Portfolio Budget Statements 2010-11

Budget initiatives and explanations of appropriations specified by outcomes and Programs by agency


Buget 2010-11

Table of Contents





Department of Families, Housing, Community Services and Indigenous Affairs

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements


Equal Opportunity for Women in the Workplace Agency

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements


Aboriginal Hostels Limited

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements


Indigenous Business Australia

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements


Indigenous Land Corporation

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements


Torres Strait Regional Authority

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements


Minister for Families, Housing, Community Services and Indigenous Affairs

President of the Senate
Australian Senate
Parliament House
CANBERRA ACT 2600

Speaker
House of Representatives
Parliament House
CANBERRA ACT 2600

Dear Mr President
Dear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2010-11 Budget for the Families, Housing, Community Services and Indigenous Affairs portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it, the public.

Yours sincerely

The Hon. Jenny Macklin, MP signature

The Hon. Jenny Macklin, MP

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User Guide

The purpose of the 2010-11 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2010-11. In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

Abbreviations and conventions

The following notation may be used:

NEC/nec
not elsewhere classified
 
nil
..
not zero, but rounded to zero
na
not applicable (unless otherwise specified
nfp
not for publication
$m
$ million
$b
$ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

Should you have any enquiries regarding this publication please contact the Branch Manager, Budget Development Branch, in the Department of Families, Housing, Community Services and Indigenous Affairs on (02) 6244 5571.

A copy of this document can be located on the Australian Government Budget website.

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Portfolio Overview

Ministers and portfolio responsibilities

The Ministers and Parliamentary Secretaries responsible for the portfolio and its agencies are:

  • the Hon. Jenny Macklin, MP, Minister for Families, Housing, Community Services and Indigenous Affairs
  • the Hon. Tanya Plibersek, MP, Minister for Housing and Minister for the Status of Women
  • the Hon. Bill Shorten, MP, Parliamentary Secretary for Disabilities and Children’s Services and Parliamentary Secretary for Victorian Bushfire Reconstruction
  • Senator the Hon. Ursula Stephens, Parliamentary Secretary for Social Inclusion and the Voluntary Sector.

The portfolio has 12 outcome statements. The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) has seven. The Equal Opportunity for Women in the Workplace Agency has its own outcome statement. In pursuing the achievement of this outcome, it also contributes to the achievement of FaHCSIA’s Women’s outcome statement. Aboriginal Hostels Limited, Indigenous Business Australia, the Indigenous Land Corporation and the Torres Strait Regional Authority each have their own outcome statements. In pursuing the achievement of their outcomes, they also contribute to the achievement of the FaHCSIA Indigenous outcome statements.

Department of Families, Housing, Community Services and Indigenous Affairs

FaHCSIA is a key source of advice to the Australian Government on social policy and works in partnership with other government and non-government organisations to manage a diverse range of programs and services designed to support and improve the lives of Australians.

FaHCSIA has whole of government policy coordination responsibilities in relation to Indigenous affairs and women.

The Department is subject to the Financial Management and Accountability Act 1997 (FMA Act).

Equal Opportunity for Women in the Workplace Agency

Equal Opportunity for Women in the Workplace Agency (EOWA) is a statutory authority which administers the Equal Opportunity for Women in the Workplace Act 1999 and is subject to the FMA Act. The principal functions of EOWA are to promote employment for women on the basis of merit, promote equal opportunity, eliminate discrimination and foster workplace consultation between employers and employees on these issues. EOWA contributes to portfolio goals by working with business to develop work practices that improve women’s workforce participation in an environment free from discrimination.

Aboriginal Hostels Limited

Aboriginal Hostels Limited (AHL) is an Australian Government company subject to the Corporations Act 2001 and Commonwealth Authorities and Companies Act 1997 (CAC Act). AHL provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network. AHL contributes to the portfolio’s goals by helping Aboriginal and Torres Strait Islander people to improve their standard of living and achieve health, aged care, educational and employment-related goals.

Indigenous Business Australia

Indigenous Business Australia (IBA) is a statutory authority established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is subject to the CAC Act. IBA creates opportunities for Aboriginal and Torres Strait Islander people and communities to build assets and wealth.

IBA contributes to the portfolio goals by contributing to Indigenous economic development. To achieve this, IBA assists the Government in working with the private sector and local Indigenous people to encourage and foster Indigenous economic independence.

Indigenous Land Corporation

The Indigenous Land Corporation (ILC) is a statutory authority established under the ATSI Act and is subject to the CAC Act. The ILC assists Aboriginal and Torres Strait Islander people to acquire and manage Indigenous-held land so as to provide economic, environmental, social and cultural benefits. The ILC contributes to the goals of the portfolio by assisting in the delivery of sustainable benefits from land acquisition and by providing land management assistance.

Torres Strait Regional Authority

The Torres Strait Regional Authority (TSRA) is a statutory authority established by the ATSI Act and is subject to the CAC Act. TSRA formulates, implements and monitors the effectiveness of programs for Aboriginal and Torres Strait Islander people living in the Torres Strait and advises the Minister for Families, Housing, Community Services and Indigenous Affairs about Aboriginal and Torres Strait Islander affairs.

TSRA contributes to the goals of the portfolio by working to empower Aboriginal and Torres Strait Islander people living in the Torres Strait to determine their own affairs based on the Ailan Kastom (Island Custom) of the Torres Strait, which provides a source of unity and strength.

Aboriginal Land Commissioner

The Aboriginal Land Commissioner is an independent statutory office holder under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) and is subject to the FMA Act. The principal function of the Commissioner is to consider applications for claims to traditional land and to provide findings to the Minister for Families, Housing, Community Services and Indigenous Affairs for the granting of land.

Executive Director of Township Leasing

The position of Executive Director, Township Leasing is a statutory office established under the ALRA to enter into leases of Aboriginal-held land in the Northern Territory on behalf of the Commonwealth, and to administer sub-leases and other rights and interests derived from such leases.

A central function of the Executive Director is to enter into leases over townships on Aboriginal land in the Northern Territory in accordance with section 19A of the ALRA, following approval from traditional owners.

Northern Territory land councils

The Northern Land Council, the Central Land Council, the Anindilyakwa Land Council and the Tiwi Land Council are the four Northern Territory land councils established under the ALRA. The land councils are subject to the CAC Act. Each is an independent statutory body established to represent Aboriginal interests in a range of processes under the ALRA.

Registrar of Indigenous Corporations

The Registrar of Indigenous Corporations is an independent statutory office holder who administers the Corporations (Aboriginal and Torres Strait Islander) Act 2006 and is subject to the FMA Act. The Registrar of Indigenous Corporations registers and regulates Aboriginal and Torres Strait Islander corporations.

Social Security Appeals Tribunal

The Social Security Appeals Tribunal (SSAT) is a statutory body under the Social Security (Administration) Act 1999 and is subject to the FMA Act. The SSAT conducts merit reviews of administrative decisions made under a number of enactments, in particular social security law, family assistance law and child support law.

The tribunal has the power to review decisions independently of Centrelink and the Child Support Agency. It provides a review mechanism that is just, efficient, effective and informal. The SSAT contributes to the portfolio by ensuring that administrative decisions of Centrelink and the Child Support Agency are consistent with the legislation.

Wreck Bay Aboriginal Community Council

The Wreck Bay Aboriginal Community Council is an independent statutory body established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 and is subject to the CAC Act. The council holds title to land and provides services to the Aboriginal community of Jervis Bay.

Outback Stores Limited

Outback Stores Limited (OBS) is an Australian Government company subject to the Corporations Act 2001 and the CAC Act. OBS assists the health, employment and economy of remote Indigenous communities by managing quality, sustainable retail stores. OBS contributes to the portfolio’s goals by helping Aboriginal and Torres Strait Islander people to improve their standard of living and achieve health goals.

Coordinator-General Remote Indigenous Services

The Coordinator-General Remote Indigenous Services is a statutory office established under the Coordinator-General for Remote Indigenous Services Act 2009 and is subject to the FMA Act. The central functions of the Coordinator-General are to: monitor, assess, advise and drive the development and delivery of government services and facilities in each of the specified remote communities to a standard broadly comparable with that in non-Indigenous communities of similar size, location and needs elsewhere in Australia, and to monitor, assess, advise and drive progress towards achieving closing the gap targets in those same communities.

Figure 1: Families, Housing, Community Services and Indigenous Affairs portfolio structure and outcomes

Figure 1: Families, Housing, Community Services and Indigenous Affairs portfolio structure and outcomes

Figure 1: Families, Housing, Community Services and Indigenous Affairs portfolio structure and outcomes (continued)

Figure 1: Families, Housing, Community Services and Indigenous Affairs portfolio structure and outcomes (continued)

Portfolio Resources

Table 1 shows the total new resources provided to the portfolio in the 2010-11 budget year, by agency.


Table 1: Portfolio resources 2010-11
  Appropriation
Bill No. 1
$'000
Appropriation
Bill No. 1
$'000
Special
Appropriation
$'000
Receipts
$'000
Total
$'000
FaHCSIA1          
Administered appropriations 1,667,482 - 69,953,928 326,548 71,947,958
Departmental appropriations 547,959 14,417 - 27,240 589,616
Total: 2,215,441 14,417 69,953,928 353,788 72,537,574
EOWA          
Administered appropriations - - - - -
Departmental appropriations 3,002 - - 466 3,468
Total: 3,002 - - 466 3,468
AHL2          
Administered appropriations - - - - -
Departmental appropriations 42,655 6,920 - 11,482 61,057
Total: 42,655 6,920 - 11,482 61,057
IBA2          
Administered appropriations - - - - -
Departmental appropriations 38,458 33,170 - 95,540 167,168
Total: 38,458 33,170 - 95,540 167,168
ILC2          
Administered appropriations - - - - -
Departmental appropriations - - - 55,539 55,539
Total: - - - 55,539 55,539
TSRA2          
Administered appropriations - - - - -
Departmental appropriations 69,758 - - 6,385 76,143
Total: 69,758 - - 6,385 76,143
Portfolio Total 2,369,314 54,507 69,953,928 523,200 72,900,949
Less amounts transferred within Portfolio - - - - -
  Resources available within Portfolio:   72,900,949
  1. Total resourcing does not include the balance of Special Accounts carried forward from 2009-10.
  2. Funding under Appropriation Bill (No. 1) 2010-11 for agencies under the CAC Act is appropriated to FaHCSIA and then paid to each agency.

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Department of Families, Housing, Community Services and Indigenous Affairs

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements

Section 1: Agency overview and resources

1.1 Strategic direction

About FaHCSIA

The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) is a major player in the delivery of the Australian Government's social policy agenda. FaHCSIA's purpose is to improve the lives of Australians by creating opportunities for economic and social participation by individuals, families and communities.

FaHCSIA's outcomes reflect the seven core areas in which the Department seeks to assist people:

  1. Families and Children
  2. Housing
  3. Community Capability and the Vulnerable
  4. Seniors
  5. Disability and Carers
  6. Women
  7. Indigenous.

The detailed outcome statements for the seven outcome areas can be found in Section 2 of these Portfolio Budget Statements (PB Statements). To achieve the outcomes, FaHCSIA uses four key modes of business delivery:

  • Payments to individuals-FaHCSIA makes direct payments to individuals through Centrelink and other agencies. Primary examples include the Age Pension, the Disability Support Pension (DSP) and the Family Tax Benefit (FTB).
  • Working with the states and territories-FaHCSIA works with the states and territories to achieve outcomes in a number of shared policy areas, including housing, disability services, Indigenous reform, concessions and the welfare of children.
  • Payments for community services-FaHCSIA funds community-based organisations to deliver a range of local services, including family relationship services, emergency relief and disability employment services.
  • Policy development, leadership, advice and coordination-FaHCSIA supports its Ministers in their policy roles by providing advice on social policy, building the evidence base for action and in whole of government policy coordination for Indigenous affairs and for women.

Key priorities for 2010-11

In 2010-11, FaHCSIA will be focused on successful implementation of previously announced government reforms. Implementing Australia's first Paid Parental Leave scheme, due to commence on 1 January 2011, will be a key priority. For the first time, many Australian families, particularly low income earners, seasonal workers, casual workers, contractors and the self-employed will have access to paid parental leave. The scheme will ensure that parents can spend valuable time with their newborns while maintaining their connection to the workforce. It is estimated that 148,000 families each year will be eligible for the scheme.

The Secure and Sustainable Pension Reform package has been successfully implemented, and most components commenced from 20 September 2009. Two further measures are to be implemented from 1 July 2010 (improved pension advances and the option to receive the Pension Supplement quarterly). The Department will continue to monitor the impacts of the package, including its longer term effects. To respond to the long-term cost of demographic change and to reflect improvements in life expectancy, the Government will progressively increase the qualifying age for the Age Pension to 67 beginning in 2017.

As announced in the 2009-10 Budget, as part of the Secure and Sustainable Pension Reform package, the Government is introducing better and fairer assessment procedures for the Disability Support Pension (DSP). From 1 July 2010, DSP assessment will be simplified to fast-track more claimants who are clearly or manifestly eligible due to a catastrophic, congenital disability or cancer, enabling them to receive financial support more quickly. In cases which are not clear cut, people will now have their eligibility for DSP assessed by senior job capacity assessors. This will make sure claimants are seen by an experienced assessor and receive a thorough assessment.

Disability and carer reform is continuing, with the announcement in December 2009 of the Productivity Commission's inquiry into a national long-term care and support scheme, including the feasibility of a no-fault social insurance approach. The development of the National Disability Strategy and National Carer Strategy are intended to improve the outcomes from specialist and mainstream services for these groups. In addition, the Carer Recognition Bill 2010 will recognise in law the role and contribution of Australia's carers.

FaHCSIA is focusing its efforts on improving access to and alignment of its payments and programs. This will help to ensure that individuals, families and communities are better equipped to respond positively to opportunities and reduce the risk of prolonged or lifelong impacts from negative or major disruptive life events. This requires using our evidence base to best ensure that an appropriate mix of national and location-specific programs is delivered. FaHCSIA's relationships with policy and delivery partners are robust, and we are working together to meet both the mainstream and more complex needs of Australians. A key focus for the coming year is improved identification of people who are vulnerable or at risk of adverse outcomes at certain life transitions.

New measures, such as the Weekly income support payments to vulnerable Australians, will allow the most vulnerable customers to budget more easily. The weekly payment initiative gives people an opportunity to stabilise and improve their circumstances. The aim is to prevent people becoming homeless or losing connections to their community as a result of having difficulty managing their money. Customers who are eligible for weekly payments will receive service referrals and be encouraged to participate in activities designed to support them in their current circumstances, including help to address their financial difficulties and the causes of those difficulties (for example, through referral to alcohol, drug or gambling rehabilitation services).

The Government will implement a new income management scheme starting in the Northern Territory to protect children and families and help disengaged and vulnerable individuals. This forms part of the Government's commitment to progressively reforming the welfare and family payment system to foster responsibility and to provide a platform for people to move up and out of welfare dependence. Income management is a key tool in the reforms to ensure responsible use of welfare payments to promote strong families and positive child outcomes. Subject to the passage of legislation, from 1 July 2010, a new income management scheme will begin to be rolled out in vulnerable regions, targeted at individuals at risk. This will commence in the Northern Territory across urban, regional and remote areas, before an evaluation during 2011-12 to inform future rollout.

The National Framework for Protecting Australia's Children 2009-2020 is a key component of the Government's effort to assist vulnerable children. As part of the framework, FaHCSIA is working with state and territory governments and the non-government sector to develop the National Standards for Out of Home Care. The guiding objective of the national standards is that children living in out-of-home care receive the same opportunities to develop and become healthy children and young people as those not in out-of-home care. The national standards will be finalised in 2010.

The Government will build on its recognition of Forgotten Australians and former child migrants, and the apology offered in November 2009, to help support those among the more than 500,000 affected Australians who suffered abuse and neglect while in out-of-home care last century. Many of these Australians continue to face a range of complex issues as a result of their experiences in out-of-home care. The new National Find and Connect Service for the Forgotten Australians and former child migrants, announced in this Budget, will deliver an Australia-wide coordinated family tracking and support service for care leavers to locate personal and family history files and reunite with members of their family where that is possible.

Housing is a crucial component in providing a stable foundation for families and individuals, particularly those who are managing or emerging from difficult life events. The Bulk Verification of Community Housing Rent measure in the 2010-11 Budget will improve access to and retention of Rent Assistance for tenants of community housing organisations. The Social Housing Initiative, announced as part of the Nation Building-Economic Stimulus Plan, continues to be rolled out across Australia. The initiative helps disadvantaged Australians, particularly those who are homeless or at risk of becoming homeless, and ensures that current tenants benefit from upgrades to their housing. The Department will continue to support the National Housing Supply Council and work with key stakeholders to improve housing supply, particularly affordable housing.

FaHCSIA's lead role in the Government's closing the gap targets has helped focus coordinated effort towards improving outcomes for Indigenous Australians. A collaborative, whole of government approach to Indigenous affairs ensures better alignment of overall effort to achieve the Government's commitments under the National Indigenous Reform Agreement. Similarly, within its own areas of responsibility, FaHCSIA is working to better integrate efforts to achieve improvements in safety and wellbeing for remote communities in the Northern Territory, better service delivery for Indigenous people, with a particular focus on remote communities, and economic participation among Indigenous Australians. FaHCSIA also works to facilitate strong engagement among Indigenous Australians in these areas. The Prime Minister's statement to the Parliament on 11 February 2010 emphasised the extent of the challenge ahead in meeting the closing the gap targets and the need for sustained effort with a focus on improving access to both mainstream and Indigenous-specific programs.

FaHCSIA's approach to service delivery has undergone significant change over the past year. The Department has improved the way it engages with its service delivery partners, through changes in the way we service remote areas and work with key service delivery partners.

The introduction of the Indigenous Remote Service Delivery National Partnership is a significant step in improving the delivery of health, education, employment and other services to 29 priority remote Indigenous locations. The partnership is establishing a new remote service delivery model that clearly identifies service standards, roles and responsibilities, and service delivery parameters. Whole of government coordination arrangements are now in place, including locally based Government Business Managers and Indigenous Engagement Officers, along with Regional Operations Centres.

FaHCSIA will also play an important part in the service delivery reform announced in December 2009, which is being led by the Department of Human Services. The reforms are designed to improve access to social, health and welfare services. FaHCSIA will play a role in contributing to the direction of the reforms and ensuring that service offers meet the needs of its clients.

The launch of the National Compact on 17 March 2010 will assist the Government to form innovative partnerships with the Third Sector (community and not-for-profit organisations) to address many long-term social challenges and improve outcomes for vulnerable Australians. The Government will work with the sector to develop an overarching Commonwealth action plan in 2010 addressing eight priority action areas.

The Department has significant responsibilities in managing key elements of the Council of Australian Governments (COAG) reform agenda, in the areas of housing, disability and Indigenous reform. It is expected that the COAG Reform Council's reports on national agreements in these areas will be published in May 2010. While FaHCSIA maintains policy and performance management responsibility for these elements of the COAG reform agenda, funds that were previously paid to the states and territories by FaHCSIA are now appropriated to the Department of the Treasury (the Treasury).

Economic and fiscal context for the 2010-11 Budget

Australia has performed comparatively well throughout the global financial crisis, although the effects of the downturn were felt by many Australians. FaHCSIA played a major part in delivering assistance to individuals and families to help them through this period, including one-off payments to individuals and families, more support for emergency relief and financial counselling, and a major investment in social housing.

The decisions reflected in these PB Statements are based on responsible financial management, a thorough scrutiny of existing effort and the prioritisation of new spending. Savings have sought to balance short-term fiscal constraints, longer term sustainability of outlays and the needs of disadvantaged Australians.

The third Intergenerational Report, released on 1 February 2010, identifies population ageing as one of the Government's key challenges in the lead-up to 2050. One of the implications for FaHCSIA is the need for a continuing focus on the sustainability of payments and programs. By June 2050, around 22 per cent of the Australian population is projected to be aged 65 and over, highlighting the importance of the Secure and Sustainable Pension Reform package and other measures that promote the ongoing sustainability of FaHCSIA's income support payments.

Concern about housing affordability and supply continues. In response, COAG has commissioned the development of a national housing supply and affordability reform agenda to be progressed as a matter of priority in 2010. FaHCSIA is working with the Treasury to progress this work.

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1.2 Agency resource statement

Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.


Table 1.1: FaHCSIA resource statement-Budget estimates for 2010-11 as at Budget May 2010
    Estimate of prior year amounts available in
2010-11
$'000
+ Proposed at Budget
2010-11
$'000
= Total Estimate
2010-11
$'000
Estimated Available Appropriation
2009-10
$'000
Ordinary Annual Services - Bill 11              
Departmental appropriation              
Prior year departmental appropriation2   108,355   -   108,355  
Departmental appropriation3   -   547,959   547,959 573,133
s. 31 Relevant agency receipts4   -   27,240   27,240 27,639
Total   108,355   575,199   683,554 600,772
Administered expenses              
Outcome 1   600   202,728   203,328 183,132
Outcome 2   -   135,987   135,987 118,962
Outcome 3   2,678   204,899   207,577 195,296
Outcome 4   -   4,995   4,995 5,000
Outcome 5   14,600   453,964   468,564 458,881
Outcome 6   -   20,805   20,805 27,475
Outcome 7   20,067   606,159   626,226 715,681
Total   37,945   1,629,537   1,667,482 1,704,427
Non appropriated revenue   -   35,769   35,769 41,542
Payments to CAC Act Bodies   -   150,871   150,871 143,071
Total Administered   37,945   1,816,177   1,854,122 1,889,040
Total ordinary annual services A 146,300   2,391,376   2,537,676 2,489,812
Other services - Bill 25              
Administered expenses              
Departmental non-operating              
Equity injections   -   14,417   14,417 44,056
Previous years' programs   -   -   - 87,986
Total   -   14,417   14,417 132,042
Administered non-operating              
Payments to CAC Act bodies - non-operating   -   40,090   40,090 36,960
Total              
Total other services B -   54,507   54,507 169,002
Total Available Annual Appropriations   146,300   2,445,883   2,592,183 2,658,814
Special Appropriations              
Special Appropriations limited by criteria/entitlement              
Aboriginal Land Rights (Northern Territory) Act 1976   -   194,187   194,187 178,819
Social Security (Administration) Act 1999   -   50,261,087   50,261,087 46,007,545
A New Tax System (Family Assistance) (Administration) Act 1999   -   18,859,435   18,859,435 19,203,034
Northern Territory National Emergency Response Act 2007   -   2,593   2,593 4,815
Paid Parental Leave   -   636,626   636,626 -
Total Special Appropriations C -   69,953,928   69,953,928 65,394,213
Total Appropriations excluding              
Special Accounts   146,300   72,399,811   72,546,111 68,053,027
Special Accounts              
Opening balance6   2,210,526   -   2,210,526 2,103,933
Appropriation receipts7   -   193,987   193,987 314,285
Non-Appropriation receipts to              
Special Accounts   -   290,779   290,779 282,350
Total Special Accounts D 2,210,526   484,766   2,695,292 2,700,568
Total resourcing   2,356,826   72,884,577   75,241,403 70,753,595
A+B+C+D

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations
  -   -384,948   -384,948 -494,316
Total net resourcing for FaHCSIA   2,356,826   72,499,629   74,856,455 70,259,279

Table 1.1: FaHCSIA resource statement-Budget estimates for 2010-11 as at Budget May 2010 (continued)

Third Party Payments from and on behalf of other agencies

2010-11
$'000
2009-10
$'000
Centrelink has the authority to make the following payments to customers on behalf of FaHCSIA:
Special Appropriations - A New Tax System (Family Assistance)(Administration) Act 1999 19,002,663 19,650,137
Special Appropriations - Social Security (Administration) Act 1999 50,316,250 46,026,290
Special Appropriations - Paid Parental Leave8 441,152 -
Annual Appropriations - Ex-Gratia and Act of Grace Payments 3,630 10,286
DVA has the authority to make the following payments to customers on behalf of FaHCSIA:
Special Appropriations - Social Security (Administration) Act 1999 68,755 67,078
Payments made to other agencies for the provision of services
Australian Taxation Office 607 671
Centrelink - 69,301
Department of Veterans' Affairs 199 200
Medicare Australia 9,222 9,220
Payments made to CAC Act bodies within the portfolio
Aboriginal Hostels Limited 49,575 40,630
Indigenous Business Australia 71,628 72,010
Torres Strait Regional Authority 69,758 67,391
  1. Appropriation Bill (No. 1) 2010-11.
  2. Estimated adjusted balance carried from previous year.
  3. Includes an amount of $22.8 million in 2010-11 for the Departmental Capital Budget (DCB) (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners'.
  4. s. 31 relevant agency receipts-estimate.
  5. Appropriation Bill (No. 2) 2010-11
  6. Estimated opening balance for special accounts. For further information on special accounts, see Table 3.1.2, Section 3.
  7. Appropriation receipts from FaHCSIA annual and special appropriations for 2010-11 included above.
  8. Subject to passage and enactment.

Note: All figures are GST exclusive.

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1.3 Budget measures

Budget measures relating to the Department of Families, Housing, Community Services and Indigenous Affairs are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2: FaHCSIA 2010-11 Budget measures

 

Program 2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2013-14
$'000
Expense measures            
Outcome 1 - Families and Children            
Drought assistance - Family Support Drought Response Teams program -
extension
1.1          
Administered expenses   - 6,613 - - -
Departmental expenses   - 1,094 - - -
Total   - 7,707 - - -
Drought policy reform - pilot of new measures in Western Australia1 1.1          
Administered expenses   - 945 - - -
Departmental expenses   - - - - -
Total   - 945 - - -
National Find and Connect Service for the Forgotten Australians and former child migrants 1.1          
Administered expenses   - 3,615 6,443 6,323 4,468
Departmental expenses   - 933 1,218 965 867
Total   - 4,548 7,661 7,288 5,335
Family Tax Benefit Part A - improved participation requirements for 16 to 20 year olds 1.2          
Administered expenses   -1,097 -20,863 -20,924 -21,227 -21,480
Departmental expenses   393 503 269 176 176
Total   -704 -20,360 -20,655 -21,051 -21,304
Family Tax Benefit Non-lodger Fortnightly Payment Prohibition - more flexible arrangements2 1.2          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Paid Parental Leave - implementation 1.3          
Administered expenses   300 2,900 - - -
Departmental expenses   - - 123 97 71
Total   300 2,900 123 97 71
Outcome 3 - Community Capability and the Vulnerable        
Income management in cases of child neglect and by voluntary choice - continuation of trial 3.1          
Administered expenses   - 5,258 - - -
Departmental expenses   - 1,206 - - -
Total   - 6,464 - - -
School Enrolment and Attendance Trial - continuation3 3.1          
Administered expenses   - - - - -
Departmental expenses   - 71 - - -
Total   - 71 - - -
Adventure playgrounds 3.2          
Administered expenses   - 658 670 682 694
Departmental expenses   - - - - -
Total   - 658 670 682 694
Queensland Premier's Disaster Relief Appeal - Commonwealth contribution 3.2          
Administered expenses   -250 - - - -
Departmental expenses   - - - - -
Total   -250 - - - -
Western Australia's Children's Health Telethon - donation4 3.2          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
An Innovation and Higher Education System for the 21st Century - Student income support - additional funding for service delivery3 3.3          
Administered expenses   - - - - -
Departmental expenses   - 385 78 78 79
Total   - 385 78 78 79
Act of Grace Payments - ongoing arrangements 3.4          
Administered expenses   318 262 272 282 293
Departmental expenses   - - - - -
Total   318 262 272 282 293
NSW Mid-North Coast floods - assistance for March 2009 event 3.4          
Administered expenses   295 - - - -
Departmental expenses   - - - - -
Total   295 - - - -
NSW Mid-North Coast floods - assistance for November 2009 event 3.4          
Administered expenses   10,983 - - - -
Departmental expenses   - - - - -
Total   10,983 - - - -
Samoan tsunami and Sumatran earthquakes - assistance5 3.4          
Administered expenses   537 - - - -
Departmental expenses   - - - - -
Total   537 - - - -
South West Queensland floods - assistance 3.4          
Administered expenses   11,220 1,316 - - -
Departmental expenses   - - - - -
Total   11,220 1,316 - - -
Victorian storms - assistance 3.4          
Administered expenses   2,070 290 - - -
Departmental expenses   - - - - -
Total   2,070 290 - - -
Western Australian bushfires - assistance 3.4          
Administered expenses   578 - - - -
Departmental expenses   - - - - -
Total   578 - - - -
Outcome 4 - Seniors            
Extend qualifying service to service in Ubon for the period 31 May 1962 to 27 July 19626 4.1          
Administered expenses   - -940 -981 -1,046 -1,061
Departmental expenses   - - - - -
Total   - -940 -981 -1,046 -1,061
Clarke Review - lower the age to establish domicile to under 21 years for British Commonwealth and Allied veterans6 4.1          
Administered expenses   - -18 -19 -20 -21
Departmental expenses   - - - - -
Total   - -18 -19 -20 -21
Clarke Review - provide Australian Defence Force British nuclear test participants with compensation equivalent to non-warlike or hazardous service6 4.1          
Administered expenses   - -2,359 -2,658 -2,956 -3,266
Departmental expenses   - - - - -
Total   - -2,359 -2,658 -2,956 -3,266
Special Disability Trusts - greater accessibility 4.1          
Administered expenses   - 31 104 196 314
Departmental expenses   - - - - -
Total   - 31 104 196 314
War Widow/er pension - removal of entitlement for new claimants who enter a de facto relationship6 4.1          
Administered expenses   - 19 76 129 186
Departmental expenses   - - - - -
Total   - 19 76 129 186
Outcome 5 - Disability and Carers            
Clarke Review - reclassify submarine special operations that were conducted in the period 1978 to 1992 as warlike service6 5.2          
Administered expenses   - -597 -621 -643 -667
Departmental expenses   - - - - -
Total   - -597 -621 -643 -667
F-111 Deseal/Reseal maintenance workers - further support6 5.2, 5.3          
Administered expenses   -6 -17 -18 -19 -19
Departmental expenses   - - - - -
Total   -6 -17 -18 -19 -19
Job Capacity Assessment - more efficient and accurate assessments for Disability Support Pension and employment services3 5.2, 5.3, 5.4          
Administered expenses   - 150 -22,012 -199,886 -350,457
Departmental expenses   - 188 1,559 1,943 2,027
Total   - 338 -20,453 -197,943 -348,430
National Disability Strategy - coordination7 5.4          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Community engagement strategy for people with disability8 5.4          
Administered   - - - - -
Departmental   - - - - -
Total   - - - - -
Outcome 7 - Indigenous            
Community Development Employment Projects - indexation reform 7.1          
Administered expenses   - -442 -661 -3,310 -4,384
Departmental expenses   - - - - -
Total   - -442 -661 -3,310 -4,384
Community Development Employment Projects - redirection 7.1          
Administered expenses   - -3,000 - - -
Departmental expenses   - - - - -
Total   - -3,000 - - -
Remote Service Delivery National Partnership Flexible Funding Pool - establishment 7.4          
Administered expenses   - 17,000 17,000 12,000 -
Departmental expenses   - - - - -
Total   - 17,000 17,000 12,000 -
Indigenous Communities Strategic Investment program - reduction9 7.4          
Administered expenses   -1,650 -15,510 -15,840 -12,620 -2,630
Departmental expenses   - - - - -
Total   -1,650 -15,510 -15,840 -12,620 -2,630
Indigenous Land Corporation - new funding arrangements10 7.4          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
National Congress of Australia's First Peoples - establishment11 7.4          
Administered expenses   2,952 6,234 6,795 8,341 4,911
Departmental expenses   - - - - -
Total   2,952 6,234 6,795 8,341 4,911
Cross-Outcome            
Social Security Appeals Tribunal - training            
Outcome 1 1.1, 1.2          
Administered expenses   - - - - -
Departmental expenses   - -79 -80 -80 -81
Outcome 4 4.1          
Administered expenses   - - - - -
Departmental expenses   - -23 -23 -23 -23
Outcome 5 5.4, 5.5 `        
Administered expenses   - - - - -
Departmental expenses   - -60 -60 -61 -61
Total   - -162 -163 -164 -165
Family Relationship Services for Carers - continuation12            
Outcome 1 1.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Outcome 5 5.3          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - -   -
Stronger, fairer, simpler tax reform - standard deduction for work-related expenses and the cost of managing tax affairs13            
Outcome 1 1.2          
Administered expenses   - - - 57,622 147,451
Departmental expenses   - - - - -
Outcome 4 4.2          
Administered expenses   - - - - 760
Departmental expenses   - - - - -
Total   - - - 57,622 148,211
Stronger, fairer, simpler tax reform - 50 per cent discount for interest income13            
Outcome 1 1.2          
Administered expenses   - - 26,860 26,626 26,253
Departmental expenses   - - - - -
Outcome 4 4.2          
Administered expenses   - - - 5,448 5,826
Departmental expenses   - - - - -
Total   - - 26,860 32,074 32,079
Bulk Verification of Community Housing Rent            
Outcome 1 1.2          
Administered expenses   - 13 27 29 31
Departmental expenses   - - - - -
Outcome 4 4.1          
Administered expenses   - 102 220 233 248
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - 170 366 388 414
Departmental expenses   - - - - -
Total   - 285 613 650 693
Fraud prevention and compliance - Centrelink debts - enhanced capability for Centrelink to detect and respond to emerging fraud risks14            
Outcome 1 1.2          
Administered expenses   - -637 -1,250 -1,518 -1,535
Departmental expenses   - - - - -
Outcome 4 4.1          
Administered expenses   - -2,493 -4,687 -5,759 -5,794
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - -4,738 -8,375 -9,274 -9,102
Departmental expenses   - - - - -
Total   - -7,868 -14,312 -16,551 -16,431
Fraud prevention and compliance - Centrelink debts - improvements to the tax garnishee process2, 14            
Outcome 1 1.2          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Outcome 4 4.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Migration Program - allocation of places for 2010-1115            
Outcome 1 1.2, 1.3          
Administered expenses   * * * * *
Departmental expenses   * * * * *
Outcome 5 5.2          
Administered expenses   * * * * *
Departmental expenses   * * * * *
Total   * * * * *
Office of the Coordinator-General - continued operations16            
Outcome 2 2.2          
Administered expenses   - - - - -
Departmental expenses   -205 -125 -45 - -
Outcome 7 7.2          
Administered expenses   - - - - -
Departmental expenses   -205 -125 -45 - -
Total   -410 -250 -90 - -
A new scheme of income management in the Northern Territory11            
Outcome 3 3.1          
Administered expenses   260 11,311 13,677 15,164 15,742
Departmental expenses   423 3,790 3,257 3,158 3,179
Outcome 7 7.4          
Administered expenses   - 750 - - -
Departmental expenses   - 437 - - -
Total   683 16,288 16,934 18,322 18,921
Streamlining notification processes for compensation recipients            
Outcome 3 3.3          
Administered expenses   - - - - -
Departmental expenses   - - 13 12 12
Outcome 4 4.1          
Administered expenses   - - -1,584 -2,844 -3,821
Departmental expenses   - 53 21 8 8
Outcome 5 5.2, 5.3          
Administered expenses   - - -5,614 -9,976 -10,562
Departmental expenses   - 187 76 30 30
Total   - 240 -7,088 -12,770 -14,333
Weekly income support payments to vulnerable Australians2            
Outcome 3 3.3          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Outcome 4 4.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Fraud prevention and compliance - Centrelink debts - review of non-standard debt repayment rates2, 14            
Outcome 4 4.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Reform of Community Development Employment Projects (CDEP) program in the Torres Strait            
Outcome 4 4.1          
Administered expenses   - 1 13 63 66
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - 3 54 260 271
Departmental expenses   - - - - -
Outcome 7 7.1          
Administered expenses   - -11,847 -17,835 -8,500 -6,070
Departmental expenses   - 240 59 - -
Total   - -11,603 -17,709 -8,177 -5,733
Total expense measures            
Administered   26,510 -5,820 -30,502 -145,812 -212,941
Departmental   406 8,675 6,420 6,303 6,284
Total   26,916 2,855 -24,082 -139,509 -206,657
Capital measures            
Outcome 1 - Families            
National Find and Connect Service for the Forgotten Australians and former child migrants 1.1          
Administered capital   - - - - -
Departmental capital   - 1,638 - - -
Total   - 1,638 - - -
Outcome 5 - Disability and Carers            
National Disability Strategy - coordination17 5.4          
Administered capital   - - - - -
Departmental capital   - - - - -
Total   - - - - -
Total capital measures            
Administered   - - - - -
Departmental   - 1,638 - - -
Total   - 1,638 - - -

Prepared on a Government Financial Statistics (fiscal) basis.
 

  1. This measure is led by the Department of Agriculture, Fisheries and Forestry. The full measure description and package details appear in Budget Paper 2 under the Agriculture, Fisheries and Forestry portfolio.
  2. This measure has no fiscal impact on the Commonwealth. Further details can be found in Budget Paper 2.
  3. This measure is led by the Department of Education, Employment and Workplace Relations. The full measure description and package details appear in Budget Paper 2 under the Education, Employment and Workplace Relations portfolio.
  4. The cost of this measure, $0.5 million (administered) in 2009-10, will be met from within existing resources.
  5. This measure has been previously reported in the 2009-10 Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) Portfolio Additional Estimates Statements (PAES). Financial implications for this measure have been updated due to a revision to the number of customers receiving the payment.
  6. This measure is led by the Department of Veterans' Affairs. The full measure description and package details appear in Budget Paper 2 under the Veterans' Affairs portfolio.
  7. The cost of this measure, $5.0 million (departmental) over 4 years, will be met from within existing resources.
  8. The cost of this measure, $0.5 million (administered) in 2010-11, will be met from within existing resources.
  9. This measure has been previously reported in the 2009-10 FaHCSIA PAES. Financial implications for this measure have been updated since PAES to provide funding for the Remote Service Delivery Flexible Funding Pool.
  10. Funding for this measure has already been provided in the forward estimates. Further details can be found in Budget Paper 2.
  11. This measure has previously been reported in the 2009-10 FaHCSIA PAES.
  12. The Government will continue this measure at a cost $2.2 million in 2010-11 and 2011-12 and $2.3 million in 2012-13 and 2013-14. This funding has already been included in the forward estimates.
  13. This measure is led by the Australian Taxation Office. The full measure description and package details appear in Budget Paper 2 under the Treasury portfolio.
  14. This measure is led by the Department of Human Services. The full measure description and package details appear in Budget Paper 2 under the Human Services portfolio.
  15. Funding for this measure will be agreed post Budget. This measure is led by the Department of Immigration and Citizenship. The full measure description and package details appear in Budget Paper 2 under the Immigration and Citizenship portfolio.
  16. This measure is led by the Department of the Prime Minister and Cabinet. The full measure description and package details appear in Budget Paper 2 under the Prime Minister and Cabinet portfolio.
  17. The cost of this measure, $1.2 million (capital) in 2010-11, will be met from within existing resources.

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2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. For each program, the performance indicators used to assess and monitor the performance of FaHCSIA in achieving government outcomes are specified.

The Department has just completed the second year of a two-year review process implementing revised performance information to meet the requirements of Operation Sunlight. In the first year, the Department developed new outcome statements, and program and program component objective statements and deliverables. It conducted a major review of key performance indicators, with the main focus of the work being on Bill 2 programs, special appropriations and special accounts, particularly on income support programs. This year, the focus has been on Bill 1 programs. There have also been some stylistic changes to indicators to ensure greater consistency across the Department; those changes have not altered the nature of the information presented.

All changes to the substance of key performance indicators have been footnoted and the reasons explained.

The portfolio glossary has been expanded to provide further assistance in interpreting key performance indicators. Definitions of terms such as 'payment accuracy' are included in the glossary.

FaHCSIA's National Agreements and National Partnership Agreements under the Federal Financial Relations framework

National Agreements set out the objectives, outputs and outcomes that will be jointly achieved between the Commonwealth, states and territories. National Partnership Agreements provide a mechanism to enable policy or project collaboration and, in most cases, provide for financial transfers between the Commonwealth and the states to support that collaboration. Figure 2 provides a summary of those agreements that FaHCSIA has direct policy portfolio responsibility for, or to which it significantly contributes. FaHCSIA has a leading agency role for most of these, with the exception of those footnoted below.

Further information about COAG can be found at http://www.coag.gov.au. Further performance information about specific National Partnership Agreements can be found at the Council for Federal Financial Relations website: http://www.federalfinancialrelations.gov.au


Figure 2: National Agreements that FaHCSIA has portfolio responsibility for, or to which FaHCSIA significantly contributes

Agreements

Outcomes

1     2     3     4     5     6     7    

National Agreements

National Affordable Housing Agreement  

       

National Disability Agreement        

 

National Indigenous Reform Agreement            

National Partnerships

Indigenous

Closing the Gap - in the Northern Territory            

Indigenous Early Childhood Development1

           
Indigenous Economic Participation2            

Remote Service Delivery            

Community Services

Certain Concessions for Pensioners and Senior Card Holders    

     
Home and Community Care3        

   
Victorian Bushfire Recovery Plan    

       

Housing

Homelessness  

     

Nation Building and Jobs Plan - Social Housing  

       

Social Housing  

       

Remote Indigenous Housing  

       

  1. The Department of Education, Employment and Workplace Relations (DEEWR) is the lead government agency for the National Partnership Agreement on Indigenous Early Childhood Development; the family support requirements are being provided by FaHCSIA.
  2. DEEWR is the lead agency, with responsibility for overall reporting for the National Partnership Agreement on Indigenous Economic Participation, and is working closely with FaHCSIA, Commonwealth line agencies and jurisdictions on its implementation.
  3. The Department of Health and Ageing is the lead agency for the National Partnership Agreement on Home and Community Care, and is working closely with FaHCSIA to provide integrated community services.

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Outcome 1: Families and Children

Improved child development, safety and family functioning through support services for all Australians, payments for low and medium income families with children and child support policy.

Outcome 1 strategy

FaHCSIA's programs and payments for families are designed to provide assistance at key transition points and are particularly targeted to vulnerable and at-risk families and children. Assistance is provided for the birth of a child; parenting, particularly during early childhood; and family relationship problems and separation.

Through the payment of Family Tax Benefit (FTB) Part A, FaHCSIA makes a significant contribution to assist parents with the direct costs of raising children. The highest level of assistance goes to low and middle income families and reduces financial stress within those families. FTB Part B provides additional assistance to single parents and couple families with one main income earner.

Australia's first Paid Parental Leave (PPL) scheme will further assist family functioning and child development by enabling more parents to spend time with their children during the crucial early months without losing their connection to the labour market. People who are not eligible for PPL or who choose not to participate will continue to be assisted with the costs of newborn children through the Baby Bonus and FTB.

FaHCSIA's programs include services targeted to vulnerable and at-risk families. Through the creation of the Family Support Program, services are being consolidated into an integrated service delivery model providing comprehensive, family-focused, child-centred services.

The National Framework for Protecting Australia's Children 2009-2020 and the National Plan to Reduce Violence against Women and their Children, under Outcome 6, contribute to the safety and wellbeing of families and children.

The new National Find and Connect Service for the Forgotten Australians and former child migrants will further contribute to family functioning and access to integrated services by implementing an Australia-wide, coordinated, family tracing and support service for Forgotten Australians and former child migrants seeking to locate personal records and reunite with members of their families, where that is possible and where other services are not available.

Under this outcome, FaHCSIA also provides advice to the Government on policies that affect families, including child support arrangements.

Measures in the 2010-11 Budget will further enhance the Paid Parental Leave scheme and reform family payments.

Paid Parental Leave - implementation

The PPL scheme, will commence from 1 January 2011. For the first time, many Australian families, particularly low income earners, seasonal workers, casual workers, contractors and the self-employed will have access to paid parental leave.

While PPL payments will commence from 1 January 2011, employers will not be required to commence making PPL payments until 1 July 2011. Prior to that time, employers may 'opt into' the payment delivery role.

Employers will deliver payments to employees receiving PPL if certain conditions are met, including that the person has been an employee of the employer for 12 months or more immediately prior to the expected date of birth or adoption of the child. Employers will be obliged to deliver the Australian Government funded payment but will be entitled to appeal this requirement under certain conditions.

The enhanced communications campaign will support this approach by ensuring that employees and employers are aware of their rights and obligations under the scheme.

Family Tax Benefit Part A - improved participation requirements for 16 to 20 year olds

From 1 July 2009, new Youth Allowance early school leavers aged 15 to 20 years without a Year 12 or equivalent qualification must participate in full-time study/training, or part-time study/training in combination with other approved activities, leading to a Year 12 or equivalent qualification. At the 2009-10 Budget, the Government announced that the same rules would apply to FTB Part A. Instead, legislative amendments allow that from 1 January 2010 for new FTB Part A claimants (including end of year lump sum claimants), FTB Part A children aged 16 to 20 years without a Year 12 or equivalent qualification must participate in full-time education or training leading to a Year 12 or equivalent qualification. This rule will apply from 1 July 2010 to families who received or claimed FTB Part A prior to 1 January 2010. These requirements are more closely aligned to current eligibility requirements for FTB Part A dependants aged 21 to 24 years and FTB Part B dependants aged 16 to 18 years.

It is estimated that an additional 11,200 16 to 20 year olds in 2009-10 and 9,400 in 2010-11 will no longer qualify as dependent children because they are not undertaking full-time study.

Outcome 1 expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by program.


Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome 1: Families and Children

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 1.1: Family Support    
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 181,082 192,276
Special Appropriations 38,922 -
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 55,428 52,656
Revenues from independent sources (s. 31) 1,899 1,861
Expenses not requiring appropriation in the Budget year - 3,575
Subtotal for Program 1.1 277,331 250,368
Program 1.2: Family Tax Benefit    
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) - 150
Special Appropriations 17,795,698 17,746,695
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 25,332 23,981
Revenues from independent sources (s. 31) 868 850
Expenses not requiring appropriation in the Budget year - 1,628
Subtotal for Program 1.2 17,821,898 17,773,304
Program 1.3: Parental Payments and Care Incentives    
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 2,050 10,902
Special Appropriations 1,408,226 1,752,902
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 16,993 15,814
Revenues from independent sources (s. 31) 582 570
Expenses not requiring appropriation in the Budget year - 1,074
Subtotal for Program 1.3 1,427,851 1,781,262
Outcome 1 totals by appropriation type:    
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 183,132 203,328
Special Appropriations 19,242,846 19,499,597
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 97,753 92,451
Revenues from independent sources (s. 31) 3,349 3,281
Expenses not requiring appropriation in the Budget year - 6,277
Total expenses for Outcome 1 19,527,080 19,804,934
  2009-10 2010-11
Average staffing level (number) 515 539

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 1

Program 1.1 Family Support
Program 1.1 objective

To increase access to and timely provision of integrated services for families, particularly vulnerable and at-risk families, to improve child development, safety and family functioning.

Program component objectives

Family Relationship Services
To increase access to and timely provision of services for families, particularly disadvantaged and at-risk families, to improve family functioning, including safety, and reduce the impact of family breakdown, family violence and substance abuse.

Children and Parenting Services
To provide intensive, targeted and coordinated support for parents and children who are vulnerable, at risk or in disadvantaged communities, to improve child development, child safety and family functioning.

Linked to: The policy responsibility for family law services resides with the Attorney-General's Department.

Program 1.1 expenses

The variations in program expenses across the forward years are largely driven by an end to one-off funding in 2009-10, continuation of other policy initiatives and projected changes in indexation parameters.

The one-off funding relates to measures for the Nation Building and Jobs Plan announced by the Australian Government on 3 February 2009, which provided one-off funding in 2008-09 and 2009-10 for the Back to School Bonus, the Single Income Family Bonus, and the Training and Learning Bonus. Other key policy initiatives affecting program estimates are the 2009-10 Budget Closing the Gap-Northern Territory Family Support Package, which provided $32.9 million over three years, and an extension of the 2009-10 Budget Drought Assistance-extension of the Family Support Drought Response Teams measure for one year to 30 June 2011.

Table 2.1.1: Budgeted expenses for Family Support

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:            
Family Relationship Services B1 99,288 105,372 102,349 98,409 98,304
Children and Parenting Services B1 81,794 86,904 88,691 89,275 91,024
Special Appropriations:            
A New Tax System (Family Assistance)
(Administration) Act 1999
           
Back to School Bonus   1,209 - - - -
Single Income Family Bonus   1,298 - - - -
Social Security (Administration) Act 1999            
Training and Learning Bonus   36,415 - - - -
Program Support   57,327 58,092 58,067 62,165 63,401
Total program expenses   277,331 250,368 249,107 249,849 252,729

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services)
Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 1.1 deliverables

Family Relationship Services / Children and Parenting Services
  • Number of clients assisted
  • An agreed Find and Connect Service delivery model is developed and commenced
  • Strategies are in place that support improved access by care leavers to their records

Program 1.1 key performance indicators 1

  • Percentage and number of clients reporting improved family functioning, including child wellbeing
  • Percentage and number of clients with improved knowledge and skills related to family functioning, parenting, family safety or child development
  • Percentage and number of clients satisfied with the assistance received 2
  • Percentage and number of clients assisted from priority groups 2
  • Percentage and number of service sites in the most disadvantaged or targeted communities
  1. The performance indicators 'Number of service providers who meet accreditation requirement or relevant industry standards for service management and governance', 'Average cost per client', 'Average cost per session' and 'Percentage and number of service sites or outlets in disadvantaged or targeted communities' have been deleted and replaced with new KPIs more directly related to client outcomes rather than provider outputs.
  2. The Find and Connect Service is a new measure to which these performance indicators will also apply.

Program 1.2: Family Tax Benefit

Program 1.2 objective

To make payments to assist low and medium income families with the direct and indirect costs of raising dependent children.

Program component objectives

Family Tax Benefit Part A
To make payments to assist low and medium income families with the costs of raising dependent children. This supports better family functioning by improving the financial wellbeing of low and medium income families with children.

Family Tax Benefit Part B
To make payments to assist low and medium income families with one main income, including single parents, to enable them to exercise choices to balance labour force participation and child care responsibilities.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

Program 1.2 expenses

The upward trending variations in program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives.

The major policy initiatives affecting program estimates relate to:

  • the introduction of Paid Parental Leave scheme from 1 January 2011, announced in the 2009-10 Budget
  • the 2009-10 Budget reforms to family payments that from 1 July 2009 paused indexation for the higher income free area for Family Tax Benefit Part A and the $150,000 primary earner income limit for Family Tax Benefit Part B for three years
  • the introduction of improved participation requirements for 16 to 20 year olds without a Year 12 or equivalent qualification as announced in the 2009-10 Budget
  • 2010-11 Budget initiatives under the Stronger, fairer, simpler tax reform package for a capped proportional deduction for interest income from 1 July 2011 and for personal tax standard deductions from 1 July 2012.

Paid Parental Leave (PPL) is treated as income for Family Tax Benefit purposes and precludes payment of the Family Tax Benefit Part B entitlements during receipt of PPL and therefore reduces the cost of Family Tax Benefit. The 2009-10 measures to reform family payments and to improve participation requirements help reduce long-term costs to the budget.


Table 2.1.2: Budgeted expenses for Family Tax Benefit

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:            
Family Tax Benefit Participation Evaluation B1 - 150 - - -
Special Appropriations:            
A New Tax System (Family Assistance)(Administration) Act 1999            
Family Tax Benefit Part A   13,441,129 13,296,872 13,373,356 13,580,883 13,808,959
Family Tax Benefit Part B   4,354,569 4,449,823 4,475,611 4,626,276 4,784,955
Program Support   26,200 26,459 26,508 27,545 28,354
Total program expenses   17,821,898 17,773,304 17,875,475 18,234,704 18,622,268

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 1.2 deliverables

Payments are made through Centrelink and Medicare Australia to eligible claimants under the provisions of family assistance law.

Program 1.2 key performance indicators

Family Tax Benefit Part A and Part B
  • Total number of recipients
  • Percentage and number of recipients paid by instalment
  • Percentage and number of recipients paid by lump sum
  • Proportion and amount of administered outlays paid by instalment and by lump sum
  • Percentage and number of recipients obtaining a qualification debt
  • Percentage and number of recipients obtaining a debt following reconciliation
  • Percentage and number of recipients obtaining a non-lodger debt
  • Payment accuracy
  • Percentage and number of families with children under 16 years of age receiving FTB Part A and/or FTB Part B
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
Family Tax Benefit Part A
  • Percentage and number of families in receipt of FTB Part A within income test categories
Family Tax Benefit Part B
  • Percentage and number of families in receipt of FTB Part B within income test categories

Program 1.3: Parental Payments and Care Incentives

Program 1.3 objective

To make payments to families to assist with the costs of a newborn or adopted child, extend the period that parents can be away from work to spend time with their new baby and encourage all families to fully immunise their children.

Program component objectives

Paid Parental Leave
To make payments to working parents to enhance maternal and child health and development, facilitate workforce participation and promote gender equity and work-family balance.

Baby Bonus
To make payments to families to assist with the costs arising from the birth or adoption of a child.

Maternity Immunisation Allowance
To make payments to encourage families to fully immunise their natural and adopted children in accordance with Australian standards. (This supports improved child development and safety in all families by impeding the spread of infectious diseases within the Australian community.)

Double Orphan Pension

To make non-means-tested payments to guardians or approved care organisations to assist in meeting the costs of dependent children who are double orphans.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

Immunisation is delivered by the Department of Health and Ageing. For information about the delivery of this program, refer to that department's 2010-11 PB Statements: Outcome 1-Population Health, Program 1.5.

Program 1.3 expenses

The upward trending variations to program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives.

Significant policy initiatives also influence the forecasts, particularly the change to the Maternity Immunisation Allowance payments to encourage the immunisation of children aged four years and the introduction of the Paid Parental Leave (PPL) scheme from 1 January 2011.

The expenses for PPL communications and evaluation are for publicity campaigns in 2009-10 and 2010-11 with an evaluation to be undertaken between 2010 and 2013.

Table 2.1.3: Budgeted expenses for Parental Payments and Care Incentives

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Administered expenses:            
Paid Parental Leave - communication and evaluation B1 2,050 10,902 103 1,364 535
Special Appropriations:            
A New Tax System (Family Assistance)(Administration) Act 1999            
Baby Bonus   1,369,939 1,076,647 890,134 922,797 956,821
Maternity Immunisation Allowance   34,890 36,093 65,298 69,240 73,935
Paid Parental Leave legislation 1            
Paid Parental Leave   - 636,626 1,327,618 1,381,039 1,440,491
Social Security (Administration) Act 1999            
Double Orphan Pension   3,397 3,536 3,705 3,834 3,978
Program Support   17,575 17,458 15,814 16,533 16,249
Total program expenses   1,427,851 1,781,262 2,302,672 2,394,807 2,492,009

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services)

  1. Paid Parental Leave is proposed to be paid under an Act of Parliament yet to be passed.

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 1.3 deliverables

Payments are made through Centrelink and Medicare Australia (the Family Assistance Office) to eligible claimants under the provisions of family assistance law.

Double Orphan Pension is paid through Centrelink to eligible claimants under the provisions of social security law.

Paid Parental Leave is proposed to be paid under a new Act of Parliament.

Program 1.3 key performance indicators

Paid Parental Leave (PPL)
  • Number of mothers for whom PPL has been paid as a proportion of all mothers in the same year
  • Percentage and number of parents paid PPL by employers
  • Percentage and number of families who take the full 18 weeks of PPL
Baby Bonus
  • Number and percentage of children for whom Baby Bonus is paid as a proportion of all children born in the same year
Maternity Immunisation Allowance
  • Percentage and number of children vaccinated to the highest level appropriate for their age in the Australian community
Baby Bonus / Maternity Immunisation Allowance
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies

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Outcome 2: Housing

Access to affordable, safe housing through: payments and support services; and rental subsidies to low and moderate income households.

Outcome 2 strategy

FaHCSIA's housing programs and services aim to maximise access to affordable and safe housing for people who would otherwise have difficulty gaining such access. The assistance includes funding for public housing, community housing, the Housing Affordability Fund and the National Rental Affordability Scheme. For eligible people receiving income support or family payments and paying private rent, Rent Assistance helps to make their housing costs more affordable.

FaHCSIA has whole of government oversight of housing and homelessness policy and works in partnership with states and territories to improve the housing outcomes of Australians. Payments made under COAG national agreements are made by the Treasury. Performance indicators can be found at: Ministerial Council for Federal Financial Relations website http://www.federalfinancialrelations.gov.au

FaHCSIA is also responsible for a range of initiatives to address homelessness and leads whole of government efforts to achieve the Government's homelessness targets. Much of this work is done in partnership with states and territories under the National Partnership Agreement on Homelessness that supports the National Affordable Housing Agreement.

FaHCSIA is working with states and territories and the not-for-profit sector to provide a significant number of additional social and affordable housing dwellings through the Nation Building-Economic Stimulus Plan and the National Partnership Agreement on Social Housing. The Social Housing Initiative is the largest commitment by any government in Australia to social housing.

Access to stable and affordable housing, coupled with improved access to other services, helps support positive life transitions and can be a fundamental enabler for vulnerable people, including those leaving child protection, domestic violence and health facilities.

FaHCSIA's housing and homelessness programs are informed by evidence and data provided by the Australian Bureau of Statistics, the Australian Institute of Health and Welfare and the National Housing Supply Council, which monitors the supply of and demand for housing, including affordable housing, and provides advice to the Government.

Outcome 2 expense and resource statement

Table 2.2 provides an overview of the total expenses for Outcome 2 by program.

Table 2.2: Budgeted expenses and resources for Outcome 2

Outcome 2: Housing

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 2.1: Affordable Housing
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 13,008 29,129
Special Accounts 144 10,629
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 8,219 7,067
Revenues from independent sources (s. 31) 282 276
Expenses not requiring appropriation in the Budget year - 480
Subtotal for Program 2.1 21,653 47,581
Program 2.2: Housing Assistance and Homelessness Prevention    
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 105,954 106,858
Special Accounts 3,269 -
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 27,551 23,407
Revenues from independent sources (s. 31) 944 925
Expenses not requiring appropriation in the Budget year - 1,589
Subtotal for Program 2.2 137,718 132,779
Outcome 2 totals by appropriation type:    
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 118,962 135,987
Special Accounts 3,413 10,629
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 35,770 30,474
Revenues from independent sources (s. 31) 1,226 1,201
Expenses not requiring appropriation in the Budget year - 2,069
Total expenses for Outcome 2 159,371 180,360
  2009-10 2010-11
Average staffing level (number) 209 209

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 2

Program 2.1: Affordable Housing
Program 2.1 objective

To increase the supply of affordable rental dwellings for low and moderate income households by providing financial incentives through the National Rental Affordability Scheme.

Program component objectives

National Rental Affordability Scheme
To provide incentive payments to scheme participants to increase the supply of affordable dwellings for low and moderate income households.

Other Services-Services for other Government and Non-Government Bodies (Special Account)
For expenditure in connection with services performed on behalf of other governments and bodies that are not agencies under the authority of section 20 of the Financial Management and Accountability Act 1997. This includes the National Rental Affordability Scheme.

Program 2.1 expenses

The National Rental Affordability Scheme (NRAS) provides a National Rental Incentive to the business sector and community organisations to build dwellings and rent them to low and moderate income households at 20 per cent or more below market rent rates. The projected expenses across the forward estimates have been updated in the 2010-11 Budget following an update of the implementation phasing and the revision of the original budget assumptions.

The incentive is delivered through either incentive payments or refundable tax offsets. The NRAS refundable tax offsets are delivered through the Australian Tax Office and are not part of the FaHCSIA budget.


Table 2.2.1: Budgeted expenses for Affordable Housing

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Administered expenses            
National Rental Affordability Scheme B1 13,008 29,129 43,170 79,391 93,716
Special Account expenses:            
Other Services - Services for Other Government and Non-Government Bodies   144 10,629 15,871 15,828 15,828
Program Support   8,501 7,823 7,954 8,572 9,091
Total program expenses   21,653 47,581 66,995 103,791 118,635

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services)

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 2.1 deliverables
National Rental Affordability Scheme
  • Cumulative number of planned NRAS incentives that have been allocated
  • Number of NRAS dwellings available for rental
Program 2.1 key performance indicators
  • Proportion of low or moderate income NRAS households in rental stress
  • Proportion of NRAS dwellings tenanted by low or moderate income households
  • Proportion of NRAS dwellings available for rent
  • Proportion of NRAS dwellings tenanted by Indigenous households3
  1. This additional performance indicator is included to ensure that data reported on includes Indigenous tenants.

Program 2.2: Housing Assistance and Homelessness Prevention

Program 2.2 objective

To provide financial incentives to increase the housing supply and provide rental subsidies for low and moderate income households, and to fund homelessness prevention initiatives to reduce the impact of homelessness.

Program component objectives

Housing Affordability Fund
To provide funding to state and local government authorities and partners to reform planning and regulatory processes and reduce some housing infrastructure costs to increase the supply of housing for home buyers.

Homelessness Prevention
To provide funding to support innovative prevention and early intervention initiatives to reduce homelessness and its impact, particularly on families and young people.

Rent Assistance
To make payments to low and moderate income Australians receiving income support or family payments to assist with the costs of renting private and community housing.

Linked to: Payments under the National Affordable Housing Agreement, the National Partnership Agreement on Homelessness, the National Partnership on Nation Building and the National Partnership Agreement on Social Housing are made by the Treasury. For information about those payments, refer to the Treasury's 2010-11 PB Statements and Budget Paper No. 3, Australia's Federal Relations.

Rent Assistance is delivered by Centrelink and separately by the Department of Veterans' Affairs (DVA). For information about the DVA delivery of this service refer to the Department of Veterans' Affairs' 2010-11 PB Statements: Program 1.1 Veterans' Income Support and Allowances.

Program 2.2 expenses

The program expenses across the forward estimates have varied from previous estimates due to updated indexation parameters. The significant decline in funding in 2013-14 reflects the end of the Housing Affordability Fund, which provided $512 million over five years until 30 June 2013.


Table 2.2.2: Budgeted expenses for Housing Assistance and Homelessness Prevention

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:            
Housing Assistance and Homelessness Prevention B1 105,954 106,858 181,014 183,568 31,665
Special Account:            
SAAP Data and Program Evaluation Fund Special Account   3,269 - - - -
Program Support   28,495 25,921 25,674 26,746 28,335
Total program expenses   137,718 132,779 206,688 210,314 60,000

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services)

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Rent Assistance Cash Projections

Rent Assistance is not a discrete sum of money separately payable under the law but is a supplementary payment included in the calculation of primary income support payment or Family Tax Benefit.

The following table provides cash projections for the Rent Assistance component included in the primary income support payment or Family Tax Benefit.


Table 2.2.2.1: Cash Projections for Rent Assistance

 

2009-10
$('000)
2010-11
$('000)
FAHCSIA: A New Tax System (Family Assistance) (Administration) Act 1999
Family Tax Benefit Part A 1,333,389 1,361,062
FAHCSIA: Social Security (Administration) Act 1999
Age Pension 444,344 476,963
Bereavement Allowance 86 92
Carer Payment 43,233 51,436
Disability Support Pension 456,169 466,952
Special Benefit 3,817 3,853
Widow B Pension 5 5
Wife Pension (Age) 1,266 1,209
Wife Pension (DSP) 1,774 1,617
DEEWR: Social Security (Administration) Act 1999
Austudy 27,522 27,797
Newstart Allowance 369,653 367,152
Parenting Payment (Single) 13,179 13,326
Parenting Payment (Partnered) 341 346
Partner Allowance 413 257
Sickness Allowance 5,110 5,055
Widow Allowance 20,816 19,533
Youth Allowance 153,829 160,238
DEEWR: Abstudy (Student Assistance Act 1973) 9,795 9,991
DVA: Veterans' Entitlements Act 19861 40,844 42,932
Total cash forecasts - Whole of Government 2,925,586 3,009,816
  1. Rent Assistance is paid to eligible service pension and income support supplement recipients.
Program 2.2 deliverables
Housing Affordability Fund
  • Number of dwellings/lots that deliver the purchase price reductions required under Housing Affordability Fund project funding agreements to home purchasers
Homelessness Prevention
  • Number of individuals/families assisted through homelessness prevention services
Rent Assistance
  • Rent Assistance payments are made through Centrelink to eligible claimants under the provisions of social security and family assistance law
COAG

This program also contributes to the objectives of the National Affordable Housing Agreement and the National Partnership Agreements on Homelessness; Nation Building and Jobs Plan-Social Housing; Social Housing; and, Remote Indigenous Housing, as listed in Figure 2 in Section 2.1.

Program 2.2 key performance indicators
Housing Affordability Fund4
  • Proportion of dwelling/lots sold that deliver the purchase price reductions required under Housing Affordability Fund project funding agreements5
Homelessness Prevention
  • Proportion of clients reporting an improved situation after assistance from homelessness prevention programs6
Rent Assistance7,8
  • Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance
  • Proportion of Rent Assistance recipients paying enough rent to receive the maximum rate of assistance9
  • Proportion of clients assisted who are Aboriginal or Torres Strait Islander
  • Number of recipients
  • Administered outlays
  1. Two performance indicators, one on goals and one on completion certificates, have been deleted as they represent program information generally rather than performance against the program objective.
  2. This performance indicator is included because it better reflects performance measurability against the program objective.
  3. This new indicator has been included to better measure the outcomes achieved by government-funded programs in supporting people experiencing homelessness.
  4. The key performance indicator for 'payment accuracy' for Rent Assistance has been deleted as there is no data available to enable reporting against it. The 2008-09 figure was extrapolated from a one-off series of random sample surveys of recipients of Rent Assistance in 2005-06 and 2006-07. Currently, there are no plans to repeat the one-off sampling exercise.
  5. One performance indicator from 2008-09 has been amended and inserted as a program deliverable, for which it is better suited.
  6. The wording for this performance indicator has changed to more accurately reflect the data reported. There is no change to the data reported from previous years.

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Outcome 3: Community Capability and the Vulnerable

Improved capacity for vulnerable people and communities to participate economically and socially and to manage life-transitions through payments, targeted support services and community capability building initiatives.

Outcome 3 strategy

Community programs complement the income support system by providing pathways to economic participation and services for those in greatest need. Service strategies provide a continuum of care, supporting people and enhancing the community sector's ability to respond to increased demand as a result of events, including the global financial crisis and natural disasters.

Vulnerable individuals and families are supported to build financial capability and resilience through a range of assistance, including income management, emergency relief, financial counselling, money management information and education and information about saving for retirement. Key target groups for assistance include people with low incomes, those subject to income management and people in financial stress.

FaHCSIA provides grants and assistance to community organisations to help them respond to identified community issues, build service delivery partnerships, support volunteers and build sector capacity. Through the National Compact, FaHCSIA aims to reduce red tape and enhance the Government's commitment to building stronger relationships with the not-for-profit sector.

FaHCSIA assists people and communities affected by natural disasters through financial assistance, such as the Australian Government Disaster Recovery Payment. Other forms of assistance include funeral/memorial assistance and income recovery subsidies.

FaHCSIA also provides assistance to people in severe financial hardship who are not eligible for any other type of payment and have no other means of support or capacity to earn a sufficient livelihood, through the payment of Special Benefit.

Income Management

Welfare payments reform measures are designed to create a welfare system based on the principles of engagement, participation and responsibility, while building financial management and budgeting skills for individuals and families. The Government has provided $350.9 million over four years from 2009-10 to 2012-13 to implement a new broadened scheme of income management across the whole of the Northern Territory as a first step towards a national rollout to further disadvantaged locations. The new scheme will apply income management to some long-term recipients of working age payments and vulnerable people, including parents referred by child protection authorities. People on relevant payments will be able to volunteer for income management. Exemptions will be based on participation and responsible parenting.

In 2010-11, additional funding will be provided to continue the Income Management arrangements in the Kimberley region of Western Australia and in metropolitan Perth. The School Enrolment and Attendance measure, which is administered by the Department of Education, Employment and Workplace Relations, will also continue for a further 12 months from 1 July 2010.

Income management in cases of child neglect and by voluntary choice - continuation of trial

The Australian Government will provide $5.6 million in 2010-11 to continue practical money management and financial counselling services implemented in 2008-09 to support the Income Management trial in Western Australia. People living in Western Australia's Child Protection and Voluntary Income Management trial areas will be given more help to deal with financial stress, to balance their family budgets and to learn more about how the banking and finance systems operate.

Outcome 3 contributes to COAG's objectives under the National Partnership Agreements on Certain Concessions for Pensioners and Seniors Card Holders and the Victorian Bushfire Recovery Plan. Figure 2 in Section 2.1 lists the current intergovernmental agreements, monitored by the COAG Reform Council, to which FaHCSIA contributes.

Outcome 3 expense and resource statement

Table 2.3 provides an overview of the total expenses for Outcome 3 by program.


Table 2.3: Budgeted expenses and resources for Outcome 3

Outcome 3: Community Capability and the Vulnerable

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 3.1: Financial Management
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 107,973 125,195
Special Accounts 157,381 168,190
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 20,272 22,548
Revenues from independent sources (s. 31) 695 681
Expenses not requiring appropriation in the Budget year - 1,531
Subtotal for Program 3.1 286,321 318,145
Program 3.2: Community Investment
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 68,136 72,590
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 21,091 19,178
Revenues from independence sources (s. 31) 723 708
Expenses not requiring appropriation in the Budget year - 1,302
Subtotal for Program 3.2 89,950 93,778
Program 3.3: Income Support for Vulnerable People
Administered expenses    
Special Appropriations 68,501 75,718
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 1,238 853
Revenues from independent sources (s. 31) 42 42
Expenses not requiring appropriation in the Budget year - 58
Subtotal for Program 3.3 69,781 76,671
Program 3.4: Support for People in Special Circumstances
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 8,114 1,347
Special Appropriations 64,942 25,287
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 4,849 3,064
Revenues from independent sources (s. 31) 166 163
Expenses not requiring appropriation in the Budget year - 208
Subtotal for Program 3.4 78,071 30,069
Program 3.5: Supplementary Payments and Support for Income Support Recipients
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 11,073 8,445
Special Appropriations 293,083 12,929
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 1,479 1,067
Revenues from independent sources (s. 31) 51 50
Expenses not requiring appropriation in the Budget year - 72
Subtotal for Program 3.5 305,686 22,563
Outcome 3 totals by appropriation type:
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 195,296 207,577
Special Appropriations 426,526 113,934
Special Accounts 157,381 168,190
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 48,929 46,710
Revenues from independent sources (s. 31) 1,677 1,644
Expenses not requiring appropriation in the Budget year - 3,171
Total expenses for Outcome 3 829,809 541,226
  2009-10 2010-11
Average staffing level (number) 302 310

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 3

Program 3.1: Financial Management
Program 3.1 objective

To improve the financial knowledge, skills, capabilities and financial resilience of vulnerable individuals and families to alleviate the immediate impact of financial stress, and to coordinate a national approach to reduce problem gambling.

Program component objectives

Financial Management Information and Assistance
To improve the financial resilience of vulnerable individuals and families through financial counselling, information and education, crisis assistance and asset-building incentives such as matched savings and low-interest loans, and finding ways to minimise the impacts of problem gambling.

Income Management (Special Account)

The purpose of this Special Account is to enable parents to manage their welfare payments so they are best used to feed, clothe, house and provide for the education of their children.

Linked to: Administration of the school enrolment and attendance measure is managed by the Department of Education, Employment and Workplace Relations (DEEWR). For information on this measure, refer to the DEEWR 2010-11 PB Statements.

Program 3.1 expenses

The variations in program expenses across the forward years are driven by projected changes in indexation parameters and the impact of policy initiatives.

The increase in 2010-11 mostly reflects a movement of funds of $2.7 million from 2009-10 and the 2010-11 Budget measure, Income management in cases of child neglect and by voluntary choice - continuation of trial.

An additional $80.4 million over three years from March 2009 was announced with the measures for the Nation Building and Jobs Plan in the February 2009 Updated Economic and Fiscal Outlook. This provided additional funding for emergency relief and financial counselling in recognition that demand for these services increased due to the impact of the global financial crisis.

An additional $50 million over two years from July 2009 was announced in the 2009-10 Budget for innovative projects in the Financial Management Program to help build the financial resilience of people on low incomes, including the unemployed.


Table 2.3.1: Budgeted expenses for Financial Management

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Child Protection Pilot - WA B1 100 333 - - -
Financial Management Information and Assistance B1 107,613 124,505 59,758 62,953 64,213
Welfare Payments Reform B1 260 1,267 1,451 951 1,302
Special Account Expenses:
Income Management - Special Account   157,381 168,190 194,555 198,950 203,344
Program Support   20,967 24,760 23,367 24,828 26,150
Total program expenses   286,321 319,055 279,131 287,682 295,009

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services)

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 3.1 deliverables
Financial Management Information and Assistance
  • Number of clients assisted through the Financial Management Program
Income Management
  • Number of people on Income Management by category
Program 3.1 key performance indicators
Financial Management Information and Assistance
  • Percentage and number of clients who have their immediate crisis needs met
  • Percentage and number of clients with increased money management knowledge and skills
  • Percentage and number of clients adhering to agreed financial management strategies to manage life transitions
Income Management10
  • Amount and percentage of income managed funds spent on priority needs
  1. The 2009-10 performance indicator, 'Number of people on Income Management', has been converted to the 2010-11 deliverable 'Number of people on Income Management by category'.

Program 3.2: Community Investment

Program 3.2 objective

To provide grants and ongoing funding to improve the responsiveness and integration of local community services to increase participation of vulnerable people in community life.

Program 3.2 expenses

The variations in program expenses across the forward years are driven by projected changes in indexation parameters and the impact of policy initiatives.

The relevant policy initiative is the 2008-09 Budget Volunteer Grants program-expansion to help with fuel costs, which provided $15 million over three years from 2008-09.


Table 2.3.2: Budgeted expenses for Community Investment

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Community Investment B1 67,943 71,680 68,884 70,201 71,587
Disaster Preparedness B1 193 - - - -
Program Support   21,814 21,188 20,848 22,636 24,009
Total program expenses   89,950 92,868 89,732 92,837 95,596

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services)

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 3.2 deliverables
  • Number of individuals assisted through the Community Investment Program
  • Number of individuals assisted through Volunteer Grants
  • Number of individuals assisted through Volunteer Management
  • Number of individuals assisted (excluding volunteers)
Program 3.2 key performance indicators11,12,13
Community Investment
  • Percentage and number of individuals who indicated they were satisfied with the Community Support Service
  • Percentage and number of individuals assisted from Indigenous and culturally and linguistically diverse backgrounds
  1. The performance indicator 'Percentage and number of individuals and families assisted to participate in a civic or community activity' included in the 2009-10 PB Statements has been amended to 'Number of individuals assisted through Community Investment Program' and inserted as a program deliverable, for which it is better suited.
  2. The performance indicator 'Percentage and number of funded projects that developed partnerships' included in the 2009-10 PB Statements has been amended to 'Number of individuals assisted through Volunteer Grants' and inserted as a program deliverable, for which it is better suited.
  3. The performance indicator 'Average cost per individual directly assisted or participating (including volunteers)' included in the 2009-10 PB Statements has been amended to 'Number of individuals assisted through Volunteer Management' and inserted as a program deliverable, for which it is better suited.

Program 3.3: Income Support for Vulnerable People

Program 3.3 objective

To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

Program 3.3 expenses

The variations in program expenses across the forward years are driven by projected changes in customer trends and indexation arrangements.


Table 2.3.3: Budgeted expenses for Income Support for Vulnerable People

 

2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Special Appropriations:
Social Security (Administration) Act 1999
Special Benefit 68,501 75,718 82,068 89,079 95,464
Program Support 1,280 953 968 1,056 1,120
Total program expenses 69,781 76,671 83,036 90,135 96,584

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 3.3 deliverables

Payments are made through Centrelink to eligible claimants under the provisions of social security law.

Program 3.3 key performance indicators14
Income Support for Vulnerable People (Special Benefit)
  • Percentage and number of recipients on part rate due to the means test
  • Number of recipients
  • Administered outlays
  • Duration on payment
  • Payment accuracy
  • Agreements are in place with all service providers
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery providers
  1. The performance indicator for 'Proportion of recipients with activity test requirements' has been removed, as the cohort is very small and no longer statistically significant.

Program 3.4: Support for People in Special Circumstances

Program 3.4 objective

To make payments to Australians in circumstances beyond their control to support them in overcoming those circumstances and maintaining their financial wellbeing.

Program component objectives

Bereavement Allowance
To make payments for up to 14 weeks to a recently widowed person following the death of their partner to enable them to maintain an adequate standard of living during that time.

Australian Government Disaster Recovery Payment
To make immediate, one-off payments to individuals and families adversely affected by major disasters to support their recovery needs, where authorised by the Minister for Families, Housing, Community Services and Indigenous Affairs.

Payments under Special Circumstances
Payments under Special Circumstances include Act of Grace payments made under section 33 of the Financial Management & Accountability Act 1997 and ex gratia payments to individuals and families affected by disasters and other crises.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

National Disaster Recovery Relief arrangements are administered through the Attorney-General's Department. For further information, refer to that department's 2010-11 PB Statements.

Program 3.4 expenses

The variations in program expenses across the financial years are driven by one-off funding for:

  • the Victorian bushfires in 2009
  • the mid-North Coast New South Wales floods in 2009
  • the Samoan tsunami and Sumatran earthquakes in 2009
  • the Western Australian bushfires in December 2009
  • the Victorian storms in March 2010
  • the south-west Queensland floods in March 2010.

The change also reflects projected changes in customer trends and indexation parameters for Bereavement Allowance.


Table 2.3.4: Budgeted expenses for Support for People in Special Circumstances

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Payments under Special Circumstances B1 8,114 1,347 1,357 1,367 1,378
Special Appropriations:
Social Security (Administration) Act 1999
Australian Government Disaster Recovery Payment   61,650 21,775 20,169 20,169 20,169
Bereavement Allowance   3,292 3,512 4,235 5,628 6,772
Program Support   5,015 3,435 3,491 3,841 4,071
Total program expenses   78,071 30,069 29,252 31,005 32,390

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 3.4 deliverables
Bereavement Allowance / Payments under Special Circumstances
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law and the Financial Management and Accountability Act 1997.
Program 3.4 key performance indicators
Bereavement Allowance / Payments under Special Circumstances
  • Number of recipients
  • Administered outlays
Bereavement Allowance / Australian Government Disaster Recovery Payment
  • Timeliness of receipt of assistance

Program 3.5: Supplementary Payments and Support for Income Support Recipients

Program 3.5 objective

To make payments and subsidise services to certain income support recipients to assist them financially and to help them continue to participate economically and socially.

Program component objectives

Reimbursement to Great Southern Rail Authority for Concessional Fares
To reimburse Great Southern Rail for the provision of concessional fares on its services (the Indian Pacific, the Ghan and the Overland) to pensioners, certain veterans and holders of the Commonwealth Seniors Health Card and state Seniors Card holders.

Utilities Allowance
Payments are made through Centrelink to eligible claimants under the provisions of social security law.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

Program 3.5 expenses

The variations in program expenses across the forward years are driven by the replacement of the Utilities Allowance with the Pension Supplement and one-off funding for the communications campaign for the Secure and Sustainable initiatives announced in the 2009-10 Budget.

From 20 September 2009, the Utilities Allowance has been paid only to DSP recipients under the age of 21.


Table 2.3.5: Budgeted expenses for Supplementary Payments and Support for Income Support Recipients

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Reimbursement to Great Southern Rail for Concessional Fares B1 8,148 8,445 8,678 8,445 8,655
Secure and Sustainable Pensions - communications campaign B1 2,925 - - - -
Special Appropriations:
Social Security (Administration) Act 1999
Utilities Allowance
  293,083 12,929 13,278 13,699 14,325
Program Support   1,530 1,189 1,209 1,318 1,398
Total program expenses   305,686 22,563 23,165 23,462 24,378

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 3.5 deliverables
Reimbursement to Great Southern Rail for Concessional Fares
  • Great Southern Rail is under agreement to provide concessional fares on its services to pensioners, certain veterans and holders of Commonwealth Seniors Health Card and state Seniors Card holders.
Utilities Allowance
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
Program 3.5 key performance indicators
Reimbursement to Great Southern Rail for Concessional Fares
  • Administered outlays
  • Number of recipients
  • Number of journeys
Utilities Allowance15
  • Administered outlays
  • Number of recipients
  1. The measure of payment accuracy for this payment will be derived from the relevant primary payment.

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Outcome 4: Seniors

An adequate standard of living and improved capacity to productively manage resources and life-transitions for senior Australians through the delivery of payments, concessions and information services.

Outcome 4 strategy

FaHCSIA's key strategy under Outcome 4 is the payment of the Age Pension and supplements to those senior Australians who are unable to fully support themselves. Around four out of five Australians of Age Pension age receive the Age Pension or other income support. Key drivers of Age Pension expenditure are demographic change, economic conditions (such as inflation and wages growth) and the impact of policy initiatives. The most recent Intergenerational Report acknowledges the ongoing challenges these demographic trends present into the future.

The Australian Government continues to assist senior Australians through the provision of concession cards, including the Pensioner Concession Card, the Health Care Card and the Commonwealth Seniors Health Card. These cards provide cardholders with access to Pharmaceutical Benefits Scheme prescription items and certain Medicare services at a cheaper rate.

The Australian Government contributes some funding towards selected state-based concessions through a National Partnership arrangement. The arrangement contributes funds towards certain specified concessions that the states must provide to Pensioner Concession Card holders without discrimination and funds for the states to provide public transport concessions to out-of-state Seniors Card holders.

Seniors are also able to access the Financial Information Service provided by Centrelink.

The Broadband for Seniors initiative is establishing a network of internet kiosks in locations frequented by seniors to address barriers that limit seniors' capacity to access the information and community resources needed to remain involved in social and community activities.

The Secure and Sustainable Pension Reform package has been implemented, and most components commenced from 20 September 2009. Some 2.1 million age pensioners have benefited from the improvements introduced as part of the package, which included better indexation of payments, higher rates of payment and better targeting of assistance. Many people who cannot qualify for the Age Pension due to the level of their private resources receive some assistance through the Seniors Supplement introduced as part of the package. Around 270,000 Commonwealth Seniors Health Card holders have benefited from the Seniors Supplement, which is available to card holders to assist with household expenses. It combines the former Seniors Concession Allowance and the higher rate of Telephone Allowance.

The Secure and Sustainable Pension Reform package measures provided for increased pension rates, improved indexation and a higher benchmark compared to male total average weekly earnings. This substantially contributed to an increase in pension payments of around $100 a fortnight for singles and around $74 a fortnight for couples (combined) since September 2009. In addition, the Work Bonus provides a significant concession for age pensioners who choose to work by allowing half of the first $500 of fortnightly employment income to be excluded from means testing.

Further measures announced as part of the package will be introduced on 1 July 2010. The amount of pension that can be advanced will increase from July 2010 and will continue to increase in line with adult pension rate increases each March and September. Pension advance payments will also be made more flexible-pensioners will be able to obtain more than one advance each year. This will improve pensioners' capacity to manage their finances to meet large or unforeseen costs.

The Pension Supplement was introduced from 20 September 2009 as part of the Secure and Sustainable Pension Reform package. The Pension Supplement combined the value of the GST Supplement, the Pharmaceutical Allowance, the Utilities Allowance and the higher rate of Telephone Allowance, plus an increase. From 1 July 2010, pensioners may elect to receive the pension supplement minimum amount quarterly, instead of fortnightly. Providing this option gives pensioners more flexibility in managing their budgets. Payments of the quarterly pension supplement will be made as soon as possible after 20 September, 20 December, 20 March and 20 June each year.

From 1 July 2017, the qualifying age for the Age Pension for men and women will be increased by six months every two years, reaching 67 on 1 July 2023. This measure responds to the increasing life expectancy of senior Australians and promotes the sustainability of the Age Pension into the future.

The Age Pension continues to support those whose financial resources were reduced by the global financial crisis.

Outcome 4 also contributes to COAG's objectives under the Reciprocal Transport Concessions for Seniors Card Holders component of the National Partnership Agreement on Certain Concessions for Pensioners and Senior Card Holders. Figure 2 in Section 2.1 lists the current intergovernmental agreements, monitored by the COAG Reform Council, to which FaHCSIA contributes.

Outcome 4 expense and resource statement

Table 2.4 provides an overview of the total expenses for Outcome 4 by program.


Table 2.4: Budgeted expenses and resources for Outcome 4

Outcome 4: Seniors

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 4.1: Income Support for Seniors
Administered expenses
Special Appropriations 29,420,023 31,948,889
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 18,615 17,942
Revenues from independent sources (s. 31) 638 625
Expenses not requiring appropriation in the Budget year - 1,218
Subtotal for Program 4.1 29,439,276 31,968,674
Program 4.2: Allowances, Concessions and Services for Seniors
Administered expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 5,000 4,995
Special Appropriations 176,111 183,591
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 5,479 4,631
Revenues from independent sources (s. 31) 188 184
Expenses not requiring appropriation in the Budget year - 314
Subtotal for Program 4.2 186,778 193,715
Outcome 4 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 5,000 4,995
Special Appropriations 29,596,134 32,132,480
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 24,094 22,573
Revenues from independent sources (s. 31) 826 809
Expenses not requiring appropriation in the Budget year - 1,532
Total expenses for Outcome 4 29,626,054 32,162,389
  2009-10 2010-11
Average staffing level (number) 152 152

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 4

Program 4.1: Income Support for Seniors

Program 4.1 objective

To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life-transitions.

Program component objectives

Age Pension
To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life-transitions.

Widow B Pension
To make payments to widowed, divorced and separated women to assist them financially. (This payment was closed to new entrants from 20 March 1997.)

Wife Pension (Age)
To make payments to female partners of Age Pension recipients, where those partners are not eligible in their own right for Age Pension, to assist them financially. (This payment was closed to new entrants from 1 July 1995.)

Linked to: Personal benefits payments under this program are delivered by Centrelink and separately by the Department of Veterans' Affairs (DVA). For information about the DVA delivery of this service, refer to DVA's 2010-11 PB Statements: Program 1.1 Veterans' Income Support and Allowances.

Program 4.1 expenses

The variations in program expenses across the forward years are driven by changes in the economy, demographic change, indexation and deeming arrangements and the impact of policy initiatives, including the Secure and Sustainable Pension Reform package.

The Widow B Pension and Wife Pension (Age) programs are closed payments with no new claimants.


Table 2.4.1: Budgeted expenses for Income Support for Seniors

 

2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Special Appropriations:
Social Security (Administration) Act 1999
Age Pension 29,269,001 31,809,514 33,825,196 36,412,207 38,423,394
Widow B Pension 7,459 7,530 7,222 7,381 7,089
Wife Pension (Age) 143,563 131,845 123,481 114,810 111,911
Program Support 19,253 19,785 19,121 20,651 21,329
Total program expenses 29,439,276 31,968,674 33,975,020 36,555,049 38,563,723

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 4.1 deliverables

Payments are made through Centrelink to eligible claimants under the provisions of social security law.

Program 4.1 key performance indicators
Age Pension / Widow B Pension / Wife Pension (Age)
  • Percentage and number of recipients on part rate due to the means test
  • Number of recipients
  • Administered outlays
Age Pension
  • Ratio of assessed income of pensioners to their total income
  • Percentage and number of senior Australians who receive payment
  • Percentage and number of recipients with employment income16
  • Percentage and number of new entrants with employment income
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that the requirements are fulfilled under agreements with providers
Wife Pension (Age)
  • Ratio of current number of Wife Pension (Age) recipients to the number of Wife Pension (Age) recipients at 1 July 1995
  1. The wording for this performance indicator has changed to more accurately reflect the data reported. There is no change to the data reported from the previous years.

Program 4.2: Allowances, Concessions and Services for Seniors

Program 4.2 objective

To make payments and provide services to senior Australians to assist with household expenses, enabling them to maintain their standard of living and increase access to information and community resources.

Program component objectives

Seniors Supplement
To make payments to senior Australians to assist with household and other living expenses.

Broadband for Seniors
To establish a network of internet kiosks in locations frequented by seniors to address barriers that limit seniors' capacity to access the information and community resources needed to remain involved in social and community activities.

Linked to: Personal benefits payments under this program are delivered by Centrelink and separately by the Department of Veterans' Affairs (DVA). For information about the DVA delivery of this service, refer to DVA's 2010-11 PB Statements: Program 1.1 Veterans' Income Support and Allowances.

Program 4.2 expenses

The variations in program expenses across the forward years are driven by projected changes in demographics, indexation parameters and the impact of policy initiatives.

The relevant policy initiatives include the 2009-10 Budget Secure and Sustainable Pensions-new Seniors Supplement and the 2008-09 Budget Broadband for Seniors measure. The Seniors Concession Allowance and Telephone Allowance for Commonwealth Seniors Health Card holders were combined into a Seniors Supplement from 20 September 2009. Under the Australian Government's Broadband for Seniors initiative, $15 million is being invested over three years from 2008-09 to install up to 2,000 free internet kiosks for seniors across the country.


Table 2.4.2: Budgeted expenses for Allowances, Concessions and Services for Seniors

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Broadband for Seniors B1 5,000 4,995 - - -
Special Appropriations:
Social Security (Administration) Act 1999
Seniors Concession Allowance   35,069 - - - -
Seniors Supplement   131,961 183,591 193,988 212,219 224,166
Telephone Allowance for Commonwealth Senior Health Card Holders   9,081 - - - -
Program Support   5,667 5,129 5,216 5,696 6,042
Total program expenses   186,778 193,715 199,204 217,915 230,208

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 4.2 deliverables
Payments
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law
Broadband for Seniors
  • Number of seniors' internet kiosks established
Program 4.2 key performance indicators
Seniors Supplement
  • Number of recipients
  • Administered outlays
Broadband for Seniors
  • Percentage and number of seniors' internet kiosk users reporting improved skills and confidence in using the internet
  • Number of seniors using an internet kiosk

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Outcome 5: Disability and Carers

An adequate standard of living, improved capacity to participate economically and socially and manage life-transitions for people with disability and/or mental illness and carers through payments, concessions, support and care services.

Outcome 5 strategy

Outcome 5 encompasses the provision of income support payments and support services to people with disability and their carers, including the Disability Support Pension (DSP), Carer Allowance and Carer Payment.

FaHCSIA funds a number of services for people with disability and their carers, including supported employment services, advocacy, community mental health services, support services for children with autism spectrum disorder, and respite services.

Under the targeted community care program, community-based mental health services seek to improve the capacity of individuals, families and carers affected by mental illness to participate socially and economically. This is achieved through: supporting individuals on their recovery journey by improving life skills and quality of life; building the resilience of families (including children and young people) through increased skills and knowledge; and supporting carers to maintain their caring role.

Long-term challenges for these programs include an ageing population, improving outcomes for specialist and mainstream services, and supporting social and economic participation.

Reform of the disability services sector is continuing, and FaHCSIA is working closely with the state and territory governments on 10 key priority areas under the National Disability Agreement. An inquiry into a national long-term care and support scheme, including the feasibility of a no-fault social insurance approach, is being undertaken by the Productivity Commission, which is due to report to the Government in July 2011. The National Disability Strategy will set an overarching vision, establish policy priorities and improve the performance of mainstream services in meeting the needs of people with disability. FaHCSIA is working closely with the Department of Health and Ageing and state and territory governments to develop the National Carer Recognition Framework. The Carer Recognition Bill 2010 will recognise in law the role and contribution of Australia's carers. The National Carer Strategy will shape the agenda for reform and guide policy development and the delivery of services by government agencies and non-government organisations that work with carers, including young carers. This budget also provides additional assistance to disability and carer groups to ensure that people with disability, their families and carers have an opportunity to participate in consultations for the National Disability Strategy, the National Carer Strategy and the Productivity Commission inquiry.

The Government's Secure and Sustainable Pensions Reform package considered the needs of carers and people with disability in reforming the pension system and included Carer Payment, DSP and related payments. Pensioners on the adult rates of these payments will generally benefit from increased payment rates, the new Pension Supplement and new indexation arrangements.

The Government provides ongoing support to carers of both adults and children through the provision of Carer Payment and Carer Allowance. In addition, carers of children under 16 years of age receiving Carer Allowance also receive the annual $1000 Child Disability Assistance Payment. As part of the Secure and Sustainable Pensions package a new payment, Carer Supplement, was introduced and paid for the first time in June 2009. Carer Supplement is an annual payment of $600 to those receiving Carer Allowance for each person being cared for, as well as an additional $600 to those in receipt of Carer Payment or other equivalent. Carer Supplement will be paid each July from 2010.

From 1 July 2009, significant changes were introduced to improve access to Carer Payment for those caring for a child under 16 years of age. These included a new qualification criterion based on care required and provided, improved access for carers of a child with a terminal condition, access for carers of a child with 'short term' or 'episodic' conditions, more generous arrangements for carers of a child in hospital, and automatic qualification for Carer Allowance based on qualification for Carer Payment in respect of a child aged under 16 years.

From 1 July 2010, qualification for Carer Allowance for carers of a child under 16 years of age with disability will change. The List of Recognised Disabilities will be retained and remain the first test for qualification for Carer Allowance. For those carers whose child's condition is not listed on the List of Recognised Disabilities, the Disability Care Load Assessment (Child)-the assessment now used to determine qualification for Carer Payment (Child)-will be used to determine qualification for Carer Allowance (Child) creating a single assessment process across Carer Payment and Carer Allowance (for children). This will reduce the administrative burden on carers who apply for the two payments, as their child will only need to be assessed once. Carer Allowance (Child) will continue to be payable to a carer who has qualified for Carer Allowance before the child turns 16, for a period of up to three months after the child turns 16, to allow them time to test their eligibility for Carer Allowance (Adult).

Job Capacity Assessment - more efficient and accurate assessments for Disability Support Pension and employment services

More needs to be done to encourage people with disability to participate in community life, the key to which is supporting those who can participate to maintain their attachment to the labour market. To this end, the Government will refine the assessment processes that determine eligibility for the DSP to have a greater focus on a person's potential to work with appropriate capacity building and rehabilitation. The assessments will also give greater consideration to the person's transferrable skills, suitability for alternative employment with reasonable adjustment, and capacity to benefit from vocational training. Claimants who do not have sufficient evidence to demonstrate that they cannot be assisted back to work will have their DSP claim rejected and will instead be referred to an employment service to build their capacity. Claimants who are clearly unable to work will not be affected, including those with profound disability, serious medical conditions or terminal illness.

Changes to the assessment process for DSP will coincide with the planned implementation of revised DSP impairment tables (the tables are currently being reviewed). Also, responsibility for job capacity assessments, which are used to determine eligibility for DSP, will move from the Department of Education, Employment and Workplace Relations to FaHCSIA, so that all DSP-related policy will be in the one place.

Along with these changes, other elements of the Better and Fairer Assessments Measures, announced in the 2009-10 Budget, will be implemented from 1 July 2010. This includes improving the assessment processes that determine eligibility for DSP so that those people who are manifestly eligible have their claims determined as quickly as possible. As part of these measures, DSP assessments will be undertaken by senior job capacity assessors (DSP assessors), who will be supported by specialist medical and rehabilitation advice from a Centrelink Health Professional Advice Unit and treating doctors. DSP assessors will also have access to better information about work and employment service history. Updated work capacity guidelines for assessors will be introduced that help ensure that both medical impairment and work capacity determine the threshold for entry to DSP. There will also be a pilot focused on workforce re-engagement contacts for new entrants to DSP. The pilot will outline the assistance and incentives available to help those who may be able to work and will advise DSP customers, when they take up work, about the assistance available to help them maintain that work.

Special Disability Trusts - greater accessibility

Special Disability Trusts were introduced in 2006 to assist families wishing to make private financial provision for the current and future care and accommodation needs of a family member with severe disability without being affected by social security rules on means testing or gifting. The Government responded to recommendations made by the Senate Standing Committee on Community Affairs in its report, Building trust: Supporting families through Disability Trusts, by removing some of the barriers in taxation arrangements. It has also removed additional barriers that prevent families from establishing Special Disability Trusts, including by:

  • allowing beneficiaries to work up to seven hours a week and still qualify for a Special Disability Trust
  • significantly expanding the uses to which trust funds can be put, such as all medical expenses, including membership costs for private health funds, and maintenance expenses of Special Disability Trust assets and properties
  • allowing the trust to undertake a level of discretionary spending that is not directly related to the care and accommodation needs of the beneficiary (this will be capped at $10,000 per financial year).

In two years time, the Government will also review the concessional limit of Special Disability Trusts, the eligibility for Special Disability Trust gifting concessions and who can request trust audits.

Community engagement strategy for people with disability

The Government is committed to ensuring that people with disability, their families and carers have a say in the development of new disability and carer policy. This proposal will provide disability and carer groups with additional funding to provide an opportunity for people with disability, their families and carers to make an active contribution to consultations for the development of the National Disability Strategy, the Productivity Commission's inquiry into a long-term care and support scheme, and the National Carer Strategy.

New residency rules for Disability Support Pension

While DSP has been increased to provide greater support to those people with disability in greatest need, the Government also has a responsibility to take action to ensure that the system is fair and effective.

From January 2011, a person will generally need to reside in Australia to remain qualified for DSP. The current 13-week portability period will remain unchanged.
This proposal will bring DSP into line with other workforce age payments and close a loophole that allows DSP recipients who are living permanently overseas to continue to receive their DSP as well as other supplementary payments as long as they return to Australia every 13 weeks.

Outcome 5 also contributes to COAG's objectives under the National Disability Agreement and the National Partnership Agreement on Home and Community Care. Figure 2 in Section 2.1 lists the current intergovernmental agreements, monitored by the COAG Reform Council, to which FaHCSIA contributes.

Outcome 5 expense and resource statement

Table 2.5 provides an overview of the total expenses for Outcome 5 by program.


Table 2.5: Budgeted expenses and resources for Outcome 5

Outcome 5: Disability and Carers

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 5.1: Targeted Community Care
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 140,428 143,083
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 11,583 10,065
Revenues from independent sources (s. 31) 397 389
Expenses not requiring appropriation in the Budget year - 683
Subtotal for Program 5.1 152,408 154,220
Program 5.2: Disability Support Pension
Administered expenses
Special Appropriations 11,868,843 12,912,632
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 14,907 13,419
Revenues from independent sources (s. 31) 511 500
Expenses not requiring appropriation in the Budget year - 911
Subtotal for Program 5.2 11,884,261 12,927,462
Program 5.3: Income Support for Carers
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 2,800 2,800
Special Appropriations 4,076,230 5,098,505
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 11,428 10,087
Revenues from independent sources (s. 31) 392 384
Expenses not requiring appropriation in the Budget year - 685
Subtotal for Program 5.3 4,090,850 5,112,461
Program 5.4: Services and Support for People with
Disability    
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 301,257 311,369
Special Accounts 1,331 1,006
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 37,185 35,178
Revenues from independent sources (s. 31) 1,274 1,248
Expenses not requiring appropriation in the Budget year - 2,388
Subtotal for Program 5.4 341,047 351,189
Program 5.5: Support for Carers
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 14,396 11,312
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 8,213 7,663
Revenues from independent sources (s. 31) 281 276
Expenses not requiring appropriation in the Budget year - 520
Subtotal for Program 5.5 22,890 19,771
Outcome 5 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 458,881 468,564
Special Appropriations 15,945,073 18,011,137
Special Accounts 1,331 1,006
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 83,316 76,412
Revenues from independent sources (s. 31) 2,855 2,797
Expenses not requiring appropriation in the Budget year - 5,187
Total expenses for Outcome 5 16,491,456 18,565,103
  2009-10 2010-11
Average staffing level (number) 480 492

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 5

Program 5.1: Targeted Community Care

Program 5.1 objective

To implement community mental health initiatives to assist people with mental illness and their families and carers.

Program component objectives

Mental Health

To implement community mental health initiatives to assist people with mental illness and their families and carers to manage the impact of mental illness.

Program 5.1 expenses

The variations in program expenses across the forward years are driven by indexation arrangements and the impact of policy initiatives.


Table 2.5.1: Budgeted expenses for Targeted Community Care

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Mental Health B1 140,428 143,083 142,382 144,943 147,698
Program Support   11,980 11,137 11,325 12,023 12,752
Total program expenses   152,408 154,220 153,707 156,966 160,450

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 5.1 deliverables
Mental Health
  • Percentage and number of clients, families and carers whose lives are affected by mental illness accessing support services
Program 5.1 key performance indicators17
Mental Health
  • Percentage and number of clients, families and carers maintaining progress against individual goals18
  • Percentage and number of clients who report that they are satisfied that the service they received was appropriate to their needs
  • Percentage and number of clients from Indigenous and culturally and linguistically diverse backgrounds
  1. The following performance indicators from the 2009-10 PB Statements do not appear in the 2010-11 PB Statements as they have been collapsed into a single deliverable to reflect the three service strategies as one program:
    • Percentage and number of people accessing recovery support services whose lives are severely affected by mental illness
    • Percentage and number of families and carers assisted through respite, brokerage and community-based support.
  2. This performance indicator has been included in the 2010-11 PB Statements to facilitate the measurement of intermediate outcomes.

Program 5.2: Disability Support Pension

Program 5.2 objective

To make payments to eligible people with disability who are unable to achieve financial independence through sustained, mainstream employment.

Program 5.2 has no program components.

Program 5.2 expenses

The changes to program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives.

The strong increase between 2009-10 and 2010-11 is mostly attributed to an increase in customers during the economic downturn and is not expected to continue at the same level across the forward years.

The 2010-11 Budget initiative, Job Capacity Assessment - more efficient and accurate assessments for Disability Support Pension and employment services, commences on 1 July 2011 and is expected to reduce growth from 2011-12.


Table 2.5.2: Budgeted expenses for Disability Support Pension

 

2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Special Appropriations:
Social Security (Administration) Act 1999
Disability Support Pension 11,868,843 12,912,632 13,381,136 13,886,196 14,296,696
Program Support 15,418 14,830 15,052 15,519 16,035
Total program expenses 11,884,261 12,927,462 13,396,188 13,901,715 14,312,731

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 5.2 deliverables

Payments are made through Centrelink to eligible claimants under the provisions of social security law.

Program 5.2 key performance indicators
Disability Support Pension
  • Duration on payment
  • Percentage and number of recipients reporting employment income19
  • Percentage and number of recipients on part rate due to the means test
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
  • Percentage and number of estimated population of people with disability who receive payment
  • Percentage and number of Disability Support Pension population as proportion of the total Australian working age population
  1. The wording for this performance indicator has changed to distinguish income from labour force participation for people in receipt of the Disability Support Pension.

Program 5.3: Income Support for Carers

Program 5.3 objective

To make payments and allowances to financially assist eligible carers of people with disability or a severe medical condition or of people who are frail aged.

Program component objectives

Ex gratia payments to unsuccessful applicants of Carer Payment (Child)
To make one‑off payments to families not eligible for income support where, following a catastrophic event involving a child aged 0 to 6 years, the family is going through a period of significant adjustment as a result of the care needs of the child.

Carer Allowance (Adult)
To make payments to financially assist carers who provide daily care and attention in a private home to a person with a disability or severe medical condition.

Carer Allowance (Child)
To make payments to financially assist carers who provide daily care and attention in a private home to a child under 16 years with disability or severe medical condition.

Child Disability Assistance Payment
To make payments annually to Carer Allowance (Child) recipients to help them purchase appropriate assistance for their family.

Carer Payment
To make payments to financially assist carers whose caring responsibilities for people with disability, frailty because of age or a severe medical condition severely restrict their ability to undertake paid employment.

Carer Supplement
To make payments annually to eligible carers to provide additional financial security and alleviate financial pressures.

Wife Pension (DSP)
To make payments to female partners of Disability Support Pension recipients to assist them financially. This payment was closed to new entrants from 1 July 1995.

Linked to: Personal benefits payments under this program are delivered by Centrelink.

Program 5.3 expenses

The variations in program expenses across the forward years are driven by projected changes in the economy, demographics, indexation parameters and the impact of policy initiatives, including the 2009-10 Budget initiative, Secure and Sustainable Pension Reform package.

The introduction of a new Carer Supplement was announced in the 2009-10 Budget and the first payment was made in June 2009 and ongoing payments start from 1 July 2010.

Wife Pension (DSP) is a closed payment with no new grants since 1 July 1995. Instead, people in need may qualify for other income support payments.


Table 2.5.3: Budgeted expenses for Income Support for Carers

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Ex-Gratia Payments to Unsuccessful
Applicants of Carer Payment (Child) B1 2,800 2,800 2,800 - -
Special Appropriations:
Social Security (Administration) Act 1999
Carer Allowance (Adult)   1,046,081 1,159,249 1,271,509 1,392,784 1,534,515
Carer Allowance (Child)   427,986 458,877 489,875 521,348 558,845
Carer Payment   2,272,400 2,734,226 3,158,092 3,678,454 4,236,939
Carer Supplement   - 438,470 474,245 502,638 543,608
Child Disability Assistance Payment   152,675 156,688 162,879 169,360 176,213
Wife Pension (DSP)   177,088 150,995 126,275 105,095 87,287
Program Support   11,820 11,156 11,358 12,312 12,910
Total program expenses   4,090,850 5,112,461 5,697,033 6,381,991 7,150,317

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 5.3 deliverables

Payments are made through Centrelink to eligible claimants under the provisions of social security law.

Ex gratia payments to unsuccessful applicants for Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the Financial Management and Accountability Act 1997.

Program 5.3 key performance indicators
Carer Allowance (Adult and Child) / Carer Payment / Child Disability Assistance Payment / Wife Pension (DSP) / Carer Supplement
  • Number of recipients
  • Administered outlays
  • Payment accuracy
Carer Allowance (Adult and Child) / Carer Payment
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
  • Percentage and number of primary carers who are receiving payment20
Carer Payment / Wife Pension (DSP)
  • Percentage and number of recipients reporting employment income
  • Percentage and number of recipients on full rate and on part rate due to the means test
Wife Pension (DSP)
  • Ratio of current number of Wife Pension (DSP) recipients to the number of Wife Pension (DSP) recipients at 1 July 1995
  1. This indicator relies on the definition of primary carer used by the Survey of Disability and Carers.

Program 5.4: Services and Support for People with Disability

Program 5.4 objective

To provide supported employment and improve access to information, advocacy and services for people with disability so they can develop their capabilities and actively participate in community and economic life.

Program component objectives

Services for People with Disability
To provide social support and community-based care for people with disability, their carers and their families, to promote independence, self-reliance and participation in the community.

Program 5.4 expenses

The increase to program expenses are driven by changes in projected indexation parameters, a movement of funds between 2009-10 and 2010-11 and the impact of policy initiatives.

The 2010-11 Budget initiative, Job Capacity Assessment - more efficient and accurate assessments for Disability Support Pension and employment services, transfers responsibility for Job Capacity Assessments for DSP assessments from DEEWR to FaHCSIA from 1 July 2011.


Table 2.5.4: Budgeted expenses for Services and Support for People with Disability

Disability

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Services for People with Disability B1 301,257 311,369 311,253 319,105 327,444
Special Account Expenses:
National Disability Agreement
Special Account   1,331 996 876 270 278
Other Services - Services for Other
Government and Non-Government Bodies   - 10 - - -
Program Support   38,459 38,814 39,334 42,501 45,083
Total program expenses   341,047 351,189 351,463 361,876 372,805

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 5.4 deliverables
  • Percentage and number of people with disability, including children with autism, receiving support services
  • Percentage and number of supported employees assisted by supported employment services
  • Percentage and number of carers of people with severe or profound disability assisted with short-term or immediate respite
  • Percentage and number of clients receiving Outside School Hours Care for Teenagers with Disability Services
Program 5.4 key performance indicators21
Services for People with Disability
  • Percentage and number of supported employees who achieve an employment outcome (at least eight hours per week for at least 13 weeks from commencement in a supported employment place)
  • Percentage and number of individuals, parents and carers who report that they were assisted to access choices and options that enabled them to manage their needs
  • Percentage and number of supported employees/clients with reduced reliance on income support payments (sufficient income to affect Disability Support Pension)
  • Percentage and number of clients from Indigenous and culturally and linguistically diverse backgrounds
  • Percentage and number of clients reporting that the services received were appropriate to their needs as parents/carers
  1. The 2009-10 performance indicator 'Percentage and number of people with disability receiving support services' has been amended and inserted as a program deliverable, for which it is better suited.

Program 5.5: Support for Carers

Program 5.5 objective

To provide peer support, respite and information services for carers to help them balance their care responsibilities with social participation and, in the case of young carers, completion of their education.

Program 5.5 has no program components.

Program 5.5 expenses

The reduction in program expenses from 2009-10 to 2010-11 is primarily due to the implementation of the 2008-09 Budget initiative, Improved Support for Carers-Carer Specialised Assessment Teams, for which funding is to be directly appropriated to Centrelink from 1 July 2010. Increases in program estimates over the forward estimates reflect projected changes in indexation parameters.


Table 2.5.5: Budgeted expenses for Support for Carers

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Support for Carers B1 14,396 11,312 11,482 11,664 11,851
Program Support   8,494 8,459 8,473 9,294 9,857
Total program expenses   22,890 19,771 19,955 20,958 21,708

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 5.5 deliverables

Young Carers
  • Respite, support information, referral and advice for young carers at risk of not completing secondary education
MyTime
  • Peer support for parents of children with disability or chronic medical condition

Program 5.5 key performance indicators22

Support for Carers
  • Percentage and number of clients from Indigenous and culturally and linguistically diverse backgrounds
  • Number of young carers at risk of not completing secondary education assisted with respite services23
  • Number of parents and carers assisted by MyTime peer support groups24
  1. The performance indicator 'Percentage and number of clients satisfied that the services they received were appropriate to their needs as carers' has been deleted as this information is not collected.
  2. This performance indicator has been included as it better reflects the objective of the program.
  3. This performance indicator is no longer expressed as a proportion of those receiving Carer Allowance (Child) six years or under as this is not a meaningful measure of the program objective.

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Outcome 6: Women

Improved gender equality through coordinated whole of government advice and support for women's economic security, safety and status.

Outcome 6 strategy

The Office for Women delivers programs and provides policy advice and coordination across government to improve equality between women and men.

Equality benefits women and men, as well as their families and communities. Progress towards equality prevents women from falling into poverty and improves outcomes for the most vulnerable women and their families.

The Office for Women works in three priority areas: reducing violence against women; improving economic outcomes for women; and ensuring women's equal place in society. The office also supports work across government on important issues to enhance the responsiveness of policy to the contemporary needs of women and men and to advance equality.

The Office for Women undertakes a range of work through the Gender Equality Program, including:

  • initiatives that reduce violence against women and their children, with a focus on primary prevention, research, improved expert services for victims and their families, and the development and implementation of the National Plan to Reduce Violence against Women and their Children through COAG
  • initiatives to build women's capacity to take on leadership responsibilities and to improve women's economic outcomes
  • supporting women and women's organisations to engage actively with government and to ensure that women's needs, priorities and interests are taken into account in important policy decisions
  • research into equality issues
  • administration of the Support for Victims of Trafficking Program
  • representing government at national and international forums, such as the United Nations, to promote equality and women's empowerment
  • whole of government leadership in policy development on equality between women and men.

Violence against women is one of the most serious causes and consequences of continued inequality. It is one of the key risk factors for women slipping into poverty and disadvantage. The Australian Government is providing leadership to achieve a significant reduction in violence against women and their children.

Improving women's economic outcomes is a key to achieving equality between women and men in Australia. It will also significantly boost Australia's productivity. Modelling commissioned from the National Centre for Social and Economic Modelling by the Office for Women demonstrates that addressing the continuing gender pay gap would contribute $93 billion to the Australian economy.

A key part of the Government's efforts to improve women's economic security has been the review, by the Office for Women, of the effectiveness and efficiency of the Equal Opportunity for Women in the Workplace Act 1999 and the Equal Opportunity for Women in the Workplace Agency. The office is working closely with the Department of Education, Employment and Workplace Relations to develop a broad response for implementation in 2010-11.

The Gender Equality Program also funds activities to ensure women's equal place in society. This involves giving women a voice in important policy discussions and supporting women's leadership aspirations. In March 2010, a new model for the National Women's Alliances was established. Work in 2010-11 will continue to support the six new alliances as the primary advocacy and consultation mechanism between the Australian Government and women's groups. The alliances are a key part of the Government's efforts to develop and work with the Third Sector in Australia.

The Office for Women continues to ensure that Australia is a leader internationally in promoting equality between women and men. Australia will appear before the United Nations Committee on the Elimination of Discrimination Against Women in 2010 and will be an active participant in key international forums, including the 55th session of the United Nations Commission on the Status of Women and the Asia-Pacific Economic Cooperation (APEC) Gender Focal Point Network meeting.

Recognising that a range of work across government has an effect on outcomes for women and men and on progress towards equality, the Office for Women is working to engage in key policy development and implementation work across government to promote consistent and integrated responses and to develop capacity to promote equality. For example, the office has developed, and will support, a panel of experts to provide advice across government. This work will continue to improve the effectiveness and efficiency of policy and programming.

The Office for Women continues to manage the Support for Victims of Trafficking Program as part of the Government's anti-trafficking strategy.

Outcome 6 expense and resource statement

Table 2.6 provides an overview of the total expenses for Outcome 6 by program.


Table 2.6: Budgeted expenses and resources for Outcome 6

Outcome 6: Women

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 6.1: Gender Equality for Women
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 27,475 20,805
Special Accounts 105 -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 13,744 11,991
Revenues from independent sources (s. 31) 471 461
Expenses not requiring appropriation in the Budget year - 814
Subtotal for Program 6.1 41,795 34,071
Outcome 6 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 27,475 20,805
Special Accounts 105 -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 13,744 11,991
Revenues from independent sources (s. 31) 471 461
Expenses not requiring appropriation in the Budget year - 814
Total expenses for Outcome 6 41,795 34,071
  2009-10 2010-11
Average staffing level (number) 84 84

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 6

Program 6.1: Gender Equality for Women

Program 6.1 objective

To implement strategies in priority areas to achieve gender equality. The priority areas include reducing violence against women, improving economic outcomes for women, and ensuring women's equal place in society.

Program component objectives

Gender Equality for Women
To implement strategies in priority areas to achieve gender equality.

Other Services-Services for other Government and Non-Government Bodies (Special Account)
To manage expenditure in connection with services performed on behalf of other governments and bodies that are not agencies subject to the Financial Management and Accountability Act 1997, including the Commonwealth, State, Territory and New Zealand Ministers' Conference on the Status of Women.

Program 6.1 expenses

The variations in the budgets for program expenses across the forward years are driven by indexation arrangements, the impact of policy initiatives and a one-off movement of funds from 2008-09 to 2009-10. The movement of funds from 2008-09 to 2009-10 for the National Plan to Reduce Violence against Women and Children was approved in the 2009-10 Budget and was reflected in the 2009-10 Budget papers. Increases across the forward years from 2010-11 are driven by projected changes in indexation parameters and the impact of ongoing policy initiatives.


Table 2.6.1: Budgeted expenses for Gender Equality for Women

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Gender Equality for Women B1 27,475 20,805 20,991 21,455 21,972
Special Account Expenses:
Other Services - Services for Other
Government and Non-Government Bodies   105 - - - -
Program Support   14,215 13,266 13,490 16,880 17,907
Total program expenses   41,795 34,071 34,481 38,335 39,879

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 6.1 deliverables

Number of individuals contacting Helpline programs

Program 6.1 key performance indicators
Gender Equality for Women
  • Percentage and number of women representatives on Australian Government boards
  • Assessment by stakeholders of the contribution of the Office for Women to national debates affecting gender equality
  • Percentage and number of women contacting the national online and 1800 service25
  1. This abridged performance indicator is fully measurable. There is no data presently available to report on the appropriateness and timeliness of referral.

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Outcome 7: Indigenous

Closing the gap in Indigenous disadvantage with improved wellbeing, capacity to participate economically and socially and to manage life-transitions for Indigenous Australians through Indigenous engagement, coordinated whole of government policy advice and targeted support services.

Outcome 7 strategy

As the lead agency in Indigenous Affairs, FaHCSIA is responsible for whole of government leadership, coordination and policy advice in relation to closing the gap in Indigenous disadvantage.

A key aspect of this responsibility is working with the states and territories, on behalf of the Commonwealth, to engage with and provide better outcomes for Indigenous Australians. The Council of Australian Governments (COAG) agreed in December 2007 to a partnership between all levels of government to work with Indigenous communities to achieve the target of closing the gap in Indigenous disadvantage. The National Indigenous Reform Agreement, agreed in November 2008, established an overarching framework for this work including policy principles, objectives and performance indicators. FaHCSIA is the lead agency responsible for coordinating Commonwealth efforts under the agreement.

In addition to its responsibilities under the National Indigenous Reform Agreement, FaHCSIA is responsible for targeted service delivery to Indigenous people under a number of Indigenous-specific and mainstream programs. The mainstream programs, which are accounted for under other outcomes, contribute significantly to closing the gap in Indigenous disadvantage. FaHCSIA is working to ensure that all its programs are fully accessible to Indigenous people, consistent with the Service Delivery Principles for Programs and Services for Indigenous Australians established in the National Indigenous Reform Agreement.

FaHCSIA is also responsible for overseeing implementation of three of the seven Indigenous-specific National Partnerships agreed by COAG:

  • the National Partnership on Remote Service Delivery agreed in November 2008
  • the National Partnership on Remote Indigenous Housing, first agreed in November 2008 and renegotiated in March 2010
  • the National Partnership on Closing the Gap in the Northern Territory agreed in July 2009.

In 2010-11, the significant investment committed under these partnerships will fund major improvements to services for Indigenous people. The priority locations under the National Partnership on Remote Service Delivery by jurisdiction, are:

  • Northern Territory: Angurugu, Galiwinku, Gapuwiyak, Gunbalanya, Ntaria (Hermannsburg), Lajamanu, Maningrida, Milingimbi, Nguiu, Ngukurr, Numbulwar, Wadeye, Yirrkala, Yuendumu and Umbakumba
  • Queensland: the Gulf communities of Mornington Island and Doomadgee and the Cape York communities of Aurukun and Hope Vale, together with continuing work in Coen and Mossman Gorge, which are part of the Cape York Welfare Reform trial
  • Western Australia: Fitzroy Crossing and surrounding communities, Halls Creek and surrounding communities, and the Dampier Peninsula (with a focus on Beagle Bay and Ardyaloon)
  • South Australia: Amata and Mimili in the Anangu Pitjantjatjara Yankunytjatjara Lands
  • New South Wales: Walgett and Wilcannia.

FaHCSIA is the lead agency in the Commonwealth for the implementation of the National Urban and Regional Service Delivery Strategy for Indigenous Australians and the National Strategy for Food Security in Remote Indigenous Communities. FaHCSIA's work on food security includes the development of the Food Security Strategy and the implementation of stores licensing in the Northern Territory.

FaHCSIA also contributes to ongoing work under other Indigenous-specific National Partnerships, such as the National Partnership on Indigenous Economic Participation and the National Partnership Agreement on Indigenous Early Childhood Development.

A collaborative whole of government approach to Indigenous Affairs

Working collaboratively and cooperatively across the whole of government is vital to ensuring seamless, efficient and effective delivery on the commitments made through COAG.

FaHCSIA's national network of state offices, Regional Operations Centres and Indigenous coordination centres facilitates coordinated and customised delivery of Indigenous services and negotiation of regional and local arrangements and agreements for effective partnerships and shared responsibilities.

FaHCSIA also coordinates new Indigenous policy development across government, including through the Single Indigenous Budget Submission, and the evaluation of the impacts of existing programs and policies.

Improved safety and wellbeing for remote communities in the Northern Territory

FaHCSIA is responsible for whole of government coordination and evaluation of the National Partnership on Closing the Gap in the Northern Territory. This partnership between the Australian and Northern Territory governments is providing $807.4 million in additional targeted funding over three years from 2009-10 to close the gap in the Northern Territory, with a particular focus on ensuring the wellbeing of women and children.

FaHCSIA works with the Northern Territory Government to implement measures in relation to remote policing, combating abuse of alcohol and other substances, community safety, supporting families, welfare reform, and governance and leadership. FaHCSIA is also the lead agency with responsibility for transitioning the Northern Territory Emergency Response measures introduced by the previous Government into a model that conforms with the Racial Discrimination Act 1975.

Improved service delivery for Indigenous people in remote communities

FaHCSIA has responsibility for major reforms to service delivery for Indigenous people in remote communities, including work under two major partnerships: the National Partnership on Remote Service Delivery and the National Partnership on Remote Indigenous Housing. These partnerships aim to establish a coordinated approach by the Commonwealth and the state and territory governments to housing and remote service delivery.

The 2010-11 Budget includes the establishment of a Remote Service Delivery National Partnership Flexible Funding Pool to meet interim needs in priority communities under the National Partnership on Remote Service Delivery. This will improve responsiveness and reduce red tape by funding projects identified as immediate community needs where there is currently no readily accessible alternative source of funding. It will play an important part in meeting the commitment to achieving objectives identified in local implementation plans agreed under the National Partnership.

Improved economic participation

FaHCSIA delivers a range of initiatives that empower Indigenous people to access and participate in the wider economy. This includes implementing the recent reforms of the Community Development and Employment Projects (CDEP) program. In 2010-11, these reforms will be extended to include CDEP program delivery in the Torres Strait. The reformed CDEP program in the Torres Strait will focus on work readiness, getting more Indigenous people into jobs that have proper remuneration and entitlements, extending local training opportunities and promoting community development.

In February 2010, the Prime Minister announced the appointment of a Government Ambassador for Business Action. FaHCSIA will support the Ambassador, engaging leaders in the private sector with Indigenous business leaders and developing new initiatives aimed at strengthening economic development in Indigenous communities.

A better relationship with Indigenous Australians

The Australian Government, along with the state and territory governments, has committed to ongoing engagement and consultation with Indigenous people. This commitment recognises that it is critical that Indigenous Australians are involved in developing policies and programs to improve their lives and that their views are represented to government.

The National Congress of Australia's First Peoples, a new national representative body, is being established to provide for partnership and genuine engagement at the national level. The Government will consult with the Congress regarding issues and policies affecting Indigenous people.

The Australian Government has also demonstrated its commitment to resetting the relationship between Indigenous and non-Indigenous Australians by funding Reconciliation Australia, which is the key organisation working for reconciliation and the primary driver of community-level reconciliation education and awareness programs.

A National Indigenous Knowledge Centre was one of nine priority announcements from the Australia 2020 Summit. FaHCSIA is consulting widely and undertaking a feasibility study on potential roles and models for a National Indigenous Knowledge Centre.

FaHCSIA is assisting in the establishment of the Aboriginal and Torres Strait Islander Healing Foundation announced in February 2009. The foundation will provide healing services to Indigenous people experiencing trauma and grief, with a strong focus on the unique needs of the Stolen Generations.

FaHCSIA also manages the return of Indigenous human remains from overseas institutions to their communities of origin through the International Repatriation Program. The return of ancestral remains has great cultural significance for Indigenous communities.

FaHCSIA builds on individual strengths through providing Indigenous leadership and capability development to Indigenous people and communities throughout Australia. This work, combined with local community development initiatives coordinated by the Indigenous coordination centres and Regional Operations Centres, has created greater capability for Indigenous people to participate in decision making and policy implementation.

Outcome 7 also contributes to COAG's objectives under the National Affordable Housing Agreement and the National Disability Agreement. Figure 2, in Section 2.1 lists the current intergovernmental agreements, monitored by the COAG Reform Council, to which FaHCSIA contributes.

Outcome 7 expense and resource statement

Table 2.7 provides an overview of the total expenses for Outcome 7 by program.


Table 2.7: Budgeted expenses and resources for Outcome 7

Outcome 7: Indigenous

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 7.1: Economic Development and Participation
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 366,164 319,753
Special Accounts 134,209 1,510
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 61,245 39,242
Revenues from independent sources (s. 31) 3,916 3,874
Expenses not requiring appropriation in the Budget year - 2,664
Subtotal for Program 7.1 565,534 367,043
Program 7.2: Indigenous Housing and Infrastructure
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 121,150 134,871
Special Accounts 1,954 263
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 28,502 30,153
Revenues from independent sources (s. 31) 1,823 1,803
Expenses not requiring appropriation in the Budget year - 2,047
Subtotal for Program 7.2 153,429 169,137
Program 7.3: Native Title and Land Rights
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 69,289 76,525
Special Accounts - 45,000
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 7,136 6,102
Revenues from independent sources (s. 31) 456 451
Expenses not requiring appropriation in the Budget year - 414
Subtotal for Program 7.3 76,881 128,492
Program 7.4: Indigenous Capability and Development
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 56,328 65,808
Special Appropriations 178,819 194,187
Special Accounts 115,570 150,907
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 96,911 88,526
Revenues from independent sources (s. 31) 6,197 6,130
Expenses not requiring appropriation in the Budget year - 6,009
Subtotal for Program 7.4 453,825 511,567
Program 7.5: Closing the Gap in the Northern Territory
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 102,750 29,269
Special Appropriations 4,815 2,593
Special Accounts - -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 75,733 80,496
Revenues from independent sources (s. 31) 4,843 4,789
Expenses not requiring appropriation in the Budget year - 5,465
Subtotal for Program 7.5 188,141 122,612
Outcome 7 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 715,681 626,226
Special Appropriations 183,634 196,780
Special Accounts 251,733 197,680
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 269,527 244,519
Revenues from independent sources (s. 31) 17,235 17,047
Expenses not requiring appropriation in the Budget year - 16,599
Total expenses for Outcome 7 1,437,810 1,298,851
  2009-10 2010-11
Average staffing level (number) 1,001 929

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Contributions to Outcome 7

Program 7.1: Economic Development and Participation

Program 7.1 objective

To improve the capacity of Indigenous Australians to participate in the economy.

Program component objectives

Community Development Employment Projects Program

To strengthen Indigenous communities and support Indigenous people in remote areas through community development and participation opportunities that develop skills, improve capacity, work readiness and employability and link with local priorities.

Linked to: The Community Development Employment Projects Program works in tandem with Job Services Australia and the Indigenous Employment Program. Payments under the National Partnership Agreement on Indigenous Economic Participation are made by the Treasury. For information about those payments, refer to the Treasury's 2010-11 PB Statements and Budget Paper No. 3, Australia's Federal Relations 2010-11.

Program 7.1 expenses

The reduction in program expenses from 2010-11 to 2011-12 is due to the closure of the Indigenous Employment Special Account. Funding is to be directly appropriated to contributing agencies across the Commonwealth from 1 July 2010. Further variation in program expenses across forward years is predominantly driven by changes to indexation arrangements and the impact of policy initiatives.


Table 2.7.1: Budgeted expenses for Economic Development and Participation

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Community Development
Employment Projects Program B1 366,164 319,753 188,578 189,615 195,472
Special Account Expenses:
Indigenous Employment Special Account   134,209 1,510 - - -
Program Support   65,161 45,780 47,207 49,436 40,700
Total program expenses   565,534 367,043 235,785 239,051 236,172

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 7.1 deliverables
  • Number of Community Development Projects
  • Number of Work Readiness Services
COAG

This program also contributes to the objectives of the National Partnership Agreement on Indigenous Economic Participation, as listed in Figure 2 in Section 2.1.

Program 7.1 key performance indicators
  • Percentage and number of the Community Action Plans which are progressing on schedule to meet community development goals for CDEP by 30 June 2012
  • Percentage and number of CDEP participants who have commenced non-accredited training
  • Percentage and number of CDEP participants who commenced and completed accredited training
  • Percentage and number of CDEP participants who commenced Work Experience who remained in continued Work Experience for 13 weeks or more
  • Percentage and number of CDEP participants who commenced off-CDEP employment
  • Percentage and number of CDEP participants who commenced off-CDEP employment that remained in continued employment for 13 weeks or more

Note: Individual clients may participate in a number of activities over the course of the reporting period.

Program 7.2: Indigenous Housing and Infrastructure

Program 7.2 objective

To improve the quality of Indigenous housing and tackle overcrowding and homelessness in remote communities.

Program component objectives

National Programs and Projects
To deliver national programs and projects, including the Indigenous Mothers' Accommodation Fund, the Indigenous Boarding Hostels Partnerships and the Fixing Houses for Better Health Program. In addition, funding is provided for delivery of some municipal and essential services to Indigenous communities under existing arrangements pending the consideration of roles, responsibilities and funding across governments as agreed under the National Partnership Agreement on Remote Indigenous Housing.

Linked to: Most housing assistance to Indigenous people living in non-remote areas is provided through programs that are not Indigenous-specific. For information about those programs, refer to Outcome 2.

Payments under the National Partnership Agreement on Remote Indigenous Housing, the National Partnership Agreement on Homelessness, the National Partnership Agreement on Social Housing and the National Affordable Housing Agreement are made by the Treasury. For information about those payments, refer to the Treasury's 2010-11 PB Statements and Budget Paper No. 3, Australia's Federal Relations 2010-11.

Program 7.2 expenses

The variations in program expenses across the forward years are affected by indexation arrangements, a movement of funds for the Indigenous Boarding Hostels Partnership and the cessation of current funding for municipal and essential service provision. Under the National Partnership Agreement on Remote Indigenous Housing, it was agreed with states and the Northern Territory to work towards clearer roles and responsibilities and funding for municipal and essential services and the implementation of new arrangements by 1 July 2012.

A movement of funds of $25.1 million from 2009-10 to 2010-11 ($20.1 million) and 2011-12 ($5.0 million) for the Indigenous Boarding Hostels Partnerships is included in the 2010-11 Budget.


Table 2.7.2: Budgeted expenses for Indigenous Housing and Infrastructure

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Remote Indigenous Housing B1 120,469 110,547 101,843 63,697 65,258
Indigenous Boarding Hostels            
Partnerships B1 681 24,324 5,000 - -
Special Account Expenses:
Other Services - Services for Other
Government and Non-Government Bodies   1,954 263 750 750 835
Program Support   30,325 34,003 33,605 36,027 37,940
Total program expenses   153,429 169,137 141,198 100,474 104,033

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 7.2 deliverables26
National Programs and Projects
  • Percentage and number of new hostel construction projects that met agreed construction milestones
  1. Under the National Partnership Agreement on Remote Indigenous Housing, deliverables for the states and the Northern Territory include the number of new dwellings completed and the number of dwellings refurbished.
COAG

This program also contributes to the objectives of the National Partnership Agreement on Remote Indigenous Housing, as listed in Figure 2 in Section 2.1.

Program 7.2 key performance indicators 27,28
National Programs and Projects
  • Number of hostel beds for Indigenous students handed over to a hostel operator by 30 June 2012
  • Number of hostel beds for Indigenous mothers handed over to a hostel operator by 30 June 2011
  • Number of houses where functional assessments and fix works have been completed under Fixing Houses for Better Health projects by 30 June 201
  1. The performance indicator from the 2009-10 PB Statements 'Comprehensive repairs and maintenance program in place for all houses in remote communities by 2010' does not appear in the 2010-11 PB Statements as it pertains to services that states and the Northern Territory have agreed to deliver under the National Partnership Agreement on Remote Indigenous Housing.
  2. The performance indicator from the 2009-10 PB Statements 'Percentage of hostel beds occupied' does not appear in the 2010-11 PB Statements as it has been superseded by the partnership arrangements under which partners other than FaHCSIA are expected to operate the hostels.

Program 7.3: Native Title and Land Rights

Program 7.3 objective

To support Indigenous rights to land recognised or provided for through Commonwealth land rights legislation and facilitate the representation and assistance of native title claimants and holders in the pursuit and exercise of native title rights.

Program component objectives

Native Title
To provide representation and assistance for native title holders and claimants in their efforts to gain formal recognition of native title rights and in the exercise of those rights, through a network of funded native title representative bodies and native title service providers. (The formal recognition and exercise of native title rights can contribute to closing the gap for affected communities by facilitating greater economic and social participation.)

Land Rights
To support Indigenous rights to land recognised or provided for through Commonwealth land rights legislation.

Linked to: For other Commonwealth expenditure on the native title system, see the Attorney-General's Department's 2010-11 PB Statements.

Program 7.3 expenses

The variations in program expenses across the forward years are driven by projected changes in indexation parameters, the impact of policy and, in particular, the effect of the Native Title System-Additional Funding measure announced in the 2009-10 Budget.

Table 2.7.3: Budgeted expenses for Native Title and Land Rights

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Native Title and Land Rights B1 69,289 76,525 84,258 86,870 88,597
Special Account Expenses:
Aboriginal and Torres Strait Islander
Land Fund   - 45,000 45,990 47,094 48,177
Program Support   7,592 6,967 7,081 7,619 8,068
Total program expenses   76,881 128,492 137,329 141,583 144,842

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 7.3 deliverables

Services under this program are demand driven, and completion rates are determined in a complex interaction with other stakeholders, often with conflicting interests. In consequence, deliverables cannot be forecast for forward years.

Program 7.3 key performance indicators
Native Title
  • Proportion of native title claims progressed
  • Proportion of native title claims concluded
  • Number of future act agreements progressed and concluded

Program 7.4: Indigenous Capability and Development

Program 7.4 objective

To provide engagement and support for individuals, families and communities to improve wellbeing and capability.

Program component objectives

Indigenous Capability and Development
To deliver services that support Indigenous individuals, families and communities to improve their wellbeing and engagement with government, with a focus on leadership and capacity building and promoting Indigenous culture and knowledge, and to provide funding for independent organisations with similar objectives.

Flexible Funding
To address priority needs through flexible funding for strategic investments, including community development projects in Remote Service Delivery National Partnership priority communities and elsewhere.

Registrar of Indigenous Corporations
To register, regulate and develop the capacity of Indigenous corporations to improve their corporate governance.

Aboriginals Benefit Account (Special Appropriation)
To administer statutory royalty equivalent monies derived from mining on Aboriginal land in the Northern Territory under the Aboriginal Land Rights (Northern Territory) Act 1976, consistent with the Financial Management and Accountability Act 1997.

Aboriginal and Torres Strait Islander Land Account
To provide a secure and ongoing source of funds to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal persons and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base.

Ranger Agreement
To make payments to the Northern Land Council as a form of rental to provide access to the Ranger Project area for the purposes of mining.

Linked to: For information on the Indigenous Land Corporation, refer to the corporation's agency resources and planned performance section in these PB Statements.

Program 7.4 expenses

The variations in program expenses across the forward years are driven by projected changes in indexation parameters and the impact of policy initiatives. The relevant policy initiatives are two 2009-10 Budget measures: Reconciliation Australia, which provides $10.8 million over three years from 2010-11, and Indigenous Healing Foundation, which provides $26.6 million over four years from 2009-10.

Changes in Aboriginals Benefit Account royalty equivalent revenue across the forward years are subject to the profits recorded by individual mines and to world resource prices.

Table 2.7.4: Budgeted expenses for Indigenous Capability and Development

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Indigenous Capability and            
Development1 B1 47,666 48,316 46,326 45,912 44,267
Indigenous Healing Foundation B1 5,710 7,658 7,834 4,857 -
Reconciliation Australia B1 - 3,600 3,600 3,600 -
National Aboriginal and Torres
Strait Islander Representative Body B1 2,952 6,234 6,795 8,341 4,911
Special Appropriations:
Aboriginal Land Rights (Northern Territory) Act 1976
Aboriginals Benefit Account
Special Appropriation   178,619 193,987 280,962 436,480 441,414
Ranger Agreement   200 200 200 200 200
Special Account Expenses:
Aboriginals Benefit Account
Special Account   112,533 148,407 171,228 216,844 204,328
Indigenous Communities Strategic
Investment   3,037 2,500 2,500 2,500 2,500
Program Support   103,108 100,665 102,295 109,279 114,765
Total program expenses   453,825 511,567 621,740 828,013 812,385

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

  1. On 11 February 2010, the Prime Minister announced the Remote Service Delivery Flexible Funding Pool committing $46 million over three years ($17 million per annum for 2010-11 and 2011-12, and $12 million for 2012-13) to support the implementation of the National Partnership Agreement on Remote Service Delivery. This funding will be appropriated directly to the Indigenous Capability Development Program. However, the funds will be transferred to and managed through a new Special Account which, at date of publication, was not yet created.
Program 7.4 deliverables
Indigenous Capability and Development
  • Number of people who participated in Indigenous leadership programs
  • Number of Indigenous Women's Program projects
  • Number of Indigenous leadership capacity development workshops held in priority communities under the National Partnership Agreement on Remote Service Delivery
  • Number of Indigenous leadership capacity development workshops held in locations other than priority communities under the National Partnership Agreement on Remote Service Delivery, including national, place-based and targeted workshops
Flexible Funding
  • Number of flexible funding projects
Registrar of Indigenous Corporations
  • Number of participants in corporate governance capacity development programs

Program 7.4 key performance indicators

Indigenous Capability and Development
  • Percentage and number of participants in Indigenous leadership programs who reported that they benefited from increased knowledge, skills and capabilities gained from their participation
  • Percentage and number of Indigenous Women's Program projects that met contractual requirements, including agreed outcomes
Flexible Funding
  • Percentage and number of flexible funding projects that have met specified project objectives
Registrar of Indigenous Corporations
  • Percentage and number of Aboriginal and Torres Strait Islander corporations that are compliant with reporting requirements under the Corporations (Aboriginal and Torres Strait Islander) Act 2006
  • Percentage and number of participants in corporate governance capacity development programs who have reported a significant increase in corporate governance knowledge and skills
  • Percentage and number of clients satisfied that the services provided met their needs

Program 7.5: Closing the Gap in the Northern Territory

Program 7.5 objective

To provide whole of government policy coordination and to implement targeted measures in relation to the National Partnership Agreement on Closing the Gap in the Northern Territory, which aims to protect women and children, improve community capacity and provide sustainable community development in prescribed communities.

Program component objectives

Family Support Package
To protect Indigenous children from abuse and strengthen Indigenous families and communities in the Northern Territory through a coordinated approach to the provision of services to improve child development, child safety and family functioning.

Youth in Communities
To deliver a comprehensive Indigenous youth strategy in the Northern Territory, to provide an effective diversion from at-risk behaviours and to improve life choices and outcomes.

Community Stores
To enhance the contribution of community stores to achieving food security in remote communities and ensure that community stores are able to meet the requirements of the Income Management arrangements.

Linked to:

Early childhood and playgroup services are delivered under Program 1.1: Family Support.

Welfare reform is delivered under Program 3.1: Financial Management.

Leadership and community development services are delivered under Program 7.4: Indigenous Capability and Development.

Payments under the National Partnership Agreement on Closing the Gap in the Northern Territory and the National Partnership Agreement on Remote Service Delivery are made by the Treasury. For information about those payments, refer to the Treasury's 2010-11 PB Statements and Budget Paper No. 3, Australia's Federal Relations 2010-11.

The Closing the Gap in the Northern Territory Evaluation Strategy provides ongoing assessment to capture whole of government effort, including services delivered by the Northern Territory Government, under the National Partnership Agreement on Closing the Gap in the Northern Territory. As part of the evaluation strategy, the Australian and Northern Territory governments have agreed to conduct an independent outcome evaluation in 2011-12.

Program 7.5 expenses

The rental and other payments associated with the five year leases over Aboriginal land under the Northern Territory Emergency Response are expected to be finalised by 30 June 2012.

Table 2.7.5: Budgeted expenses for Closing the Gap in the Northern Territory

 

  2009-10
Revised budget
$'000
2010-11
Budget
$'000
2011-12
Forward year 1
$'000
2012-13
Forward year 2
$'000
2013-14
Forward year 3
$'000
Annual Administered Expenses:
Northern Territory Emergency
Response B1 102,750 29,269 29,595 - -
Special Appropriations:
Northern Territory National Emergency Response Act 2007
Lease Payments to Traditional
Owners of Land   4,815 2,593 2,592 - -
Program Support   80,576 90,750 90,624 7,176 -
Total program expenses   188,141 122,612 122,811 7,176 -

B1 = Annual Appropriation Bill 1 (Ordinary Annual Services).

Note: Departmental appropriation splits and totals, by outcome and program, are indicative estimates and may change in the course of the Budget year as government priorities change.

Program 7.5 deliverables
Family Support Package
  • Percentage and number of priority communities with improved access to family support services through the provision of a Remote Aboriginal Family and Community Worker presence over 12 months
  • Number of cases in which the Mobile Child Protection team participates over 12 months
  • Percentage and number of Safe Place facilities operating in priority communities over 12 months
Youth in Communities
  • Number of youth workers employed in priority communities
  • Number of facilities made available for providing youth services and activities
Community Stores
  • Number of community stores licensed
Program 7.5 key performance indicators29,30,31
Closing the Gap in the Northern Territory

Family Support Package

  • Strategies are in place to ensure a coordinated approach to family support services for remote communities in the Northern Territory

Youth in Communities

  • Percentage and number of priority communities with improved access to youth services
  • Percentage and number of priority communities where improved facilities are made available for providing youth services and activities

Community Stores

  • Percentage and number of prescribed communities served by a licensed store
  1. The performance indicator 'Percentage of residents of prescribed communities who feel safer' was removed following agreement of Commonwealth and Northern Territory Government responsibilities under the Closing the Gap in the Northern Territory National Partnership, to be evaluated in 2011-12.
  2. The performance indicator 'Percentage and number of prescribed communities with improved infrastructure services (compared to before the intervention)' was removed following agreement of Commonwealth and Northern Territory Government responsibilities under the Closing the Gap in the Northern Territory National Partnership to be evaluated in 2011-12.
  3. The performance indicator 'Percentage and number of participants in leadership programs who report they have acquired increased knowledge, skills and capabilities from their participation' was removed because leadership programs under Closing the Gap in the Northern Territory are administered through Program 7.4.

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2010-11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

Administered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period with the agreement of the Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of administered funds approved between years.


Table 3.1.1: Movement of administered funds between years

 

2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2013-14
$'000
Outcome 1:
1.3 Parental Payments and Care Incentives Incentives Delay in communications campaign for the introduction of the Paid Parental Leave scheme. (0.600) 0 .600 - - -
Outcome 2:
2.1 Affordable Housing1 The projected expenses across the forward estimates have been updated in the 2010-11 Budget following an update of the implementation phasing and the revision of the original budget assumptions. (31.016) (54.251) (50.757) (17.251) (5.543)
Outcome 3:
Program 3.1 Financial Management Implementation timeframes for Community Development Financial Institution pilot project. (2.678) 2.678 - - -
Outcome 5:
Program 5.1 Targeted Community Care To provide additional capacity building for carers and training and support for workforce development. (1.950) 1.950 - - -
Program 5.4 Services and Support for People with Disability Extended timeframes for implementation of the Autism package and National Disability Parking Scheme, combined with lower than budgeted demand for several programs, including business services temporary viability support, postal concessions for the blind and interpreter services. (12.650) 12.650 - - -
Outcome 7:
Program 7.2 Indigenous Housing and Infrastructure Construction timeframe for Indigenous Boarding Hostels Partnerships facility in Weipa. (25.067) 20.067 5.000 - -
Total Movement of Administered Funds (73.961) (16.306) (45.757) (17.251) (5.543)
  1. Offsetting increases come into effect from 2019-20.

3.1.2 Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Department of Families, Housing, Community Services and Indigenous Affairs.


Table 3.1.2: Estimates of special account flows and balances

 

Outcome Opening balance
2010-11
Receipts
2010-11
Payments
2010-11
Adjustments
2010-11
Closing balance
2010-11
    2009-10
$'000
2009-10
$'000
2009-10
$'000
2009-10
$'000
2009-10
$'000
Outcome 1
Financial Management and Accountability Act 1997 (s. 20)
Social Security - Services for Other Government and Non-Government Bodies (A) 1.1 223 - - - 223
    223 - - - 223
Outcome 2
Financial Management and Accountability Act 1997 (s. 20)
Other Services - Services for Other Government and Non-Government Bodies (A) 2.1 - 10,629 (10,629) - -
    - 144 (144) - -
SAAP Data and Program Evaluation Fund Special Account (A) 2.2 - - - - -
    3,163 106 (3,269) - -
Outcome 3
Social Security (Administration) Act 1999
Income Management Special Account (A) 3.1 8,075 174,467 (168,190) - 14,352
    2,202 163,254 (157,381) - 8,075
Financial Management and Accountability Act 1997 (s. 20)
Other Services - Services for Other Government and Non-Government Bodies (A) 3.1 1,000 - - - 1,000
    - 1,000 - - 1,000
Outcome 5            
Financial Management and Accountability Act 1997 (s. 20)
National Disability Special Account (A) 5.4 5,388 1,000 (996) - 5,392
    2,719 4,000 (1,331) - 5,388
Other Services - Services for Other Government and Non-Government Bodies (A) 5.4 10 - (10) - -
    - 10 - - 10
Outcome 6            
Financial Management and Accountability Act 1997 (s. 20)
Other Services - Services for Other Government and Non-Government
Bodies (A)
6.1 17 - - - 17
    58 64 (105) - 17
Outcome 7            
Financial Management and Accountability Act 1997 (s. 20)
Other Trust Monies (A) 7.1 - - - - -
    - - - - -
Indigenous Employment Special Account 7.1 13,510 - (1,510) (12,000) -
    - 147,719 (134,209) - 13,510
Other Services - Services for Other Government and Non-Government
Bodies (A)
7.2 286 561 (263) - 584
    306 1,934 (1,954) - 286
Aboriginal and Torres Strait Islander Act 2005
Aboriginal and Torres Strait Islander Land Account (A) 7.3 1,794,752 88,564 (45,000) - 1,838,316
    1,713,550 81,202 - - 1,794,752
Aboriginal and Land Rights (Northern Territory) Act 1976            
Aboriginals Benefit Account - Special Account (A) 7.4 387,042 207,045 (148,407) - 445,680
    305,633 193,942 (112,533) - 387,042
Financial Management and Accountability Act 1997 (s. 20)
Indigenous Communities Strategic Investment Program Special Account (A) 7.4 - 2,500 (2,500) - -
    - 3,037 (3,037) - -
Financial Management and Accountability Act 1997 (s. 20)
Aboriginal and Torres Strait Islander Corporations Unclaimed Money Account (A) 7.4 223 - - - 223
    - 223 - - 223
Financial Management and Accountability Act 1997 (s. 20)
Northern Territory Flexible Funding Pool Special Account (A,D) 7.5 - - - - -
    76,079 - - (76,079) -
Total special accounts 2010-11 Budget estimate   2,210,526 484,766 (377,505) (12,000) 2,305,787
     
Total special accounts 2009-10 estimate actual   2,103,933 596,635 (413,963) (76,079) 2,210,526

(A) = administered

(D) = departmental

3.1.3 Australian Government Indigenous expenditure

Table 3.1.3: Australian Government Indigenous expenditure

 

Appropriations

  Other Total Program
  Bill No. 1
$'000
Special Approp
$'000
Total Approp
$'000
 
$'000

$'000
 
FaHCSIA
Outcome 1
Families and Children
Administered 2010-11 51,467 - 51,467   - 51,467 1.1
Administered 2009-10 49,174 - 49,174   - 49,174 1.1
Departmental 2010-11 2,998 - 2,998   - 2,998 1.1
Departmental 2009-10 2,915 - 2,915   - 2,915 1.1
Total Outcome 2010-11 54,465 - 54,465   - 54,465  
Total Outcome 2009-10 52,089 - 52,089   - 52,089  
Outcome 2
Housing
Administered 2010-11 2,626 - 2,626   - 2,626 2.2
Administered 2009-10 2,549 - 2,549   - 2,549 2.2
Departmental 2010-11 147 - 147   - 147 2.2
Departmental 2009-10 141 - 141   - 141 2.2
Total Outcome 2010-11 2,773 - 2,773   - 2,773  
Total Outcome 2009-10 2,690 - 2,690   - 2,690  
Outcome 3
Community Capability and the Vulnerable
Administered 2010-11 5,740 - 5,740   - 5,740 3.1
Administered 2009-10 11,554 - 11,554   - 11,554 3.1
Departmental 2010-11 - - -   - - 3.1
Departmental 2009-10 - - -   - - 3.1
Administered 2010-11 13,631 - 13,631   - 13,631 3.2
Administered 2009-10 13,350 - 13,350   - 13,350 3.2
Departmental 2010-11 1,271 - 1,271   - 1,271 3.2
Departmental 2009-10 1,261 - 1,261   - 1,261 3.2
Total Outcome 2010-11 20,642 - 20,642   - 20,642  
Total Outcome 2009-10 26,165 - 26,165   - 26,165  
Outcome 5
Disability and Carers
Administered 2010-11 578 - 578   - 578 5.4
Administered 2009-10 624 - 624   - 624 5.4
Departmental 2010-11 24 - 24   - 24 5.4
Departmental 2009-10 30 - 30   - 30 5.4
Total Outcome 2010-11 602 - 602   - 602  
Total Outcome 2009-10 654 - 654   - 654  
Outcome 7
Indigenous
Administered 2010-11 319,753 - 319,753   1,510 321,263 7.1
Administered 2009-10 366,164 - 366,164   134,209 500,373 7.1
Departmental 2010-11 39,242 - 39,242   6,538 45,780 7.1
Departmental 2009-10 61,245 - 61,245   3,916 65,161 7.1
Administered 2010-11 134,871 - 134,871   263 135,134 7.2
Administered 2009-10 121,150 - 121,150   1,954 123,104 7.2
Departmental 2010-11 30,153 - 30,153   3,850 34,003 7.2
Departmental 2009-10 28,502 - 28,502   1,823 30,325 7.2
Administered 2010-11 76,525 - 76,525   45,000 121,525 7.3
Administered 2009-10 69,289 - 69,289   - 69,289 7.3
Departmental 2010-11 6,102 - 6,102   865 6,967 7.3
Departmental 2009-10 7,136 - 7,136   456 7,592 7.3
Administered 2010-11 65,808 194,187 259,995   150,907 410,902 7.4
Administered 2009-10 56,328 178,819 235,147   115,570 350,717 7.4
Departmental 2010-11 88,526 - 88,526   12,139 100,665 7.4
Departmental 2009-10 96,911 - 96,911   6,197 103,108 7.4
Administered 2010-11 29,269 2,593 31,862   - 31,862 7.5
Administered 2009-10 102,750 4,815 107,565   - 107,565 7.5
Departmental 2010-11 80,496 - 80,496   10,254 90,750 7.5
Departmental 2009-10 75,733 - 75,733   4,843 80,576 7.5
Total Outcome 2010-11 870,745 196,780 1,067,525   231,326 1,298,851  
Total Outcome 2009-10 985,208 183,634 1,168,842   268,968 1,437,810  
 
Total Administered 2010-11 700,268 196,780 897,048   197,680 1,094,728  
Total Administered 2009-10 792,932 183,634 976,566   251,733 1,228,299  
Total Departmental 2010-11 248,959 - 248,959   33,646 282,605  
Total Departmental 2009-10 273,874 - 273,874   17,235 291,109  
Total AGIE 2010-11 949,227 196,780 1,146,007   231,326 1,377,333  
Total AGIE 2009-10 1,066,806 183,634 1,250,440   268,968 1,519,408

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3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

Table 3.2.1 recognises the full-year revenue for 2010-11 on the basis of accrual accounting principles.

3.2.2 Analysis of budgeted financial statements

Departmental
Income and expenses

FaHCSIA is budgeting for an operating deficit of $35.7 million for 2010-11. This is the result of the revised net cash funding arrangements introduced under Operation Sunlight, whereby asset replacement is now funded through a capital appropriation rather than the departmental operating appropriation. After allowing for depreciation expenses, the reconciliation table at the bottom of Table 3.2.1 shows that the operating result attributable to FaHCSIA is a balanced operating position.

Total operating revenue for 2010-11 is estimated at $552.4 million, comprising government appropriations of $525.1 million and own source revenue of $27.3 million. The decrease in revenue of $48.4 million is primarily due to the revised net cash funding arrangements introduced from 2010-11 and changes to the appropriation funding arrangements for the Community Development Employment Projects Program.

Total expenses for 2010-11 are estimated to be $588.0 million. The reduction in expenses of $12.8 million is primarily due to the revised funding arrangements for the Community Development Employment Projects Program. From 2010-11, other government agencies previously funded from the Indigenous Employment Special Account will be directly appropriated through the Budget. The increases in employee benefits reflect agreed pay rises under FaHCSIA's collective agreement, offset by estimated reductions in average staffing levels.

Balance sheet

The Department's net asset position is expected to increase by $1.6 million due to the impact of the operating loss of $35.7 million offset by the increase in contributed equity from the capital appropriations of $37.3 million.

Administered
Income and expenses

FaHCSIA will administer the collection of non-taxation revenue estimated at $373.0 million in 2010-11, a decrease of $6.2 million from the 2009-10 estimated revenue. The decrease is due to reduced returns from investments and receipts to special accounts.

FaHCSIA will administer programs totalling $72,011.2 million in expenses in 2010-11. The increase of $4,480.2 million principally reflects customer trends and indexation of income support payments.

Balance sheet

Total assets administered on behalf of the Government are expected to increase by $196.8 million to $5,204.9 million. This is primarily due to an increase of $34.0 million in receivables and $142.1 million in investments.

Total liabilities administered on behalf of the Government are expected to increase by $75.3 million to $7,546.7 million.

3.2.3 Budgeted financial statements tables


Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
EXPENSES
Employee benefits 324,748 330,718 330,412 303,970 306,152
Supplier 213,996 211,624 212,312 199,001 203,064
Depreciation and amortisation 31,203 35,651 35,220 26,431 25,984
Other 30,825 10,028 10,135 10,253 10,363
Total expenses 600,772 588,021 588,079 539,655 545,563
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services 25,332 24,933 24,732 24,732 24,732
Other revenue 1,017 1,017 1,017 1,017 1,017
Total revenue 26,349 25,950 25,749 25,749 25,749
Gains
Other gains 1,290 1,290 1,290 1,290 1,290
Total gains 1,290 1,290 1,290 1,290 1,290
Total own-source income 27,639 27,240 27,039 27,039 27,039
 
Net cost of (contribution by) services 573,133 560,781 561,040 512,616 518,524
Revenue from Government 573,133 525,130 525,820 486,185 492,540
   
Surplus (Deficit) - (35,651) (35,220) (26,431) (25,984)
   
Total comprehensive income attributable to the Australian Government - (35,651) (35,220) (26,431) (25,984)
Note: Reconciliation of operating result attributable to the agency
  2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2012-13
$'000
Operating result attributable to the
Australian Government - (35,651) (35,220) (26,431) (25,984)
plus non-appropriated expenses depreciation and amortisation expenses   35,651 35,220 26,431 25,984
Operating result attributable to the Agency - - - - -

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS
Financial assets
Cash and equivalents 5,360 5,360 5,360 5,360 5,360
Trade and other receivables 115,291 116,794 116,717 110,059 110,608
Total financial assets 120,651 122,154 122,077 115,419 115,968
Non-financial assets
Land and buildings 180,764 185,328 184,924 201,291 200,658
Infrastructure, plant and equipment 40,966 36,251 30,750 31,019 24,629
Intangibles 52,744 54,490 54,663 59,989 56,552
Other 2,895 2,895 2,895 2,895 2,895
Total non-financial assets 277,369 278,964 273,232 295,194 284,734
Total assets 398,020 401,118 395,309 410,613 400,702
LIABILITIES
Payables
Suppliers 45,145 45,145 45,145 45,145 45,145
Other 6,366 6,366 6,366 6,366 6,366
Total payables 51,511 51,511 51,511 51,511 51,511
Provisions
Employees 81,775 83,278 83,201 76,543 77,092
Other 3,237 3,237 3,237 3,237 3,237
Total provisions 85,012 86,515 86,438 79,780 80,329
Total liabilities 136,523 138,026 137,949 131,291 131,840
Net assets 261,497 263,092 257,360 279,322 268,862
EQUITY*
Parent entity interest
Contributed equity 105,348 142,594 172,082 220,475 235,999
Reserves 48,158 48,158 48,158 48,158 48,158
Retained surpluses or accumulated deficits 107,991 72,340 37,120 10,689 (15,295)
Total parent entity interest 261,497 263,092 257,360 279,322 268,862
Total equity 261,497 263,092 257,360 279,322 268,862

* Equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.


Table 3.2.3: Departmental statement of changes in equity-summary of movement (Budget year 2010-11)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2010
Balance carried forward from previous period 107,991 48,158 - 105,348 261,497
Adjusted opening balance 107,991 48,158 - 105,348 261,497
Surplus (deficit) for the period (35,651) - - - (35,651)
recognised directly in equity (35,651) - - - (35,651)
Transactions with owners
Contribution by owners
Appropriation (equity injection) - - - 37,246 37,246
Sub-total transactions with owners - - - 37,246 37,246
Transfers between equity components - - - - -
   
Estimated closing balance as at 30 June 2011 72,340 48,158 - 142,594 263,092

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Goods and services 25,332 24,933 24,732 24,732 24,732
Appropriations 610,031 523,627 525,897 492,843 491,991
Other 1,017 1,017 1,017 1,017 1,017
Total cash received 636,380 549,577 551,646 518,592 517,740
Cash used
Employees 321,116 329,215 330,489 310,628 305,603
Suppliers 210,137 210,334 211,022 197,711 201,774
Other 79,278 10,028 10,135 10,253 10,363
Total cash used 610,531 549,577 551,646 518,592 517,740
Net cash from or (used by) operating activities 25,849 - - - -
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment 70,372 37,246 29,488 48,393 15,524
Total cash used 70,372 37,246 29,488 48,393 15,524
Net cash from or (used by) investing activities (70,372) (37,246) (29,488) (48,393) (15,524)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity 44,056 37,246 29,488 48,393 15,524
Total cash received 44,056 37,246 29,488 48,393 15,524
Net cash from or (used by) financing activities 44,056 37,246 29,488 48,393 15,524
Net increase or (decrease) in cash held (467) - - - -
Cash at the beginning of the reporting period 5,827 5,360 5,360 5,360 5,360
Cash at the end of the reporting period 5,360 5,360 5,360 5,360 5,360

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
CAPITAL APPROPRIATIONS
Capital Budget - Bill 1 (DCB) - 22,829 27,161 48,336 15,467
Equity Injections - Bill 2 44,056 14,417 2,327 57 57
Total capital appropriations 44,056 37,246 29,488 48,393 15,524
Total new capital appropriations
Represented by:
Purchase of non-financial assets 70,372 37,246 29,488 48,393 15,524
Total Items 70,372 37,246 29,488 48,393 15,524
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriations 44,056 14,417 2,327 57 57
Funded by capital appropriations - DCB - 22,829 27,161 48,336 15,467
Funded internally from Departmental resources 26,316 - - - -
TOTAL 70,372 37,246 29,488 48,393 15,524
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases 70,372 37,246 29,488 48,393 15,524
Total cash used to acquire assets 70,372 37,246 29,488 48,393 15,524

Prepared on Australian Accounting Standards basis.


Table 3.2.6: Statement of asset movements (2010-11)

 

Land

$'000
Buildings

$'000
Other Infrastructure,
Plant & Equipment
$'000
Intangibles

$'000
Total

$'000
as at 1 July 2010          
Gross book value 15,946 199,721 71,385 100,760 387,812
Accumulated depreciation/amortisation - (34,903) (30,419) (48,016) (113,338)
Opening net book balance 15,946 164,818 40,966 52,744 274,474
CAPITAL ASSET ADDITIONS          
Estimated expenditure on          
new or replacement assets          
By purchase - appropriation equity - 20,059 7,626 9,561 37,246
   
Acquisition of entities or operations (including restructuring) sub-total - 20,059 7,626 9,561 37,246
Other Movements          
Depreciation/amortisation expense - (15,495) (12,341) (7,815) (35,651)
as at 30 June 2011          
Gross book value 15,946 219,780 79,011 110,321 425,058
Accumulated depreciation/amortisation - (50,398) (42,760) (55,831) (148,989)
Closing net book balance 15,946 169,382 36,251 54,490 276,069

Prepared on Australian Accounting Standards basis.


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
INCOME ADMINISTERED ON
BEHALF OF GOVERNMENT
Revenue
Non-taxation
Interest 96,525 101,622 103,751 105,931 108,165
Other sources of non-taxation revenues 282,672 271,356 362,990 465,634 484,490
Total non-taxation 379,197 372,978 466,741 571,565 592,655
   
Total revenues administered on behalf of Government 379,197 372,978 466,741 571,565 592,655
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT
Grants 1,766,203 1,864,098 1,820,922 1,766,670 1,614,066
Subsidies 8,148 8,445 8,678 8,445 8,655
Personal benefits 65,332,844 69,874,937 73,525,589 77,767,597 81,460,416
Suppliers 131,128 67,345 90,650 280,934 311,662
Other 292,687 196,380 216,443 220,296 224,909
Total expenses administered on behalf of Government 67,531,010 72,011,205 75,662,282 80,043,942 83,619,708

Prepared on Australian Accounting Standards basis.


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT
Financial assets
Cash and cash equivalents 23,610 44,255 49,639 46,653 44,057
Receivables 1,135,502 1,169,553 1,177,377 1,191,010 1,220,411
Investments 3,833,496 3,975,629 4,176,135 4,487,619 4,817,704
Total financial assets 4,992,608 5,189,437 5,403,151 5,725,282 6,082,172
Non-financial assets
Other 15,493 15,493 15,493 15,493 15,493
Total non-financial assets 15,493 15,493 15,493 15,493 15,493
Total assets administered on behalf of Government 5,008,101 5,204,930 5,418,644 5,740,775 6,097,665
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
Provisions
Personal benefits provision 5,664,978 5,793,034 5,909,024 6,032,790 6,164,936
Total provisions 5,664,978 5,793,034 5,909,024 6,032,790 6,164,936
Payables
Suppliers 16,156 16,156 16,156 16,156 16,156
Subsidies 2,976 2,977 2,978 2,979 2,980
Personal benefits payable 1,765,639 1,712,851 1,903,204 2,203,567 2,342,252
Grants 14,611 14,609 14,613 14,617 14,621
Other payables 7,045 7,045 7,045 7,045 7,045
Total payables 1,806,427 1,753,638 1,943,996 2,244,364 2,383,054
Total liabilities administered on behalf of Government 7,471,405 7,546,672 7,853,020 8,277,154 8,547,990

Prepared on Australian Accounting Standards basis.


Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Interest 96,525 101,622 103,751 105,931 108,165
Other 345,869 300,502 418,363 515,198 518,286
Total cash received 442,394 402,124 522,114 621,129 626,451
Cash used
Grant payments 1,825,166 1,925,221 1,881,308 1,827,056 1,673,025
Subsidies paid 8,147 8,444 8,677 8,444 8,654
Personal benefits 65,332,844 69,757,189 73,208,772 77,354,777 81,190,076
Suppliers 135,362 69,421 93,457 283,741 315,896
Other 292,687 196,380 216,443 220,296 224,909
Total cash used 67,594,206 71,956,655 75,408,657 79,694,314 83,412,560
   
Net cash from or (used by) operating activities (67,151,812) (71,554,531) (74,886,543) (79,073,185) (82,786,109)
INVESTING ACTIVITIES
Cash received
Investments 1,295,248 1,348,812 1,383,515 1,429,294 1,476,224
Total cash received 1,295,248 1,348,812 1,383,515 1,429,294 1,476,224
Cash used
Investments 1,490,870 1,490,945 1,584,021 1,740,778 1,806,309
Total cash used 1,490,870 1,490,945 1,584,021 1,740,778 1,806,309
Net cash from or (used by) investing activities (195,622) (142,133) (200,506) (311,484) (330,085)
   
Net increase or (decrease) in cash held (67,347,434) (71,696,664) (75,087,049) (79,384,669) (83,116,194)
Cash at beginning of reporting period 23,857 23,610 44,255 49,639 46,653
Cash from Official Public Account for:          
- appropriations 67,399,434 71,660,440 75,030,124 79,333,434 83,068,513
Cash to Official Public Account for:          
- special accounts 52,247 56,869 62,309 48,249 45,085
Cash at end of reporting period 23,610 44,255 49,639 46,653 44,057

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

Accounting policies

Budgeted statements of income and expenditure, assets and liabilities, and cash flows have been included for the financial years 2009-10 to 2013-14. These statements are prepared in accordance with the requirements of the Government's financial budget and reporting framework.

Amounts in these statements are rounded to the nearest thousand dollars.

Reporting entities

FaHCSIA's budgeted financial statements include:

  • the Department (FaHCSIA core)
  • the Social Security Appeals Tribunal
  • the Aboriginals Benefit Account
  • the Aboriginal and Torres Strait Islander Land Account.
Departmental and administered Items

Departmental revenues, expenses, assets and liabilities are those that are controlled by FaHCSIA. Departmental expenses include employee and supplier expenses and other administrative costs incurred by FaHCSIA in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by FaHCSIA on behalf of the Australian Government, according to set government directions. Administered expenses include subsidies, grants and personal benefit payments.

The distinction between departmental and administered funding enables an assessment of the administrative efficiency of the Department in managing government programs.

Asset valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Commentary on the financial statements
Intangibles (departmental)

Intangibles represent the amount of computer software currently recorded by FaHCSIA. Intangible assets are recorded at cost.

Employee provisions (departmental)

Employee provisions consist of accrued leave entitlements, accrued salary and wages and superannuation payments that are owed to employees at the end of the financial year.

Receivables (administered)

Administered receivables represent amounts owing to the Australian Government for overpayments to benefit recipients. The figure presented in the financial statements is net of provisions recognised for bad and doubtful debts.

Investments (administered)

Administered investments primarily represent the investments in the Aboriginal and Torres Strait Islander Land Account.

Non-financial assets-other (administered)

Other non-financial assets items relate to estimated administered prepayments at the end of the financial year.

Personal benefits payable (administered)

Personal benefits payable relates to special appropriation amounts recognised as payables due to the timing of paydays to benefit recipients at the end of the financial year.

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Equal Opportunity for Women in the Workplace Agency

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements

Section 1: Agency overview and resources

1.1 Strategic direction statement

The EOWA is chartered through the Equal Opportunity for Women in the Workplace Act 1999 (the Act) with both regulatory and educative functions and responsibilities.

It is EOWA's objective that every working woman in Australia should have the same opportunities as her male counterparts.

The Act requires relevant employers to ensure equal treatment for women, with a particular focus on the following areas:

  • recruitment and selection
  • promotion, transfer and termination
  • training and development
  • work organisation
  • conditions of service
  • arrangements for dealing with sex-based harassment
  • arrangements for dealing with pregnancy, potential pregnancy and breastfeeding.

The Act applies to private companies, higher education institutions, non-government schools, not-for-profit organisations, community organisations, trade unions and group training schemes that have 100 or more employees.

The Act requires relevant employers to lodge a yearly report with the agency on their Equal Opportunity for Women in the Workplace program. It also requires EOWA to provide customised feedback and assistance to employers. The agency assists these organisations by providing:

  • education programs and information to assist employers to improve equal opportunity for women in the workplace through linking equal opportunity outcomes for women with their human resource management and business priorities
  • online information and educative tools to assist employers to develop workplace programs and to comply with all aspects of the Act
  • recognition of leading-practice employers to inspire action.

Throughout 2010-11, EOWA will work closely with more than 7,000 relevant employers covered by the Act to improve awareness and understanding about the issues affecting women's workforce participation. EOWA will focus on report assessment, training, research and the communications strategy, which will deliver increased awareness of equal opportunity initiatives including paid maternity leave, reducing the gender pay gap, reducing harassment, advancing merit-based opportunity and improving the quality of flexible working arrangements.

Partnerships with business will enable the agency to conduct leading-edge research and profile best practice, to provide guidance and practical solutions to equity issues to business, government and the community.

EOWA and the Equal Opportunity for Women in the Workplace Act 1999 are under review, but no outcome has been announced. While the review is underway, it is business as usual, and reporting organisations are required to submit their compliance report for the 2009-10 period.

No new measures or functions have been added since the previous Budget process.

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1.2 Agency Resource Statement

The agency resource statement details the resourcing for the agency at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2010-11 Budget year, including variations through Appropriation Bill (No. 3) 2010-11, special appropriations and special accounts.

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.


Table 1.1: Equal Opportunity for Women in the Workplace Agency resource statement-Budget estimates for 2010-11 as at Budget, May 2010

 

  Estimate of prior year amounts available in
2010-11
$'000
+ Proposed at Budget
2010-11
$'000
= Total estimate
2010-11
$'000
  Actual available appropriation
2009-10
$'000
Ordinary Annual Services1                
Departmental appropriation                
Prior year departmental appropriation2   -   -   -   -
Departmental appropriation3   -   3,002   3,002   2,992
s. 31 Relevant agency receipts4   -   466   466   366
Total   -   3,468   3,468   3,358
Total ordinary annual services A -   3,468   3,468   3,358
Total resourcing                
A+B+C+D   -   3,468   3,468   3,358
Less appropriations drawn from                
annual or special appropriations above                
and credited to special accounts                
and/or CAC Act bodies through                
annual appropriations   -   -   -    
Total net resourcing for the agency   -   3,468   3,468   3,358
  1. Appropriation Bill (No. 1) 2010-11.
  2. Estimated adjusted balance carried from previous year for annual appropriations.
  3. s. 31 Relevant agency receipts-estimate.
  4. Includes an amount of $0.252m in 2010-11 for the departmental capital budget (refer to Table 3.2.5 for further details). For accounting purposes, this amount has been designated as 'contributions by owners'.

    Note: All figures are GST exclusive.

Third-party payments from and on behalf of other agencies

EOWA does not make or receive third-party payments on behalf of other agencies.

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1.3 Budget Measures

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Section 2: Outcome and planned performance

2.1 Outcome and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the Equal Opportunity for Women in the Workplace Agency in achieving government outcomes.

Outcome 1

Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit based opportunity

Outcome 1 strategy

EOWA's vision is to achieve equal opportunity for women in Australian workplaces. The agency's mission is to lead Australian employers to create workplaces where women's contribution is equally valued, recognised and rewarded by:

  • providing education and leading-edge solutions
  • building sustainable partnerships
  • engaging community debate to increase the rate of change.

Throughout 2010-11, EOWA will work closely with relevant employers to improve awareness, understanding and action on issues affecting women's workforce participation, particularly after an economic downturn. EOWA will focus on report assessment, training, research and communicating the business benefits of equal opportunity initiatives, including paid maternity leave, reducing the gender pay gap, innovation in retention strategies, creating a harassment-free culture, advancing merit-based opportunities at work, and improving the quality of part-time work at all levels and access to other flexible working practices.

The agency assists organisations by making accessible leading-edge research, information and solutions, which assist employers to take action and to promote understanding, acceptance and public discussion of equal opportunity for women in the workplace.

Outcome expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.


Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome 1: Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit based opportunity

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 1.1:    
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) 2,992 3,002
Revenues from independent sources (s. 31) 366 466
Special appropriations - -
Special Accounts - -
Expenses not requiring appropriation in the Budget year - -
Total for Program 1.1 3,358 3,468
Outcome 1 Totals by appropriation type    
Administered Expenses    
Ordinary annual services (Appropriation Bill No. 1) - -
Other services (Appropriation Bill No. 2) - -
Special Appropriations - -
Special Accounts - -
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) 2,992 3,002
Revenues from independent sources (s. 31) 366 466
Special appropriations - -
Special Accounts - -
Expenses not requiring appropriation in the Budget year - -
Total expenses for Outcome 1 3,358 3,468
  2009-10 2010-11
Average Staffing Level (number) 20 20

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Contributions to Outcome 1

Program 1.1 Equality of Opportunity in Employment for Women

Program 1.1 objective

Increased influence over Australian employers to achieve equality for women in the workplace through regulation and education on eliminating discrimination and promoting merit-based opportunity.

Program 1.1 expenses

There are no significant trends, changes or variances in the program expenses over the forward years.


Table 2.1.1: Budgeted expenses for Equality of Opportunity in Employment for Women

('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Annual Departmental Expenses:          
Other Departmental - EOWA 3,406 3,576 3,443 3,404 3,427
Departmental Item          
Program Support - - - - -
Expenses not requiring Appropriation in the Budget year - - - - -
Total program expenses 3,406 3,576 3,443 3,404 3,427

Program 1.1 deliverables

 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Overall budget 3,406 3,576 3,443 3,404 3,427
Increase in women in management

EOWA Census - An analysis of the progress of women in corporate leadership in ASX200 organisations

Publicise EoCFW average percentage of women in management

Discuss with reporting clients on strategies to implement to increase representation of women in management
to 33.9% to 34.3% to 35%    
Increase in paid maternity leave

Discussion with reporting clients on business benefits of increasing paid maternity leave

EoCFW prerequisite
to 53.4% to 54.5% to 55% 55% 55%
Reduction in pay equity gap amongst

Requirement of EoCFW applicants to advise of strategies in place to reduce the pay gap over time

Equal pay day to raise community awareness

Updated pay equity information on the website

Partner with Fair Pay WA to aggregate resources
         

Program 1.1 key performance indicators

 

Key Performance Indicators

2009-10
Revised budget
2010-11
Budget Target
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Workshop attendees agree or strongly agree that workshops are informative and valuable 95% 95% 95% 95% 95%
Increase in women in management 33.97% 34.30% 35% 35% 35%
Increase in paid maternity leave

Reduction in pay equity gap amongst Employer of Choice for Women (EoCFW) organisations
52.80% 53.95% 55% 55% 55%

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements, which provide a comprehensive snapshot of agency finances for the 2010-11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

EOWA does not have any administered expenses.

3.1.2 Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's Determination under the FMA Actor under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Equal Opportunity for Women in the Workplace Agency.


Table 3.1.2: Estimates of special account flows and balances

 

Outcome Opening balance
2010-11
2009-10
$'000
Receipts
2010-11
2009-10
$'000
Payments
2010-11
2009-10
$'000
Adjustments
2010-11
2009-10
$'000
Closing balance
2010-11
2009-10
$'000
Other Trust Moneys Account (D) - EOWA s. 20 FMA Act Det 1997/01 1 - - - - -
Services for Other Government and Non-Agency Bodies (D) - EOWA s. 20 FMA Det 1997/01 1 - - - - -
Special Public Monies (D) 1 - - - - -
Unallocated - Special Account (D) 1 - - - - -
Total Special Accounts
2010-11 Budget estimate
           
Total Special Accounts
2009-10 estimate actual
           

(A) = administered

(D) = departmental

3.1.3 Australian Government Indigenous expenditure

EOWA has no 2010-11 Australian Government Indigenous expenditure to report.

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3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

EOWA has no differences in agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

EOWA's income statement shows a balanced budget for 2009-10. The deficit in the forward years is a result of the net cash arrangement whereby depreciation and amortisation costs are no longer funded through government appropriation.

Employee expenses continue to increase at 4 per cent, with a marginal increase in appropriations. The cost of administering the Act, which is labour intensive, takes up much of the budget.

All information technology equipment is outsourced under a memorandum of understanding with FaHCSIA. Depreciation and amortisation expense consists principally of the reporting system and the office fit-out.

3.2.3 Budgeted financial statements tables


Table 3.2.1 comprehensive income statement (showing net cost of services)
(for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
EXPENSES          
Employee benefits 1,938 1,980 2,098 2,154 2,235
Supplier expenses 1,207 1,336 1,096 1,182 1,181
Grants          
Depreciation and amortisation 261 260 249 68 11
Other          
Total expenses 3,406 3,576 3,443 3,404 3,427
LESS:          
OWN-SOURCE INCOME          
Revenue          
Sale of goods and rendering of services 366 466 366 366 366
Other revenue - - - - -
Total revenue 366 466 366 366 366
Gains          
Sale of assets - - - - -
Other gains 48 100 44 44 44
Total gains 48 100 44 44 44
Total own-source income 414 566 410 410 410
Net cost of (contribution by) services 2,992 3,010 3,033 2,994 3,017
Revenue from Government 2,992 2,750 2,784 2,926 3,006
Surplus (Deficit) - (260) (249) (68) (11)
Surplus (Deficit) attributable to          
the Australian Government - (260) (249) (68) (11)
OTHER COMPREHENSIVE INCOME          
Changes in asset revaluation reserves - - - - -
Total other comprehensive income          
Total comprehensive income - (260) (249) (68) (11)
Total comprehensive income attributable to the Australian Government - (260) (249) (68) (11)
Note: Reconciliation of operating result attributable to the agency
  2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2012-13
$'000
Operating result attributable to the Australian Government - (260) (249) (68) (11)
plus non-appropriated items depreciation, amortisation and make good expenses 261 260 249 68 11
Operating result attributable to the agency 261 - - - -

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS          
Financial assets          
Cash and equivalents 174 134 439 460 471
Trade and other receivables 1,659 1,652 1,300 1,232 1,221
Other 20 20 20 20 20
Total financial assets 1,853 1,806 1,759 1,712 1,712
Non-financial assets          
Land and buildings 273 273 273 308 398
Infrastructure, plant and equipment 6 6 4 2 2
Intangibles 306 298 303 501 652
Other 2 2 2 2 2
Total non-financial assets 587 579 582 813 1,054
Assets held for sale - - - - -
Total assets 2,440 2,385 2,341 2,525 2,766
LIABILITIES          
Payables          
Suppliers 82 82 82 82 82
Other 133 86 39 39 39
Total payables 215 168 121 121 121
Provisions          
Employees 232 232 232 232 232
Other 157 157 157 157 157
Total provisions 389 389 389 389 389
Liabilities included in disposal groups held for sale - - - - -
Total liabilities 604 557 510 510 510
Net assets 1,836 1,828 1,831 2,015 2,256
EQUITY*          
Parent entity interest          
Contributed equity 804 1,056 1,308 1,560 1,812
Reserves 40 40 40 40 40
Retained surpluses or accumulated deficits 992 732 483 415 404
Total parent entity interest 1,836 1,828 1,831 2,015 2,256
Total equity 1,836 1,828 1,831 2,015 2,256
Current assets 1,855 1,808 1,761 1,714 1,714
Non-current assets 585 577 580 811 1,052
Current liabilities 504 457 410 410 410
Non-current liabilities 100 100 100 100 100

* 'Equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.


Table 3.2.3: Departmental statement of changes in equity-summary of movement (Budget year 2010-11)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2010          
Balance carried forward from previous period Adjustment for changes inaccounting policies 992 40 - 804 1,836
Adjusted opening balance 992 40 - 804 1,836
Comprehensive income          
Comprehensive income recognised directly in equity:
Gain/loss on revaluation of property
- - - - -
Sub-total comprehensive income - - - - -
Surplus (deficit) for the period (260) - - - (260)
Total comprehensive income
recognised directly in equity
(260) - - - (260)
Transactions with owners          
Contribution by owners Appropriation (equity injection)
Appropriation (departmental capital budget)
- - - 252 252
Other          
Sub-total transactions with owners - - - 252 252
Estimated closing balance
as at 30 June 2011
732 40 - 1,056 1,828

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 361 466 366 366 366
Appropriations 2,648 2,757 3,136 2,994 3,017
Other 30 100 44 44 -
Total cash received 3,039 3,323 3,546 3,404 3,383
Cash used          
Employees 1,449 1,980 2,098 2,154 2,235
Suppliers 897 1,336 1,096 1,229 1,137
Other (63) 47 47 - -
Total cash used 2,283 3,363 3,241 3,383 3,372
Net cash from or (used by)          
operating activities 756 (40) 305 21 11
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment - 252 252 252 252
Total cash used - (252) (252) (252) (252)
Net cash from or (used by)
investing activities
         
FINANCING ACTIVITIES
Cash received
         
Appropriations - contributed equity (595) 252 252 252 252
Total cash received (595) 252 252 252 252
Net cash from or (used by) financing activities (595) 252 252 252 252
Net increase or (decrease) in cash held          
Cash at the beginning of the reporting period 13 174 134 439 460
Effect of exchange rate movements on cash at the beginning of reporting period - - - - -
Cash at the end of the reporting period 174 134 439 460 471

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
CAPITAL APPROPRIATIONS          
Departmental Capital - Special Appropriation (Dept only) - - - - -
Capital Budget - Bill 1 (DCB) - 252 252 252 252
Total capital appropriations - 252 252 252 252
Total new capital appropriations          
Represented by:          
Purchase of non-financial assets - 252 252 252 252
Annual finance lease costs          
Other Items          
Total Items - 252 252 252 252
PURCHASE OF NON-FINANCIAL
ASSETS
         
Funded by capital appropriations - 252 252 252 252
Funded by current year DCB1 - - - - -
Funded internally from departmental resources2 - - 795 500 -
TOTAL - 252 1,047 752 252
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases - 252 252 252 252
less Additions by finance lease - - - - -
plus Annual finance lease costs - - - - -
less Gifted assets - - - - -
Total cash used to acquire assets - 252 252 252 252
  1. Does not include annual finance lease costs.
  2. Includes the following sources of funding: annual and prior year appropriations; donations and contributions; gifts; internally developed assets; s. 31 relevant agency receipts; proceeds from the sale of assets.

    Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2010-11)

 

Land

$'000
Buildings

$'000
Other Infrastructure,
Plant & Equipment
$'000
Intangibles

$'000
Total

$'000
As at 1 July 2010        
Gross book value - 509 38 996 1,543
Accumulated depreciation/amortisation - (236) (32) (690) (958)
Opening net book balance - 273 6 306 585
CAPITAL ASSET ADDITIONS          
Extimated expenditure on new or replacement assets          
By purchase - appropriation equity - - - - -
By purchase - appropriation ordinary annual services - 100 1 151 252
By purchase - other - - - - -
Acquisition of entities or operations (including restructuring) sub-total - 100 1 151 252
Other movements          
Assets held for sale or in a disposal group held for sale          
Depreciation/amortisation expense - 100 1 159 260
Other   - - - -
As at 30 June 2011          
Gross book value - 609 39 1,147 1,795
Accumulated depreciation/amortisation - (336) (33) (849) (1,218)
Closing net book balance - 273 6 298 577

Note: The numbers in this table are subject to review under the Government's net cash framework as part of the Operation Sunlight review.

Prepared on Australian Accounting Standards basis.

3.2.4    Notes to the financial statements

Basis of accounting
Accounting policy

The agency budget statements have been prepared on an accrual accounting basis, having regard to the Statement of Accounting Concepts, and in accordance with:

  • the Finance Minister's Orders
  • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB).
Departmental items

Departmental assets, liabilities, revenues and expenses are those items that are controlled by EOWA that are used by EOWA in producing its outputs, and include:

  • intangible assets, plant and equipment used in providing goods and services
  • liabilities for employee entitlements
  • revenue and appropriations or independent sources in payments for outputs
  • employee, supplier and depreciation expenses incurred in providing agency outputs.

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Aboriginal Hostels Limited

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements

Section 1: Agency overview and resources

Aboriginal Hostels Limited's (AHL) outcome is improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating, through the operation of temporary hostel accommodation services.

1.1 Strategic direction statement

The purpose of AHL is to improve Indigenous quality of life through the delivery of hostel accommodation to enable access to education, employment, health and other services.

AHL owns and manages a range of hostels across Australia that provide accommodation to a wide range of people in Indigenous communities, including those who are homeless or transient (including for employment, study or medical reasons) and others in need of affordable accommodation. AHL strives to improve Indigenous Australians' access to services and provide support to them to acquire the life skills necessary to make informed choices about their future and to meet the demands of employment and urban social environments.

AHL is currently implementing the 32 recommendations from the Ernst & Young review completed in February 2008. Ernst & Young has been engaged by the Department of Families, Housing, Community Services and Indigenous Affairs to assist AHL in the implementation of the recommendations. One of the recommendations is to realign AHL's strategic objectives with the Government's 'Closing the Gap' building blocks.

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1.2 Agency resource statement

The agency resource statement details the resourcing for AHL. Table 1.1 outlines the total resourcing available from all sources for the 2010-11 Budget year, including funding through Appropriation Bill (No. 1) 2010-11, special appropriations and special accounts.

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.


Table 1.1: Aboriginal Hostels Limited resource statement-Budget estimates for 2010-11 as at Budget May 2010

Source

Proposed at Budget
2010-11
$'000
= Total Estimate
2010-11
$'000
Actual Available Appropriation
2009-10
$'000
Opening Balance/Reserves at Bank1 24,833   24,833 26,467
      -  
REVENUE FROM GOVERNMENT     -  
Ordinary Annual Services2     -  
Outcome 1: Hostels 42,655   42,655 36,840
Other services3        
Non-Operating -Equity Injections 6,920   6,920 3,790
Total Annual Appropriations 49,575   49,575 40,630
Payments from related entities4        
Grants and Subsidies        
Department of Health and Ageing 1,800   1,800 2,413
Indigenous Youth Mobility Program6 -   - 476
Total5 1,800   1,800 2,889
Total Funds from Government 51,375   51,375 43,519
FUNDS FROM OTHER SOURCES        
Accommodation Charges 9,000   9,000 8,869
Interest 500   500 500
Other 182   182 182
Total5 9,682   9,682 9,551
Total net resourcing for Agency 85,890   85,890 79,537

CRF = Consolidated Revenue Fund.

  1. Cash funds built up to meet pending commitments for new hostels, such as Noongar Elders Home in Kenwick, Western Australia, and Port Hedland Renal Dialysis Hostel, and to fund replacement of existing assets and supporting systems nearing the end of their useful life.
  2. Appropriation Bill (No. 1) 2010-11.
  3. Appropriation Bill (No. 2) 2010-11.
  4. Funding provided by another government body.
  5. This represents total revenue for other services, as shown in Table 2.1, of $11.482 million ($1.800 million + $9.682 million).
  6. Core funding of $1.7 million to be received from DEEWR for Indigenous Youth Mobility Program (IYMP) in 2010-11.

Note: Aboriginal Hostels Limited is not directly appropriated as it is a Commonwealth Authorities and Companies Act 1997 body. Appropriations are made to the Department of Families, Housing, Community Services and Indigenous Affairs and are then paid to Aboriginal Hostels Limited, and are considered 'departmental' for all purposes.

All figures are GST exclusive.

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1.3 Budget measures

Budget measures relating to Aboriginal Hostels Limited are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2 Agency 2010-11 Budget Measures

 

Program

2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2013-14
$'000
Capital measures            
Aboriginal Hostels Limited - upgrades and repairs 1.1, 1.2          
Administered capital   - - - - -
Departmental capital   - 6,920 - - -
Total   - 6,920 - - -
Total capital measures            
Administered   - - - - -
Departmental   - 6,920 - - -
Total   - 6,920 - - -

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Section 2: Outcome and planned performance

2.1 Outcome and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of Aboriginal Hostels Limited in achieving government outcomes.

Outcome 1: Aboriginal Hostels Limited

Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of temporary hostel accommodation services.

Outcome 1 strategy

AHL will set targets in five major areas of activity in 2010-11. This will complement the work being done through the Ernst & Young Reform Agenda.

Management and partnerships

AHL will continue to work with government, business and communities to help close the gap in education, employment, health, homelessness and other services, which will assist in improving Indigenous quality of life through the delivery of appropriate hostel accommodation.

AHL will also seek relationships with educational bodies to increase Indigenous student and employment participation and with health organisations to improve Indigenous education, employment and health outcomes.

Access services for Indigenous Australians

In 2010-11, AHL will continue to build on previous strategies that determine those areas most in need of accommodation support, with a particular emphasis on implementing strategies that close the gap. This will be supported by increased engagement with communities in order to respond to their needs.

AHL will develop new access strategies for education, health and employment through research to determine the areas most in need and will continue to build on the new performance indicators to ensure that client outcomes are met and measured.

Marketing

AHL will continue to market the company externally by highlighting its expertise as a skilled accommodation service provider for Indigenous communities. Regional managers will build on expanding their role to include active networking and marketing of AHL to a range of service providers, including state government, local government and other relevant partners.

AHL will create a Business Development Officer position during 2010-11 to assist with seeking partnership opportunities with government and private business, while at the same time marketing AHL services.

Human resources

AHL will continue to implement efficiency measures as agreed to in its Enterprise Bargaining Agreement (approved in February 2010) and will continue to review its human resource internal systems.

Information technology

During 2010-11, AHL will implement a Hostel Management System (Booking System) at all its hostels to ensure timely production of reports for crucial decision making, and to assist in automating data collection that is currently based on manual systems. Work on the new financial system has started, and the project team is working towards a 'go live' date of 1 July 2010.

AHL is also refreshing its entire stock of hardware and software. This allows AHL to revisit its network design and upgrade it to align with the best industry practices to ensure that it remains current for the next 5-10 years.

Outcome expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by program.

Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome 1

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 1.1: Company owned and operated hostels    
Revenue from Government
Ordinary Annual Services (Appropriation Bill No. 1)
30,440 36,255
Total for Program 1.1 30,440 36,255
Program 1.2: Community operated hostels    
Revenue from Government
Ordinary Annual Services (Appropriation Bill No. 1)
6,400 6,400
Total for Program 1.2 6,400 6,400
Total revenue from Government (appropriations) contributing to price of departmental programs 36,840 42,655
Revenue from other sources    
Program 1.1 - Company owned and operated hostels 12,440 11,482
Program 1.2 - Community operated hostels - -
Total revenue from other sources 12,440 11,482
Total price from departmental programs
(Total revenue from Government and from other sources)
49,280 54,137
Total estimated resourcing for Outcome 1
(Total price of programs and administered appropriations)
49,280 54,137
  2009-10 2010-11
Average Staffing Level (number) 426 442

Note: Departmental appropriation splits and totals, by outcome and output, are indicative estimates and may change in the course of the budget year as government priorities change.

Contributions to Outcome 1

Program 1.1 Company owned and operated hostels

Program 1.1 objective

To provide temporary accommodation at company owned and operated hostels that assists Aboriginal and Torres Strait Islander people to achieve personal goals to obtain dignity and equity in the Australian community

Program 1.1 expenses

Newly constructed AHL hostels (Kununurra Secondary Education Hostel, Port Hedland Renal Dialysis Hostel) are resulting in increased expenditure levels.

Expenses also fluctuate due price increases for essential supplies, such as food and construction/major maintenance materials.

The contract with DEEWR for the delivery of the Indigenous Youth Mobility Program (IYMP) in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in June 2012. As a result, there is a marked reduction in total expenditure from 2012-13 that aligns with the reduction in the income from DEEWR for the same period.


Table 2.1.1: Budgeted expenses for Company owned and operated hostels

('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Program Component Name          
Annual Departmental Expenses:          
Departmental Item 42,879 47,736 48,064 47,396 46,983
Program Support          
Total Program Expenses 42,879 47,736 48,064 47,396 46,983
Program 1.1 deliverables

The maximum number occupancy nights available in each financial year.


 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of beds 1,794 1,794 1,794 1,794 1,794
Program 1.1 key performance indicators
  • Average nightly occupancy rate as percentage of available beds in company owned and operated hostels in each financial year
  • Percentage of residents who were satisfied with the accommodation and services provided

Program 1.1 key performance indicators

Key Performance Indicators

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Average occupancy level as a percentage of beds 70 70 70 70 70
Percentage of residents satisfied with accommodation provided 75 75 75 75 75

Program 1.2 Community operated hostels

Program 1.2 objective

To provide grant support for temporary accommodation at community operated hostels that assists Aboriginal and Torres Strait Islander people to achieve personal goals to obtain dignity and equity in the Australian community.

Program 1.2 expenses

The total grants program has been revised down to $6.4 million per year following the cessation of funding by the Department of Health and Ageing totalling $1.8 million from 1 July 2009. That department administers the grants to community operated aged care nursing homes directly from the 2009-10 financial year.


Table 2.1.2: Budgeted expenses for Community operated hostels

('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Program Component Name          
Annual Departmental Expenses:          
Departmental Item 6,400 6,400 6,400 6,400 6,400
Program Support          
Total Program Expenses 6,400 6,400 6,400 6,400 6,400
Program 1.2 deliverables

The maximum number of occupancy nights available in each financial year.


 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of Beds 1,333 1,333 1,333 1,333 1,333
Program 1.2 key performance indicators
  • Average nightly occupancy rate as percentage of available beds in community operated hostels in each financial year.
  • Percentage of residents who were satisfied with the accommodation and services provided.

 

Key Performance Indicators

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Average occupancy level as a percentage of beds 70 70 70 70 70
Percentage of residents satisfied with accommodation provided 75 75 75 75 75

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements, which provide a comprehensive snapshot of agency finances for the 2010-11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

AHL has no administered funds for 2010-11.

3.1.2 Special accounts

AHL has no special accounts for 2010-11.

3.1.3 Australian Government Indigenous expenditure


Table 3.1.3: Australian Government Indigenous expenditure
Outcome Appropriations   Other Total Program
Bill No. 1
$'000
Bill No. 2
$'000
Total Approp
$'000

$'000

$'000
Aboriginal Hostels Ltd              
Outcome 1            
Departmental 2010-11 36,255 6,920 43,175 11,482 54,657 1.1
  6,400 - 6,400   6,400 1.2
Departmental 2009-10 30,440 3,790 34,230 12,440 46,670 1.1
  6,400 - 6,400   6,400 1.2
Total Outcome 2010-11 42,655 6,920 49,575 11,482 61,057  
Total Outcome 2009-10 36,840 3,790 40,630 12,440 53,070  
Total AGIE 2010-11 42,655 6,920 49,575 11,482 61,057  
Total AGIE 2009-10 36,840 3,790 40,630 12,440 53,070  

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3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no significant differences between the resource information presented in the Budget papers and Portfolio Budget Statements (PB Statements) as a result of differences between Australian Accounting Standards and Government Finance Statistics. Furthermore, there are no differences that arise because of related entity transactions.

3.2.2 Analysis of budgeted financial statements

An analysis of the primary causes of movements from the financial statements published in the 2010-11 PB Statements is provided below.

Budgeted departmental income statement

This statement provides a picture of the expected financial results for AHL by identifying full accrual expense and revenues, which highlights whether AHL is operating at a sustainable level.

Total revenue

Operating income from Government has increased by $5.8 million in 2010-11 as a result of additional operating funds for Kununurra Secondary Education Hostel ($0.6 million), Townsville Renal Dialysis Hostel ($0.8 million), Port Hedland Renal Dialysis Hostel ($0.8 million), Nhulunbuy/Borroloola Secondary Education Hostels (now reallocated to Noongar Elders Home in Perth) ($1.2 million); Fire Safety and OH&S major maintenance depreciation ($1.6 million); and a net increase in ongoing operational costs of $0.8 million.

Accommodation charges have increased due to revisions of tariff rates in line with the increase in Centrelink benefits.

Other grants reflects the funding expected to be received from DEEWR through the Indigenous Youth Mobility Program (IYMP) until 30 June 2012. The contract with DEEWR for the delivery of the IYMP in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in June 2012. As a result, there is a marked reduction in total income from 2012-13.

Total expenses

Salaries and employee benefits-these have been increased by $1.4 million as a result of new AHL hostels in Mt Isa redevelopment, Kununurra and Townsville.

Suppliers-this includes food, materials, services and sundry expenses and the increase is reflective of new hostels and the IYMP program through DEEWR.

Depreciation and amortisation-the higher level of depreciation expenditure flows from the acquisition costs for fire safety works across all AHL sites ($5.0 million from 2007-08 to 2009-10) and the expected additional OH&S-type major repairs totalling $6.92 million during the 2010-11 financial year.

Grants-this item represents the community hostels grants of a capital and operating nature to approved organisations to operate hostels.

The contract with DEEWR for the delivery of the IYMP in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in June 2012. As a result, there is a marked reduction in both total income and expenditure from 2012-13.

Budgeted departmental balance sheet

This statement shows the financial position of AHL. It helps AHL to track the management of assets and liabilities.

The major variations between estimated actuals for 2009-10 and the budget for 2010-11 in the balance sheet are as follows:

  • Investment activity in non-current assets continues to increase in 2010-11 due to the capital equity injections for OH&S major maintenance at AHL hostels ($6.92 million) and Noongar Elders Home in Perth ($1.2 million).
  • The cash balance reflects the nature of hostel major maintenance and construction works, as they normally take two to three years to complete. Consequently, actual payments are spread over two financial years, resulting in an increase in the cash balance in 2010-11.
  • The receivables are fairly stable and include items such as GST refunds due from the Australian Taxation Office and trade debtors.
  • Liabilities are expected to remain at similar level for the next three financial years.
Budgeted departmental statement of cash flows

Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

The major variations between estimated actuals for 2009-10 and the budget for 2010-11 in the statement of cash flows are as follows:

  • The increase in total cash to be received in 2010-11 is linked to the increase in appropriation and the higher level of accommodation charges collected ($3.2 million cash impact).
  • The trend in payments to suppliers and employees is in line with the comments provided under the expenses category in the income statement.
  • The purchase of property, plant and equipment in 2010-11 is due to capital equity injections of $6.92 million for OH&S-type major repairs at AHL-owned hostels and the finalisation of the Kununurra Secondary Education Hostel during 2010-11.
Departmental statement of changes in equity-summary of movement

The changes in the statement of equity are a $0.001 million surplus for the 2010-11 financial year and $6.92 million in capital equity injections for the OH&S-type major repairs at AHL-owned hostels.

3.2.3 Budgeted financial statements tables


Table 3.2.1 comprehensive income statement (showing net cost of services) (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
EXPENSES          
Employee benefits 25,869 27,312 27,262 26,823 26,589
Supplier 14,060 16,103 16,095 15,866 15,687
Grants 6,400 6,400 6,400 6,400 6,400
Depreciation and amortisation 2,840 4,211 4,597 4,597 4,597
Write-down and impairment of assets 110 110 110 110 110
Finance costs          
Other - - - - -
Total expenses 49,279 54,136 54,464 53,796 53,383
LESS:          
OWN-SOURCE INCOME          
Revenue          
Accommodation Charges 8,869 9,000 9,427 9,427 9,427
Appropriations 36,840 42,655 42,556 41,888 41,475
Grants and Subsidies          
Department of Health and Ageing 2,413 1,800 1,800 1,800 1,800
Indigenous Youth Mobility Program 476 - - - -
Interest 500 500 500 500 500
Other revenue 182 182 182 182 182
Total revenue 49,280 54,137 54,465 53,797 53,384
Surplus (Deficit) 1 1 1 1 1
Surplus (Deficit) attributable to the Australian Government 1 1 1 1 1

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS          
Financial assets          
Cash and equivalents 26,467 24,833 23,585 22,338 21,090
Trade and other Receivables 1,368 2,060 2,752 3,444 4,136
Total financial assets 27,835 26,893 26,337 25,782 25,226
Non-financial assets          
Land and buildings 65,364 72,864 73,058 73,252 73,446
Infrastructure, plant and equipment 2,657 3,017 3,377 3,737 4,097
Heritage and cultural assets 110 113 116 119 122
Total non-financial assets 68,131 75,994 76,551 77,108 77,665
Total assets 95,966 102,887 102,888 102,890 102,891
LIABILITIES          
Provisions          
Employees 3,248 3,248 3,248 3,248 3,248
Total provisions 3,248 3,248 3,248 3,248 3,248
Payables          
Suppliers 240 240 240 240 240
Total payables 240 240 240 240 240
Total liabilities 3,488 3,488 3,488 3,488 3,488
Net assets 92,478 99,399 99,400 99,402 99,403
EQUITY*          
Parent entity interest          
Contributed equity 81,161 88,081 88,081 88,081 88,081
Retained surpluses or accumulated deficits 11,317 11,318 11,319 11,321 11,322
Total equity 92,478 99,399 99,400 99,402 99,403
Current assets 27,835 26,893 26,337 25,782 25,226
Non-current assets 68,131 75,994 76,551 77,108 77,665
Current liabilities 3,248 3,248 3,248 3,248 3,248
Non-current liabilities 240 240 240 240 240

Prepared on Australian Accounting standards basis
 


Table 3.2.3: Departmental statement of changes in equity-summary of movement (Budget year 2010-11)

 

Retained earnings
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2010      
Balance carried forward from previous period 11,317 81,161 92,478
Surplus (deficit) for the period 1 - 1
Transactions with owners      
Contribution by owners
Appropriation (equity injection)
- 6,920 6,920
Estimated closing balance
as at 30 June 2011
11,318 88,081 99,399

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES          
Cash received          
Accomodation Charges 8,759 8,890 9,317 9,317 9,317
Appropriations 36,640 41,963 41,864 42,196 41,783
Grants and Subsidies 2,889 1,800 1,800 1,800 1,800
Interest 500 500 500 500 500
Other 2,597 2,597 2,597 2,597 2,597
Total cash received 51,385 55,750 56,078 56,410 55,997
Cash used          
Employees 24,841 26,252 26,202 26,144 25,910
Suppliers 17,303 19,578 19,570 19,960 19,781
Grants 6,400 6,400 6,400 6,400 6,400
Total cash used 48,544 52,230 52,172 52,504 52,091
           
Net cash from or (used by) operating activities 2,841 3,520 3,906 3,906 3,906
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 7,934 12,074 5,154 5,154 5,154
Net cash from or (used by) investing activities (7,934) (12,074) (5,154) (5,154) (5,154)
FINANCING ACTIVITIES          
Cash received          
Appropriations - contributed equity 3,790 6,920 - - -
Net cash from or (used by) financing activities 3,790 6,920 - - -
Net increase or (decrease) in cash held (1,303) (1,634) (1,248) (1,247) (1,248)
Cash at the beginning of the reporting period 27,770 26,467 24,833 23,585 22,338
Cash at the end of the reporting period 26,467 24,833 23,585 22,338 21,090

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
CAPITAL APPROPRIATIONS    
Total equity injections 3,790 6,920
Total loans - -
Special appropriations - -
Total capital appropriations 3,790 6,920
Represented by:    
Purchase of non-financial assets 3,790 6,920
Other    
Total represented by 3,790 6,920
ACQUISITION OF NON-FINANCIAL ASSETS    
Funded by capital appropriations 3,790 6,920
Funded internally from Departmental resources1 4,600 -
TOTAL 8,390 6,920

Prepared on Australian Accounting Standards basis.

1. Includes the following sources of funding: annual and prior year appropriations; donations and contributions; gifts; finance leases; internally developed assets; s. 31 relevant agency receipts; proceeds from the sale of assets.


Table 3.2.6: Statement of asset movements (2010-11)

 

Land

$'000
Buildings

$'000
Other Infrastructure,
Plant & Equipment
$'000
Heritage &
Cultural Assets
$'000
Total

$'000
as at 1 July 2010          
Gross book value 5,740 85,185 4,355 128 95,408
Accumulated depreciation/amortisation - 25,561 1,698 18 27,277
Opening net book balance 5,740 59,624 2,657 110 68,131
CAPITAL ASSET ADDITIONS          
Estimated expenditure on new or replacement assets          
by purchase or internally developed - 11,420 650 4 12,074
Sub-total - 11,420 650 4 12,074
as at 30 June 2011          
Gross book value 5,740 96,605 5,005 132 107,482
Accumulated depreciation/amortisation - 29,481 1,988 19 31,488
Closing net book balance 5,740 67,124 3,017 113 75,994

Prepared on Australian Accounting Standards basis.


3.2.4 Notes to the financial statements

The financial statements have been prepared in accordance with Australian Equivalent of International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial statements are prepared on an accrual basis and in accordance with historical cost convention.

The accounting policies adopted that underpin these statements are consistent with those applied in 2009-10.

Reference should be made to AHL's Annual Report 2009-10 for detailed disclosure of AHL's accounting policies.

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Indigenous Business Australia

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements

Section 1: Agency overview and resources

Indigenous Business Australia's (IBA) outcome is:

Stimulating the economic advancement of Aboriginal and Torres Strait Islander peoples.

1.1 Strategic direction statement

IBA's vision is for a nation in which the First Australians are economically independent and an integral part of the economy. Under its legislation-theAboriginal and Torres Strait Islander Act 2005-IBA's purpose is to:

  • assist and enhance Aboriginal and Torres Strait Islander self management and economic self-sufficiency
  • advance the commercial and economic interest of Aboriginal and Torres Strait Islanders by accumulating and using a substantial capital base for the benefit of the Aboriginal and Torres Strait Islander peoples.

To achieve its purpose, IBA has established four key strategic objectives, under which its specific strategies and performance indicators are grouped:

  • Accumulating an asset base for the benefit of Indigenous Australians. IBA implements an investment strategy aimed at a balanced portfolio generating returns for further investments and economic benefits for Indigenous Australians. These benefits include cash for further investments, improving employment opportunities and using the assets as the basis for developing small business opportunities. Initiatives are also implemented to support and develop the capacity of Indigenous joint venture partners.
  • Encouraging and facilitating Indigenous Australians' ownership of sustainable small business. IBA provides services and support arrangements which enable existing and potential entrepreneurs to build awareness and business skills, obtain concessional business loans and access aftercare services. IBA also facilitates access to other business support services and mainstream finance where appropriate.
  • Bridging the gap in home ownership through concessional home loans and assistance with ongoing loan management and other aspects of home ownership. These services are provided for aspiring Indigenous homeowners who cannot access bank loans. IBA also promotes awareness and informed choice of home ownership options and facilitates access to mainstream finance where appropriate.
  • Promoting and encouraging Indigenous Australians' self-management and economic self-sufficiency. IBA maximises the opportunities for Indigenous employment and training through its activities, undertakes or contributes to initiatives that support the development of Indigenous commercial capacity, and brokers partnerships with the private sector, Indigenous organisations and government to deliver support and services that promote Indigenous economic development.

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1.2 Agency resource statement

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.


Table 1.1: Indigenous Business Australia resource statement-Budget estimates for 2010-11 as at Budget May 2010

Source

Estimate of prior year amounts available in
2010-11
$'000
+ Proposed at Budget
2010-11
$'000
= Total estimate
2010-11
$'000
Actual available appropriation
2009-10
$'000
Opening balance/Reserves at bank -   -   - -
REVENUE FROM GOVERNMENT            
Ordinary annual services1            
Outcome 1
Indigenous Business Australia
-   38,831   38,831 38,840
             
Total ordinary annual services -   38,831   38,831 38,840
Other services2            
Non-operating -   33,170   33,170 33,170
Total other services -   33,170   33,170 33,170
             
Total annual appropriations -   72,001   72,001 72,010
Payments from related entities3            
Amounts from the portfolio department -   -   - 9,523
Total - - -   - 9,523
             
Total funds from government -   72,001   72,001 81,533
FUNDS FROM OTHER SOURCES            
Interest -   43,068   43,068 41,887
Dividends -   -   - -
Sale of goods and services -   39,303   39,303 42,077
Rents -   12,969   12,969 13,286
Unwind concessional loan discount -   12   12 -
Net gain on sale of assets -   -   - 3,625
Other -   200   200 1,251
Total -   95,552   95,552 102,126
             
Total net resourcing for IBA -   167,553   167,553 183,659
  1. Appropriation Bill (No.1) 2010-11
  2. Appropriation Bill (No.2) 2010-11
  3. Funding provided by a government body that is not specified within the annual appropriation bills as a payment to the CAC Act body.

Note: IBA is not directly appropriated as it is a CAC Act body. Appropriations are made to FaHCSIA and are then paid to IBA, and are considered 'departmental' for all purposes.

All figures are GST exclusive.

Third-party payments from and on behalf of other agencies

IBA does not have any third-party drawdowns from and on behalf of other agencies.

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1.3 Budget measures

Budget measures relating to Indigenous Business Australia are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2 Agency 2010-11 Budget Measures

 

Program

2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2013-14
$'000
Revenue measures            
Home Ownership Program - transfer of funding from the Home Ownership on Indigenous Land Program 1.2, 1.4          
Administered revenues   - - - - -
Departmental revenues   - -268 6 313 669
Total   - -268 6 313 669
Total revenue measures            
Administered   - - - - -
Departmental   - -268 6 313 669
Total   - -268 6 313 669
Expense measures            
Home Ownership Program - transfer of funding from the Home Ownership on Indigenous Land Program 1.2, 1.4          
Administered expenses   - - - - -
Departmental expenses   - 15,340 973 1,095 1,234
Total   - 15,340 973 1,095 1,234
Total expense measures            
Administered   - - - - -
Departmental   - 15,340 973 1,095 1,234
Total   - 15,340 973 1,095 1,234

Prepared on a Government Financial Statistics (fiscal) basis.

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Section 2: Outcome and planned performance

2.1 Outcome and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the Budget and forward years.

IBA's outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of IBA in achieving government outcomes.

Outcome 1

Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to concessional home and business loans.

Outcome 1 strategy

IBA utilises a suite of commercially focused Indigenous economic development programs to enhance Indigenous economic self-management and self-sufficiency. IBA delivers flexible and concessional interest rate loan products and aftercare support to improve Indigenous home ownership on freehold and Indigenous land. IBA also provides concessional interest rate business loans and business support to increase Indigenous ownership of small to medium sized enterprises. For larger investment projects, IBA brings together private sector capacity partners with Indigenous individuals and groups, co-investing in joint venture projects that provide both commercial returns and a direct transfer of business skills and acumen to Indigenous partners.

IBA offers a holistic approach to Indigenous economic and commercial development which includes close engagement with private sector operators who share the vision of encouraging Indigenous participation in the mainstream economy.

Outcome expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.


Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 1.1: Equities and Investments    
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) - -
Revenues from other independent sources 83,528 51,615
     
Subtotal for Program 1.1 83,528 51,615
Program 1.2: Home Ownership Program    
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 8,021 7,991
Revenues from other independent sources 54,862 52,391
     
Subtotal for Program 1.2 62,883 60,382
Program 1.3: Business Development Program    
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 23,660 23,428
Revenues from other independent sources 4,333 4,939
Expenses not requiring Appropriation in the Budget year 8,325 14,879
     
Subtotal for Program 1.3 36,318 43,246
     
Program 1.4: Home Ownership on Indigenous Land    
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 7,159 7,412
Revenues from other independent sources 2,753 -
Expenses not requiring Appropriation in the Budget year (7,474) (3,190)
     
Subtotal for Program 1.4 2,438 4,222
     
Outcome 1 totals by appropriation type:    
Departmental expenses    
Ordinary Annual Services (Appropriation Bill No. 1) 38,840 38,831
Revenues from other independent sources 145,476 108,945
Expenses not requiring Appropriation in the Budget year 851 11,689
     
Total expenses for Outcome 1 185,167 159,465
  2009-10 2010-11
Average staffing level (number) 242 254

Contributions to Outcome 1

Program 1.1: Equity and Investments

Program objective

IBA Investments’ objective is to assist and develop Indigenous Australians to achieve economic self-determination through direct investment and participation in commercial and joint venture business enterprises.

Program 1.1 expenses

Program 1.1 will not receive government funding, but will cover its operating expenses through prudent management of the investment portfolio.



 

Program expenses ('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Total departmental expenses 83,528 51,615 54,002 55,651 58,055
Total program expenses 83,528 51,615 54,002 55,651 58,055

Program 1.1 deliverables

A profitable and sustainable investment portfolio that enables our Indigenous partners to participate in the mainstream economy.

Program 1.1 key performance indicators
  • Return on investment
  • Indigenous co-investors in investments
  • Profit distribution to Indigenous partners
  • Indigenous jobs created or supported by the investment portfolio

 

Key performance indicators

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Percentage return on Investment 7% 8% 9% 9% 9%
Indigenous co-investors 3 5 5 7 7
Profit distribution to Indigenous partners 1% 3% 3% 3% 3%
Increase in percentage of Indigenous jobs created or supported by investment portfolio 1% 3% 3% 3% 3%

Program 1.2: Home Ownership Program

Program 1.2 objective

Program 1.2 aims to provide an affordable entry into home ownership for Indigenous people, particularly those on lower incomes. The Home Ownership Program is focused on first home buyers who have difficulty obtaining home loan finance from mainstream commercial lenders. The program’s success is assessed in terms of increasing the percentage of Indigenous home ownership so that it is closer to that of the wider Australian community.

Program 1.2 expenses

The interest component of loan repayments has reduced since the beginning of 2008-09 as a result of loan interest rates moving in line with movements in official interest rates. Early loan discharges have also decreased, which is a normal consequence in times of economic uncertainty. While interest revenue is expected to rise, so are average loan sizes. A temporary transfer of capital in the 2010-11 Budget will result in increased new loan projections over 2010-11 and the budget out years.


 

Program expenses ('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Total departmental expenses 62,883 60,382 36,595 37,460 38,944
Total program expenses 62,883 60,382 36,595 37,460 38,944

Program 1.2 deliverables

The key program deliverable is the provision of new home loans and the management of the home loan portfolio.


 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of new home loans 360 530 410 360 350
Aggregate loans in the portfolio 3,400 3,550 3,600 3,600 3,600
Program 1.2 key performance indicators

The key performance indicators measure the success of the program in targeting new lending to those applicants who would not normally be able to obtain a home loan from other financial lenders.

 

Key performance indicators

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of loans to applicants who have an adjusted combined gross monthly income of not more than 125% of IBA's Income Amount 75%
of loans
75%
of loans
75%
of loans
75%
of loans
75%
of loans
Number of loans to applicants who are first home buyers 80%
of loans
80%
of loans
80%
of loans
80%
of loans
80%
of loans

Program 1.3: Business Development and Assistance

Program 1.3 objective

IBA works with Indigenous Australians to help them succeed in business. The focus is on the sustainable viability of the business, as distinct from simply getting into business. This objective is achieved primarily through providing affordable business loans and other support to clients to assist them to successfully enter into business. Support is also provided to existing businesses to grow or improve aspects of their management or performance, thus improving their prospects for long-term success.

Program 1.3 expenses

Program expenses are expected to remain relatively constant for the foreseeable future.


 

Program expenses ('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Total departmental expenses 36,318 43,247 39,049 39,723 40,353
Total program expenses 36,318 43,247 39,049 39,723 40,353

Program 1.3 deliverables

The target for this program is to increase the number of Indigenous Australians who succeed in business. The success of this outcome can be assessed through the deliverables in the table below.


 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of new loans approved 70 70 70 70 70
Number of businesses or prospective businesses provided with business advice or support 450 450 450 450 450
Number of EDIs undertaken 50 40 40 40 40
Number of jobs created/supported through IBA loan funding 230 200 200 200 200
Number of active loans in the portfolio 310 320 340 340 340
Program 1.3 key performance indicators

IBA Enterprises has an integrated suite of products: business loans, business support and economic development initiatives (EDIs). Business loans provide clients with affordable finance. Business support assists clients to plan their proposed business and assess its viability, and to access business management training and mentoring in the critical first year of being in business. EDIs support projects that overcome barriers to Indigenous people owning and operating successful businesses; facilitate the development of business-related skills, knowledge, information and assistance; and research economic opportunities.


 

Key performance indicators

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Percentage of Loan Accounts moved from Active status that were successfully paid out 75% 70% 80% 80% 80%
Percentage of Loan Clients still in business 12 months after commencing business 80% 80% 80% 80% 80%
Percentage of Loan Clients still in business 2 years after commencing business 70% 70% 70% 70% 70%
Percentage of Loan Clients still in business 3 years after commencing business 55% 55% 55% 55% 55%

Program 1.4: Home Ownership on Indigenous Land

Program 1.4 objective

Provide incentives and affordable loans aimed at making home ownership a realistic choice for Indigenous people living on community titled land.

Program 1.4 expenses

New Home Ownership on Indigenous Land (HOIL) loans are expected to rise significantly each year before stabilising at about 100 loans per annum in 2013-14. In 2009-10 and 2010-11, it is expected that most new loans will be in the Northern Territory in communities where township leases have been finalised and in Queensland where land tenure reform has been completed to facilitate home ownership as a real choice for Indigenous people living on community land.


 

Program expenses ('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Total departmental expenses 2,438 4,222 5,067 5,902 6,915
Total program expenses 2,438 4,222 5,067 5,902 6,915
Program 1.4 deliverables

The key program deliverables are the provision of home loans to Indigenous individuals and families on community titled land and consultation with groups, individuals and Commonwealth and state agencies to ensure appropriate awareness of the program and that supporting arrangements are in place, particularly relating to the policy and operational framework necessary for parcels of land to be offered for sale to individual community members.


 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of new loans 20 40 60 80 100
Aggregate loans in the portfolio 30 70 130 210 310
Program 1.4 key performance indicators

The key performance indicators are the number of communities actively engaging in the implementation of home ownership and subsequent home lending.


 

Key performance indicators

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Number of new communities actively participating in the Home Ownership on Indigenous Land Program 8 12 15 20 25
Number of new loans 20 40 60 80 100
Aggregate loans in the portfolio 30 70 130 210 310

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2010-11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

Indigenous Business Australia has no administered funds.

3.1.2 Special accounts

Indigenous Business Australia has no special accounts.

3.1.3 Australian Government Indigenous expenditure


Table 3.1.3: Australian Government Indigenous expenditure

Outcome

Appropriations

  Other Total Program
Bill No. 1
$'000
Bill No. 2
$'000
Total approp.
$'000

$'000

$'000
Indigenous Business Australia              
Outcome 1              
Departmental 2010-11 38,831 33,170 72,001   95,552 167,553 All Outputs
Departmental 2009-10 38,840 33,170 72,010   111,649 183,659 All Outputs
Total Outcome 2010-11 38,831 33,170 72,001   95,552 167,553 All Outputs
Total Outcome 2009-10 38,840 33,170 72,010   111,649 183,659 All Outputs
Total AGIE 2010-11 38,831 33,170 72,001   95,552 167,553 All Outputs
Total AGIE 2009-10 38,840 33,170 72,010   111,649 183,659 All Outputs

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3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no differences between IBA's agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

An analysis of the primary causes of movements in the budgeted financial statements is provided below. The 2009-10 estimated actual results are used as the comparative year in the analysis.
IBA made a structural shift in its PB Statements process for 2010-11. In previous years, the PB Statements only constituted IBA Corporation stand-alone budgets; IBA's investment portfolio was accounted as financial assets and the income from such investments flowed through as dividends. This year, in order to fully align with the annual report process, budgets are prepared on a consolidated basis: assets, liabilities, income and expenditure of all subsidiaries flow through to individual line items in the consolidated budget. Individual budgets for 29 subsidiaries are now consolidated into IBA's budget under rules prescribed by the Australian Accounting Standards.

Budgeted agency income statement

IBA is budgeting for an operating deficit of $21.6 million in 2010-11 and an estimated actual deficit for 2009-10 of $31.2 million. The causes of the operating deficits across the two financial years are:

  • a significant increase in the discount expense in 2009-10, on revaluation of the concessional rate loan portfolio under AASB 139 (This is primarily driven by a sharp increase in interest rates in 2009-10. The impact from the new policy proposal transferring $56 million of HOIL capital to the Home Ownership Program (HOP) in 2010-11 has resulted in higher discount values charged to the income statement for that year.)
  • a significant loss in 2009-10 of $10.6 million associated with the transfer of Outback Stores to FaHCSIA, and the loss on disposal of other investments of $6.5 million.

There is a significant increase in revenue items (i.e. goods and services, rents) and expense items such as employee expenses, supplier expenses and depreciation from the previous years PB Statements. This is due to the structural shift towards consolidated budgeting explained above. Consequently, dividend income from subsidiaries has been eliminated.

Budgeted agency balance sheet

There is a significant upward movement in cash, land and buildings, infrastructure, plant and equipment, investment properties and intangibles from the previous year's PB Statements due to the structural shift towards consolidated budgeting. This has been matched by a decrease in other investments (in subsidiaries) on consolidation.

Budgeted net assets for 2010-11 of $961.5 million represent an increase of $11.6 million over the estimated actual for 2009-10, primarily due to:

  • continuing capital injections from Government of $33.2 million
  • initial write-down of additional loans settled under the HOIL to HOP capital transfer.

A noticeable trend is the steady continued growth in financial assets, receivables and investments, as IBA continues its lending and investing activities, in line with its objectives of Indigenous economic participation and wealth creation.

Statement of cash flows

Lending activity will increase in 2010-11. New loans will increase from $99.8 million to $159.4 million due to the temporary transfer of $56 million in capital from HOIL to HOP. The interest from home loans is quarantined and ploughed back into the home loan program.

Statement of changes in equity

Total equity has increased by $11.6 million due to an additional equity injection of $33.2 million, offset by a decrease in retained earnings of $21.6 million.

3.2.3 Budgeted financial statements tables


Table 3.2.1 comprehensive income statement (showing net cost of services)
(for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
INCOME          
Revenue          
Revenues from Government 38,840 38,831 39,533 39,561 39,505
Goods and services 51,600 39,303 41,133 42,778 44,557
Interest 41,887 43,068 43,500 45,231 47,347
Dividends - - - - -
Discount - 12 20 20 21
Rents 13,286 12,969 14,697 15,144 15,613
Other 1,251 200 231 282 335
Total revenue 146,864 134,383 139,114 143,016 147,378
Gains          
Sale of assets 3,625 - - - -
Total gains 3,625 - - - -
Total income 150,489 134,383 139,114 143,016 147,378
           
EXPENSE          
Employees 37,515 36,550 37,049 38,213 39,706
Suppliers 54,451 49,305 54,431 56,498 59,278
Grants 8,491 16,515 17,066 17,637 17,838
Depreciation and amortisation 3,618 2,622 2,687 2,320 2,316
Finance costs 79 74 79 74 237
Write-down of assets and impairment of assets 6,495 7,600 2,000 2,000 2,000
Concessional Loan Discount 54,747 45,597 20,200 20,792 21,690
Net Losses sale of assets 17,793 - - - -
Other 1,978 1,203 1,201 1,203 1,202
Total expenses 185,167 159,466 134,713 138,737 144,267
the equity method 4,036 4,000 4,000 4,000 4,000
Profit (Loss) before income tax (30,642) (21,083) 8,401 8,279 7,111
Income tax expense 567 530 649 656 694
Net profit (Loss) (31,209) (21,613) 7,752 7,623 6,417
           
Profit (Loss) attributable to the Australian Government (31,209) (21,613) 7,752 7,623 6,417
           
Total comprehensive income attributable to the Australian Government (31,209) (21,613) 7,752 7,623 6,417

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS          
Financial assets          
Cash and equivalents 123,384 144,369 190,644 234,441 275,284
Receivables 429,329 467,802 483,298 502,455 523,518
Investments accounted for using the equity method 44,613 44,613 44,683 44,721 44,760
Other investments 212,689 167,795 147,795 127,795 107,795
Total financial assets 810,015 824,579 866,420 909,412 951,357
Non-financial assets          
Land and buildings 12,566 12,127 11,638 11,241 10,954
Infrastructure, plant and equipment 10,844 9,099 7,465 5,610 4,128
Investment properties 136,358 136,358 136,358 136,358 136,358
Intangibles 10,658 10,599 10,399 10,225 10,071
Other 2,724 2,676 2,582 2,519 1,825
Total non-financial assets 173,150 170,859 168,442 165,953 163,336
Total assets 983,165 995,438 1,034,862 1,075,365 1,114,693
LIABILITIES          
Interest Bearing liabilities          
Loans 17,463 17,463 17,544 17,544 17,544
Total interest bearing liabilities 17,463 17,463 17,544 17,544 17,544
           
Provisions          
Employees 5,358 5,900 5,836 5,838 5,840
Other 1,304 1,325 1,304 1,304 1,304
Total provisions 6,662 7,225 7,140 7,142 7,144
Payables          
Suppliers 6,109 6,107 5,646 5,653 5,680
Other 2,941 3,096 2,063 1,764 1,476
Total payables 9,050 9,203 7,709 7,417 7,156
Total liabilities 33,175 33,891 32,393 32,103 31,844
Net assets 949,990 961,547 1,002,469 1,043,262 1,082,849
EQUITY*          
Parent entity interest          
Contributed equity 719,674 752,844 786,014 819,184 852,354
Reserves 13,402 13,402 13,402 13,402 13,402
Retained surpluses or accumulated deficits 208,687 187,074 194,826 202,449 208,866
Total parent entity interest 941,763 953,320 994,242 1,035,035 1,074,622
Attributed to minority interest          
Contributed Equity 8,227 8,227 8,227 8,227 8,227
Total minority interest 8,227 8,227 8,227 8,227 8,227
Total equity 949,990 961,547 1,002,469 1,043,262 1,082,849

* 'Equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity - summary of movement (Budget year 2010-11)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2010          
Balance carried forward from          
previous period 208,687 13,402 - 727,901 949,990
Opening balance adjustment - - - - -
Adjusted opening balance 208,687 13,402 - 727,901 949,990
Comprehensive income          
Comprehensive income recognised directly in equity - - - - -
Gain/loss on revaluation of property - - - - -
Subtotal comprehensive income - - - - -
Surplus (deficit) for the period (21,613) - - - (21,613)
Total comprehensive income recognised directly in equity (21,613) - - - (21,613)
Transactions with owners          
Contributions by owners          
Appropriation (equity injection) - - - 33,170 33,170
Other - - - - -
Restructuring - - - - -
Subtotal transactions with owners - - - 33,170 33,170
Transfers between equity components - - - - -
Estimated closing balance as at 30 June 2011 187,074 13,402 - 761,071 961,547

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 51,600 39,303 41,133 42,778 44,557
Appropriations 38,840 38,831 39,533 39,561 39,505
Interest 41,887 43,068 43,500 45,231 47,347
Dividends -        
Other 14,537 13,169 14,928 15,426 15,948
Total cash received 146,864 134,371 139,094 142,996 147,357
Cash used          
Employees 36,193 36,008 37,113 38,211 39,704
Suppliers 59,462 49,233 54,429 59,113 57,090
Grants 8,491 16,515 17,066 17,637 17,838
Total cash used 104,146 101,756 108,608 114,961 114,632
Net cash from (used by) operating activities 42,718 32,615 30,486 28,035 32,725
INVESTING ACTIVITIES          
Cash received          
Proceeds from sales of property, plant and equipment          
Investments 20,000 55,000 20,000 20,000 20,000
Repayment of loands made 63,310 79,979 96,618 99,336 95,041
Total cash received 83,310 134,979 116,618 119,336 115,041
Cash used          
Purchase of property, plant and equipment 18,656 379 364 344 393
Loans made 99,763 159,400 113,635 116,400 119,700
Purchase of investments 20,000 20,000 20,000 20,000 20,000
Total cash used 138,419 179,779 133,999 136,744 140,093
Net cash from (used by) investing activities (55,109) (44,800) (17,381) (17,408) (25,052)
FINANCING ACTIVITIES          
Cash received          
Appropriations - contributed equity 33,170 33,170 33,170 33,170 33,170
Total cash received 33,170 33,170 33,170 33,170 33,170
           
Net cash from (used by) financing activities 33,170 33,170 33,170 33,170 33,170
Net increase (decrease) in cash held 20,779 20,985 46,275 43,797 40,843
Cash at the beginning of the reporting period 102,605 123,384 144,369 190,644 234,441
Cash at the end of the reporting period 123,384 144,369 190,644 234,441 275,284

Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 (DCB) - - - - -
Equity injections - Bill 2 33,170 33,170 33,170 33,170 33,170
Total capital appropriations 33,170 33,170 33,170 33,170 33,170
Total new capital appropriations          
Represented by:          
Other 33,170 33,170 33,170 33,170 33,170
Total items 33,170 33,170 33,170 33,170 33,170
PURCHASE OF NON-FINANCIAL ASSETS          
Funded internally by Departmental resources 18,656 379 364 344 393
TOTAL 18,656 379 364 344 393

Table 3.2.6: Statement of asset movements (2010-11)

 

Buildings

$'000
Other property,
plant & equipment
$'000
Investment property

$'000
Intangibles

$'000
Other

$'000
Total

$'000
As at 1 July 2010            
Gross book value 13,687 18,424 144,273 13,095 2,724 192,203
Accumulated depreciation/ amortisation and impairment 1,121 7,580 7,915 2,437 - 19,053
Opening net book balance 12,566 10,844 136,358 10,658 2,724 173,150
CAPITAL ASSET ADDITIONS            
Estimated expenditure on new or replacement assets            
By purchase - Government funding            
By purchase - donated funds            
By purchase - other   182   197   379
By finance lease            
Assets received as gifts/donations            
From acquisition of entities or operations (including restructuring)           -
Total additions - 182 - 197 - 379
Other movements            
Assets held for sale or in a disposal group held for sale            
Depreciation/amortisation expense 439 1,927   256   2,622
Disposals1           -
From disposal of entities or operations (including restructuring)           -
Other         (48) (48)
As at 30 June 2011            
Gross book value 13,687 18,606 144,273 13,292 2,676 192,534
Accumulated depreciation/ amortisation and impairment 1,560 9,507 7,915 2,693   21,675
Closing net book balance 12,127 9,099 136,358 10,599 2,676 170,859
  1. Proceeds may be returned to the OPA

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister's Orders issued by the Minister for Finance and Deregulation.

The statements have been prepared

  • on an accrual accounting basis
  • in compliance with Australian Accounting Standards and Australian Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group.
Revenue from government

This represents appropriation from government to IBA for the delivery of IBA's four programs in pursuit of its single outcome. Increases in the ordinary annual appropriations are a result of new measures and variations explained in Section 2.

Expenses-depreciation and amortisation

Property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current or current and future reporting periods, as appropriate.

Concessional loan discount

IBA continues to designate its loan portfolio at fair value through profit and loss as per paragraph 11A of AASB 139, which provides for contracts with embedded derivatives, such as prepayment options, to be designated at fair value through profit and loss. The variation in the loan portfolio under the fair value basis is written directly to the income statement.

Financial assets-receivables

This includes loans and advances made by IBA to clients in the delivery of its outputs, in addition to amounts owing to IBA for delivery of goods and services, and dividends owed to IBA from subsidiaries, associates and investments. Loans receivable are carried at fair value under AASB 139.

Assets-non-financial

Except for any revalued assets, the reported value of plant and equipment represents the purchase price paid less depreciation incurred.

Land and buildings held for investment are carried at fair value.

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Indigenous Land Corporation

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements

Section 1: Agency overview and resources

1.1 Strategic Direction

The Indigenous Land Corporation (ILC) is an independent Australian Government statutory authority established to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting with the acquisition and management of land. The ILC was established on 1 June 1995, and is governed by theAboriginal and Torres Strait Islander Act 2005 (ATSI Act). Its planned outcome is:

Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

The ATSI Act states that the ILC has two functions: land acquisition and land management.The ILC’s functions are to be exercised ‘in addition to, not instead of’ the functions conferred on other agencies (s. 191F(3)).

The ILC is not budget funded. Its current primary source of income is the realised real return from the Aboriginal and Torres Strait Islander Land Account (Land Account) pursuant to s. 193C (3) of the ATSI Act. The Land Account is administered by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

Since 2004, the ILC has operated with a fluctuating annual income due to an anomaly in a formula in the ATSI Act. Accordingly, in 2009–10 expenditure is projected to be greater than the revenue from the Land Account. This will be managed through the use of accrued cash reserves. The Government is looking to resolve this issue through minor legislative amendments, which are currently before parliament. The legislative amendment will provide the ILC with a minimum annual income of $45 million indexed per annum from 2010–11.

The Board is the ILC’s primary decision-making body and sets out the ILC’s strategic direction, policies and strategies in the National Indigenous Land Strategy 2007–12. The Board oversees governance of the ILC’s administration, considers land acquisition and land management proposals, and monitors performance.

The ILC provides assistance with land acquisition and land management through calling for applications from Indigenous organisations and landholders, and initiating projects to respond to opportunities to deliver significant Indigenous benefits. Key strategic priorities for the ILC will continue to be the achievement of training and employment outcomes and collaboration with other government agencies, industry, peak Indigenous organisations and the non-government sector. These collaborations bring additional expertise, funding and resources to achieve a more significant impact.

The ILC is committed to monitoring and evaluating its Land Acquisition and Land Management Program to ensure that benefits are being achieved and progress is made towards achieving its outcome. The ILC has an evaluation framework that guides it in monitoring its performance and informs its strategic planning.

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1.2 Agency Resource Statement

Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.


Table 1.1: Indigenous Land Corporation resource statement-Budget estimates for 2010-11 as at Budget May 2010

Source

Estimate of prior year amounts available in
2010-11
$'000
+ Proposed at Budget
2010-11
$'000
= Total estimate
2010-11
$'000
Actual available appropriation
2009-10
$'000
Opening balance/Reserves at bank 158,599       158,599  
REVENUE FROM GOVERNMENT            
Special accounts            
Aboriginal and Torres Strait Islander Land Account1     45,000   45,000 -
Total Special Account            
Total funds from Government -   45,000   45,000 -
FUNDS FROM OTHER SOURCES            
Interest     6,433   6,433 9,099
Other     4,106   4,106 4,106
Total     10,539   10,539 13,205
Total net resourcing for agency 158,599   55,539   214,138 13,205
  1. A CAC Act body may receive payment from a special account held by an FMA Act agency. The CAC Act body does not hold the special account itself and therefore does not have a balance carried forward from earlier years.

All figures are GST exclusive

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1.3 Budget Measures

Budget measures relating to Indigenous Land Corporation are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2 Agency 2010-11 Budget Measures

 

Program 2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2013-14
$'000
Expense measures            
Indigenous Land Corporation - new funding arrangements 1.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Total expense measures            
Administered   - - - - -
Departmental   - - - - -
Total   - - - - -

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Section 2: Outcome and planned performance

2.1 Outcome and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which the government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of ILC in achieving government outcomes.

Outcome 1

Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

Outcome 1 strategy

The statutory purpose of the ILC is to assist Indigenous people to acquire and manage land to achieve economic, environmental, social and cultural benefits.

The National Indigenous Land Strategy 2007-12 states that the ILC will assist with the acquisition and management of land-based projects that achieve the following priorities.

Deliver socio-economic development outcomes for Indigenous people

The ILC Board has prioritised training participation and employment creation as key indicators for measuring progress in achieving socio-economic development and will call for applications that achieve these outcomes. In 2010-11, the ILC will continue to operate employment and training projects on agricultural and tourism businesses to host Indigenous trainees and transition them into employment.

Provide Indigenous youth access to education

The ILC is working in collaboration with DEEWR and FaHCSIA to acquire land and build hostels to enable Indigenous secondary students in regional and remote Australia to access education. In 2010-11, the National Centre for Indigenous Excellence will be operated in Redfern, Sydney, to provide access to a range of educational, cultural, sporting and social services, and short-stay accommodation facilities for up to 5,000 Indigenous youth from remote and regional Australia.

Assist Indigenous landholders to sustainably manage and use their land

The ILC continues to commit resources to bring Indigenous-held land back into production and to increase the capacity of Indigenous landholders to sustainably manage their land. Support is provided through a range of mechanisms, including regional collaborations, property infrastructure development, and property planning and training projects.

Protect and maintain land with cultural and environmental values

The ILC recognises the importance of land for cultural identity. Indigenous organisations can apply for assistance with land acquisition or management to protect and maintain cultural and environmental heritage values. The ILC collaborates with the Department of the Environment, Water, Heritage and the Arts to expand its Indigenous Protected Areas program and to assist Indigenous groups to acquire land under the National Reserve System program.

Indigenous owned or controlled land is included in theOvercoming Indigenous Disadvantage report (2009) as an indicator of economic participation and development and of the social and cultural relationship between Indigenous people and their land. In 2008, Indigenous owned or controlled land comprised 17.3 per cent of the area of Australia (excluding native title lands). Approximately 4.4 per cent of Indigenous-held land in Australia has been acquired by the ILC.

In achieving its outcomes, the ILC will build a secure and sustainable land base now and for future generations. Achievements will also contribute to the following closing the gap targets:

  • halving the gap in employment outcomes between Indigenous and non-Indigenous Australians within a decade
  • halving the gap for Indigenous students in Year 12 attainment or equivalent attainment rates by 2020.
Outcome expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.



Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 1.1: Assistance in the acquisition and management of an Indigenous land base    
Revenue from Government
Special Accounts
- 45,000
Revenues from other independent sources 13,205 10,539
Total for Program 1.1 13,205 55,539
Outcome 1 Totals by resource type    
Revenue from Government
Special Accounts
- 45,000
Revenues from other independent sources 13,205 10,539
Total expenses for Outcome 1 13,205 55,539
  2009-10 2010-11
Average Staffing Level (number) 207 213

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Average staffing levels include the ILC and the ILC's wholly owned subsidiaries, National Indigenous Pastoral Enterprises Pty Ltd. (NIPE) and the National Indigenous Centre for Indigenous Excellence Pty Ltd (NCIE). NIPE employs staff engaged on ILC owned and leased properties as part of the ILC's land management function. The split between the entities is as follows:


  2009-10 2010-11
ILC 88 90
NIPE 117 120
NCIE 2 3

Contributions to Outcome 1

Program 1 Acquisition and management of an Indigenous land base

Program 1 objective

To assist in the acquisition and management of an Indigenous land base

Program component objectives

Socio-economic development

  • To acquire and grant land to Indigenous organisations to enable Indigenous people to achieve training and employment outcomes
  • To operate agricultural and tourism businesses that train Indigenous people and transition them to secure jobs

Education

  • To collaborate with other agencies to acquire land, and/or establish student hostels on Indigenous-held land, to assist secondary students to gain access to education
  • To acquire land or assist with land management to provide educational, leadership and sporting opportunities to young Indigenous people through ILC-initiated projects

Sustainable management of land

  • To provide funding assistance to Indigenous landholders seeking to improve management of their land
  • To provide training and property planning assistance to build the capacity of Indigenous landholders
  • To collaborate with other agencies and industry partners to implement regional projects that build the capacity of Indigenous landholders to sustainably manage land.

Cultural and environmental heritage protection

  • To acquire and grant land to Indigenous organisations for the purposes of environmental heritage protection and maintenance of culture
  • To provide land management assistance to Indigenous landholders to support them in protecting and maintaining cultural and environmental heritage
Program 1 expenses

Since 2004, the ILC has operated with a fluctuating annual income due to an anomaly in a formula in the ATSI Act. Accordingly, in 2009-10 expenditure is projected to be greater than the revenue from the Land Account. This will be managed through the use of accrued cash reserves. The Government is looking to resolve this issue through minor legislative amendments, which are currently before parliament. The legislative amendment will provide the ILC with a minimum annual income of $45 million indexed per annum from 2010-11.


 

('000)

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Expenses not requiring appropriation in the Budget year 53,077 55,600 55,928 55,200 56,283
Total program expenses 53,077 55,600 55,928 55,200 56,283
Program 1 deliverables

The ILC assists Indigenous corporations to acquire land, and assists Indigenous landholders with projects on Indigenous-held land. The ILC offers a number of assistance types, described below as program deliverables and services.


 

Deliverables

2009-10
Revised budget
2010-11
Budget
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Properties acquired for socio- economic devleopment and cultural and environmental heritage protection 6 6 6 6 6
Properties granted 15 15 10 10 10
Employment and training projects implemented on ILC agricultural and tourism businesses 15 15 15 15 15
Properties acquired and/or secondary student hostels established - 1 2 1 -
Regional land management projects implemented 15 15 15 15 15
Property-based, property planning and training land managemen projects assisted 30 30 30 30 30

Program 1 key performance indicators

Participation in training and employment are the key indicators used for measuring progress in achieving socio-economic development. To recognise its relative contribution to the benefits delivered, the ILC counts those people it directly employs and hosts on its businesses separately from those jobs it has enabled through acquisition of land or land management assistance.

To measure progress in achieving access to education, a KPI that specifically relates to the construction of hostels in regional Australia will be used.

Indigenous organisations apply to the ILC for assistance in protecting the cultural and environmental values of land. This is measured through the proportion of ILC's total projects, rather than a target number of properties.


 

Key performance indicators

2009-10
Revised budget
2010-11
Budget target
2011-12
Forward year 1
2012-13
Forward year 2
2013-14
Forward year 3
Total number of Indigenous staff employed directly through ILC agricultural and tourism businesses 128 178 241 241 241
Total number of Indigenous trainees hosted through ILC agricultural and tourism businesses 190 200 240 240 240
Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects 300 300 300 300 300
Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects 600 600 600 600 600
Increase in the number of Indigenous youth in regional Australia accessing education through hostels established by the ILC and other agencies - 40 200 240 240
Total number of Indigenous-held properties with improved land management 140 100 100 100 100
Proportion of ILC-assisted projects that protected cultural and envrionmental heritage values or maintained culture 25% 25% 25% 25% 25%
Proportion of projects that were collaborative with and leveraged funding from other agencies 66% 66% 66% 66% 66%

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the Budget year 2010-11. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

ILC has no administered funds in the 2010-11 Budget.

3.1.2 Special accounts

ILC has no special accounts in the 2010-11 Budget.

3.1.3 Australian Government Indigenous expenditure


Table 3.1.3: Australian Government Indigenous expenditure

Outcome

Appropriations

  Other Total Program
Bill No. 1
$'000
Bill No. 2
$'000
Special approp.
$'000
Total approp.
$'000

$'000

$'000
Indigenous Land Corporation                
Outcome 1              
Administered 2010-11 - - - - - -  
Administered 2009-10 - - - - - -  
Departmental 2010-11 - - - - 55,539 55,539 1
Departmental 2009-10 - - - - 13,205 13,205 1
Total outcome 2010-11 - - - - 55,539 55,539  
Total outcome 2009-10 - - - - 13,205 13,205  
Total administered 2010-11 - - - - - -  
Total administered 2009-10 - - - - - -  
Total departmental 2010-11 - - - - 55,539 55,539  
Total departmental 2009-10 - - - - 13,205 13,205  
Total AGIE 2010-11 - - - - 55,539 55,539  
Total AGIE 2009-10 - - - - 13,205 13,205  

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3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

ILC has no differences in agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

Until 2003-04, ILC received an annual allocation from the Land Account according to a formula specified in section 193A of the ATSI Act. From 2004-05 to 2009-10, it received the 'realised real return' from the Land Account (s. 193C). From 2010-11, in accordance with a legislative change currently before parliament, the ILC will receive a minimum of $45 million indexed per annum from the Land Account.

Estimated payments from the Land Account from 2009-10 forward have been provided by FaHCSIA, which is responsible for the administration of the Land Account.

The total resources for the ILC's Outcome include the income from the Land Account, and represent the funds available to ILC to carry out its legislated functions.

Under its legislation, ILC has the flexibility to invest funds and to roll over funds not expended in previous years.

Under section 191H of the ATSI Act, ILC has the specific power to invest its moneys. In addition, section 193K of the ATSI Act specifically exempts ILC from section 18(3) of theCommonwealth Authorities and Companies Act 1997 (CAC Act). That section of the CAC Act deals with allowable investments. Earnings on these investments are represented in the budgeted departmental comprehensive income statement.

Under its legislation, ILC acquires land for the specific purpose of granting an interest in that land to an Aboriginal or Torres Strait Islander corporation. ILC capitalises the land on purchase and makes an immediate provision for the grant equivalent to the purchase price. In the budgeted departmental comprehensive income statement, the expenses associated with the purchase and grant of the land are recognised in the period in which the land is purchased. Expenses associated with land management projects are recognised in the period in which the expenditure is incurred.

ILC also holds properties for granting that have significant livestock on them. In accordance with Australian Accounting Standards, ILC values the livestock on a market-to-market basis. Accordingly, the change in market value in any given period is recognised in the budgeted departmental comprehensive income statement.

3.2.3 Budgeted financial statements tables

Table 3.2.1 comprehensive income statement (showing net cost of services) (for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
EXPENSES          
Employee benefits 10,452 11,288 12,190 13,043 13,695
Supplier expenses 41,125 42,812 42,238 40,657 41,088
Grants          
Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500
Finance costs          
Write-down and impairment of assets          
Losses from asset sales          
Other          
Total expenses 53,077 55,600 55,928 55,200 56,283
LESS:          
OWN-SOURCE INCOME          
Revenue          
Sale of goods and rendering of services          
Fees and fines          
Interest 9,099 6,433 5,832 4,000 4,000
Dividends          
Rental income          
Royalties          
Other 4,106 4,106 4,106 4,106 4,106
Total revenue 13,205 10,539 9,938 8,106 8,106
Gains          
Sale of assets          
Other          
Total gains - - - - -
Total own-source income 13,205 10,539 9,938 8,106 8,106
Net cost of (contribution by) services (39,872) (45,061) (45,990) (47,094) (48,177)
Revenue from Government - 45,000 45,990 47,094 48,177
Surplus (Deficit) (39,872) (61) - - -
Surplus (Deficit) attributable to the Australian Government (39,872) (61) - - -
OTHER COMPREHENSIVE INCOME          
Changes in asset revaluation reserves - - - - -
Total other comprehensive income - - - - -
Total comprehensive income (39,872) (61) - - -
Total comprehensive income attributable to the Australian Government (39,872) (61) - - -

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS          
Financial assets          
Cash and equivalents 55,531 55,531 55,531 55,531 55,531
Trade and other receivables 3,836 3,836 3,836 3,836 3,836
Investments accounted for under the equity method - - - - -
Other investments 103,090 103,029 103,029 103,029 103,029
Tax assets - - - - -
Other 934 934 934 934 934
Total financial assets 163,391 163,330 163,330 163,330 163,330
Non-financial assets          
Land and buildings          
Property, plant and equipment 74,946 73,946 72,946 72,946 72,946
Investment properties - - - - -
Intangibles 360 360 360 360 360
Inventories 151,014 173,814 196,614 196,614 196,614
Other 38,517 39,517 40,517 40,517 40,517
Total non-financial assets 264,837 287,637 310,437 310,437 310,437
Assets held for sale 464 464 464 464 464
Total assets 428,692 451,431 474,231 474,231 474,231
LIABILITIES          
Payables          
Suppliers 8,661 8,661 8,661 8,661 8,661
Grants - - - - -
Dividends - - - - -
Other 23,286 46,086 68,886 68,886 68,886
Total payables 31,947 54,747 77,547 77,547 77,547
Interest bearing liabilities          
Loans - - - - -
Leases - - - - -
Deposits - - - - -
Other - - - - -
Total interest bearing liabilities - - - - -
Provisions          
Employee provisions 2,535 2,535 2,535 2,535 2,535
Other 128,045 128,045 128,045 128,045 128,045
Total provisions 130,580 130,580 130,580 130,580 130,580
Liabilities included in disposal groups held for sale - - - - -
Total liabilities 162,527 185,327 208,127 208,127 208,127
Net assets 266,165 266,104 266,104 266,104 266,104
EQUITY*          
Parent entity interest          
Contributed equity - - - - -
Reserves 3,303 3,303 3,303 3,303 3,303
Retained surplus
(accumulated deficit)
262,862 262,801 262,801 262,801 262,801
Total equity 266,165 266,104 266,104 266,104 266,104

* 'Equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.


Table 3.2.3: Budgeted departmental statement of cash flows (Budget year 2010-11)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 3,500 3,500 3,500 3,500 -
Appropriations - - - - -
Interest 9,099 6,433 5,832 4,000 4,000
Dividends - - - - -
Net GST received 4,526 4,432 3,499 3,382 -
Other 606 45,606 46,596 47,700 52,283
Total cash received 17,731 59,971 59,427 58,582 56,283
Cash used          
Employees 10,452 11,289 12,190 13,043 13,695
Suppliers 46,600 48,193 46,687 43,889 41,088
Borrowing costs - - - - -
Net GST paid - - - - -
Other - - - - -
Total cash used 57,052 59,482 58,877 56,932 54,783
Net cash from (used by) operating activities (39,321) 489 550 1,650 1,500
INVESTING ACTIVITIES          
Cash received          
Proceeds from sales of property, plant and equipment - - - - -
Proceeds from sales of financial instruments - - - - -
Investments 39,871 61 - - -
Other - - - - -
Total cash received 39,871 61 - - -
Cash used          
Purchase of property, plant and equipment 550 550 550 1,650 1,500
Purchase of financial instruments - - - - -
Investments - - - - -
Other - - - - -
Total cash used 550 550 550 1,650 1,500
Net cash from (used by) investing activities 39,321 (489) (550) (1,650) (1,500)
FINANCING ACTIVITIES          
Cash received          
Contributed equity - - - - -
Proceeds from issuing financial instruments          
Other - - - - -
Total cash received - - - - -
Cash used          
Repayments of borrowings - - - - -
Dividends paid - - - - -
Other - - - - -
Total cash used - - - - -
Net cash from (used by) financing activities -   - - -
Net increase (decrease) in cash held - - - - -
Cash and cash equivalents at the beginning of the reporting period 55,531 55,531 55,531 55,531 55,531
Effect of exchange rate movements on cash and cash equivalents at the beginning of reporting period - - - - -
Cash and cash equivalents at the end of the reporting period 55,531 55,531 55,531 55,531 55,531

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of changes in equity - summary of movement (Budget year 2010-11)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2010          
Balance carried forward from previous period 262,862 3,303 - - 266,165
Adjustment for changes in accounting policies - - - - -
Adjusted opening balance 262,862 3,303 - - 266,165
Comprehensive income          
Comprehensive income recognised directly in equity: - - - - -
Gain/loss on revaluation of property - - - - -
Sub-total comprehensive income - - - - -
Surplus (deficit) for the period (61) - - - (61)
Total comprehensive income recognised directly in equity (61) - - - (61)
Transactions with owners          
Distributions to owners          
Returns on capital - - - - -
Dividends          
Returns of capital - - - - -
Restructuring          
Other          
Contributions by owners          
Appropriation (equity injection) - - - - -
Appropriation (departmental capital budget) - - - - -
Other          
Sub-total transactions with owners - - - - -
Transfers between equity components - - - - -
Estimated closing balance
as at 30 June 2011
262,801 3,303 - - 266,104

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 (DCB) - - - - -
Equity injections - Bill 2 - - - - -
Loans - Bill 2 - - - - -
Previous years' outputs - Bill 2 - - - - -
Departmental capital - special appropriation (Dept only)* - - - - -
Total capital appropriations - - - - -
Total new capital appropriations          
Represented by:          
Purchase of non-financial assets - - - - -
Annual finance lease costs - - - - -
Other Items - - - - -
Total Items - - - - -
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations - - - - -
Funded by capital appropriation - DCB1 - - - - -
Funded by finance leases - - - - -
Funded internally from departmental resources2 500 500 500 1,500 1,500
TOTAL 500 500 500 1,500 1,500
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 500 500 500 1,500 1,500
less additions by finance lease - - - - -
less additions by creditors / borrowings - - - - -
plus borrowing / finance costs - - - - -
plus Annual finance lease costs - - - - -
less Gifted assets - - - - -
less s. 32 / restructuring - - - - -
Total cash used to acquire assets 500 500 500 1,500 1,500

Prepared on Australian Accounting Standards basis.


Table 3.2.6: Statement of asset movements (2010-11)

 

Other property,
plant & equipment
$'000
Intangibles

$'000
Total

$'000
As at 1 July 2010      
Gross book value 82,758 645 83,403
Accumulated depreciation/amortisation and impairment (7,812) (265)  
Opening net book balance 74,946 (265) 74,681
CAPITAL ASSET ADDITIONS      
Estimated expenditure on new or replacement assets      
By purchase - appropriation equity      
By purchase - appropriation ordinary annual services      
By purchase - donated funds      
By purchase - other 500   500
By finance lease      
Assets received as gifts/donations      
From acquisition of entities or operations (including restructuring)      
Total additions 500 - 500
Other movements      
Assets held for sale or in a disposal group held for sale      
Depreciation/amortisation expense (1,500) (1,500)  
Disposals      
From disposal of entities or operations(including restructuring)      
Other   (20) (20)
As at 30 June 2011      
Gross book value 83,258 625 83,883
Accumulated depreciation/amortisation and impairment (9,312) (265) (9,577)
Closing net book balance 73,946 360 74,306

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

Departmental financial statements and schedule of administered activity

ILC has no administered items and does not receive appropriations.

Asset valuation

From 1 July 2005, in accordance with Australian Equivalents of International Financial Reporting Standards, government agencies and authorities are required to use the fair value basis to measure property, plant and equipment.

Summary of significant accounting policies

Basis of accounting

The budgeted financial statements are a special purpose financial report.

Rounding

The budgeted financial statements have been rounded to the nearest thousand dollars.

Principles of consolidation

The consolidated budgeted financial statements are those of the economic entity, comprising ILC (the parent entity) and its wholly owned subsidiaries.

Investments

Investments are recorded at their current cash-based valuation at the reporting date. Section 193K of theAboriginal and Torres Strait Islander Act 2005 states that the investment restrictions in section 18(3) of theCommonwealth Authorities and Companies Act 1997 do not apply to ILC.

Inventory held for distribution

Inventory held for distribution represents properties purchased for the purpose of transfer to appropriate organisations in line with the objectives of ILC and properties transferred to ILC as a result of theAboriginal and Torres Strait Islander Commission Amendment Act 2004. Land purchases (including the related plant, equipment and livestock, acquisition and holding costs) are capitalised on purchase and classified as inventory. A provision is raised in the budgeted departmental income statement for the full cost of land purchases (excluding livestock), representing the sacrifice of future benefits embodied in the assets.

Biological assets

Livestock held for trading purposes are classified as biological assets. Livestock are valued at market value as at the reporting date.

Recognition of income

Receipts from the Land Account are recognised at the time ILC becomes entitled to receive the revenue, and have been classified for the purpose of this report as 'Revenues from Land Account'.

Economic dependency

ILC is dependent on the realised real return from the Land Account in accordance with section 193C of theAboriginal and Torres Strait Islander Act 2005.

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Torres Strait Regional Authority

Section 1: Agency overview and resources

Section 2: Outcomes and planned performance

Section 3: Explanatory tables and budgeted financial statements

Section 1: Agency overview and resources

The Torres Strait Regional Authority's (TSRA) outcome is:

Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture

1.1 Strategic direction statement

The TSRA is a Commonwealth statutory authority which was established in 1994 under the Aboriginal and Torres Strait Islander Commission Act 1989, now known as the Aboriginal and Torres Strait Islander Act 2005. It is the peak Commonwealth representative body for Torres Strait Islander and Aboriginal people living in the Torres Strait.

The TSRA also performs separate functions under the Native Title Act 1993 as the Native Title Representative Body for the Torres Strait Region.

The TSRA is required under section 142D of the Aboriginal and Torres Strait Islander Act 2005 to formulate and implement a plan to guide the progress of the Torres Strait Region. This plan, known as the Torres Strait Development Plan, is updated every four years to be consistent with the term of the TSRA Board.

In 2008-09 the TSRA finalised the Torres Strait Development Plan 2009-13, the fourth development plan since the establishment of the TSRA. The plan outlines seven new or revised TSRA program components (Economic Development; Culture, Art and Heritage; Native Title; Environmental Management; Governance and Leadership; Healthy Communities; Safe Communities), each of which has a number of desired outcomes and associated benefits.

The Development Plan and its program components have been informed and driven by the Torres Strait and Northern Peninsula Area Regional Plan 2009-29 and the goals and aspirations of the residents of the Torres Strait. The new TSRA vision, which is shared by both the Regional Plan and the Development Plan, is:

  • ‘Empowering our people, in our decision, in our culture, for our future'
  • ‘Ngalpun yangu kaaba woeydhay, a ngalpun muruygaw danalagan mabaygal kunakan palayk, bathayngaka' (KALA LAGAU YA)
  • ‘Buaigiz kelar obaiswerare, merbi mir apuge mena obakedi, muige merbi areribi tonarge, ko merbi keub kerkerem' (MERIAM MIR)
  • ‘Ngalpan moebaygal thoepoeriwoeyamoeyn, ngalpan ya kuduthoeraynu, ngalpan igililmaypa, sepa setha wara goeygil sey boey wagel' (KALA KAWAU YA)

The Development Plan has also been designed to align with the COAG Building Blocks and to contribute to the Indigenous-specific outcomes of the National Partnership Agreements as outlined in the National Indigenous Reform Agreement.

As the regional Native Title Representative Body (NTRB), the TSRA will continue to direct efforts in 2010-11 to the Regional Sea Claim. The determination will have long-term implications for the region, including the delivery of TSRA program components, as well as short-term implications for TSRA's NTRB activities.

Given its role as the core funding provider for the Community Development Employment Projects (CDEP) Program in the region, the TSRA will be central to the rollout of CDEP reform measures in 2010-11 and beyond.

The Torres Strait Ranger Project will continue to be rolled out in seven Torres Strait communities by the TSRA's Land and Sea Management Unit. This dedicated ranger project will play a central role in the TSRA's Environmental Management Program component, as it will be used to deliver a variety of land and sea management activities identified in the Land and Sea Management Strategy, the Regional Investment Strategy for the Torres Strait, and the Marine Turtle and Dugong Management Plan for each of the participating communities.

The Major Infrastructure Program, which delivers environmental health infrastructure to remote island communities, will move into its second stage of Phase 4 works, due for completion in 2011. Works will include the completion of reticulated sewerage to all 15 outer island communities, and the extension of sewerage reticulation and pumping to unserviced or new housing allotments.

A key area of externally focused activity for the TSRA in 2010-11 will be continuing to drive the regional planning process, including formalisation of an Integrated Service Delivery Agreement, to be signed by governments at all levels working in the region, which will aim to achieve coordinated, integrated delivery of services. The TSRA will also dedicate considerable time to engaging with local stakeholders, informing them of the new Development Plan and associated changes, and supporting their adaptation to the new environment.

Distance and transport constraints continue to affect the costs of providing fair and equitable access to government services, including service delivery and the cost of living for all residents of the region, and are slowing the speed of progress in closing the gap in the Torres Strait. Land tenure is another constant factor affecting all elements of program and program component delivery in the region.

The environmental resource capacity of the region and challenges associated with climate change are considerations and concerns becoming more prominent in, and fundamental to, the design and delivery of TSRA program components. The TSRA's Environmental Management Program component will be increasing its efforts to gather data and raise awareness of climate change and sea-level rise impacts in the region, and will advocate for and support mitigation and adaptation efforts.

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1.2 Agency resource statement

The agency resource statement details the resourcing for TSRA. Table 1.1 outlines the total resourcing available from all sources for the 2010-11 Budget year, including funding through Appropriation Bill (No. 1) 2010-11, special appropriations and special accounts.

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.


Table 1.1: Torres Strait Regional Authority resource statement-Budget estimates for 2010-11 as at Budget May 2010

Source

Estimate of prior year amounts available in
2010-11
$'000
+ Proposed at Budget
2010-11
$'000
= Total estimate
2010-11
$'000
Actual available appropriation
2009-10
$'000
Opening balance/Reserves at bank 26,075   -   26,075 -
REVENUE FROM GOVERNMENT            
Ordinary annual services1            
Outcome 1: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture -   69,758   69,758 67,391
             
Total ordinary annual services     69,758   69,758 67,391
             
Total funds from government     69,758   69,758 67,391
FUNDS FROM OTHER SOURCES            
Interest -   800   800 800
Other -   5,585   5,585 5,585
Total -   6,385   6,385 6,385
             
Total net resourcing for agency 26,075   76,143   76,143 73,776
  1. Appropriation Bill (No. 1) 2010-11.

Note: The Torres Strait Regional Authority is not directly appropriated, as it is a CAC Act body. Appropriations are made to FaHCSIA and are then paid to the TSRA, and are considered ‘departmental' for all purposes.

All figures are GST exclusive.

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1.3 Budget Measures

Budget measures relating to the Torres Strait Regional Authority are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2: Agency 2010-11 Budget measures

 

Program 2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
2013-14
$'000
Expense measures            
Community Development Employment Projects - indexation reform 1.1          
Administered expenses   - - - - -
Departmental expenses   - -24 -37 -205 -268
Total   - -24 -37 -205 -268
Reform of Community Development Employment Projects (CDEP) program in the Torres Strait 1.1          
Administered expenses   - - - - -
Departmental expenses   - 528 -5,626 -17,988 -17,737
Total   - 528 -5,626 -17,988 -17,737
Total expense measures            
Administered   - - - - -
Departmental   - 504 -5,663 -18,193 -18,005
Total   - 504 -5,663 -18,193 -18,005

Prepared on a Government Financial Statistics (fiscal) basis

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Section 2: Outcome and planned performance

2.1 Outcome and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the TSRA in achieving government outcomes.

Outcome 1

Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture

Outcome 1 strategy

The TSRA is continuing with the implementation phase of its new and revised program components, which are focused on the delivery of outcomes and realisation of measurable benefits. The program components aim to contribute to achieving the goals of the Regional Plan 2009-29 and to closing the gap in Indigenous disadvantage.

The Development Plan is an action plan with a focus on delivering outcomes and benefits for the Indigenous people of the Torres Strait Region. This and subsequent development plans will contribute to achieving the outcome statement for the TSRA.

The program components will be formally reviewed in conjunction with the production of the next plan (in 2013). The Development Plan will not be achieved fully within a four-year period, and reflects the Australian Government's long-term goals of generational change and impact.

The Torres Strait Development Plan program components are:

  • Economic Development
  • Culture, Art and Heritage
  • Native Title
  • Environmental Management
  • Governance and Leadership
  • Healthy Communities
  • Safe Communities.
Outcome expense and resource statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by program.


Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome 1: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture

2009-10
Estimated actual expenses
$'000
2010-11
Estimated expenses
$'000
Program 1: Torres Strait Regional Development    
Revenue from government
Ordinary annual services (Appropriation Bill No. 1)
67,391 69,758
Revenues from other independent sources 6,385 6,385
Total for Program 1 73,776 76,143
Outcome 1 Totals by resource type    
Revenue from government
Ordinary annual services (Appropriation Bill No. 1)
67,391 69,758
Revenues from other independent sources 6,385 6,385
     
Total expenses for Outcome 1 73,776 76,143
  2009-10 2010-11
Average staffing level (number) 79 86

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Contributions to Outcome 1

Program 1.1 Torres Strait Regional Development

Program 1.1 objective

In November 2008, the Torres Strait Regional Authority Board endorsed the following Outcome statement: 'Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.’

Program 1.1 expenses

Commencing July 2010, it is proposed to align the CDEP program in the Torres Strait with the national program through a two-stage approach: Stage 1 commences on 1 July 2010 and Stage 2 commences on 1 July 2011.

The reform program will affect 1400 current CDEP participants and will deliver a Work Readiness Service, Community Development and Commonwealth Jobs Package. The Government has committed $53 million over two years for 2010-11 and 2011-12 towards closing the gap in Indigenous Employment Outcomes by improving access to reformed employment services, building work readiness skills for individuals and enhancing community capacity to engage and develop economically.

The Government has also committed $14 million for 2010-11 to further the closing of the gap in environmental health infrastructure within the Torres Strait Region.

Program 1.1 components
Economic Development program component objective

The TSRA will take the lead as a 'Whole of Region Economic Development Solution Broker'. In this role, the TSRA will work in partnership with other government and non-government organisations and individual communities to advance this regional goal and ensure the efficient use of resources. It will aim to:

  • stimulate economic development across the region
  • advance business skills and align training initiatives with regional employment opportunities
  • advance Indigenous ownership and management of industries and enterprises.
Culture, Art and Heritage program component objective

The TSRA will form a Culture, Art and Heritage Program to support the regional outcomes. The aims of the program are to:

  • protect culturally significant sites and artefacts to ensure their longevity
  • revitalise traditional cultural practices (art, dance, language, storytelling) among communities.
Native Title program component objective

To provide high-quality and culturally appropriate professional services to native title holders and claimants in the Torres Strait Region, to facilitate the securing of legal recognition of native title to land and waters in the Torres Strait and thereby improve opportunities for improved economic, cultural and social participation for Torres Strait Islander and Aboriginal people living in the region.

This program component will:

  • assist traditional owners to obtain legal recognition of native title over land and sea in the Torres Strait Region
  • protect and manage native title rights
  • build the capacity of native title Prescribed Bodies Corporate.
Environmental Management program component objective

To provide services and support to promote sustainable Natural Resource Management in the Torres Strait Region. This program component will:

  • increase utilisation of renewable energies
  • reduce waste management issues and environmental impact
  • manage effects of climate change, specifically tidal inundation and erosion
  • improve land management for future generations
  • promote sustainable management of natural resources
Governance and Leadership program component objective

To help maintain and improve the leadership and governance skills of current and future leaders of the Torres Strait to support development planning and coordination of integrated government service delivery in the Torres Strait Region.

This program component will:

  • involve Indigenous leaders in legislative processes, policies and priorities in terms of setting direction for integrated planning and service delivery
  • involve Indigenous leaders in monitoring progress towards reaching regional goals and outcomes
  • develop the capacity of current and future leaders across the region and support effective communication between the community and organisations involved in the region.
Healthy Communities program component objective

The TSRA's Healthy Communities Program aims to:

  • monitor and provide strategic policy advice regarding health service delivery in the region and contribute to ensuring that health service levels are equal to the national standard
  • improve the health of Indigenous people living in the region through proactive healthy living initiatives
  • increase Indigenous home ownership.
Safe Communities program component objective

The TSRA will contribute to the safety of communities by:

  • contributing to the development of standards for the provision of all mainstream social services and facilities, including emergency response services, through engagement with responsible agencies
  • undertaking a policy advocacy, monitoring and supporting role with respect to mainstream services, advocating and acting as a solution broker on behalf of communities and the region, using integrated service delivery forums
  • providing direct funding and resource support for some social support services, and infrastructure, facilities and equipment, that contribute to improved safety and accessibility for communities and families (the TSRA will not provide mainstream social or community services).
Program 1.1 deliverables

Over the past year, the TSRA has undertaken a coordination role in bringing together key government agencies to work in partnership towards integrated planning and improved service delivery. The results of those consultations have been refined by elected representatives of TSRA and local government councils into a regional vision and goals statement, the Torres Strait and Northern Peninsular Area Regional Plan 2009-2029. The Regional Plan provides regional goals to guide the strategic policy of all government service providers.

The TSRA is addressing these goals through an integrated portfolio of seven programs as set out on our current 2009-2013 Development Plan.

The program outcomes are all congruent with TSRA's outcome statement. Performance indicators have been identified to show whether progress is being made in achieving outcomes and benefits. The benefits are measurable and meaningful improvements that result from outcomes. Deliverables for each program component as at the publication date of these PB Statements are:

Economic Development program component
  • Increased number of Torres Strait Islander and Aboriginal individuals in non Community Development Employment Projects (CDEP) employment
  • Increased number of approved TSRA loans
  • Increase in the annual total catch of marine resources (finfish and Kaiar (tropical rock lobster) by Torres Strait Islander and Aboriginal people
  • Increase in the participation of Torres Strait Islander and Aboriginal people in industry training
Culture, Art and Heritage program component
  • Increased number of professionally active Torres Strait Islander and Aboriginal artists and active art centres in the region
  • Increased capacity and capability to facilitate cultural initiatives and projects
  • Increased profile of Torres Strait Islander and Aboriginal arts and culture
  • Increased community involvement in the preservation of cultural heritage
Native Title program component
  • Provide legal, policy and advocacy support for Prescribed Bodies Corporate
  • Support native title activities, including determination of claims and provision of legal advice and support
  • Negotiate and execute Indigenous Land Use Agreements and other statutory agreements and provide legal advice and support in relation to future Acts
Environmental Management program component
  • Continue the existing Fisheries Project
  • Continue to implement the Land Project
  • Continue to implement a Garden and Horticulture Project
  • Continue to Implement a Biodiversity Project
  • Continue to implement an Invasive Species Project
  • Continue and expand the Land and Sea Rangers Project
  • Continue to implement a Climate Change / Coastal Erosion Project
  • Strengthening cultural heritage
  • Information sharing and research activities
Governance and Leadership program component

Continue to deliver:

  • an Integrated Service Delivery Project
  • a Governance and Leadership Capacity Building Project
  • a Regional Communication Project
Healthy Communities program component

Healthy homes initiatives:

  • Funding contributions towards community, market garden and horticulture initiatives in conjunction with the Environmental Management Program
  • Engaging with food suppliers/retailers to explore improved healthy food options

Healthy lifestyles initiatives:

  • Monitoring and provision of strategic policy direction for health, including advice to integrated service delivery health-related working groups
  • Funding contributions towards health education initiatives in such areas as physical education, nutrition, obesity, diabetes programs, motivation, substance abuse and sport and recreation
  • Funding contributions towards sport and recreation minor infrastructure

Improved housing and home ownership projects and initiatives:

  • Funding contributions towards essential services and infrastructure to support healthy living environments
  • Land tenure resolution through Indigenous Land Use Agreements and other formal agreements in conjunction with the Native Title and Environmental Management programs
Safe Communities program component

Social services initiatives:

  • Developing a service map of social support services in the Torres Strait
  • Funding contributions made to proactive and reactive social service providers supporting Torres Strait Islander and Aboriginal women, men and children
  • Contributing to the development of standards for provision of services and facilities for safe and healthy communities through engagement with responsible agencies

Safe and accessible community initiatives:

  • Contributing towards capacity building and training initiatives for social service providers, including emergency services
  • Funding contributions to services and facilities that contribute to community accessibility and safety standards
  • Monitoring and advocating for effective land and sea communications systems
Program 1.1 key performance indicators
  • Number of CDEP participants who have moved into non-CDEP employment
  • Number of Indigenous artists and cultural practitioners supported
  • Number of native title determinations, negotiated and registered Indigenous Land Use Agreements, and number of future act notifications facilitated in the Torres Strait
  • Number of communities participating in natural resource management activities
  • Number of ranger groups in place to assist communities to carry out land, sea and cultural resource management activities
  • Number of integrated service delivery meetings held
  • Number of environmental health infrastructure projects completed
  • Number of social support services active in the Torres Strait
  • Number of people of all ages participating in organised healthy activities

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2010-11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory Tables

3.1.1 Movement of administered funds between years

The TSRA does not have any administered funds.

3.1.2 Special accounts

The TSRA does not have any special accounts

3.1.3 Australian Government Indigenous expenditure


Table 3.1.3: Australian Government Indigenous expenditure

Outcome

Appropriations

  Other Total Program
Bill No. 1$
$'000
Total approp.
$'000

$'000

$'000
Torres Strait Regional Authority            
Outcome 1            
Departmental 2010-11 69,758 69,758   6,385 76,143 1
Departmental 2009-10 67,391 67,391   6,385 73,776 1
Total outcome 2010-11 69,758 69,758 - 6,385 76,143 -
Total outcome 2009-10 67,391 67,391 - 6,385 73,776 -
Total departmental 2010-11 69,758 69,758 - 6,385 76,143 -
Total departmental 2009-10 67,391 67,391 - 6,385 73,776 -
Total AGIE 2010-11 69,758 69,758 - 6,385 76,143 -
Total AGIE 2009-10 67,391 67,391 - 6,385 73,776 -

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3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no differences in the Budget papers and TSRA's PB Statements.

3.2.2 Analysis of budgeted financial statements

Budgeted comprehensive income statement

This statement provides a picture of the expected financial results for the TSRA by identifying full accrual expenses and revenues, which highlights whether the TSRA is operating at a sustainable level. A modest surplus of $609,000 is forecast for the 2010-11 fiscal year.

Budgeted departmental balance sheet

This statement shows the financial position of the TSRA. It helps decision-makers to track the management of assets, liabilities and equity. TSRA's budgeted balance sheet for the fiscal year ending June 2011 shows TSRA forecasting a total assets position $54.8 million and modest liabilities of $8.9 million, resulting in a net asset position of $44.2 million.

Budgeted departmental statement of cash flows

The budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

Predicted departmental cash flows have been adjusted to reflect the anticipated impact on cash after taking into account the forecast movements in the balance sheet and comprehensive income statement. The agency is forecasting a favourable cash position of $26.7 million for the fiscal year ending June 2011. The favourable cash position is due to the timing across fiscal years between receipt of income and program expenditure commitments.

3.2.3 Budgeted financial statements tables


Table 3.2.1 comprehensive income statement (showing net cost of services)
(for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
EXPENSES          
Employee benefits 6,739 7,247 7,216 6,969 6,973
Supplier expenses 8,621 8,650 8,600 8,506 8,506
Grants 57,407 59,237 40,158 27,617 27,817
Depreciation and amortisation 400 400 400 400 400
Total expenses 73,167 75,534 56,374 43,492 43,696
LESS:          
OWN-SOURCE INCOME          
Revenue          
Interest 800 800 800 800 800
Other 5,585 5,585 5,585 5,585 5,585
Total revenue 6,385 6,385 6,385 6,385 6,385
Total own-source income 6,385 6,385 6,385 6,385 6,385
Net cost of (contribution by) services 66,782 69,149 49,989 37,107 37,311
Revenue from government 67,391 69,758 50,598 37,716 37,920
Surplus (Deficit) 609 609 609 609 609
Surplus (Deficit) attributable to the          
Australian Government 609 609 609 609 609
Total comprehensive income attributable to the Australian Government 609 609 609 609 609

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
ASSETS          
Financial assets          
Cash and equivalents 26,075 26,789 27,398 28,007 28,616
Trade and other receivables 7,133 7,133 7,133 7,133 7,133
Investments accounted for under the equity method - - - - -
Other investments - - - - -
Tax assets - - - - -
Other - - - - -
Total financial assets 33,208 33,922 34,531 35,140 35,749
Non-financial assets          
Land and buildings 20,473 20,523 20,223 19,923 19,623
Property, plant and equipment 431 331 631 931 1,231
Other 41 41 41 41 41
Total non-financial assets 20,945 20,895 20,895 20,895 20,895
Total assets 54,153 54,817 55,426 56,035 56,644
LIABILITIES          
Payables          
Suppliers 515 620 620 620 620
Grants 7,976 7,876 7,876 7,876 7,876
Dividends - - - - -
Other 477 477 477 477 477
Total payables 8,968 8,973 8,973 8,973 8,973
Provisions          
Employee provisions 1,569 1,619 1,619 1,619 1,619
Total provisions 1,569 1,619 1,619 1,619 1,619
Total liabilities 10,537 10,592 10,592 10,592 10,592
Net assets 43,616 44,225 44,834 45,443 46,052
EQUITY*          
Parent entity interest          
Contributed equity 32 32 32 32 32
Reserves 9,047 9,047 9,047 9,047 9,047
Retained surplus
(accumulated deficit)
34,537 35,146 35,755 36,364 36,973
Total parent entity interest 43,616 44,225 44,834 45,443 46,052
Total equity 43,616 44,225 44,834 45,443 46,052

* ‘Equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.


Table 3.2.3: Departmental statement of changes in equity-summary of movement (Budget year 2010-11)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2010          
Balance carried forward from          
previous period 34,537 9,047 - 32 43,616
Adjusted opening balance 34,537 9,047 - 32 43,616
Surplus (deficit) for the period 609 - - - 609
Total comprehensive income recognised directly in equity 609 - - - 609
           
Estimated closing balance
as at 30 June 2011
35,146 9,047 - 32 44,225

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
(for the period ended 30 June)

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
OPERATING ACTIVITIES          
Cash received          
Appropriations 67,391 69,758 50,598 37,716 37,920
Interest 800 800 800 800 800
Other 5,585 5,585 5,585 5,585 5,585
Total cash received 73,776 76,143 56,983 44,101 44,305
Cash used          
Employees 6,739 7,197 7,216 6,969 6,973
Suppliers 8,621 8,545 8,600 8,506 8,506
Grants 57,407 59,337 40,158 27,617 27,817
Total cash used 72,767 75,079 55,974 43,092 43,296
Net cash from          
operating activities 1,009 1,064 1,009 1,009 1,009
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 400 350 400 400 400
Total cash used (400) (350) (400) (400) (400)
Net cash from (used by) investing activities (400) (350) (400) (400) (400)
Net increase (decrease) in cash held 609 714 609 609 609
Cash and cash equivalents at the beginning of the reporting period 25,466 26,075 26,789 27,398 28,007
Cash and cash equivalents at the end of the reporting period 26,075 26,789 27,398 28,007 28,616

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2009-10
$'000
Budget estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Forward estimate
2013-14
$'000
PURCHASE OF NON-FINANCIAL          
ASSETS          
Funded internally from departmental resources1 400 350 400 400 400
TOTAL 400 350 400 400 400
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases 400 350 400 400 400
Total cash used to acquire assets 400 350 400 400 400

1 Includes the following sources of funding: annual and prior year appropriations.

Prepared on Australian Accounting Standards basis.


Table 3.2.6: Statement of asset movements (2010-11)

 

Land

$'000
Buildings

$'000
Other property,
Plant & equipment
$'000
Heritage and
cultural assets
$'000
Total

$'000
As at 1 July 2010          
Gross book value 7,365 13,108 856 41 21,370
Accumulated depreciation/amortisation     425   425
Opening net book balance 7,365 13,108 431 41 21,795
CAPITAL ASSET ADDITIONS          
Estimated expenditure on          
new or replacement assets          
By purchase - appropriation equity - 350 - - 350
Total additions - 350 - - 350
Other movements          
Depreciation/amortisation expense - 300 100 - 400
As at 30 June 2011          
Gross book value 7,365 13,458 856 41 21,720
Accumulated depreciation/amortisation   300 525 - 825
Closing net book balance 7,365 13,158 331 41 20,895

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

Basis of accounting

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister's Orders issued by the Minister for Finance and Deregulation.

Amounts in these statements are rounded to the nearest thousand dollars.

Departmental financial statements and schedule to administered activity

Under the Australian Government's financial budget and reporting framework, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the government according to set government directions.

TSRA has no administered items.

Revenue from Government-ordinary annual appropriations

Revenue from Government represents amounts appropriated to fund the TSRA's seven programs, actioned in order to deliver the agency's stated outcome.

Expenses-depreciation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives, using in all cases the straight-line method of depreciation.

Asset valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Financial assets-cash

This includes notes and coins held and deposits at call.

Financial assets-receivables

This includes loans and advances made by the TSRA to clients in the delivery of its programs, in addition to amounts owing to the TSRA for delivery of goods and services. Loans receivable are measured at amortised cost using the effective interest method less impairment.

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Portfolio Budget Statements 2010-11
Glossary

Accrual accounting
System of accounting in which items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.
Accumulated depreciation
The aggregate depreciation recorded for a particular depreciating asset.
Additional Estimates
Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.
Administered funds
Usually, the funds or expenses an agency manages on behalf of the Government.
Administered items
Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency, and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.
Annual appropriation
Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.
Appropriation
An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.
Appropriation Bill (No. 1)
This Bill proposes spending from the CRF for the ordinary annual services of Government. Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 1).
Appropriation Bill (No. 2)
This Bill proposes spending from the CRF for purposes other than the ordinary annual services of Government. Under existing arrangements between the two Houses of Parliament (the ‘Compact’), this Bill includes appropriation funding of administered expenses for new outcomes, for payments to the states and territories, and for departmental or administered capital. Funding for extensions to existing programs can be included in Appropriation Bill (No. 1). Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 2).
Appropriation Bills (Nos. 3 and 4)
If an amount provided in Appropriation Acts (No. 1 or 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or 4). Once these Bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (Nos 3 and 4). However, they are also commonly referred to as the Additional Estimates Bills.
Assets
Future economic benefits controlled by an entity as a result of past transactions or other past events.
Average staffing level
The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.
Capital expenditure
Expenditure by an agency on capital projects, for example purchasing a building.
Commonwealth Authorities and Companies Act 1997
Sets out the financial management, accountability and audit obligations on Commonwealth statutory authorities and companies in which the Commonwealth has at least a direct controlling interest.
Consolidated Revenue Fund (CRF)
The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.
Cross Portfolio Budget Measure
A Budget measure that affects programs administered in a number of portfolios.
Departmental items
Resources (assets, liabilities, revenues and expenses) that agency Chief Executive Officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.
Depreciation
Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.
Employment income
Income that is earned, derived or received from remunerative work undertaken by an employee in an employer-employee relationship or through self-employment.
Equity or Net Assets
Residual interest in the assets of an entity after deduction of its liabilities.
Estimates
An agency’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each output in the Budget, in consultation with the Department of Finance and Deregulation. (See also Forward Estimates and Additional Estimates).
Expenses
Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.
Fair value
The amount for which an asset could be exchanged or a liability settled between knowledgeable and willing parties in an arm’s length transaction.
Financial Management and Accountability Act 1997
The principal legislation governing the proper use and management of public money and public property, and other Commonwealth resources. FMA Regulations and FMA Orders are made pursuant to the Act.
Forward Estimates
The financial statement estimate for the three out years after the budget year.
Grants
Non-reciprocal transfers of economic resources, in which the payer agency does not receive approximately equal value in return.
Key performance indicators
Qualitative and quantitative measures of an output that provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.
Measure
A new policy or savings decision of the Government with financial impacts on the Government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.
Mid Year Economic and Fiscal Outlook
Provides an update of the Government’s budget estimates by examining expenses and revenues year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the Government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.
Operating result
Equals revenue less expenses.
Outcome
The intended result, consequence or impact of government actions on the Australian community.
Outcome statement
Articulates the intended results, activities and target group of an Australian Government agency. An outcome statement serves three main purposes within the financial framework:
  • to explain and control the purposes for which annual appropriations are approved by the Parliament for use by agencies
  • to provide a basis for annual budgeting, including (financial) reporting against the use of appropriated funds
  • to measure and assess agency and program (non-financial) performance in contributing to government policy objectives.
Outputs
The goods and services produced by agencies on behalf of Government for external organisations or individuals. Outputs also include goods and services for other areas of government external to the agency.
Payment accuracy
The FaHCSIA measure of the proportion of current year outlays paid accurately, for use in the financial statements and annual report. The base figure is calculated as the gross value of the fortnightly variation amounts (the amount payments are either increased or reduced by) divided by total fortnightly amounts paid to sampled customers subtracted from 100% to give payment accuracy. This figure is a point in time estimate, so it does not count mispayment for prior periods where the customer is paid accurately at the time of review, but includes all variations regardless of fault. The estimate is weighted by the size of the mispayment; for example, a $0.05 upward variation will not affect the total as much as a $450.00 cancellation.
Performance information
Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them.
Portfolio
A Minister’s area of responsibility as a member of Cabinet. A portfolio consists of one or more Departments of State (Portfolio Departments) and agencies with similar general objectives and outcomes.
Price
The amount the government or community pays for the delivery of agreed outputs.
Primary carer
Defined by the Australian Bureau of Statistics (ABS cat no. 4430.0, p. 77) as a person who provides the most informal assistance, in terms of help or supervision, to a person with one or more disabilities. The assistance has to be ongoing, or likely to be ongoing, for at least six months and be provided for one or more of the core activities (communication, mobility and self care).
Program
An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.
Receipts
The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and Government Business Enterprise dividends received.
Revenue
Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.
Senate Legislation Committee
A body of Senators that examines the use of government funding. Its purpose is to question government officials about the estimates and activities of their respective agencies.
Special accounts
Balances existing within the CRF that are supported by standing appropriations (FMA Act ss. 20 and 21). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (FMA Act, s. 20) or through an Act of Parliament (referred to in s. 21 of the FMA Act).
Special appropriation (including standing appropriations)
An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.

Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.

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Portfolio Budget Statements 2010-11
Abbreviations

AACAP
Army Aboriginal Community Assistance Program
ABA
Aboriginals Benefit Account
AEIFRS
Australian Equivalent of International Financial Reporting Standards
AGDRP
Australian Government Disaster Recovery Payment
AGIE
Australian Government Indigenous Expenditure
AHL
Aboriginal Hostels Limited
ALRA
Aboriginal Land Rights (Northern Territory) Act 1976
CAC Act
Commonwealth Authorities and Companies Act 1997
CALD
Culturally and Linguistically Diverse
CDEP
Community Development Employment Projects
COAG
Council of Australian Governments
CRF
Consolidated Revenue Fund
CSA
Child Support Agency
DEEWR
Department of Education, Employment and Workplace Relations
DSP
Disability Support Pension
EoCFW
Employer of Choice For Women
EOWA
Equal Opportunity for Women in the Workplace Agency
FaHCSIA
Department of Families, Housing, Community Services and Indigenous Affairs
FMA Act
Financial Management and Accountability Act 1997
FTB
Family Tax Benefit
GFS
Government Financial Statements
GGS
General Government Sector
GSR
Great Southern Rail
IBA
Indigenous Business Australia
ILC
Indigenous Land Corporation
NAHA
National Affordable Housing Agreement
NIEPAG
The National Indigenous Economic Participation Advisory Group
NIPE
National Indigenous Pastoral Enterprises Pty Ltd
NRAS
National Rental Affordability Scheme
NTER
Northern Territory Emergency Response
OfW
Office for Women
OPA
Official Public Account
PBC
Prescribed Bodies Corporate
PPL
Paid Parental Leave
RA
Rent Assistance
SPP
Special Purpose Payment
SSAT
Social Security Appeals Tribunal
TSRA
Torres Strait Regional Authority

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Content Updated: 21 August 2013