Part 2: Payments for Specific Purposes
Community services
Payments to support state community services
In 2009‑10 the States will receive $2.5 billion in payments from the Commonwealth for state community services, an increase of 14.8 per cent compared with the $2.2 billion the States will receive in 2008‑09. This includes $4.8 billion in funding over five years to support state disability services through the National Disability SPP.
The additional funding includes an injection of $70 million recurrent base funding from 2008‑09 to the National Disability SPP. The Commonwealth is also applying a higher level of indexation to the base funding. A further $901 million from the Disabilities Assistance Package will be rolled into the base of the National Disability SPP.
Policy decisions included in this Budget that will be implemented through National Partnership payments include payments to the Northern Territory across areas including law and order, community safety, education, health, food security and interpreters as part of the Closing the Gap — Northern Territory Emergency Response.
From 1 January 2009, the Government has provided a financial contribution to support state disability services under the new National Disability SPP. This new National Disability SPP incorporates the following existing payments:
- $643 million in 2008‑09 under the existing disability services payment, which assists in the provision of accommodation support and other services for people with disabilities;
- $28 million in 2008‑09 under the existing young people with disabilities payments, which assists in reducing the number of younger people with a disability in residential aged care, with priority given to people under 50; and
- $104 million in 2008‑09 under the existing Disabilities Assistance Package, which assists in the provision of services for children with a disability and their families, and for older carers and their children.
Some payments under the former federal financial relations arrangements continue to be paid as National Partnership project payments.
Table 2.70 provides all the payments to the States to support state community services.
Table 2.70: Payments to support state community services
National Disability SPP
The Commonwealth will provide funding to the States under the National Disability SPP as a financial contribution to support state community services. At its meeting of 29 November 2008, COAG agreed to a one‑off payment of $70 million to the States in 2008‑09, and to roll the Disabilities Assistance Package into the base National Disability SPP. The 2009‑10 base funding for the National Disability SPP will be provided on an on‑going basis and indexed from 1 July 2010 by a growth factor.
Table 2.71: National Disability SPP
Growth factor
The Intergovernmental Agreement defines the growth factor for the National Disability SPP as the rolling five‑year average of year‑on‑year growth in nominal gross domestic product.
For the purpose of calculating indexation, the Disabilities Assistance Package will be deducted from the base to calculate 2010‑11 and 2011‑12 funding as the package already includes a high rate of escalation. The package will form part of the base to calculate funding for 2012‑13 onwards.
The growth factor is estimated to be 5.0 per cent in 2010‑11. The growth factor is lower than estimated at November 2008, owing to lower‑than‑anticipated growth in nominal gross domestic product.
National Partnership on Indigenous Economic Participation
The Commonwealth will provide $173 million over five years under the National Partnership Agreement on Indigenous Economic Participation. The National Partnership establishes that the Commonwealth and the States aspire to halving the gap in employment outcomes between Indigenous and non‑Indigenous Australians within a decade. Up to 13,000 Indigenous Australians will be assisted into employment over five years.
The National Partnership will significantly improve opportunities for Indigenous people to engage in private and public sector employment through a number of elements, including creating real sustainable employment in areas of government service delivery that have previously relied on subsidisation through the Community Development Employment Projects program, strengthening public sector Indigenous employment and career development strategies, and changes to current government procurement policies to maximise Indigenous employment.
Table 2.72: Estimated payments for the National Partnership on Indigenous
Economic Participation
National Partnership on Remote Service Delivery
The Commonwealth will provide $154 million to the States over five years and an additional $34 million in 2013‑14 under the National Partnership Agreement on Remote Service Delivery. The National Partnership implements a new service delivery model that clearly identifies service standards, roles and responsibilities and service delivery parameters to ensure that Indigenous Australians living in 26 selected remote locations receive and actively participate in services to close the gap in Indigenous disadvantage.
Locations have been agreed with respective jurisdictions having regard to a range of criteria, including a willingness to participate in the change process and rebuild social norms, and capacity for the locations to be developed and utilised as regional service hubs.
Table 2.73: Estimated payments for the National Partnership on Remote
Service Delivery
Other National Partnership payments for community services
A number of National Partnership payments will continue to be paid under the new federal financial arrangements. A description of each of the payments for state community services to be made in 2009‑10 is provided below.
Home and Community Care
The Commonwealth will provide $1.2 billion to States in 2009‑10 for the provision of services to frail older people and people with a disability and their carers through the Home and Community Care (HACC) Program. The HACC Program delivers high‑quality, affordable and accessible services in the community, such as domestic assistance and personal care.
Table 2.74: Estimated payments to the States for Home and Community Care
Home and Community Care — services for veterans
The Commonwealth will provide $18.0 million in 2009‑10 to support Home and Community Care program provision of community care services to veterans.
Table 2.75: Estimated payments to the States for Home and Community
Care — services for veterans
Aged care assessment
The Commonwealth will provide $76 million in 2009‑10 to the States to enable Aged Care Assessment Teams to comprehensively assess the care needs of frail older people and to establish their eligibility for appropriate residential aged care, transitional care and community care services. A proportion of the estimated payments to the States will be tied to achieving key performance indicators as specified in the National Partnership agreement.
Table 2.76: Estimated payments to the States for aged care assessment
Certain concessions for pensioners
The Commonwealth will provide $231 million in 2009‑10 to contribute towards the cost of certain concessions for pensioners.
Table 2.77: Estimated payments to the States for certain concessions for
pensioners
National reciprocal transport concessions for seniors card holders
The Commonwealth will provide $12 million in 2009‑10 to enable Seniors Card holders to access public transport concessions when they travel outside their home State.
Table 2.78: Estimated payments to the States for national reciprocal
transport concessions for seniors card holders
Closing the Gap — Northern Territory
This Budget provides funding of $807 million over three years to continue and strengthen the measures initiated under the Northern Territory Emergency Response (NTER). Of this funding, $209 million over three years will be provided to the Northern Territory Government to deliver initiatives across law and order, community safety, education, health, food security, and interpreters. The Australian Government will work in partnership with the Northern Territory Government and Indigenous communities to move the NTER into a long term development phase. The Australian Government will work to negotiate a National Partnership agreement with the Northern Territory Government by the end of June 2009.
Table 2.79: Estimated payments to the Northern Territory for Closing the Gap
Unaccompanied humanitarian minors
The Commonwealth will provide $3 million in 2008‑09 to assist humanitarian minors without parents in Australia and the families providing their care through early intervention, counselling and assistance by State welfare agencies.
Table 2.80: Estimated payments to the States for unaccompanied
humanitarian minors
National action plan to build on social cohesion, harmony and security
The Commonwealth will provide $1 million in 2008‑09 as a contribution to partnership projects with the States aimed at further integrating the migrant community into broader Australian society.
Table 2.81: Estimated payments to the States for a national action plan to
build on social cohesion, harmony and security
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