation Office	-	20.7	20.8	20.9
Total	45.1	45.2	45.4	45.6
Related revenue(a) ($m)
Australian Taxation Office	-0.1	-	-	-

1. A negative number for revenue indicates a decrease in the fiscal balance.

 

The Government has decided to modify the arrangements under which families can claim the Family Tax Benefit (FTB) and Child Care Benefit (CCB) at an expected cost of $181.2 million over four years.

The Government will extend by 12 months the amount of time families have to lodge their tax return in order to receive a top-up to their FTB and CCB payments when they have received less than their correct entitlement. The measure will also give families an extra twelve months to claim FTB and CCB as a lump sum payment. Families will now have two years after the end of the relevant income year in which to receive a top-up payment and to make a lump sum claim.

The changes will apply to the 2001-02 income year and subsequent income years. As a transitional measure, the Government will allow taxpayers who lodge an FTB claim with Centrelink between 1 July 2003 and 30 June 2004 in relation to the 2001-02 income year to claim a tax deduction for tax agent fees incurred in preparing these claims.

Further information can be found in the press release of 5 September 2003 issued by the Minister for Family and Community Services.

King Island and the Furneaux Group of Islands — ex gratia payments in lieu of Remote Area Allowance

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	1.7	-	-	-

The Government will provide funding of $1.7 million in 2003-04 to make ex gratia payments in lieu of Remote Area Allowance to eligible current and former income support recipients residing on King Island and the Furneaux Group of Islands between July 1990 and June 2001. A recent determination by the Australian Taxation Office, relating to the rezoning of the islands in 2001 as Special Tax Zone B, allowed relevant tax benefits to be back paid to July 1990. The ex gratia payment seeks to ensure that associated social welfare benefits relating to the remote zoning of the islands are passed on to eligible income support recipients.

Our Universities — income support treatment of fee-exempt scholarships

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	1.0	1.7	1.7	1.9

From 1 January 2004, the Government will provide more generous treatment for fee-exempt scholarships provided by higher education institutions by excluding their value from the assessable income of students who receive income support payments. This measure is expected to cost $6.3 million over four years.

Further information can be found in the press release of 17 September 2003 issued by the Minister for Education, Science and Training.

Pensioner Education Supplement — continuation of payment through study breaks

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	5.6	10.2	10.4	10.7
Department of Education Science and Training	0.6	0.9	0.8	0.7
Total	6.2	11.1	11.2	11.4

The Government has decided not to proceed with the 2003-04 Budget measure Pensioner Education Supplement — matching payments to study periods. Pensioner Education Supplement will now continue to be paid during breaks between shorter courses to encourage recipients to participate in further study. Students participating in full year or longer courses will continue to receive the benefit during their summer break where their course continues into the following year. This measure will involve a cost of $39.9 million over four years.

Personal counselling services in drought affected rural areas — funding extension

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	2.0	-	-	-

The Government will provide $2 million in 2003-04 to continue personal counselling services for drought affected communities in rural regions.

This is an extension of the measure Personal counselling services for drought-affected communities in rural regions that was announced in December 2002.

Stronger Families and Communities Strategy

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Family and Community Services	-	-	-	-

The Government will provide funding of $13 million in 2004-05 to continue initiatives under the Stronger Families and Communities Strategy.

The Stronger Families and Communities Strategy provides funding to encourage local communities, business, individuals and other levels of government to work together on agreed projects such as the establishment of play groups or to improve the skills of potential community leaders and volunteers.

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

Finance and Administration

Federal elections — improving the integrity of the electoral roll and increasing voter participation

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Electoral Commission	3.9	6.3	3.9	3.7
Related capital ($m)
Australian Electoral Commission	1.5	1.3	0.1	0.1

The Government will provide funding of $24.2 million over five years from 2003-04 (including $4.6 million in 2007-08) to enable the Australian Electoral Commission to implement the Government’s response to the Joint Standing Committee on Electoral Matters reports on the ANAO Audit Report No. 42 of 2001-02 Integrity of the Electoral Roll, and the Inquiry into the Conduct of the 2001 Federal Election. This funding includes capital of $3.1 million over five years to enhance the Commission’s information technology systems.

The Government’s response was tabled in Parliament on 16 October 2003.

New superannuation arrangements for Australian Government civilian employees

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Finance and Administration	-	-	-	-

The Government announced, on 17 October 2003, changed superannuation arrangements for new employees who join the Public Sector Superannuation Scheme (PSS) from 1 July 2005. The new arrangements will convert the PSS from a defined benefits scheme to a fully funded accumulation scheme for new members from 1 July 2005. The changes will not affect any existing Australian Government employee members of the scheme.

From 1 July 2005, all new PSS members will receive the same level of employer contribution, a rate of 15.4 per cent of salary, which is the actuarially determined average employer contribution rate under the existing arrangements. The proposed arrangements will allow the Australian Government to fully fund its superannuation obligations for all new employees.

Previous budget estimates assumed that the PSS would be closed to new employees and that both new employees and existing employees would be offered choice of fund from 1 July 2004. Estimates associated with this assumption have been removed from the forward estimates, resulting in an improvement in the underlying cash balance.

Compared to the previous estimates, there is a neutral impact on the fiscal balance because higher expenses for unfunded superannuation arrangements will be offset by a reduction in the estimated payments to funded superannuation arrangements, that would have been required if employees had been offered choice of fund.

Further information can be found in the press release of 17 October 2003 issued by the Minister for Finance and Administration.

Foreign Affairs and Trade

2005 World Expo in Aichi, Japan — Australian participation

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Foreign Affairs and Trade	1.7	26.8	6.5	-

The Government will provide funding of $35 million to support Australia’s participation at the 2005 World Expo in Aichi, Japan.

Australian participation in the 2005 World Expo will provide an opportunity to further develop Australia’s international economic and cultural linkages, including advancing our trade and investment priorities and showcasing Australia’s performing arts.

The funding will meet the cost of preparation, design, construction and operation of a pavilion during the six-month Expo in Japan from March to September 2005.

Bougainville — Transition Team as the successor to the Peace Monitoring Group

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	-	-	-	-

The Government has provided $5.5 million in 2003-04 to establish the Bougainville Transition Team following the cessation of the Peace Monitoring Group within Bougainville on 30 June 2003.

The Bougainville Transition Team is a small group of civilians who will assist the United Nations Observer Mission and weapons disposal process on Bougainville.

The cost of this measure is being fully absorbed from within the existing resourcing of the Australian Agency for International Development.

Further information can be found in the press release of 12 June 2003 issued by the Minister for Foreign Affairs.

East Timor — support for the police and justice institutions

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	-	-	-	-
Australian Federal Police	-	4.4	4.9	4.0
Total	-	4.4	4.9	4.0

The Government will provide funding of $41.9 million to assist the East Timor Government in a long term programme of capability building for the East Timor Police Force and justice sector from 2003-04 to 2007-08 following the withdrawal of the United Nations Police team in June 2004.

The Australian Agency for International Development (AusAID) and the Australian Federal Police will jointly administer the programme. AusAID will provide training and expertise in policy development, planning and management, and will provide targeted support to law and justice institutions. The Australian Federal Police will provide training to East Timorese police officers, with priority given to community policing.

The Australian Federal Police will be provided with an additional $16.8 million (including $3.5 million in 2007-08) for the implementation of this programme. A further $25.1 million will be absorbed from within the existing resourcing of the AusAID ($21.9 million) and the Australian Federal Police ($3.2 million).

Further information can be found in the joint press release of 25 August 2003 issued by the Minister for Foreign Affairs and the Minister for Justice and Customs.

Iraq — additional reconstruction assistance

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	-	-	-	-

The Government will provide an additional $20 million in 2003-04 to provide further reconstruction assistance to Iraq. This commitment will contribute to immediate humanitarian requirements in agriculture, water resources, food security, health and education.

The cost of this measure is being fully absorbed from within the existing resourcing of the Australian Agency for International Development.

Further information can be found in the press release of 24 October 2003 issued by the Parliamentary Secretary to the Minister for Foreign Affairs.

Nauru — extension of the Memorandum of Understanding to address unauthorised arrivals

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	nfp	nfp	nfp	-

The Government will provide a development assistance package to extend the Memorandum of Understanding (MOU) with Nauru subject to final negotiations. The extension of the MOU will maintain the existing arrangements for the offshore processing of unauthorised arrivals to 30 June 2004, with further extensions as necessary until the new Christmas Island facility becomes available.

In addition to funding in 2003-04, and subject to annual negotiations, the development assistance package will include funding in 2004-05 and 2005-06 to provide extended assistance directed towards health, education, infrastructure development and economic and budget advice.

Open Source Collection Unit — expansion

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Foreign Affairs and Trade	0.8	1.6	1.6	1.7
Related capital ($m)
Department of Foreign Affairs and Trade	0.1	-	-	-

The Government will provide additional funding of $5.8 million over four years (including $0.1 million capital funding) to expand the Open Source Collection Unit. This Unit is responsible for the collection, processing and dissemination of intelligence from foreign broadcast, electronic and print media in the public domain.

The additional funding will meet the operating costs of the expanded unit, including staff and support costs.

Philippines — counter-terrorism assistance

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	-	-	-	-
Department of Immigration and Multicultural and Indigenous Affairs	-	-	-	-
Total	-	-	-	-

The Government will provide $5.0 million over three years ($1.0 million in 2003-04, $1.8 million in 2004-05 and $2.2 million in 2005-06) for a package of practical counter-terrorism assistance to the Philippines Government.

The assistance will involve the provision of policing, immigration, port security and regional cooperation support and training to assist the Philippines to combat terrorism and strengthen the region’s counter-terrorism capacity.

The cost of this measure is being absorbed within the existing resourcing of the Australian Agency for International Development ($4.6 million) and the Department of Immigration and Multicultural and Indigenous Affairs ($0.4 million).

Further information can be found in the press release of 14 July 2003 issued by the Prime Minister.

Regional Trade and Financial Security Fund — Australian contribution

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	-	-	-	-

The Government will contribute US$1 million during 2003-04 to 2005-06 to a new Regional Trade and Financial Security Fund to be administered by the Asian Development Bank.

The fund will finance counter-terrorism capacity building in APEC developing economies, with a particular focus on port security measures and combating money laundering and terrorist financing.

The cost of this measure is being fully absorbed from within the existing resourcing of the Australian Agency for International Development.

Further information can be found in the press release of 21 October 2003 issued by the Prime Minister.

Solomon Islands — Regional Assistance Mission

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Agency for International Development	53.9	-	-	-
Department of Defence	97.7	12.6	-	-
Australian Federal Police	80.3	25.0	-	-
Department of Foreign Affairs and Trade	3.9	-	-	-
Total	235.8	37.6	-	-
Related capital ($m)Department of Defence	13.4	9.6	-	-
Australian Federal Police	16.7	-	-	-
Department of Foreign Affairs and Trade	1.5	-	-	-
Total	31.6	9.6	-	-

The Government is providing funding of $267.4 million in 2003-04 and $47.2 million in 2004-05 (including $41.2 million capital funding) to assist the Solomon Islands Government in the restoration of law and order and to support broad ranging reform in the Solomon Islands. These reforms are aimed at strengthening legal and economic institutions and building a stronger economy that will underpin improved future standards of living.

At the request of the Solomon Islands Government, Australia is leading the Regional Assistance Mission to the Solomon Islands (RAMSI). At its peak, RAMSI included the deployment of approximately 2,500 personnel with contributions from Australia, New Zealand, Fiji, Papua New Guinea, Tonga, Samoa, Vanuatu, Kiribati and the Cook Islands. This deployment included approximately 1,400 Australian Defence Force personnel who were deployed to provide protection for high risk policing operations and logistical support to RAMSI.

Australia’s commitment also includes contributions from the Australian Agency for International Development (AusAID), the Departments of Defence and Foreign Affairs and Trade and the Australian Federal Police. Personnel from the Departments of Finance and Administration and the Treasury, as well as other civilian advisers, have also been deployed to assist in the economic recovery of the Solomon Islands and have been funded through AusAID for these activities.

Further information on the assistance mission can be found in the Ministerial Statement to Parliament by the Prime Minister on 12 August 2003 and the press release of 28 October 2003 issued by the Minister for Defence.

Health and Ageing

MedicarePlus

Table A5: Summary of measures

MedicarePlus — assistance for GPs and specialists re-entering the workforce

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	0.3	4.4	8.7	13.4

The Government will provide $26.8 million over four years to support GPs and specialists seeking to re-enter the workforce after career interruptions.

This measure provides funding to 22 General Practice Education Training and Regional Training Providers to offer relevant courses to general practitioners within their regions who are currently not working. For patients there will be improved access to GP services as qualified practitioners re-enter the workforce.

This measure will also allow specialists to undertake up to three months of refresher training courses and mentor support, so they can more readily resume specialist practice. Financial incentives will also be available to specialist practices, mentors and colleges who participate. For patients there will be improved access to specialist services as qualified practitioners re-enter the workforce.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — better access to medical care for residents of aged care homes

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	0.2	15.8	14.2	17.7

The Government will provide $47.9 million over four years to encourage general practitioners to provide services to residents of aged care homes and enhance the quality of care provided.

This measure provides a new Medicare Benefits Schedule item for voluntary comprehensive medical assessments and funding for GPs to provide routine, urgent and after-hours care to residents, and work with aged care homes on quality improvement activities.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — grants to GP and specialist practices to encourage take up of HIC Online

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	1.0	2.4	2.9	0.8

The Government will provide $7.0 million over four years to extend assistance to GP and specialist practices to adopt ‘HIC Online.’ Metropolitan practices will receive $750, while rural practices will receive $1,000.

The measure will further assist doctors by providing them with access to a real-time electronic claiming service for Medicare Benefits Schedule rebates. For patients who are charged at the GP or specialist surgery, the doctors can choose to process the claim at the time of consultation and the Medicare Benefits Schedule rebate can be deposited into the patient’s bank account within a few days.

Under A Fairer Medicare, these grants were provided only to GPs who agreed to bulk bill patients with concession cards under the GP Access Scheme. Under this measure, grant payments will be made available to any practice installing HIC Online.

This measure extends the 2003-04 Budget measure A Fairer Medicare — encourage GP take up of HIC Online, bringing total funding to $29.8 million over four years.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — higher rebates for patients of certain non-vocationally registered GPs

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	3.0	6.4	6.4	6.5

The Government will provide $22.4 million over four years to encourage non-vocationally registered GPs to work in areas of workforce shortage and provide patients with greater access to more affordable services.

This measure will allow patients of doctors who are not vocationally registered, who were practising prior to the introduction of vocational registration in 1996 and who work in an area of workforce shortage to receive a higher Medicare rebate. Once these GPs have practised in an area of workforce shortage for at least five years, their patients will continue to be eligible for a higher rebate, regardless of where the GP is located.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — increased recruitment of qualified health professionals from overseas

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	10.7	77.7	152.0	192.1

The Government will provide $432.5 million over four years to increase the number of overseas-trained doctors by the equivalent of 725 full-time positions by 2007. These doctors will provide medical services in areas of workforce shortage.

This measure will attract doctors who are trained overseas through international recruitment strategies, streamlined approval processes, provision of assistance for employers to arrange placements, and better training and support. Of the total additional funding, $43.7 million over four years is for direct recruitment strategies and associated activities, while $388.8 million over four years is the flow-on costs to Medicare Benefits Schedule associated with these doctors delivering services that would not otherwise have been provided.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — more pre-vocational doctors to outer metropolitan, regional, rural and remote areas

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	2.4	21.7	22.5	23.7

The Government will provide $70.3 million over four years for up to 280 short-term supervised general practice placements each year for pre-vocational doctors, equivalent to around 70 full-time placements every year.

The placements will be offered in outer metropolitan, regional, rural and remote areas, increasing the availability of general practice services, and increasing access for patients in these areas. The placements will allow pre-vocational doctors to undertake general practice training and gain exposure to a general practice environment.

State and Territory governments will receive funding for hospitals to allow the release of pre-vocational doctors for the general practice placement, without compromising hospital service levels and patient care.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — payment for GPs who bulk bill children under 16 and concession card holders

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	136.0	263.8	273.7	283.1

The Government will provide $956.7 million over four years to pay GPs an additional $5 for every bulk-billed medical service provided to concession card holders and children aged under 16.

These two groups of patients receive about 60 per cent of GP services and this will ensure that GP visits remain affordable for these people. This measure will take effect from 1 February 2004.

This measure replaces the 2003-04 Budget measure A Fairer Medicare — GP incentive payments to bulk bill patients with concessions cards.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — safety net for major out-of-pocket medical costs outside hospital

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	21.3	55.9	58.2	63.8

The Government will provide $266.3 million over four years to introduce a new national Medicare safety net, which will cover 80 per cent of out-of-hospital out-of-pocket costs for Medicare Benefit Schedule items over a set threshold. This is an additional $199.3 million over four years than the safety net announced in A Fairer Medicare in the 2003-04 Budget, which was restricted to concessional patients only.

Under this measure, for concession card holders and families receiving the Family Tax Benefit (A), the safety net will cover 80 per cent of out-of-pocket costs for medical services provided out of hospital once an annual threshold of $500 in a calendar year is reached. For all other individuals and families, it will be available after an annual threshold of $1,000 of Medicare Benefits Schedule out-of-pocket costs per calendar year is reached.

The new safety net will cover services such as GP and specialist consultations, blood tests, psychiatry, X-rays, CT scans, tissue biopsy, radiotherapy, and pap smears.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — support for additional accredited GP training practices and GP supervisors

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	1.5	3.6	3.0	3.1

The Government will provide $11.1 million over four years to allow fully qualified GPs to educate and supervise greater numbers of junior doctors.

This measure will provide assistance to general practices that wish to become accredited training practices, provide higher payments for existing GP registrar supervisors within the General Practice Education and Training scheme, and provide training to allow 100 current GPs to become supervisors.

This is in addition to the 2003-04 Budget measure A Fairer Medicare — new GP training places and brings total funding to $200.6 million over four years.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — support for practice nurses through a new Medicare Benefits Schedule item

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	5.6	19.5	24.4	26.5

The Government will provide $76.0 million over four years for the inclusion of items on the Medicare Benefits Schedule for services such as immunisation and wound management provided by nurses in general practice on behalf of GPs.

This is in addition to the 2003-04 Budget measure A Fairer Medicare — more practice nurses and allied health workers for urban areas of workforce shortage and brings total funding to $139.1 million over four years.

This measure recognises the vital role that nurses can play in supporting and assisting general practitioners in the provision of high quality and comprehensive health care for their patients. Through this initiative, GPs will have more time available to focus on medical issues that most need their attention. This measure will take effect from 1 February 2004.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

MedicarePlus — support for rural and remote GPs

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	8.6	30.3	30.8	31.4

The Government will provide $101.2 million over four years for retention payments to eligible doctors under the existing Rural Retention Programme. This programme provides financial incentives to long serving doctors in rural and remote areas, encouraging general practitioners to stay longer in these areas. Incentive payments to GPs are based on length of service, the remoteness of their practicing service, and the level of services they provide.

This measure will also reimburse procedural GPs in rural and remote areas up to $10,000 per year for the costs of training. This allows rural and remote GPs to develop and maintain the skills necessary to provide the best service for their patients.

Under this measure, GPs in rural and remote areas who participate in the Practice Incentives Programme and have a procedural workload of 10 per cent or more of their total Medicare Benefits Schedule services will be eligible for a loading (up to a maximum of 30 per cent) in addition to their current rural loading.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

A Fairer Medicare — removal of GP Access Scheme

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	-47.3	-79.7	-102.5	-115.0

The Government will not proceed with the 2003-04 Budget measure A Fairer Medicare — GP incentive payments to bulk bill patients with concession cards saving $344.5 million over four years.

Under the original A Fairer Medicare package, the Government offered incentive payments under the GP Access Scheme to GPs who undertook to bulk bill all of their patients with concession cards. This has now been replaced with MedicarePlus — payment for GPs who bulk bill children under 16 and concession card holders.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

A Fairer Medicare — removal of private health insurance safety net for out-of-hospital Medicare expenses

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	-9.8	-24.2	-23.5	-24.3

The Government will not proceed with the 2003-04 Budget measure A Fairer Medicare  — new private health insurance safety net for out-of-hospital Medicare expenses saving $89.6 million over four years.

Under the original A Fairer Medicare package, the Government offered to provide the 30 per cent private health insurance rebate to people who took up a private health insurance product which provided a safety net for out-of-pocket medical expenses related to specialist, diagnostic or GP services provided out of hospital. This has now been replaced with MedicarePlus — safety net for major out-of-pocket medical costs outside hospital.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

A Fairer Medicare — removal of reducing up front costs for GP visits

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	-5.6	-1.9	-1.7	-1.7

The Government will not proceed with the 2003-04 Budget measure A Fairer Medicare — reducing up front costs for GP visits saving $10.9 million over four years.

Under this measure, GPs who agreed to participate in the GP Access Scheme were to claim the Medicare Benefits Schedule rebate direct from the Health Insurance Commission, improving general patient affordability by allowing patients charged above the Medicare Benefits Schedule rebate to pay only the gap amount charged by the GP.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

A Fairer Medicare — removal of signage from improved information and practice management

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	-0.6	-0.2	-0.2	-0.2

The Government will not proceed with the signage component of the 2003-04 Budget measure A Fairer Medicare — improved information and practice management saving $1.3 million over four years.

The signage component of this measure was to indicate to patients those GPs participating in the GP Access Scheme.

Further information can be found in the press releases of 18 November 2003 issued by the Prime Minister and the Minister for Health and Ageing.

Other measures in the Health and Ageing portfolio

Bali Terrorist Attacks — assistance to States and Territories for the initial treatment of victims

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	1.3	-	-	-

The Government will provide assistance to the States and Territories that incurred substantial public hospital costs in providing initial treatment to victims of the bombing in Bali, Indonesia on 12 October 2002.

To date, the Government has agreed to provide $1.3 million in 2003-04 to the Northern Territory in respect of costs associated with the reception, triage, and stabilisation of 105 severely injured patients in the days following the bombing.

The Government will continue to assess claims for assistance from other States and Territories as they come forward.

Deano’s Bone Marrow Donor Institute Walk for Leukaemia — contribution

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	-	-	-	-

The Government will provide $30,000 in 2003-04 to Deano’s Bone Marrow Donor Institute Walk for Leukaemia. The aim of the walk is to raise money for the Bone Marrow Donor Institute.

The cost of this measure is being fully absorbed from within the existing resourcing of the Department of Health and Ageing.

Hazel Hawke Alzheimer's Research and Care Fund — donation

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	-	-	-	-

The Government will provide $250,000 in 2003-04 to the Hazel Hawke Alzheimer's Research and Care Fund. The funding will be used to assist ongoing research into the prevention and management of Alzheimer’s, and to provide quality services, support and education to people living with dementia and to their carers.

The cost of this measure is being fully absorbed from within the existing resourcing of the Department of Health and Ageing.

Life Saving Drugs Programme — widening access to Cerezyme

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	2.1	4.9	5.5	6.2

The Government will widen the eligibility criteria for access to Cerezyme under the Life Saving Drugs Programme at a cost of $18.8 million over four years.

Cerezyme is used in the treatment of Gaucher’s Disease, a rare hereditary condition affecting the brain, which is associated with substantial disability and reduced quality of life, and in rare cases is life threatening. Without the Government subsidy, the annual cost to the patient of treating this disease with Cerezyme would be in the order of $240,000 for children and $350,000 for adults.

Under the widened eligibility criteria, which will come into effect from 1 January 2004, Cerezyme will become available to children under 16 years with relevant physical signs; to adults with lesser degrees of skeletal, haematological and gastrointestinal complications; and at higher dosage levels to some patients upon commencement of treatment.

Medical Indemnity — Exceptional Claims Scheme

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	0.6	0.2	0.6	0.1

As part of its package of measures to help address difficulties in medical indemnity insurance, the Government will assume liability for any damages payable against a medical practitioner that exceeds the practitioner’s medical indemnity insurance contract limit. This will be on a ‘claims incurred’ basis and legislation has been passed to give effect to the Scheme.

The Government has provided funding of $1.5 million over four years for the costs of administering the Scheme. Payments made in relation to claims under the Scheme are contingent on the decision of Courts or negotiated settlements where these are over the practitioner’s contract limit, which will be $20 million for most doctors. It is expected that claims and payouts above contract limits should be rare, if they occur at all.

Further information can be found in the press release of 23 May 2003 issued by the Prime Minister, and the joint press releases of 6 June 2003 and of 3 October 2003 issued by the Minister for Health and Ageing and the Minister for Revenue and Assistant Treasurer.

Medical Indemnity — extension of High Cost Claims Scheme

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	14.4	21.4	22.4	23.5

As part of its package of measures to help address difficulties in medical indemnity insurance, the Government established the High Cost Claims Scheme to reimburse medical indemnity providers 50 per cent of any amount over $2 million and up to the level of the doctor’s insurance cover limit for claims notified on and from 1 January 2003. The Scheme aims to minimise pressure on medical indemnity insurance premiums by reducing costs to medical indemnity insurers.

In October 2003, the Government decided to reduce the threshold for access to this Scheme from $2 million to $500,000, which will apply to claims notified on or after 22 October 2003, at an additional cost of $81.7 million over four years.

Further information can be found in the press release of 10 October 2003 issued by the Minister for Health and Ageing.

Medical Indemnity Policy Review

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	0.7	-	-	-

The Government will provide funding of $0.7 million in 2003-04 for the administrative costs of supporting the Medical Indemnity Policy Review, announced by the Government on 3 October 2003, and whose terms of reference were announced on 10 October 2003

This Review will report to the Prime Minister by 10 December 2003 on ways to ensure that medical indemnity arrangements in Australia: are financially sustainable; are affordable for doctors; allow doctors to continue to practise with confidence; and safeguard the interests of consumers and the community.

Further information can be found in the press release of 3 October 2003 issued by the Minister for Health and Ageing and the Minister for Revenue and Assistant Treasurer, and the press releases of 10 October 2003 and 16 October 2003 issued by the Minister for Health and Ageing.

Medical Indemnity Subsidy Scheme — extension

Expense ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Health and Ageing	1.2	1.2	1.2