Portfolio Budget Statements 2009-10

Table of contents

Minister for Families, Housing, Community Services and Indigenous Affairs

PARLIAMENT HOUSE
CANBERRA 2600

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 2009-10 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 To the Portfolio Budget Statements

User Guide

The purpose of the 2009-10 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 2009-10 (or Appropriation Bill [Parliamentary Departments] No. 1 2009-10 for the parliamentary departments). 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.

A list of abbreviations can be found here.

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
Families, Housing, Community Services and Indigenous Affairs 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.

Department of Families, Housing, Community Services and Indigenous Affairs

The 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 responsibilities in relation to Indigenous affairs and women.

The Department operates under 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 operates under 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 operating under the 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 and operates under 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 Aboriginal and Torres Strait Islander Act 2005 and operates under the CAC Act.TheILC 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 Aboriginal and Torres Strait Islander Act 2005 and operates under 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 officeholder under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) and operates under the FMA Act. The principal function of the Commissioner is to consider applications for claims to traditional land and to make 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, on behalf of the Commonwealth, leases of Aboriginal held land in the Northern Territory, 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 operate under theCACAct. Each of the four land councils is an independent statutory body and was 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 (CATSI Act) and operates under the FMA Act. The Office of the Registrar of Indigenous Corporations provides Aboriginal and Torres Strait Islander communities, groups and organisations with a means of registration.

Social Security Appeals Tribunal

The Social Security Appeals Tribunal (SSAT) is a statutory body under the Social Security (Administration) Act 1999 and operates under 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 FaHCSIA 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 operates under the CAC Act. The council holds title to land and provides services to the Aboriginal community of Jervis Bay.

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 Continue

Table 1 shows the total resources provided to the portfolio in the 2009-10 budget year, by agency.

Table 1: Portfolio resources 2009-10

 

Appropriation
Bill No. 1
$'000
Appropriation
Bill No. 2
$'000
Special
Appropriation
$'000
Receipts

$'000
Total

$'000
FaHCSIA
Administered appropriations 1,816,963 - 64,514,840 346,705 66,678,508
departmental appropriations 572,760 132,042 - 27,639 732,441
Total: 2,389,723 132,042 64,514,840 374,344 67,410,9491
EOWA
Administered appropriations - - - - -
departmental appropriations 2,992 - - 366 3,358
Total: 2,992 - - 366 3,358
AHL2
Administered appropriations - - - - -
departmental appropriations 36,840 3,790 - 12,440 53,070
Total: 36,840 3,790 - 12,440 53,070
IBA2
Administered appropriations - - - - -
departmental appropriations 38,840 33,170 - 60,353 132,363
Total: 38,840 33,170 - 60,353 132,363
ILC2
Administered appropriations - - - - -
departmental appropriations - - - 15,838 15,838
Total: - - - 15,838 15,838
TSRA2
Administered appropriations - - - - -
departmental appropriations 67,391 - - 1,885 69,276
Total: 67,391 - - 1,885 69,276
Portfolio Total 2,535,786 169,002 64,514,840 465,226 67,684,854
Less amounts transferred          
within Portfolio - - - 2,633 2,633
Resources available within Portfolio: 67,682,221

1 Total Resourcing does not include the balance of Special Accounts carried forward from 2008-09.

2 Funding under Appropriation Bill (No. 1) 2009-10 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

1.1 Strategic direction

About FaHCSIA

FaHCSIA is a major player in the delivery of the Australian Government's social policy agenda. FaHCSIA's purpose is improving the lives of Australians by creating opportunities for economic and social participation by individuals, families and communities.

For these PB Statements, FaHCSIA has refocused its outcomes around the seven core areas where the Department seeks to assist people. They are:

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

The detailed outcome statements for these seven outcome areas can be found in Section 2 of these PB Statements. In respect of these seven outcomes, FaHCSIA has four key modes of business delivery. They are:

  • 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 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 2009-10

The 2009-10 Budget contains substantial reform of the pension system, starting from 20 September 2009. In the 2008-09 Budget, the Government requested Dr Jeff Harmer, Secretary of FaHCSIA, to undertake a detailed review of the pension system and the adequacy of support it provided to pensioners. Informed by the findings of the Review, the Government has developed the Secure and Sustainable Pensions package which will improve adequacy, security, and flexibility for people receiving Age Pension, DSP and Carer Payment and related payments (including related Department of Veterans' Affairs payments).

In particular, the reforms will deliver improved relativities between rates paid to single and couple pensioners and an appropriate basis for indexation of pensions to reflect the cost of living faced by pensioners. The package will also simplify payments to pensioners, and provide more flexibility for them so that they have a secure basis for effective planning and budgeting.

Key elements of the Secure and Sustainable Pensions package are:

  • a $32.49 per week increase for single pensioners on the full rate of pension and $10.14 per week (combined) for couple pensioners on the full rate of pension
     
  • a new cost of living index, the Pensioner and Beneficiary Living Cost Index, to ensure that indexation of the base rates of pension reflect the changes in the cost of living experienced by pensioner households
     
  • a new Pension Supplement that incorporates and builds on the value of the GST Supplement, Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance at the higher (internet) rate, and which from July 2010 provides pensioners with the choice of receiving part of the supplement quarterly
     
  • a new guaranteed annual Carer Supplement for recipients of Carer Payment and Carer Allowance.
     

As well as improving support for today's pensioners, the package contains reforms which respond to current fiscal constraints and seek to ensure that the pension system remains sustainable into the future given the ageing of the population. These are:

  • measures to better target pension payments through tightening the income test, while protecting current pensioners by maintaining their existing entitlements in real terms and providing an increase of $10.14 per week for singles or couples combined
     
  • introducing additional incentives for age pensioners to increase their incomes through paid work
     
  • closure of the Pension Bonus Scheme
     
  • a gradual two-year increase to the qualifying age for Age Pension, commencing in 2017
     
  • improvements to the assessment processes for DSP to reduce unnecessary assessments, and provide more thorough assessments for claimants in accordance with the eligibility criteria where required
     
  • more support for workforce re-engagement for disability support pensioners.
     

The 2009-10 Budget also contains the introduction of a Paid Parental Leave (PPL) scheme to commence on 1 January 2011. In February 2008 the Government asked the Productivity Commission to conduct an inquiry into the economic and social costs and benefits of PPL. This new scheme is in response to the Productivity Commission's final inquiry report, which was provided to the Government on 2 March 2009. The scheme will enhance maternal and child health and development, facilitate workforce participation, and promote gender equity and family work/life balance. It is estimated that up to 148,000 eligible families will be eligible for the new scheme each year.

On 30 April 2009, COAG endorsed the first National Framework for Protecting Australia's Children. FaHCSIA has, and will continue to play, a significant leadership role in the area of supporting the role of the states and territories in child protection. In addition to the significant existing investment in early intervention and prevention services through the Family Support Program ($1.2 billion over four years) which supports vulnerable families and children, there are two FaHCSIA measures in this Budget flowing from the National Framework, these are Communities for Children Plus, and National Leadership Activities.

This Budget includes a number of measures that will help people with disability and address the sustainability of the DSP in light of the economic outlook and the increased rate of pension decided as part of the Secure and Sustainable Pensions package. The assessment process for DSP will be improved to better reflect up-to-date medical rehabilitation advice and practice. This will ensure that people applying for DSP receive the income support and employment assistance package which reflects both their level of impairment and their work capacity. A new strategy will be introduced to provide more advice and information to disability support pensioners on the availability of support services for and the benefits of employment. These measures will be complemented by the Government's National Mental Health and Disability Employment Strategy.

FaHCSIA will continue to work with state and territory governments to improve community participation among people with disability and their carers through implementing nationally consistent disability parking and companion card schemes and extending the Outside School Hours Care for Teenagers with Disability Program by providing an additional 250 places.

The Government is maintaining its strong commitment to closing the gap in Indigenous disadvantage with $1.3 billion in new funding in the 2009-10 Budget. This builds on the investment by the Commonwealth, state and territory governments in 2008 of $4.6 billion for National Partnership Agreements on early childhood development, health, jobs, remote housing and remote service delivery. The new funding will support the Government's closing the gap agenda of:

  • making a sustained investment and undertaking fundamental reforms to improve delivery and accountability of government services, including the appointment of a Coordinator-General for Remote Indigenous Services
     
  • resetting the relationship with Indigenous people through engagement and partnerships
     
  • restoring personal responsibility at the individual level and expanding economic opportunities for Indigenous communities to reduce disadvantage and intergenerational poverty
     
  • acting and intervening when the circumstances demand.
     

The portfolio will continue to take a lead role in coordinating the Australian Government's response to assist the Victorian Government with the bushfire recovery and reconstruction effort. In addition, the portfolio will continue to provide assistance for other disaster recovery activities.

Economic and fiscal context for the 2009-10 Budget

The global financial crisis provides a significant context for framing this Budget. FaHCSIA is working to ensure that program settings are sustainable in the longer term. The decisions reflected in these PB Statements have been reached in the context of anticipated reductions in Commonwealth revenues at a time when the call for services to assist those most in need can be expected to increase. They were based on responsible financial management, a thorough scrutiny of existing effort, and a prioritisation of new spending. Where savings have been made, they have sought to balance short-term fiscal constraints, longer-term sustainability of outlays and the needs of disadvantaged Australians.

FaHCSIA is playing a key role in implementing the Australian Government's response to the global financial crisis by delivering a number of initiatives. The first of these was the Economic Security Strategy, announced by the Government on 14 October 2008, delivering assistance to pensioners, seniors, people with disability, carers, veterans and families. The Nation Building - Economic Stimulus Plan was announced by the Government on 3 February 2009 to support Australian households and economic activity. The plan included stimulus payments to some recipients of FTB and construction of new social housing to assist low-income households to have access to affordable housing.

Additional funding to the Financial Management Program was also announced in February 2009 to provide more help to vulnerable individuals and families to build financial capability and resilience.

There have also been adjustments to the social security system in order to ease some of the financial pressure on pensioners.

Key changes since the 2008-09 Budget

The requirements of Operation Sunlight have driven the refinement of FaHCSIA's outcome structure and performance reporting framework. Future reporting will focus mainly at the program level and concentrate on whether each program has achieved its objective.

The key changes in FaHCSIA's PB Statements as a result of Operation Sunlight are:

  • the replacement of a four outcome structure with a seven outcome structure
  • the introduction of statements of purpose for each outcome, and of program and program component objectives
  • a robust performance management framework under which the performance of government appropriations can be assessed.

Reporting against new performance indicators will require investment in changes to the Department's information systems to facilitate the collection of the necessary data. These changes will be undertaken during the 2009-10 year. The reporting outlined in these PB Statements is therefore an interim step towards improved reporting in 2010-11.

A final significant change since the 2008-09 FaHCSIA PB Statements has been the implementation of the COAG Reform Agenda from 1 January 2009. Under this agenda, funds that were previously paid to the states and territories by FaHCSIA will now be appropriated to the Treasury. In the interest of reporting total Commonwealth efforts in these areas, the PB Statements will now contain tables that combine appropriations to FaHCSIA with payments that the Treasury will make in respect of three National Agreements and six National Partnership Agreements. These agreements involve significant reforms in the areas of: housing; disabilities; and closing the gap on Indigenous disadvantage, particularly in remote areas.

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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 2009-10 as at Budget May 2009

 

  Estimate of prior year amounts available in
2009-10
$'000
+ Proposed at Budget
2009-10
$'000
= Total Estimate
2009-10
$'000
Estimated Available Appropriation
2008-09
$'000
Ordinary Annual Services - Bill 11
Departmental appropriation
Departmental appropriation2   -   572,760   572,760 1,569,764
s31 Relevant agency receipts   -   27,6393   27,639 41,103
Total   -   600,399   600,399 1,610,867
Administered expenses
Outcome 1   -   183,432   183,432 175,075
Outcome 2   -   129,459   129,459 96,984
Outcome 3   -   194,670   194,670 164,258
Outcome 4   -   5,000   5,000 7,726
Outcome 5   8,100   465,381   473,481 434,282
Outcome 6   7,000   20,475   27,475 16,105
Outcome 7   62,000   741,446   803,446 785,681
Total   77,100   1,739,863   1,816,963 1,680,111
Non Appropriated Revenue   -   39,165   39,165 45,472
Payments to CAC Act Bodies   -   143,071   143,071 123,587
Total Administered   77,100   1,922,099   1,999,199 1,849,170
Total ordinary annual services A 77,100   2,522,498   2,599,598 3,460,037
Other services - Bill 24
Administered expenses
Specific payments to States, ACT, NT and local government
Outcome 1   -   -   - 554
Outcome 2   -   -   - 591,737
Outcome 3   -   -   - 109,869
Outcome 4   -   -   - -
Outcome 5   -   -   - 431,675
Outcome 6   -   -   - -
Outcome 7   -   -   - 162,881
Total   -   -   - 1,296,716
Departmental non-operating
Equity injections   -   44,056   44,056 6,758
Previous years' outputs   -   87,986   87,986 -
Total   -   132,042   132,042 6,758
Total other services B -   132,042   132,042 1,303,474
Total Available Annual
Appropriations   77,100   2,654,540   2,731,640 4,763,511
Special Appropriations
Special Appropriations limited by criteria/entitlement
Aboriginal Land Rights (Northern
Territory) Act 1976   -   200,204   200,204 226,547
Social Security (Administration) Act 1999 -   45,568,753   45,568,753 45,598,629
A New Tax System (Family Assistance)            
(Administration) Act 1999   -   18,745,883   18,745,883 26,349,194
Northern Territory National
Emergency Response Act 2007   -   -   - 4,439
Total Special Appropriations C -   64,514,840   64,514,840 72,178,809
Total Appropriations excluding
Special Accounts   77,100   67,169,380   67,246,480 76,942,320
Special Accounts
Opening balance5   2,039,278   -   2,039,278 1,871,673
Appropriation Receipts6   -   346,937   346,937 335,172
Non-Appropriation receipts to
Special Accounts   -   307,540   307,540 307,317
Total Special Account D 2,039,278   654,477   2,693,755 2,514,162
Total resourcing   2,116,378   67,823,857   69,940,235 79,456,482
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
  -   -490,008   -490,008 -458,759
Total net resourcing for FaHCSIA   2,116,378   67,333,849   69,450,227 78,997,723

Table 1.1: FaHCSIA resource statement-Budget estimates for 2009-10 as at Budget May 2009 (continued)

Third Party Payments from and on behalf of other agencies

2009-10
$'000
2008-09
$'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
19,311,209 23,303,823
Special Appropriations - Social Security (Administration) Act 1999 45,466,981 45,338,174
Annual Appropriations - Ex-Gratia Payments 4,142 27,331
DVA has the authority to make the following payments to customers on behalf of FaHCSIA:
Special Appropriations - Social Security (Administration) Act 1999 76,330 67,211
Payments made to other agencies for the provision of services
Australian Taxation Office 671 10,546
Centrelink7 19,631 1,066,924
Department of Veterans' Affairs 200 199
Medicare Australia 9,220 9,181
Payments made to CAC Act bodies within the Portfolio
Aboriginal Hostels Limited 36,840 34,281
Indigenous Business Australia 38,840 37,402
Torres Strait Regional Authority 67,391 51,904

1 Appropriation Bill (No.1) 2009-10.

2 The reduction from 2008-09 to 2009-10 in departmental appropriations is due to Centrelink being directly appropriated from 2009-10.

3 s31 Relevant Agency receipts - estimate.

4 Appropriation Bill (No.2) 2009-10. From 2009-10, payments to the states and territories will be paid by the Treasury. For further information, see Table 1.3, Section 1.

5 Estimated opening balance for special accounts. For further information on special accounts see Table 3.1.2, Section 3.

6 Appropriation receipts from FaHCSIA annual and special appropriations for 2008-09 included above. Reader note: All figures are GST exclusive.

7 The reduction in payments to Centrelink is due to Centrelink being directly appropriated from 2009-10 onwards. The payment for 2009-10 is for outstanding work from 2008-09 to be finalised.

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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 the FaHCSIA financial implications are summarised below.


Table 1.2 Agency 2009-10 Budget Measures

 

Program 2008-09
$'000
2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-13
$'000
    $'000 $'000 $'000 $'000 $'000
Expense measures
Outcome 1
Care determinations - alignment across Family Assistance Office and Child Support Program 1.1          
Administered expenses   - - - - -
Departmental expenses   - 35 - - -
Total   - 35 - - -
Drought assistance - extension of the Family Support Drought Response Teams program 1.1          
Administered expenses   - 6,509 - - -
Departmental expenses   - 1,081 - - -
Total   - 7,590 - - -
Improving School Enrolment and Attendance Trial - continuation 1.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total1   - - - - -
National Framework for Protecting Australia's Children - Transition to Independent Living Allowance - increase 1.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total2   - - - - -
National Framework for Protecting Australia's Children - Special Child Care Benefit - increasing awareness and access 1.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total2   - - - - -
National Framework for Protecting Australia's Children - Communities for Children Plus Program - establishment 1.1          
Administered expenses   - 1,450 2,848 3,005 1,952
Departmental expenses   - 254 210 141 142
Total   - 1,704 3,058 3,146 2,094
National Framework for Protecting Australia's Children - National Leadership Projects 1.1          
Administered expenses   - 1,700 2,075 2,523 2,611
Departmental expenses   - 559 192 164 166
Total   - 2,259 2,267 2,687 2,777
Closing the Gap - Northern Territory - family support package 1.1          
Administered expenses   - 5,068 5,269 5,475 -
Departmental expenses   - 407 411 416 -
Total   - 5,475 5,680 5,891 -
Family Relationships Services Program - transfer of responsibilities to the Department of Families, Housing, Community Services and Indigenous Affairs 1.1          
Administered expenses   - 1,055 1,072 1,094 1,115
Departmental expenses   - 1,685 1,734 1,775 1,809
Total   - 2,740 2,806 2,869 2,924
Reform of family payments - Family Tax Benefit A (FTB-A) - removing the link to pension indexation 1.2          
Administered expenses   - - 43,092 - 189,460 - 292,025 - 498,721
Departmental expenses   - - - - -
Total   - - 43,092 - 189,460 - 292,025 - 498,721
Child Support Agency - additional funding 1.2          
Administered expenses   - - 27,900 - 27,900 - 27,900 - 27,900
Departmental expenses   - - - - -
Total   - - 27,900 - 27,900 - 27,900 - 27,900
An Innovation and Higher Education System for the 21st Century - Student Income Support - increase Youth Allowance Parental Income Test threshold 1.2          
Administered expenses   - - 55,397 - 147,550 - 150,943 - 153,962
Departmental expenses   - - - - -
Total   - - 55,397 - 147,550 - 150,943 - 153,962
An Innovation and Higher Education System for the 21st Century - Student Income Support - reduction in the age of independence 1.2          
Administered expenses   - - 1,268 - 4,642 - 13,467 - 20,575
Departmental expenses   - - - - -
Total   - - 1,268 - 4,642 - 13,467 - 20,575
Jobs and Training Compact - improved participation requirements for 15 to 20 year olds 1.2          
Administered expenses   - - 18,947 - 32,329 - 32,434 - 32,882
Departmental expenses   - - - - -
Total   - - 18,947 - 32,329 - 32,434 - 32,882
Reform of family payments - pause to indexation of upper income thresholds of FTB-A, FTB-B and Baby Bonus 1.2, 1.3          
Administered expenses   - - 169,956 - 236,428 - 346,953 - 364,612
Departmental expenses   639 95 96 17 18
Total   639 - 169,861 - 236,332 - 346,936 - 364,594
Paid Parental Leave 1.2, 1.3          
Administered expenses   - 2,350 234,893 464,597 477,288
Departmental expenses   454 2,428 2,596 756 762
Total   454 4,778 237,489 465,353 478,050
Maternity Immunisation Allowance - alignment of indexation with other family payments 1.3          
Administered expenses   - - 452 - 472 - 879 - 913
Departmental expenses   23 - - - -
Total   23 - 452 - 472 - 879 - 913
Outcome 3
Emergency Relief - innovative projects to help build the financial capacity of people on low incomes 3.1          
Administered expenses   - 23,886 24,358 - -
Departmental expenses   - 1,114 642 - -
Total   - 25,000 25,000 - -
Emergency Relief - assistance related to the Victorian bushfires and Queensland floods 3.1          
Administered expenses   5,000 - - - -
Departmental expenses   - - - - -
Total   5,000 - - - -
Closing the Gap - Northern Territory - income management - additional funding 3.1          
Administered expenses   - 4,271 - - -
Departmental expenses   - 3,418 - - -
Total   - 7,689 - - -
Income management in cases of child neglect and by voluntary choice - continuation of trial 3.1          
Administered expenses   - 2,274 - - -
Departmental expenses   476 770 - - -
Total   476 3,044 - - -
Victorian bushfires - assistance 3.4          
Administered expenses   75,215 10,562 - - -
Departmental expenses   16,132 - - - -
Total   91,347 10,562 - - -
Queensland floods - assistance 3.4          
Administered expenses   48,034 3,693 - - -
Departmental expenses   3,782 - - - -
Total   51,816 3,693 - - -
South-East Queensland storms - assistance 3.4          
Administered expenses   19,155 - - - -
Departmental expenses   2,122 - - - -
Total   21,277 - - - -
Outcome 4
Secure and sustainable pensions - close the Pension Bonus Scheme 4.1          
Administered expenses   - 5,095 3,320 - 14,506 - 49,752
Departmental expenses   190 16 5 - -
Total   190 5,111 3,325 - 14,506 - 49,752
Secure and sustainable pensions - increase in the Age Pension age 4.1          
Administered expenses   - - - - -
Departmental expenses   46 - - - -
Total   46 - - - -
Superannuation - account-based pensions - drawdown relief for retirees for 2008-09 4.1          
Administered expenses   10,930 - - - -
Departmental expenses   2,158 - - - -
Total   13,088 - - - -
Superannuation - account-based pensions - further drawdown relief for retirees 4.1          
Administered expenses   - 15,000 - - -
Departmental expenses   - - - - -
Total   - 15,000 - - -
Commonwealth Seniors Health Card - income test 4.2          
Administered expenses   - 9,563 11,410 13,336 14,182
Departmental expenses   - - - - -
Total   - 9,563 11,410 13,336 14,182
Outcome 5
Fraud and compliance - extending real estate asset reviews to Disability Support Pension 5.2          
Administered expenses   - - 1,295 - 6,125 - 8,134 - 10,329
Departmental expenses   - - - - -
Total   - - 1,295 - 6,125 - 8,134 - 10,329
Disability Support Pension - better and fairer assessments 5.2          
Administered expenses   - 585 - 37,711 - 114,530 - 190,874
Departmental expenses   51 1,258 804 - -
Total   51 1,843 - 36,907 - 114,530 - 190,874
Secure and sustainable pensions - new carer supplement 5.3          
Administered expenses   373,072 - 434,113 458,339 482,417
Departmental expenses   2,049 99 97 72 63
Total   375,121 99 434,210 458,411 482,480
Disability Parking Scheme - a national approach 5.4          
Administered expenses   - 1,600 122 - -
Departmental expenses   - 388 508 394 -
Total   - 1,988 630 394 -
National Companion Card - implementation 5.4          
Administered expenses   - 191 141 20 -
Departmental expenses   - 564 429 433 -
Total   - 755 570 453 -
Children with a disability - additional outside school hours care 5.4          
Administered expenses   - 1,083 1,323 1,347 1,371
Departmental expenses   - - - - -
Total   - 1,083 1,323 1,347 1,371
Outcome 6
National Plan to Reduce Violence against Women and their Children - implementation 6.1          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
Outcome 7
Closing the Gap - Business Action Agenda 7.1          
Administered expenses   - - - - -
Departmental expenses   - 745 753 765 776
Total   - 745 753 765 776
Closing the Gap - funding for the Native Title system 7.3          
Administered expenses   - 7,001 13,403 20,122 21,585
Departmental expenses   - - - - -
Total   - 7,001 13,403 20,122 21,585
Closing the Gap - Clearinghouse 7.4          
Administered expenses   - - 500 510 519
Departmental expenses   - - - - -
Total   - - 500 510 519
Closing the Gap - Reconciliation Australia - continuation 7.4          
Administered expenses   - - 3,600 3,600 3,600
Departmental expenses   - - - - -
Total   - - 3,600 3,600 3,600
Closing the Gap - Indigenous Healing Foundation 7.4          
Administered expenses   - 5,710 7,658 7,834 4,857
Departmental expenses   - 194 106 147 102
Total   - 5,904 7,764 7,981 4,959
Coordinator General for remote Indigenous services 7.4          
Administered expenses   - - - - -
Departmental expenses   - 2,225 2,244 2,266 2,288
Total   - 2,225 2,244 2,266 2,288
Closing the Gap - Northern Territory - playgroups 7.5          
Administered expenses   - 119 1,102 1,125 -
Departmental expenses   - 205 122 124 -
Total   - 324 1,224 1,249 -
Closing the Gap - Northern Territory - field operations 7.5          
Administered expenses   - - - - -
Departmental expenses   - 25,085 25,311 25,615 -
Total   - 25,085 25,311 25,615 -
Closing the Gap - Northern Territory - coordination and policy advice 7.5          
Administered expenses   - - - - -
Departmental expenses   - 3,884 3,826 3,329 -
Total   - 3,884 3,826 3,329 -
Closing the Gap - Northern Territory - community engagement 7.5          
Administered expenses   - 4,572 7,323 7,469 -
Departmental expenses   - 5,026 5,068 5,118 -
Total   - 9,598 12,391 12,587 -
Closing the Gap - Northern Territory - policing 7.5          
Administered expenses   - 7,000 8,430 9,780 -
Departmental expenses   - 905 912 921 -
Total   - 7,905 9,342 10,701 -
Closing the Gap - Northern Territory - Local Priorities Fund 7.5          
Administered expenses   - 10,047 - - -
Departmental expenses   - - - - -
Total   - 10,047 - - -
Closing the Gap - Northern Territory - early childhood 7.5          
Administered expenses   - 409 418 427 -
Departmental expenses   - 111 87 88 -
Total   - 520 505 515 -
Closing the Gap - Northern Territory - youth diversion 7.5          
Administered expenses   - 8,795 8,988 9,177 -
Departmental expenses   - 484 489 494 -
Total   - 9,279 9,477 9,671 -
Closing the Gap - Northern Territory - community stores 7.5          
Administered expenses   - 3,408 1,793 1,675 -
Departmental expenses   - 4,535 3,526 2,512 -
Total   - 7,943 5,319 4,187 -
Cross-Outcome
Migration Program - reduction in skill stream places for 2008-09
Outcome 1 1.2, 1.3          
Administered expenses   - 10,759 - 22,121 - 22,696 - 23,263 - 23,845
Departmental expenses   - 594 - - - -
Outcome 5 5.2          
Administered expenses   - 143 - 293 - 301 - 309 - 316
Departmental expenses   - 12 - - - -
Total   - 11,508 - 22,414 - 22,997 - 23,572 - 24,161
Migration Program - allocation of places for 2009-10
Outcome 1 1.2, 1.3          
Administered expenses   - - 14,851 - 44,211 - 75,071 - 107,524
Departmental expenses   - - - - -
Outcome 3 3.3          
Administered expenses   - 412 2,113 3,909 5,771
Departmental expenses   - - - - -
Outcome 5 5.2          
Administered expenses   - 42 660 1,331 2,047
Departmental expenses   - - - - -
Total   - - 14,397 - 41,438 - 69,831 - 99,706
Fraud and compliance - Centrelink debts - increase in repayment rate 1.2, 3.3, 4.1, 5.2, 5.3          
Administered expenses   - - - - -
Departmental expenses   - - - - -
Total   - - - - -
This measure involves an adjustment to (FaHCSIA Administered) underlying cash
Fraud and compliance - increased Centrelink compliance review activity
Outcome 4 4.1          
Administered expenses   - - 547 - 5,767 - 6,965 - 7,454
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - - 348 - 3,698 - 4,264 - 4,300
Departmental expenses   - - - - -
Total   - - 895 - 9,465 - 11,229 - 11,754
    -        
Fraud and compliance - establishing a data mining capability in Centrelink
Outcome 4 4.1          
Administered expenses   - - 3,361 - 11,042 - 17,448 - 19,893
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - - 416 - 1,350 - 1,896 - 1,949
Departmental expenses   - - - - -
Total   - - 3,777 - 12,392 - 19,344 - 21,842
Fraud and compliance - extended United Kingdom data exchange
Outcome 4 4.2          
Administered expenses   - - 568 - 750 - 296 - 242
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - - 618 - 757 - 111 - 100
Departmental expenses   - - - - -
Total   - - 1,186 - 1,507 - 407 - 342
Closing the Gap - Community Development Employment Projects Program (CDEP) and the Indigenous Employment Program (IEP) Reform
Outcome 3 3.2          
Administered expenses   - 13,350 13,631 13,903 14,181
Departmental expenses   - 1,261 1,271 1,284 1,297
Outcome 4 4.1          
Administered expenses   - 296 459 1,040 1,153
Departmental expenses   - - - - -
Outcome 5 5.2, 5.3          
Administered expenses   - 1,832 2,526 4,930 5,416
Departmental expenses   - - - - -
Outcome 7 7.1          
Administered expenses   - - 136,407 - 128,147 - 277,003 - 302,890
Departmental expenses   10,847 10,144 11,357 12,384 9,551
Total   10,847 - 109,524 - 98,903 - 243,462 - 271,292
Secure and sustainable pensions - social security agreements with Latvia, the Czech Republic and the Slovak Republic 3.3          
Outcome 3
Administered expenses   - - - 20 - 49 - 52
Departmental expenses   - - - - -
Outcome 4 4.1          
Administered expenses   - - - 386 - 683 - 736
Departmental expenses   - 324 312 45 -
Total   - 324 - 94 - 687 - 788
Secure and sustainable pensions - increase to pension payments
Outcome 3 3.3, 3.4, 3.5          
Administered expenses   - - 902,510 - 1,233,913 - 1,291,745 - 1,355,442
Departmental expenses   - - - - -
Outcome 4 4.1, 4.2          
Administered expenses   - 2,206,620 3,011,921 3,183,092 3,383,891
Departmental expenses   2,504 925 392 151 169
Outcome 5 5.2, 5.3          
Administered expenses   - 1,121,659 1,516,005 1,592,340 1,680,448
Departmental expenses   1,273 470 198 75 84
Total   3,777 2,427,164 3,294,603 3,483,913 3,709,150
Secure and sustainable pensions - tighten the income test taper
Outcome 3 3.4          
Administered expenses   - - 30 - 60 - 86 - 134
Departmental expenses   - - - - -
Outcome 4 4.1          
Administered expenses   - - 110,270 - 217,927 - 276,504 - 337,698
Departmental expenses   157 717 274 176 166
Outcome 5 5.2,5.3          
Administered expenses   - - 23,735 - 47,817 - 62,038 - 80,097
Departmental expenses   34 154 60 39 39
Total   191 - 133,164 - 265,470 - 338,413 - 417,724
Tuggeranong Office Park - accommodation
Outcome 1 ALL          
Administered expenses   - - - - -
Departmental expenses   - 1,544 1,249 1,205 1,242
Outcome 2 ALL          
Administered expenses   - - - - -
Departmental expenses   - 677 548 529 545
Outcome 3 ALL          
Administered expenses   - - - - -
Departmental expenses   - 932 754 728 750
Outcome 4 ALL          
Administered expenses   - - - - -
Departmental expenses   - 412 333 322 331
Outcome 5 ALL          
Administered expenses   - - - - -
Departmental expenses   - 1,571 1,271 1,227 1,264
Outcome 6 ALL          
Administered expenses   - - - - -
Departmental expenses   - 102 83 80 82
Outcome 7 ALL          
Administered expenses   - - - - -
Departmental expenses   - 3,489 2,823 2,724 2,807
Total   - 8,727 7,061 6,815 7,021
Total expense measures
Administered   520,504 1,952,825 2,920,015 2,772,498 2,511,212
Departmental   42,331 80,292 71,093 66,516 24,453
  Total 562,835 2,033,117 2,991,108 2,839,014 2,535,665
Capital measures
Outcome 7
Closing the Gap - Community Development Employment Projects Program (CDEP) and the Indigenous Employment Program (IEP) Reform 7.1          
Administered capital   - - - - -
Departmental capital   3,385 597 - - -
Total   3,385 597 - - -
Closing the Gap - Northern Territory - field operations 7.5          
Administered capital   - - - - -
Departmental capital   - 2,357 2,337 2,270 -
Total   - 2,357 2,337 2,270 -
Cross-Outcome
Tuggeranong Office Park - accommodation
Outcome 1 ALL          
Administered capital   - - - - -
Departmental capital   - 2,962 1,774 - -
Outcome 2 ALL          
Administered capital   - - - - -
Departmental capital   - 1,299 778 - -
Outcome 3 ALL          
Administered capital   - - - - -
Departmental capital   - 1,788 1,071 - -
Outcome 4 ALL          
Administered capital   - - - - -
Departmental capital   - 790 473 - -
Outcome 5 ALL          
Administered capital   - - - - -
Departmental capital   - 3,014 1,805 - -
Outcome 6 ALL          
Administered capital   - - - - -
Departmental capital   - 196 117 - -
Outcome 7 ALL          
Administered capital   - - - - -
Departmental capital   - 6,695 4,009 - -
Total   - 16,744 10,027 - -
Total capital measures
Administered   - - - - -
Departmental   3,385 19,698 12,364 2,270 -
  Total 3,385 19,698 12,364 2,270 -

Prepared on a Government Financial Statistics (fiscal) basis

1 This measure has financial implications for DEEWR and is listed here as it forms part of the Government's Income Management Reforms co-ordinated by FaHCSIA.

2 These measures have financial implications for DEEWR and are listed here as FaHCSIA is co-ordinating the Commonwealth's response to the National Framework for Protecting Australia's Children.

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1.4 Transition from outcomes and outputs to outcomes and programs

From the 2009-10 Budget, all General Government Sector (GGS) entities will be reporting on a program basis. The table below outlines the transition from the 2008-09 Budget year (as at Additional Estimates) which was presented in administered items, outputs and output groups to the new program reporting framework used for the 2009-10 Budget. The table also captures revisions made to FaHCSIA's outcome statements under the Operation Sunlight Outcome Statements Review.

For most programs:

  • the former Outcome 1 translates to the new Outcome 7-Indigenous
  • output groups in the former Outcome 2 transfer functions to the new outcomes: Outcome 3-Community Capability and the Vulnerable, Outcome 4-Seniors, Outcome 5-Disability and Carers, and Outcome 6-Women
  • the former Outcome 3 translates to the new Outcome 1-Families
  • outputs in the former Outcome 4 translate to the new outcomes: Outcome 2-Housing, and Outcome 3-Community Capability and the Vulnerable.

Figure 2: Transition table

Figure 2: Transition table

Figure 2: Transition table continue

Figure 2: Transition table continue

Figure 2: Transition table continue

Figure 2: Transition table continue

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1.5 Programs for which the Treasury is appropriated under the new Federal Financial Relations (FFR) Framework

The Council of Australian Government (COAG) has agreed to a new framework for Federal Financial Relations that is being implemented in a staged manner from 1 January 2009. Under these arrangements Specific Purpose Payments (SPPs) will now be made through combined monthly payments from the Commonwealth Treasury to and through State and Territory Treasuries.

Details of payments which were previously the responsibility of the Department of Families, Housing, Community Services and Indigenous Affairs and are now being made by the Treasury are summarised below, along with resources that continue to be held by FaHCSIA. Further information on the Federal Financial Relations arrangements can be found in the single set of PB Statements of the Treasury and in Budget Paper No. 3, Australia's Federal Relations 2009-10.


Table 1.3: Programs for which Treasury is appropriated under the new federal financial relations (FFR) framework and remaining agency resourcing.

       

       2008-09
$'000
       2009-10
$'000
       2010-11
$'000
       2011-12
$'000
       2012-13
$'000
Amounts appropriated to Treasury under the new FFR Act          
Treasury payment to/through states - Housing 878,639 4,814,354 2,285,283 907,441 635,471
Social Housing 200,000 200,000 - - -
Homelessness 21,973 97,700 128,500 131,500 156,500
Investment in Social Housing 260,000 4,072,000 1,744,000 312,000 -
Remote Indigenous Housing 395,635 432,733 412,783 463,941 478,971
Social Housing Subsidy program 1,031 11,921 - - -
Treasury payment to/through states - Assistance to the Aged 121,868 242,553 250,633 258,456 268,142
Concession for pensioners and senior card holders 109,868 230,553 238,633 246,456 255,642
National reciprocal transport concessions 12,000 12,000 12,000 12,000 12,500
Treasury payment to/through states - Indigenous Development - 37,672 57,873 57,882 -
Closing the Gap - Northern Territory - family support package - coordination - 5,068 5,269 5,476 -
Closing the Gap - Northern Territory - community stores - 300 300 300 -
Closing the Gap - Northern Territory - field operations - 900 2,907 4,278 -
Closing the Gap - Northern Territory - remote policing & substance abuse - 31,404 49,397 47,828 -
Treasury payment to/through states - Public Order and Safety 13,639 4,010 - - -
Improving policing in very remote areas 13,639 4,010 - - -
Subtotal Treasury Resourcing (for the above programs) (a) 1,014,146 5,098,589 2,593,789 1,223,779 903,613
Subtotal Agency resourcing1 78,997,723 69,450,227 72,456,528 75,506,661 79,343,475
Totals (a + b) 80,011,869 74,548,816 75,050,317 76,730,440 80,247,088

1 Details of Agency resourcing for 2008-09 and 2009-10 can be found in Table 1.1 (Agency Resource Statement) under the heading 'Total net resourcing for FaHCSIA'.

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Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Agencies deliver programs which are the Government actions taken to deliver the stated outcomes. 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 the Department of Families, Housing, Community Services and Indigenous Affairs in achieving Government outcomes.

The Department has developed performance information for each program consistent with the requirements of Operation Sunlight. A stronger emphasis has been placed on reporting program effects in terms of the objective for that program rather than reporting the level of activity for that program. Wherever possible, it is the Department's intention to report on trends in program performance but this may be limited by the need to gather new information over time. In some instances new performance indicators require a new data source. Specific activity levels for programs will generally be described in the deliverables table. The Department will continue to review and improve its performance indicators .

Outcome 1: Families

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

Outcome 1 Strategy

Through the payment of Family Tax Benefit (FTB) Parts A and B, FaHCSIA makes a significant contribution to family functioning, particularly for low income families. The payment assists families with the costs of children, and reduces financial stress within those families. FaHCSIA also helps family functioning through the many services funded under the Family Support Program, including family relationship services and children and parenting services. These services also assist with child development.

The new 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 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 is working with the states and territories to improve child safety and wellbeing most recently through the development of a National Framework for Protecting Australia's Children, and the delivery of associated programs.

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

Key enhancements to this strategy since the 2008-09 Budget

Measures in the 2009-10 Budget will: respond to the recommendations of the Productivity Commission's Inquiry into Paid Maternity, Paternity and Parental Leave, reform family payments, simplify care determinations for separated parents and streamline the administration of the Family Support Program, particularly the Family Relationship Services.

Paid Parental Leave

The PPL initiative follows an inquiry and report by the Productivity Commission which looked at ways the Government could improve support to parents with newborn children.

The introduction of a statutory PPL scheme is a strong signal from the Government that having a child and taking time out from work for family reasons is part of the normal course of work and family life. The scheme will commence for parents who are the primary carers of a child born or adopted on or after 1 January 2011.

Under the PPL scheme, an eligible person will receive taxable payments set at the weekly rate of the Federal Minimum Wage-currently $543.78-for a continuous period of up to 18 weeks. An income test of $150,000 will apply, based on the primary carer's adjusted taxable income in the previous financial year.

Eligible parents giving birth to two or more children would receive one PPL entitlement and, subject to the Baby Bonus income test, receive the Baby Bonus for each additional child.

Reforms of family payments

From 1 July 2009, the Government is making changes to family assistance by making changes to FTB and the Baby Bonus. The higher income thresholds for family payments will remain at their current levels for three years.

This means the higher income free area for FTB Part A ($94,316 per year and $3,796 for each FTB child after the first), the $150,000 per year primary earner income limit for FTB Part B, and the family income limit for the Baby Bonus will be maintained until July 2012, when annual indexation will resume.

All family payment rates including maximum rates of FTB Part A will be indexed for movements in the CPI. For maximum rates of FTB Part A for children under 16 years, current benchmarks to the combined pensioner couple rate (which enable benchmarking to male total average weekly earnings) will be removed.

The indexation arrangements for Maternity Immunisation Allowance will also be aligned with the rules for the other major family payments. Six-monthly indexation will cease, and annual indexation will be applied from 1 July 2010.

Rates of family assistance will continue to be maintained in real terms.

An Innovation and Higher Education System for the 21st Century

Measures announced in the Department of Education, Employment and Workplace Relations portfolio to reform student income support in line with recommendations by the Bradley Review of Australian Higher Education will have a flow-on effect to some families receiving FTB. The alignment of the Youth Allowance Parental Income Test parameters and indexation arrangements with those applying to FTB will result in more young people receiving the higher Youth Allowance from age 16. In addition, the phased reduction in the age of independence for Youth Allowance from 25 years to 22 years will have subsequent flow-on effects for FTB eligibility.

Simplifying Care Determinations

Alignment of care determinations across the Family Assistance Office (FAO) and the Child Support Program (CSP) will result in improved consistency and administrative simplification. One care determination will be used for both child support and family assistance purposes. This will remove duplication of effort between the FAO and the CSP and provide consistency in decisions about level of care.

Streamlining Administration of the Family Relationship Services Program

The Family Relationship Services Program (FRSP) is currently jointly funded by FaHCSIA and the Attorney-General's Department (AGD) with each portfolio having policy responsibility for their respective services. Consolidating FRSP administration arrangements within one agency will allow contract management processes to be streamlined.

From 1 July 2009, departmental resources for the FRSP will be transferred from AGD to FaHCSIA. Family relationship service providers will be able to access a more simplified single funding agreement, with better integration of services.

The FRSP services will be managed under the new Family Support Program which draws together family partnering and parenting services for all families. FRSP clients will benefit through a more integrated service structure covering the FRSP early intervention services and post-separation services within the wider Family Support Program.

Protecting Australia's Children

The National Framework for Protecting Australia's Children, Protecting Children is Everyone's Business, was agreed by COAG on 30 April 2009. The National Framework was developed collaboratively by the Commonwealth, state and territory governments, through the Community and Disability Services Ministers' Conference, in consultation with the non-government sector.

The Government will provide $63.1 million over four years to help protect Australia's vulnerable children from child abuse and neglect under the National Framework for Protecting Australia's Children. The Commonwealth will play a leadership role in taking the National Framework forward. Through FaHCSIA, the Government will provide:

  • $10 million over four years for projects that improve the evidence-base and the quality of services to protect children, including the development with states and territories of ambitious National Standards for Out of Home Care.
     
  • $10.1 million over four years for Communities for Children Plus Program to develop up to eight innovative, integrated sites in disadvantaged communities to work with at-risk children and vulnerable families.

Other initiatives announced within the DEEWR portfolio will increase access to child care for children at risk, and increase financial support for young people leaving care. 

Child Support Program

Additional funding for the Child Support Program in the Human Services Portfolio will increase the level of child support collections and reduce child support debt. Child support monies received by payees are included when calculating FTB payments. Therefore, improved child support collection reduces FTB outlays for the Government.

Improved participation requirements for 15-20 year olds

The Government will strengthen participation requirements for young people aged
15-20 years who do not have a Year 12 or equivalent qualification and who receive Youth Allowance (other) or FTB Part A.

From 1 January 2010, a young person without a Year 12 or equivalent qualification will be required to undertake either full-time or part-time study or training in order for the family to retain eligibility for FTB for the young person. It is expected that some young people who meet the requirement may qualify for Youth Allowance as a student and that some who do not meet the requirement will no longer qualify as an FTB child.

The FTB Part A and Youth Allowance changes will support the Council of Australian Government's Compact with Young Australians and the National Youth Participation Requirement.

Outcome 1 Budgeted Expenses and Resources

Table 2.1.1 provides an overview of the total expenses for Outcome 1, by program and administered and departmental expenses.

Table 2.1.1: Budgeted Expenses and Resources for Outcome 1


Table 2.1.1 Total expenses available for Outcome 1
  2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 1.1: Family Support
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 175,075 181,082
Other Services (Appropriation Bill No. 2) 554 -
Special Appropriations 8,009,703 -
Special Accounts - -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 86,684 55,391
Revenues from independent sources (s31) 2,943 1,899
Subtotal for Program 1.1 8,274,959 238,372
Program 1.2: Family Tax Benefit
Administered expenses
Special Appropriations 16,934,856 17,294,846
Departmental expenses  
Ordinary Annual Services (Appropriation Bill No. 1)1 397,495 25,316
Revenues from independent sources (s31) 1,345 868
Subtotal for Program 1.2 17,333,696 17,321,030
Program 1.3: Parental Payments and Care Incentives
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) - 2,350
Special Appropriations 1,464,733 1,454,453
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 29,442 16,982
Revenues from independent sources (s31) 902 582
Subtotal for Program 1.3 1,495,077 1,474,367
Outcome 1 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 175,075 183,432
Other Services (Appropriation Bill No. 2) 554 -
Special Appropriations 26,409,292 18,749,299
Special Account - -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 513,621 97,689
Revenues from independent sources (s31) 5,190 3,349
Total expenses for Outcome 1 27,103,732 19,033,769
  2008-09 2009-10
Average staffing level (number) 481 515

1 The reduction from 2008-09 to 2009-10 in departmental appropriations is primarily due to Centrelink being directly appropriated from 2009-10.

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 objective

To increase access to and timely provision of integrated services for families in a community context, 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: Policy responsibility for family law services that reside with the   Attorney-General's Department.

Program expenses

The reduction in expenses from 2008-09 to 2009-10 reflects one-off payments in special appropriations related to the budget measures for the Economic Security Strategy and Nation Building and Jobs Plan.

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation.

Program expenses 2.1.1.1

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Program 1.1: Family Support
Annual Administered Expenses:
Economic Security Strategy - public
information campaign B1 2,394 - - - -
Family Relationship Services B1 94,115 99,288 94,487 96,400 92,539
Children and Parenting Services B1 78,566 81,794 87,074 88,864 89,274
Services for Families LGA 1 B2 167 - - - -
Services for Families with children
SPP 1 B2 387 - - - -
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Back to School Bonus   2,662,071 - - - -
Economic Security Strategy   3,945,523 - - - -
Single Income Family Bonus   1,345,237 - - - -
Social Security (Administration) Act 1999
Training and Learning Bonus   56,872 - - - -
Special Account expenses:
Social Security - Services for Other
Government and Non-Government Bodies - - - - -  
Program Support2   89,627 57,290 56,613 56,720 51,941
Total program expenses   8,274,959 238,372 238,174 241,984 233,754

1 From 2009-10, these Administered Items form part of the Commonwealth Own-Purpose Expense Administered Item Children and Parenting Services.

2 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

(B2) - Annual Appropriation Bill 2 (Other Services)

Program 1.1: Key performance indicators
Family Relationship Services/Children and Parenting Services
  • Percentage and number of clients with increased knowledge and skills related to family functioning, parenting, family safety or child development
  • Percentage and number of clients satisfied that the support service they received was relevant to their circumstances and needs
  • Percentage and number of clients assisted from priority groups
Family Relationship Services
  • Number of service providers who meet accreditation requirements or relevant industry standards for service management and governance
  • Average cost per client
  • Average cost per session
Children and Parenting Services
  • Percentage and number of service sites or outlets in disadvantaged or targeted communities 1
  • Percentage and number of clients assisted to participate in an age-appropriate child/youth development activity

1 For locational-based services only. Level of disadvantage determined using Socio-Economic Indexes for Areas and other data. Only for services for which this performance indicator is appropriate.

Program 1.1 Deliverables
Family Relationship Services
  • Number of clients assisted
  • Number of sessions provided
Children and Parenting Services
  • Number of clients assisted
Family Relationships Services

Component deliverables

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Number of clients assisted - 100,000 - - -
Number of sessions provided - 170,000 - - -

1 For locational-based services only. Level of disadvantage determined using SEIFA and other data. Only for services for which this performance indicator is appropriate.


Children and Parenting Services

Component deliverables

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Number of clients assisted 1 - 415,000 - - -

1 Includes both engagement (low-intensity services, for example community playgroups) and more intensive assistance.

Program 1.2: Family Tax Benefit (FTB)

Program objective

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 and enabling them to exercise choices to balance labour force participation and child care responsibilities.

Program component objectives

Family Tax Benefit 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 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 and Medicare Australia. For information about those organisations, refer to the Department of Human Services' 2009-10 PB Statements.

Program expenses

The main drivers of the change in expenses across the forward years are changes in the economy, demographic change, indexation arrangements and the impact of policy initiatives.

The relevant policy initiatives include the cessation of payments through the Australian Taxation Office, the ceasing of fortnightly payments for recipients who do not lodge tax returns and the measures announced in the 2009-10 budget which pause the indexation of the higher income free area for Family Tax Benefit (FTB) Part A, the $150,000 primary earner income limit for FTB Part B and the family income limit for the Baby Bonus for three years.

Table 2.1.1.2: Budgeted Expenses for Family Tax Benefit

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Family Tax Benefit Part A 12,575,746 12,934,857 12,861,359 12,926,991 13,037,340
Family Tax Benefit Part B 4,359,110 4,359,989 4,351,867 4,357,829 4,477,433
Program Support1 398,840 26,184 25,874 25,924 23,740
Total program expenses 17,333,696 17,321,030 17,239,100 17,310,744 17,538,513

1 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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: Key performance indicators
Family Tax Benefit A
  • Percentage and number of families in receipt of FTB A within income test categories
Family Tax Benefit B
  • Percentage and number of families in receipt of FTB B within income test categories
Family Tax Benefit A & B
  • Total number of recipients
  • Proportion of recipients paid by instalment
  • Amount and proportion of administered outlays paid by instalment and lump sum
  • Proportion of recipients paid by lump sum
  • Proportion of recipients obtaining a qualification debt
  • Proportion of recipients obtaining a debt following reconciliation
  • Proportion of recipients obtaining a non-lodger debt
  • Service delivery agreements are in place with all service delivery agencies
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled
  • Payment accuracy
  • Percentage and number of families with children under 16 years of age receiving FTB A and/or FTB B
Program 1.2 Deliverables

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

Program 1.3: Parental Payments and Care Incentives

Program 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 to encourage all families to fully immunise their children. This supports better family functioning by improving the financial wellbeing of low and medium income families with children and supports improved child development and safety in all families by impeding the spread of infectious diseases.

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 benefit payments under this program are delivered by Centrelink and Medicare Australia. For information about those organisations, refer to the Department of Human Services' 2009-10 PB Statements.

Program expenses

The main drivers of the change in expenses across the forward years are changes in the economy, demographic change, indexation arrangements and the impact of policy initiatives.

Significant government measures also influence the forecasts, particularly the income testing of Baby Bonus from 1 January 2009, the change to Maternity Immunisation Allowance payments to encourage the immunisation of children aged four years and the introduction of Paid Parental Leave from 1 January 2011.


Table 2.1.1.3: Budgeted Expenses for Parental Payments and Care Incentives

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Administered expenses:
Paid Parental Leave - communication and evaluation B1 - 2,350 7,424 104 1,371
Special Appropriations:
A New Tax System (Family Assistance)
(Administration) Act 1999
Baby Bonus   1,410,811 1,416,520 1,129,336 860,557 874,298
Maternity Immunisation Allowance   50,696 34,517 35,253 63,220 66,143
Paid Parental Leave legislation1
Paid Parental Leave   - - 640,528 1,306,678 1,338,038
Social Security (Administration) Act 1999
Double Orphan Pension   3,226 3,416 3,485 3,574 3,652
Program Support1   30,344 17,564 17,356 17,390 15,925
Total program expenses   1,495,077 1,474,367 1,833,382 2,251,523 2,299,427

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

2 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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.

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

Program 1.3: Key performance indicators
Parental Payments and Care Incentives
Paid Parental Leave (PPL)*
  • Number of mothers for whom PPL has been paid as a proportion of all mothers in the same year
  • Proportion of families who take the full 18 weeks of PPL
  • Percentage and number of parents paid PPL by employers
Baby Bonus
  • Number of children for whom Baby Bonus has been paid as a proportion of children born in the same year
Maternity Immunisation Allowance
  • Percentage and number of children vaccinated to the highest level appropriate for their age group in the Australian community
Baby Bonus/Maternity Immunisation Allowance
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Service delivery agreements are in place with all service delivery agencies
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled

*Note that PPL will not commence until the 2010-11 financial year

Program 1.3 Deliverables

Payments are made to eligible claimants under the provisions of family assistance law through Centrelink and Medicare Australia (the Family Assistance Office). Double Orphan Pension is paid under the provisions of social security law. PPL is proposed to be paid under a new Act of Parliament.

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

Under this outcome, FaHCSIA is working with the states, territories, local governments, community organisations and the private sector to maximise access to affordable and safe rental housing for people who would otherwise have difficulty accessing private rental markets. This assistance includes public housing, community housing, the Housing Affordability Fund and the National Rental Affordability Scheme (NRAS). FaHCSIA assists people on income support and the Family Tax Benefit in private rental markets through the provision of Rent Assistance. This strategy is framed by the National Affordable Housing Agreement with the states and territories and the associated National Partnership Agreements (NPAs).

FaHCSIA works with the states and territories to ensure there are support arrangements to help those who are homeless or at risk of homelessness. The National Affordable Housing Agreement (NAHA) and the associated NPA on Homelessness frame FaHCSIA's work in addressing homelessness.

The National Housing Supply Council monitors the supply of and demand for affordable housing and provides advice to the Government.

Key enhancements to this strategy since the 2008-09 Budget

White Paper on Homelessness-'The Road Home'-A National Approach to Reducing Homelessness

In 2006 there were 105,000 homeless people in Australia, of whom around 16,000 were sleeping rough. The Government's White Paper on Homelessness outlines a plan for reducing homelessness in Australia by 2020. The specific goals of the White Paper are to halve overall homelessness and provide accommodation to all rough sleepers who seek it.

National Affordable Housing Agreement

Under the NAHA, all governments have committed to undertake reforms in the housing sector. These include: better integration of homeless and mainstream services; reduction in concentrations of disadvantage in social housing estates; improved access by Indigenous people to mainstream housing, including home ownership; and enhancing the capacity and growth of the not-for-profit housing sector.

The NAHA will provide $6.2 billion worth of assistance in the first five years. In addition, under the NPAs the Government is spending:

  • $400 million for states and territories over two years to build new social housing dwellings or redevelop existing dwellings
     
  • $400 million over four years to help homeless Australians-to be matched by state and territory governments
     
  • $150 million over five years for A Place to Call Home to provide housing for people who would otherwise be homeless-to be matched by state and territory governments.
     

Social Housing Initiative

On 3 February 2009, the Prime Minister and the Treasurer jointly announced the Government's $42 billion Nation Building - Economic Stimulus Plan which includes a further $6.4 billion boost for social housing over four years-$6 billion for new construction and $400 million over two years for essential repairs and maintenance that will enable vacant or run-down properties to be renewed for continued occupancy. This new funding will build around 20,000 new dwellings as well as renewing around a further 47,000 existing public housing dwellings.

The Commonwealth Social Housing Initiative will benefit those on the public housing waiting list who are in the highest need, including age and disability pensioners, Indigenous people and women with children escaping domestic violence.

Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

Following the COAG Federal Financial Relations Framework reforms, the Treasury is responsible for National Specific Purpose Payments, National Partnership Payments to and through the states and territories and general revenue assistance. The Treasury holds the appropriation for these items and reports financial details accordingly.

The non-financial performance of the corresponding programs remains the responsibility of FaHCSIA. As a result, financial information for each affected program will not be complete for the 2008-09 financial year within a single set of PB Statements. Complete figures can be found in Budget Paper No. 3, Australia's Federal Relations.

COAG performance information can be found at the end of Section 2: Outcomes and planned performance, Contributions to Outcome 2. This performance information will be monitored and reported on by the COAG Reform Council.

Outcome 2 Budgeted Expenses and Resources

Table 2.1.2 provides an overview of the total expenses for Outcome 2 by program and administered and departmental expenses.


Table 2.1.2: Budgeted Expenses and Resources for Outcome 2

Outcome 2: Housing

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 2.1: Affordable Housing
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 11,654 23,505
Special Accounts 3,500 7,693
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 9,913 8,213
Revenues from independent sources (s31) 436 282
Subtotal for Program 2.1 25,503 39,693
Program 2.2: Housing Assistance and Homelessness
Prevention
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 85,330 105,954
Other Services (Appropriation Bill No. 2) 591,737 -
Special Accounts 3,433 187
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 88,839 27,532
Revenues from independent sources (s31) 1,463 944
Subtotal for Program 2.2 770,802 134,617
Outcome 2 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 96,984 129,459
Other Services (Appropriation Bill No. 2) 591,737 -
Special Accounts 6,933 7,880
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 98,752 35,745
Revenues from independent sources (s31) 1,899 1,226
Total expenses for Outcome 2 796,305 174,310
  2008-09 2009-10
Average staffing level (number) 197 209

1 The reduction from 2008-09 to 2009-10 in departmental appropriations is primarily due to Centrelink being directly appropriated from 2009-10.

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 objective

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

Program component objectives

National Rental Affordability Scheme

To subsidise the supply of affordable safe rental dwellings by payments to contracted organisations to assist Australians with low and medium incomes to access affordable, safe and sustainable housing.

Other Services - Services for other Government and Non-Government Bodies (Special Account )

The purpose of this Special Account is for expenditure in connection with services performed on behalf of other governments and bodies that are not FMA agencies under the authority of section 20 of the Financial Management and Accountability Act 1997. This includes the National Rental Affordability Scheme.

Linked to: Payments under National Agreements are made by the Treasury. For information about these payments, refer to the Treasury's 2009-10 PB Statements and Budget Paper No.3, Australia's Federal Relations.

Program expenses

The increase in expenses for this program reflects the build-up of incentives allocated for subsidised-rental housing and the effect of indexation. The National Rental Affordability Scheme Refundable Tax Offsets are delivered through the Australian Tax Office and are not part of the FaHCSIA budget.


Table 2.1.2.1: Budgeted Expenses for Affordable Housing

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Administered expenses
National Rental Affordability Scheme1 B1 11,654 23,505 32,622 49,679 50,561
Special Account expenses:
Other Services - Services for Other
Government and Non-Government Bodies   3,500 7,693 10,629 15,871 15,828
Program Support   10,349 8,495 8,395 8,410 7,702
Total program expenses   25,503 39,693 51,646 73,960 74,091

1 Indexation for the NRAS administered funds will be applied through additional estimates when indexation parameters have been received from the Treasury.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 2.1 Key Performance Indicators
National Rental Affordability Scheme
  • Proportion of low income households in rental stress (NRAS Households)
  • Proportion of all rental dwellings affordable by low-income households
  • Amount paid to contracted organisations
Program 2.1 Deliverables
National Rental Affordability Scheme

Activities include making incentives available to non-profit housing growth sector organisations to construct new dwellings or rehabilitate condemned dwellings, manage tenancies and offer rental rates 20 per cent below market rates.

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of incentives planned 3,500 7,500 14,000 25,000 -
Round 1 incentives allocated/reserved 1,653 1,570 404 172 -
Round 2 incentives offered 493 - - - -
Number of dwellings available for rental 1 - - - - -

1 The target is dependent on the previous years allocations, therefore cannot be predicted

Program 2.2: Housing Assistance and Homelessness Prevention

Program objective

To increase rental affordability for low and moderate income households by providing payments to public housing and community housing providers to build, buy or repair dwellings and providing rent assistance to eligible tenants. To reduce the cost and increase the supply of housing by helping local governments, local government associations, state and territory governments in conjunction with developers to improve planning and regulatory processes and help defray the cost of housing infrastructure. To prevent homelessness and reduce its impact, particularly on families and young people, through funding to support innovative prevention and early intervention initiatives.

Program component objectives

Rent Assistance

To make payments to low and medium income Australians in receipt of income support or family payments to assist with the costs of renting private accommodation.

Housing Assistance (Bill 2)

To increase the supply of affordable safe housing to low and medium income households in each state and territory under the Nation Building - Economic Stimulus Plan.

Housing Assistance and Homelessness Prevention (Bill 1)

To reduce the cost and increase the supply of housing by: helping local governments, local government associations, and state and territory governments in conjunction with developers to improve planning and regulatory processes; and helping defray the cost of housing infrastructure. To prevent homelessness and reduce its impact, particularly on families and young people, through funding to support innovative prevention and early intervention initiatives. 

Housing Affordability Fund

Placement of the Housing Affordability Fund (which is a component of the Housing Assistance and Homelessness Prevention program), within Outcome 2, is currently under review.

Linked to: Payments under National Agreements are made by the Treasury. For information about these payments, refer to the Treasury's 2009-10 PB Statements and Budget Paper No. 3, Australia's Federal Relations.

Rent Assistance is delivered by Centrelink and the DVA together with personal benefits payments. For information about those organisations, refer to the Department of Human Services' and DVA's 2009-10 PB Statements.

Program expenses

The reduction from 2008-09 to 2009-10 reflects the new framework for Federal Financial Relations. Under these arrangements payments to states and territories will now be made by the Treasury.

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation.

Table 2.1.2.2: Budgeted Expenses for Housing Assistance and Homelessness Prevention

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Economic Security Strategy - public information campaign B1 6,430 - - - -
Housing Assistance and Homelessness Prevention1 B1 78,900 105,954 106,255 181,905 184,472
A Place to Call Home SPP B2 2,427 - - - -
Commonwealth State Housing Agreement SPP B2 492,455 - - - -
Social Housing Subsidy SPP B2 964 - - - -
Supported Accommodation Assistance Programme SPP B2 90,469 - - - -
Innovation and Investment Fund B2 5,422 - - - -
Special Account:
SAAP Data and Program Evaluation
Fund Special Account   3,433 187 - - -
Program Support   90,302 28,476 28,140 28,193 25,818
Total program expenses   770,802 134,617 134,395 210,098 210,290

1 Placement of the Housing Affordability Fund (which is a component of the Housing Assistance and Homeless Prevention program) within Outcome 2, is currently under review.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

(B2) - Annual Appropriation Bill 2 (Other Services)

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 the 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 2.1.2.3: Cash Projections for Rent Assistance

 

2008-09
$'000          
2009-10
$'000          
FaHCSIA: A New Tax System (Family Assistance) (Administration) Act 1999
Family Tax Benefit Part A 1,244,657 1,319,782
FaHCSIA: Social Security (Administration) Act 1999
Age Pension 419,108 447,952
Bereavement Allowance 63 65
Carer Payment 35,948 44,585
Disability Support Pension 424,194 448,803
Special Benefit 3,910 4,150
Widow B Pension 5 11
Wife Pension (Age) 1,315 1,241
Wife Pension (DSP) 1,954 1,693
DEEWR: Social Security (Administration) Act 1999
Austudy 19,644 21,932
Mature Age Allowance 28 -
Newstart Allowance 270,742 322,713
Parenting Payment (Single) 12,313 13,601
Parenting Payment (Partnered) 187 120
Partner Allowance 115 120
Sickness Allowance 5,374 5,330
Widow Allowance 21,747 21,172
Youth Allowance 130,343 144,662
DEEWR: Abstudy (Student Assistance Act 1973)           2,420 2,744
DVA: Veterans' Entitlements Act 19861 39,738 40,970
Total Cash Forecasts - Whole of Government 2,633,805 2,841,646

1 Rent Assistance is paid to eligible service pension and income support supplement recipients

Program 2.2 Key Performance Indicators
Rent Assistance
  • Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance
  • Proportion of Rent Assistance recipients receiving the maximum rate of assistance
  • Number of recipients
  • Administered outlays
  • Payment accuracy1
Housing Assistance
  • Proportion of low income households in rental stress
  • Proportion of Australians who are homeless
  • Proportion of homes sold or built that are affordable by low and medium income households
Housing Affordability Fund
  • Proportion of dwelling lots sold that deliver the savings required under project funding agreements
  • Proportion of projects in which goals are fully met
  • Proportion of sites/dwellings for which practical completion certificates have been accepted
Rent Assistance/Housing Assistance - National Affordable Housing Agreement/ Housing Affordability Fund
  • Service delivery agreements are in place with all service delivery agencies
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled
Program 2.2 Deliverables
Rent Assistance

Rent Assistance is combined with the claimant's primary payment and paid under the legislation relevant to that payment. For families with children aged under 16, Rent Assistance is combined with the claimant's FTB Part A.

Housing Assistance and Homelessness Prevention

Deliverables include activities that reduce the burden of infrastructure charges on developers and encourage best practice in local government in respect of speedy residential development assessments. Also includes activities that assist families and young people by preventing and responding to homelessness.

1 Rent Assistance expenditure (payment it is attached to such as FTB) is calculated differently to number of recipients (primary payment numbers not necessarily FTB)

Housing Assistance

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of infrastructure and reform projects completed 1 - - - - -

1 No specific target, funding is to projects aimed at delivering value for money to the value of the program.


Homelessness Prevention

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of individual's assisted - 8,250 - - -
Number of families assisted - 6,000 - - -
COAG Performance Indicators - National Affordable Housing Agreement-Homelessness National Partnership*
  • Proportion of low income households in rental stress
  • Proportion of homes sold or built that are affordable by low and moderate income households
  • Proportion of Australians who are homeless
  • Proportion of people experiencing repeat periods of homelessness (rough sleeping)
  • Proportion of Australian households owning or purchasing a home
  • Proportion of Indigenous households owning or purchasing a home
  • Proportion of Indigenous households living in overcrowded conditions
  • Proportion of Indigenous households living in houses of an acceptable standard
  • Number of families who maintain or secure safe and sustainable housing following family violence
  • Increase in the number of people exiting care and custodial settings into secure and affordable housing
  • Reduce the number of people exiting social housing and private rental into homelessness
  • Number of young people (12 to 18 years) who are homeless or at risk of homelessness who are re-engaged with family, school and work
  • Number of children (under 12 years) who are homeless or at risk of homelessness who are provided with additional support to maintain contact with their school
  • Number of families who are homeless or at risk of homelessness who receive financial advice, counselling and/or case management
  • Number of people who are homeless or at risk who are provided with legal services
  • Number of staff of specialist homeless services provided with formal training and development opportunities
COAG Performance Indicators-Nation Building and Economic Stimulus Plan*
  • Construction of around 20,000 dwellings by 30 June 2012
  • The repair of around 2,500 dwellings, considered unfit for occupation, to increase the net social housing stock by 30 June 2010
  • Around 3,500 dwellings will start in 2009 and a further 10,000 in the first half of 2010, and they will be 75 per cent completed by December 2010
  • The repairs and maintenance will all be started in 2009

*COAG has agreed to these performance indicators.

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

This outcome seeks to build stronger communities and promote social inclusion, participation and resilience. Community programs complement the income support system by providing pathways to economic participation and services for those in greatest need.

Vulnerable individuals and families are supported to build financial capability and resilience. The range of assistance includes income management support, emergency relief payments, financial counselling, information and education. Key target groups for assistance include people with low incomes, those affected by the global financial crisis and those accessing income management support.

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. FaHCSIA is also leading the development of a National Compact with the community sector, demonstrating the Government's commitment to a better relationship.

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

This outcome includes the reimbursement for Great Southern Rail for concessional fares. It also includes Utilities Allowance, which for most recipients will be replaced by the new Pension Supplement as well as the Bereavement Allowance, which will benefit from increases under the Government's Secure and Sustainable Pension Package.

Key enhancements to this strategy since the 2008-09 Budget

Building financial resilience - financial management services

In February 2009, emergency relief funding was doubled in recognition of increased demand for emergency relief and financial counselling in 2008 and expected increased demand in 2009 as unemployment rises.

From 1 July, additional funding will be provided for a suite of money management initiatives including innovative projects such as no-interest loans and matched savings, and information and education to help build financial resilience. The funding will provide community and charitable organisations with greater capacity to respond effectively to the needs of individuals and families in crisis and prevent future financial stress.

Welfare payments reform

Welfare payments reform measures help to address issues of child neglect, community dysfunction and school attendance, while building financial management and budgeting skills for families.

In 2009-10, additional funding will be provided to continue income management for some 15,500 people in 73 remote Indigenous communities as part of the Northern Territory Emergency Response (NTER), while the NTER measures are redesigned to ensure they conform with the Racial Discrimination Act 1975 (RDA).

In 2009-10, additional funding will also be provided to continue the Income Management for Child Protection initiative in the Kimberley region of Western Australia and in metropolitan districts of Perth. This initiative gives the Western Australian Government the ability to ask Centrelink to manage a family's income support and family payments to ensure payments are spent in the best interests of children. In Western Australia individuals are also able to enter into income management voluntarily.

The continuation of financial management support services will also help people accessing income management or in financial crises to build financial management and budgeting capacity.

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 2009.

Community support, volunteering and third sector capacity

The Community Investment Program will help Australians to participate in the community by supporting not-for-profit organisations to deliver responsive and integrated services that meet local community needs. This program will also enhance the capacity of not-for-profit organisations to support volunteers. Volunteering increases community capacity and social inclusion as volunteers work with not-for-profit organisations to provide essential supports for vulnerable people.

As part of the broader CDEP reforms, the Community Support Service will connect Indigenous people and their families in identified urban and regional areas with a range of services including early childhood, education, training, employment, financial management, housing, health and legal services.

FaHCSIA will also continue to work closely with the not-for-profit sector to improve and strengthen the relationship between the sector and the Government through development of a National Compact.

Supporting Australians affected by disaster

In acknowledging the devastating impact of the bushfires in Victoria and major flooding in Queensland, the Government is delivering recovery packages that include financial assistance to eligible individuals (such as the Australian Government Disaster Recovery Payment, Funeral/Memorial Assistance and Income Recovery Subsidy) additional Emergency Relief funding, and counselling and other support to local communities and businesses. These packages provide immediate injections of funds to affected communities to assist economic, social and psychological recovery. FaHCSIA is coordinating the Commonwealth Government's response to the Victorian bushfire recovery.

Outcome 3 Resource statement

Table 2.1.3 provides an overview of the total expenses for Outcome 3, by program and administered and departmental expenses.


Table 2.1.3: Total expenses for Outcome 3

Outcome 3: Community Capability and the Vulnerable

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 3.1: Financial Management
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 65,598 109,656
Special Accounts 182,011 192,163
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 24,684 20,258
Revenues from independent sources (s31) 1,076 695
Subtotal for Program 3.1 273,369 322,772
Program 3.2: Community Investment
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 62,722 71,261
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 25,446 21,077
Revenues from independence sources (s31) 1,120 723
Subtotal for Program 3.2 89,288 93,061
Program 3.3: Income Support for Vulnerable People
Administered expenses
Special Appropriations 65,448 66,103
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 11,737 1,237
Revenues from independent sources (s31) 66 42
Subtotal for Program 3.3 77,251 67,382
Program 3.4: Support for People in Special Circumstances
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 28,060 5,455
Special Appropriations 140,797 32,959
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 26,541 4,846
Revenues from independent sources (s31) 257 166
Subtotal for Program 3.4 195,655 43,426
Program 3.5: Supplementary Payments and Support for Income Support Recipients
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 7,878 8,298
Other Services (Appropriation Bill No. 2) 109,869 -
Special Appropriations 1,145,073 283,204
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 1,790 1,478
Revenues from independent sources (s31) 79 51
Subtotal for Program 3.5 1,264,689 293,031
Outcome 3 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 164,258 194,670
Other Services (Appropriation Bill No. 2) 109,869 -
Special Appropriations 1,351,318 382,266
Special Accounts 182,011 192,163
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 90,198 48,896
Revenues from independent sources (s31) 2,598 1,677
Total expenses for Outcome 3 1,900,252 819,672
  2008-09 2009-10
Average staffing level (number) 289 300

1 The reduction from 2008-09 to 2009-10 in departmental appropriations is primarily due to Centrelink being directly appropriated from 2009-10.

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: Financial Management

Program 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, asset-building incentives such as matched savings and low-interest loans; and finding ways to minimise the impacts of problem gambling.

Income Management

Income management of a proportion of an individual's welfare payment aims to ensure that people who receive welfare payments use those payments in a socially responsible way and meet community norms that children and vulnerable people will be protected. Income management offers a budgeting tool for parents and helps to ensure that welfare payments are best used to feed, clothe, house and provide for the education of their children. Individual entitlements are held and Centrelink makes payments on behalf of the individual under section 123VA of the Social Security (Administration) Act 1999.

Linked to: School enrolment and Attendance Measure administered by DEEWR, refer to DEEWR's 2009-10 PB Statements.

Program expenses

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation. The reduction in 2011-12 for Financial Management Information and Assistance reflects one-off additional funding for extending emergency relief, financial counselling and asset building incentives which is provided until 2010-11. The reduction in the Income Management Special Account in 2010-11 recognises the Government's decision to continue income management for a further 12 months in 2009-10 while the measure is redesigned to be consistent with the RDA.

Table 2.1.3.1: Budgeted Expenses for Financial Management

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Child Protection Pilot - WA B1 345 100 - - -
Financial Management
Information and Assistance B1 65,253 109,556 105,257 46,942 47,882
Special Account Expenses:
Income Management - Special
Account   182,011 192,163 6,396 647 -
Program Support   25,760 20,953 20,706 20,744 18,996
Total program expenses   273,369 322,772 132,359 68,333 66,878

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 3.1 Key Performance Indicators
Financial Management Information and Assistance
  • Percentage and number of Commonwealth Financial Counselling clients with increased money management knowledge and skills
  • Percentage and number of clients whose immediate financial crises or problems are resolved
Income Management
  • Number of people on Income Management
  • Amount and percentage of income managed funds spent on priority needs
Program 3.1 Deliverables
Financial Management Information and Assistance

Activities to be delivered are financial counselling, information and education, crisis assistance, incentives such as matched savings and research into minimising problem gambling.

Financial Management Information and Assistance

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Financial Management Program clients - 760,000 - - -

Program 3.2: Community Investment

Program 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. The measures within this program aim to build the capacity of communities and organisations to be able to identify and address community needs, facilitate partnerships that result in better services, facilitate disaster preparedness, assist and support volunteers, develop strategies to increase awareness of access to services, and support organisations in the delivery of services to people, especially new clients.

Program expenses

The change in expenses across the forward years reflects the estimates provided in the policy initiatives and the effect of indexation.

Table 2.1.3.2: Budgeted Expenses for Community Investment

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:            
Community Investment B1 62,502 71,068 72,073 68,347 69,519
Disaster Preparedness B1 220 193 - - -
Program Support   26,566 21,800 21,542 21,583 19,765
Total program expenses   89,288 93,061 93,615 89,930 89,284

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 3.2 Key Performance Indicators
Community Investment
  • Percentage and number of individuals and families assisted to participate in a civic or community activity
  • Percentage and number of individuals assisted from Indigenous/Culturally and Linguistically Diverse backgrounds
  • Percentage and number of funded projects that developed partnerships
  • Average cost per individual directly assisted or participating (including volunteers)
Program 3.2 Deliverables

Activities to be delivered are improved access to information and resources, disaster preparedness, volunteering participation and support, facilitate access to support services, advocacy, including advice to Government.


 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of volunteers assisted through Volunteer Grants Program and Volunteer Management Program - 70,000 70,000 70,000 -
Number of individuals assisted (excluding volunteers) - 100,000 100,000 100,000 -

Program 3.3: Income Support for Vulnerable People

Program objective

To make payments to assist financially, 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. For information about Centrelink, refer to the Department of Human Services' 2009-10 PB Statements.

Program expenses

The change in expenses across the forward years reflects changes in the economy, customer trends, indexation arrangements and the impact of policy initiatives.

The growth between 2008-09 and 2009-10 is largely offset with the funds being terminated for the Economic Security Strategy measures.


Table 2.1.3.3: Budgeted Expenses for Income Support for Vulnerable People

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Special Appropriations:
Social Security (Administration) Act 1999
Special Benefit 65,448 66,103 73,022 79,094 84,842
Program Support1 11,803 1,279 1,265 1,267 1,160
Total program expenses 77,251 67,382 74,287 80,361 86,002

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 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

Program 3.3 Key Performance Indicators
Income Support for Vulnerable People

(Special Benefit)

  • Proportion of recipients with activity test requirements
  • Proportion of recipients receiving less than the full rate due to the means test
  • Number of recipients
  • Duration on payment
  • Payment accuracy - total and percentage correctly paid
  • Agreements with service providers are in place
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled
  • Administered outlays
Program 3.3 Deliverables

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

Program 3.4: Support for People in Special Circumstances

Program 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 this time. This payment is subject to the pension income and assets test.

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

To make payments to individuals and families in special circumstances. These include ex-gratia payments to victims and family members of the 2002 and 2005 Bali Terrorist Attacks, payments under section 33 of the FMA Act and the Reconnecting People Assistance Package (RPAP), which provides ex-gratia assistance to Australian citizens or permanent residents who have been adversely affected as a direct result of inappropriate immigration detention. RPAP supports eligible individuals in re-establishing their lives and reconnecting with families and communities.

Linked to: Personal benefits payments under this program are delivered by Centrelink. For information about Centrelink, refer to the Department of Human Services' 2009-10 PB Statements. National Disaster Recovery Relief arrangements are administered through the Attorney-General's Department. Refer to the 2009-10 Attorney-General's PB Statements.

Program expenses

The reduction in expenses from 2008-09 to 2009-10 reflects one-off funding provided in 2008-09 for the 2008-09 Queensland floods and Victorian bushfires.

The change in expenses across the forward years reflects customer and indexation trends for Bereavement Allowance.


Table 2.1.3.4: Budgeted Expenses for Support for People in Special Circumstances

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Payments under Special
Circumstances B1 28,060 5,455 1,086 1,086 1,086
Special Appropriations:
Social Security (Administration) Act 1999
Australian Government Disaster
Recovery Payment   137,838 30,143 20,169 20,169 20,169
Bereavement Allowance   2,959 2,816 3,306 4,060 5,393
Program Support1   26,798 5,012 4,953 4,962 4,544
Total program expenses   195,655 43,426 29,514 30,277 31,192

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 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 3.4 Key Performance Indicators
Bereavement Allowance/Payments under Special Circumstances/Australian Government Disaster Recovery Payment
  • Number of recipients
  • Administered outlays
Bereavement Allowance/Australian Government Disaster Recovery Payment
  • Timeliness of receipt of assistance
Program 3.4 Deliverables

Payments are made to eligible claimants under the provisions of social security law and the FMA Act.

Program 3.5: Supplementary Payments and Support for Income Support Recipients

Program 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 for Concessional Fares

To reimburse Great Southern Rail for the provision of concessional fares on their 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

To make payments to income support recipients to assist with household expenses.

Linked to: Personal benefits payments under this program are delivered by Centrelink. For information about Centrelink, refer to the Department of Human Services' 2009-10 PB Statements.

Program expenses

The reduction from 2008-09 to 2009-10 reflects the new framework for the Federal Financial Relations. Under these arrangements payments for the Compensation for Extension of Fringe Benefits will now be made by the Treasury. The reduction also reflects one-off funding for the Farmer's Hardship Bonus.

Table 2.1.3.5: Budgeted Expenses for Supplementary Payments and Support for Income Support Recipients

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Reimbursement to Great Southern
Rail for Concessional Fares B1 7,878 8,148 8,355 8,518 8,233
Secure and Sustainable Pensions - communications campaign B1 - 150 - - -
Compensation for Extension of Fringe Benefits to pensioners and older long-term allowees and beneficiaries SPP B2 109,869 - - - -
Special Appropriations:
Social Security (Administration) Act 1999
Farmers' Hardship Bonus   21,400 - - - -
Utilities Allowance   1,123,673 283,204 11,654 12,054 12,418
Program Support1   1,869 1,529 1,511 1,513 1,386
Total program expenses   1,264,689 293,031 21,520 22,085 22,037

1 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

(B2) - Annual Appropriation Bill 2 (Other Services)

Program 3.5 Key Performance Indicators
Utilities Allowance
  • Payment accuracy

Utilities Allowance/Reimbursement to Great Southern Rail Southern Rail for Concessional Fares

  • Number of recipients
  • Amount paid
Program 3.5 Deliverables
Reimbursement to Great Southern Rail for Concessional Fares
  • The level of reimbursement is demand-driven and is not able to be forecast for forward years.
Utilities Allowance
  • Payments are made to eligible claimants under the provisions of social security law through Centrelink. 

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 this outcome is the payment of the Age Pension and associated supplements to senior Australians, who are unable to fully support themselves. Key drivers of Age Pension expenditure are demographic change, economic conditions, e.g. the global financial crisis, inflation and wages growth, and the impact of policy initiatives.

FaHCSIA works with states and territories to ensure pensioners and certain longer-term allowees receive concessional treatment under a range of programs provided by state and territory governments. This outcome includes work to maximise opportunities for eligible seniors from one state or territory to access reciprocal transport concessions in another.

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

Broadband for Seniors is also funded under this Outcome.

Key enhancements to this strategy since the 2008-09 Budget

A Secure and Sustainable Pensions package

The Secure and Sustainable Pensions package will improve adequacy, security and flexibility for people receiving Age Pension, Wife Pension and Widow B Pension, and will enhance the overall delivery of the strategic objective of this outcome. Pensioners on these payments (if resident in Australia) will benefit from increased payment rates, the new Pension Supplement and new indexation arrangements. Under the new system Commonwealth Seniors Health Card holders and DVA Gold Card holders will benefit from the Senior Supplement.

The Secure and Sustainable Pensions package will deliver a total increase of $32.49 a week for singles and $10.14 a week for couples combined on the maximum rate of payments. This will achieve a higher single pension rate relative to the rate for couples which will ensure that single people on the maximum rate of pension always receive 66.3 per cent of the combined couple rate. The package also includes improvements to indexation to reflect the particular costs of living faced by pensioners, a simpler structure for pension payments and more flexibility to provide pensioners with a secure basis for effective planning and budgeting.

From 20 September 2009, the income test for pensions will be tightened for new entrants to better target assistance. A new work bonus will provide pensioners on the new system with immediate incentives for paid employment. Transitional arrangements will ensure that all existing pensioners have their existing entitlements maintained in real terms and receive on 20 September 2009 an increase to their payments of $10.14 per week for single pensioners and $10.14 per week for a couple combined. These increases will be maintained in real terms through indexation by the Consumer Price Index.

In addition, the Secure and Sustainable Pensions package will introduce a new income test concession for employment income to provide an incentive for age pensioners who choose to increase their incomes through paid work. The Pension Bonus Scheme will be closed to new entrants, while ensuring that people already registered can remain in the scheme and claim pension and their bonus when they eventually finish work.

The package also contains reforms that respond to current fiscal constraints, and are aimed at ensuring the pension system remains sustainable into the future, given the ageing of the population.

Commencing 1 July 2017, the qualifying age for 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 expectancies of senior Australians. When the Age Pension was first introduced in 1909, a man retiring at age 65 would have expected to spend 11 years in retirement. By 2017 it is estimated that a 65 year old man could expect to spend 19.5 years in retirement. By 2017 it is expected that a 65 year old woman can expect to spend 23.5 years in retirement.

Economic Security Strategy

As part of the $10.4 billion Economic Security Strategy to strengthen the Australian economy in the face of the global financial crisis, the Government delivered a $4.8 billion package to provide pensioners with immediate financial help in the lead-up to a comprehensive reform of the pension system. The assistance was made available in December 2008 through a payment of $1,400 to single pensioners and $2,100 to couples.

The global financial crisis significantly reduced the private income and assets of many seniors. The Age Pension system is responding as intended to provide further assistance to seniors where it is needed. Many seniors received an increased rate of Age Pension while others become became eligible for Age Pension for the first time. The FaHCSIA portfolio made adjustments to the pension system to assist seniors, including those receiving a part-rate Age Pension. These adjustments included special and regular updates of the values of pensioner shares and managed investments used in pension assessments, and reductions in the social security income test deeming rates to reflect lower returns on pensioner investments. Deeming rates have been reduced in November 2008, January 2009 and March 2009. The deeming rates have been halved in this period to two per cent, for the lower deeming rate, and three per cent for the upper deeming rate.

The Government also suspended the minimum drawdown requirement for account based superannuation pensions from January 2009. This relief may, through the operation of the income test, result in some people receiving increased Age Pension payments.

Seniors were able to access the FaHCSIA-funded Centrelink Financial Information Service for information on how they might consider adjusting their financial arrangements in response to the impact of the global financial crisis.

National Reciprocal Transport Concessions

The Government has progressed implementation of National Reciprocal Transport Concessions for State Seniors Card holders who access public transport services outside their home state. $50 million has been provided over four years to implement this plan. The scheme commenced from 1 January 2009 in New South Wales, Victoria, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory. Discussions with the Western Australian and Queensland Governments are continuing. In the meantime, Queensland is offering concessions on its urban public transport to interstate Seniors Card holders. This measure is being progressed through a National Partnership Agreement.

Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

Following the COAG Federal Financial Relations Framework reforms, the Treasury is responsible for National Specific Purpose Payments (NSPPs), National Partnership (NP) payments to and through the states and territories and general revenue assistance. The Treasury holds the appropriation for these items and reports financial details accordingly.

The non financial performance of the corresponding programs remains the responsibility of FaHCSIA. As a result, financial information for each affected program will not be complete for the 2008-09 financial year within a single set of PB Statements. Complete figures can be found in Budget Paper No. 3, Australia's Federal Relations.

COAG performance information can be found at the end of Section 2: Outcomes and planned performance, Contributions to Outcome 4. This performance information will be monitored and reported on by the COAG Reform Council.

Outcome 4 Resource statement

Table 2.1.4 provides an overview of the total expenses for Outcome 4, by program and administered and departmental expenses.

Table 2.1.4: Total expenses for Outcome 4

Outcome 4: Seniors

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 4.1: Income Support for Seniors
Administered expenses
Special Appropriations 28,245,418 29,341,154
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 345,226 18,603
Revenues from independent sources (s31) 988 638
Subtotal for Program 4.1 28,591,632 29,360,395
Program 4.2: Allowances, Concessions and Services for Seniors
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 7,726 5,000
Special Appropriations 484,803 158,246
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 6,614 5,476
Revenues from independent sources (s31) 291 188
Subtotal for Program 4.2 499,434 168,910
Outcome 4 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 7,726 5,000
Special Appropriations 28,730,221 29,499,400
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 351,840 24,079
Revenues from independent sources (s31) 1,279 826
Total expenses for Outcome 4 29,091,066 29,529,305
  2008-09 2009-10
Average staffing level (number) 136 152

1 The reduction from 2008-09 to 2009-10 in departmental appropriations is primarily due to Centrelink being directly appropriated from 2009-10.

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 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.

Pension Supplement

To make payments to certain pension recipients to assist with household and living expenses.

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 the Department of Veteran's Affairs (DVA). For information about these organisations, refer to the Department of Human Services' and DVA's 2009-10 PB Statements.

Program expenses

The change in expenses across the forward years reflects changes in the economy, customer trends, and the impact of policy initiatives, including the introduction of the Pension Supplement as part of the Secure and Sustainable Pensions Package.

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

Table 2.1.4.1: Budgeted Expenses for Income Support for Seniors

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Special Appropriations:
Social Security (Administration) Act 1999
Age Pension 28,080,203 29,193,728 31,574,317 33,674,697 36,049,698
Widow B Pension 7,998 7,695 7,733 7,525 7,455
Wife Pension (Age) 157,217 139,731 126,105 118,767 109,189
Program Support1 346,214 19,241 19,013 19,049 17,444
Total program expenses 28,591,632 29,360,395 31,727,168 33,820,038 36,183,786

1 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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 Key Performance Indicators
Age Pension
  • Ratio of assessed income of pensioners to their total income
  • Percentage and number of recipients with earnings
  • Percentage and number of new entrants with earnings
  • Payment accuracy - total and percentage of outlays correctly paid
  • Percentage and number of senior Australians who receive payment
Wife Pension (Age)
  • Ratio of current number of Wife Pension (Age) recipients to the number of Wife Pension (Age) recipients at 1 July 1995
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
  • Agreements with service providers are current
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled
Program 4.1 Deliverables

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

Program 4.2: Allowances, Concessions and Services for Seniors

Program 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 their access to information and community resources.

Program component objectives

Seniors Concession Allowance

To make payments to self-funded retirees with a Commonwealth Seniors Health Card to assist with household costs.

Telephone Concession Allowance for Commonwealth Seniors Health Card Holders

To make payments to self-funded retirees with a Commonwealth Seniors Health Card to assist with telephone costs.

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. For information about Centrelink, refer to the Department of Human Services' 2009-10 PB Statements.

Program expenses

The reduction in expenses from 2008-09 to 2009-10 reflects one-off payments related to the budget measures for the Economic Security Strategy.

The Seniors Supplement announced in this Budget as part of the Secure and Sustainable Pensions package replaces Seniors Concessions Allowance and Telephone Allowance for Commonwealth Senior Health Card Holders from September 2009.

Table 2.1.4.2: Budgeted Expenses for Allowances, Concessions and Services for Seniors

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Broadband for Seniors B1 5,000 5,000 5,000 - -
Economic Security Strategy - public information campaign B1 2,726 - - - -
Special Appropriations:
Social Security (Administration) Act 1999
Seniors Concession Allowance   466,559 31,875 - - -
Seniors Supplement   - 122,398 171,744 178,933 185,152
Telephone Allowance for Commonwealth Senior Health Card Holders   18,244 3,973 - - -
Program Support 1   6,905 5,664 5,596 5,607 5,135
Total program expenses   499,434 168,910 182,340 184,540 190,287

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 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 4.2 Key Performance Indicators
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
Seniors Concession Allowance/Telephone Concession Allowance/Seniors Supplement
  • Number of recipients
  • Administered outlays
Program 4.2 Deliverables
Payments
  • Payments are made to eligible claimants under the provisions of social security law through Centrelink.
Broadband for Seniors
  • Number of seniors' internet kiosks established.
 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of seniors' internet kiosks established - 1,100 600 - -
COAG Performance Indicators-National Partnership Agreement on certain concessions for pensioners and seniors*
  • States and territories will provide assurance by no later than 30 June of each year that in respect of the next financial year
  • Certain concessions for pensioners will be provided without discrimination
  • Designated Public Transport Concessions will be provided to out-of-state Seniors Card holders

*COAG has agreed to these performance indicators.

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

This outcome encompasses the provision of income support payments to people with disability and their carers, including the DSP, Carer Allowance and Carer Payment.

FaHCSIA is working with the states to reform and improve the delivery of all disability services, including those covered by the National Disability Agreement and to establish an overarching National Disability Strategy. The National Disability Strategy will serve as an overarching policy statement that sets the national view, direction and priorities to address the barriers that are faced by Australians with disability and increases the social, economic and cultural participation of people with disability and their carers. The implementation of nationally consistent disability parking and companion card schemes and the provision of outside school hours care places will enable people with disability and their carers to increase their participation in the community.

FaHCSIA funds a number of services for people with disability and their carers, including supported employment services, the Personal Helpers and Mentors scheme, support services for children with autism spectrum disorder, and respite services.

Key enhancements to this strategy since the 2008-09 Budget

Secure and Sustainable Pensions

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

The Secure and Sustainable Pensions Package will deliver a total increase of $32.49 per week for singles and $10.14 for couples on maximum rates of payment.

The Government recognises the vital work that carers do for the people they care for and the contribution they make to the community more generally.

As a part of the pension reform package, the Government will introduce a new annual Carer Supplement which is payable to carers in receipt of Carer Payment and/or Carer Allowance. The Carer Supplement will provide $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.

The Carer Supplement will replace the payment of ad hoc bonuses to carers. This will provide carers with more certainty about their future financial circumstances, thereby allowing carers to better budget and plan their household finances and expenditures.

The existing Child Disability Assistance Payment of $1,000 a year for carers who are paid Carer Allowance (child) will continue to be paid.

Consistent with the extension of Utilities Allowance to DSP recipients in March 2008 and the one-off payments to disability support pensioners in the October 2008 Economic Security Package, people on DSP have also been included in the pension reform package. They will benefit from the pension increases and the simpler and fairer system of payments that the Government is creating. As so many DSP recipients are single, the legislation to ensure that the single pension rate will always be equivalent to 66.3 per cent of the couple combined rate of pension will be of particular benefit to them.

Disability Support Pension -better and fairer assessments

In light of the current economic environment, it will be important to ensure that the DSP is carefully targeted and will be more sustainable in the long term. To this end, the Government will be improving the assessment processes that determine eligibility for the DSP so that only people who fully meet the eligibility criteria receive it and that all information relevant to their circumstances is appropriately assessed.

DSP assessments will be undertaken by senior Job Capacity Assessors who will be supported by specialist medical and rehabilitation advice from a Health Professional Advice Unit and treating doctors and who will have access to better information about work and employment service history. New work capacity guidelines will be introduced that focus on a person's ability rather than disability and the Impairment Tables will be updated to take account of contemporary medical and rehabilitation practice, in consultation with the health sector, disability stakeholders and review and complaint bodies.

The Government will also promote greater participation by people with disability through a national communication strategy, workforce re-engagement contacts for new entrants to DSP to outline the assistance and incentives available to help those who may be able to work, and advice to DSP customers when they take up work, about the assistance available to help them maintain that work. These changes have been developed consistent with ongoing work under the National Mental Health and Disability Employment Strategy.

National Mental Health and Disability Employment Strategy (NMHDES)

The Government has committed to developing a National Mental Health and Disability Employment Strategy. A paper titled Setting the Direction was released in December 2008, outlining six areas for action that the Government will take in addressing barriers to employment participation for people with disability. The strategy will guide future Australian Government employment policies for people with disability. The final strategy will be released in 2009.

Special Disability Trusts

The Government is removing some of the barriers in taxation arrangements that prevent families from establishing Special Disability Trusts. 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 through Treasury is responding to recommendations made by the Senate Standing Committee on Community Affairs in its report, Building trust: Supporting families through Disability Trusts, and is implementing a number of the recommendations immediately. FaHCSIA will continue to contribute to this area of policy.

National Companion Card Scheme

A National Companion Card Scheme is being introduced to enable people with disability, dependent on full-time care to attend sporting and entertainment events without incurring the cost of a second ticket for their attendant carer. The Companion Card Scheme will provide a consistent national approach to extend the reciprocal Companion Card Scheme currently operating in Victoria, Western Australia, Tasmania, South Australia, New South Wales and Queensland to other jurisdictions and build a base of national affiliate organisations.

Disability Parking Scheme

The Australian Disability Parking Scheme will harmonise rules and permits for disability parking. Currently, these vary between jurisdictions and there are more than 100 permits in use across Australia. The Australian Disability Parking Scheme will positively affect disability permit holders by establishing a national permit design and nationally consistent eligibility criteria and concessions.

Expansion of Outside School Hours Care for Teenagers with Disability Program

The Outside School Hours Care for Teenagers with Disability Program helps families and carers by funding services to deliver age appropriate and flexible outside school hours and school holiday care for teenagers with disability or serious medical condition. This initiative will increase access for children and teenagers aged 12-18 with disability, by providing an additional 250 places.

Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

Following the COAG Federal Financial Relations Framework reforms, the Treasury is responsible for National Specific Purpose Payments (NSPPs), National Partnership (NP) payments to and through the states and territories and general revenue assistance. The Treasury holds the appropriation for these items and reports financial details accordingly.

The non financial performance of the corresponding programs remains the responsibility of FaHCSIA. As a result, financial information for each affected program will not be complete for the 2008-09 financial year within a single set of PB Statements. Complete figures can be found in Budget Paper No. 3, Australia's Federal Relations.

COAG performance information can be found at the end of Section 2: Outcomes and planned performance, Contributions to Outcome 5. This performance information will be monitored and reported on by the COAG Reform Council.

Outcome 5 Resource statement

Table 2.1.5 provides an overview of the total expenses for Outcome 5 by program and administered and departmental expenses.

Table 2.1.5: Total expenses for Outcome 5

Outcome 5: Disability and Carers

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 5.1: Targeted Community Care
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 143,602 142,378
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 12,035 11,575
Revenues from independent sources (s31) 615 397
Subtotal for Program 5.1 156,252 154,350
Program 5.2: Disability Support Pension
Administered expenses
Special Appropriations 10,991,355 11,565,597
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 163,852 14,897
Revenues from independent sources (s31) 791 511
Subtotal for Program 5.2 11,155,998 11,581,005
Program 5.3: Income Support for Carers
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 3,300 2,800
Special Appropriations 4,465,637 4,118,074
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 84,114 11,421
Revenues from independent sources (s31) 607 392
Subtotal for Program 5.3 4,553,658 4,132,687
Program 5.4: Services and Support for People with Disability
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 276,904 313,907
Other Services (Appropriation Bill No. 2) 431,675 -
Special Accounts 581 243
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 40,217 37,161
Revenues from independent sources (s31) 1,974 1,274
Subtotal for Program 5.4 751,351 352,585
Program 5.5: Support for Carers
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 10,476 14,396
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 9,002 8,208
Revenues from independent sources (s31) 436 281
Subtotal for Program 5.5 19,914 22,885
Outcome 5 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 434,282 473,481
Other Services (Appropriation Bill No. 2) 431,675 -
Special Appropriations 15,456,992 15,683,671
Special Accounts 581 243
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1)1 309,220 83,262
Revenues from independent sources (s31) 4,423 2,855
Total expenses for Outcome 5 16,637,173 16,243,512
  2008-09 2009-10
Average staffing level (number) 487 480

1 The reduction from 2008-09 to 2009-10 in departmental appropriations is primarily due to Centrelink being directly appropriated from 2009-10.

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 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. The initiatives provide increased opportunities for recovery by helping them to overcome social isolation and increasing their connections to the community with the support of personal helpers and mentors and through brokered and centre-based respite services.

Program expenses

The change in expenses across the forward years reflects the estimates provided in the policy initiatives and the effect of indexation.

Table 2.1.5.1: Budgeted Expenses for Targeted Community Care

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Mental Health B1 143,602 142,378 140,414 143,082 145,656
Program Support   12,650 11,972 11,831 11,853 10,855
Total program expenses   156,252 154,350 152,245 154,935 156,511

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 5.1 Key Performance Indicators
Mental Health
  • Percentage and number of people accessing recovery support services whose lives are severely affected by mental illness
  • 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 families and carers assisted through respite, brokerage and community based support
Program 5.1 Deliverables

Mental Health

Activities include providing increased opportunities for recovery by helping individuals, their families and carers to overcome social isolation, and increasing their connections to the community with the support of personal helpers and mentors and through brokered and centre-based respite services.

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of families and carers assisted through respite, brokerage and community-based support - 19,500 - - -
Number of people with severe functional limitations arising from mental illness assisted through recovery support services (PHaMS) - 6,000 - - -

Program 5.2: Disability Support Pension

Program objective

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

Linked to: Personal benefits payments under this program are delivered by Centrelink. For information about Centrelink, refer to the Department of Human Services' 2009-10 PB Statements.

Note: 5.2 has no component programs

Program expenses

The change in expenses across the forward years reflects changes in the economy, customer trends, and the impact of policy initiatives including the introduction of the Pension Supplement as part of the Secure and Sustainable Pensions Package.

Table 2.1.5.2: Budgeted Expenses for Disability Support Pension

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Special Appropriations:
Social Security (Administration) Act 1999
Disability Support Pension 10,991,355 11,565,597 12,244,504 12,690,157 13,195,559
Program Support1 164,643 15,408 15,226 15,255 13,969
Total program expenses 11,155,998 11,581,005 12,259,730 12,705,412 13,209,528

1 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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 Key Performance Indicators
Disability Support Pension
  • Duration on payment
  • Percentage and number of recipients on part rate due to the means test
  • Percentage and number of recipients reporting earnings
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements with service providers are current
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled
  • Percentage and number of estimated population of people with disability who receive payment
  • Percentage and number of DSP population as a proportion of the total Australian working age population
Program 5.2 Deliverables

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

Program 5.3. Income Support for Carers

Program objective

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

Program component objectives

Carer Allowance (Adult)

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

Carer Allowance (Child)

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

Child Disability Assistance Payment

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

Carer Payment

To make payments to assist financially, 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 to eligible carers to provide additional financial security and alleviate financial pressures.

Wife Pension (DSP)

To make payments to female partners of DSP recipients to assist them financially. This payment was closed to new entrants from 1 July 1995.

Ex-Gratia Payments to unsuccessful applicants of Carer Payment (Child)

To make a one off payment of financial assistance 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. The Carer Adjustment Payment will continue until 31 December 2009.

Linked to: Personal benefits payments under this program are delivered by Centrelink. For information about Centrelink, refer to the Department of Human Services' 2009-10 PB Statements.

Program expenses

The change in expenses across the forward years reflects changes in the economy, customer trends, and the impact of policy initiatives, including the introduction of the Pension Supplement as part of the Secure and Sustainable Pensions Package.

Table 2.1.5.3: Budgeted Expenses for Income Support for Carers

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Ex-Gratia Payments to Unsuccessful
Applicants of Carer Payment (Child) B1 3,300 2,800 2,800 2,800 2,800
Special Appropriations:
Social Security (Administration) Act 1999
Carer Allowance (Adult)   1,267,266 1,016,910 1,087,928 1,168,551 1,253,031
Carer Allowance (Child)   532,348 425,727 443,446 465,442 487,360
Carer Payment   1,941,847 2,356,118 2,724,333 3,085,049 3,454,923
Carer Supplement   373,072 - 434,113 458,339 482,417
Child Disability Assistance Payment 142,139 148,765 152,755 156,892 161,229
Wife Pension (DSP)   208,965 170,554 143,093 120,598 99,086
Program Support1   84,721 11,813 11,673 11,695 10,710
Total program expenses   4,553,658 4,132,687 5,000,141 5,469,366 5,951,556

1 The reduction in Program Support expenses is primarily due to Departmental appropriation being appropriated to Centrelink from 2009-10.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 5.3 Key Performance Indicators
Wife Pension (DSP)
  • Ratio of current number of Wife Pension (DSP) recipients to the number of Wife Pension (DSP) recipients at 1 July 1995
Carer Allowance (Adult and Child)/Carer Payment/Child Disability Assistance Payment/Wife Pension (DSP)/Carer Supplement
  • Number of recipients
  • Administered outlays
Carer Payment/Wife Pension (DSP)
  • Percentage and number of recipients on part rate due to means test
  • Percentage and number of recipients reporting earnings
Carer Allowance (Adult and Child)/Carer Payment/Child Disability Assistance Payment
  • Payment accuracy - total and percentage of outlays correctly paid
  • Agreements with service providers are current
  • Strategies are in place to ensure the requirements under agreements with providers are fulfilled
  • Proportion of primary carers who are receiving Carer Payment
Carer Allowance
  • Proportion of primary carers who are receiving Carer Allowance (this relies on the definition of primary carer used by the Survey of Disability and Carers).
Program 5.3 Deliverables

Payments are made to eligible claimants under the provisions of social security law through Centrelink. Carer Adjustment Payment is paid under the provisions of the FMA Act as an ex-gratia payment.

Program 5.4: Services and Support for People with Disability

Program 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. This is achieved through providing supported employment services, improving access to information and advocacy (including through peak bodies), and assistance with access to practical services.

Services for People with Disability (Special Account)

The purpose of this Special Account is to manage receipts and expenses on projects which relate to the National Disability Agreement.

Program expenses

The reduction from 2008-09 to 2009-10 reflects the new framework for the Federal Financial Relations. Under these arrangements payments to states and territories will now be made by the Treasury.

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation.

A movement of funds from 2008-09 to 2009-10 of $8.1 million is reported for Services for People with Disability.

Table 2.1.5.4: Budgeted Expenses for Services for Support for People with Disability

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Services for People with Disability B1 276,904 313,907 301,178 304,540 312,719
COAG Health Services - Young People with Disability in Residential
Aged Care SPP B2 16,547 - - - -
Commonwealth State Territory
Disability Agreement SPP B2 415,128 - - - -
Special Account Expenses:
Commonwealth State Territory
Disability Special Account   581 243 - - -
Program Support   42,191 38,435 37,980 38,052 34,846
Total program expenses   751,351 352,585 339,158 342,592 347,565

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

(B2) - Annual Appropriation Bill 2 (Other Services)

Program 5.4 Key Performance Indicators
Services for People with Disability
  • Percentage and number of individuals, parents and carers who report they were assisted to access choices and options that enabled them to manage their needs
  • Percentage and number of supported employees that achieve an employment outcome (at least eight hrs per week for at least 13 weeks from commencement in a supported employment place)
  • Percentage and number of supported employees/clients with reduced reliance on income support payments (sufficient income to affect DSP)
  • Percentage and number of people with disability receiving support services
  • Percentage and number of clients from Indigenous/CALD backgrounds
  • Percentage of clients reporting that the services received were appropriate to their needs as parents/carers
Program 5.4 Deliverables

Activities include a booking service for Auslan Interpreting Services, employment assistance advocacy, print disability services, postal concessions for the blind, respite and outside school hours care, Autism Spectrum Disorders (ASD) early intervention services, education and support services, ASD playgroups and ASD website.

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of supported employees assisted by supported employment services - 23,000 - - -
Number of carers of young people with severe or profound disability assisted with short-term or immediate respite - 4,700 - - -
Number of families receiving Outside School Hours Care for Teenagers with Disability Services - 1,250 - - -
Helping Children with Autism - number of children assisted - 7,010 - - -

Program 5.5: Support for Carers

Program 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.

* Note: 5.5 has no program components

Program expenses

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation.

Table 2.1.5.5: Budgeted Expenses for Support for Carers

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Support for Carers B1 10,476 14,396 12,238 12,512 12,724
Program Support   9,438 8,489 8,389 8,405 7,697
Total program expenses   19,914 22,885 20,627 20,917 20,421

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 5.5 Key Performance Indicators
Support for carers
  • Percentage and number of MyTime peer support group parents and carers assisted as a proportion of those receiving Carer Allowance (child) six years or under
  • Number of young carers assisted from Indigenous and Culturally and Linguistically Diverse Groups
  • Percentage and number of clients satisfied that the services they received were appropriate to their needs as carers
Program 5.5 Deliverables

Young Carers - respite, support information, referral and advice for young carers.

MyTime - peer support for parents of young children with disability or chronic medical condition.


 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of young carers assisted - 2,500 - - -
Number of My Time Peer support group parents and carers assisted - 1,500 2,000 - -
COAG Performance Indicators-National Disability Agreement1
  • Labour force participation rate for people with disability aged 15-64 years2
  • Proportion of people with disability who participate in social and community activities2
  • Proportion of the potential population accessing disability services
  • Proportion of people with disability who are satisfied with the range of disability service options and quality of support received
  • Proportion of potential population expressing unmet demand for disability support services
  • Number of Indigenous people with disability receiving disability services as a proportion of the Indigenous potential population requiring services
  • Labour force participation rate for carers, aged 15 to 64, of people with disability2
  • Proportion of carers of people with disability accessing support services to assist in their caring role
  • Proportion of carers of people with disability who are satisfied with the range of disability service options and quality of support received2
  • Proportion of people with disability receiving income support

1 Indicates that data needed to assess this measure are not currently available on an annual basis and will need to be developed.

2 COAG has agreed to these performance indicators.

Outcome 6: Women

Informed government decisions on improved gender equality through coordinated whole of government advice and support for women's economic security, safety and leadership .

Outcome 6 Strategy

The Office for Women provides high level advice to the Minister for the Status of Women to improve outcomes for women in three priority areas: reducing violence against women; improving economic outcomes for women; and ensuring women's equal place in society.

To address these priorities, the Office for Women undertakes a range of work, including:

  • Whole of government leadership in policy development on gender equality
  • 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 that lead to the development and implementation of a National Plan to Reduce Violence against Women and their Children through COAG
  • Initiatives to build women's capacity to take on leadership responsibilities, communicate and consult with a variety of women's groups and organisations, and undertake research into women's issues
  • Administration of the Support for Victims of Trafficking Program.
Reducing Violence against Women and their Children

The Government formally received the Time for Action report from the National Council to Reduce Violence against Women and their Children on 29 April 2009.

The National Council was commissioned to develop advice on how to reduce violence which affects one in three women in Australia and is witnessed by up to one in four children. Their report, produced after extensive research and consultation with more than 2,000 Australians, provides a clear, evidence-based roadmap to reduce violence against women and their children over the next 12 years.

The Prime Minister announced a deliberate and targeted beginning to the Australian Government's response to the National Council's report through a $42 million investment in primary prevention expert crisis response, research, initiatives within the legal system and continuation of an independent advisory group.

The Prime Minister committed to take the National Council's report to the Council of Australian Governments (COAG), for governments to agree a plan of action by early 2010.

Outcome 6 Resource statement

Table 2.1.6 provides an overview of the total expenses for Outcome 6, by program and administered and departmental expenses.

Table 2.1.6: Total expenses for Outcome 6

Outcome 6: Women

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 6.1: Gender Equality for Women
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 16,105 27,475
Special Accounts 105 -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 16,578 13,735
Revenues from independent sources (s31) 730 471
Subtotal for Program 6.1 33,518 41,681
Outcome 6 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 16,105 27,475
Special Accounts 105 -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 16,578 13,735
Revenues from independent sources (s31) 730 471
Total expenses for Outcome 6 33,518 41,681
  2008-09 2009-10
Average staffing level (number) 83 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 objective

To implement strategies in priority areas to achieve gender equality for women. These priority areas include:

  1. Reducing violence against women
  2. Demonstrating Australian Government leadership on gender equality
  3. Increasing opportunities for women to contribute to Australian Government decisions
  4. Increasing opportunities for women to undertake valued leadership roles
  5. Creating business and workplace cultures that deliver better economic choices and outcomes for women.

Program component objectives

Gender Equality for Women

To implement strategies in priority areas to achieve gender equality for women.

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 FMA agencies including the Commonwealth, State and Territory, and New Zealand Minister's Conference on the Status of Women.

Program expenses

The change in expenses across the forward years reflects the estimates provided in the policy initiatives and the effect of indexation.

The higher level of funding in 2009-10 reflects a $7.0 million movement of funds from 2008-09.

Table 2.1.6.1: Budgeted Expenses for Gender Equality for Women

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Gender Equality for Women B1 16,105 27,475 20,785 20,951 21,334
Special Account Expenses:
Other Services - Services for Other
Government and Non-Government Bodies 105 - - - -
Program Support   17,308 14,206 14,037 14,065 12,880
Total program expenses   33,518 41,681 34,822 35,016 34,214

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 6.1 Key Performance Indicators
Gender Equality for Women
  • Number and percentage of women contacting the new national online and 1800 service who receive immediate referral to an appropriate service
  • Number and percentage of women representatives on Australian Government Boards
  • Assessment by stakeholders of the gender equality contribution of the Office for Women to national debates
Program 6.1 Deliverables

Activities include awareness raising and violence prevention education, research, support for victims of trafficking, and leadership training.

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of women contacting Helpline programs 10,950 12,440 12,220 12,490 12,760

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

FaHCSIA is working with the states and territories on closing the gap in life outcomes between Indigenous and non-Indigenous Australians. This work is underpinned by COAG's National Indigenous Reform Agreement.

Under this Outcome, FaHCSIA provides funding for the Community Development Employment Projects (CDEP) Program, for housing in remote Indigenous communities, and flexible funding for community assistance, based on agreed community objectives.

FaHCSIA contributes to the framework for concluding native title claims and providing assistance to claimants through Native Title Representative Bodies. It also contributes to the corporate structure and capability of Indigenous organisations through the Registrar of Indigenous Corporations.

It provides support for Indigenous capability, leadership and public awareness. This includes activities that promote reconciliation, the repatriation of ancestral human remains and healing initiatives.

As part of our ongoing work in the Northern Territory to close the gap, FaHCSIA is implementing measures to protect women and children, improve capacity and provide sustainable community development in prescribed communities.

FaHCSIA provides leadership and policy coordination on Indigenous issues across government, and is working to ensure that Indigenous voices are increasingly heard within government and business.

Key enhancements to this strategy since the 2008-09 Budget

Community Development Employment Projects (CDEP)

On 19 December 2008, significant reforms to the CDEP program and the Indigenous Employment Program (IEP) were announced to ensure more Indigenous Australians have the skills, support and incentives needed to get and keep a job. The Government will provide a net funding increase of $202.4 million over five years to implement the reforms. The CDEP/IEP reforms impact on six Government agencies, with a net decrease of $708.4 million over five years for FaHCSIA. These savings have been redirected to other portfolios to support other programs that support Indigenous employment and training.

From 1 July 2009, CDEP will be reformed in regions with limited or emerging economies, building on existing program strengths and providing an increased focus on both building work readiness for individuals and supporting community development. CDEP will cease to be provided in regions with established economies from 1 July 2009.

In areas where CDEP will no longer operate, a new Community Support Service will be provided to support Indigenous Australians to link to employment and other services (this Community Support Service will be administered under Outcome 3).

As part of the reforms, more training and employment opportunities will be provided through an Indigenous remote workforce strategy, along with funding to ensure the sustainability of the more than 1,600 positions created to support Australian Government services in the Northern Territory, and a reformed and expanded IEP (administered by the Department of Education, Employment and Workplace Relations).

In addition, the reforms will be supported by a Jobs Package, agreed under the Indigenous Economic Participation National Partnership Agreement, that will allow for the creation of around 2000 properly paid jobs in government service delivery that were previously supported by CDEP. These jobs will attract mainstream benefits such as access to superannuation, training and professional development.

Indigenous Economic Development Strategy (IEDS)

Economic development is central to the Government's efforts to improve the lives of Indigenous Australians. In line with its 2007 election commitment, the Government is currently developing an IEDS. The objective of the IEDS will be to promote economic participation and enable economic self-reliance for Indigenous people and communities by improving Indigenous employment, business formation and wealth creation opportunities and outcomes.

A public consultation paper will be released soon seeking feedback on the Indigenous economic development framework which the Government intends will underpin future policies to secure Indigenous economic development.

The IEDS will be released following consultations with key stakeholders.

Business Action Agenda

Closing the gap on Indigenous disadvantage requires the active support of all Australians - including the business sector.

A Business Action Agenda will support the forthcoming IEDS and build on and strengthen the positive role played by the business sector in closing the gap and fostering greater economic participation.

The Business Action Agenda has two key elements:

  • further engaging the corporate, not for profit and philanthropic sectors to take action to close the gap
  • establishing a national advisory group to provide strategic advice to Government on improving Indigenous economic participation.

Closing the Gap in the Northern Territory

In June 2008 the Government commissioned an independent review of the Northern Territory Emergency Response (NTER) to assess the impact of measures on individuals and communities. The Review Board's Report was released on 13 October 2008.

In response to this report, the Australian Government has reaffirmed its commitment to making real inroads towards closing the gap in the Northern Territory. The next phase will consolidate progress to date and lay foundations for sustainable progress into the future. There will be a continuing focus on measures to protect women and children, improve community capacity and provide sustainable community development in prescribed communities.The development phase will maintain core NTER measures while placing greater emphasis on community development and community engagement. Some elements will be modified to be consistent with the Racial Discrimination Act 1975.

Resetting the Relationship with Indigenous Australians

Following the historic Apology of 13 February 2008, and in progressing closing the gap reforms, the Government has prioritised resetting the relationship with Indigenous Australians. Alongside systematic consultations with Indigenous people around major policy and program reforms, the Government has also commissioned consultation on the development of a new National Indigenous Representative Body. In April 2009, the Government formally indicated its support for the United Nations Declaration on the Rights of Indigenous People.

Remote Service Delivery Arrangements

Implementation of the COAG Remote Service Delivery National Partnership will proceed with extensive engagement with Indigenous people in the target locations, together with building the capacity of current and future Indigenous leadership. These objectives will be supported by establishing a Coordinator-General for Remote Indigenous Services to work across all agencies to improve service delivery and cut through administrative barriers to deliver effective results for Indigenous Australians.

Indigenous Housing

Almost $2 billion extra has been committed to remote Indigenous communities over 10 years to address overcrowding, homelessness, poor housing and housing shortages. Improving housing will provide the foundation for lasting improvements in health, education and employment amongst Indigenous Australians and make a major contribution towards closing the gap on disadvantage.

Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

Following the COAG Federal Financial Relations Framework reforms, the Treasury is responsible for National Specific Purpose Payments (NSPPs), National Partnership (NP) payments to and through the states and territories and general revenue assistance. The Treasury holds the appropriation for these items and reports financial details accordingly.

The non-financial performance of the corresponding programs remains the responsibility of FaHCSIA. As a result, financial information for each affected program will not be complete for the 2008-09 financial year within a single set of PB Statements. Complete figures can be found in Budget Paper No. 3, Australia's Federal Relations.

COAG performance information can be found at the end of Section 2: Outcomes and planned performance, Contributions to Outcome 7. This performance information will be monitored and reported on by the COAG Reform Council.

Outcome 7 Resource statement

Table 2.1.7 provides an overview of the total expenses for Outcome 7, by program and administered and departmental expenses.

Table 2.1.7: Total expenses for Outcome 7

Outcome 7: Indigenous

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 7.1: Economic Development and Participation
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 430,192 426,164
Special Accounts 141 179,878
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 55,385 61,205
Revenues from independent sources (s31) 5,677 3,916
Subtotal for Program 7.1 491,395 671,163
Program 7.2: Indigenous Housing and Infrastructure
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 132,654 146,217
Other Services (Appropriation Bill No. 2) 144,334 -
Special Accounts 1,640 -
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 37,200 28,483
Revenues from independent sources (s31) 2,642 1,823
Subtotal for Program 7.2 318,470 176,523
Program 7.3: Native Title and Land Rights
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 65,949 73,289
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 8,604 7,131
Revenues from independent sources (s31) 661 456
Subtotal for Program 7.3 75,214 80,876
Administered expenses
Program 7.4: Indigenous Capability and Development
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 45,864 55,026
Special Appropriations 226,547 200,204
Special Accounts 178,897 149,263
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 95,287 96,848
Revenues from independent sources (s31) 8,983 6,197
Subtotal for Program 7.4 555,578 507,538
Program 7.5: Closing the Gap in the Northern Territory
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 111,022 102,750
Other Services (Appropriation Bill No. 2) 18,547 -
Special Appropriations 4,439 -
Special Accounts 104,579 32,955
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 81,065 75,687
Revenues from independent sources (s31) 7,021 4,843
Subtotal for Program 7.5 326,673 216,235
Outcome 7 totals by appropriation type:
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 785,681 803,446
Other Services (Appropriation Bill No. 2) 162,881 -
Special Appropriations 230,986 200,204
Special Accounts 285,257 362,096
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 277,541 269,354
Revenues from independent sources (s31) 24,984 17,235
Total expenses for Outcome 7 1,767,330 1,652,335
  2008-09 2009-10
Average staffing level (number) 966 1,001

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 objective

To provide participation opportunities and community development projects for Indigenous people that develop skills and improve employability of participants to assist them to move into employment or accredited training outside the Community Development Employment Projects program. This improves the capacity of Indigenous Australians to participate economically.

Program component objectives

Community Development Employment Projects Program

To provide participation opportunities and community development projects for Indigenous people that develop skills and improve employability of participants to assist them to move into employment or accredited training and to strengthen Indigenous communities through community development and support.

Indigenous Employment Special Account

To resource employment creation initiatives undertaken by Commonwealth agencies and non-Commonwealth entities.

Other Trust Monies Special Account

To receive reconciled monies from clients.

Program expenses

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation. The increase in 2009-10 reflects new funding announced in the 2008-09 Mid Year Economic Fiscal Outlook statement for the Community Support in Remote Areas and Incentive Package for Community Development Employment Projects program participants.

Table 2.1.7.1: Budgeted Expenses for Economic Development and Participation

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Community Development
Employment Projects Program1 B1 430,192 426,164 450,747 324,172 320,932
Special Account Expenses:
Indigenous Employment Special Account2   - 179,878 138,409 138,974 140,725
Other Trust Monies   141 - - - -
Program Support3   61,062 65,121 64,373 64,490 59,211
Total program expenses   491,395 671,163 653,529 527,636 520,868

1 CDEP program expenses include the Jobs creation component of the COAG Indigenous Economic Participation National Partnership Agreement, and the funding for the continuation of the Northern Territory Jobs Package (from 2010-11) and the Indigenous Remote Workforce Strategy agreed as part of the CDEP/IEP reforms.  These funds are transferred to and managed through the Indigenous Employment Special Account.

2 The Indigenous Employment Special Account will be established from 1 July 2009 when the Northern Territory Flexible Funding Pool Special Account (Program 7.5) will be abolished and remaining funds transferred to this Special Account. Special Account expenses include the administered and program support expenses for: the Jobs creation component of the COAG Indigenous Economic Participation National Partnership Agreement, the continuation of the Northern Territory Jobs Package (from 2010-11) and the Indigenous Remote Workforce Strategy agreed as part of the CDEP/IEP reforms, and the Northern Territory Jobs Package.  These are appropriated to the relevant program components in Programs 7.1 and 7.5 and transferred to and managed through this Special Account.

3 Program support expenses include funding appropriated to support the delivery of the Jobs creation component of the COAG Indigenous Economic Participation National Partnership Agreement and the continuation of the Northern Territory Jobs Package (from 2010-11) agreed as part of the CDEP/IEP reforms.  These funds are transferred to and managed through the Indigenous Employment Special Account.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 7.1 Key Performance Indicators
Community Development Employment Projects (CDEP) program
  • Percentage of CDEP participants moving into off-CDEP employment
  • Percentage of CDEP participants moving into accredited training
  • Percentage of CDEP participants that move into accredited training and achieve a training outcome
  • Percentage of CDEP participants that move into employment that achieve an employment outcome (for 13 weeks from commencement)
Program 7.1 Deliverables

Work readiness and services and community development projects to build skills of CDEP participants

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of contracted CDEP places - 15,000 15,000 15,000 15,000

Program 7.2: Indigenous Housing and Infrastructure

Program objective

To increase the supply of new houses, improve the condition of existing houses, and ensure that rental houses are well maintained and managed, to reduce overcrowding in remote Indigenous communities.

Program component objectives

Remote Indigenous Housing

To construct additional houses, upgrade and maintain existing houses and improve housing infrastructure in remote Indigenous communities.

Indigenous Boarding Hostels Partnership

To provide capital funding to build or expand accommodation with partner organisations for Indigenous students who need to travel from their remote home communities to access secondary education.

Other Services - Services for other Government and Non-Government Bodies (Special Account-Army Aboriginal Community Assistance Program [AACAP])

The purpose of this Special Account is for expenditure in connection with services performed on behalf of other government and bodies that are not FMA agencies, including the AACAP.

Program expenses

The non-financial performance of the corresponding programs remains the responsibility of FaHCSIA. As a result, financial information for each affected program will not be complete for the 2008-09 financial year within a single set of PB Statements. Complete figures can be found in Budget Paper No. 3, Australia's Federal Relations.

A movement of funds from 2008-09 to 2009-10 is reported for Indigenous Boarding Hostels Partnership ($7 million) and Remote Indigenous Housing ($55 million).

Table 2.1.7.2: Budgeted Expenses for Indigenous Housing and Infrastructure

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Remote Indigenous Housing B1 127,932 120,469 98,776 89,969 51,717
Indigenous Boarding Hostels Partnerships B1 4,722 25,748 4,257 - -
Remote Indigenous Housing SPP B2 144,334 - - - -
Special Account Expenses:
Other Services - Services for Other Government and Non-Government Bodies   1,640 - - - -
Program Support   39,842 30,306 29,958 30,013 27,555
Total program expenses   318,470 176,523 132,991 119,982 79,272

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

(B2) - Annual Appropriation Bill 2 (Other Services)

Program 7.2 Key Performance Indicators
Remote Indigenous Housing
  • Comprehensive repairs and maintenance program in place for all houses in remote communities by 2010
Indigenous Boarding Hostels Partnership
  • Percentage of hostel beds occupied
Program 7.2 Deliverables
Remote Indigenous Housing
  • Number of new dwellings constructed
  • Number of dwellings significantly upgraded
Indigenous Boarding Hostels Partnership
  • Number of new hostels constructed
  • Number of new hostel beds provided
Remote Indigenous Housing

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of new dwellings constructed - 320 370 420 440
Number of dwellings significantly upgraded - 587 911 1,171 1,146
Indigenous Boarding Hostels Partnership

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Accommodation for Indigenous students - 1 1 - -
Number of new hostel beds provided - 45 120 - -

Program 7.3: Native Title and Land Rights

Program objective

Provide access to professional services for native title claimants through Native Title Representative Bodies and other Native Title service providers. This assists in the removal of barriers to economic, cultural and social participation envisioned under the Native Title Act 1993.

Program component objectives

Native Title and Land Rights

To conclude native title claims for claimant groups or prescribed bodies corporate which, where concluded in favour of those groups, may provide opportunities for improved economic, cultural and social participation for Indigenous people. The Land Rights Strategy is delivered through the Aboriginals Benefit Account.

Linked to: An annual return from the Aboriginal and Torres Strait Islander Land Account is paid to the Indigenous Land Corporation (ILC) under legislation. For information about ILC's programs, refer to the ILC Agency Statements.

Program expenses

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation.

Table 2.1.7.3: Budgeted Expenses for Native Title and Land Rights

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Native Title and Land Rights B1 65,949 73,289 80,832 88,830 91,534
Program Support   9,265 7,587 7,500 7,514 6,899
Total program expenses   75,214 80,876 88,332 96,344 98,433

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 7.3 Key Performance Indicators
Native Title
  • Number of Native Title claims progressed
  • Number of Native Title claims concluded
Program 7.3 Deliverables

Activities focus on the delivery of professional services to progress and finalise native title claims. This service is demand-driven and can not be forecast for forward years.

Program 7.4: Indigenous Capability and Development

Program objective

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

Program component objectives

Indigenous Capability and Development

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

Aboriginals Benefit Account (Special Appropriation)

To enable the receipt and administration of 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 requirements of the Financial Management and Accountability Act 1997.

Aboriginals Benefit Account (Special Account)

To receive and disburse statutory royalty equivalent monies derived from mining on Aboriginal land in the Northern Territory under the Aboriginal Land Rights (Northern Territory) Act 1976.

Registrar of Indigenous Corporations

To register, regulate and develop the capacity of Indigenous corporations to improve their corporate governance. This is carried out under the provisions of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).

Aboriginal and Torres Strait Islander Land Account

To provide a secure and ongoing source of funds to the ILC 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. This is administered in accordance with section 193 of the Aboriginal and Torres Strait Islander Act 2005.

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. This agreement was established under section 44 of the Aboriginal Land Rights (Northern Territory) Act 1976.

Program expenses

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation.

Table 2.1.7.4: Budgeted Expenses for Indigenous Capability and Development

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Indigenous Capability and Development B1 45,864 49,316 46,217 45,401 46,794
Indigenous Healing Foundation B1 - 5,710 7,658 7,834 4,857
Reconciliation Australia B1 - - 3,600 3,600 3,600
Special Appropriations:
Aboriginal Land Rights (Northern Territory) Act 1976
Aboriginals Benefit Account Special Appropriation   226,347 200,004 295,137 447,753 452,596
Ranger Agreement   200 200 200 200 200
Special Account Expenses:
Aboriginal and Torres Strait Islander Land Fund   44,789 2,633 34,561 4,792 37,904
Aboriginals Benefit Account Special Account   130,829 146,630 170,283 197,729 200,609
Indigenous Communities Strategic Investment   3,279 - - - -
Program Support   104,270 103,045 101,860 102,047 93,693
Total program expenses   555,578 507,538 659,516 809,356 840,253

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

Program 7.4 Key Performance Indicators
Indigenous Capability and Development
  • Percentage and number of projects that have met agreed community objectives
  • Percentage and number of participants in leadership programs who report they have acquired increased knowledge, skills and capabilities from their participation
  • Percentage and number of individuals satisfied that the services provided met their needs
  • Percentage of projects/initiatives that comply with contractual requirements
Registrar of Indigenous Corporations
  • Percentage and number of Indigenous corporations compliant with reporting under the CATSI Act
  • Extent to which the Registrar fulfils functions required under the CATSI Act
  • Percentage and number of participants who have significantly increased corporate governance knowledge and skills through capacity development programs
  • Percentage and number of individuals satisfied that the services provided met their needs
Program 7.4 Deliverables

The program delivers a broad range of activities including community development projects, leadership training, healing initiatives, research, repatriation of ancestral remains and public awareness.

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of ICAD projects/Inititiatives - 200-300 200-300 200-300 -
Number of Indigenous people attending capacity development programs - 600-800 600-800 600-800 -

Program 7.5: Closing the Gap in the Northern Territory

Program objective

To implement measures to protect women and children, improve community capacity and provide sustainable community development in prescribed communities.

These measures will include further welfare, employment and land reform, community engagement, early childhood, a family support package, youth alcohol diversion, policing, Indigenous engagement officers and leadership workshops.

Program component objective

Northern Territory Emergency Response (Bill 1)

To implement measures that include further welfare, employment and land reform, community engagement, early childhood development, family support including additional playgroups, youth alcohol diversion, and promoting law and order to progress closing the gap in the Northern Territory.

Leases over Aboriginal Land under the Northern Territory National Emergency Response Act 2007 (NTER Act).

To make rental and other payments associated with the five-year leases over Aboriginal land under the NTER. The leases were acquired in order to facilitate the administration of the NTER, providing security of tenure and prompt access for the delivery of services, repair of buildings and development of infrastructure in communities. The Government is committed to making fair payment to the Aboriginal owners of five-year leased land.

Northern Territory Flexible Funding Pool (Special Account)

To resource employment creation initiatives undertaken by Commonwealth entities in relation to the Northern Territory Emergency Response.

Program expenses

The non-financial performance of the corresponding programs remains the responsibility of FaHCSIA. As a result, financial information for each affected program will not be complete for the 2008-09 financial year within a single set of PB Statements. Complete figures can be found in Budget Paper No. 3, Australia's Federal Relations. The Northern Territory Flexible Funding Pool Special Account will be replaced by the Indigenous Employment Special Account Establishment 2009 from 1 July 2009. The new special account is reported in Program 7.1 Economic Development and Participation.

Table 2.1.7.5: Budgeted Expenses for Closing the Gap in the Northern Territory

 

2008-09
Revised budget
$'000
2009-10
Budget
$'000
2010-11
Forward Year 1
$'000
2011-12
Forward Year 2
$'000
2012-13
Forward Year 3
$'000
Annual Administered Expenses:
Northern Territory Emergency Response1 B1 111,022 102,750 28,054 29,653 -
Improving Policing in Very Remote Areas SPP B2 9,047 - - - -
Northern Territory Emergency Response - supporting families SPP B2 9,500 - - - -
Special Appropriations:
Northern Territory National
Emergency Response Act 2007
Lease Payments to Traditional Owners of Land   4,439 - - - -
Special Accounts:
Northern Territory Flexible Funding Pool2   104,579 32,955 - - -
Program Support3   88,086 80,530 79,597 79,745 73,215
Total program expenses   326,673 216,235 107,651 109,398 73,215

1 The 2009-10 NTER program expenses include the Northern Territory Jobs Package. From 1 July 2009, these funds are transferred to and managed through the Indigenous Employment Special Account in Program 7.1.

2 The Northern Territory Flexible Funding Pool Special Account is to be abolished from 1 July 2009. Remaining funds will be transferred to the new Indigenous Employment Special Account in Program 7.1.

3 The 2009-10 Program support expenses include funding appropriated to support the delivery of the Northern Territory Jobs Package. From 1 July 2009, these funds are transferred to and managed through the Indigenous Employment Special Account under Program 7.1.

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.

(B1) - Annual Appropriation Bill 1 (Ordinary Annual Services)

(B2) - Annual Appropriation Bill 2 (Other Services)

Program 7.5 Key Performance Indicators
Closing the Gap in the Northern Territory
  • Percentage of residents of prescribed communities who feel safer
  • Percentage and number of prescribed communities with improved infrastructure and services (compared to before the intervention)
  • Percentage and number of participants in leadership programs who report they have acquired increased knowledge, skills and capabilities from their participation
  • Percentage and number of community stores assessed under the community stores licensing regime that meet licensing requirements
Program 7.5 Deliverables

Closing the Gap in the Northern Territory continues the activities initiated under the Northern Territory Emergency Response to ensure the safety and wellbeing of Indigenous children and to provide a better future for children in the prescribed areas. Activities include early childhood intervention, community capacity building, family support, playgroups, youth alcohol diversion, and promoting law and order.

 

Component deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of permanent police stations built - 1 2 2 -
Number of Safe Houses operating for full year - 22 22 22 -
Number of Remote Aboriginal Family & Community Workers employed - 13 13 13 -
Number of Locational Supported Playgroups operating for full year - 3 5 5 -
Number of Intensive Support Playgroups operating for full year - 2 3 3 -
Number of community stores assessed - 90 90 90 -
COAG Performance Indicators-Remote Indigenous Housing *
Overcrowding and homelessness
  • Average occupancy rate
  • Incidence of homelessness
  • Number and percentage of dwellings that are overcrowded by state and territory based on the Australian Bureau of Statistics definition (currently Canadian National Occupancy Standard - CNOS)
New Dwellings
  • Number of new dwellings constructed
  • Number of dwellings replaced or significantly upgraded
  • Total number of dwellings
Tenancy Management
  • Number of households covered by tenancy management arrangements overseen by state or territory governments
Repairs and Maintenance
  • Number of dwellings inspected through a standard property inspection regime
  • Number of dwelling repairs and maintenance works completed as programmed using property condition data
  • Average time taken to complete identified repairs and maintenance
Essential and Municipal Services
  • Number of communities and dwellings (including town camps) covered by normalised service level standards and delivery arrangements for essential and municipal services
  • Number of permanent dwellings with working connections to the full range of housing-related infrastructure (power, water, sewerage)
  • Number of communities (including town camps) connected to essential services (power, water, sewerage)
Employment Related Accommodation (such as hostel or rental accommodation)
  • Number of family-style dwellings and single accommodation/beds provided for flexible employment-related accommodation
  • Number of Indigenous people from remote communities housed in employment-related accommodation in regional areas
Employment and Training
  • Number of local housing-related jobs created for Indigenous people

*COAG has agreed to these performance indicators.

COAG Performance Indicators-National Indigenous Reform Agreement*
Close the life expectancy gap within a generation
  • Estimated life expectancy at birth
    • national, by jurisdiction
    • male and female
  • Mortality rate (and excess deaths) by leading causes
    • national, by jurisdiction
    • male and female
  • Hospitalisation rates by principal diagnosis
    • national, by jurisdiction
  • Rates of current daily smokers
    • national, by jurisdiction
  • Average daily alcohol consumption and associated risk levels; rates of alcohol consumption at long term risky to high risk levels
    • national, by jurisdiction
  • Levels of obesity-Body Mass Index
    • national, by jurisdiction
  • Participation rates in sport, recreation or fitness
    • national, by jurisdiction
  • Access to health care compared to need
    • percentage who accessed health care by type of service
    • level of need for a health care service, by type
Halve the gap in mortality rates for Indigenous children under five within a decade
  • Child under 5 mortality rate (and excess deaths)
    • national, by jurisdiction.
  • Mortality rates (and excess) deaths by leading causes
    • national, by jurisdiction
    • perinatal, infant, 1-4 years, 0-4 years
  • Child under 5 hospitalisation rates by principal diagnosis
    • national, by jurisdiction
    • low birth weight rate
    • national, by jurisdiction
  • Tobacco smoking during pregnancy
    • national, by jurisdiction
  • Antenatal care
    • national, by jurisdiction
    • proportion of mothers with antenatal care in first trimester
    • proportion of mothers attending 5 or more antenatal care sessions
Halve the gap for Indigenous students in reading, writing and numeracy within a decade
  • National Assessment Program - Literacy and Numeracy (NAPLAN) performance
    • national, by jurisdiction, by geo-location
    • years 3, 5, 7, 9
    • reading, writing, numeracy
  • NAPLAN student participation rates
    • national, by jurisdiction, by geo-location
    • years 3, 5, 7, 9
    • reading, writing, numeracy
Ensure all Indigenous four year olds in remote communities have access to quality early childhood education within five years
  • Proportion of Indigenous children (by remoteness classification, as defined according to the Australian Standard Geographic Classification), who are enrolled in an early childhood education program delivered by a four year university qualified teacher in the year before formal schooling
Halve the gap for Indigenous students in Year 12 attainment or equivalent attainment rates by 2020
  • apparent retention rates from years 7 to 8
    • national, by jurisdiction, by geo-location
    • to year 10
    • to year 12
  • attendance rates
    • national, by jurisdiction, by geo-location
    • years 1 to 10
Halve the gap in employment outcomes between Indigenous and non-Indigenous Australians within a decade
  • employment to working age population ratio
  • unemployment rate
  • Labour Force Participation rate
  • CDEP participants and off - CDEP job placement
  • 3-month employment outcomes (post program monitoring)
  • the proportion of Indigenous 18-24 year olds engaged in full-time employment, education or training at or above Certificate III
  • the proportion of Indigenous 20-64 year olds with, or working towards, post school qualification in Certificate III, IV, Diploma and Advanced Diploma

*COAG has agreed to these performance indicators.

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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 budget year 2009-10. 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 are subject to review by the Minister for Finance and Deregulation, and may be moved to a future period, in accordance with provisions in legislation. Table 3.1.1 shows the movement of administered funds approved since the 2008-09 Additional Estimates.

Table 3.1.1: Movement of administered funds between years

Program

Movements of funding between years $'000
5.4 Services for People With Disability - implementation timeframes for the Helping Children with Autism package. 8,100
6.1 Women's Safety Agenda - to continue funding for consultations with key stakeholders. 7,000
7.2 Indigenous Hostels Boarding Partnerships - construction of a hostel at Weipa, North Queensland. 7,000
7.2 Remote Indigenous Housing - to continue funding for municipal and essential services in some Indigenous communities as agreed at COAG November 2008. 55,000
  Movement of administered funds from 2008-09 to 2009-10 77,100

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 FaHCSIA.

There is a discrepancy between this table and Budget Paper 4 due to the establishment of the new Indigenous Employment Special Account with additional receipts for new measures.

Table 3.1.2: Estimates of Special Account cash flows and balances
  Program Opening balance Receipts Payments Adjustments Closing balance
2009-10 2009-10 2009-10 2009-10 2009-10
2008-09
$'000
2008-09
$'000
2008-09
$'000
2008-09
$'000
2008-09
$'000
Outcome 1
Financial Management and Accountability Act 1997 (s20)
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 (s20)
Other Services - Services for Other Government and Non-Government Bodies (A) 2.1 - 7,693 - 7,693 - -
    - 3,500 - 3,500 - -
SAAP Data and Program Evaluation Fund Special Account (A) 2.2 2,264 2,528 - 187 - 4,605
    2,859 2,835 - 3,433 3 2,264
Outcome 3
Social Security (Administration) Act 1999
Income Management Special Account (A) 3.1 3,418 194,167 - 192,163 - 5,422
    3,235 182,194 - 182,011 - 3,418
Outcome 5
Financial Management and Accountability Act 1997 (s20)
Commonwealth, State, Territory Disability Agreement Account (A) 5.4 420 - - 243 - 177
    221 780 - 581 - 420
Outcome 6
Financial Management and Accountability Act 1997 (s20)
Other Services - Services for Other Government and Non-Government Bodies (A) 6.1 11 - - - 11
    72 44 - 105 - 11
Outcome 7
Financial Management and Accountability Act 1997 (s20)
Other Trust Monies (A) 7.1 - - - - -
    141 - - 141 - -
Indigenous Employment Special Account 7.1 - 179,878 - 179,878 - -
    - - - - -
Other Services - Services for Other Government and Non-Government Bodies (A) 7.2 - - - - -
    - 1,640 - 1,640 - -
Aboriginal and Torres Strait Islander Act 2005
Aboriginal and Torres Strait Islander Land Account (A) 7.4 1,694,298 60,548 - 2,633 - 1,752,213
    1,635,675 103,412 - 44,789 - 1,694,298
Aboriginal and Land Rights (Northern Territory) Act 1976
Aboriginals Benefit Account - Special Account (A) 7.4 305,689 209,663 - 146,630 - 368,722
    200,512 236,006 - 130,829 - 305,689
Financial Management and Accountability Act 1997 (s20)
Indigenous Communities Strategic Investment Program Special Account (A) 7.4 - - - - -
    - 3,279 - 3,279 - -
Financial Management and Accountability Act 1997 (s20)
Northern Territory Flexible Funding Pool Special Account (A,D) 7.5 32,955 - - 32,955 - -
    28,735 108,799 - 104,579 - 32,955
Total special accounts
2009-10 Budget estimate   2,039,278 654,477 - 562,382 - 2,131,373
Total special accounts
2008-09 estimate actual
  1,871,673 642,489 - 474,887 3 2,039,278

(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
(A)

Bill No. 2
$'000
(B)
Special Approp
$'000
(C)
Total Approp
$'000
(D)
   
$'000
(E)
 
$'000
(F)=(D)+(E)
 
(G)
FaHCSIA
Outcome 1
Families
Administered 2009-10 35,436 - - 35,436   - 35,436 1.1
Administered 2008-09 31,201 - - 31,201   - 31,201 1.1
Departmental 2009-10 932 - - 932   - 932 1.1
Departmental 2008-09 - - - -   - - 1.1
Total Outcome 2009-10 36,368 - - 36,368   - 36,368  
Total Outcome 2008-09 31,201 - - 31,201   - 31,201  
Outcome 2
Housing
Administered 2009-10 - - - -   - - 2.2
Administered 2008-09 377 48,717 - 49,094   - 49,094 2.2
Departmental 2009-10 - - - -   - - 2.2
Departmental 2008-09 - - - -   - - 2.2
Total Outcome 2009-10 - - - -   - -  
Total Outcome 2008-09 377 48,717 - 49,094   - 49,094  
Outcome 3
Community Capability and the Vulnerable
Administered 2009-10 8,406 - - 8,406   - 8,406 3.1
Administered 2008-09 8,819 - - 8,819   - 8,819 3.1
Departmental 2009-10 1,730 - - 1,730   - 1,730 3.1
Departmental 2008-09 1,097 - - 1,097   - 1,097 3.1
Administered 2009-10 13,350 - - 13,350   - 13,350 3.2
Administered 2008-09 500 - - 500   - 500 3.2
Departmental 2009-10 1,261 - - 1,261   - 1,261 3.2
Departmental 2008-09 - - - -   - - 3.2
Total Outcome 2009-10 24,747 - - 24,747   - 24,747  
Total Outcome 2008-09 10,416 - - 10,416   - 10,416  
Outcome 5
Disability and Carers
Administered 2009-10 574 - - 574   - 574 5.4
Administered 2008-09 476 - - 476   - 476 5.4
Departmental 2009-10 17 - - 17   - 17 5.4
Departmental 2008-09 29 - - 29   - 29 5.4
Total Outcome 2009-10 591 - - 591   - 591  
Total Outcome 2008-09 505 - - 505   - 505  
Outcome 7
Indigenous
Administered 2009-10 426,164 - - 426,164   179,878 606,042 7.1
Administered 2008-09 430,192 - - 430,192   141 430,333 7.1
Departmental 2009-10 61,205 - - 61,205   3,916 65,121 7.1
Departmental 2008-09 55,385 - - 55,385   5,677 61,062 7.1
Administered 2009-10 146,217 - - 146,217   - 146,217 7.2
Administered 2008-09 132,654 144,334 - 276,988   1,640 278,628 7.2
Departmental 2009-10 28,483 - - 28,483   1,823 30,306 7.2
Departmental 2008-09 37,200 - - 37,200   2,642 39,842 7.2
Administered 2009-10 73,289 - - 73,289   - 73,289 7.3
Administered 2008-09 65,949 - - 65,949   - 65,949 7.3
Departmental 2009-10 7,131 - - 7,131   456 7,587 7.3
Departmental 2008-09 8,604 - - 8,604   661 9,265 7.3
Administered 2009-10 55,026 - 200,204 255,230   149,263 404,493 7.4
Administered 2008-09 45,864 - 226,547 272,411   178,897 451,308 7.4
Departmental 2009-10 96,848 - - 96,848   6,197 103,045 7.4
Departmental 2008-09 95,287 - - 95,287   8,983 104,270 7.4
Administered 2009-10 102,750 - - 102,750   32,955 135,705 7.5
Administered 2008-09 111,022 18,547 4,439 134,008   104,579 238,587 7.5
Departmental 2009-10 75,687 - - 75,687   4,843 80,530 7.5
Departmental 2008-09 81,065 - - 81,065   7,021 88,086 7.5
Total Outcome 2009-10 1,072,800 - 200,204 1,273,004   379,331 1,652,335  
Total Outcome 2008-09 1,063,222 162,881 230,986 1,457,089   310,241 1,767,330  
Total Administered 2009-10 861,212 - 200,204 1,061,416   362,096 1,423,512  
Total Administered 2008-09 827,054 211,598 230,986 1,269,638   285,257 1,554,895  
Total Departmental 2009-10 273,294 - - 273,294   17,235 290,529  
Total Departmental 2008-09 278,667 - - 278,667   24,984 303,651  
Total AGIE 2009-10 1,134,506 - 200,204 1,334,710   379,331 1,714,041  
Total AGIE 2008-09 1,105,721 211,598 230,986 1,548,305   310,241 1,858,546  

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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 2008-09 on the basis of accrual accounting principles.

Table 1.1 reflects the actual appropriations received for 2008-09, with appropriations relating to additional measures being received in 2009-10 as prior year outputs.

3.2.2 Analysis of budgeted financial statements

Departmental
Income and expenses

FaHCSIA is budgeting for a balanced operating position for 2009-10. The budgeted operating deficit of $4.3 million for 2008-09 is due to a reduction in the discount rate used to calculate the provision for leave entitlements.

Total operating revenue for 2009-10 is estimated at $600.4 million, primarily comprising government appropriations of $572.8 million. The decrease in revenue of $1,098.4 million is primarily due to Centrelink receiving direct appropriations for service delivery from 2009-10.

Total expenses for 2009-10 are estimated to be $600.4 million. The reduction in expenses of $1,102.7 million in expenses is primarily due to the reduction in payments to Centrelink for service delivery. The increases in employee benefits reflects additional costs of new measures while the reduction in supplier expenses is due to increased savings in IT, accommodation and other costs.

Balance sheet

The Department's net asset position is expected to increase by $44.0 million to $239.7 million due to the equity injection for 2009-10.

Land and buildings and infrastructure, plant and equipment are expected to increase by $42.3 million. This is offset by a reduction of $19.7 million in other non-financial assets due to the expensing of the prepayment to Centrelink for work that will be completed during 2009-10.

Administered
Income and expenses

FaHCSIA will administer the collection of non-taxation revenue estimated at $345.3 million in 2009-10, a decrease of $31.0 million from the 2008-09 estimated revenues.

FaHCSIA will administer programs totalling $66,834.2 million in expenses in 2009-10. The reduction of $8,641.1 million reflects the one-off nature of a number of payments made in 2008-09.

Balance sheet

Total assets administered on behalf of the Government are expected to increase by $185.7 million to $4,568.3 million. This increase is primarily due to an increase of $51.4 million in receivables and $127.4 million in investments.

Total liabilities administered on behalf of the Government are expected to decrease by $488.3 million to $7,116.2 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
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
EXPENSES
Employee benefits 313,791 324,118 328,502 329,824 297,068
Supplier 248,049 192,043 196,309 201,579 183,268
Depreciation and amortisation 32,086 40,266 42,198 37,985 39,352
Payments for service delivery 1,086,850 29,722 10,048 10,156 10,255
Other 22,343 14,250 16,326 16,474 16,679
Total expenses 1,703,119 600,399 593,383 596,018 546,622
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services 36,475 25,332 24,933 24,732 24,732
Other revenue 433 1,017 1,017 1,017 1,017
Total revenue 36,908 26,349 25,950 25,749 25,749
Gains
Sale of assets 2,905 - - - -
Other gains 1,290 1,290 1,290 1,290 1,290
Total gains 4,195 1,290 1,290 1,290 1,290
Total own-source income 41,103 27,639 27,240 27,039 27,039
Net cost of (contribution by) services 1,662,016 572,760 566,143 568,979 519,583
Appropriation revenue 1,657,750 572,760 566,143 568,979 519,583
Surplus (Deficit) (4,266) - - - -
Surplus (Deficit) attributable to the Australian Government (4,266) - - - -
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves - - - - -
Total other comprehensive income - - - - -
Total comprehensive income - - - - -
Total comprehensive income attributable to the Australian Government - - - - -

Prepared on Australian Accounting Standards basis.

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

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS
Financial assets
Cash and equivalents 7,902 9,099 9,649 8,570 5,652
Trade and other Receivables 155,633 91,500 113,055 126,016 108,058
Total financial assets 163,535 100,599 122,704 134,586 113,710
Non-financial assets
Land and buildings 157,222 182,059 175,069 168,286 177,308
Infrastructure, plant and equipment 24,261 41,679 39,118 36,865 36,871
Intangibles 54,769 42,620 45,582 46,121 46,134
Other 22,405 2,660 2,660 2,660 2,660
Total non-financial assets 258,657 269,018 262,429 253,932 262,973
Total assets 422,192 369,617 385,133 388,518 376,683
Provisions
Employees 87,938 90,832 92,061 92,431 83,251
Other 10,822 9,765 9,765 9,765 9,765
Total provisions 98,760 100,597 101,826 102,196 93,016
Payables
Suppliers 116,954 22,428 22,925 23,542 20,729
Other 10,883 6,941 7,951 8,023 8,124
Total payables 127,837 29,369 30,877 31,565 28,853
Total liabilities 226,597 129,966 132,703 133,761 121,869
Net assets 195,595 239,651 252,430 254,757 254,814
EQUITY*
Parent entity interest
Contributed equity 61,292 105,348 118,127 120,454 120,511
Reserves 33,256 33,256 33,256 33,256 33,256
Retained surpluses or accumulated deficits 101,047 101,047 101,047 101,047 101,047
Total parent entity interest 195,595 239,651 252,430 254,757 254,814
Total equity 195,595 239,651 252,430 254,757 254,814
Current assets 185,940 103,259 125,364 137,246 116,370
Non-current assets 236,252 266,358 259,769 251,272 260,313
Current liabilities 153,042 87,778 89,627 90,341 82,310
Non-current liabilities 73,555 42,188 43,076 43,420 39,559

*Note: '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
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Goods and services 36,475 25,332 24,933 24,732 24,732
Appropriations 1,603,216 636,893 544,587 556,018 537,541
Other 433 1,017 1,017 1,017 1,017
Total cash received 1,640,124 663,242 570,537 581,767 563,290
Cash used
Employees (295,344) (321,224) (327,273) (329,454) (306,247)
Suppliers (251,576) (235,961) (209,837) (216,075) (201,369)
Payments to service delivery (1,038,028) (78,544) (10,048) (10,156) (10,256)
Total cash used (1,584,948) (635,729) (547,158) (555,685) (517,872)
Net cash from or (used by) operating activities 55,176 27,513 23,379 26,082 45,418
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment 2,905 - - - -
Total cash received 2,905 - - - -
Cash used
Purchase of property, plant and equipment (62,066) (70,372) (35,608) (29,488) (48,393)
Total cash used (62,066) (70,372) (35,608) (29,488) (48,393)
Net cash from or (used by) investing activities (59,161) (70,372) (35,608) (29,488) (48,393)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity 6,758 44,056 12,779 2,327 57
Total cash received 6,758 44,056 12,779 2,327 57
Net cash from or (used by)   financing activities 6,758 44,056 12,779 2,327 57
Net increase or (decrease) in cash held 2,773 1,197 550 (1,079) (2,918)
Cash at the beginning of  the reporting period 5,129 7,902 9,099 9,649 8,570
Cash at the end of the  reporting period 7,902 9,099 9,649 8,570 5,652

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity-summary of movement (Budget year 2009-10)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2009
Balance carried forward from
previous period 101,047 33,256 - 61,292 195,595
Adjusted opening balance 101,047 33,256 - 61,292 195,595
Income and expense
Surplus (deficit) for the period - - - - -
Total income and expenses
recognised directly in equity - - - - -
Transactions with owners
Contribution by owners
Appropriation (equity injection) - - - 44,056 44,056
Sub-total transactions with owners - - - 44,056 44,056
Estimated closing balance
as at 30 June 2010
101,047 33,256 - 105,348 239,651

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
CAPITAL APPROPRIATIONS
Total equity injections 6,758 44,056 12,779 2,327 57
Total capital appropriations 6,758 44,056 12,779 2,327 57
Represented by:
Purchase of non-financial assets 6,758 44,056 12,779 2,327 57
Total represented by 6,758 44,056 12,779 2,327 57
ACQUISITION OF NON-FINANCIAL ASSETS
Funded by capital appropriations 6,758 44,056 12,779 2,327 57
Funded internally from Departmental resources 55,308 26,316 22,829 27,161 48,336
TOTAL 62,066 70,372 35,608 29,488 48,393

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Departmental Asset Movements (2009-10)

 

Land
$'000
Buildings
$'000
Other Infrastructure,
Plant &Equipment
$'000
Intangibles
$'000
Total
$'000
as at 1 July 2009
Gross book value 13,186 188,161 40,791 95,453 337,591
Accumulated depreciation/amortisation - (44,125) (16,530) (40,684) (101,339)
Opening net book balance 13,186 144,036 24,261 54,769 236,252
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed - 43,164 23,078 4,130 70,372
by finance lease - - - - -
by contribution/donation - - - - -
by gift - - - - -
Acquisition of entities or operations (including restructuring) - - - - -
Sub-total - 43,164 23,078 4,130 70,372
Other Movements
Assets held for sale or in a disposal group held for sale - - - - -
Depreciation/amortisation expense - (18,327) (5,660) (16,279) (40,266)
Disposals# - - - - -
Other - - - - -
Net book value as at 30 June 2010 13,186 168,873 41,679 42,620 266,358
Represented by:
Gross book value 13,186 231,325 63,869 99,583 407,963
Accumulated depreciation/amortisation   (62,452) (22,190) (56,963) (141,605)
Closing net book balance 13,186 168,873 41,679 42,620 266,358

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
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
INCOME ADMINISTERED ON BEHALF OF GOVERNMENT
Revenue
Non-taxation
Interest 113,071 70,207 61,507 71,034 80,405
Other sources of non-taxation revenues 376,328 345,317 256,201 379,837 407,459
Total non-taxation 489,399 415,524 317,708 450,871 487,864
Total revenues administered on behalf of Government 489,399 415,524 317,708 450,871 487,864
Total income administered on behalf of Government 489,399 415,524 317,708 450,871 487,864
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT
Grants 3,068,623 1,790,951 1,988,637 2,067,951 2,071,184
Subsidies 7,878 8,148 8,355 8,518 8,233
Personal benefits 71,992,127 64,546,021 68,361,278 71,835,188 75,467,178
Suppliers 113,799 118,508 28,491 14,538 14,318
Other 292,779 370,522 152,917 152,940 157,442
Total expenses administered on behalf of Government 75,475,206 66,834,150 70,539,678 74,079,135 77,718,355

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
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT
Financial assets
Cash and cash equivalents 11,856 18,804 27,372 44,684 64,590
Receivables 1,099,289 1,150,660 1,206,246 1,245,754 1,292,045
Investments 3,264,044 3,391,459 3,548,246 3,866,529 4,161,071
Other financial assets 364 364 364 364 364
Total financial assets 4,375,553 4,561,287 4,782,228 5,157,331 5,518,070
Non-financial assets
Other 7,065 7,065 7,065 7,065 7,065
Total non-financial assets 7,065 7,065 7,065 7,065 7,065
Total assets administered on behalf of Government 4,382,618 4,568,352 4,789,293 5,164,396 5,525,135
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
Provisions
Other provisions 5,407,524 5,490,791 5,604,724 5,719,818 5,848,187
Total provisions 5,407,524 5,490,791 5,604,724 5,719,818 5,848,187
Payables
Suppliers 9,688 9,688 9,688 9,688 9,688
Subsidies 861 862 863 864 865
Personal benefits payable 2,154,677 1,583,125 1,590,504 1,758,925 2,004,593
Grants 4,535 4,542 4,540 4,544 4,548
Other payables 27,215 27,215 27,215 27,215 27,215
Total payables 2,196,976 1,625,432 1,632,810 1,801,236 2,046,909
Total liabilities administered on behalf of Government 7,604,500 7,116,223 7,237,534 7,521,054 7,895,096

Prepared on Australian Accounting Standards basis.

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

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Interest 113,071 70,207 61,507 71,034 80,405
Other 358,192 294,126 159,457 282,944 284,324
Total cash received 471,263 364,333 220,964 353,978 364,729
Cash used
Grant payments 3,146,375 1,905,092 2,022,456 2,104,299 2,089,170
Subsidies paid 7,877 8,147 8,354 8,517 8,232
Personal benefits 68,810,216 64,971,767 68,283,067 71,565,597 75,128,447
Suppliers 116,929 120,191 30,519 17,112 14,318
Other 291,119 367,674 149,905 149,407 154,717
Total cash used 72,372,516 67,372,871 70,494,301 73,844,932 77,394,884
Net cash from or (used by) operating activities (71,901,253) (67,008,538) (70,273,337) (73,490,954) (77,030,155)
INVESTING ACTIVITIES
Cash used
Investments 191,123 127,415 156,787 318,283 294,542
Total cash used 191,123 127,415 156,787 318,283 294,542
Net cash from or (used by) investing activities (191,123) (127,415) (156,787) (318,283) (294,542)
Net increase or (decrease) in cash held
Cash at beginning of reporting period 11,807 11,856 18,804 27,372 44,684
Cash from Official Public Account for:
- appropriations 72,138,574 67,183,525 70,473,529 73,856,012 77,373,498
Cash to Official Public Account for:
- special accounts (46,149) (40,624) (34,837) (29,463) (28,895)
Cash at end of reporting period 11,856 18,804 27,372 44,684 64,590

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 2008-09 to 2012-13. 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 which are controlled by FaHCSIA. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by FaHCSIA in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities which 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 - 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 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 pay days to benefit recipients at the end of the financial year.

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The Equal Opportunity for Women in the Workplace Agency

Agency resources and planned performance

The Equal Opportunity for Women in the Workplace Agency

Section 1: Agency overview and resources

1.1 Strategic direction

The Equal Opportunity for Women in the Workplace Agency (EOWA) is chartered through the Equal Opportunity for Women in the Workplace Act 1999 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 Equal Opportunity for Women in the Workplace Act 1999 (The Act) requires relevant employers to ensure equal treatment for women with a particular focus in 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 the Equal Opportunity for Women in the Workplace Agency 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
     
  • on-line information and educative tools to assist employers to develop workplace programs and to comply with all aspects of the Equal Opportunity for Women in the Workplace Act 1999
     
  • recognition of leading-practice employers to inspire action.

Throughout 2009-10 EOWA will work closely with over 7,000 relevant employers covered by the Equal Opportunity for Women in the Workplace Act 1999, to improve awareness and understanding about the issues impacting women's workforce participation. EOWA will focus on report assessment, training, research and communications strategy which will deliver increased awareness of equal opportunity initiatives includingpaid 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.

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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: Equal Opportunity for Women in the Workplace Agency Resource Statement-Budget estimates for 2009-10 as at Budget May 2009

 

Estimate of prior year amounts available in
2009-10
$'000
+ Proposed at Budget
2009-10
$'000
= Total Estimate
2009-10
$'000
  Actual Available Appropriation
2009-10
$'000
Ordinary Annual Services1
Departmental
Prior year Departmental appropriation   4   -   -   -
Departmental appropriation   -   2,992   2,992   2,938
s31 Relevant agency receipts3   -   366   366   466
Total   -   3,358   3,358 - 3,404
Total ordinary annual services A     3,358   3,358 - 3,404
Other services2   -   -   -   -
Total other services B -   -   -   -
Departmental non-operating
Equity injections   -   -   -   -
Previous years' outputs   -   -   -   -
Total   -   -   - - -
Total Available Annual Appropriations   -   -   -   -
Special Appropriations
Total Special Appropriations C -   -   -   -
Total Appropriations excluding Special Accounts
Total Special Account D -   -   -   -
Total resourcing
A+B+C+D   -   3,358   3,358   3,404
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 agency X   -   3,358   3,358   3,404

1 Appropriation Bill (No.1) 2009-10

2 Appropriation Bill (No.2) 2009-10

3 s31 Relevant Agency receipts - estimate

4 Estimated adjusted balance carried from previous year for Annual Appropriations Reader note: All figures are GST exclusive.

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1.3 Budget measures

EOWA has no measures in the 2009-10 Budget.

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1.4 Transition from outcomes and outputs to outcomes and programs

From the 2009-10 Budget, all General Government Sector (GGS) entities will be reporting on a program basis. The table below outlines the transition from the 2008-09 Budget year (as at Additional Estimates) which was presented in administered items, outputs and output groups to the program reporting framework used for the 2009-10 Budget. The table also captures revisions made to GGS outcome statements under the Operation Sunlight Outcome Statements Review.

Figure 2: Transition table

Figure 2: Transition table: Transition from outcomes and outputs to outcomes and programs

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1.5 Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

EOWA has no programs for which the Treasury is appropriated under the New Federal Financial Relations Framework.

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Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Agencies deliver programs, which are the Government actions taken to deliver the stated outcomes. 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 the Equal Opportunity for Women in the Workplace Agency (EOWA) in achieving government outcomes.

Outcome 1:

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

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 2009-10, EOWA will work closely with relevant employers to improve awareness, understanding and action on issues impacting women's workforce participation, particularly during an economic downturn. EOWA will focus on report assessment, training, research and communicating the business benefits of equal opportunity initiatives, includingpaid maternity leave, reducing the gender pay gap, 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.

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

Outcome 1 Budgeted Expenses and Resources

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

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 1.1: Equality of Opportunity in Employment for Women
Departmental Expenses
Ordinary Annual Services (Appropriation Bill No. 1) 2,938 2,992
Revenues from Independent Sources (Section 31) 466 366
Special Accounts - -
Total for Program 1.1 3,404 3,358
Outcome 1 Totals by Appropriation type
Departmental Expenses
Ordinary Annual Services (Appropriation Bill No. 1) 2,938 2,992
Revenues from Independent Sources (Section 31) 466 366
Special Accounts - -
Total Expenses for Outcome 1 3,404 3,358
  2008-09 2009-10
Average Staffing Level (number) 19 19

Contributions to Outcome 1

Program 1: Equality of Opportunity in Employment for Women

Program 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 expenses

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

Table 2.1.1.1: Budgeted Expenses for Equality of Opportunity in Employment for Women

('000)

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Annual Departmental Expenses:
Other Departmental - EOWWA 3,500 3,406 3,573 3,448 3,407
Total departmental expenses 3,500 3,406 3,573 3,448 3,407
Key Performance Indicators for Program 1

Key performance indicator

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Overall budget 3,500 3,406 3,573 3,448 3,407
Increase in women in management to 33.63% to 33.97% to 34.3% to 35%  
Increase in paid maternity leave to 50.8% to 52.8% to 53.95% to 55%  
Reduction in pay equity gap amongst EoCFW organisations <=16% <=15.25% <=14.75% <= 14%  
Deliverables for Program 1

Deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Majority of reporting organisations compliant with the Act
Workshop Attendees agree or strongly agree that workshops are informative and valuable   95% 95% 95% 95%

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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 budget year 2009-10. 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 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 Equal Opportunity for Women in the Workplace Agency.

Table 3.1.1: Estimates of Special Account Flows and Balances
  Outcome Opening balance Receipts Payments Adjustments Closing balance
2009-10 2009-10 2009-10 2009-10 2009-10
2008-09
$'000
2008-09
$'000
2008-09
$'000
2008-09
$'000
2008-09
$'000
Other Trust Moneys Account (D) - EOWWA s20 FMA Act Det 1997/01 1 - - - - -
Services for Other Government and Non-Agency Bodies (D) - EOWWA s20 FMA Det 1997/01 1 - - - - -
Special Public Monies (D) 1 - - - - -
Total special accounts
2009-10 Budget estimate   - - - - -
Total special accounts
2008-09 estimate actual   - - - - -

3.1.3 Australian Government Indigenous Expenditure

EOWA has no 2009-10 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 2008-09 and each of the forward years.

Employee and supplier expenses make up the majority of EOWA's operating expenses. Employee expenses are forecast to average 57 per cent and suppliers approximately 36 per cent across the forward years, the total being EOWA's cost in relation to the administration of the Act.

All information technology equipment is out-sourced under a Memorandum of Understanding with FaHCSIA. Depreciation and Amortisation expense is principally comprised 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
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
EXPENSES
Employee benefits 1,889 1,938 1,980 2,098 2,154
Supplier 1,349 1,207 1,333 1,101 1,185
Depreciation and amortisation 262 261 260 249 68
Other - - - - -
Total expenses 3,500 3,406 3,573 3,448 3,407
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services 466 366 466 366 366
Other revenue - - - - -
Total revenue 466 366 466 366 366
Gains
Sale of assets
Other gains 96 48 100 44 44
Total gains 96 48 100 44 44
Total own-source income 562 414 566 410 410
Net cost of (contribution by) services 2,938 2,992 3,007 3,038 2,997
Appropriation revenue 2,938 2,992 3,007 3,038 2,997
Surplus (Deficit) - - - - -
Surplus (Deficit) attributable to the Australian Government* - - - - -
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves - - - - -
Total other comprehensive income - - - - -
Total comprehensive income - - - - -
Total comprehensive income attributable to the Australian Government - - - - -

Prepared on Australian Accounting Standards basis.

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

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS
Financial assets
Cash and equivalents 247 408 368 673 741
Trade and other Receivables 1,965 2,018 2,271 2,168 2,168
Other 18 18 18 18 18
Total financial assets 2,230 2,444 2,657 2,859 2,927
Non-financial assets
Land and buildings 375 275 175 75 10
Infrastructure, plant and equipment 11 10 9 6 3
Intangibles 465 305 146 - -
Biological assets - - - - -
Other 5 5 5 5 5
Total non-financial assets 856 595 335 86 18
Assets held for sale - - - - -
Total assets 3,086 3,039 2,992 2,945 2,945
LIABILITIES
Provisions
Employees 482 482 482 482 482
Other 169 122 75 28 28
Total provisions 651 604 557 510 510
Payables
Suppliers 131 131 131 131 131
Other 132 132 132 132 132
Total payables 263 263 263 263 263
Liabilities included in disposal groups held for sale - - - - -
Total liabilities 914 867 820 773 773
Net assets 2,172 2,172 2,172 2,172 2,172
EQUITY*
Parent entity interest
Contributed equity 733 733 733 733 733
Reserves 40 40 40 40 40
Retained surpluses or accumulated deficits 1,399 1,399 1,399 1,399 1,399
Total parent entity interest 2,172 2,172 2,172 2,172 2,172
Total equity 2,172 2,172 2,172 2,172 2,172
Current assets 2,235 2,449 2,662 2,864 2,932
Non-current assets 851 590 330 81 13
Current liabilities 814 767 720 673 673
Non-current liabilities 100 100 100 100 100

*Note: '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
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Goods and services 466 366 466 366 366
Appropriations 2,628 2,939 2,754 3,141 2,997
Other 229 136 198 44 44
Total cash received 3,323 3,441 3,418 3,551 3,407
Cash used
Employees 1,889 1,938 1,980 2,098 2,154
Suppliers 1,349 1,207 1,333 1,101 1,185
Other 23 135 145 47 -
Total cash used 3,261 3,280 3,458 3,246 3,339
Net cash from or (used by) operating activities 62 161 - 40 305 68
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment - - - - -
Other - - - - -
Total cash received - - - - -
Cash used
Purchase of property, plant and equipment - - - - -
Other - - - - -
Total cash used - - - - -
Net cash from or (used by) investing activities - - - - -
Net cash from or (used by) financing activities - - - - -
Net increase or (decrease) in cash held - - - - -
Cash at the beginning of the reporting period 184 246 407 367 672
Cash at the end of the reporting period 246 407 367 672 740

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity-summary of movement (Budget year 2009-10)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2009
Balance carried forward from previous period 733 40 - 1,399 2,172
Adjustment for changes in accounting policies - - - - -
Adjusted opening balance 733 40 - 1,399 2,172
Surplus (deficit) for the period - - - - -
Estimated closing balance
as at 30 June 2010
733 40 - 1,399 2,172

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement

EOWA does not have any capital expenditure in the forward years.

3.2.4 Notes to the financial statements

Basis of accounting

Accounting Policy

EOWA's 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 output

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Aboriginal Hostels Limited

Agency resources and planned performance

Section 1: Agency overview and resources

1.1 Strategic Direction

The purpose of Aboriginal Hostels Limited (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 the Indigenous communities including those who are homeless, transient, employment, student, medical transient and others in need of affordable accommodation. AHL continually strives to improve Indigenous Australians' access to services and provide support to Indigenous Australians to acquire the life skills necessary to make informed choices about their future and to meet the demands of employment and urban social environments.

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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: Aboriginal Hostels Limited resource statement - Budget estimates for 2009-10 as at Budget May 2009

 

Estimate of prior year amounts available in
2009-10
$'000
+ Proposed at Budget
2009-10
$'000
= Total Estimate
2009-10
$'000
Actual Available Appropriation
2009-10
$'000
Opening Balance/Reserves at Bank1   -   21,827   21,827 11,578
            -  
REVENUE FROM GOVERNMENT           -  
Ordinary Annual Services2           -  
Outcome 1: Hostels   -   36,840   36,840 34,281
Other services3
Non-Operating -Equity Injections   -   3,790   3,790 6,472
Total Annual Appropriations       40,630   40,630 40,753
Payments from related entities4
Grants and Subsidies
Department of Health and Ageing   -   2,413   2,413 3,195
Indigenous Youth Mobility Program   -   476   476 1,706
Total5   -   2,889   2,889 4,901
Total Funds from Government   -   43,519   43,519 45,654
FUNDS FROM OTHER SOURCES
Accommodation Charges   -   8,869   8,869 8,528
Interest   -   500   500 500
Other   -   182   182 182
Total5   -   9,551   9,551 9,210
Total net resourcing for Agency   -   74,897   74,897 66,442

All figures are GST exclusive

CRF - Consolidated Revenue Fund

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 which are then paid to Aboriginal Hostels Limited and are considered 'departmental' for all purposes.

1 Cash funds built up to meet pending commitments for new hostels such as Kununurra Secondary Education, WA, Townsville renal dialysis and Noongar Elders Home in Kenwick, WA, are to fund replacement of existing assets and supporting systems nearing the end of their useful life.

2 Appropriation Bill (No.1) 2009-10

3 Appropriation Bill (No.2) 2009-10

4 Funding provided by another Government body

5 This represents total revenue for other services as shown in Table 2.1 of $12,440 ($2,889 + $9,551)

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1.3 Budget measures

AHL has no measures in the 2009-10 Budget.

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1.4 Transition from outcomes and outputs to outcomes and programs

Figure 2: Transition table

Figure 2: Transition table: Transition from outcomes and outputs to outcomes and programs

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1.5 Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

AHL has no programs for which the Treasury is appropriated under the New Federal Financial Relations Framework.

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Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Agencies deliver programs which are the government actions taken to deliver the stated outcomes. 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 AHL 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 four major areas of activity in 2009-10:

  • 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 health organisations to improve Indigenous health outcomes.

  • Access services for Indigenous Australians

    AHL will continue in 2009-10 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 engaging 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 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.

  • Human resources

    AHL will review its human resource internal systems to improve efficiency. The review also aims to achieve better recognition of regional skills, better regional accountability and recognition of staff achievements.

Outcome 1 Budgeted Expenses and Resources

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

Table 2.1.1: Budgeted Expenses and Resources for Outcome 1

Outcome 1:

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expense    
$'000
Program 1.1: Company owned and operated hostels
Revenue from Government
Ordinary Annual Services (Appropriation Bill No. 1) 27,881 30,440
Total for Program 1.1 27,881 30,440
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 34,281 36,840
Revenue from other sources
Program 1.1 - Company owned and operated hostels 12,311 12,440
Program 1.2 - Community operated hostels 1,800 -
Total revenue from other sources 14,111 12,440
Total price from departmental programs (Total revenue from Government and from other sources) 48,392 49,280
Total estimated resourcing for Outcome 1 (Total price of programs and administered appropriations) 48,392 49,280
  2008-09 2009-10
Average Staffing Level (number) 415 415

Note: Departmental Appropriation splits and totals, by outcome and output, are indicative estimates 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 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 expenses

The reduction in expenses from 2008-09 to 2009-10 reflects one-off payments in special appropriations related to the budget measures for the Economic Security Strategy and Nation Building and Jobs Plan.

The change in expenses across the forward years reflects the estimates provided in policy initiatives and the effect of indexation including the extension of the Family Support Drought Response Teams program to 2009-10 and funds for the NTER-Supporting Families, Community Safety-The way Forward to 2011-12.

Table 2.1.1.1: Budgeted Expenses for Equality of Opportunity in Employment for Women

('000)

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Company Owned and Operated Hostels
Annual Departmental Expenses: 40,191 42,879 47,274 47,698 47,117
Total Program Expenses 40,191 42,879 47,274 47,698 47,117
Program 1.1 Key Performance Indicators
  • Average nightly occupancy rate as a percentage of available beds in community operated hostels in each financial year.
  • Percentage of residents who were satisfied with the accommodation provided.
 

Key Performance Indicators

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Average nightly occupancy rate as a percentage 70 70 70 70 70
Percentage of residents satisfied with accommodation provided 75 75 75 75 75
Program 1.1 Deliverables

The maximum number of occupancy nights available in each financial year

 

Deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Guest capacity (beds per night) 1,700 1,794 1,794 1,794 1,794

Program 1.2: Community Operated Hostels

Program objective

To provide 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 expenses

Funding from the Department of Health and Ageing (DoHA) will cease on the 30 June 2009. This reduces the grants in the community operated hostels by $1.8 million. DoHA will now administer the grants to community operated aged care nursing homes directly from 2009-10.

Table 2.1.1.2: Budgeted Expenses for community operated hostels

('000)

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
Community Operated Hostels
Annual Departmental Expenses: 8,200 6,400 6,400 6,400 6,400
Total Program Expenses 8,200 6,400 6,400 6,400 6,400
Program 1.2 Key Performance Indicators

The average nightly occupancy rate as a percentage of available beds in community operated hostels in each financial year.

The percentage of residents who were satisfied with the accommodation provided.

 

Key Performance Indicators

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Average nightly occupancy rate as a percentage of available beds in community operated hostels in each financial year 70 70 70 70 70
Percentage of residents satisfied with accommodation provided 75 75 75 75 75
Program 1.2 Deliverables

The maximum number of occupancy nights available in each financial year

 

Deliverables

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Guest capacity (beds per night) 1,520 1,333 1,333 1,333 1,333

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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 budget year 2009-10. 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 2009-10.

3.1.2 Special Accounts

AHL has no special accounts for 2009-10.

3.1.3 Australian Government Indigenous Expenditure

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)

Outcome

Appropriations   Other Total Program

Bill No. 1
$'000
(A)

Bill No. 2
$'000
(B)
Special Approp
$'000
(C)
Total Approp
$'000
(D)
   
$'000
(E)
 
$'000
(F)=(D)+(E)
 
(G)
Aboriginal Hostels Ltd
Outcome 1                
Departmental 2009-10 30,440 3,790 - 34,230   12,440 46,670 1.1
Departmental 2008-09 27,881 6,472 - 34,353   12,249 46,602 1.1
Departmental 2009-10 6,400 - - 6,400     6,400 1.2
Departmental 2008-09 6,400 - - 6,400   1 6,400 1.2
Total Outcome 2009-10 36,840 3,790 - 40,630   12,440 53,070  
Total Outcome 2008-09 34,281 6,472 - 40,753   12,249 53,002  
Total AGIE 2009-10 36,840 3,790 - 40,630   12,440 53,070  
Total AGIE 2008-09 34,281 6,472 - 40,753   12,249 53,002  

1 $1.8 million of grant income is excluded from Other in to avoid double counting of expenditure included in AGIE summary for the Department of Health and Ageing in the 2008-09 year. If the figure is included, other income total would be $14.049 million ($12.249 million for Output 1.1+ $1.8 million for Output 1.2) resulting in total Output Group of $54.802 million

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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 (AAS) and Government Finance Statistics (GFS). Furthermore, there are no differences which 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 2009-10 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 $2.55 million in 2009-10 as a result of additional operating funds for Kununurra Secondary Education Hostel ($0.3 million) and Fire Safety depreciation ($0.1 million) and net increase in ongoing operational costs of $0.2 million.

Accommodation charges have increased due to revision of tariff rates in line with the increase in Centrelink benefits and the planned opening of new hostels such as the Kununurra Secondary Education Hostel and Renal Dialysis hostel in Townsville.

Indigenous Youth Mobility Program (IYMP) is a four-year program ending on 30 June 2009. To date $15.3 million has been received. A final payment of $0.4 million is due in 2009-10.

Total Expenses

Salaries and employee benefits-these have been increased by $1.8 million as a result of new AHL hostels in Mt Isa redevelopment, Kununurra and Townsville.

Suppliers-this includes food, materials, services and sundry expenses.

Depreciation and Amortisation-higher level of depreciation expenditure flows from the acquisition costs for fire safety works across all AHL sites of $5.0 million over the three financial years to 2009-10.

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

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 2008-09 and the Budget for 2009-10 in the Balance Sheet are as follows:

  • Investment activity in non-current assets continues to increase in 2009-10 due to the capital equity injections Renal Dialysis Hostels ($3.7 million) and Noongar Elders Home in Perth ($0.8 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 higher than normal cash balance.
     
  • The receivables are fairly stable and include items such as GST refunds due from 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 2008-09 and budget for 2009-10 in the Statement of Cash Flows are as follows:

  • The increase in total cash to be received in 2009-10 is linked to the increase in appropriation and higher level of accommodation charges collected ($0.13 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 increases in 2009-10 due to the use of the capital equity injections for Renal Dialysis Hostels ($3.7 million) and Noongar Elders Home in Perth ($1.6 million).

Departmental statement of changes in equity - summary of movement

The changes in the statement of equity is represented by $0.001 million surplus for the 2009-10 financial year and $3.8 million capital equity injections, made up of Renal Dialysis Hostels ($1.05 million), Noongar Elders Home in Perth ($0.8 million) and Fire Safety Works ($1.94 million).

3.2.3 Budgeted financial statements tables

Table 3.2.1: Budgeted departmental comprehensive income statement
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
EXPENSES
Employee benefits 24,066 25,869 27,431 27,435 27,054
Supplier 13,641 14,060 16,214 16,248 16,048
Grants 8,200 6,400 6,400 6,400 6,400
Depreciation and amortisation 2,374 2,840 3,519 3,905 3,905
Write-down and impairment of assets 110 110 110 110 110
Finance costs
Other - - - - -
Total expenses 48,391 49,279 53,674 54,098 53,517
LESS:
OWN-SOURCE INCOME
Revenue
Accommodation Charges 8,528 8,869 9,000 9,427 9,427
Appropriations 34,281 36,840 42,193 42,190 41,609
Grants and Subsidies
Department of Health and Ageing 3,010 2,413 1,800 1,800 1,800
Indigenous Youth Mobility Program 1,891 476 - - -
Interest 500 500 500 500 500
Other revenue 182 182 182 182 182
Total revenue 48,392 49,280 53,675 54,099 53,518
Surplus (Deficit) 1 1 1 1 1
Surplus (Deficit) attributable to the Australian Government 1 1 1 1 1

* This amount includes H&C depreciation expense which is no longer funded as follows: $200 2009-10, $200 2010-11, $200 2011-12 and $200 2012-13.

Table 3.2.2: Budgeted departmental balance sheet
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS
Financial assets
Cash and equivalents 21,827 20,524 18,890 17,642 16,394
Trade and other Receivables 979 979 979 979 979
Total financial assets 22,806 21,503 19,869 18,621 17,373
Non-financial assets
Land and buildings 64,612 69,343 70,615 71,501 72,387
Infrastructure, plant and equipment 2,557 2,917 3,277 3,637 3,997
Heritage and cultural assets 102 105 108 111 114
Total non-financial assets 67,271 72,365 74,000 75,249 76,498
Total assets 90,077 93,868 93,869 93,870 93,871
LIABILITIES
Provisions
Employees 3,262 3,262 3,262 3,262 3,262
Total provisions 3,262 3,262 3,262 3,262 3,262
Payables
Suppliers 514 514 514 514 514
Total payables 514 514 514 514 514
Total liabilities 3,776 3,776 3,776 3,776 3,776
Net assets 86,301 90,092 90,093 90,094 90,095
EQUITY*
Parent entity interest
Contributed equity 77,371 81,161 81,161 81,161 81,161
Retained surpluses or accumulated deficits 8,930 8,931 8,932 8,933 8,934
Total equity 86,301 90,092 90,093 90,094 90,095
Current assets 22,806 21,503 19,869 18,621 17,373
Non-current assets 67,271 72,365 74,000 75,249 76,498
Current liabilities 3,262 3,262 3,262 3,262 3,262
Non-current liabilities 514 514 514 514 514

Prepared on Australian Accounting standards basis

*Note: 'equity' is the residual interest in assets after deduction of liabilities.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Accomodation Charges 8,441 8,759 8,890 9,317 9,317
Appropriations 34,281 36,640 42,193 42,190 42,609
Grants and Subsidies 4,901 2,889 1,800 1,800 1,800
Interest 500 500 500 500 500
Other 2,558 2,597 2,597 2,597 2,597
Total cash received 50,681 51,385 55,980 56,404 56,823
Cash used
Employees 23,113 24,841 26,371 26,375 26,375
Suppliers 17,009 17,303 19,689 19,723 20,142
Grants 8,200 6,400 6,400 6,400 6,400
Total cash used 48,322 48,544 52,460 52,498 52,917
Net cash from or (used by) operating activities 2,359 2,841 3,520 3,906 3,906
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment 11,804 7,934 5,154 5,154 5,154
Net cash from or (used by) investing activities (11,804) (7,934) (5,154) (5,154) (5,154)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity 6,472 3,790 - - -
Net cash from or (used by) financing activities 6,472 3,790 - - -
Net increase or (decrease) in cash held (2,973) (1,303) (1,634) (1,248) (1,248)
Cash at the beginning of the reporting period 24,800 21,827 20,524 18,890 17,642
Cash at the end of the reporting period 21,827 20,524 18,890 17,642 16,394

Prepared on Australian Accounting standards basis

Table 3.2.4: Departmental statement of changes in equity-summary of movement (Budget year 2009-10)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2009
Balance carried forward from previous period 8,930 - - 77,371 86,301
Adjusted opening balance 8,930 - - 77,371 86,301
Income and expense
Surplus (deficit) for the period 1 - - - 1
Total income and expenses recognised directly in equity 1 - - - 1
Transactions with owners
Contribution by owners
Appropriation (equity injection)
- - - 3,790 3,790
Sub-total transactions with owners - - - 3,790 3,790
Estimated closing balance
as at 30 June 2010
8,931 - - 81,161 90,092
Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
CAPITAL APPROPRIATIONS
Total equity injections 6,472 3,790 - - -
Total capital appropriations 6,472 3,790 - - -
Represented by:
Purchase of non-financial assets 6,472 3,790 - - -
Total represented by 6,472 3,790 - - -
ACQUISITION OF NON-FINANCIAL ASSETS
Funded by capital appropriations 6,472 3,790 - - -
Funded internally from Departmental resources1 5,332 4,144 5,154 5,154 5,154
TOTAL 11,804 7,934 5,154 5,154 5,154

1 Includes the following sources of funding:

- annual and prior year appropriations

- donations and contributions

- gifts

- finance leases

- internally developed assets

- s31 relevant agency receipts

- proceeds from the sale of assets

Table 3.2.6: Statement of Asset Movements-Departmental

 

Land
$'000
Buildings
$'000
Other Infrastructure,
Plant&Equipments
$'000
Heritage&Cultural Assets
$'000
Total
$'000
as at 1 July 2009
Gross book value 5,740 82,433 4,582 119 92,874
Accumulated depreciation/amortisation - 23,561 2,025 17 25,603
Opening net book balance 5,740 58,872 2,557 102 67,271
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed - 7,280 650 4 7,934
Sub-total - 7,280 650 4 7,934
as at 30 June 2010
Gross book value 5,740 89,713 5,232 123 100,808
Accumulated depreciation/amortisation - 26,110 2,315 18 28,443
Closing net book balance 5,740 63,603 2,917 105 72,365

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 2008-09.

Reference should be made to AHL's Annual Report 2008-09 for detailed disclosure of AHL's accounting policies.

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Indigenous Business Australia

Agency resources and planned performance

Section 1: Agency Overview and Resources

1.1 Strategic Direction

Indigenous Business Australia's (IBA) vision is for a nation in which the First Australians are economically independent and an integral part of the economy. Under its legislation-the Aboriginal 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:

  • Building an asset base and returning dividends which can contribute to both social and economic outcomes. 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 basis for developing small business opportunities. Initiatives are also implemented to support and develop the capacity of Indigenous joint venture partners.
     
  • In order to improve the level of Indigenous participation in small business, IBA has arranged services and support arrangements which enable potential entrepreneurs to build awareness and business skills, provide concessional business loans and aftercare services and facilitate access to mainstream finance.
     
  • Closing the gap in home ownership concessional home loans and assistance with ongoing loan management and aspects of home ownership are provided for aspiring Indigenous home owners who cannot access bank loans.
     
  • Creating opportunities for employment and training to contribute to closing the gap in employment. Through its investments and provision of support in establishing and maintaining Indigenous businesses, IBA generates direct and indirect employment outcomes. Appropriate monitoring measures have been adopted.

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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: Commonwealth Authorities and Companies Act 1997 Body - Indigenous Business Australia Resource Statement-Budget estimates for 2009-10
as at Budget May 2009

Source

Estimate of prior year amounts available in
2009-10
$'000
+ Proposed at Budget
2009-10
$'000
= Total Estimate
2009-10
$'000
Estimated Available Appropriation
2009-10
$'000
Opening Balance/Reserves at Bank   -   -   - -
REVENUE FROM GOVERNMENT
Ordinary Annual Services1
Outcome 1   -   38,840   38,840 37,402
Total ordinary annual services   -   38,840   38,840 37,402
Other services2
Non-Operating   -   33,170   33,170 41,508
Total other services   -   33,170   33,170 41,508
Total Annual Appropriations   -   72,010   72,010 78,910
Payments from related entities3
Amounts from the portfolio department   -   10,700   10,700 11,558
Total   -   10,700   10,700 11,558
Total Funds from Government   -   82,710   82,710 90,468
FUNDS FROM OTHER SOURCES
Interest   -   36,417   36,417 46,458
Dividends   -   11,000   11,000 12,874
Sale of goods and services   -   1,136   1,136 451
Rents   -   1,100   1,100 1,345
Unwind Concessional Loan Discount   -   -   - 15,000
Total   -   49,653   49,653 76,128
Total net resourcing for IBA   -   132,363   132,363 166,596

All figures are GST exclusive

Indigenous Business Australia is not directly appropriated as it is a CAC Act body. Appropriations are made to FMA Agency FaHCSIA which are then paid to Indigenous Business Australia and are considered 'departmental' for all purposes.

1 Appropriation Bill (No.1) 2009-10

2 Appropriation Bill (No.2) 2009-10

3 Funding provided by a Government body that is not specified within the annual appropriation bills as a payment to the CAC Act body.

Third Party Drawdowns 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

Indigenous Business Australia has no new budget measures in 2009-10.

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1.4 Transition from outcomes and outputs to outcomes and programs

From the 2009-10 Budget, all General Government Sector (GGS) entities will be reporting on a program basis. The table below outlines the transition from the 2008-09 Budget year (as at Additional Estimates) which was presented in administered items, outputs and output groups to the program reporting framework used for the 2009-10 Budget. The table also captures revisions made to GGS outcome statements under the Operation Sunlight Outcome Statements Review.

Figure 2: Transition table: Transition from outcomes and outputs to outcomes and programs

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1.5 Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

IBA has no programs for which the Treasury is appropriated under the New Federal Financial Relations Framework.

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Section 2: Outcomes and Planned Performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Agencies deliver programs which are the Government actions taken to deliver the stated outcomes. 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 Indigenous Business Australia in achieving Government outcomes.

Outcome 1:

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

Outcome 1 Strategy

Indigenous Business Australia (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. 

Indigenous Business Australia 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 1 Budgeted Expenses and Resources

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: Indigenous Business Australia

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expenses    
$'000
Program 1.1: Equities and Investments
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 2,764 -
Revenues from independent sources 21,056 19,591
Total for Program 1.1 23,820 19,591
Program 1.2: Home Ownership Program
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 6,756 8,021
Revenues from independent sources 8,517 21,796
Total for Program 1.2 15,273 29,817
Program 1.3: Business Development Program
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 20,774 23,660
Revenues from independent sources 5,706 3,567
Expenses not requiring Appropriation in the Budget year 3,391 11,574
Total for Program 1.3 29,871 38,801
Program 1.4: Home Ownership on Indigenous Land
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 7,108 7,160
Revenues from independent sources 2,691 1,770
Expenses not requiring Appropriation in the Budget year (8,019) -
Total for Program 1.4 1,780 8,930
Outcome 1 totals by appropriation type:
Departmental expenses
Ordinary Annual Services (Appropriation Bill No. 1) 37,402 38,840
Revenues from independent sources 37,970 46,724
Expenses not requiring Appropriation in the Budget year (4,628) 11,574
Total Expenses for Outcome 1 70,744 97,138
  2008-09 2009-10
Average staffing level (number) 229 249

Contributions to Outcome 1

Program 1.1: Equity and Investments

Program objective

IBA brings together Indigenous Australians and industry capability partners into sustainable commercial joint ventures which provide wealth creation opportunities and other economic and social benefits through asset accumulation, profit distribution and employment opportunities.

Program expenses

Program 1.1 will not receive minor Government funding in 2009-10 only, but will cover its operating expenses through prudent management of the investment portfolio.

Table 2.1.1.1: Budgeted Expenses for Business Development and Assistance

('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Total Departmental Expenses 23,820 19,591 17,019 18,769 20,341
Total departmental expenses 23,820 19,591 17,019 18,769 20,341
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

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Percentage return on Investment 7% 7% 7% 7% 7%
Increase in new investments with Indigenous co-investors 3 3 5 5 7
Percentage increase in profit distribution to Indigenous partners 1% 1% 2% 2% 2%
Increase in percentage of Indigenous jobs created or supported by investment portfolio 1% 1% 2% 2% 2%
Program 1.1 Deliverables

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

Program 1.2: Home Ownership Program

Program 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 they are closer to that of the wider Australian community.

Program expenses

The interest component of loan repayments has reduced significantly since the beginning of 2008-09 as a result of loan interest rates moving in line with movement in official interest rates. Early loan discharges have also decreased, which is a normal consequence in times of rising unemployment and economic uncertainty. The resultant lower revenue and rising average loan sizes have resulted in lower new loan projections over 2009-10 and the Budget outyears.

Table 2.1.1.2: Budgeted Expenses for Home Ownership Program

Program expenses 1.2
('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Total Departmental Expenses* 15,273 29,817 33,965 35,950 36,798
Total departmental expenses 15,273 29,817 33,965 35,950 36,798

* 2008-09 amount is lower, adjustment is due to AASB 139. This was a revenue in 2008-09 and an expense in 2009-10.

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

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
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 70% of loans 75% of loans 75% of loans 75% of loans 75% of loans
Program 1.2 Deliverables

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

 

Program deliverables

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of new home loans 360 360 350 350 350
Aggregate loans in the portfolio 3,400 3,400 3,400 3,400 3,400

Program 1.3: Business Development and Assistance

Program objective

IBA works with Indigenous Australians to help them succeed in business. The focus is on the long-term viability of the business as distinct from simply getting into business.

This objective is achieved through providing business loans to clients who cannot access private sector finance, together with business support to assist clients to access finance and to manage their businesses successfully.

Program expenses

As our clients are small to medium-sized businesses that require ongoing support through tough economic times it is anticipated that the expenses for business support will increase.

However it is not anticipated that our overall costs will increase as our expense profile over the short term will shift from new loan approvals to current loan maintenance.

Table 2.1.1.3: Budgeted Expenses for Business Development and Assistance

Program expenses 1.3
('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Total Departmental Expenses* 29,871 38,801 35,645 36,333 36,497
Total departmental expenses 29,871 38,801 35,645 36,333 36,497
Program 1.3 Key Performance Indicators

The outcome 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 key performance indicators in the table below.


 

Key performance indicators

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Survival rate for new businesses funded past the first year 60% 60% 65% 70% 70%
Percentage of clients who have started and remained in Business who have been assisted through business support or Economic Development Initiatives 20% 20% 20% 20% 20%
Program 1.3 Deliverables

IBA Enterprises has an integrated suite of products: business loans, business support and Economic Development Initiatives (EDIs). The business loans help clients to access finance for viable business proposals, where they are unable to meet bank lending criteria. The business support assists clients to plan their proposed business and assess its viability, to access business management training and to access mentoring in the critical first year or so of being in business. EDIs support projects that facilitate the development of business related skills, knowledge, information and assistance, research economic opportunities and overcome barriers to Indigenous people owning and operating successful businesses.

 

Deliverables

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Business Support: Number of approvals 600 650 650 650 650
Economic development : Number of Initiatives approved 50 60 60 60 60
Loans: Number of new loans approved 70 50 50 60 70
Employment: Jobs created/supported through program 220 150 150 180 210

Program 1.4: Home Ownership on Indigenous Land (HOIL)

Program objective

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

Program expenses

New HOIL loans are expected to rise significantly each year before stabilising at about 100 loans per annum in 2011-12. 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. The reduced number of loans and expenditure in the early years is largely as a result of the delays in establishing the necessary land tenure reforms by state and territory agencies and the time required to put in place the necessary land leasing frameworks and systems to ensure the effective implementation of HOIL.

Table 2.1.1.4: Budgeted Expenses for Business Development and Assistance

('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Total Departmental Expenses 1,780 8,930 5,483 5,503 5,505
Total departmental expenses 1,780 8,930 5,483 5,503 5,505
Program 1.4 Key Performance Indicators

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

 

Key performance indicators

2008-09
Revised budget
2009-10
Budget Target
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of new communities actively participating in the Home Ownership on Indigenous Land Program 6 8 15 20 25
Number of new loans 2 40 60 80 100
Aggregate loans in the portfolio 2 50 110 190 290
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 land tenure.

 

Deliverables

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Number of new loans 9 40 70 100 167
Aggregate loans in the portfolio 10 50 120 220 387

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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 Budget year 2009-10. 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
Special Approp
$'000
Total Approp
$'000
   
$'000
 
$'000
 
Indigenous Business Australia
Outcome 1
Departmental 2009-10 38,840 33,170 - 72,010   49,473 121,483 All Programs
Departmental 2008-09 37,402 41,508 - 78,910   76,123 155,033 All Programs
Total Outcome 2009-10 38,840 33,170 - 72,010   49,473 121,483 All Programs
Total Outcome 2008-09 37,402 41,508 - 78,910   76,123 155,033 All Programs
Total AGIE 2009-10 38,840 33,170 - 72,010   49,473 121,483 All Programs
Total AGIE 2008-09 37,402 41,508 - 78,910   76,123 155,033 All Programs

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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 2008-09 estimated actual results are used as the comparative year in the analysis.

Budgeted Agency Income Statement

IBA is budgeting for an operating result of $2.1 million in 2009-10, compared to an estimated actual for 2008-09 of $54.3 million. There are significant changes in revenue and expenses across the two financial years. They are:

  • Revenue in 2009-10 has reduced by $25.8 million against 2008-09, driven primarily by the following:
    • drop in interest rates resulting in significantly lower interest income of $10.0 million
    • IBA regularly re-values its concessional rate loan portfolio against market rates of interest as mandated by the accounting standards (AASB 139), and the resultant discount is debited to the income statement as a non-cash item. However, with a significant drop in interest rates in 2008-09, this has resulted in a writeback of earlier year discounts of $15.0 million, with a credit to the income statement.
  • There has been an overall increase in total expenses of $26.4 million driven by:
    • an increase of $12.5 million for Concessional Loan Discount, being the discount on revaluation of the concessional rate loan portfolio, as per AASB 139
    • an increase in grants of $11.0 million.

Budgeted Agency Balance Sheet

Budgeted net assets for 2009-10 of $1,024.9 million represents an increase of $35.3 million over estimated actual for 2008-09, primarily due to:

  • continuing capital injections from Government of $33.2 million
  • accumulated surpluses increase by $2.1 million due to the budgeted 2009-10 operating surplus.

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

IBA continues to reinvest dividend receipts into investments in 2008-09 and 2009-10. Lending activity has decreased with new loans decreasing from $121.0 million to $100.8 million. 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 $35.3 million due to an additional equity injection of $33.2 million and the inclusion of the budgeted net operating result of $2.1 million.

3.2.3: Budgeted financial statements tables

Table 3.2.1: Budgeted departmental income statement (for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
INCOME
Revenue
Revenues from Government 37,402 38,840 38,902 39,615 39,584
Goods and services 12,009 11,836 8,380 10,530 12,649
Interest 46,458 36,417 39,705 41,807 42,912
Dividends 12,874 11,000 11,550 12,474 13,472
Unwind Concessional Loan Discount 15,000 - - - -
Rents 1,345 1,100 1,100 1,100 1,100
Total revenue 125,088 99,193 99,637 105,526 109,717
Gains
Sale of assets - - - - -
Total gains - - - - -
Total income 125,088 99,193 99,637 105,526 109,717
EXPENSE
Employees 23,489 27,651 28,448 29,530 30,481
Suppliers 31,356 30,627 25,848 28,074 29,393
Grants 9,010 20,769 18,540 18,857 19,157
Depreciation and amortisation 1,211 1,528 1,312 608 417
Finance costs 89 63 63 63 63
Write-down of assets and impairment of assets 5,589 4,000 901 844 792
Concessional Loan Discount - 12,500 17,000 18,579 18,836
Total expenses 70,744 97,138 92,112 96,555 99,139
Surplus (deficit) attributable to the Australian Government 54,344 2,055 7,525 8,971 10,578

Prepared on Australian Accounting Standards basis

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

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS
Financial assets
Cash and equivalents 58,698 66,829 79,959 91,804 101,670
Receivables 545,831 562,610 572,993 584,222 599,317
Investments acounted for using the equity method 29,386 29,386 29,386 29,386 29,386
Other investments 353,972 364,972 364,972 364,972 364,972
Total financial assets 987,887 1,023,797 1,047,310 1,070,384 1,095,345
Non-financial assets
Land and buildings 756 479 202 - -
Infrastructure, plant and equipment 1,808 1,817 940 884 201
Investment properties 18,638 19,038 19,038 19,038 19,038
Intangibles 668 551 145 - -
Other 108 108 108 108 108
Total non-financial assets 21,978 21,993 20,433 20,030 19,347
Total assets 1,009,865 1,045,790 1,067,743 1,090,414 1,114,692
LIABILITIES
Provisions
Employees 6,046 6,746 7,474 7,474 7,474
Other 8,342 8,342 8,342 8,342 8,342
Total provisions 14,388 15,088 15,816 15,816 15,816
Payables
Suppliers 4,837 4,837 4,837 4,837 4,837
Other 1,010 1,010 1,010 1,010 1,010
Total payables 5,847 5,847 5,847 5,847 5,847
Total liabilities 20,235 20,935 21,663 21,663 21,663
Net assets 989,630 1,024,855 1,046,080 1,068,751 1,093,029
EQUITY*
Parent entity interest
Contributed equity 728,504 761,674 775,374 789,074 802,774
Reserves 21,576 21,576 21,576 21,576 21,576
Retained surpluses or accumulated deficits 239,550 241,605 249,130 258,101 268,679
Total parent entity interest 989,630 1,024,855 1,046,080 1,068,751 1,093,029
Total equity 989,630 1,024,855 1,046,080 1,068,751 1,093,029
Current assets 284,255 298,526 312,954 326,231 337,967
Non-current assets 725,609 747,324 755,110 764,814 777,716
Current liabilities 5,847 5,847 5,847 5,847 5,847
Non-current liabilities 14,388 15,088 15,816 15,816 15,816

Prepared on Australian Accounting Standards basis

*Note: 'equity' is the residual interest in assets after deduction of liabilities.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Goods and services 12,009 11,836 8,380 10,530 12,649
Appropriations 37,402 38,840 38,902 39,615 39,584
Interest 46,458 36,417 39,705 41,807 42,912
Dividends 26,681 11,000 11,550 12,474 13,472
Other 1,345 1,100 1,100 1,100 1,100
Total cash received 123,895 99,193 99,637 105,526 109,717
Cash used
Employees 22,816 26,951 27,720 29,530 30,480
Suppliers 58,900 30,691 25,911 28,137 29,457
Grants 9,010 20,769 18,540 18,857 19,157
Total cash used 90,726 78,411 72,171 76,524 79,094
Net cash from or (used by) operating activities 33,169 20,782 27,466 29,002 30,623
INVESTING ACTIVITIES
Cash received
Proceeds from the sales of PPE 3,978 - 248 - 266
Investments - 20,000 30,000 30,000 30,000
Repayments of loans made 72,920 67,521 75,116 75,748 71,677
Total cash received 76,898 87,521 105,364 105,748 101,943
Cash used
Purchase of property, plant and equipment - 1,542 - 205 -
Purchase of investments 28,000 31,000 30,000 30,000 30,000
Loans made 121,200 100,800 103,400 106,400 106,400
Total cash used 149,200 133,342 133,400 136,605 136,400
Net cash from or (used by) investing activities (72,302) (45,821) (28,036) (30,857) (34,457)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity 41,508 33,170 13,700 13,700 13,700
Total cash received 41,508 33,170 13,700 13,700 13,700
Net cash from or (used by) financing activities 41,508 33,170 13,700 13,700 13,700
Net increase or (decrease) in cash held 2,375 8,131 13,130 11,845 9,866
Cash at the beginning of the reporting period 56,323 58,698 66,829 79,959 91,804
Cash at the end of the reporting period 58,698 66,829 79,959 91,804 101,670
Table 3.2.4: Departmental statement of changes in equity-summary of movement
(Budget year 2009-10)

 

Accumulated results
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2009
Balance carried forward from previous period 239,550 21,576   728,504 989,630
Opening balance adjustment - - - - -
Adjusted opening balance 239,550 21,576 - 728,504 989,630
Income and expense
Income and expenses recognised directly in equity: - - - - -
Gain/loss on revaluation of property - - - - -
Sub-total income and expense - - - - -
Net operating result 2,055 - - - 2,055
Total income and expenses recognised directly in equity 2,055 - - - 2,055
Transactions with owners
Contribution by owners
Appropriation (equity injection) - - - 33,170 33,170
Other: - - - - -
Restructuring - - - - -
Sub-total transactions with owners - - - 33,170 33,170
Transfers between equity components - - - - -
Estimated closing balance as at 30 June 2010 241,605 21,576 - 761,674 1,024,855
Table 3.2.5: Departmental capital budget statement

('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
CAPITAL APPROPRIATIONS
Total equity injections 41,508 33,170 13,700 13,700 13,700
Total capital appropriations 41,508 33,170 13,700 13,700 13,700
Represented by:
Other 41,508 33,170 13,700 13,700 13,700
Total represented by 41,508 33,170 13,700 13,700 13,700
PURCHASE OF NON-FINANCIAL ASSETS
Funded internally by Departmental resources - 1,542 - 205 -
Total - 1,542 - 205 -
Table 3.2.6: Statement of Asset Movements - Departmental

 

Land
$'000
Other Infrastructure,
Plant&Equipment
$'000
Investment Property
$'000
Intangibles
$'000
Other Non-financial Assets
$'000
Total
$'000
as at 1 July 2009
Gross book value 1,340 2,884 18,638 1,062 108 24,032
Accumulated depreciation/amortisation 583 1,076 - 395 - 2,054
Opening net book balance 757 1,808 18,638 667 108 21,978
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed - 792 400 350 - 1,542
Sub-total - 792 400 350 - 1,542
Other Movements
Depreciation/amortisation expense 278 783 - 466 - 1,527
as at 30 June 2010
Gross book value 1,340 3,676 19,038 1,412 108 25,574
Accumulated depreciation/amortisation 861 1,859 - 861 - 3,581
Closing net book balance 479 1,817 19,038 551 108 21,993

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

Represents appropriation from Government to Indigenous Business Australia 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 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 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 re-valued assets, 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

Agency resources and planned performance

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 acquisition and management of land. The ILC was established on 1 June 1995, and is governed by the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act).

The ATSI Act defines 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 (s191F(3)).

The ILC is not budget funded. Its primary source of income is the realised real return from the Aboriginal and Torres Strait Islander Land Account (Land Account) pursuant to s193C (3) of the ATSI Act. The Land Account is administered by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

The ILC continues to operate with fluctuating annual income due to an anomaly in the realised real return formula in the ATSI Act. Expenditure is projected to be greater than the revenue from the Land Account. In the short term, this will be managed through the use of accrued cash reserves, in addition to interest and the predicted revenue from the Land Account. However, this is not a sustainable solution and the Government is looking to resolve this issue through minor legislative amendments.

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. A key focus for the ILC will continue to be 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 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 2009-10
as at Budget May 2009

Source

Estimate of prior year amounts available in
2009-10
$'000
+ Proposed at Budget
2009-10
$'000
= Total Estimate
2009-10
$'000
Actual Available Appropriation
2008-2009
$'000
Opening Balance/Reserves at Bank   182,211   -   182,211 -
REVENUE FROM GOVERNMENT
Payments from related entities
Aboriginal and Torres Strait Islander Land Account1       2,633   2,633 44,789
Total Special Account       2,633   2,633 44,789
Total Funds from Government       2,633   2,633 44,789
FUNDS FROM OTHER SOURCES
Interest       7,000   - 14,141
Other       6,205   - 2,344
Total       13,205   13,205 16,485
Total net resourcing for Agency   182,211   15,838   198,049 61,274

All figures are GST exclusive

CRF - Consolidated Revenue Fund

The Indigenous Land Corporation is not directly appropriated as it is a CAC Act body. Its main source of recurring income is the realised real return from the Aboriginal and Torres Strait Islander Land Account administered by the Department of Families, Housing, Community and Indigenous Affairs.

1 Funding provided by a Government body that is not specified within the annual appropriation bills as a payment to the CAC Act body.

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1.3 Budget measures

The Indigenous Land Corporation has no budget measures.

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1.4 Transition from outcomes and outputs to outcomes and programs

From the 2009-10 Budget, all General Government Sector (GGS) entities will be reporting on a program basis. The table below outlines the transition from the 2008-09 Budget year (as at Additional Estimates) which was presented in administered items, outputs and output groups to the program reporting framework used for the 2009-10 Budget. The table also captures revisions made to GGS outcome statements under the Operation Sunlight Outcome Statements Review.

Figure 2: Transition table

Figure 2: Transition table: Transition from outcomes and outputs to outcomes and programs

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1.5 Programs for which the Treasury is appropriated under the New Federal Financial Relations (FFR) Framework

ILC has no programs for which the Treasury is appropriated under the New Federal Financial Relations Framework.

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Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Agencies deliver programs which are the Government actions taken to deliver the stated outcomes. 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 Indigenous Land Corporation 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 describes 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 participation in employment and training as key indicators for measuring progress in achieving socio-economic development and will call for applications that achieve these outcomes. In 2009-10, the ILC will continue to operate employment and training projects on its 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 FaHCSIA and the education agencies to acquire land and build hostels to enable Indigenous secondary students in regional and remote Australia to access education. In 2009-10, the National Indigenous Development Centre will be completed in Redfern, Sydney to provide access for up to 5,000 Indigenous people to a range of educational, cultural, sporting and social services, and short stay accommodation facilities for 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 has a key partnership with the Department of Environment, Water, Heritage and the Arts to expand its Indigenous Protected Areas program and to acquire land in collaboration with the National Reserve System program.

Indigenous owned or controlled land is included in the, Overcoming Indigenous Disadvantage Report (2007) as an indicator of economic participation and development and of the social and cultural relationship between Indigenous people and their land. In 2006, Indigenous owned or controlled land comprised 16 per cent of the area of Australia (excluding native title lands; Steering Committee for the Review of Government Services Provision, 2007). Approximately 4.3 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 1 Budgeted Expenses and Resources

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: Indigenous Land Corporation

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expenses    
$'000
Program 1: Assistance in the acquisition and management of an Indigenous land base
Revenue from Government
Payment from Related Entites 44,789 2,633
Revenues from other Independent Sources 16,485 13,205
Total for Program 1.1 61,274 15,838
Total Expenses for Outcome 1 61,274 15,838
  2008-09 2009-10
Average Staffing Level (number) 187 200

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 subsidiary National Indigenous Pastoral Enterprises Pty Ltd. (NIPE). 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:

 

                                               

2008-09       2009-10      
ILC 94 100
NIPE 93 100

Contributions to Outcome 1

Program 1: Acquisition and management of an Indigenous land base

Program objective

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

1. 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.
2. 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.
3. 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 assist Indigenous landholders to sustainably manage land.
4. Cultural and environmental heritage protection
  • to acquire and grant land to Indigenous organisations for the purposes of 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 expenses

The ILC continues to operate with fluctuating annual income due to an anomaly in the realised real return formula in the ATSI Act. Expenditure is projected to be greater than the revenue from the Land Account annually. In the short-term, the level of expenditure will be assisted through the use of accrued cash reserves.

 

('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Expenses not requiring Appropriation in the Budget year 65,854 55,709 55,599 57,179 37,904
Total Departmental Expenses 65,854 55,709 55,599 57,179 37,904
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 measures separately those people it directly employs and hosts on its businesses, 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 with protecting the cultural and environmental values of land. This is measured through the proportion of its total projects, rather than a target number of properties.

 

Key Performance Indicators

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Total number of Indigenous staff employed directly through ILC agricultural and tourism businesses 100 128 178 196 196
Total number of Indigenous trainees hosted through ILC agricultural and tourism businesses 110 190 200 200 200
Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects 366 300 300 300 300
Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects 828 600 600 600 600
Increase in the number of Indigenous youth in regional Australia accessing education through hostels established by the ILC and other agencies - - 120 240 -
Total number of Indigenous-held properties with improved land management 143 140 100 80 80
Proportion of ILC-assisted projects that protected cultural and environmental heritage values or maintained culture 25% 25% 25% 25% 25%
Proportion of projects that were collaborative with and leveraged funding from other agencies 60% 66% 66% 66% 66%
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

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Properties acquired for socio-economic development and cultural and environmental heritage protection 6 6 6 6 6
Properties granted 8 15 15 10 8
Employment and training projects implemented on ILC agricultural and tourism businesses 9 15 15 15 15
Properties acquired and/or secondary student hostels established - 1 1 3 -
Regional land management projects implemented 14 15 15 15 15
Property-based, property planning and training land management projects assisted 42 30 30 30 30

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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 Budget year 2009-10. 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 2009-10 Budget.

3.1.2 Special Accounts

ILC has no Special Accounts in the 2009-10 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
(A)

Bill No. 2
$'000
(B)
Special Approp
$'000
(C)
Total Approp
$'000
(D)
   
$'000
(E)
 
$'000
(F)=(D)+(E)
 
(G)
Indigenous Land Corporation
Outcome 1                
Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management
Administered 2009-10 - - - -   - -  
Administered 2008-09 - - - -   - -  
Departmental 2009-10 - - - -   15,838 15,838 1
Departmental 2008-09 - - - -   61,274 61,274 1
Total Outcome 2009-10 - - - -   15,838 15,838  
Total Outcome 2008-09 - - - -   61,274 61,274  
Total Administered 2009-10 - - - -   - -  
Total Administered 2008-09 - - - -   - -  
Total Departmental 2009-10 - - - -   15,838 15,838  
Total Departmental 2008-09 - - - -   61,274 61,274  
Total AGIE 2009-10 - - - -   15,838 15,838  
Total AGIE 2008-09 - - - -   61,274 61,274  

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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 onwards, it receives the 'realised real return' from the Land Account (s193C).

Estimated payments from the Land Account from 2008-09 forward have been provided by FaHCSIA, which is responsible for the administration of the Land Account.

The total resources for the ILC's Outcome includes the income from the Land Account, and represents 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 moneys of ILC. In addition, Section 193K of the ATSI Act specifically exempts ILC from Section 18(3) of the Commonwealth Authorities and Companies Act 1997 (CAC Act). This 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: Budgeted departmental comprehensive income statement
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
EXPENSES
Employee benefits 9,677 10,452 11,288 12,190 12,190
Supplier 57,239 43,758 42,812 33,489 32,320
Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500
Total expenses 68,416 55,710 55,600 47,179 46,010
LESS:
OWN-SOURCE INCOME
Revenue
Interest 14,141 9,099 6,433 5,832 4,000
Other revenue 2,344 4,106 4,106 4,106 4,106
Total revenue 16,485 13,205 10,539 9,938 8,106
Gains
Sale of assets - - - - -
Other gains - - - - -
Total gains - - - - -
Total own-source income 16,485 13,205 10,539 9,938 8,106
Net cost of (contribution by) services (51,931) (42,505) (45,061) (37,241) (37,904)
Revenue from Land Account 44,789 2,633 34,561 4,792 37,904
Surplus (Deficit) (7,142) (39,872) (10,500) (32,449) -
Surplus (Deficit) attributable to the Australian Government (7,142) (39,872) (10,500) (32,449) -
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves - - - - -
Total other comprehensive income (7,142) (39,872) (10,500) (32,449) -
Total comprehensive income (7,142) (39,872) (10,500) (32,449) -
Total comprehensive income attributable to the Australian Government (7,142) (39,872) (10,500) (32,449) -

Prepared on Australian Accounting Standards basis.

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

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS
Financial assets
Cash and equivalents 34,563 34,563 34,563 34,563 34,563
Trade and other Receivables 3,918 3,918 3,918 3,918 3,918
Investments 147,648 107,777 97,277 64,828 64,828
Other 1,163 1,163 1,163 1,163 1,163
Total financial assets 187,292 147,421 136,921 104,472 104,472
Non-financial assets
Land and buildings
Infrastructure, plant and equipment 85,438 84,458 83,458 82,458 82,458
Inventories 140,108 162,908 185,708 208,508 208,508
Intangibles 395 375 375 375 375
Biological assets 29,389 30,389 31,389 32,389 32,389
Other 5,224 5,224 5,224 5,224 5,224
Total non-financial assets 260,554 283,354 306,154 328,954 328,954
Assets held for sale 1,394 1,394 1,394 1,394 1,394
Total assets 449,240 432,169 444,469 434,820 434,820
LIABILITIES
Provisions
Employees 2,286 2,286 2,286 2,286 2,286
Other 139,977 162,778 185,578 208,378 208,378
Total provisions 142,263 165,064 187,864 210,664 210,664
Payables
Suppliers 6,135 6,135 6,135 6,135 6,135
Other 2,531 2,531 2,531 2,531 2,531
Total payables 8,666 8,666 8,666 8,666 8,666
Total liabilities 150,929 173,730 196,530 219,330 219,330
Net assets 298,311 258,439 247,939 215,490 215,490
EQUITY*
Parent entity interest
Reserves 1,395 1,395 1,395 1,395 1,395
Retained surpluses or accumulated deficits 296,916 257,044 246,544 214,095 214,095
Total parent entity interest 298,311 258,439 247,939 215,490 215,490
Total equity
Current assets 75,651 76,651 77,651 78,651 78,651
Non-current assets 373,589 355,518 366,818 356,169 356,169
Current liabilities 10,952 10,952 10,952 10,952 10,952
Non-current liabilities 139,977 162,778 185,578 208,378 208,378

*'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
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Goods and services 0 3,500 3,500 3,500 3,500
Revenue from Land Account 44,789 2,633 34,561 4,792 37,904
Interest 14,141 9,099 6,433 5,832 4,000
Other 12,156 5,132 5,038 4,105 3,988
Total cash received 71,086 20,364 49,532 18,229 49,392
Cash used
Employees 9,677 10,452 11,288 12,190 12,190
Suppliers 66,263 49,233 48,193 37,938 35,552
Total cash used 75,940 59,685 59,481 50,128 47,742
Net cash from or (used by) operating activities -4,854 -39, 321 -9,950 -31,899 1,650
INVESTING ACTIVITIES
Cash received
Investments 46,522 39,871 10,500 32,449 0
Total cash received 46,522 39,871 10,500 32,449 0
Cash used
Purchase of property, plant and equipment 41,668 550 550 550 1,650
Total cash used 41,668 550 550 550 1,650
Net cash from or (used by) investing activities 4,854 39,321 9,950 31,899 -1,650
Net increase or (decrease)
in cash held 0 0 0 0 0
Cash at the beginning of the reporting period 34,563 34,564 34,563 34,564 34,564
Effect of exchange rate movements on cash at the beginning of reporting period 0 0 0 0 0
Cash at the end of the reporting period 34,564 34,563 34,564 34,564 34,563

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity-summary of movement (Budget year 2009-10)
  Retained earnings
$'000
Asset revaluation service
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2009
Balance carried forward from previous period 296,916 1,395 - - 298,311
Adjustment for changes in accounting policies - - - - -
Adjusted opening balance 296,916 1,395 - - 298,311
Income and expense          
Surplus (deficit) for the period (39,872) - - - (39,872)
Total income and expenses          
recognised directly in equity (39,872) - - - (39,872)
Estimated closing balance
as at 30 June 2010
257,044 1,395 - - 258,439

Prepared on Australian A

Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
CAPITAL APPROPRIATIONS
Total equity injections - - - - -
Total loans - - - - -
Special appropriations - - - - -
Total capital appropriations - - - - -
Represented by:          
Purchase of non-financial assets - - - - -
Other - - - - -
Total represented by - - - - -
ACQUISITION OF NON-FINANCIAL ASSETS          
Funded by capital appropriations - - - - -
Funded internally from Departmental resources1 37,880 500 500 500 1,500
Assets received due to restructure (FMA s32) - - - - -
TOTAL 37,880 500 500 500 1,500

ccounting Standards basis.

1 Includes the following sources of funding:

- annual and prior year appropriations

- donations and contributions

- gifts

- finance leases

- internally developed assets

- s31 relevant agency receipts

- proceeds from the sale of assets

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements - Departmental

 

Land
$'000
Buildings
$'000
Other Infrastructure
Plant&Equipment
$'000
Heritage&Cultural Assets
$'000
Investment Property
$'000
Intangibles
$'000
Other Non-financial Assets
$'000
Total
$'000
as at 1 July 2009
Gross book value - - 93,590 - - 553 - 94,143
Accumulated depreciation/amortisation - - (8,152) - - (158) - (8,310)
Opening net book balance - - 85,438 - - 395   85,833
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed - - 500 - - - - 500
Sub-total - - 500 - - - - 500
Other Movements
Depreciation/amortisation expense - - 1,500 - - 20 - 1,520
as at 30 June 2010
Gross book value - - 94,090 - - 553 - 94,643
Accumulated depreciation/amortisation - - (9,652) - - (178) - (9,830)
Closing net book balance - - 84,438 - - 375 - 84,813

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 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 reporting date. Section 193K of the Aboriginal and Torres Strait Islander Act 2005 states that the investment restrictions in Section 18(3) of the Commonwealth 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 the Aboriginal 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 is classified as biological assets. Livestock is valued at market value as at 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 the Aboriginal and Torres Strait Islander Act 2005.

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Torres Strait Regional Authority

Agency resources and planned performance

Section 1: Agency overview and resources

1.1 Strategic direction

The Torres Strait Regional Authority (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 (Cth) 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(Development Plan) the fourth since the establishment of the TSRA. The Development 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 (Regional Plan) and the goals and aspirations of the residents of the Torres Strait. The new TSRA vision, which is shared by both the Regional and 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 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 2009-10 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 Program (CDEP) in the region, the TSRA will be central to the roll out of CDEP reform measures in 2009-10 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 which are identified in the Land and Sea Management Strategy and the Regional Investment Strategy for the Torres Strait, 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, including the servicing of Badu Health Centre.

A key area of externally focused activity for the TSRA in 2009-10 will be continuing to drive the regional planning process including formalisation of an Integrated Service Delivery Agreement, to be signed by Government 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 impact on 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, as well as impeding the speed of progress in closing the gap in the Torres Strait. Land tenure is another constant factor impacting across all elements of program and program component delivery in the region.

The impact on the Torres Strait of the global economic downturn and changes in government budgets and priorities, as well as the changes to the Queensland Government structure and programs post-election have yet to become clear.

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 advocate for and support mitigation and adaptation efforts.

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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: Torres Strait Regional Authority resource statement-Budget estimates for 2009-10 as at Budget May 2009

Source

Estimate of prior year amounts available in
2009-10
$'000
+ Proposed at Budget
2009-10
$'000
= Total Estimate
2009-10
$'000
Actual Available Appropriation
2009-10
$'000
Opening Balance/Reserves at Bank   16,556   -   16,556 -
REVENUE FROM GOVERNMENT              
Ordinary Annual Services              
Outcome 1: Torres Strait Regional Development   -   67,391   67,391 51,904
Total ordinary annual services   -   67,391   67,391 51,904
FUNDS FROM OTHER SOURCES              
Interest   -   800   800 800
Other   -   1,085   1,085 1,085
Total   -   1,885   1,885 1,885
Total net resourcing for Agency   16,556   69,276   85,832 53,789

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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 2009-10 Budget measures

 

Program 2008-09
$'000
2009-10
$'000
2010-11
$'000
2011-12
$'000
2012-2013
$'000
Expense measures
Closing the Gap - Torres Strait Major Infrastructure Program 1.1          
Administered expenses     - - - -
Departmental expenses     - 14,235 14,546 241
Total     - 14,235 14,546 241
Total expense measures
Administered     - - - -
Departmental     - 14,235 14,546 241
Total     - 14,235 14,546 241

Prepared on a Government Financial Statistics (fiscal) basis.

The full measure description and package details appear in Budget Paper 2 under the Families, Housing, Community Services and Indigenous Affairs portfolio.

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1.4 Transition from outcomes and outputs to outcomes and programs

From the 2009-10 Budget, all General Government Sector (GGS) entities will be reporting on a program basis. The table below outlines the transition from the 2008-09 Budget year (as at Additional Estimates) which was presented in administered items, outputs and output groups to the program reporting framework used for the 2009-10 Budget. The table also captures revisions made to GGS outcome statements under the Operation Sunlight Outcome Statements Review.

Figure 2: Transition table

Figure 2: Transition table: Transition from outcomes and outputs to outcomes and programs

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1.5 Payments delivered by or through the Treasury under the Federal Financial Framework

TSRA does not receive Administered Funds.

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Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Outcome 1:

Progress towards closing the gap for Torres Strait 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 will commence implementation of its Torres Strait Development Plan   2009-13, and transition to its new and revised program components which are focused on delivery of outcomes and realisation of measurable benefits. These program components aim to contribute to achieving the goals of the Torres Strait and Northern Peninsula AreaRegional Plan 2009-29and to closing the gap on 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 new 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 Commonwealth 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 1 Budgeted Expenses and Resources

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 Torres Strait Regional Authority

Outcome 1: Progress towards closing the gap for Torres Strait and Aboriginal people living in
the Torres Strait region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture

2008-09
Estimated actual expenses
$'000
2009-10
Estimated expenses    
$'000
Program 1 Torres Strait Regional Development
Revenue from Government
Ordinary Annual Services (Appropriation Bill No. 1) 51,904 67,391
Revenues from other independent sources 1,885 1,885
Total for Program 1 53,789 69,276
Outcome 1 Totals by Resource type
Revenue from Government
Ordinary Annual Services (Appropriation Bill No. 1) 51,904 67,391
Revenues from other independent sources 1,885 1,885
Total expenses for Outcome 1 53,789 69,276
  2008-09 2009-10
Average Staffing Level (number) 68 69

Contributions to Outcome 1

Program 1.1: Torres Strait Regional Development

Program 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 expenses

Government has committed $28 million over two years ($14 million each year) for 2009-10 and 2010-11 to further the closing of the gap in environmental health infrastructure within the Torres Strait region.

Commitment of funds for infrastructure development beyond 2010-11 will be subject to the outcomes of future budget submissions which may result from analysis of the remaining gap in environmental health infrastructure to be undertaken throughout the next two years.

Program expenses - Torres Strait Regional Development

('000)

2008-09
Revised budget
2009-10
Budget
2010-11
Forward Year 1
2011-12
Forward Year 2
2012-13
Forward Year 3
Annual Departmental Expenses:
Departmental Item 53,488 68,667 70,470 57,553 57,201
Total Departmental Expenses 53,488 68,667 70,470 57,553 57,201

Program component objectives

Economic Development Program Component Objective

To provide training, industry development and business support services in the Torres Strait to increase employment and business ownership for Indigenous Australians in the Torres Strait region. This program component will:

  • improve the wealth of Indigenous people of the region
  • encourage the development of sustainable industries owned and operated by local Indigenous people (e.g. marine based, tourism, arts and craft, construction)
  • improve access to capital and other opportunities to finance enterprises and industries.
Culture, Art and Heritage Program Component Objective

To provide services and support to help Torres Strait Islander and Aboriginal people living in the Torres Strait region to preserve and promote their culture. This program component will:

  • act to strengthen, support and promote respect for Ailan Kastom
  • encourage the development of an active and sustainable Arts and Craft Industry.
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 (PBCs).
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
  • improve animal management and pest control for the protection of the natural environment
  • manage effects of climate change, specifically tidal inundation and erosion
  • improve land management for future generations
  • promote sustainable management of natural resources through management and surveillance initiatives and interception.
Governance and Leadership Program Component Objective

To help maintain and improve 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 for effective communication between the community and organisations involved in the region.
Healthy Communities Program Component Objective:

To support improved health outcomes for Torres Strait Islander and Aboriginal people of the Torres Strait region in concept with key service delivery agencies to progress closing the gap. This program component will:

  • ensure health care systems are effective to meet and support the primary health care needs of community members
  • improve access to affordable fresh and healthy foods
  • encourage more active and healthy communities
  • increase affordable home ownership available across the region
  • endeavour to ensure there is sufficient land to build houses on.
Safe Communities Program Component Objective:

To support improved community safety in the Torres Strait region through advocacy, monitoring and the provision of minor infrastructure. This program component will:

  • provide effective community and social services support
  • ensure public areas are safe and accessible for community members
  • ensure families and individuals are safe in their homes and community
Program 1.1 Key Performance Indicators
  • Number of CDEP participants that have moved into non-CDEP employment
  • Number of Indigenous artists and cultural practitioners supported
  • Number of Native Title determinations in the Torres Strait
  • Number of communities participating in Natural 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

Program 1.1 Deliverables

The 2009-10 year will be a transition year for the TSRA as the new program components come on-line. The seven program components are still being developed, with the result that the anticipated deliverables for each program component may be revised.

Potential and anticipated deliverables are outlined in the Development Plan and will be elaborated in individual plans for each program component over the transition year. Deliverables for each Program Component as at publication date of this Portfolio Budget Statement are:

Economic Development Program Component
  • reform the Community Development Employment Program (CDEP) in the Torres Strait
  • provide industry training, including in the aquaculture and seafood processing industries
  • establish employment training and mentoring partnerships
  • support industry development initiatives for fisheries, tourism, arts and aquaculture, including research and development
  • implement new and existing business funding support initiatives, and conduct of further business capacity building activities.
Culture, Art and Heritage Program Component
  • develop a cultural maintenance project
  • develop visual and performing arts following the recommendations of the Report and Plan for the Development of Torres Strait Arts
  • operate a gateway/hub - the Gab Titui Cultural Centre-for presenting, preserving, promoting and educating about Torres Strait Islander culture and arts
  • conduct activities contributing to cultural heritage management.
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 legal advice and support in relation to future Acts.
Environmental Management Program Component
  • Continue the existing Fisheries Project
  • Implement a Vegetation Rehabilitation and Restoration Project
  • Implement a Bio-diversity Project
  • Implement an Invasive Species Project
  • Continue a Land Resource Assessment Project
  • Implement a Garden and Horticulture Project
  • Implement an Infrastructure, Renewable Energy and Waste Management Project
  • Conduct activities focused on the enhancement of community skills, knowledge and engagement
  • Continue and expand the Land and Sea Rangers Project
  • Implement a Climate Change/Coastal Erosion Project
  • Strengthen cultural heritage and environmental integrity for future generations
  • Conduct Natural Resource Management information sharing and research activities
  • Support Prescribed Body Corporate capacity building activities focused on Natural Resource Management.
Governance and Leadership Program Component
  • Deliver an Integrated Service Delivery Project
  • Undertake a Governance and Leadership Capacity Building Project
  • Undertake a Regional Communication Project.
Healthy Communities Program Component
  • Develop and implement a Healthy Homes Project
  • Establish a monitoring system for primary health service delivery
  • Develop a Healthy Lifestyles Project
  • Improve housing and home ownership projects and initiatives.
Safe Communities Program Component
  • Identify and implement social support initiatives
  • Deliver accessible and safe public facility initiatives.

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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 Budget year 2009-10. 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 are subject to review by the Minister for Finance and Deregulation, and may be moved to a future period, in accordance with provisions in legislation. Table 3.1.1 shows the movement of administered funds approved since the 2008-09 Additional Estimates.

Table 3.1.1: Movement of administered funds between years

TSRA does not receive administered funds.

3.1.2 Special Accounts

TSRA does not maintain 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 Bill No. 2 Special Approp Total Approp        
$'000 $'000 $'000 $'000   $'000 $'000  
Torres Strait Regional Authority
Outcome 1
Departmental 2009-10 53,156 14,235 - 67,391   1,885 136,667 1
Departmental 2008-09 51,904 - - 51,904   1,885 105,693 1
Total Outcome 2009-10 53,156 14,235 - 67,391   1,885 136,667  
Total Outcome 2008-09 51,904 - - 51,904   1,885 105,693  
Total departmental 2009-10 53,156 14,235 - 67,391   1,885 136,667  
Total departmental 2008-09 51,904 - - 51,904   1,885 105,693  
Total AGIE 2009-10 53,156 14,235 - 67,391   1,885 136,667  
Total AGIE 2008-09 51,904 - - 51,904   1,885 105,693  

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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 PB Statements.

3.2.2 Analysis of budgeted financial statements

Budgeted departmental income statement for the period ended 30 June 2010

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.

The major variations between estimated actuals for 2008-09 and revised estimates for 2009-10 in the Budgeted Departmental Income Statement are as follows:

Budgeted departmental balance sheet at 30 June 2010

This statement shows the financial position of the TSRA. It helps decision-makers to track the management of assets and liabilities.

Departmental asset and liability balances have been adjusted from Budget estimates for 2009-10 financial year balances.

Budgeted departmental statement of cash flows for the period ended 30 June 2010

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 cash impact of the above variations on the financial performance and position statement estimates.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Budgeted departmental comprehensive income statement
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
EXPENSES
Employee benefits 4,077 6,739 6,732 6,696 6,506
Supplier 4,044 4,121 4,133 4,100 4,006
Grants 44,967 57,407 59,205 46,357 46,289
Depreciation and amortisation 400 400* 400* 400* 400*
Total expenses 53,488 68,667 70,470 57,553 57,201
LESS:
OWN-SOURCE INCOME
Revenue
Interest 800 800 800 800 800
Other revenue 1,085 1,085 1,085 1,085 1,085
Total revenue 1,885 1,885 1,885 1,885 1,885
Total own-source income 1,885 1,885 1,885 1,885 1,885
Net cost of (contribution by) services 51,603 66,782* 68,585* 55,668* 55,316*
Revenue from government 51,904 67,391 69,194 56,277 55,925
Surplus (Deficit) 301 609* 609* 609* 609*
Surplus (Deficit) attributable to the Australian Government 301 609* 609* 609* 609*
Total comprehensive income attributable to the Australian Government 301 609* 609* 609* 609*

Prepared on Australian Accounting Standards basis.

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

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
ASSETS
Financial assets
Cash and equivalents 16,556 16,910 17,519 18,128 18,737
Trade and other Receivables 6,278 6,278 6,278 6,278 6,278
Total financial assets 22,834 23,188 23,797 24,406 25,015
Non-financial assets
Land and buildings 17,434 17,634 17,334 17,034 16,734
Infrastructure, plant and equipment 355 465 765 1,065 1,365
Other 41 41 41 41 41
Total non-financial assets 17,830 18,140 18,140 18,140 18,140
Assets held for sale
Total assets 40,664 41,328 41,937 42,546 43,155
LIABILITIES
Provisions
Employees 1,332 1,432 1,432 1,432 1,432
Total provisions 1,332 1,432 1,432 1,432 1,432
Payables          
Suppliers 3,845 4,000 4,000 4,000 4,000
Grants 1,505 1,305 1,305 1,305 1,305
Other 53 53 53 53 53
Total payables 5,403 5,358 5,358 5,358 5,358
Total liabilities 6,735 6,790 6,790 6,790 6,790
Net assets 33,929 34,538 35,147 35,756 36,365
EQUITY*          
Parent entity interest          
Contributed equity 32 32 32 32 32
Reserves 6,669 6,669 6,669 6,669 6,669
Retained surpluses or accumulated deficits 27,228 27,837 28,446 29,055 29,664
Total parent entity interest 33,929 34,538 35,147 35,756 36,365
Total equity 33,929 34,538 35,147 35,756 36,365

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
OPERATING ACTIVITIES
Cash received
Goods and services
Appropriations 51,904 67,391 69,194 56,277 55,925
Interest 800 800 800 800 800
Other 1,085 1,085 1,085 1,085 1,085
Total cash received 53,789 69,276 71,079 58,162 57,810
Cash used
Employees 4,077 6,639 6,732 6,696 6,506
Suppliers 4,044 3,966 4,133 4,100 4,006
Grants 44,967 57,607 59,205 46,357 46,289
Total cash used 53,088 68,212 70,070 57,153 56,801
Net cash from or (used by) operating activities 701 1,064 1,009 1,009 1,009
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment 400 710 400 400 400
Total cash used (400) (710) (400) (400) (400)
Net cash from or (used by) investing activities (400) (710) (400) (400) (400)
Net increase or (decrease) in cash held 301 354 609 609 609
Cash at the beginning of the reporting period 16,255 16,556 16,910 17,519 18,128
Cash at the end of the reporting period 16,556 16,910 17,519 18,128 18,737

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity-summary of movement (Budget year 2009-10)

 

Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/capital
$'000
Total equity
$'000
Opening balance as at 1 July 2009
Balance carried forward from previous period 27,228 6,669 - 32 33,929
Adjusted opening balance 27,228 6,669 - 32 33,929
Surplus (deficit) for the period 609 - - - 609
Total income and expenses
recognised directly in equity 609 - - - 609
Estimated closing balance
as at 30 June 2010
27,837 6,669 - 32 34,538

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement

 

Estimated actual
2008-09
$'000
Budget estimate
2009-10
$'000
Forward estimate
2010-11
$'000
Forward estimate
2011-12
$'000
Forward estimate
2012-13
$'000
CAPITAL APPROPRIATIONS
Total equity injections - - - - -
Total loans - - - - -
Special appropriations - - - - -
Total capital appropriations
Represented by:
Purchase of non-financial assets - - - - -
Other - - - - -
Total represented by
ACQUISITION OF NON-FINANCIAL ASSETS
Funded by capital appropriations - - - - -
Funded internally from Departmental resources 400 710 400 400 400
Assets received due to restructure (FMA s32) - - - - -
TOTAL 400 710 400 400 400

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements-Departmental

 

Land
$'000
Buildings
$'000
Other Infrastructure,
Plant&Equipment
$'000
Heritage&Cultural Assets
$'000
Investment Property
$'000
Intangibles
$'000
Other Non-financial Assets
$'000
Total
$'000
as at 1 July 2009
Gross book value 6,024 11,410 652 41 - - - 18,127
Accumulated depreciation/amortisation     (297) - - - - (297)
Opening net book balance 6,024 11,410 355 41 - - - 17,830
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed - 500 210 - - - - 710
Sub-total - 500 210 - - - - 710
Other Movements
Depreciation/amortisation expense - (300) (100) - - - - (400)
as at 30 June 2010
Gross book value 6,024 11,910 862 41 - - - 18,837
Accumulated depreciation/amortisation - (300) (397) - - - - (697)
Closing net book balance 6,024 11,610 465 41 - - - 18,140

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 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 glossary

Accrual Accounting
System of accounting where 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.

Administered Items
Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Additional Estimates
Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

AEIFRS
Australian Equivalents to International Financial Reporting Standards which were issued by the Australian Accounting Standards Board in July 2004.

Appropriation
An authorisation by Parliament to spend moneys from the Consolidated Revenue Fund for a particular purpose.

Annual Appropriation
Acts of Parliament, which provide appropriation for the Government's activities during a specific financial year. Three appropriation Bills are introduced into Parliament in May and comprise the Budget. Further supplementary Bills are introduced later in the financial year as part of the Additional Estimates process. The Parliamentary Departments have their own appropriation Bills.

Appropriation Bill (No. 1)
This Bill proposes spending from the Consolidated Revenue Fund 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 Consolidated Revenue Fund 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, 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 (No. 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 (No. s 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 (ASL)
ASL is 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.

Consolidated Revenue Fund
Section 81 of the Constitution stipulates that all revenue raised or money received by the Commonwealth forms the one consolidated revenue fund (CRF). The CRF is not a bank account. The Official Public Account reflects most of the operations of the CRF.

Cross Portfolio Budget Measure
A Budget measure, which affects programs administered in a number of portfolios.

Departmental Items
Assets, liabilities, revenues and expenses that are controlled by the agency to produce outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most employee expenses, supplier costs and other administrative expenses incurred.

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.

Equity or Net Assets
Residual interest in the assets of an entity after deduction of its liabilities.

Estimates
Estimates are 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 Administration. (See also Forward Estimates and Additional Estimates).

Expenses
Expenses represent the full costs of an activity, that is, the total value of all 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 the entity. Expenses include cash items such as salary payments as well as expenses that have been incurred, such as accruing employee entitlements that will be paid in the future.

Fair value
Valuation methodology: The amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction. Australian Government entities will move to this method incrementally for valuing most infrastructure, plant and equipment.

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 outyears after the budget year.

Grants
Non-reciprocal transfers of economic resources, where the payer agency does not receive approximately equal value in return.

Groups
See Output Groups.

Intermediate outcomes
More specific medium-term impacts (eg. trend data, targets or milestones) below the level of the planned outcomes specified in the Budget. A combination of several intermediate outcomes can at times be considered as a proxy for determining the achievement of outcomes or progress towards outcomes. (See also Outcomes).

Key Performance Indicators
Qualitative and quantitative measures of an output which provide a guide on performance where direct causal links are not obvious and changes in performance are difficult to measure directly.

Measure
Decision by the Cabinet or Ministers that has been finalised since the Budget which has a financial impact in the Budget or forward years.

Mid Year Economic and Fiscal Outlook (MYEFO)
The 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. It occurs around the middle of the financial year. Major updates such as the Mid Year Economic and Fiscal Outlook, coincide with the availability of revised economic parameters.

Operating result
Equals revenue less expenses.

Outcomes
The Government's objectives in each portfolio area. Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the Australian Government. Actual outcomes are assessments of the end-results or impacts actually achieved.

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.

Programs
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.

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.

Senate Legislation Committee
The Senate Legislation Committee is 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 Account
Balances existing within the Consolidated Revenue Fund (CRF) that are supported by standing appropriations (Financial Management and Accountability (FMA) Act 1997, 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 Appropriations (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 Consolidated Revenue Fund does not generally cease at the end of the financial year.

Standing appropriations are a sub-category consisting of ongoing special appropriations-the amount appropriated will depend on circumstances specified in the legislation.

Specific Purpose Payments (SPPs)
Commonwealth payments to the States are divided into general purpose payments (GPPs) and Specific Purpose Payments (SPPs). The term payments is used because the amounts referred to are gross transfers, not net, which would include repayments of advances to the States and Territories. Most SPPs are conditional on policy objectives set by the Commonwealth or the achievement of national policy objectives agreed between the Commonwealth and the States and Territories.

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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 1997
Commonwealth Authorities and Companies Act 1997

CALD
Culturally and Linguistically Diverse

CATSI Act
Corporations (Aboriginal and Torres Strait Islander) Act 2006

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 1997
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

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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