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Family and Community Services

Recognising the contribution of carers

Carers provide a great service to the community through supporting and caring for those with disabilities. The Government values this contribution and is providing an additional $461 million to carers over five years from 2003-04 to 2007-08.

Table 8: Recognising the contribution of carers — Summary of measures

Table 8:  Recognising the contribution of carers — Summary of measures

  1. Total includes $255.0 million in 2003-04.
Carers — payment of one-off carer bonus

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services - - - -

The Government will provide $255 million in 2003-04 for a one-off lump-sum payment to eligible carers. A payment of $1,000 will be made in June 2004 to carers in receipt of Carer Payment in recognition of their contribution in their role of carer to someone with a disability. Recipients of Carer Allowance will also receive a payment of $600 in June 2004.

Carer Payment is an income tested income support payment paid to a person with limited other income who provides constant care for someone with a disability. Carer Allowance is not income tested and is an income supplement paid to people who live with, and provide daily care and attention to, a person (including children) with a disability.

Carers — expand eligibility criteria for Carer Allowance

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 10.3 29.6 32.1 34.8

The Government will provide $106.9 million over four years to extend eligibility for Carer Allowance to carers who provide substantial levels of care but do not currently live with the person for whom they care. These carers provide personal care, on a daily basis, in a private home to people with a disability or a severe medical condition, or to aged people who are frail. The measure is expected to assist an additional 13,270 private carers.

The measure will maintain the current eligibility rules for assessing the care receiver’s needs, and require the carer to provide at least 20 hours personal care per week. Personal care includes the provision of help with basic activities of daily living such as mobility, communication, hygiene and feeding.

Carers — increased access to respite for older carers

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 8.2 19.0 22.5 22.9

The Government will provide $72.5 million over four years, including $1.0 million for administration, to increase access to respite for ageing parents caring for adult children with a disability. Under the measure, parents aged 70 years and over who provide primary care for a child with a disability will be entitled to up to four weeks respite a year, and parents aged between 65 and 69 who need to be hospitalised will be entitled to up to two weeks respite a year.

The Government will approach State Governments to provide the respite services under bilateral agreements to be negotiated under the Commonwealth State Territory Disability Agreement. The provision of funding from the Australian Government for this measure is conditional upon matching funds being provided by the States so the total cost of $143.1 million associated with providing the services will be shared equally between the Australian Government and State Governments.

Carers — respite and information services for younger carers

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 4.0 7.4 7.6 7.7

The Government will provide $26.6 million over four years to fund respite and information services for young carers aged under 25 years.

The measure will provide up to five hours in-home respite care a week during school terms and up to two weeks of 24-hour respite care a year for up to 500 young carers. This will support young carers at risk of leaving education prematurely and not completing secondary or equivalent education.

The measure will also provide a range of information, referral and advice services to support young carers in managing challenges they may face as part of their caring role.

A more flexible and adaptable retirement income system — assets test exemption for income streams

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 2.0 -25.7 -53.9 -86.6
Department of Veterans’ Affairs 0.2 -2.3 -5.6 -9.9
Total 2.2 -28.0 -59.5 -96.5
  1. A negative number for revenue indicates a decrease in the fiscal balance.

The Government will change the treatment of certain income stream products in relation to payments made under the Social Security Act 1991 and the Veterans’ Entitlements Act 1986. These changes will provide greater choice for retirees in managing their financial affairs and make the retirement income system fairer by:

  • providing a 50 per cent assets test exemption for a new non-commutable income stream product which provides returns linked to the investment market; and
  • reducing the 100 per cent assets test exemption which is currently available to certain non-commutable purchased income streams to a 50 per cent exemption.

The measure is expected to lead to savings in income support payments of $194.1 million over four years and will cost $13.8 million over five years (including $1.2 million in 2003-04) to administer. Capital funding will be provided to Centrelink to administer the changes.

The new non-commutable income stream product will be assessed for tax purposes against the higher superannuation reasonable benefit limit, at a cost to revenue of $1.2 million over four years.

The changes will apply to income stream products purchased from 20 September 2004. The measure will not affect the assets test treatment of income stream products purchased before this date.

These changes are part of a broader package of measures to make the retirement income system more flexible and adaptable. The package includes largely offsetting revenue measures including the removal of the work test for superannuation contributions for people under the age of 65, and simplifying the superannuation guarantee notional earnings bases.

See also the related revenue measures titled A more flexible and adaptable retirement income system in the Treasury portfolio.

Further information can be found in the policy document A More Flexible and Adaptable Retirement Income System and in the press release of 25 February 2004 issued by the Treasurer.

Auslan interpreting services — enhanced access

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 2.6 4.8 5.5 5.4

The Government will provide $18.4 million over four years to meet the cost of providing accredited Auslan interpreter services to deaf people attending Medicare related consultations and certain specified private health consultations. This will include the establishment of a booking service to coordinate the Auslan interpreter services.

Provision of Auslan interpreters will assist communication between deaf people and health professionals. The exact range of services covered will be determined in consultation with representatives of the deafness sector.

Bushfires — ex gratia assistance to certain income support recipients

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 0.3 - - -
Department of Veterans’ Affairs .. - - -
Total 0.3 - - -

The Government will provide $0.5 million over two years (including $250,000 in 2003-04) for ex gratia payments to support approximately 50 income support recipients whose homes were destroyed in the 2002-03 summer bushfires.

A significant proportion of the houses destroyed in the bushfires have not yet been rebuilt. Under the Social Security Act 1991, the value of the property owned by income support recipients is included in the assets test 12 months after the property ceases being their principal place of residence. The application of this legislative requirement would have reduced the amount of benefit provided to some income support recipients who lost their homes and have not yet rebuilt or purchased a new home.

The measure will effectively continue income support payments, unchanged, to eligible affected homeowners for up to a further 12 months, that is, until January 2005.

Business services — security, quality services and choice for people with disabilities

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 21.5 22.2 25.1 30.3

The Government will provide up to an additional $99.1 million over four years for an assistance package to improve the viability of business services for people with a disability (also known as sheltered workshops) at risk of closure.

The package will include a flexible funding pool to provide assistance targeted to the individual circumstances of business services. Assistance will be provided to services in line with recommendations from an independent business panel and will be tied to a business plan with targets and timeframes to improve business viability. The Government will also introduce a disallowable instrument under the Disability Services Act 1986 that will provide scope for business services to phase in productivity based wages over a four year period.

This measure will help ensure that existing workers do not lose access to their place in a business service.

Further information can be found in the press release of 21 April 2004, issued by the Minister for Family and Community Services.

Centrelink — assessment of income and assets held in trusts and private companies

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 9.3 10.8 12.2 13.5

The Government will provide funding of $53.5 million over five years (including $7.8 million in 2003-04) to enable Centrelink to undertake the timely assessment of income and assets held by social welfare recipients with trusts or private companies. The additional funding will allow Centrelink to manage a higher than anticipated number of people in these circumstances.

This measure is related to the Government’s 2000-01 Budget initiative to better align the treatment of income and assets held in trusts and private companies with that of income and assets personally owned by individuals, for the purposes of the social security assets test.

The additional funding will help to ensure that the overall savings related to the original measure are realised. Significant additional savings are not anticipated due to the greater than expected number of low value trusts and companies that need to be assessed.

Centrelink — call centre supplementation

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 25.9 26.1 - -

The Government will provide funding of $67.4 million over three years (including $15.4 million in 2003-04) to ensure Centrelink is able to meet anticipated demand arising from customers making increasing use of call centres and a trend towards more complex and longer calls.

This initiative will expand the capacity of Centrelink’s call centre network by a further 1.95 million answered calls per annum.

Centrelink — implementation of funding model

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 26.1 26.3 - -
Department of Employment and Workplace Relations -26.1 -26.3 - -
Total - - - -

The Government is implementing a revised funding model for Centrelink. The model will involve considerably more detailed information on workload levels and programme delivery costs, providing greater transparency and accountability of Centrelink’s funding.

The revised model will be introduced for services delivered by Centrelink on behalf of the Department of Family and Community Services, the Department of Employment and Workplace Relations, and the Department of Education Science and Training.

Under the model, Centrelink’s infrastructure costs will be appropriated to the Department of Family and Community Services and a single payment made to Centrelink. This will involve a transfer of resourcing from the Department of Employment and Workplace Relations to the Department of Family and Community Services of $26.1 million in 2004-05 and $26.3 million in 2005-06.

Child Support Agency — new funding agreement

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 6.9 10.5 13.9 19.6

The Government will provide an additional $51 million over four years to enable the Child Support Agency to maintain its assistance to parents in meeting their responsibility for the financial support of their children after separation. This additional funding is expected to result in more reliable receipt of income for recipients of child support payments.

The increased funding will allow the Child Support Agency to provide services on behalf of a larger number of parents and children, with an expected average annual growth of 4.2 per cent in the number of cases to be handled. The additional funding is also required for an increasing number of complex cases such as non-wage and salary earners, non-lodgers of tax returns, and non-residents of Australia.

Commonwealth Seniors’ Health Card — Great Southern Rail service concession

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 0.4 0.4 0.5 0.6

The Government will provide $2 million over five years (including $0.1 million in 2003-04) to fund concessions for holders of the Commonwealth Seniors’ Health Card who travel on the new Great Southern Rail service (The Ghan) from Alice Springs to Darwin. The extended rail link commenced services in February 2004.

This measure extends the Government’s Acknowledging Older Australians package, announced in the 2001-02 Budget, that funded concessions to Commonwealth Seniors Health Card holders on Great Southern Rail services: The Overland, Indian Pacific and The Ghan.

Compliance — continuation of data-matching measures to improve control of incorrect payment and fraud

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services -1.4 -1.4 -1.5 -1.5

The Government will continue two elements of the 2000-01 Budget measure Compliance Strategy — measures to improve control of incorrect payment and fraud — detection. These elements provide for:

  • data matching reviews and enhancement of data matching detection systems, including internal data matching with Rent Assistance customers, to improve detection of incorrect payments and quality of matches; and
  • data matching with employment records held by the Department of Employment and Workplace Relations.

These measures returned savings of approximately $30 million in 2002-03. Provision for the continuation of savings of this order and associated administrative costs of $17.3 million over four years have already been included in the forward estimates.

The Government will discontinue a third element of the 2000-01 Budget measure. This element, which involved exchange of information from the public between the Australian Taxation Office and Centrelink tip-off recording systems, has not proven to be effective. Its termination will result in reduced administrative costs of $7.9 million and a corresponding loss of compliance savings of $2 million, leading to net savings of $5.9 million over four years.

Compliance — ‘Keeping the System Fair’ education campaign

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services -26.2 -60.8 -63.0 -64.9

The Government will develop and implement a national multimedia education campaign to encourage income support recipients to notify Centrelink of any changes to their circumstances that could affect their entitlement to income support payments.

The measure will build on the 2002 campaign ‘Support the System that Supports You’. Research showed that this campaign had a positive impact on awareness, attitude and behaviour, and improved levels of compliance with obligations among Centrelink customers.

The measure is expected to lead to savings in social welfare payments of $271.3 million and will cost $56.4 million to administer, leading to net savings of $214.9 million over four years.

Compliance — Parenting Payment (Single) relationship status reviews

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 1.2 .. -2.6 -2.8

The Government will provide funding to Centrelink to undertake 20,000 face-to-face interviews each year of Parenting Payment (Single) recipients who notify a change of address. The interviews will seek to verify the relationship status of customers and ensure they meet their ongoing obligations to notify Centrelink of changes in circumstances.

This measure builds on current compliance arrangements and is expected to lead to savings in social welfare payments of $2.4 million in 2005-06, $4.8 million in 2006-07 and $4.9 million in 2007-08 and will cost $1.2 million in 2004-05, $2.4 million in 2005-06, $2.2 million in 2006-07 and $2.2 million in 2007-08 to administer, leading to net savings of $4.1 million over four years.

Compliance reviews — expand data-matching

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services -9.1 -16.4 -16.7 -17.1

The Government will undertake an additional 25,000 reviews each year of income support payments through data-matching between job placement records held by the Department of Employment and Workplace Relations and Centrelink customer records. This measure is an extension of the 2000-01 Budget measure, Compliance Strategy: measures to improve control of incorrect payment and fraud — detection.

This measure is expected to lead to savings in social welfare payments of $71.1 million and will cost $11.9 million to administer, leading to net savings of $59.2 million over four years.

Compliance reviews — improved service profiling

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 3.0 -26.5 -36.1 -36.9

The Government will undertake an additional 147,000 customer reviews from 2005-06 to ensure correct income support payments for recipients of Age Pension, Austudy, Disability Support Pension, Newstart Allowance, Parenting Payment (Partnered and Single) and Youth Allowance (Students and Unemployed).

The measure will assist in ensuring the correct payments to recipients by improving the targeting of reviews.

This measure is expected to lead to savings in social welfare payments of $140.1 million and will cost $43.6 million to administer, leading to net savings of $96.5 million over four years.

Family assistance — additional family day care places

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 21.3 21.7 22.2 22.7

The Government will provide $94.3 million over five years (including $6.3 million in 2003-04) to expand the number of family day care places by a total of 4,000 in 2004 and subsequent years. This increase includes 2,500 places that were provided from January 2004 as announced by the Minister for Children and Youth Affairs on 5 December 2003. It also includes a further 1,500 places to be available from July 2004.

Family day care providers care for children in a home environment and provide flexible care, including long day, part-time and casual care. Funding includes an operational subsidy for providers of the additional places and Child Care Benefit for eligible parents.

Family assistance — additional outside school hours care places

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 34.6 32.2 27.6 28.0

The Government will provide $125.6 million over five years (including $3.3 million in 2003-04) to increase the number of outside school hours care places by a total of 40,000 in 2004 and subsequent years. This increase includes 10,000 places that were provided from January 2004 as announced by the Minister for Children and Youth Affairs on 5 December 2003. It also includes a further 30,000 places to be available from July 2004.

Outside school hours care provides quality care for school children before and after school, on pupil free days and during school holidays. Funding provided under this measure includes Child Care Benefit to be paid to eligible parents, funding for the establishment of new services, and subsidies to providers in disadvantaged areas to create additional places.

Family assistance — additional playgroup services

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 3.3 3.6 3.6 3.9

The Government will provide $14.9 million over five years (including $0.5 million in 2003-04) to support approximately 4,200 additional playgroups.

Playgroups are community based initiatives involving parents, carers and their children who are under school age, meeting together regularly to share experiences and help their children learn through playing.

Further information can be found in the press release of 5 December 2003, issued by the Minister for Children and Youth Affairs.

Family assistance — increased funding for the Child Care Support Programme

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 4.0 4.0 4.1 4.2

The Government will provide additional funding of $16.3 million over four years to enhance services provided through the Child Care Support Programme. This funding will improve access to child care for children with high support needs and increase support for rural, regional and Indigenous communities by establishing up to 13 new services in these areas.

The Child Care Support Programme (previously known as the Child Care Support Broadband) enhances access, affordability and quality in child care.

Family assistance — Stronger Families and Communities Strategy — continuation of funding for a refocussed early childhood strategy

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services - - - -

The Government will provide $267.5 million over four years to continue and refocus the Stronger Families and Communities Strategy as part of the previously announced families and communities package of $365.8 million over four years. The Strategy will have an emphasis on improving childhood outcomes through funding programmes that support early intervention to help children and families where there is a strong likelihood that those children would not otherwise grow up in a stable and supportive environment.

The refocussed Strategy will comprise four components:

  • Communities for Children — helping develop child-friendly communities that appreciate the importance of the early years and improve the health and wellbeing of families and the early development of young children.
  • Early Childhood — Invest to Grow — providing for the development and implementation of proven early childhood and parenting programmes, especially those developed within the community.
  • Local Answers — funding smaller, community-based projects which aim to build stronger families and communities.
  • Choice and Flexibility in Childcare — improving the flexibility of child care to better meet the needs of families.

This measure involves funding of $52.9 million in 2004-05, $70.1 million in 2005-06, $73.2 million in 2006-07 and $71.3 million in 2007-08. Provision for this funding has already been included in the forward estimates.

This measure was announced as part of the funding for the Stronger Families and Communities Strategy in the Prime Minister’s press release of 7 April 2004. The overall package of $365.8 million over four years includes continuing funding through Child Care Benefit for additional child care provided through the Strategy, and the Longitudinal Study of Australian Children announced in the 2000-01 Budget.

Household Organisational Management Expenses Advice Programme

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 2.7 2.5 2.6 2.6

The Government will provide $10.4 million over four years to continue the Household Organisational Management Expenses Advice Programme.

This programme was initially established as the 2001-02 Budget measure Family Homelessness Prevention and Early Intervention Pilots. The programme provides support and early intervention for families at risk of homelessness.

Household, Income and Labour Dynamics in Australia Survey — extended funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 1.2 6.7 7.2 7.8

The Government will provide $22.9 million over four years for four additional waves of data collection as part of the Household, Income and Labour Dynamics in Australia Survey. The survey provides longitudinal data that helps researchers analyse the effects of social and economic policy changes on family and household formation, labour market and education participation, income and financial situations, and retirement preparation.

Our Universities — exempt Commonwealth Learning Scholarships from social security income tests

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 2.7 5.0 7.3 9.0

The Government will provide funding of $24.6 million over five years (including $0.6 million in 2003-04) to provide additional assistance to holders of Commonwealth Learning Scholarships who receive income support payments. This initiative excludes the value of these Scholarships as assessable income for income testing purposes under the Social Security Act 1991.

Our Universities — exempt fee-waiver and fee-pay scholarships from social security income tests

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 1.0 0.8 1.0 1.1
Department of Veterans’ Affairs 0.1 0.1 0.1 0.1
Total 1.1 0.9 1.1 1.2

The Government will exempt the value of all fee-waiver and fee-pay scholarships offered in respect of the secondary, vocational education and training and higher education sectors from income testing under the Social Security Act 1991, and Veterans’ Entitlements Act 1986, at a cost of $5 million over five years (including $0.6 million in 2003-04).

Fee-waiver scholarships are those where all or part of the cost of the fees and/or charges associated with a course of study are waived. Fee-pay scholarships are those where the institution or other entity pays fees on behalf of the student and the student has no discretion over the use of funds.

Prime Minister’s Community Business Partnership

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services - 4.3 4.3 4.3

The Government will provide $12.9 million over three years to continue the Prime Minister’s Community Business Partnership until 2007-08. The Partnership comprises a group of leaders from the community and business sectors, appointed by the Prime Minister, to advise and assist the Government on issues concerning community business collaboration.

The aim of the Partnership is to develop and promote a culture of corporate and individual social responsibility within Australia, through advocacy, facilitation and recognition.

Provision for funding of $4.3 million in 2004-05 has already been included in the forward estimates.

Social security agreement with Ireland — revised agreement

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services .. .. .. ..

The Government will seek to modify its social security agreement with Ireland to bring it into line with other social security agreements and to ensure it is consistent with disability support pension reforms within Australia since 1991.

The revised agreement is expected to have a negligible impact on expenses.

Voluntary Work Initiative — continuation of funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services - - - -

The Government will continue to fund the Voluntary Work Initiative — Payment to Voluntary Work Agencies. The Voluntary Work Initiative assists the take-up and effectiveness of volunteer work among income support customers by providing assessment, referral and placement services for individuals, as well as training for organisations in volunteer management.

This measure will involve funding of $1.7 million in 2004-05, $1.8 million in 2005-06, $1.8 million in 2006-07 and $1.9 million in 2007-08. Provision for this funding has already been included in the forward estimates.

Welfare Reform Consultative Forum — extension

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 0.8 0.2 - -

The Government will provide an additional $1 million to extend the Welfare Reform Consultative Forum for a further two years. The Forum provides community based advice to Government on welfare reform issues and assists the Government to monitor the implementation of the Australians Working Together package.

Youth Allowance — waiver of certain debts

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Family and Community Services 7.1 - - -

The Government has decided to waive certain Youth Allowance debts at a cost of $9.2 million over two years (including $2 million in 2003-04). Debts waived will be those created as a result of overpayments associated with manual reviews undertaken as part of the Parental Income Test linking initiative, in cases where:

  • the person was receiving Youth Allowance at any time between 1 July 2002 and 26 April 2003, and was identified as incorrectly receiving a Parental Income Test exemption; and
  • the parent/parents of the Youth Allowee actively notified Centrelink of a change in their own financial circumstances; and
  • the debt arose because the Youth Allowee continued to receive a Parental Income Test exemption when, on the basis of the parent’s notified change in circumstances, the exemption should not have applied; and
  • the debt was raised in respect to any period between the dates of 1 July 1998 and 26 April 2003.

The waiver will apply from the date that the parent notified Centrelink of a change to their financial circumstances, and will cover the part of the debt that was accumulated when the Youth Allowance recipient was incorrectly receiving a Parental Income Test exemption.

This measure is related to the Parental Income Test initiative, announced in the 2002-03 Budget, which, from 26 April 2003, automatically links the records of parents on income support payments with those of their children who receive Youth Allowance.


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