2011–12 Portfolio Budget Statements

Table of contents

Minister's message

User Guide

Portfolio Overview

Agency Resources and Planned Performance

Glossary

Abbreviations

Minister for Families, Housing, Community Services and Indigenous Affairs

President of the Senate
Australian Senate
Parliament House
CANBERRA ACT 2600

Speaker
House of Representatives
Parliament House
CANBERRA ACT 2600

Dear Mr President
Dear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2011-12 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

Abbreviations and conventions

The following notation may be used:

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not for publication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

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

Enquiries

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

A copy of this document can be located on the Australian Government Budget website at www.budget.gov.au.

User Guide to the Portfolio Budget Statements

User Guide

The purpose of the 2011–12 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 2011–12 (or Appropriation Bill [Parliamentary Departments] No. 1 2011–12 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.

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. Kate Ellis, MP, Minister for the Status of Women
  • Senator the Hon. Mark Arbib, Minister for Social Housing and Homelessness
  • the Hon. Julie Collins, MP, Parliamentary Secretary for Community Services
  • Senator the Hon. Jan McLucas, Parliamentary Secretary for Disability and Carers.

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

Department of Families, Housing, Community Services and Indigenous Affairs

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

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

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

Equal Opportunity for Women in the Workplace Agency1

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

Aboriginal Hostels Limited

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

Indigenous Business Australia

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

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

Indigenous Land Corporation

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

Torres Strait Regional Authority

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

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.

Aboriginal Land Commissioner

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

Coordinator General Remote Indigenous Services

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

Executive Director of Township Leasing

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

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

Registrar of Indigenous Corporations

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

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 Act. The land councils are subject to the CAC Act. Each is an independent statutory body established to represent Aboriginal interests in a range of processes under the ALRA Act.

Outback Stores Pty Ltd

Outback Stores Pty Ltd (OBS) is an Australian Government-owned company subject to the Corporations Act 2001 and the CAC Act. OBS contributes to health, employment and economic activity in remote communities by managing quality, sustainable retail stores. OBS contributes to the portfolio's goals by contributing to improved food security in remote communities.

Social Security Appeals Tribunal

The Social Security Appeals Tribunal (SSAT) is a statutory body under the Social Security (Administration) Act 1999 and is subject to the FMA Act. The tribunal 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 seeks to provide a review mechanism that is just, efficient, effective and informal. It contributes to the portfolio by ensuring that administrative decisions of Centrelink and the Child Support Agency are consistent with the legislation.

Wreck Bay Aboriginal Community Council

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

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

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

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

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

Portfolio resources

Table 1 shows the total new resources provided to the portfolio in the 2011–12 budget year, by agency.


Table 1: Portfolio resources 2011-12
 
Appropriation
Bill No. 1
$m
Appropriation
Bill No. 2
$m
Special
appropriation
$m
Receipts
$m
Total
$m
FaHCSIA1          
Administered appropriations 1,542.3 - 74,625.4 172.2 76,339.9
Departmental appropriations 553.1 3.0 - 25.3 581.4
Total: 2,095.4 3.0 74,625.4 197.5 76,921.3
EOWA          
Administered appropriations - - - - -
Departmental appropriations 5.3 0.8 - 0.4 6.5
Total: 5.3 0.8 - 0.4 6.5
AHL2          
Administered appropriations - - - - -
Departmental appropriations 38.5 - - 20.7 59.2
Total: 38.5 - - 20.7 59.2
IBA2          
Administered appropriations - - - - -
Departmental appropriations 38.9 33.2 - 128.2 200.3
Total: 38.9 33.2 - 128.2 200.3
ILC2          
Administered appropriations - - - - -
Departmental appropriations 9.8 - - 86.0 95.8
Total: 9.8 - - 86.0 95.8
TSRA2          
Administered appropriations - - - - -
Departmental appropriations 50.5 - - 7.9 58.4
Total: 50.5 - - 7.9 58.4
Portfolio total 2,238.4 37.0 74,625.4 440.7 77,341.5
Less amounts transferred          
within portfolio - - - - -
Resources available within portfolio:
77,341.5

1 Total resourcing does not include the balance of Special Accounts carried forward from 2010-11.

2 Funding under Appropriation Bill (No. 1) 2011-12 for agencies under the CAC Act is appropriated to FaHCSIA and then paid to each agency.

Agency Resources and Planned Performance

Department of Families, Housing, Community Services and Indigenous Affairs

Agency resources and planned performance

Department of Families, Housing, Community Services and Indigenous Affairs

Section 1: Agency overview and resources

Section 2: Outcomes and program performance

Section 3: Explanatory tables and budgeted financial statements

Department of Families, Housing, Community Services and Indigenous Affairs

Section 1: Agency overview and resources

1.1 Strategic direction statement

About FaHCSIA

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

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

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

The detailed outcome statements for the seven outcome areas can be found in Section 2 of these Portfolio Budget Statements (PB Statements).

FaHCSIA works to achieve these outcomes in four main ways:

  • Payments to individuals ― FaHCSIA makes direct payments to individuals through Centrelink and other agencies. Primary examples include the Age Pension, the Disability Support Pension (DSP) and the Family Tax Benefit (FTB). Centrelink will amalgamate with the Department of Human Services (DHS) from 1 July.
  • Working with the states and territories ― FaHCSIA works with the states and territories to achieve outcomes in their areas of responsibility, including housing, disability services, addressing Indigenous disadvantage, 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 supported employment for people with disability.
  • 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 decisions and action and in whole-of-government policy coordination for Indigenous affairs and for women.

FaHCSIA's work in these areas also complement and contribute to the Government's broader priorities: to address skills shortages, the challenges presented through structural ageing, and supporting the capacity of regional Australia, among others. In this way FaHCSIA assists Australians to meet their immediate needs and to strengthen our capacity to face the challenges of the future.

Key priorities for 2011–12

Major initiatives for the FaHCSIA portfolio announced in the 2011–12 Budget contribute to the Government's key social policy objectives, and build on major initiatives previously announced.

Building Australia's Future Workforce

A strong feature of the 2011–12 Budget is action to improve the social and economic participation of Australians, including among people who have experienced the greatest difficulty accessing those opportunities. The Budget includes a range of measures that provide extra incentives and supports coupled with requirements to ensure as many people as possible have the prospect and personal benefits of paid work. This approach, as with other complex policies, requires action across a number of portfolios.

For FaHCSIA, promoting participation will mean increased opportunities and greater recognition of the potential capacity of people receiving Disability Support Pension (DSP). For new and existing DSP recipients aged under 35, extra focus will be given to ensuring that those with an assessed work capacity of 8 or more hours a week can maximise their social and economic participation. They will be required to attend periodic participation interviews with Centrelink to develop participation plans that will help them build their capacity and, potentially, lead to employment. The Budget includes a measure to allow DSP recipients to work up to 30 hours a week and remain eligible for a part pension, subject to income testing. This measure applies to recipients granted after May 2005 under the 15-hour work capacity rule and will enable them to maximise their working hours without having their pension suspended or cancelled.

The Department will also continue to implement already announced improvements, such as revised DSP assessment procedures to ensure they support workforce participation of people with disability, wherever possible. The Government will continue to improve its Disability Support Pension (DSP) assessment procedures, to ensure claimants receive a thorough assessment from an experienced assessor. To fast track these improvements, the implementation date of a key element of the 2010-11 Budget measure – Job Capacity Assessment – has been brought forward from 1 January 2012 to 3 September 2011. This measure will deliver more accurate and efficient assessment for DSP and employment services as well as inform referrals to specialised assistance such as physical rehabilitation or mental healthcare and counselling services.

Jobless families, including teenage parents, are also key groups requiring specific and focused assistance. The Budget includes a range of initiatives to address the heightened risks some families face in communities facing entrenched disadvantage and long-term welfare dependence, including new participation requirements and support services for teenage and jobless parents, and income management. These measures include a number of place-based initiatives targeting locations where a higher proportion of the population face more entrenched disadvantage or are at greater risk of becoming disadvantaged. This approach will ensure the Government has the evidence it needs to guide future developments to what works best. The
2011-12 Budget also includes $42.5 million over four years for additional Communities for Children services as part of the Building Australia's Future Workforce package.

Other key supports FaHCSIA provides, such as housing, are crucial foundations for ensuring people are in a position to participate.

Supporting families

Improving the wellbeing of families and children continues to be a priority for the Government.

The 2011–12 Budget provides more support for low- and middle-income families raising children by increasing family assistance to support teenagers in school, making advance payments more flexible, and encouraging parents receiving income support payments to get health checks for their children before they start school.

The Government will also increase payments for families of teenagers aged 16 to 18, and for 19 year olds if they are still at school. Each year, the families of about 130,000 teenagers will benefit from increased support. Families with teenagers turning 16, 17, 18 or 19 in 2012 will be the first to benefit if their children are in school. From 1 January 2012 Australian families will receive increases of up to $4,200 a year per teenager to help them meet the costs of raising older children, and encourage more teenagers to stay in school. From 1 January 2012, the FTB Part A maximum age of eligibility will be lowered from 24 to 21 years. This brings FTB Part A in line with the Youth Allowance age of independence.

The 2011–12 Budget continues the income management pilots in Cape York, the Kimberley, and metropolitan Perth, and extends child protection, voluntary and vulnerable income management measures to five new communities of high disadvantage. The Department will also continue to deliver the new, non-discriminatory income management model in the Northern Territory. Income management forms part of the Government's commitment to progressively reforming the welfare and family payment system to foster responsibility and to provide a platform for people to move up and out of welfare dependence. Income management is a key tool in the reforms to make sure welfare payments are used in the best interests of children.

This Budget includes also includes funding to extend the School Enrolment and Attendance Measure (SEAM) in trial locations in the Northern Territory and Queensland for a further 12 months. SEAM places conditions on parents' income support payments to increase the level of school enrolment and attendance in communities where it is low.

In 2011–12, FaHCSIA will continue to implement remaining aspects of previously announced reforms, such as Australia's first Paid Parental Leave (PPL) scheme, which commenced on 1 January 2011. For the first time, many Australian families, particularly low-income earners, seasonal workers, casual workers, contractors and the self-employed have access to government-funded parental leave. The scheme will ensure parents can spend valuable time with their newborns while maintaining their connection to the workforce. It is estimated that 148,000 families each year will be eligible for the scheme. From 1 July 2011, employers will be required to provide the government-funded parental leave pay for children born or adopted on or after that date to their eligible long-term employees. The Family Assistance Office provides parental leave pay to eligible parents who do not receive it from their employer. To ensure the smooth delivery of Australia's first national PPL scheme, Paid Paternity Leave will begin on 1 January 2013 instead of 1 July 2012. Paid Paternity Leave will provide eligible working fathers or partners with two weeks' pay at the National Minimum Wage (currently $570 a week before tax) for children born or adopted from 1 January 2013. Paid Paternity Leave will be available to full time, part time, casual, contractor and self-employed workers.

The first-ever National Standards for Out of Home Care will also begin on 1 July 2011. The new national standards will provide a consistent benchmark for the care of children and young people who are unable to live with their parents, no matter where they are.

Balancing the additional support provided for families with higher needs, the Budget also includes measures that reinforce a strong budgetary position and favourable economic performance, including a pause in indexation of family payment thresholds and income limits for higher income families for a further two years.

Assisting vulnerable Australians

The Government is investing to assist vulnerable individuals and families at risk of exclusion to access the opportunities most of us enjoy, with help to manage their finances, as a key foundation of lifelong resilience and wellbeing.

The 2011–12 Budget provides secure and ongoing funding for emergency relief and Commonwealth financial counselling services. This funding represents an increase of 60 per cent on emergency relief base funding, and continues 77 full time equivalent financial counsellors funded in responses to the global economic recession. In areas affected by floods and cyclones, base funding will be maintained at the higher levels that applied during the economic downturn for 18 months while these communities rebuild. These programs help very vulnerable Australians in financial crisis get back on track. This funding will ensure that Australia's most financially vulnerable and disadvantaged people remain able to access support.

The 2011–12 Budget also provides funding for the Financial Literacy and Micro-Finance Programs that were announced in the 2009–10 Budget. This ensures initiatives such as no and low-interest loans and matched savings programs delivered in partnership with the major banks and community organisations can continue. These programs have a large reach and a proven record in building long-term financial resilience. The Innovative Indigenous Projects component of this measure allows for continued support for the Financial Management Resource Support Unit and the 'Moneymob talkabout' mobile money management education unit.

In 2011–12 FaHCSIA will continue to work on gambling reform to address problem gambling and the negative impacts it has on individuals, families and children. Building on work that commenced with the Government commissioning the Productivity Commission in 2008 to report on the issue, FaHCSIA will progress toward implementation of a best practice full pre-commitment scheme for electronic gaming machines and other initiatives to reduce negative consequences of problem gambling on the community.

Support for people with disability and mental illness and their carers

The Government is focused on ensuring that people with disability are supported in all aspects of their lives, and disability reform will be a key priority for 2011–12.

On 13 February 2011, COAG endorsed the National Disability Strategy, the first national strategy to provide a long-term road map for improving the lives of Australians with disability, their families and carers. The National Disability Strategy sets a 10-year reform plan for all governments to address the barriers faced by Australians with disability. It will help ensure that mainstream services and programs including health care, housing, transport and education address the needs of people with disability. Implementing the strategy, including a number of new initiatives such as Accessible Communities, Leaders for Tomorrow and the Increasing Accessibility Library Initiative, is a key priority for 2011-12.

Considering and responding to the Productivity Commission's inquiry into long-term care and support for people with disability will be a significant area of work for the portfolio in 2011–12. A draft report was released on 28 February 2011, with the final report to be provided at the end of July 2011.

The Better Start for Children with Disability initiative in this Budget will ensure children with certain disabilities that affect their development have access to intensive early intervention therapies and treatments from expert health professionals. From 1 July 2011, children diagnosed with sight and hearing impairments, cerebral palsy, Down syndrome or Fragile X syndrome will benefit under the program. Children under six with a diagnosis of a listed disability will be eligible to receive up to $12,000 (to a maximum of $6,000 per financial year) for early intervention services. Eligible children in outer regional and remote areas will be able to access an additional $2,000 to help them access services. In addition, a number of new Medicare funded diagnosis and treatment services will be made available for children diagnosed before the age of 13 years with these conditions.

This Budget provides additional help for children with autism spectrum disorders through extra funding for early intervention services under the Helping Children with Autism initiative to meet increased demand.

Recognising the value of community experience and approaches in addressing these issues, the Government is also establishing a Supported Accommodation Innovation Fund. The Fund will help support community organisations that build innovative and sustainable, supported accommodation places for people with disability living in the community. The Fund provides an extra $60 million over three years and the first funding round will commence in late 2011.

As part of FaHCSIA's commitment to enabling people to participate in society, this Budget announces significant additional support for community mental health. Investment of an additional $154 million for community organisations to employ 425 new personal helpers and mentors to work one-on-one with people with mental illness to help them participate in society. These new mentors provide increased opportunities for recovery by helping people with mental illness to overcome social isolation and increase their connections to the community with the support of personal helpers and mentors.

The Government is investing $61 million over five years to establish 40 new Family Mental Health Support Services. These new support services will provide more than 32,000 children and young people with, or at risk of mental illness with a range of flexible supports tailored to meet their needs such as family support and counselling, information and referral to clinical or other community services, home based support and education and skill development. 

The Government is also investing $54.3 million over the next five years for extra mental health respite services.  The respite services will give 1,100 families and carers of people with mental illness greater access to flexible respite and support services.

The Government is committed to ensuring carers are supported and receive recognition for their role. The National Carer Strategy will be delivered in 2011 to acknowledge the vital role of carers and, importantly, improve supports for carers. The Strategy has been developed in consultation with state and territory governments, carers, service providers and peak bodies. The Australian Government discussion paper Towards a National Carer Strategy formed the basis for nation wide targeted consultations and a written submission process undertaken in 2010.

The Government is building on measures such as greater financial security for carers through increases to the Carer Payment and an annual ongoing Carers Supplement with new services for carers. As part of reforms announced earlier in the year, carers and their families will be able to access improved family relationship and support services that cater specifically to their needs, under reforms to the Family Relationship Services for Carers initiative. From 1 July this year the Family Relationship Services for Carers initiative will be integrated into the Government's Family Support Program.

Support for seniors

FaHCSIA will continue to work to support the wellbeing of Australian seniors. The Secure and Sustainable Pension Reform package has been successfully implemented. Most components commenced from 20 September 2009, with two further measures implemented from 1 July 2010 (improved pension advances and the option to receive the Pension Supplement quarterly). The Department will continue to monitor the impacts of the package, including its longer term effects. The Government has committed to enhancing the work bonus arrangements for age pensioners from 1 July 2011, subject to the passage of legislation. To respond to the long-term cost of demographic change and to reflect improvements in life expectancy, the Government will progressively increase the qualifying age for the Age Pension to 67 beginning in 2017.

The government also understands that many grandparents have a continuing, primary care role for young children. Additional support for grandparent carers will be provided in this Budget, with funding to establish 25 peer support groups for grandparent carers across Australia. These groups will offer a supportive environment for grandparents to meet and share ideas with other grandparents who are caring for their grandchildren.  In addition, the Government will provide four new Centrelink Grandparent Advisors – one each in Melbourne and Brisbane, and two in Sydney – to complement the existing Grandparent Advisor in Perth.  These Grandparent Advisors will assist grandparents to access the government payments they are entitled, and provide information about to other relevant support and services available to them.

The Government continues to roll-out assistance to help seniors to stay in touch with their family and friends and engage in the community by providing $10.4 million additional funding in this budget for the Broadband for Seniors initiative. Broadband for Seniors provides older Australians with free internet kiosks in their local communities, as well as training in basic computing, internet browsing and email skills.

Continuing to address Indigenous disadvantage

FaHCSIA's lead role in delivering the Government's Closing the Gap targets has helped focus coordinated effort towards improving outcomes for Indigenous Australians. FaHCSIA leads a collaborative, whole-of-government approach to Indigenous affairs in order to ensure a better alignment of overall effort to achieve the Government's commitments under the National Indigenous Reform Agreement.

FaHCSIA is working to better integrate efforts to achieve improvements in safety and wellbeing for remote communities in the Northern Territory, better service delivery for Indigenous people, both in remote communities and in urban and regional communities, and economic participation among Indigenous Australians. FaHCSIA also works to facilitate strong engagement among Indigenous Australians in these areas.

2011-12 Budget continues to build on the significant investments already in place in Indigenous Affairs. Funding of $16.1 million will be provided to extend the Cape York Welfare Reform Trial by 12 months until 31 December 2012. The Queensland Government, a strong partner in the trial, will lead a process of consultation with Cape York communities on the extension. Indigenous people will also benefit from the expansion of the Personal Helpers and Mentors (PHaMS) respite service in this year's Budget.

Across Government, this Budget provides new investment in services to close the gap in Indigenous disadvantage and to supporting Indigenous economic participation and employment. This includes $113.4 million over five years to provide 15 new or expanded Indigenous health clinics and 40 new renal dialysis chairs; and $50.7 million over four years to provide school based traineeships and other support to help 6,400 Indigenous students make an effective transition to work or further study.

New investments in the 2011-12 Budget build on the unprecedented investments made by the Australian to overcome decades of under-investment in services and infrastructure. Improving the quality and supply of Indigenous housing and infrastructure in remote communities remains a key priority for FaHCSIA and the Australian Government. FaHCSIA continues to support the Government's unprecedented investment of $5.5 billion over ten years from 2008-09 to 2017 18 and to drive states and territories to meet their implementation milestones under the National Partnership Agreement on Remote Indigenous Housing.

Improving the quality and supply of Indigenous housing and infrastructure in remote communities remains a key priority for FaHCSIA and the Australian Government. FaHCISA continues to support the Government's unprecedented investment of $5.5 billion over ten years from 2008-09 to 2017 18 and to drive states and territories to meet their implementation milestones under the National Partnership Agreement on Remote Indigenous Housing.

FAHCSIA will continue to work with all levels of government to deliver the $291.2 million National Partnership Agreement on Remote Service Delivery, to improve the delivery of services to Indigenous people in 29 priority remote locations across the Northern Territory, Western Australia, Queensland, New South Wales and South Australia.

Work will also continue to deliver significant investment in services to improve the lives of Indigenous people in the Northern Territory, through the $807.4 million Closing the Gap in the Northern Territory National Partnership Agreement.

Reforming the Constitution by publicly acknowledging the unique and special place that Aboriginal and Torres Strait Islander peoples have in the nation will build on the Government's efforts to close the gap. The Government is progressing this important reform and has established an Expert Panel that will consider how best to progress constitutional recognition of Indigenous people, and provide possible options on the nature of amendments which may be put to the Australian people at a referendum. The Expert Panel will report to the Government by December 2011.

Housing

The Social Housing Initiative, announced as part of the Nation Building – Economic Stimulus Plan, continues to be rolled out across Australia with completion of building works expected by June 2012. The initiative helps disadvantaged Australians, particularly those who are homeless or at risk of becoming homeless, and ensures that current tenants benefit from upgrades to their housing.

Addressing homelessness is crucial in reducing long-term disadvantage, and remains a priority for the Government. The Government is working with states and territories under the National Partnership Agreement on Homelessness on the effective rollout of new and expanded services. In 2011–12 the Government will continue working with the states and territories to develop a National Quality Framework to improve the quality of professional service organisations that work with people dealing with homelessness.

Preventing homelessness is not just about providing a house. It also involves a broader set of integrated services that include mental health, drug and alcohol, education, training and employment initiatives. The new National Partnership Agreement on Mental Health in this Budget provides states and territories with an opportunity to build a more strongly connected system, from hospital to housing, for people with mental health conditions.

To ensure policy and services to reduce homelessness are underpinned by a strong evidence base, the Government will continue to support the Longitudinal Study of Australians Vulnerable to Homelessness. As part of the National Homelessness Research Agenda, the study aims to improve understanding of, and policy responses to, the diverse social, economic and personal factors that are related to homelessness and the risk of becoming homeless.

The Department also continues to have significant responsibilities in managing key elements of COAG's reform agenda, in housing, disability and Indigenous reform. FaHCSIA maintains policy and performance management responsibility for these elements of the COAG reform agenda and works closely with state and territory government agencies.

Economic and fiscal context for the 2011–12 Budget

These Portfolio Budget Statements reflect a clear commitment to continuing to invest in key programs and services, to provide support and stabilise the circumstances of the most vulnerable members of the community, and support greater participation once that stability has been achieved. This approach acknowledges that, while the effects of the global economic downturn were felt by many Australians, the risks of ongoing impacts are greatest for those who face an increased likelihood of long-term disconnection from social and economic participation.

The decisions reflected in these Portfolio Budget Statements are based on responsible financial management, a thorough scrutiny of existing effort and the prioritisation of new spending. Savings have sought to balance fiscal constraints, sustainability of outlays and the continuing support of effective measures that focus on the needs of disadvantaged Australians.

1.2 Agency resource statement

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


Table 1.1: FaHCSIA resource statement—Budget estimates for 2011–12 as at Budget May 2011
 
 
Estimate of prior year amounts available in
2011–12

$'000
+
Proposed at Budget
2011–12

$'000
=
Total estimate
2011–12

$'000
Actual available appropriation
2010–11

$'000
Ordinary Annual Services - Bill 11              
Departmental appropriation              
Prior year departmental appropriation2   94,692   -   94,692 107,552
Departmental appropriation3   -   553,112   553,112 542,766
s. 31 Relevant agency receipts4   -   25,284   25,284 27,240
Total   94,692   578,396   673,088 677,558
Administered expenses              
Outcome 1   2,105   213,309   215,414 202,623
Outcome 2   -   31,029   31,029 39,378
Outcome 3   1,500   173,036   174,536 206,472
Outcome 4   -   2,600   2,600 5,000
Outcome 5   5,000   543,932   548,932 477,303
Outcome 6   1,900   31,991   33,891 23,150
Outcome 7   -   535,908   535,908 601,484
Total   10,505   1,531,805   1,542,310 1,555,410
Non appropriated revenue   -   35,388   35,388 41,301
Payments to CAC Act Bodies   -   137,629   137,629 156,497
Total Administered   10,505   1,704,822   1,715,327 1,753,208
Total ordinary annual services A 105,197   2,283,218   2,388,415 2,430,766
               
Other services - Bill 25              
Administered expenses              
Departmental non-operating              
Equity injections   -   2,997   2,997 12,779
Total   -   2,997   2,997 12,779
Administered non-operating              
Payments to CAC Act bodies - non-operating -   33,170   33,170 40,090
Total              
               
Total other services B -   36,167   36,167 52,869
Total available annual appropriations   105,197   2,319,385   2,424,582 2,483,635
Special appropriations              
Special appropriations limited by criteria/entitlement          
Aboriginal Land Rights (Northern Territory) Act 1976   -   178,989   178,989 164,543
Social Security (Administration) Act 1999   -   54,011,543   54,011,543 50,561,494
A New Tax System (Family Assistance)              
(Administration) Act 1999   -   19,087,343   19,087,343 18,868,300
Northern Territory National Emergency Response Act 2007   -   2,560   2,560 4,000
Paid Parental Leave Act 2010   -   1,344,979   1,344,979 640,640
Total special appropriations C -   74,625,414   74,625,414 70,238,977
Total appropriations excluding Special Accounts 105,197   76,944,799   77,049,996 72,722,612
Special Accounts              
Opening balance6   2,275,611   -   2,275,611 2,210,079
Appropriation receipts7   -   178,789   178,789 164,343
Non-appropriation receipts to Special Accounts -   136,860   136,860 133,905
Total Special Accounts D 2,275,611   315,649   2,591,260 2,508,327
Total resourcing   2,380,808   77,260,448   79,641,256 75,230,939
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   -   (349,588)   (349,588) (360,930)
Total net resourcing for FaHCSIA   2,380,808   76,910,860   79,291,668 74,870,009

Note: All figures are GST exclusive.

1 Appropriation Bill (No.1) 2011–12.

2 Estimated adjusted balance carried from previous year for annual appropriations.

3 Includes an amount of $27.3m in 2011–12 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4 s. 31 relevant agency receipts - estimate.

5 Appropriation Bill (No.2) 2011–12.

6 Estimated opening balance for special accounts. See Table 3.1.2, Section 3 for more information.

7 Appropriation receipts from FaHCSIA annual and special appropriations for 2011–12.

Department of Families, Housing, Community Services and Indigenous Affairs Resource Statement Budget estimates for 2011–12 as at Budget May 2011 (continued)

Third—Party Payments from and on behalf of other agencies

 

2011–12

$'000

2010–11

$'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 19,027,340 19,143,416
Special appropriations—Social Security (Administration) Act 1999 54,104,668 50,922,915
Special appropriations—Paid Parental Leave Act 2010 1,394,521 349,243
Annual appropriations—Ex-Gratia and Act of Grace Payments 3,729 3,837
Department of Veterans' Affairs has the authority to make the following payments to customers on behalf of FaHCSIA:    
Special appropriations—Social Security (Administration) Act 1999 59,344 63,397
Payments made to other agencies for the provision of services    
Australian Taxation Office 609 607
Centrelink - 3,480
Department of Human Services1 9,277 -
Department of Veterans' Affairs 199 199
Medicare Australia - 9,222
Payments made to CAC Act bodies within the portfolio  
Aboriginal Hostels Limited 38,481 45,396
Indigenous Business Australia 72,093 71,628
Indigenous Land Corporation 9,771 9,805
Torres Strait Regional Authority 50,454 69,758

Note: All figures are GST exclusive.

1 From 1 July 2011, Medicare Australia and Centrelink fall under the Department of Human Services.

1.3 Budget measures

Budget measures relating to FaHCSIA are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2: FaHCSIA 2011–12 Budget measures
 
Program
2011–12
$'000
2012–13
$'000
2013–14
$'000
2014–15
$'000
Expense measures          
Outcome 1 – Families and Children          
Family Support Program – indexation changes 1.1        
Administered expenses   309 610 944 1,282
Departmental expenses   (61) (62) (62) (63)
Total   248 548 882 1,219
Protective behaviours pilot program – school students 1.1        
Administered expenses   350 - - -
Departmental expenses   - - - -
Total   350 - - -
Building Australia's Future Workforce – Compulsory participation requirements for jobless families – targeted locations1 1.1        
Administered expenses   - 5,981 6,153 6,288
Departmental expenses   671 93 93 95
Total   671 6,074 6,246 6,383
Building Australia's Future Workforce – services to assist single parents enter the workforce1 1.1        
Administered expenses   711 5,085 5,927 6,058
Departmental expenses   709 185 187 189
Total   1,420 5,270 6,114 6,247
Drought policy reform – pilot of new measures in Western Australia – extension and expansion2 1.1        
Administered expenses   1,922 - - -
Departmental expenses   - - - -
Total   1,922 - - -
Reform of family payments – pause indexation of Family Tax Benefit supplements for three years 1.1        
Administered expenses   (76,951) (179,007) (267,889) (278,829)
Departmental expenses   - - - -
Total   (76,951) (179,007) (267,889) (278,829)
Supporting Grandparent Carers – peer support groups3 1.1        
Administered expenses   238 242 247 252
Departmental expenses   59 30 80 30
Total   297 272 327 282
Reform of Family Payments – Aligning Family Tax Benefit Part A eligibility with Youth Allowance age of independence 1.2        
Administered expenses   (1,067) (7,534) (10,206) (11,582)
Departmental expenses   148 - - -
Total   (919) (7,534) (10,206) (11,582)
Healthy Start for School3,4,5 1.2        
Administered expenses   - - - -
Departmental expenses   - - - -
Total   - - - -
Family Tax Benefit Part A – more flexible advances3,4,5 1.2        
Administered expenses   - - - -
Departmental expenses   - - - -
Total   - - - -
Fringe benefits tax – reform of the car fringe benefit rules6 1.2        
Administered expenses   (1,371) (5,361) (11,239) (15,884)
Departmental expenses   - - - -
Total   (1,371) (5,361) (11,239) (15,884)
Strengthening Compliance for Child Support3 1.2        
Administered expenses   (29,559) (30,357) (31,146) (31,925)
Departmental expenses   - - - -
Total   (29,559) (30,357) (31,146) (31,925)
Reform of family payments - pause indexation of upper limits and thresholds for a further two years 1.2, 1.3        
Administered expenses   - (205,471) (415,042) (425,836)
Departmental expenses   - - - -
Total   - (205,471) (415,042) (425,836)
Service Delivery Reform – improving portfolio business – improving online services7 1.2, 1.3        
Administered expenses   - - - -
Departmental expenses   1,345 1,373 1,387 1,399
Total   1,345 1,373 1,387 1,399
Paid Paternity Leave – implementation – new start date 1.3        
Administered expenses   - (31,854) 319 1,134
Departmental expenses   715 (370) (345) -
Total   715 (32,224) (26) 1,134
Outcome 2 – Housing          
National Mental Health Reforms – National Partnership Agreement on Mental Health8 2.1        
Administered expenses   - - - -
Departmental expenses   450 49 49 50
Total   450 49 49 50
Outcome 3 – Community Capability and the Vulnerable      
Financial Literacy and Micro-Finance Projects – continuation 3.1        
Administered expenses   14,008 14,415 14,775 15,144
Departmental expenses   546 552 557 562
Total   14,554 14,967 15,332 15,706
Child protection and voluntary income management in Western Australia – continuation 3.1        
Administered expenses   5,834 - - -
Departmental expenses   1,261 - - -
Total   7,095 - - -
Building Australia's Future Workforce – targeted locations income management and extension of the School Enrolment and Attendance Measure9 3.1        
Administered expenses   3,148 4,240 3,867 4,371
Departmental expenses   1,361 2,107 2,128 2,153
Total   4,509 6,347 5,995 6,524
Emergency Relief and Commonwealth Financial Counselling – continuation 3.1        
Administered expenses   22,105 25,713 29,403 30,077
Departmental expenses   519 960 1,256 1,268
Total   22,624 26,673 30,659 31,345
Natural Disaster Recovery and Rebuilding – Emergency Relief and Commonwealth Financial Counselling in flood and cyclone affected areas 3.1        
Administered expenses   10,401 5,337 - -
Departmental expenses   800 284 - -
Total   11,201 5,621 - -
Natural Disaster Recovery and Rebuilding – donation to the Perth Lord Mayor's Appeal Fund10,11 3.2        
Administered expenses   - - - -
Departmental expenses   - - - -
Total   - - - -
Youth Insearch Foundation – contribution12 3.2        
Administered expenses   - - - -
Departmental expenses   - - - -
Total   - - - -
Building Australia's Future Workforce – changes to the eligibility criteria for Youth Allowance (Other) and Newstart Allowance1 3.3        
Administered expenses   - - - -
Departmental expenses   24 24 24 25
Total   24 24 24 25
Natural Disaster Recovery and Rebuilding – Commission of Inquiry into Queensland Floods10,13 3.4        
Administered expenses   - - - -
Departmental expenses   (87) - - -
Total   (87) - - -
Allow Bereavement Allowance for Parenting Payment recipients 3.4        
Administered expenses   98 202 204 207
Departmental expenses   - - - -
Total   98 202 204 207
Outcome 4 – Seniors          
Reduction in the minimum payment amounts for account-based pensions in 2011-126          
Administered expenses 4.1 9,000 - - -
Departmental expenses   - - - -
Total   9,000 - - -
Broadband for Seniors – continuation          
Administered expenses 4.2 2,600 2,600 2,600 2,600
Departmental expenses   - - - -
Total   2,600 2,600 2,600 2,600
Outcome 5 – Disability and Carers          
National Mental Health Reform – Expanding community mental health services – additional Family Mental Health Support services14          
Administered expenses 5.1 2,100 8,551 13,109 17,833
Departmental expenses   217 315 194 196
Total   2,317 8,866 13,303 18,029
National Mental Health Reform – expanding community mental health services – additional personal helpers and mentors and respite services15          
Administered expenses 5.1 7,016 29,269 51,690 59,163
Departmental expenses   243 342 194 196
Total   7,259 29,611 51,884 59,359
Building Australia's Future Workforce – Audit of Disability Support Pension new claim assessments16 5.2        
Administered expenses   - - - -
Departmental expenses   - - - -
Total   - - - -
Community Development Employment Projects program – eligibility for the Approved Program of Work Supplement 5.2        
Administered expenses   48 108 108 108
Departmental expenses   - - - -
Total   48 108 108 108
Building Australia's Future Workforce – implementation of more efficient and accurate assessments for Disability Support Pension 5.2, 5.3        
Administered expenses   (55,887) (53,342) (42,638) (44,561)
Departmental expenses   410 - - -
Total   (55,477) (53,342) (42,638) (44,561)
Disability Support Pension – portability changes 5.2, 5.3        
Administered expenses   38 (1,620) (8,251) (15,594)
Departmental expenses   354 192 94 95
Total   392 (1,428) (8,157) (15,499)
A Better Start for Children with Disability – Early intervention3,17 5.4        
Administered expenses   35,662 34,138 31,512 15,756
Departmental expenses   872 646 288 288
Total   36,534 34,784 31,800 16,044
Australian Disability Enterprises Sector – additional funding 5.4        
Administered expenses   9,778 - - -
Departmental expenses   - - - -
Total   9,778 - - -
Helping Children with Autism – additional funding18 5.4        
Administered expenses   14,967 - - -
Departmental expenses   - - - -
Total   14,967 - - -
Outcome 6 – Women          
Primary Care – redirection of the domestic violence referral points project8 6.1        
Administered expenses   1,931 1,920 2,018 2,062
Departmental expenses   129 130 131 132
Total   2,060 2,050 2,149 2,194
Gender Equality in the Workplace3,19 6.1        
Administered expenses   (750) (767) (785) (801)
Departmental expenses   - - - -
Total   (750) (767) (785) (801)
Outcome 7 – Indigenous          
Cape York Welfare Reform Trial – extension 7.4        
Administered expenses   4,563 3,872 - -
Departmental expenses   279 282 - -
Total   4,842 4,154 - -
Cross–Outcome          
Efficiency dividend – temporary increase in the rate20          
Outcome 1 All        
Administered expenses   - - - -
Departmental expenses   (547) (1,040) (1,315) (1,505)
Outcome 2 All        
Administered expenses   (121) (244) (307) (372)
Departmental expenses   (145) (270) (341) (382)
Outcome 3 All        
Administered expenses   (37) (77) (99) (122)
Departmental expenses   (217) (404) (512) (573)
Outcome 4 All        
Administered expenses   - - - -
Departmental expenses   (155) (299) (377) (436)
Outcome 5 All        
Administered expenses   (1,613) (3,823) (4,844) (5,312)
Departmental expenses   (362) (674) (853) (956)
Outcome 6 All        
Administered expenses   - - - -
Departmental expenses   (48) (90) (114) (127)
Outcome 7 All        
Administered expenses   - - - -
Departmental expenses   (1,136) (2,113) (2,671) (2,994)
Total   (4,381) (9,034) (11,433) (12,779)
Building Australia's Future Workforce – Compulsory Participation Plans and Support for Teenage Parents – targeted locations1          
Outcome 1 1.1        
Administered expenses   1,674 504 644 658
Departmental expenses   344 62 62 63
Outcome 3 3.4        
Administered expenses   - - - -
Departmental expenses   - 2 1 1
Total   2,018 568 707 722
Migration Program – allocation of places for 2011–1221          
Outcome 1 1.2, 1.3        
Administered expenses   12,820 28,136 28,867 30,336
Departmental expenses   2 2 3 3
Outcome 3 3.3        
Administered expenses   4,997 10,255 14,864 16,126
Departmental expenses   3 3 4 4
Outcome 5 5.2, 5.3        
Administered expenses   2,353 5,112 6,585 7,761
Departmental expenses   - - - -
Total   20,175 43,508 50,323 54,230
Building Australia's Future Workforce – supporting families with teenagers3,22          
Outcome 1 1.2        
Administered expenses   281,115 733,037 909,526 932,104
Departmental expenses   - - - -
Outcome 4 4.1        
Administered expenses   (388) (798) (817) (838)
Departmental expenses   - - - -
Outcome 5 5.2, 5.3        
Administered expenses   (4,602) (9,471) (9,708) (9,950)
Departmental expenses   - - - -
Total   276,125 722,768 899,001 921,316
Social Security Agreement with Hungary          
Outcome 3 3.3        
Administered expenses   - (13) (13) (14)
Departmental expenses   - - - -
Outcome 4 4.1        
Administered expenses   - (438) (394) (424)
Departmental expenses   145 31 - -
Total   145 (420) (407) (438)
Provisional Partner Visa Holders – Entitlement to Special Benefit          
Outcome 3 3.3        
Administered expenses   (1,712) (12,437) (14,503) (14,838)
Departmental expenses   3 7 3 3
Outcome 4 4.1        
Administered expenses   27 201 239 249
Departmental expenses   - - - -
Outcome 5 5.2, 5.3        
Administered expenses   48 346 412 429
Departmental expenses   - - - -
Total   (1,634) (11,883) (13,849) (14,157)
Building Australia's Future Workforce – Disability Support Pension – participation requirements          
Outcome 4 4.1        
Administered expenses   - (1) (4) (8)
Departmental expenses   - - - -
Outcome 5 5.2, 5.3        
Administered expenses   - (453) (2,774) (2,827)
Departmental expenses   82 243 246 84
Total   82 (211) (2,532) (2,751)
Building Australia's Future Workforce – Disability Support Pension – allow all recipients to work up to 30 hours a week          
Outcome 4 4.1        
Administered expenses   - (207) (293) (384)
Departmental expenses   - - - -
Outcome 5 5.2, 5.3        
Administered expenses   - 4,191 1,740 (920)
Departmental expenses   37 - - -
Total   37 3,984 1,447 (1,304)
Fraud prevention and compliance – improving compliance with income reporting7          
Outcome 4 4.1        
Administered expenses   (2,856) (10,460) (15,820) (17,140)
Departmental expenses   - - - -
Outcome 5 5.2, 5.3        
Administered expenses   (997) (2,458) (2,972) (2,925)
Departmental expenses   - - - -
Total   (3,853) (12,918) (18,792) (20,065)
Community Development Employment Projects program – continuation of grandfathered wage arrangements5          
Outcome 4 4.1        
Administered expenses   (292) - - -
Departmental expenses   - - - -
Outcome 5 5.3        
Administered expenses   (1,195) - - -
Departmental expenses   - - - -
Outcome 7 7.1        
Administered expenses   68,786 - - -
Departmental expenses   - - - -
Total   67,299 - - -
Total expense measures          
Administered   339,249 367,872 286,009 268,912
Departmental   8,970 2,592 391 (200)
Total   348,219 370,464 286,400 268,712
Capital measures          
Outcome 1 - Families and Children          
Efficiency dividend – temporary increase in the rate19          
Outcome 1 All        
Administered capital   - - - -
Departmental capital   (43) (120) (105) (147)
Outcome 2 All        
Administered capital   - - - -
Departmental capital   (5) (17) (13) (18)
Outcome 3 All        
Administered capital   - - - -
Departmental capital   (10) (29) (24) (33)
Outcome 4 All        
Administered capital   - - - -
Departmental capital   (19) (53) (45) (63)
Outcome 5 All        
Administered capital   - - - -
Departmental capital   (6) (20) (14) (20)
Outcome 6 All        
Administered capital   - - - -
Departmental capital   - (1) - (1)
Outcome 7 All        
Administered capital   - - - -
Departmental capital   (55) (166) (113) (158)
Total   (138) (406) (314) (440)
Service Delivery Reform – improving portfolio business – improving online services7 1.2, 1.3        
Administered capital   - - - -
Departmental capital   670 - - 180
Total   670 - - 180
Total capital measures          
Administered   - - - -
Departmental   532 (406) (314) (260)
Total   532 (406) (314) (260)

Prepared on a Government Financial Statistics (fiscal) basis

1 This measure is led by the Department of Education, Employment and Workplace Relations. Further details can be found in Budget Paper 2 under the Education, Employment and Workplace Relations Portfolio.

2 This measure is led by the Department of Agriculture, Fisheries and Forestry. Further details can be found in Budget Paper 2 under the Agriculture, Fisheries and Forestry Portfolio.

3 These measures deliver 2010 election commitments.

4 This measure has no fiscal impact on FaHCSIA.

5 This measure has been previously reported in the 2010–11 FaHCSIA Portfolio Additional Estimates Statements (PAES).

6 This measure is led by the Treasury. Further details can be found in Budget Paper 2 under the Treasury portfolio.

7 This measure is led by the Department of Human Services. Further details can be found in Budget Paper 2 under the Human Services Portfolio.

8 This measure is led by the Department of Health and Ageing. Further details can be found in Budget Paper 2 under the Health and Ageing Portfolio.

9 This measure includes funding of $6.1m for FaHCSIA in 2015–16.

10 This measure is led by the Attorney-General's Department. Further details can be found in Budget Paper 2 under the Attorney-General's Portfolio.

11 The cost of this measure, $0.5m (administered) in 2010-11, will be met from within existing resources.

12 The cost of this measure, $1.6m (administered) over four years, will be met from within existing resources.

13 This measure includes reduced funding of $0.1m for FaHCSIA in 2010–11.

14 This measure includes funding of $18.5m for FaHCSIA in 2015–16.

15 This measure includes funding of $60.2m for FaHCSIA in 2015–16.

16 The cost of this measure, $0.1m (departmental) in 2013-14, will be met from within existing resources.

17 This measure includes funding of $1.5m for FaHCSIA in 2010–11.

18 This measure includes funding of $13.7m for FaHCSIA in 2010–11.

19 This measure is led by the Equal Opportunity for Women in the Workplace Agency (EOWA). Further details can be found in Budget Paper 2 under the Families, Housing, Community Services and Indigenous Affairs portfolio.

20 This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

21 This measure is led by the Department of Immigration and Citizenship. Further details can be found in Budget Paper 2 under the Department of Immigration and Citizenship section.

22 This measure has been previously reported in the 2010–11 FaHCSIA PAES. Financial implications for this measure have been updated due to a revision to the number of effected customers.

Section 2: Outcomes and program 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. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the Department's performance.

Outcome 1: Families and Children

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

Outcome 1 strategy

FaHCSIA's programs and payments for families deliver broad assistance to families as well as targeting vulnerable and at-risk families and children, particularly during major transitions in life. Assistance is provided to help families with the costs associated with the arrival of a child; parenting (particularly during early childhood); and family relationship problems and separation.

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

The 2011–12 Budget provides more support for low- and middle-income families raising teenagers by significantly increasing family assistance to support teenagers in school, making advance payments more flexible, and encouraging parents to get health checks for their children before they start school. In addition, from 1 January 2012, the FTB Part A maximum age of eligibility will be lowered from 24 to 21 years. This brings FTB Part A in line with the Youth Allowance age of independence. 

The Budget also extends indexation pauses for two years on the high income threshold for FTB Part A and the income limits for FTB Part B, Baby Bonus and Paid Parental Leave until 30 June 2014. In addition, the annual FTB Part A and FTB Part B end-of-year supplements will remain at their current levels for three additional years. These changes will ensure the family payment system is sustainable into the future.

Australia's first PPL Scheme started on 1 January 2011 and gives babies the best start in life by enabling more parents to spend time with their children during the crucial early months without losing their connection to the labour market. People who are not eligible for paid parental leave or who choose not to participate will continue to be assisted with the costs of newborn children through the Baby Bonus and FTB.

The 2011–12 Budget provides a new start date for the Paid Paternity Leave Scheme. The scheme will provide eligible working fathers or partners caring for a child born or adopted from 1 January 2013 with a dedicated two-week payment at the national minimum wage.

The Family Support Program is a suite of integrated services to support families, to improve children's wellbeing, development and safety, and to enhance family functioning. From 1 July 2011, the Government will deliver reforms to the Family Support Program that will increase support to vulnerable children and families, promote collaboration, and reduce red tape for service providers. As part of the 2011–12 Budget, the Family Support Program is being enhanced:

  • through the streamlining of the program which includes the alignment of a common factor of indexation and the removal of efficiency dividend across the Families and Children Services
  • by new peer support groups for grandparent carers
  • by additional funding for Communities for Children services nationally in targeted communities to assist teenage and jobless parents and their children, as part of the Building Australia's Future Workforce package.

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

From 1 July 2011, the Government will strengthen its rules to achieve more accurate assessments of separated parents' incomes in the calculation of their child support liabilities. For parents who do not lodge their taxable income for a particular year, their last known taxable income will be indexed in line with average wage growth for the relevant period. This approach will ensure more accurate income is being used to support parents to meet their child support responsibilities.

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

Outcome 1 expense statement

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


Table 2.1: Budgeted expenses and resources for Outcome 1
Outcome 1: Families and Children

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 1.1: Family Support    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 191,571 215,311
Special Accounts 276 250
Departmental expenses    
Departmental appropriation 1 55,460 57,654
Expenses not requiring appropriation in the Budget year 2 5,671 5,406
Subtotal for Program 1.1 252,978 278,621
Program 1.2: Family Tax Benefit    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 150 -
Special Appropriations 17,729,691 18,105,606
Departmental expenses    
Departmental appropriation 1 24,934 24,856
Expenses not requiring appropriation in the Budget year 2 2,548 2,326
Subtotal for Program 1.2 17,757,323 18,132,788
Program 1.3: Parental Payments and Care Incentives    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 10,902 103
Special Appropriations 1,782,590 2,330,214
Departmental expenses    
Departmental appropriation 1 16,502 15,521
Expenses not requiring appropriation in the Budget year 2 1,686 1,449
Subtotal for Program 1.3 1,811,680 2,347,287
Outcome 1 totals by appropriation type    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 202,623 215,414
Special Appropriations 19,512,281 20,435,820
Special Accounts 276 250
Departmental expenses    
Departmental appropriation 1 96,896 98,031
Expenses not requiring appropriation in the Budget year 2 9,905 9,181
Total expenses for Outcome 1 19,821,981 20,758,696
  2010–11 2011–12
Average Staffing Level (number) 539 531

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 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s. 31)'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Contributions to Outcome 1

Program 1.1: Family Support2
Program 1.1 objective

The Family Support Program is a suite of integrated services to support families, to improve children's wellbeing, development and safety and to enhance family functioning. From 1 July 2011, the Government will deliver reforms to the family Support Program that will increase support to vulnerable children and families, promote collaboration, and reduce red tape for service providers. As part of the 2011-12 Budget, the Family Support Program is being enhanced through the streamlining of the program which includes the alignment of a common factor of indexation and the removal of efficiency dividend across the Families and Children Services.

Program component objectives
Family and Children Services

To provide services to families, particularly those who are vulnerable, disadvantaged or live in disadvantaged communities to improve family functioning and safety, and child wellbeing and development.

Linked to: The policy responsibility for Family Law Services resides with the Attorney-General's Department (AGD). For more information about this program refer to AGD's 2011–12 PB Statements.

Program 1.1 expenses

The change in program expenses across the forward years reflects the introduction of a single Family Support program which amalgamates the Family Relationship Services, Children and Parenting Services, part of the Community Investment program (Output 3.2) and separates Find and Connect Service.

The program expenses also reflect the impact of policy initiatives including the 2011–12 Budget measures for Family Support under the Building Australia's Future Workforce and the 2009-10 Budget measure Closing the Gap - Northern Territory Family Support Package.


Table 2.1.1: Budgeted expenses for Family Support
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Family Relationship Services B1 101,552 - - - -
Children and Parenting Services B1 86,404 - - - -
Find and Connect Service B1 3,615 7,173 6,683 4,708 4,468
Family Support1 B1 - 208,138 210,929 216,078 218,659
Special Account Expenses:            
Other Services - Services for Other            
Entities and Trust Moneys   276 250 - - -
Program support   55,460 57,654 58,350 57,601 51,775
Expenses not requiring appropriation in the Budget year2   5,671 5,406 5,833 5,138 4,601
Total program expenses   252,978 278,621 281,795 283,525 279,503

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).

1 Due to program simplification, from 2011–12 onwards, Family Relationship Services and Children and Parenting Services will become Family Support.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 1.1 deliverables3
Family and Children Services
  • Number of clients assisted


Family and Children Services deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of clients assisted

-

750,000

755,000

755,000

755,000

Program 1.1 key performance indicators
  • Percentage of clients reporting improved child wellbeing and development, safety and family functioning4
  • Percentage of clients with increased knowledge and skills related to child wellbeing and development, safety or family functioning4
  • Percentage of clients satisfied with the assistance received
  • Percentage of clients assisted from priority groups
  • Percentage of service sites in the most disadvantaged or targeted communities


Family and Children Services key performance indicators targets
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Percentage of clients reporting improved child wellbeing and development, safety and family functioning

-

70%

70%

70%

70%

Percentage of clients with increased knowledge and skills related to child wellbeing and development, safety or family functioning

-

80%

80%

80%

80%

Percentage of clients satisfied with the assistance received

-

80%

80%

80%

80%

Percentage of clients assisted from priority groups

-

ATSI 8%

ATSI 9%

ATSI 10%

ATSI 11%

   

CALD 9%

CALD 10%

CALD 11%

CALD 12%

Percentage of service sites in the most disadvantaged or targeted communities

-

75%

75%

75%

75%

Note: ATSI = Aboriginal and Torres Strait Islander persons.

CALD = Culturally and Linguistically Diverse background persons.

Program 1.2: Family Tax Benefit
Program 1.2 objective

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

Program component objectives
Family Tax Benefit Part A

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

Family Tax Benefit Part B

To make payments to assist low- and medium-income single parents, and partnered parents where one income is low, to enable families to exercise choices to balance labour force participation and child care responsibilities.

Linked to: As of 1 July Personal benefits payments under this program will be delivered by the Department of Human Services (DHS). For more information refer to DHS's 2011–12 PB Statements.

Program 1.2 expenses

The increase in program expenses across the forward years reflects projected changes in the economy, customer trends, indexation parameters and the impact of policy initiatives.

The major policy initiatives affecting program estimates relate to:

  • a 2010 election commitment to support families with teenagers increases the maximum rate of FTB Part A from January 2012 for 16 to 19 year olds in full-time secondary study
  • the 2009-10 Budget reforms to family payments pause indexation of the higher-income-free area of FTB Part A and the $150,000 primary earner income limits of FTB Part B from July 2009 to June 2012
  • the 2011-12 Budget extends indexation pauses for two years on the higher income-free area of FTB Part A and the income limits of FTB Part B until 30 June 2014. In addition, the annual FTB Part A and FTB Part B end-of-year supplements will remain at their current levels until June 2014. These changes will ensure the family payment system is sustainable into the future.


Table 2.1.2: Budgeted expenses for Family Tax Benefit
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Family Tax Benefit Participation Evaluation B1 150 - - - -
Special Appropriations:            
A New Tax System (Family Assistance)(Administration)            
Act 1999            
Family Tax Benefit Part A   13,427,158 13,676,417 14,078,511 14,325,426 14,649,650
Family Tax Benefit Part B   4,302,533 4,429,189 4,559,472 4,699,020 4,830,295
Program support   24,934 24,856 26,760 26,916 23,874
Expenses not requiring appropriation in the Budget year 1   2,548 2,326 2,675 2,403 2,122
Total program expenses   17,757,323 18,132,788 18,667,418 19,053,765 19,505,941

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 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

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

Program 1.2 deliverables
  • Payments are made through Centrelink and Medicare Australia to eligible claimants under the provisions of family assistance law.
Program 1.2 key performance indicators
Family Tax Benefit Part A
  • Total number of eligible customers5
  • Proportion of all customers paid by instalment6
  • Proportion of all customers paid by lump sum5
  • Proportion and amount of administered outlays paid by instalment and by lump sum
  • Percentage of all customers who had a qualification debt raised7
  • Percentage of all customers who had a debt raised following reconciliation6
  • Percentage of all customers who had a non-lodger debt raised6
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
  • Payment accuracy
  • Percentage and number of families with children under 16 years of age receiving FTB A
  • Percentage and number of families in receipt of FTB Part A within income test categories
Family Tax Benefit Part B
  • Total number of eligible customers4
  • Proportion of all customers paid by instalment5
  • Proportion of all customers paid by lump sum5
  • Proportion and amount of administered outlays paid by instalment and by lump sum
  • Percentage of all customers who had a qualification debt raised8
  • Percentage of all customers who had a debt raised following reconciliation7
  • Percentage of all customers who had a non-lodger debt raised7
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
  • Payment accuracy
  • Percentage and number of families with children under 16 years of age receiving FTB B
  • Percentage and number of families in receipt of FTB Part B within income test categories
Program 1.3: Parental Payments and Care Incentives
Program 1.3 objective

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

Program component objectives
Paid Parental Leave

To provide financial support for working parents of newborn or adopted children to facilitate time off work to care for their child, enhance maternal and child wellbeing, encourage women's workforce participation and promote gender equity and work–life 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: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS's 2011–12 PB Statements.

Immunisation is delivered by the Department of Health and Ageing (DHA). For information about the delivery of this program, refer to DHA's 2011–12 PB Statements.

Program 1.3 expenses

The increase in program expenses across the forward years reflects projected changes in the economy, customer trends, indexation parameters and the impact of policy initiatives.

The larger increase in the expenses from 2010–11 to 2011–12 reflects a full year impact of the PPL scheme, which commenced on 1 January 2011. The further increase from 2012–13 reflects the implementation of Paid Paternity Leave from 1 July 2013.

The expense for PPL Communications and Evaluation was initially for a publicity campaign in 2009–10 and 2010–11 with evaluation to be taken between 2010 and 2014. Additional funding was provided for publicity campaign in 2012-13 and 2013–14 for the new Paid Paternity Leave scheme and to extend the scope of the evaluation to include paternity leave.


Table 2.1.3: Budgeted expenses for Parental Payments and Care Incentives
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Paid Parental Leave - communication and evaluation B1 10,902 103 2,649 4,511 -
Special Appropriations:            
A New Tax System (Family Assistance)(Administration)            
Act 1999            
Baby Bonus   1,102,511 915,992 936,081 963,463 996,811
Maternity Immunisation Allowance   36,098 65,745 68,981 72,125 74,907
Paid Parental Leave Act 2010            
Paid Parental Leave   640,640 1,344,979 1,438,751 1,534,872 1,592,894
Social Security (Administration) Act 1999            
Double Orphan Pension   3,341 3,498 3,632 3,741 3,848
Program support   16,502 15,521 21,632 21,171 18,973
Expenses not requiring appropriation in the Budget year 1   1,686 1,449 2,175 1,899 1,696
Total program expenses   1,811,680 2,347,287 2,473,901 2,601,782 2,689,129

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 1.3 deliverables
  • Payments are made through Centrelink and Medicare Australia (the Family Assistance Office) to eligible claimants under the provisions of family assistance law.
  • Double Orphan Pension is paid through Centrelink to eligible claimants under the provisions of social security law.
  • Centrelink funds employers to provide Parental Leave Pay to eligible employees, or the Family Assistance Office provides Parental Leave Pay directly to eligible parents, according to the provisions of the Paid Parental Leave Act 2010.9
Program 1.3 key performance indicators
Paid Parental Leave (PPL)
  • Percentage and number of mothers for whom PPL has been paid as a proportion of all mothers in the same year
  • Percentage and number of parents paid government-funded PPL by employers
  • Percentage and number of families who have taken the full 18 weeks of PPL10
Baby Bonus
  • Percentage and number of children for whom Baby Bonus is paid as a proportion of all children born in the same year11
Maternity Immunisation Allowance
  • Percentage and number of children vaccinated to the highest level appropriate for their age in the Australian Community
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
Baby Bonus
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
Outcome 2: Housing

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

Outcome 2 strategy

FaHCSIA aims to assist low- and moderate-income households to access affordable and appropriate housing and to support people to move out of homelessness. This includes providing funding through the states and territories for public housing and community housing. Rent Assistance helps to make rental housing costs more affordable for eligible people receiving income support or family payments.

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

FaHCSIA has whole-of-government oversight of social housing and homelessness policy and works in partnership with states and territories to improve the housing outcomes for Australians. Payments made under COAG national agreements are made by the Department of the Treasury. Performance indicators can be found at www.federalfinancialrelations.gov.au.

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

Through the National Partnership Agreement on Mental Health, the Government will work with the states and territories to reduce the risk of homelessness among people with mental health conditions.

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

Outcome 2 expense statement

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


Table 2.2: Budgeted expenses for Outcome 2
Outcome 2: Housing

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 2.1: Housing Assistance and Homelessness Prevention    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 39,378 31,029
Special Accounts 34 -
Departmental expenses    
Departmental appropriation 1 22,700 22,585
Expenses not requiring appropriation in the Budget year 2 2,275 2,073
Subtotal for Program 2.1 64,387 55,687
Outcome 2 totals by appropriation type:    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 39,378 31,029
Special Accounts 34 -
Departmental expenses    
Departmental appropriation 1 22,700 22,585
Expenses not requiring appropriation in the Budget year 2 2,275 2,073
Total expenses for Outcome 2 64,387 55,687
  2010-11 2011-12
Average Staffing Level (number) 171 169

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 Departmental Appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources s. 31'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 2.1: Housing Assistance and Homelessness Prevention
Program 2.1 objective

To provide rental subsidies for low- and moderate-income households, and to fund homelessness prevention initiatives to reduce the impact of homelessness.

Program component objectives
Homelessness Prevention

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

Rent Assistance

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

Linked to: Payments under the National Affordable Housing Agreement, the National Partnership Agreement on Homelessness, the National Partnership on Remote Indigenous Housing, the Nation Building – Economic Stimulus Plan and the National Partnership Agreement on Social Housing are made by the Commonwealth Treasury. For information about those payments, refer to the Treasury's 2011–12 PB Statements and Budget Paper No. 3, Australia's Federal Relations.

Rent Assistance is delivered by DVA and, from 1 July, by DHS. For information about the delivery of this service refer to each department's 2011–12 PB Statements.

Program 2.1 expenses

The change in program expenses across the forward estimates reflects projected changes in indexation parameters and the impact of policy initiatives.

The fluctuating change in expenses in 2011–12, 2012–13 and 2013–14 reflects the transfer of the Housing Affordability Fund to the Department of Sustainability, Environment, Water, Population and Communities as a result of the 2010 Administrative Arrangement Orders.


Table 2.2.1: Budgeted expenses for Housing Assistance and Homelessness Prevention
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Housing Assistance andHomelessness Prevention B1 39,378 31,029 33,465 31,358 31,677
Special Account Expenses:            
SAAP Data and Program Evaluation Fund Special Account   34 - - - -
Program support   22,700 22,585 19,538 20,178 18,566
Expenses not requiring appropriation in the Budget year 1   2,275 2,073 1,894 1,750 1,601
             
Total program expenses   64,387 55,687 54,897 53,286 51,844

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

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Rent Assistance cash projections

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

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


Table 2.2.2.1: Cash projections for Rent Assistance
 

2010–11

$

2011–12

$
FAHCSIA: A New Tax System (Family Assistance) (Administration) Act 1999    
Family Tax Benefit Part A 1,410,137 1,475,599
FAHCSIA: Social Security (Administration) Act 1999    
Age Pension 480,276 517,617
Bereavement Allowance 71 60
Carer Payment 49,942 57,788
Disability Support Pension 503,642 552,096
Special Benefit 4,140 4,506
Widow B Pension 6 6
Wife Pension (Age) 1,149 1,039
Wife Pension (DSP) 1,394 1,111
DEEWR: Social Security (Administration) Act 1999    
Austudy 28,814 33,631
Newstart Allowance 372,988 381,649
Parenting Payment (Single) 13,984 14,179
Parenting Payment (Partnered) 485 310
Partner Allowance 261 169
Sickness Allowance 5,328 5,252
Widow Allowance 19,182 18,676
Youth Allowance 169,300 190,663
DEEWR: Abstudy (Student Assistance Act 1973) 11,474 13,440
DVA: Veterans' Entitlements Act 19861 37,236 37,593
Total cash forecasts - whole-of-government 3,109,809 3,305,384

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

Program 2.1 deliverables13
Homelessness Prevention
  • Number of cases where individuals/families are assisted through homelessness prevention services14
Rent Assistance
  • Rent Assistance payments are made through Centrelink to eligible claimants under the provisions of social security law and family assistance law.


Homelessness Prevention deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of cases where individuals assisted

-

5,500

5,500

5,500

5,500

Number of cases where families assisted

 

400

400

400

400

Program 2.1 key performance indicators15
Homelessness Prevention
  • Proportion of clients reporting an improved situation after assistance from homelessness prevention programs
Rent Assistance
  • Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance
  • Proportion of Rent Assistance recipients paying enough rent to receive the maximum rate of assistance
  • Proportion of clients assisted who identify as Aboriginal or Torres Strait Islander16
  • Average rent paid by Rent Assistance recipients by number of recipients, primary payment type and income unit type17
  • Average Rent Assistance paid to Rent Assistance recipients by number of recipients, primary payment type and income unit type16
  • Administered outlays
  • Number of recipients
Outcome 3: Community Capability and the Vulnerable

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

Outcome 3 strategy

Community programs complement the income support system by providing services for those greatest in need. Vulnerable individuals and families are supported to build financial capability and resilience through a range of assistance. This includes income management, emergency relief, financial counselling, money management information and education, and local community building projects. Key target groups for assistance include people with low incomes, people on income management, people in financial stress and people in transition to retirement.

FaHCSIA provides funding to front line community organisations to support vulnerable and disadvantaged Australians, including secure, ongoing funding for emergency relief and financial counselling services, and for innovative projects such as low interest loans and matched savings schemes.

This Budget provides secure, ongoing funding for emergency relief and financial counselling services. Emergency relief services provide vulnerable families and individuals with life essentials such as food and clothing, pharmacy and transport vouchers, and help with accommodation and utility bills. The ongoing investment over the next four years recognises that the strong demand for these services remains high across Australia.

Funding for innovative projects such as no-interest loan schemes, matched savings schemes and financial literacy projects for Indigenous Australians is also being extended in this Budget and will help people develop long-term savings habits and build their understanding of financial products.

FaHCSIA provides grants and assistance to community organisations to help them respond to local community needs, build service delivery partnerships, support volunteers and build capacity in the community sector.

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

The government will align the rules for accessing Special Benefit for Provisional Partner Visa (PPV) holders with other new migrants within the two-year Newly Arrived Residence Waiting Period.

To access Special Benefit, in addition to being in hardship PPV holders will need to demonstrate they have also experienced a 'substantial change of circumstances beyond their control' such as domestic violence, death of a partner or an injury or accident after their arrival in Australia. This change removes more generous access to income support for the partners of Australian citizens and residents while they are awaiting permanent residency as compared to other new migrants. This reflects the community's expectation that new migrants to Australia should be able to support themselves, or be supported by their families and partners.

The Government will change the rules to allow Parenting-Single Payment recipients to transfer to Bereavement Allowance on the death of a partner. This approach aligns the treatment of single recipients with that of surviving members of a couple who have dependent children and provides additional assistance during their bereavement period.

As part of the Building Australia's Future Workforce package of measures, and to help ensure vulnerable families are providing their children with the necessities of life, the Australian Government will expand child protection, voluntary and vulnerable income management to five additional locations across Australia. The Western Australian and Cape York Welfare reform trials are also being continued for an additional 12 months.

Outcome 3 expense statement

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


Table 2.3: Budgeted expenses for Outcome 3
Outcome 3: Community Capability and the Vulnerable

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 3.1: Financial Management    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 124,605 120,088
Departmental expenses    
Departmental appropriation 1 23,839 26,155
Expenses not requiring appropriation in the Budget year 2 2,450 2,468
Subtotal for Program 3.1 150,894 148,711
Program 3.2: Community Investment    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 72,075 44,354
Departmental expenses    
Departmental appropriation 1 19,798 19,726
Expenses not requiring appropriation in the Budget year 2 2,020 1,843
Subtotal for Program 3.2 93,893 65,923
Program 3.3: Income Support for Vulnerable People    
Administered expenses    
Special Appropriations 76,688 84,797
Departmental expenses    
Departmental appropriation 1 1,105 1,107
Expenses not requiring appropriation in the Budget year 2 112 103
Subtotal for Program 3.3 77,905 86,007
Program 3.4: Support for People in Special Circumstances    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 1,347 1,357
Special Appropriations 14,375 4,783
Departmental expenses    
Departmental appropriation 1 551 551
Expenses not requiring appropriation in the Budget year 2 41 38
Subtotal for Program 3.4 16,314 6,729
Program 3.5: Supplementary Payments and Support for    
Income Support Recipients    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 8,445 8,737
Special Appropriations 13,484 13,875
Departmental expenses    
Departmental appropriation 1 1,332 1,335
Expenses not requiring appropriation in the Budget year 2 136 125
Subtotal for Program 3.5 23,397 24,072
Outcome 3 totals by appropriation type:    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 206,472 174,536
Special Appropriations 104,547 103,455
Departmental expenses    
Departmental appropriation 1 46,625 48,874
Expenses not requiring appropriation in the Budget year 2 4,759 4,577
Total expenses for Outcome 3 362,403 331,442
  2010–11 2011–12
Average Staffing Level (number) 293 309

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 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources s. 31'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Contributions to Outcome 3

Program 3.1: Financial Management
Program 3.1 objective

To improve the financial knowledge, skills, capabilities and financial resilience of vulnerable individuals and families to alleviate the immediate impact of financial stress, and to progress initiatives in relation to problem gambling.

Program component objectives
Financial Management Information and Assistance

To improve the financial resilience of vulnerable individuals and families through financial counselling, information and education, crisis assistance and asset-building incentives such as matched savings and low-interest loans, and responding to the Productivity Commission's recommendations in its report on gambling.

Income Management

To help people take responsibility for themselves and their families by ensuring money is available for life's essentials and limiting the expenditure of income support payments on excluded items, including alcohol and tobacco products, pornography, gambling goods and activities.

Linked to: Administration of the School Enrolment and Attendance Measure is managed by the Department of Education, Employment and Workplace Relations (DEEWR). For information on this measure, refer to DEEWR's 2011–12 PB Statements.

Program 3.1 expenses

The change in program expenses across the forward years reflects projected changes in indexation parameters and the impact of policy initiatives.

The relevant policy initiatives are additional funding provided in this Budget for emergency relief, financial counselling, financial literacy and microfinance programs and incentives for the new model of Income Management.

The decrease in estimates in 2014–15 is because current funding for Financial Support Services to support income management in the Northern Territory finishes in 2013–14.


Table 2.3.1: Budgeted expenses for Financial Management
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Child Protection Pilot - WA B1 333 818 - - -
Financial Management            
Information and Assistance B1 123,005 117,814 112,907 112,534 100,583
Welfare Payments Reform B1 1,267 1,456 958 1,311 -
Program support   23,839 26,155 25,902 26,210 21,105
Expenses not requiring appropriation in            
the Budget year 1   2,450 2,468 2,604 2,353 1,883
Total program expenses   150,894 148,711 142,371 142,408 123,571

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 3.1 deliverables
Financial Management Information and Assistance
  • Number of clients assisted through the Financial Management Program
Income Management
  • Number of people on Income Management by measure18
Program 3.1 key performance indicators
Financial Management Information and Assistance
  • Percentage and number of clients that have their immediate crisis needs met
  • Percentage and number of clients with increased money management knowledge and skills
  • Percentage and number of clients adhering to agreed financial management strategies to manage life transitions
Income Management
  • Amount and percentage of income-managed funds spent on priority needs19


Financial Management Information and Assistance key performance indicators target
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Percentage and number of clients that have their immediate crisis needs met

-

CFC 88%

88%

88%

88%

 

 

22,700

22,700

22,700

22,700

 

-

ER 95%

95%

95%

95%

 

 

1,045,000

1,045,000

1,045,000

1,045,000

Percentage and number of clients with increased money management knowledge and skills

-

CFC 84%

84%

84%

84%

 

-

27,345

27,345

27,345

27,345

 

-

MM 9,600

9,600

9,600

9,600

 

-

80%

80%

80%

80%

Percentage and number of clients adhering to agreed financial management strategies to manage life-transitions

-

18,770

18,770

18,770

18,770

 

-

93%

93%

93%

93%

Notes: CFC = Commonwealth Financial Counselling

ER = Emergency Response

MM = Money Management

Program 3.2: Community Investment
Program 3.2 objective

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

Program 3.2 expenses

The change in program expenses across the forward years reflects projected changes in indexation parameters and the impact of policy initiatives.

The reduction in 2011–12 reflects the end of the 2008-09 Budget measure that provided supplementary funding of $15 million over three years for the Volunteer Grants program expansion to help with petrol costs; the transfer of volunteering policy and management to the Department of the Prime Minister and Cabinet; and the transfer of community programs focusing on children and parenting to the Family Support Program (Outcome 1).


Table 2.3.2: Budgeted expenses for Community Investment
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Annual administered expenses: Community Investment B1 72,075 44,354 47,356 48,314 52,145
Program support   19,798 19,726 20,756 21,720 19,953
Expenses not requiring appropriation in the Budget year 1   2,020 1,843 2,070 1,937 1,774
Total program expenses   93,893 65,923 70,182 71,971 73,872

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 3.2 deliverables20,21
  • Number of individuals assisted through Volunteer Grants
  • Number of individuals assisted through the Community Investment Program22


Community Investment deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of individuals assisted through Volunteer Grants

-

195,000

195,000

195,000

-

Number of individuals assisted through the Community Investment Program

-

239,000

239,000

239,000

-

Program 3.2 key performance indicators

Community Investment
  • Percentage and number of individuals who indicated they were satisfied with the Community Support Service and Community Projects
  • Percentage and number of individuals assisted from Indigenous and culturally and linguistically diverse backgrounds23

 

Program 3.3: Income Support for Vulnerable People
Program 3.3 objective

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

Linked to: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS's 2011–12 PB Statements.

Program 3.3 expenses

The increase in program expenses across the forward years reflects projected changes in customer trends and indexation parameters.


Table 2.3.3: Budgeted expenses for Income Support for Vulnerable People
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Special appropriations:            
Social Security (Administration) Act 1999            
Special Benefit   76,688 84,797 85,479 94,509 102,648
Program support   1,105 1,107 829 858 932
Expenses not requiring appropriation in the Budget year 1   112 103 81 75 82
Total program expenses   77,905 86,007 86,389 95,442 103,662

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 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 3.3 deliverables
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
Program 3.3 key performance indicators
Income Support for Vulnerable People (Special Benefit)
  • Percentage and number of recipients on part rate due to the income and assets test24
  • Number of recipients
  • Administered outlays
  • Duration on payment
  • Payment accuracy
  • Agreements are in place with all service providers
  • Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
Program 3.4: Support for People in Special Circumstances
Program 3.4 objective

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

Program component objectives
Bereavement Allowance

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

Payments under Special Circumstances

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

Linked to: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS's 2011–12 PB Statements.

National Disaster Recovery Relief arrangements are administered through AGD. For further information, refer to AGD's 2011–12 PB Statements.

Program 3.4 expenses

The reduction in program expenses in 2011–12 reflects the transfer of the Australian Government Disaster Recovery Payment to the Attorney-General's Department as a result of the 2010 Administrative Arrangements Orders.

The increase in program expenses across the forward years reflects projected changes in the customer trends and indexation parameters for Bereavement Allowance.


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

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Payments under Special Circumstances B1 1,347 1,357 1,367 1,378 1,378
Special Appropriations:            
Social Security (Administration) Act 1999            
Australian Government Disaster            
Recovery Payment   10,794 - - - -
Bereavement Allowance   3,581 4,783 6,479 7,549 8,953
Program support   551 551 471 482 461
Expenses not requiring appropriation in the Budget year 1   41 38 32 30 28
Total program expenses   16,314 6,729 8,349 9,439 10,820

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 3.4 deliverables
Bereavement Allowance
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law and the FMA Act 1997.
Payments under Special Circumstances
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law and the FMA Act 1997.
Program 3.4 key performance indicators25
Bereavement Allowance
  • Number of recipients
  • Administered outlays
Payments under Special Circumstances
  • Number of recipients
  • Administered outlays
Program 3.5: Supplementary Payments and Support for Income Support Recipients
Program 3.5 objective

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

Program component objectives
Reimbursement to Great Southern Rail for Concessional Fares

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

Utilities Allowance

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

Linked to: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS's 2011–12 PB Statements.

Program 3.5 expenses

The increase in program expenses across the forward years reflects projected changes in customer trends and indexation parameters for the Utilities Allowance.


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

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Reimbursement to Great Southern Rail for Concessional Fares B1 8,445 8,737 8,478 8,689 8,906
Special Appropriations:            
Social Security (Administration) Act 1999            
Utilities Allowance   13,484 13,875 14,323 14,781 15,268
Program support   1,332 1,335 1,113 1,151 1,088
Expenses not requiring appropriation in the Budget year 1   136 125 110 102 96
Total program expenses   23,397 24,072 24,024 24,723 25,358

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 3.5 deliverables
Reimbursement to Great Southern Rail for Concessional Fares
  • Great Southern Rail is under agreement to provide concessional fares on its services to pensioners, certain veterans and holders of Commonwealth Seniors Health Card and state Senior Card holders.
Utilities Allowance
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
Program 3.5 key performance indicators
Reimbursement to Great Southern Rail for Concessional Fares
  • Administered outlays
  • Number of recipients
  • Number of journeys
Utilities Allowance
  • Administered outlays
  • Number of recipients
Outcome 4: Seniors

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

Outcome 4 strategy

FaHCSIA's key strategy under Outcome 4 is the payment of the Age Pension and supplements to those senior Australians who are unable to fully support themselves. Around four out of five Australians of Age Pension age receive Age Pension or some other income support. The main drivers of Age Pension expenditure are demographic change, economic conditions (such as inflation and wages growth) and the impact of policy initiatives.

Certain policy initiatives introduced as part of the pension reforms of 2009 are driving significant changes to the Age Pension. The changes included an increase to pension rates, a new pension supplement, and improved indexation and wage benchmarking arrangements. Since September 2009, the maximum pension has increased by $128 a fortnight for single people and $116 a fortnight for couples combined.

From 1 July 2010, pensioners have had more flexibility in the way they receive their payments, with improvements being made to pension advance payments and the option to be paid part of the pension supplement on a quarterly basis.

Many senior Australians have the capacity to re-enter or stay connected to the workforce. Those who work past pension age can benefit from the Work Bonus, which provides concessional treatment for employment income under the pension income test. The Government has committed to enhancing the Work Bonus arrangements for age pensioners, from 1 July 2011, subject to the passage of legislation. The gradual increase in the pension age from 65 to 67 years, starting from 1 July 2017, recognises that Australians have the capacity to have longer working lives, and will help ensure the Age Pension remains sustainable into the future.

The Government continues to assist senior Australians through the provision of concession cards, including the Pensioner Concession Card, the Health Care Card and the Commonwealth Seniors Health Card. These cards provide cardholders with access to Pharmaceutical Benefits Scheme prescription items and a lower Extended Medicare safety net threshold.

Seniors are also able to access the Financial Information Service provided by Centrelink. The service provides free financial information to assist people to make informed decisions about their financial arrangements.

The Broadband for Seniors initiative is being continued in this Budget. The initiative maintains a network of 2,000 Internet kiosks in locations frequented by seniors to help seniors get online and stay connected with families, friends and community activities.

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

Outcome 4 expense statement

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


Table 2.4: Budgeted expenses for Outcome 4
Outcome 4: Seniors

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 4.1: Income Support for Seniors    
Administered expenses    
Special Appropriations 31,862,146 34,177,713
Departmental expenses    
Departmental appropriation 1 18,851 18,156
Expenses not requiring appropriation in the Budget year 2 1,929 1,699
Subtotal for Program 4.1 31,882,926 34,197,568
Program 4.2: Allowances, Concessions and Services for    
Seniors    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 5,000 2,600
Special Appropriations 184,687 196,284
Departmental expenses    
Departmental appropriation 1 4,898 4,912
Expenses not requiring appropriation in the Budget year 2 499 458
Subtotal for Program 4.2 195,084 204,254
Outcome 4 totals by appropriation type:    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 5,000 2,600
Special Appropriations 32,046,833 34,373,997
Departmental expenses    
Departmental appropriation 1 23,749 23,068
Expenses not requiring appropriation in the Budget year 2 2,428 2,157
Total expenses for Outcome 4 32,078,010 34,401,822
  2010–11 2011–12
Average Staffing Level (number) 152 146

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 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources s. 31'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Contributions to Outcome 4

Program 4.1: Income Support for Seniors
Program 4.1 objective

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

Program component objectives
Age Pension

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

Widow B Pension

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

Wife Pension (Age)

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

Linked to: Personal benefits payments under this program are delivered by Centrelink (from 1 July DHS) and by DVA. For more information refer to each agency's 2011–12 PB Statements.

Program 4.1 expenses

The variations in program expenses across the forward years reflects projected changes in the economy, customer trends, indexation parameters and the impact of policy initiatives.

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


Table 2.4.1: Budgeted expenses for Income Support for Seniors
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Special Appropriations:          
Social Security (Administration) Act 1999        
Age Pension 31,720,383 34,044,533 36,751,159 38,781,305 41,502,477
Widow B Pension 7,946 7,557 8,023 7,966 7,903
Wife Pension (Age) 133,817 125,623 117,559 114,225 110,214
Program support 18,851 18,156 16,624 16,642 15,198
Expenses not requiring          
appropriation in the Budget year 1 1,929 1,699 1,652 1,477 1,343
Total program expenses 31,882,926 34,197,568 36,895,017 38,921,615 41,637,135

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 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 4.1 deliverables
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
Program 4.1 key performance indicators
Age Pension
  • Number of recipients
  • Administered outlays
  • Percentage and number of recipients on part rate due to the means test
  • Ratio of assessed income of pensioners to their total income
  • Percentage and number of senior Australians who receive payment
  • Percentage and number of recipients with employment income
  • Percentage and number of new entrants with employment income
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that the requirements are fulfilled under agreements with providers
Widow B Pension
  • Number of recipients
  • Administered outlays
  • Percentage and number of recipients on part rate due to the means test
Wife Pension (Age)
  • Number of recipients
  • Administered outlays
  • Percentage and number of recipients on part rate due to the means test
  • Ratio of current number of Wife Pension (Age) recipients to the number of Wife Pension (Age) recipients at 1 July 1995
Program 4.2: Allowances, Concessions and Services for Seniors
Program 4.2 objective

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

Program component objectives
Seniors Supplement

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

Broadband for Seniors

To maintain a network of 2,000 Internet kiosks in locations frequented by seniors to help seniors get online and stay connected with families, friends and community activities.

Linked to: Personal benefits payments under this program are delivered by DVA and, from 1 July, by DHS. For more information refer to each agency's 2011–12 PB Statements.

Program 4.2 expenses

The increase in program expenses across the forward years reflects projected changes in the customer trends and indexation parameters for the Seniors Supplement.

Under the Australian Government's Digital Economy Strategy, the Broadband for Seniors initiative will receive $10.4 million over four years from 2011–12 to 2014–15 to maintain 2,000 free internet kiosks for seniors across Australia. This follows the set-up phase of $15 million over three years from 2008–09 to 2010–11.


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

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Broadband for Seniors B1 5,000 2,600 2,600 2,600 2,600
Special Appropriations:            
Social Security (Administration) Act 1999            
Seniors Supplement   184,687 196,284 209,077 223,574 239,256
Program support   4,898 4,912 4,077 4,219 3,951
Expenses not requiring appropriation in the Budget year 1   499 458 402 372 347
Total program expenses   195,084 204,254 216,156 230,765 246,154

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 4.2 deliverables
Payments
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
Broadband for Seniors
  • Percentage of senior Internet users who have participated in training


Allowances, Concessions and Services for Seniors deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of cases where individuals assisted

-

80%

80%

80%

80%

Program 4.2 key performance indicators
Seniors Supplement
  • Number of recipients
  • Administered outlays
Broadband for Seniors
  • Percentage of seniors reporting improved skills and confidence in using the Internet
  • Number of seniors using Internet kiosks
Outcome 5: Disability and Carers

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

Outcome 5 strategy

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

Community-based mental health services seek to improve the capacity of individuals, families and carers affected by mental illness to participate in work and the community. The 2011–12 Budget provides a major funding boost to these services – including Personal Helpers and Mentors, Mental Health Respite and Family Mental Health Support Services – in recognition of the important support these services provide to people with mental illness, their families and carers.

The Government provides ongoing support to carers of both adults and children through the provision of the Carer Payment and Carer Allowance. In addition, the annual $600 Carer Supplement may be available to recipients of Carer Allowance for each person being cared for, and an additional $600 to those in receipt of Carer Payment or eligible income support payment. Carers of children under 16 years of age receiving Carer Allowance also receive the annual $1,000 Child Disability Assistance Payment for each eligible child care receiver. Carer Adjustment Payment was introduced in 2007. It is an ex-gratia payment for carers of children aged zero to six years with disability in particular circumstances.

Special Disability Trusts were introduced in 2006 to assist family members who have the financial means to do so, to make private financial provision for the current and future care and accommodation needs of their family member with severe disability.

Disability Support Pension is an income support payment for people who are unable to adequately support themselves through work due to a permanent physical, intellectual or psychiatric impairment.

As part of the Building Australia's Future Workforce package, measures announced in this Budget are aimed at improving support for Australians with disability to help them into work where possible, while continuing to provide an essential safety net for Australians who are unable to work to fully support themselves.

From 1 July 2012 Disability Support Pension recipients under age 35 with the capacity to work eight or more hours a week will be required to attend regular participation interviews with Centrelink to develop participation plans, tailored to their individual circumstances. Depending on people's individual circumstances, participation plans could involve working with employment services to improve job readiness, searching for employment, undertaking training, volunteering or rehabilitation.

From 1 July 2012, Disability Support Pension recipients granted on or after 11 May 2005 will be able to work up to 30 hours a week continuously for up to two years without their payment being cancelled or suspended. They will be able to receive a part pension while they work, subject to income-testing arrangements. This will allow them to test whether they can work more hours without fear of losing their pension.

The start of a key component of the measure Job Capacity Assessment – more accurate and efficient assessments for DSP and employment services announced in the 2010–11 Budget is being brought forward from 1 January 2012 to 3 September 2011. This will help ensure assessments for the Disability Support Pension support people with disability into employment.

From 1 July 2012 the medical and allied health professionals in the Centrelink Health Professional Advice Unit will audit a sample of Disability Support Pension new claim assessments to test whether Job Capacity Assessors and Centrelink Customer Service Advisers are interpreting and applying the evidence and the rules consistently, and whether there are deficiencies in the process. This will help to improve the quality of assessments.

From 1 July 2012, people receiving Disability Support Pension who have a permanent disability and no future work capacity, will be able to travel overseas for more than 13 weeks while retaining access to their pension. In addition, Disability Support Pension recipients who are severely disabled and are required to accompany a family member who has been posted overseas by their Australian employer will be entitled to continue to receive their pension for the period of the family member's posting.

The 2011–12 Budget commits additional funding to Australian Disability Enterprises. This measure recognises the value of long-term investment in programs that provide support and dignity to the most vulnerable members of the community. It will provide future certainty for those Australians, and assist them to maintain their participation in society.

The National Disability Strategy was endorsed by COAG in February 2011 and launched in March 2011. The Productivity Commission has provided a draft report on its inquiry into a national long-term care and support scheme for people with disability. The Commission is due to provide its final report to the Government by the end of July 2011.

Reform of the disability services sector is continuing, and FaHCSIA is working closely with state and territory governments on 10 key priority areas under the National Disability Agreement. The National Disability Strategy sets out a 10-year reform plan for all governments to address the barriers faced by Australians with disability and will ensure that mainstream services and programs including health care, housing, transport and education address the needs of people with disability.

The Government has allocated $60 million over three years to build innovative, community-based supported accommodation places for people with disability. This funding will go towards addressing the shortfall in supported accommodation places and respite for people with disability and their carers and families.

The Better Start for Children with Disability initiative funded in this Budget provides funding for early intervention services for children with a broader range of disabilities. This initiative will help reduce the financial burden on parents and carers of children with disability and make vital early intervention services more affordable and accessible.

An additional $28.7 million over two years is also being provided to meet demand in the successful Helping Children with Autism program.

Outcome 5 expense statement

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


Table 2.5: Budgeted expenses for Outcome 5
Outcome 5: Disability and Carers

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 5.1: Targeted Community Care    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 141,428 151,498
Departmental expenses    
Departmental appropriation 1 10,846 11,328
Expenses not requiring appropriation in the Budget year 2 1,106 1,060
Subtotal for Program 5.1 153,380 163,886
Program 5.2: Disability Support Pension    
Administered expenses    
Special Appropriations 13,296,965 13,851,107
Departmental expenses    
Departmental appropriation 1 13,973 14,489
Expenses not requiring appropriation in the Budget year 2 1,426 1,355
Subtotal for Program 5.2 13,312,364 13,866,951
Program 5.3: Income Support for Carers    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 2,800 2,800
Special Appropriations 5,109,808 5,679,486
Departmental expenses    
Departmental appropriation 1 10,627 10,683
Expenses not requiring appropriation in the Budget year 2 1,084 998
Subtotal for Program 5.3 5,124,319 5,693,967
Program 5.4: Services and Support for People with Disability    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 321,763 383,152
Special Accounts 577 1,000
Departmental expenses    
Departmental appropriation 1 37,977 39,303
Expenses not requiring appropriation in the Budget year 2 3,886 3,687
Subtotal for Program 5.4 364,203 427,142
Program 5.5: Support for Carers    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 11,312 11,482
Departmental expenses    
Departmental appropriation 1 8,197 8,105
Expenses not requiring appropriation in the Budget year 2 838 759
Subtotal for Program 5.5 20,347 20,346
Outcome 5 totals by appropriation type:    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 477,303 548,932
Special Appropriations 18,406,773 19,530,593
Special Accounts 577 1,000
Departmental expenses    
Departmental appropriation 1 81,620 83,908
Expenses not requiring appropriation in the Budget year 2 8,340 7,859
Total expenses for Outcome 5 18,974,613 20,172,292
  2010–11 2011–12
Average Staffing Level (number) 494 514

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 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources s. 31'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Contributions to Outcome 5

Program 5.1: Targeted Community Care
Program 5.1 objective

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

Program component objectives
Mental Health

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

Program 5.1 expenses

The increase in program expenses across the forward years reflects the expansion of community mental health initiatives to assist people with severe mental illness and their families and carers.


Table 2.5.1: Budgeted expenses for Targeted Community Care
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Mental Health B1 141,428 151,498 182,905 212,497 227,648
Program support   10,846 11,328 12,603 12,743 11,720
Expenses not requiring appropriation in the Budget year 1   1,106 1,060 1,261 1,139 1,044
Total program expenses   153,380 163,886 196,769 226,379 240,412

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 5.1 deliverables
Mental Health
  • Number of clients, carers or family members whose lives are affected by mental illness accessing support services


Mental Health deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of clients, carers or family members whose lives are affected by mental illness accessing support services

-

49,000

58,000

61,000

64,000

Program 5.1 key performance indicators
Mental Health
  • Percentage and number of registered participants maintaining progress against relevant goals26
  • Percentage and number of clients who report that they are satisfied that the service they received was appropriate to their needs
  • Percentage and number of clients from Indigenous backgrounds
  • Percentage and number of clients from and culturally and linguistically diverse backgrounds


Mental Health key performance indicators targets
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Percentage and number of clients from Indigenous backgrounds

 

5%, 2,400

5%, 2,800

5%, 3,000

5%, 3,100

Percentage and number of clients from culturally and linguistically diverse backgrounds

-

14%, 6,800

14%, 8,000

14%, 8,500

14%, 8,900

Program 5.2: Disability Support Pension
Program 5.2 objective

To make payments to eligible people with disability who are unable to support themselves to achieve financial independence.

Program 5.2 has no program components.

Linked to: For further information on this program, refer to the DHS 2011-12 PB Statements.

Program 5.2 expenses

The increase in program expenses across the forward years reflects projected changes in the economy, customer trends, indexation parameters and the impact of policy initiatives.


Table 2.5.2: Budgeted expenses for Disability Support Pension
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Special Appropriations:          
Social Security (Administration) Act 1999        
Disability Support Pension 13,296,965 13,851,107 14,384,611 14,869,356 15,473,877
Program support 13,973 14,489 12,156 12,078 11,442
Expenses not requiring appropriation in the Budget year 1 1,426 1,355 1,204 1,067 1,009
Total program expenses 13,312,364 13,866,951 14,397,971 14,882,501 15,486,328

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 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 5.2 deliverables
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
Program 5.2 key performance indicators
Disability Support Pension (DSP)
  • Duration on payment
  • Percentage and number of recipients reporting employment income
  • Percentage and number of recipients on part rate due to the income and assets test27
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Agreements are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
  • Percentage and number of estimated population of people with disability who receive payment28
  • Percentage and number of DSP population as proportion of the total Australian working-age population29
Program 5.3: Income Support for Carers
Program 5.3 objective

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

Program component objectives
Carer Payment

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

Carer Allowance (Adult)

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

Carer Allowance (Child)

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

Carer Supplement

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

Child Disability Assistance Payment

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

Carer Adjustment Payment – Ex gratia payments to unsuccessful applicants of Carer Payment (Child)

To make one-off payments to families not eligible for income support where, following a catastrophic event involving a child aged 0 to 6 years, the family is going through a period of significant adjustment as a result of the care needs of the child.

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.

Linked to: As of 1 July Personal benefits payments under this program will be delivered by DHS.

Program 5.3 expenses

The increase in program expenses across the forward years reflects projected changes in the economy, customer trends, indexation parameters and the impact of policy and program initiatives.

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


Table 2.5.3: Budgeted expenses for Income Support for Carers
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Ex-Gratia Payments to Unsuccessful            
Applicants of Carer Payment (Child) B1 2,800 2,800 - - -
Special Appropriations:            
Social Security (Administration) Act 1999            
Carer Allowance (Adult)   1,148,127 1,258,671 1,381,114 1,517,890 1,663,380
Carer Allowance (Child)   452,828 484,396 517,156 553,396 589,691
Carer Payment   2,730,717 3,146,150 3,648,159 4,174,493 4,759,619
Carer Supplement   452,940 485,352 512,480 548,334 576,904
Child Disability Assistance Payment   160,455 166,892 173,110 180,318 185,749
Wife Pension (DSP)   164,741 138,025 115,235 95,759 87,734
Program support   10,627 10,683 7,101 7,273 8,520
Expenses not requiring appropriation in            
the Budget year 1   1,084 998 694 635 750
Total program expenses   5,124,319 5,693,967 6,355,049 7,078,098 7,872,347

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 5.3 deliverables
  • Payments are made through Centrelink to eligible claimants under the provisions of social security law.
  • Ex gratia payments to unsuccessful applicants for Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the FMA Act.
Program 5.3 key performance indicators
Carer Allowance (Adult and Child)
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that the requirements are fulfilled under agreements with service delivery agencies
  • Percentage and number of primary carers who are receiving payment30
Carer Payment
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Agreements are in place with all service delivery agencies
  • Strategies are in place to ensure that the requirements are fulfilled under agreements with service delivery agencies
  • Percentage and number of primary carers who are receiving payment
  • Percentage and number of recipients reporting employment income
  • Percentage and number of recipients on part rate due to the income and assets test31
Child Disability Assistance Payment
  • Number of recipients
  • Administered outlays
  • Payment accuracy
Wife Pension (DSP)
  • Number of recipients
  • Administered outlays
  • Payment accuracy
  • Percentage and number of recipients reporting employment income
  • Percentage and number of recipients on part rate due to the income and assets test32
  • Ratio of current number of Wife Pension (DSP) recipients to the number of Wife Pension (DSP) recipients at 1 July 1995
Carer Supplement
  • Number of recipients
  • Administered outlays
  • Payment accuracy
Program 5.4: Services and Support for People with Disability
Program 5.4 objective

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

Program component objectives
Services for People with Disability

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

Program 5.4 expenses

The changes in program expenses across the forward years reflect projected changes in indexation parameters and the impact of policy initiatives. The key new initiatives are:

  • A Better Start for Children with Disability – Early Intervention
  • Supported Accommodation for People with Disability, which ends in 2013–14.

In addition to this, the estimates for 2010–11 and 2011–12 are affected by the movement of $5 million between years.


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

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Services for People with Disability B1 321,556 339,532 346,807 351,142 317,623
Helping Children with Autism Early Intervention1 B1 - 43,620 28,832 29,219 29,582
Ex-Gratia Payments - Australian Thalidomide victims B1 207 - - - -
Special Account expenses:            
National Disability Agreement Special Account 567 1,000 3,250 3,250 -
Other Services - Services for Other Entities and Trust Moneys 10 - - - -
Program support   37,977 39,303 44,932 45,752 40,073
Expenses not requiring appropriation in the Budget year 2   3,886 3,687 4,511 4,102 3,578
Total program expenses   364,203 427,142 428,332 433,465 390,856

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).

1 2010-11 Budget for Helping Children with Autism Early Intervention is included under Services for People with Disability.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 5.4 deliverables
  • Number of children with disability, including autism, receiving support services33
  • Number of supported employees assisted by supported employment services
  • Number of people with disability provided with direct advocacy support
  • Number of carers of people with severe or profound disability assisted with short-term or immediate respite
  • Number of clients receiving Outside School Hours Care for Teenagers with Disability services34


Services and Support for People with Disability deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of children with disability, including children with autism, receiving support services

-

12,400

12,400

12,400

12,400

Number of supported employees assisted by supported employment services

 

22,500

22,500

22,500

22,500

Number of carers of people with severe or profound disability assisted with short-term or immediate respite

-

5,500

5,500

5,500

5,500

Number of clients receiving Outside School Hours Care for Teenagers with Disability Services

-

1,800

1,800

1,800

1,800

Program 5.4 key performance indicators
  • Number of supported employees who achieve an employment outcome (at least eight hours per week for at least 13 weeks from commencement in a supported employment place)
  • Percentage and number of individuals, parents and carers who report that they were assisted to access choices and options that enabled them to manage their needs
  • Percentage and number of supported employees/clients likely to have reduced reliance on income support payments (sufficient income to affect DSP)
  • Percentage and number of clients from Indigenous and culturally and linguistically diverse backgrounds
  • Percentage and number of clients reporting that the services received were appropriate to their needs as parents/carers
Program 5.5: Support for Carers
Program 5.5 objective

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

Program 5.5 has no program components.

Program 5.5 expenses

The increase in program expenses over the forward estimates reflects projected changes in indexation parameters.


Table 2.5.5: Budgeted expenses for Support for Carers
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Support for Carers B1 11,312 11,482 11,664 11,851 12,076
Program support   8,197 8,105 8,574 8,875 7,735
Expenses not requiring appropriation in the Budget year 1   838 759 857 793 688
Total program expenses   20,347 20,346 21,095 21,519 20,499

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 5.5 deliverables35
Support for Carers
  • Number of young carers at risk of not completing secondary education assisted with respite services
  • Number of parents and carers assisted by MyTime peer support groups


Support for Carers deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of young carers at risk of not completing secondary education assisted with respite services

-

3,500

3,500

3,500

3,500

Number of parents and carers assisted by MyTime peer support groups

-

3,000

3,000

3,000

3,000

Program 5.5 key performance indicators
Support for Carers
  • Percentage and number of clients from Indigenous and culturally and linguistically diverse backgrounds
  • Percentage of clients satisfied that the services they received were appropriate to their needs as carers
Outcome 6: Women

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

Outcome 6 strategy

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

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

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

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

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

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

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

Outcome 6 expense statement

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


Table 2.6: Budgeted expenses for Outcome 6
Outcome 6: Women

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 6.1: Gender Equality for Women    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 23,150 33,891
Special Accounts 10 -
Departmental expenses    
Departmental appropriation 1 13,906 14,551
Expenses not requiring appropriation in the Budget year 2 1,423 1,365
Subtotal for Program 6.1 38,489 49,807
Outcome 6 totals by appropriation type:    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 23,150 33,891
Special Accounts 10 -
Departmental expenses    
Departmental appropriation 1 13,906 14,551
Expenses not requiring appropriation in the Budget year 2 1,423 1,365
Total expenses for Outcome 6 38,489 49,807
  2010–11 2011–12
Average Staffing Level (number) 93 98

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 Departmental Appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources s. 31'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Contributions to Outcome 6

Program 6.1: Gender Equality for Women
Program 6.1 objective

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

Program component objectives
Gender Equality for Women

To implement strategies in priority areas to achieve gender equality.

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

To manage expenditure in connection with services performed on behalf of other governments and bodies that are not agencies subject to the FMA Act, including the Commonwealth, State, Territory and New Zealand Ministers' Conference on the Status of Women.

Program 6.1 expenses

The change in program expenses across the forward years reflects projected changes in indexation parameters and the impact of policy initiatives.

The key initiatives are the Extension and Expansion of the 1800 National online service, Strategic Leadership Projects which ends in 2012–13, and the National Centre of Excellence.

In addition to this, the estimates for 2010–11 and 2011–12 are effected by a movement of funds of $1.9 million from 2010–11 to 2011–12 for the National Plan to Reduce Violence against Women and Children.


Table 2.6.1: Budgeted expenses for Gender Equality for Women
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Gender Equality for Women B1 23,150 33,891 27,177 31,845 29,832
Special Account expenses:            
Other Services - Services for Other Entities and Trust Moneys 10 - - - -
Program support   13,906 14,551 14,636 14,568 13,177
Expenses not requiring appropriation in the Budget year 1   1,423 1,365 1,464 1,300 1,172
Total program expenses   38,489 49,807 43,277 47,713 44,181

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 6.1 deliverables
  • Number of individuals contacting Helpline programs


Gender Equality for Women deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of individuals contacting Helpline programs

-

20,000

20,000

20,000

20,000

Program 6.1 key performance indicators
Gender Equality for Women
  • Percentage and number of women representatives on Australian government boards
  • Assessment by stakeholders of the contribution of the Office for Women to national debates affecting gender equality
  • Percentage and number of women contacting the national online and 1800 service
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 the lead agency responsible for coordinating whole-of-government commitments to close the gap in Indigenous disadvantage and provides whole-of- government leadership, coordination and policy advice.

The National Indigenous Reform Agreement, agreed by COAG in November 2008, frames the commitments made by all governments to work with Indigenous communities to provide better outcomes for Indigenous Australians in seven key areas, or Building Blocks: Early Childhood; Schooling; Health; Economic Participation; Healthy Homes; Safe Communities; and Governance and Leadership.

FaHCSIA works closely with other Commonwealth departments and state and territory governments to oversee the operation of the agreement and, specifically, to drive the implementation of three Indigenous-specific National Partnership agreements:

  • the National Partnership Agreement on Remote Service Delivery
  • the National Partnership Agreement on Remote Indigenous Housing
  • the National Partnership Agreement on Closing the Gap in the Northern Territory.

In fulfilling its role as lead agency on Closing the Gap on Indigenous disadvantage, FaHCSIA has established a number of arrangements to promote close cooperation between agencies who are partners in this important work. Commonwealth agencies including the Department of Education, Employment and Workplace Relations, the Department of Health and Ageing, the Department of Human Services, Centrelink and others meet regularly to coordinate strategies across Australian Government agencies to implement the National Indigenous Reform Agreement. Multilateral engagement is facilitated through the Working Group on Indigenous Reform, which includes representatives from the states and territories and reports directly to COAG.

In addition, FaHCSIA is working to ensure services delivered under mainstream National Partnership agreements are accessible to Indigenous Australians, as set out in the National Urban and Regional Service Delivery Strategy for Indigenous Australians, agreed by COAG in July 2009.

FaHCSIA is supporting the National Congress of Australia's First Peoples (the Congress) in the lead up to its inaugural meeting in July 2011, helping to enable the Congress to provide robust policy advice that is reflective of its membership.

FaHCSIA provides secretariat support to an expert panel, established by government, to provide options for constitutional change to recognise Indigenous Australians. The expert panel will report on possible options for constitutional change to the Government by December 2011.

FaHCSIA's national network of state offices, Regional Operations Centres and Indigenous Coordination Centres engages with Indigenous people and communities to build partnerships, support greater personal responsibility and better coordinate service delivery.

FaHCSIA delivers a range of initiatives that empower Indigenous people to access and participate in the wider economy. It also provides Indigenous leadership training and capability development to Indigenous people and communities throughout Australia.

FaHCSIA supports Indigenous rights to land recognised or provided for through Commonwealth land rights legislation and provides representation and assistance for native title holders through a network of funded native title representative bodies and native title service providers.

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

The 2011-12 Budget extends the current trial of welfare reform in Cape York until 31 December 2012. To ensure the trial builds on early successes and continues to meet the needs of local people, the Queensland Government will lead a process of consultation with Cape York communities on the extension. The extension will build on partnerships established with the Queensland Government, the Cape York Institute for Policy and Leadership, regional organisations and local Indigenous communities.

Indigenous people will also benefit from the expansion of the Personal Helpers and Mentors (PHaMS) respite service under Outcome 5 – Disability and Carers. Funding is being provided in this Budget for an additional 425 new community mental health workers. These PHaMS will work one on one to assist an additional 3,400 people with severe mental illness including 1,200 people with mental illness who have been referred to employment services to move into work. Along with services around Australia that are accessible to Indigenous people, PHaMS delivers specialist remote services that have a strong focus on cultural, mental and physical healing for Indigenous people.

Outcome 7 expense statement

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


Table 2.7: Budgeted expenses for Outcome 7
Outcome 7: Indigenous

2010–11
Estimated actual expenses
$'000

2011–12
Estimated expenses
$'000
Program 7.1: Economic Development and Participation    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 284,753 249,110
Departmental expenses    
Departmental appropriation 1 44,190 45,259
Expenses not requiring appropriation in the Budget year 2 4,266 4,011
Subtotal for Program 7.1 333,209 298,380
Program 7.2: Indigenous Housing and Infrastructure    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 148,651 106,843
Special Accounts 226 -
Departmental expenses    
Departmental appropriation 1 32,466 31,701
Expenses not requiring appropriation in the Budget year 2 3,245 5,117
Subtotal for Program 7.2 184,588 143,661
Program 7.3: Native Title and Land Rights    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 76,525 84,258
Departmental expenses    
Departmental appropriation 1 6,697 6,716
Expenses not requiring appropriation in the Budget year 2 661 607
Subtotal for Program 7.3 83,883 91,581
Program 7.4: Indigenous Capability and Development    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 69,254 73,348
Special Appropriations 164,543 178,989
Special Accounts 215,079 262,629
Departmental expenses    
Departmental appropriation 1 92,674 91,804
Expenses not requiring appropriation in the Budget year 2 9,157 8,300
Subtotal for Program 7.4 550,707 615,070
Program 7.5: Closing the Gap in the Northern Territory    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 22,301 22,349
Special Appropriations 4,000 2,560
Departmental expenses    
Departmental appropriation 1 85,654 84,637
Expenses not requiring appropriation in the Budget year 2 8,557 7,736
Subtotal for Program 7.5 120,512 117,282
Outcome 7 totals by appropriation type:    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 601,484 535,908
Special Appropriations 168,543 181,549
Special Accounts 215,305 262,629
Departmental expenses    
Departmental appropriation 1 261,681 260,117
Expenses not requiring appropriation in the Budget year 2 25,886 25,771
Total expenses for Outcome 7 1,272,899 1,265,974
  2010–11 2011–12
Average Staffing Level (number) 944 944

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 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and Revenue from independent sources s. 31'.

2 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Contributions to Outcome 7

Program 7.1: Economic Development and Participation
Program 7.1 objective

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

Program component objectives
Community Development Employment Projects (CDEP )Program

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

Linked to: The Community Development Employment Projects (CDEP) Program works in tandem with Job Services Australia and the Indigenous Employment Program. Payments under the National Partnership Agreement on Indigenous Economic Participation are made by the Treasury. For information about those payments, refer to the Treasury's 2011–12 PB Statements and Budget Paper No. 3, Australia's Federal Relations 2011–12.

For further information on this program, refer the DEEWR 2011-12 PB Statements.

Program 7.1 expenses

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

  • from 2011–12 funds formerly allocated from the Indigenous Employment Special Account to be fully appropriated directly to contributing agencies
  • revised funding in 2011–12 and 2012–13 for the Community Development and Employment Projects program.


Table 2.7.1: Budgeted expenses for Economic Development and Participation
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Community Development Employment Projects Program B1 284,753 249,110 181,498 187,182 191,513
Program support   44,190 45,259 52,156 58,030 67,686
Expenses not requiring appropriation in the Budget year 1   4,266 4,011 4,986 4,554 5,443
Total program expenses   333,209 298,380 238,640 249,766 264,642

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 7.1 deliverables
  • Number of Community Development Projects
  • Number of Work Readiness Services
Program 7.1 key performance indicators
  • Percentage of the Community Action Plans that are progressing on schedule to meet community development goals for CDEP by 30 June 2012
  • Percentage and number of CDEP participants who have commenced non-accredited training
  • Percentage and number of CDEP participants who have commenced and completed accredited training
  • Percentage and number of CDEP participants who commenced work experience and remained in continued work experience for 13 weeks or more36
  • Percentage and number of CDEP participants who commenced off-CDEP employment
  • Percentage and number of CDEP participants who commenced off-CDEP employment and who remained in continued employment for 13 weeks or more


Economic Development and Participation key performance indicators targets
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Percentage of the Community Action Plans that are progressing on schedule to meet community development goals for CDEP by 30 June 2012

-

85%

-

-

-

Program 7.2: Indigenous Housing and Infrastructure
Program 7.2 objective

To improve the quality and supply of Indigenous housing and infrastructure in remote communities.

Program component objectives
Remote Indigenous Housing

To deliver programs and projects that are supplementary to the National Partnership Agreement on Remote Indigenous Housing, including the Army Aboriginal Community Assistance Program, Indigenous Mothers' Accommodation Fund, remote Indigenous housing- and infrastructure-related research and other infrastructure projects. In addition, funding is provided for delivery of some municipal and essential services to Indigenous communities under existing arrangements pending the implementation of revised arrangements for roles, responsibilities and funding across governments as agreed under the National Partnership Agreement on Remote Indigenous Housing.

Indigenous Boarding Hostels Partnerships

To provide funding to establish student accommodation for Indigenous young people from remote areas.

Payments under the National Partnership Agreement on Remote Indigenous Housing, the National Partnership Agreement on Homelessness, the National Partnership Agreement on Social Housing and the National Affordable Housing Agreement are made by the Treasury. For information about those payments, refer to the Treasury's 2011–12 PB Statements and Budget Paper No. 3, Australia's Federal Relations 2011–12.

Program 7.2 expenses

The changes in program expenses across the forward years reflect projected changes in indexation parameters, the completion of the projects under the Indigenous Boarding Hostels Partnerships and Remote Indigenous Housing programs and the commitment under the National Partnership Agreement on Remote Indigenous Housing to work with jurisdictions towards clearer roles, responsibilities and funding for municipal and essential services with implementation of new arrangements from 1 July 2012.


Table 2.7.2: Budgeted expenses for Indigenous Housing and Infrastructure
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Remote Indigenous Housing B1 124,327 101,843 63,884 65,386 66,118
Indigenous Boarding Hostels Partnerships B1 24,324 5,000 - - -
Special Account expenses:            
Other Services - Services for Other Entities and Trust Moneys 226 - - - -
Program support   32,466 31,701 30,543 31,382 28,609
Expenses not requiring appropriation in the Budget year 1   3,245 5,117 2,968 2,727 2,471
Total program expenses   184,588 143,661 97,395 99,495 97,198

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation, Makegood Expenses and transfer of Bidjara assets to the Queensland Government.

Program 7.2 deliverables
National Programs and Projects
  • Number of hostel beds for Indigenous students made available to a hostel operator by 30 June 201237
  • Number of hostel beds for Indigenous mothers made available to a hostel operator by 30 June 201237
  • Number of communities receiving municipal and essential services funded by the Commonwealth38


National Programs and Projects deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of hostel beds for Indigenous students made available to a hostel operator by 30 June 2012

-

120

-

-

-

Number of hostel beds for Indigenous mothers made available to a hostel operator by 30 June 2012

-

16

-

-

-

COAG

This program also contributes to the objectives of the National Partnership Agreement on Remote Indigenous Housing.

Program 7.2 key performance indicators39
National programs and projects
  • Percentage and number of new hostel construction projects for Indigenous students that met specified project objectives40
  • Percentage and number of new hostel construction projects for Indigenous mothers that met specified project objectives
Program 7.3: Native Title and Land Rights
Program 7.3 objective

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

Program component objectives
Native Title

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

Land Rights

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

Linked to: For other Commonwealth expenditure on the native title system, see AGD's 2011–12 PB Statements.

Program 7.3 expenses

The increase in program expenses across the forward years reflect projected changes in indexation parameters and the impact of policy initiatives, in particular, the effect of the Native Title System – Additional Funding measure announced in 2009–10 Budget.


Table 2.7.3: Budgeted expenses for Native Title and Land Rights
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Native Title and Land Rights B1 76,525 84,258 86,955 88,597 90,368
Program support   6,697 6,716 7,138 7,382 6,986
Expenses not requiring appropriation in the Budget year 1   661 607 691 639 602
Total program expenses   83,883 91,581 94,784 96,618 97,956

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 7.3 deliverables

Deliverables cannot be forecast over the forward years as services under this program are demand driven, and completion rates are determined in a complex interaction with other stakeholders, often with conflicting interests.

Program 7.3 key performance indicators
Native Title
  • Proportion of Native Title claims progressed
  • Proportion of Native Title claims concluded
  • Number of future act agreements progressed and concluded
Program 7.4: Indigenous Capability and Development
Program 7.4 objective

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

Program component objectives
Aboriginal and Torres Strait Islander Land Account

To provide a secure and ongoing source of funds to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal persons and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base. On 20 June 2010 the Aboriginal and Torres Strait Islander Act 2005 was amended to provide a minimum guaranteed annual payment of $45.0 million to the Indigenous Land Corporation from 1 July 2010. This payment will be indexed for later years by the consumer price index.

Aboriginals Benefit Account (Special Appropriation)

To administer statutory royalty equivalent monies calculated from royalties paid to Government from mining on Aboriginal land in the Northern Territory under the Aboriginal Land Rights (Northern Territory) Act 1976, consistent with the FMA Act.

Constitutional Recognition

To provide secretariat support to the Government appointed Expert Panel on Constitutional Recognition of Indigenous Australians. The Expert Panel will lead national public consultation and report to the Government by December 2011 on options for Constitutional change.

Flexible Funding

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

Indigenous Capability and Development

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

Ranger Agreement

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

Registrar of Indigenous Corporations

To register, regulate and provide services that address the specific needs of Aboriginal and Torres Strait Islander corporations in improving their corporate governance.

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

Linked to: Program 7.5 Closing the Gap in the Northern Territory.

Linked to: DHA's Program 8.1 Aboriginal and Torres Strait Islander Health. For more information about this program refer to DHA's 2011–12 PB Statements.

Program 7.4 expenses

The changes in program expenses across the forward years reflect projected changes in indexation parameters and the impact of policy initiatives. The major policy initiatives affecting program estimates are:

  • Reconciliation Australia, which is provided with $10.8 million over three years from 2010-11
  • Indigenous Healing Foundation, which is provided with $26.6 million over four years from 2009-10
  • Indigenous Communities Strategic Investment program which provides $46.0 million over three years from 2010-11.

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

Funding for the Indigenous Communities Strategic Investment (ICSI) includes the appropriations for the extension of the Cape York Welfare Reform Trial, which is funded from 2011-12 to the end of December 2012, as well as the Remote Service Delivery Flexible Funding Pool, which is funded from 2010-11 to 2012-13.


Table 2.7.4: Budgeted expenses for Indigenous Capability and Development
 
 

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Breaking the Cycle of Drug and Alcohol Abuse in Indigenous Communities B1 - 5,435 6,569 6,686 -
Indigenous Capability and Development B1 51,762 49,684 49,183 43,609 47,217
Indigenous Healing Foundation B1 7,658 7,834 4,857 - -
Reconciliation Australia B1 3,600 3,600 3,600 - -
National Aboriginal and Torres Strait Islander Representative Body B1 6,234 6,795 8,341 4,911 -
Special Appropriations:            
Aboriginal Land Rights (Northern Territory) Act 1976        
Aboriginals Benefit Account            
Special Appropriation   164,343 178,789 184,564 187,125 177,426
Ranger Agreement   200 200 200 200 200
Special Account expenses:            
Aboriginals Benefit Account Special Account 161,652 188,402 196,284 193,241 193,501
Aboriginal and Torres Strait Islander Land Fund 45,000 46,215 47,509 48,887 50,158
Indigenous Communities Strategic Investment 833 - - - -
Indigenous Remote Service Delivery   7,000 27,262 12,000 - -
Aboriginal Torres Strait Islander Corporations Unclaimed Money Account 83 - - - -
Other Services - Services for Other Entities and Trust Moneys 511 750 750 835 -
Program support   92,674 91,804 112,231 115,417 109,065
Expenses not requiring appropriation in the Budget year 1   9,157 8,300 10,955 10,073 9,487
Total program expenses   550,707 615,070 637,043 610,984 587,054

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 7.4 deliverables
Indigenous Capability and Development
  • Number of Indigenous people who participated in supported leadership activities
  • Number of Indigenous Women's Leadership activities
  • Number of Indigenous leadership development activities in priority communities under the National Partnership Agreement on Remote Service Delivery
  • Number of Indigenous leadership development activities held in locations other than priority communities under the National Partnership Agreement on Remote Service Delivery, including national, place-based and targeted workshops
Flexible Funding
  • Number of flexible funding projects
Registrar of Indigenous Corporations
  • Number of participants in corporate governance capacity development programs


Indigenous Capability Development deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of Indigenous Women's Leadership activities

-

70

70

70

70

Program 7.4 key performance indicators
Indigenous Capability and Development
  • Percentage and number of participants in Indigenous leadership programs who reported that they benefited from increased knowledge, skills and capabilities gained from their participation40
  • Percentage and number of participants in Indigenous Women's programs who reported that they benefited from involvement in an Indigenous Womens project41
Flexible Funding
  • Percentage and number of flexible funding projects that have met specified project objectives
Registrar of Indigenous Corporations
  • Percentage and number of Aboriginal and Torres Strait Islander corporations that are compliant with reporting requirements under the Corporations (Aboriginal and Torres Strait Islander) Act 2006
  • Percentage and number of participants in corporate governance capacity development programs who have reported a significant increase in corporate governance knowledge and skills
  • Percentage and number of clients satisfied that the services provided met their needs
Program 7.5: Closing the Gap in the Northern Territory
Program 7.5 objective

FaHCSIA, in partnership with the Northern Territory, provides whole-of-government policy coordination and implementation of targeted measures, in partnership with the Northern Territory Government, in relation to the National Partnership Agreement on Closing the Gap. The agreement aims to protect women and children, improve community capacity and provide sustainable community development in prescribed communities.

FaHCSIA Program component objectives

Family Support Package

The Family Support Package provides a coordinated response to Indigenous family violence in a number of Northern Territory communities to protect Indigenous children and families from abuse and violence. The three components of the package are safe places, mobile child protection teams and remote Aboriginal and family community workers.

Youth in Communities

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

Community Stores

To improve the governance and operations of remote community stores with a particular focus on improving reliable access to healthy and affordable food.

Substance Abuse

To contribute to the protection of women and children, reduce violence and associated alcohol and substance abuse and promote personal responsibility and community norms.

Resetting the Relationship

To strengthen Indigenous leadership and governance capacity of community members and organisations in the Northern Territory.

Linked to:

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

Welfare reform is delivered under Program 3.1: Financial Management.

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

The Petrol Sniffing Strategy funded under the Combating Petrol Sniffing Measure of Program 7.4: Indigenous Capability and Development.

The election commitment on alcohol and substance abuse is funded through the Breaking the Cycle of Drug and Alcohol Abuse measure in Program 7.4: Indigenous Capability and Development.

Payments under the National Partnership Agreement on Closing the Gap in the Northern Territory are made by the Treasury. For information about those payments, refer to the Treasury's 2011–12 PB Statements and Budget Paper No. 3, Australia's Federal Relations 2011–12.

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

Program 7.5 expenses

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

The reduction in program expenses in 2012-13 reflects the expiry of the five year leases on 17 August 2012, and therefore payments will be for a shorter period (1 July to 17 August 2012) and the cessation of the Northern Territory Emergency Response measure in 2011-12.


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

2010–11
Revised budget
$'000

2011–12
Budget
$'000

2012–13
Forward year 1
$'000

2013–14
Forward year 2
$'000

2014–15
Forward year 3
$'000
Annual administered expenses:            
Northern Territory Emergency            
Response B1 22,301 22,349 - - -
Special Appropriations:            
Northern Territory National Emergency Response Act 2007        
Lease Payments to Traditional Owners of Land 4,000 2,560 405 - -
Program support   85,654 84,637 7,070 - -
Expenses not requiring appropriation in the Budget year 1   8,557 7,736 238 - -
Total program expenses   120,512 117,282 7,713 - -

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).

1 'Expenses not requiring appropriation in the Budget year' is made up of Depreciation, Amortisation and Makegood Expenses.

Program 7.5 deliverables
Family Support Package
  • Number of priority communities with improved access to family support services through the provision of a Remote Aboriginal Family and Community Worker presence over 12 months
  • Number of cases in which the Mobile Child Protection team participates over 12 months
  • Number of Safe Place facilities operating in priority communities over 12 months
Youth in Communities
  • Number of youth workers employed in priority communities
  • Number of facilities made available for providing youth services and activities
Community Stores
  • Number of community stores licensed
Resetting the Relationship
  • Number of workshops and supported activities
  • Number of organisations and/or groups engaged through workshops and supported activities
  • Number of people and organisations attending workshops reporting an increase in capacity to engage with government
Substance Abuse
  • Number of substance abuse projects


Family Support Package deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of priority communities with improved access to family support services through the provision of a Remote Aboriginal Family and Community Worker presence over 12 months

-

13

-

-

-

Number of cases in which the Mobile Child Protection team participates over 12 months

-

1,800

-

-

-

Number of Safe Place facilities operating in priority communities over 12 months

-

20

-

-

-

Program 7.5 key performance indicators

Closing the Gap in the Northern Territory

Family Support Package
  • Percentage of services that achieve key delivery requirements
Youth in Communities
  • Percentage and number of priority funded communities with improved access to youth services42
  • Percentage and number of priority communities where improved facilities are made available for providing youth services and activities
  • Percentage and number of prescribed communities served by a licensed store
Resetting the Relationship
  • Number of communities and projects supported through leadership and governance activity
Substance Abuse
  • Percentage and number of substance abuse projects that have met specified project objectives

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 2011–12 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

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


Table 3.1.1: Movement of administered funds between years
 

2010–11

$'000

2011–12

$'000

2012–13

$'000

2013–14

$'000

2014–15

$'000
Outcome 1:          
1.1 Family Support -2,105 2,105 - - -
To partially fund the continuation of services and transitional arrangements in Exceptional Circumstances areas in 2011-12.          
Outcome 3:          
3.1 Financial Management -1,500 1,500 - - -
Extended timeframes for trials and research into problem gambling.          
Outcome 5:          
5.4 Services and Support for People with Disability -5,000 5,000 - - -
Unforseeable delays in implementing key intiatives          
Outcome 6:          
6.1 Gender Equality for Women -1,900 1,900 - - -
Delays achieving agreement with key stakeholders          
Total movement of administered funds -10,505 10,505 - - -

1 Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in funds.

3.1.2 Special accounts

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


Table 3.1.2: Estimates of special account flows and balances
 
Outcome
Opening balance
2011–12

2010–11


$'000
Receipts
2011–12

2010–11


$'000
Payments
2011–12

2010–11


$'000
Adjustments
2011–12

2010–11


$'000
Closing balance
2011–12

2010–11


$'000
Outcome 1            
Financial Management and Accountability Act 1997
(s. 20)
           
Social Security - Services for Other Entities and Trust Moneys (A) 1.1 - 250 (250) - -
    - 276 (276) - -
Outcome 2            
Financial Management and Accountability Act 1997
(s. 20)
           
SAAP Data and Program Evaluation Fund Special Account (A) 2.1 - - - - -
    38 - (34) (4) -
Outcome 5            
Financial Management and Accountability Act 1997
(s. 20)
           
National Disability Special Account (A) 5.4 6,832 1,000 (1,000) - 6,832
    6,340 1,059 (567) - 6,832
Other Services - Services for Other Entities and Trust Moneys (A) 5.4 - - - - -
    10 - (10) - -
Outcome 6            
Financial Management and Accountability Act 1997
(s. 20)
           
Other Services - Services for Other Entities and Trust Moneys (A) 6.1 10 - - - 10
    20 - (10) - 10
Outcome 7            
Financial Management and Accountability Act 1997
(s. 20)
           
Indigenous Employment Special Account 7.1 - - - - -
    16,510 - - (16,510) -
Other Services - Services for Other Entities and Trust Moneys (A) 7.2 - - - - -
    226 - (226) - -
Aboriginal and Torres Strait Islander Act 2005            
Aboriginal and Torres Strait Islander Land Account
(A)
7.4 1,850,537 98,055 (46,215) - 1,902,377
    1,801,829 93,708 (45,000) - 1,850,537
Aboriginal and Land Rights (Northern Territory) Act 1976            
Aboriginals Benefit Account - Special Account
(A)
7.4 407,035 198,772 (188,402) - 417,405
    384,361 184,326 (161,652) - 407,035
Financial Management and Accountability Act 1997
(s. 20)
           
Indigenous Communities Strategic Investment Program Special
Account (A)
7.4 - - - - -
    - 833 (833) - -
Financial Management and Accountability Act 1997
(s. 20)
           
Aboriginal and Torres Strait Islander Corporations Unclaimed Money
Account (A)
7.4 351 - - - 351
    211 223 (83) - 351
Indigenous Remote Service Delivery Special Account (A) 7.4 10,262 17,000 (27,262) - -
    - 17,262 (7,000) - 10,262
Other Services - Services for Other Entities and Trust Moneys (A) 7.4 584 572 (750) - 406
    534 561 (511) - 584
Total special accounts 2011–12 Budget estimate 2,275,611 315,649 (263,879) - 2,327,381
Total special accounts 2010–11 estimated actual   2,210,079 298,248 (216,202) (16,514) 2,275,611

(A) = Administered

(D) = Departmental

3.1.3 Australian Government Indigenous expenditure


Table 3.1.3: Australian Government Indigenous expenditure
 
Appropriations
Other $'000
Total
$'000
Program
Bill No. 1
$'000
Special Approp
$'000
Total Approp
$'000
FaHCSIA
Outcome 1
Families and Children
Administered 2011–12 39,559 - 39,559 - 39,559 1.1
Administered 2010–11 39,406 - 39,406 - 39,406 1.1
Departmental 2011–12 500 - 500 - 500 1.1
Departmental 2010–11 2,998 - 2,998 - 2,998 1.1
Total Outcome 2011–12 40,059 - 40,059 - 40,059  
Total Outcome 2010–11 42,404 - 42,404 - 42,404  
Outcome 3
Community Capability and the Vulnerable
Administered 2011–12 14,148 - 14,148 - 14,148 3.1
Administered 2010–11 28,737 - 28,737 - 28,737 3.1
Administered 2011–12 13,903 - 13,903 - 13,903 3.2
Administered 2010–11 13,631 - 13,631 - 13,631 3.2
Total Outcome 2011–12 28,051 - 28,051 - 28,051  
Total Outcome 2010–11 42,368 - 42,368 - 42,368  
Outcome 5
Disability and Carers
Administered 2011–12 465 - 465 - 465 5.4
Administered 2010–11 545 - 545 - 545 5.4
Departmental 2011–12 28 - 28 - 28 5.4
Departmental 2010–11 39 - 39 - 39 5.4
Total Outcome 2011–12 493 - 493 - 493  
Total Outcome 2010–11 584 - 584 - 584  
Outcome 7
Indigenous
Administered 2011–12 249,110 - 249,110 - 249,110 7.1
Administered 2010–11 284,753 - 284,753 - 284,753 7.1
Departmental 2011–12 41,547 - 41,547 7,723 49,270 7.1
Departmental 2010–11 40,316 - 40,316 8,140 48,456 7.1
Administered 2011–12 106,843 - 106,843 - 106,843 7.2
Administered 2010–11 148,651 - 148,651 226 148,877 7.2
Departmental 2011–12 30,008 - 30,008 6,810 36,818 7.2
Departmental 2010–11 30,663 - 30,663 5,048 35,711 7.2
Administered 2011–12 84,258 - 84,258 - 84,258 7.3
Administered 2010–11 76,525 - 76,525 - 76,525 7.3
Departmental 2011–12 6,288 - 6,288 1,035 7,323 7.3
Departmental 2010–11 6,246 - 6,246 1,112 7,358 7.3
Administered 2011–12 73,348 178,989 252,337 262,629 514,966 7.4
Administered 2010–11 69,254 164,543 233,797 215,079 448,876 7.4
Departmental 2011–12 85,994 - 85,994 14,110 100,104 7.4
Departmental 2010–11 86,544 - 86,544 15,287 101,831 7.4
Administered 2011–12 22,349 2,560 24,909 - 24,909 7.5
Administered 2010–11 22,301 4,000 26,301 - 26,301 7.5
Departmental 2011–12 80,141 - 80,141 12,232 92,373 7.5
Departmental 2010–11 80,865 - 80,865 13,346 94,211 7.5
Total Outcome 2011–12 779,886 181,549 961,435 304,539 1,265,974  
Total Outcome 2010–11 846,118 168,543 1,014,661 258,238 1,272,899  
 
Total Administered 2011–12 603,983 181,549 785,532 262,629 1,048,161  
Total Administered 2010–11 683,803 168,543 852,346 215,305 1,067,651  
 
Total Departmental 2011–12 244,506 - 244,506 41,910 286,416  
Total Departmental 2010–11 247,671 - 247,671 42,933 290,604  
 
Total AGIE 2011–12 848,489 181,549 1,030,038 304,539 1,334,577  
Total AGIE 2010–11 931,474 168,543 1,100,017 258,238 1,358,255  

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

Table 3.2.1 recognised the full year revenue for 2011–12 on the basis of accrual accounting principles.

3.2.2 Analysis of budgeted financial statements

Departmental
Income and expenses

FaHCSIA is budgeting for an operating deficit of $50.8 million for 2011-12. This is the result of the revised net cash funding arrangements introduced under Operation Sunlight whereby asset replacement is now funded through a capital appropriation rather than the departmental operating appropriation. After allowing for depreciation expenses the reconciliation table at the bottom of Table 3.2.1 shows that the operating result attributable to FaHCSIA is a balanced operating position.

Total operating revenue for 2011-12 is estimated at $551.2 million, comprising of a net increase in government appropriations of $5.9m to a total of $525.9 million, offset by a decrease in own source revenue of $2.0 million to a total of $25.3 million. The net increase in revenue of $3.9 million is primarily due to funding through Government decisions and measures.

Total expenses for 2011-12 are estimated to be $601.9 million. The net reduction in expenses of $0.3 million is primarily due to the reduction in depreciation and amortisation expenses and the extinguishment of prepayment expenses to Centrelink. This is offset by increases in employee and supplier expenses.

Balance sheet

The Department's net asset position is expected to decrease by $20.5 million. This is due to the impact of the operating loss of $50.8 million and offset by an increase in contributed equity from the capital appropriations of $30.3 million.

Administered
Income and expenses

FaHCSIA will administer the collection of non-taxation revenue estimated at $163.0 million in 2011-12, a decrease of $15.3 million from the 2010-11 estimated revenues. The decrease is due to reduced returns from investments and receipts to special accounts.

FaHCSIA will administer programs totalling $76,381 million in expenses in 2011-12. The increase of $4,371 million principally reflects customer trends, indexation of income support payments and measures.

Balance sheet

Total assets administered on behalf of the Government are expected to increase by $125.5 million to $4,999.2 million. This is primarily due to an increase of $40.6 million in receivables and $95.2 million in investments.

Total liabilities administered on behalf of the Government are expected to increase by $66.5 million to $7,630.9 million which is driven by the increase in the personal benefits payable.

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
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
EXPENSES          
Employee benefits 333,753 338,882 302,505 303,405 299,027
Supplier 201,157 203,475 193,910 198,466 173,085
Depreciation and amortisation 55,016 50,763 49,357 44,565 41,817
Other 12,267 8,777 8,777 8,777 8,777
Total expenses 602,193 601,897 554,549 555,213 522,706
LESS:          
Own-Source Income
Revenue
         
Sale of goods and rendering of services 24,933 17,429 17,429 17,429 17,429
Other revenue 1,017 6,565 6,565 6,565 6,565
Total revenue 25,950 23,994 23,994 23,994 23,994
GAINS          
Other gains 1,290 1,290 1,290 1,290 1,290
Total gains 1,290 1,290 1,290 1,290 1,290
Total own-source income 27,240 25,284 25,284 25,284 25,284
Net cost of (contribution by) services 574,953 576,613 529,265 529,929 497,422
           
Revenue from government 519,937 525,850 479,908 485,364 455,605
Surplus (Deficit) (55,016) (50,763) (49,357) (44,565) (41,817)
Total comprehensive income attributable to the Australian Government (55,016) (50,763) (49,357) (44,565) (41,817)
Note: Reconciliation of operating result attributable to the agency
 

2010–11

$'000

2011–12

$'000

2012–13

$'000

2013–14

$'000

2014–15

$'000
Operating result attributable to the Australian Government (55,016) (50,763) (49,357) (44,565) (41,817)
plus non-appropriated expenses depreciation and amortisation expenses 55,016 50,763 49,357 44,565 41,817
Operating result attributable to the Agency - - - - -

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 
Estimated actual
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
ASSETS          
Financial assets          
Cash and equivalents 2,911 2,911 2,911 2,911 2,911
Trade and other receivables 99,681 97,139 97,097 97,055 97,053
Total financial assets 102,592 100,050 100,008 99,966 99,964
Non-financial assets          
Land and buildings 184,278 178,585 181,064 171,638 163,231
Infrastructure, plant and equipment 31,075 24,907 20,328 14,364 9,272
Intangibles 47,071 40,928 33,658 29,177 29,822
Other 6,498 6,498 6,498 6,498 6,498
Total non-financial assets 268,922 250,918 241,548 221,677 208,823
Total assets 371,514 350,968 341,556 321,643 308,787
LIABILITIES          
Payables          
Suppliers 17,842 17,842 17,842 17,842 17,842
Other 30,366 30,366 30,366 30,366 30,366
Total payables 48,208 48,208 48,208 48,208 48,208
Provisions          
Employees 79,213 79,171 79,129 79,087 79,085
Other 3,147 3,147 3,147 3,147 3,147
Total provisions 82,360 82,318 82,276 82,234 82,232
Total liabilities 130,568 130,526 130,484 130,442 130,440
Net assets 240,946 220,442 211,072 191,201 178,347
EQUITY*          
Parent entity interest          
Contributed equity 139,549 169,808 209,795 234,489 263,452
Reserves 58,964 58,964 58,964 58,964 58,964
Retained surpluses or accumulated deficits 42,433 (8,330) (57,687) (102,252) (144,069)
Total parent entity interest 240,946 220,442 211,072 191,201 178,347
Total equity 240,946 220,442 211,072 191,201 178,347

Prepared on an Australian Accounting Standards basis.

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


Table 3.2.3: Departmental statement of changes in equity — summary of movement ( 2011-12)
 
Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2011          
Balance carried forward from previous period 42,433 58,964 - 139,549 240,946
Adjusted opening balance 42,433 58,964 - 139,549 240,946
Surplus (deficit) for the period (50,763) - - - (50,763)
Recognised directly in equity (50,763) - - - (50,763)
Transactions with owners          
Contribution by owners          
Appropriation (equity injection) - - - 2,997 2,997
Departmental Capital Budget (DCBs) - - - 27,262 27,262
Subtotal transactions with owners - - - 30,259 30,259
Estimated closing balance as at 30 June 2012 (8,330) 58,964 - 169,808 220,442

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of cash flows (as at 30 June)
 
Estimated actual
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 24,933 17,429 17,429 17,429 17,429
Appropriations 532,797 528,392 479,950 485,406 455,607
Other 1,017 6,565 6,565 6,565 6,565
Total cash received 558,747 552,386 503,944 509,400 479,601
Cash used          
Employees 335,093 338,924 302,547 303,447 299,029
Suppliers 199,867 203,475 193,910 198,466 173,085
Other 8,787 7,487 7,487 7,487 7,487
Total cash used 543,747 549,886 503,944 509,400 479,601
Net cash from or (used by) operating activities 15,000 2,500 - - -
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 50,608 32,759 39,987 24,694 28,963
Total cash used 50,608 32,759 39,987 24,694 28,963
Net cash from or (used by) investing activities (50,608) (32,759) (39,987) (24,694) (28,963)
FINANCING ACTIVITIES          
Cash received          
Appropriations - contributed equity 35,608 30,259 39,987 24,694 28,963
Total cash received 35,608 30,259 39,987 24,694 28,963
Net cash from or (used by) financing activities 35,608 30,259 39,987 24,694 28,963
Net increase or (decrease) in cash held - - - - -
Cash at the beginning of the reporting period 2,911 2,911 2,911 2,911 2,911
Cash at the end of the reporting period 2,911 2,911 2,911 2,911 2,911

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement
 
Estimated actual
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
CAPITAL APPROPRIATIONS          
Capital Budget - Bill 1 (DCB) 22,829 27,262 39,930 24,637 28,783
Equity Injections - Bill 2 12,779 2,997 57 57 180
Total capital appropriations 35,608 30,259 39,987 24,694 28,963
Total new capital appropriations          
Represented by:          
Purchase of non-financial assets 35,608 30,259 39,987 24,694 28,963
Total Items 35,608 30,259 39,987 24,694 28,963
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations 12,779 2,997 57 57 180
Funded by capital appropriations - DCB1 22,829 27,262 39,930 24,637 28,783
Funded internally from departmental resources2 15,000 2,500 - - -
TOTAL 50,608 32,759 39,987 24,694 28,963
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases 50,608 32,759   24,694 28,963
Total cash used to acquire assets 50,608 32,759 - 24,694 28,963

1 Does not include annual finance lease costs. Include purchase from current and previous years Departmental Capital Budgets.

2 Includes annual and prior year appropriations.

Prepared on Australian Accounting Standards basis.


Table 3.2.6: Statement of asset movements (2011–12)
 
Land
$'000
Buildings
$'000
Other Infrastructure, plant & equipment
$'000
Intangibles
$'000
Total
$'000
as at 1 July 2011          
Gross book value 19,962 216,235 55,708 114,195 406,100
Accumulated depreciation/amortisation - (51,919) (24,633) (67,124) (143,676)
Opening net book balance 19,962 164,316 31,075 47,071 262,424
CAPITAL ASSET ADDITIONS          
Estimated expenditure on          
new or replacement assets          
By purchase - appropriation equity - 14,412 8,537 9,810 32,759
Acquisition of entities or operations (including restructuring) subtotal - 14,412 8,537 9,810 32,759
Other movements          
Depreciation/amortisation expense - (20,105) (14,705) (15,953) (50,763)
as at 30 June 2012          
Gross book value 19,962 230,647 64,245 124,005 438,859
Accumulated depreciation/amortisation - (72,024) (39,338) (83,077) (194,439)
Closing net book balance 19,962 158,623 24,907 40,928 244,420

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
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
INCOME ADMINISTERED ON BEHALF OF GOVERNMENT      
Revenue          
Non-taxation          
Interest 113,691 118,038 122,650 119,865 120,493
Other sources of non-taxation revenues 64,606 44,997 24,044 14,006 -
Total non-taxation 178,297 163,035 146,694 133,871 120,493
Total revenues administered on behalf of government 178,297 163,035 146,694 133,871 120,493
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT      
Grants 1,608,163 1,612,291 1,500,773 1,525,623 1,512,757
Subsidies 8,445 8,737 8,478 8,689 8,906
Personal benefits 70,188,337 74,502,182 79,063,286 82,837,062 87,524,858
Suppliers 67,212 88,887 77,803 88,334 61,265
Other 137,692 168,733 161,880 151,464 150,722
Total expenses administered on behalf of government 72,009,849 76,380,830 80,812,220 84,611,172 89,258,508

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
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT          
Financial assets          
Cash and cash equivalents 32,718 22,425 20,168 17,837 17,996
Receivables 843,166 883,787 1,014,267 1,040,059 1,268,017
Investments 3,792,468 3,887,689 3,984,121 4,081,994 4,169,265
Total financial assets 4,668,352 4,793,901 5,018,556 5,139,890 5,455,278
Non-financial assets          
Prepayments - Personal Benefits 194,546 194,546 194,546 194,546 194,546
Other 10,511 10,511 10,511 10,511 10,511
Total non-financial assets 205,057 205,057 205,057 205,057 205,057
Total assets administered on behalf of Government 4,873,409 4,998,958 5,223,613 5,344,947 5,660,335
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT          
Provisions          
Personal benefits provision 5,748,481 5,746,625 5,750,551 5,821,660 5,948,727
Total provisions 5,748,481 5,746,625 5,750,551 5,821,660 5,948,727
Payables          
Suppliers 14,706 14,706 14,706 14,706 14,706
Personal benefits payable 1,795,143 1,861,734 2,021,017 2,008,037 2,142,275
Grants 6,123 7,853 7,655 7,457 6,249
Total payables 1,815,972 1,884,293 2,043,378 2,030,200 2,163,230
Total liabilities administered on behalf of government 7,564,453 7,630,918 7,793,929 7,851,860 8,111,957

Prepared on Australian Accounting Standards basis.


Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)
 
Estimated actual
2010–11

$'000
Budget estimate
2011–12

$'000
Forward estimate
2012–13

$'000
Forward estimate
2013–14

$'000
Forward estimate
2014–15

$'000
OPERATING ACTIVITIES          
Cash received          
Other 240,892 197,394 184,241 182,003 167,286
Total cash received 240,892 197,394 184,241 182,003 167,286
Cash used          
Grant payments 1,601,438 1,607,305 1,500,971 1,525,821 1,513,965
Subsidies paid 8,445 8,737 8,478 8,689 8,906
Personal benefits 70,402,211 74,644,162 79,126,562 83,020,072 87,514,686
Suppliers 69,005 103,098 91,094 96,142 78,393
Other 291,838 310,461 301,386 296,453 285,680
Total cash used 72,372,937 76,673,763 81,028,491 84,947,177 89,401,630
Net cash from or (used by) operating activities (72,132,045) (76,476,369) (80,844,250) (84,765,174) (89,234,344)
INVESTING ACTIVITIES          
Cash received          
Investments 2,720,000 2,970,000 3,267,000 3,593,700 3,593,700
Interest 113,691 118,038 122,650 119,865 120,493
Total cash received 2,833,691 3,088,038 3,389,650 3,713,565 3,714,193
Cash used          
Investments 2,831,313 3,065,221 3,371,232 3,707,173 3,696,571
Total cash used 2,831,313 3,065,221 3,371,232 3,707,173 3,696,571
Net cash from or (used by) investing activities 2,378 22,817 18,418 6,392 17,622
Net increase or (decrease) in cash held (72,129,667) (76,453,552) (80,825,832) (84,758,782) (89,216,722)
Cash at beginning of reporting period 15,274 32,718 22,425 20,168 17,837
Cash from Official Public Account for: - appropriations 72,212,912 76,509,740 80,874,741 84,803,964 89,261,231
Cash to Official Public Account for: - special accounts (65,801) (66,481) (51,166) (47,513) (44,350)
Cash at end of reporting period 32,718 22,425 20,168 17,837 17,996

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 2010–11 to 2014–15. 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 programmes.

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 represents the investments in the Aboriginal and Torres Strait Islander Land Account.

Non Financial Assets – Other (Administered)

Other non-financial assets item relates 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.

Equal Opportunity for Women in the Workplace Agency

Agency resources and planned performance

Equal Opportunity for Women in the Workplace Agency

Section 1: Agency overview and resources

Section 2: Outcomes and program performance

Section 3: Explanatory tables and budgeted financial statements

Equal Opportunity for Women in the Workplace Agency

Section 1: Agency overview and resources

The planned outcome of the Equal Opportunity for Women in the Workplace Agency is equality of opportunity in employment for women.

1.1 Strategic direction statement

The Equal Opportunity for Women in the Workplace Agency (EOWA) is chartered through the Equal Opportunity for Women in the Workplace Act 1999 (Commonwealth) with both regulatory and educative functions and responsibilities43.

EOWA's stated outcome is Equality of Opportunity in Employment for Women.

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

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

Throughout 2011–12 EOWA will work closely with over 9,000 relevant employers covered by EOWA Act, 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 including paid maternity leave, reducing the gender pay gap, reducing harassment, advancing merit-based opportunity and improving the quality of flexible working arrangements.

Partnerships with business will enable the agency to conduct leading edge research and profile best practice, to provide guidance and practical solutions to equity issues to business, government and the community. Following a review of the Act and Agency in partnership with businesses, unions, industry groups and researchers, the Government committed to retaining and improving the Act and Agency. In March 2011 a detailed reform package was announced, aimed at strengthening the Act and Agency's focus on gender equality, highlighting pay equity and caring and unpaid responsibilities as key dimensions in achieving equal outcomes in the workplace.

The Agency will focus on implementing the Government's reform package. Its commitment to education, partnership with reporting organisations and community engagement will continue, with an emphasis on assisting employers to make the transition to the new arrangements, due to be in place for the 2013 reporting year.

The Agency has received additional funding over four years to implement these changes as shown in the measures table.

1.2 Agency resource statement

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


Table 1.1: EOWA resource statement—Budget estimates for 2011–12 as at Budget May 2011
 
 
Estimate of prior year amounts available in
2011–12

$'000
+
Proposed at Budget
2011–12

$'000
=
Total estimate
2011–12

$'000
Actual available appropriation
2010–11

$'000
Ordinary annual services1
Departmental appropriation
             
Prior year departmental appropriation2   -   -   - -
Departmental appropriation   -   5,324   5,324 3,002
s31 Relevant agency receipts3   -   366   366 466
Total   -   5,690   5,690 3,468
Total ordinary annual services A -   5,690   5,690 3,468
Departmental non-operating              
Equity injections   -   780   780 -
Total   -   780   780 -
Total other services B -   780   780 -
Total resourcing              
A+B+C+D   -   6,470   6,470 3,468
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 EOWA   -   6,470   6,470 3,468

1 Appropriation Bill (No.1) 2011-12.

2 Estimated adjusted balance carried forward from previous year.

3 s31 Relevant Agency receipts - estimate.

Third-party payments from and on behalf of other agencies

 

2011-12

$'000

2010-11

$'000
               
Payments made to other agencies for the provision of services     130 130
(disclosed above)              

All figures are GST exclusive.

1.3 Budget measures

Budget measures relating to the Equal Opportunity for Women in the Workplace Agency are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2: EOWA 2011–12 Budget measures
 
Program
2011–12
$'000
2012–13
$'000
2013–14
$'000
2014–15
$'000
Expense measures          
Outcome 1          
Efficiency dividend – temporary increase in the rate1 1.1        
Administered expenses   - - - -
Departmental expenses   (27) (53) (67) (81)
Total   (27) (53) (67) (81)
Gender Equality in the Workplace2 1.1        
Administered expenses   - - - -
Departmental expenses   2,567 2,296 2,340 2,350
Total   2,567 2,296 2,340 2,350
Total expense measures          
Administered   - - - -
Departmental   2,540 2,243 2,273 2,269
Total   2,540 2,243 2,273 2,269
Capital measures          
Outcome 1          
Efficiency dividend – temporary increase in the rate1 1.1        
Administered capital   - - - -
Departmental capital   (4) (5) - -
Total   (4) (5) - -
Gender Equality in the Workplace2 1.1        
Administered capital   - - - -
Departmental capital   780 830 - -
Total   780 830 - -
Total capital measures          
Administered   - - - -
Departmental   776 825 - -
Total   776 825 - -

Prepared on a Government Financial Statistics (fiscal) basis

1This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

2This measure delivers a 2010 election commitment.

Section 2: Outcomes and program 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. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to Government outcomes over the Budget and forward years.

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

Outcome 1

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

Outcome 1 strategy

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

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

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

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

Outcome 1 expense statement

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


Table 2.1: Budgeted expenses 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

2010-11
Estimated actual expenses
$'000

2011-12
Estimated expenses
$'000
Program 1.1:    
Departmental expenses    
Departmental appropriation 1 3,216 5,690
Special appropriations - -
Special Accounts - -
Expenses not requiring appropriation in the Budget year 2 364 420
Total for Program 1.1 3,580 6,110
Outcome 1 Totals by appropriation type    
Departmental expenses    
Departmental appropriation 1 3,216 5,690
Special appropriations - -
Special Accounts - -
Expenses not requiring appropriation in the Budget year 2 364 420
Total expenses for Outcome 1 3,580 6,110
  2010-11 2011-12
Average Staffing Level (number) 21 26

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".

2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense and Audit Fees.

Contributions to Outcome 1

Program 1.1: Equality of Opportunity in Employment for Women
Program 1.1 objective

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

Program 1.1 expenses

The increase in program expense is a result of the announcement of the Government's reform package aimed at strengthening the EOWA Act and broaden the Agency's focus on gender equality, highlighting pay equity and caring and unpaid responsibilities as key dimensions in achieving equal outcomes in the workplace.


Table 2.1.1: Budgeted expenses for Equality of Opportunity in Employment for Women
Program ('000)

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Total Departmental expense 3,216 5,690 5,535 5,645 5,673
Expenses not requiring appropriation in the Budget year 1 364 420 527 486 494
Total program expenses 3,580 6,110 6,062 6,131 6,167

1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Audit Fees and In-Kind Research.

Program 1.1 deliverables
  • Increase in women in management
  • Increase in paid maternity leave


Equality of Opportunity in Employment for Women deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Overall Budget ($'000)

3,316

5,734

5,579

5,689

5,725

Increase in women in management

34.30%

35%

 

 

 

Increase in paid maternity leave

54.50%

55%

 

 

 

Program 1.1 key performance indicators
  • Workshop attendees agree or strongly agree that workshops are informative and valuable
  • Increase in women in management
  • Increase in paid maternity leave


Equality of Opportunity in Employment for Women key performance indicators targets
Key Performance Indicators

2010-11
Revised budget

2011-12
Budget target

2012-13
Forward year 1

2013-14
Forward year 2

2014-15
Forward year 3
           
Workshop Attendees agree or strongly agree that workshops are informative and valuable   95% 95% 95% 95%
Increase in women in management   35%      
Increase in paid maternity leave   55%      

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 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

EOWA does not have any administered expenses.

3.1.2 Special accounts

EOWA does not have any special accounts.

3.1.3 Australian Government Indigenous expenditure

EOWA does not have any Australian Government Indigenous expenditure.

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

Income and expenses

EOWA's income statement shows a balanced budget for 2011–12 after taking account of the net cash funding arrangements whereby asset replacement is funded through a capital appropriation rather than departmental operating appropriation.

The increase in appropriation received of $2.6 million is to fund the Government's commitment to strengthen the EOWA Act and broaden the focus to gender equality, highlighting pay equity and caring and unpaid responsibilities as key dimensions in achieving equal outcomes in the workplace.

The increase in employee and supplier expenses similarly reflects the expenditure involved in transitioning the Agency to the new arrangements.

Balance sheet

The increase in intangible asset values reflects the investment in an online reporting system, which will make reporting easier and the construction of a new website which will act as central hub in providing information to a variety of stakeholders.

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
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
EXPENSES          
Employee benefits 1,980 3,555 3,574 3,491 3,546
Supplier expenses 1,336 2,179 2,005 2,198 2,179
Depreciation and amortisation 264 374* 483* 442* 442*
Total expenses 3,580 6,108 6,062 6,131 6,167
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Sale of goods and rendering of services 466 366 366 366 366
Other 100 44 44 44 52
Total own-source revenue 566 410 410 410 418
Total own-source income 566 410 410 410 418
Net cost of (contribution by) services          
Revenue from Government 2,750 5,324 5,169 5,279 5,307
Surplus (Deficit) (264) (374) (483) (442) (442)
Surplus (Deficit) attributable to the Australian Government (264) (374) (483) (442) (442)
Total comprehensive income attributable to the Australian Government (264) (374) (483) (442) (442)
Note: Reconciliation of comprehensive income attributable to the agency
Total Comprehensive Income (loss) Attributable to the Australian Government (264) (374) (483) (442) (442)
plus non-appropriated expenses depreciation and amortisation expenses 264 374 483 442 442
Total Comprehensive Income (loss) Attributable to the agency - - - - -

Prepared on Australian Accounting Standards basis.


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
ASSETS          
Financial assets          
Cash and cash equivalents 230 532 553 564 828
Trade and other receivables 1,801 1,451 1,429 1,417 1,153
Total financial assets 2,031 1,983 1,982 1,981 1,981
Non-financial assets          
Land and buildings 169 67 439 336 233
Property, plant and equipment 2 2 2 2 2
Intangibles 169 1,430 1,917 1,579 1,241
Other 2 2 2 2 2
Total non-financial assets 342 1,501 2,360 1,919 1,478
Total assets 2,373 3,484 4,342 3,900 3,459
LIABILITIES          
Payables          
Suppliers 45 45 45 45 45
Other 313 266 266 266 266
Total payables 358 311 311 311 311
Provisions          
Employee provisions 330 330 330 330 330
Other - - - - -
Total provisions 330 330 330 330 330
Total liabilities 688 641 641 641 641
Net assets 1,685 2,843 3,701 3,259 2,818
EQUITY*          
Parent entity interest          
Contributed equity 804 2,336 3,677 3,677 3,677
Reserves 40 40 40 40 40
Retained surplus 841 467 - - -
(accumulated deficit) - - (16) (458) (900)
Total parent entity interest 1,685 2,843 3,701 3,259 2,817
Total Equity 1,685 2,843 3,701 3,259 2,817

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

Prepared on Australian Accounting Standards basis.


Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2011–12)
 
Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2011          
Balance carried forward from previous period 841 40 - 802 1,683
Adjusted opening balance 841 40 - 802 1,683
Comprehensive income          
Other comprehensive income (374) - - - -
Surplus (deficit) for the period          
Total comprehensive income 467 40 - 802 1,683
Transactions with owners          
Contributions by owners          
Contribution/(Distribution) of Equity - - - - -
Appropriation (equity injection) - - - 780 -
Departmental Capital Budget (DCBs) - - - 754 -
Sub-total transactions with owners - - - 1,534 1,534
Estimated closing balance as at 30 June 2012 467 40 - 2,336 2,843

Prepared on Australian Accounting Standards basis.


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 466 366 366 366 366
Appropriations 2,757 5,674 5,191 5,291 5,571
Other 100 44 44 44 52
Total cash received 3,323 6,084 5,601 5,701 5,989
           
Cash used          
Employees 1,980 3,555 3,574 3,491 3,546
Suppliers 1,336 2,177 2,006 2,199 2,179
Other 47 47 - - -
Total cash used 3,363 5,779 5,580 5,690 5,725
Net cash from (used by) operating activities (40) 305 21 11 264
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment - 1,537 1,345 - -
Total cash used - 1,537 1,345 - -
Net cash from (used by) investing activities - (1,537) (1,345) - -
FINANCING ACTIVITIES          
Cash received          
Contributed equity Purchase of PP&E and intangibles - 1,534 1,345 - -
Total cash received - 1,534 1,345 - -
Net cash from (used by) financing activities - (3) - - -
Net increase (decrease) in cash held (40) 302 21 11 264
Cash and cash equivalents at the beginning of the reporting period 270 230 532 553 564
Effect of exchange rate movements on cash and cash equivalents at the beginning of reporting period      
Cash and cash equivalents at the end of the reporting period 230 532 553 564 828

Prepared on Australian Accounting Standards basis.


Table 3.2.5: Departmental capital budget statement
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 (DCB) - - - - -
Equity injections - Bill 2 - 776 825 - -
Total capital appropriations - 776 825 - -
Total new capital appropriations          
Represented by:          
Purchase of non-financial assets - 776 825 - -
Other Items - - - - -
Total Items - 776 825 - -
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations - 780 830 - -
Funded by capital appropriation - DCB1 - 752 511 - -
TOTAL - 1,532 1,341 - -
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases - 1,532 1,341 - -
less additions by finance lease - - - - -
plus borrowing / finance costs - - - - -
plus Annual finance lease costs - - - - -
Total cash used to acquire assets - 1,532 1,341 - -

1 Does not include annual finance lease costs. Include purchase from current and previous years Departmental Capital Budgets.

2 Includes the following sources of funding:
- annual and prior year appropriations
- donations and contributions
- gifts
- internally developed assets
- s31 relevant agency receipts (for FMA agencies only)


Table 3.2.6: Statement of Asset Movements (2011-12)
 
Buildings plant and equipment
$'000
Other property,
$'000
Intangibles
$'000
Total
$'000
As at 1 July 2011
Gross book value 697 21 2,093 2,811
Accumulated depreciation/amortisation and impairment (631) (19) (1,825) (2,475)
Opening net book balance 66 2 268 336
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
By purchase - appropriation ordinary annual services 1 103 1 1,433 1,537
From acquisition of entities or operations (including restructuring) - - - -
Total additions 103 1 1,433 1,537
Other movements
Assets held for sale or in a disposal group held for sale
Depreciation/amortisation expense (102) (1) (271) (374)
Other - - - -
As at 30 June 2012
Gross book value 800 22 3,526 4,348
Accumulated depreciation/amortisation and impairment (733) (20) (2,096) (2,849)
Closing net book balance 67 2 1,430 1,499

1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2011-12 for depreciation / amortisation expenses, DCBs / ACBs or other operational expenses.

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

Basis of accounting
Accounting Policy

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

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

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

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

Aboriginal Hostels Limited

Agency resources and planned performance

Aboriginal Hostels Limited

Section 1: Agency overview and resources

Section 2: Outcomes and program performance

Section 3: Explanatory tables and budgeted financial statements

Aboriginal Hostels Limited

Section 1: Agency overview and resources

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

1.1 Strategic direction statement

AHL's accommodation services directly benefit Indigenous people who need to access education, employment, health, housing and other services that are vital to improving quality of life and opening up opportunities. The AHL national network of accommodation facilities provides 1,720 beds every night for Indigenous people and AHL also assists community organisations to provide a further 1,034 beds.

The Board of Directors of AHL and the Executive, with support from senior staff from the Department of Families, Housing, Community Services and Indigenous Affairs, have over the last year reviewed AHL's strategic objectives and service provision. The results include a clear set of strategic objectives, a best-practice governance framework, enhanced research and development capability and the introduction of new performance reporting measures to improve AHL's services.

1.2 Agency resource statement

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

Table 1.1: AHL resource statement—Budget estimates for 2011–12 as at Budget May 2011
Source
+
Proposed at Budget
2011-12

$'000
=
Total estimate
2011-12

$'000
Actual available appropriation
2010-11

$'000
Opening balance/Reserves at bank 1   31,373   31,373 22,314
REVENUE FROM GOVERNMENT          
Ordinary annual services 2          
Outcome 1   38,481   38,481 38,476
Total ordinary annual services   38,481   38,481 38,476
Other services          
Non-operating   -   - 6,920
Total other services   -   - -
Total annual appropriations   38,481   38,481 45,396
Payments from related entities 3          
Grant and Subsidies          
Department of Health and Ageing   3,446   3,446 3,427
Indigenous Youth Mobility Program   3,633   3,633 3,633
           
Amounts from other agencies          
Total 4   7,079   7,079 7,060
Total Funds from Government   45,560   45,560 52,456
FUNDS FROM OTHER SOURCES          
Accommodation Charges   12,314   12,314 12,014
Interest   827   827 892
Other   527   527 512
Total   13,668   13,668 13,418
Total net resourcing for agency   90,601   90,601 88,188

1 Cash funds buil t up to meet pending commitments for new renal dialysis new hostel at Port Hedland $11 mil lion, W adeye Secondary School Boarding facility $12.1 million and to fund replacement of existing assets and supporting systems nearing the end of their useful life.

2 Appropriation Bill (No.1) 2011-12.

3 Funding provided by another government body.

4 This represents total revenue for other services, as shown in Table 2.1, of $20.747m ($7.079m + $13.668m). Aboriginal Hostels Limited is not directly appropriated as it is a Commonwealth Authorities and Companies Act 1997 body. Appropriations are made to Department of Families, Housing, Community, Services and Indigenous Affairs and are then pai d to Aboriginal Hostels Limited, and are considered 'depar tmental' for all purposes.

All figures are GST exclusive.

1.3 Budget measures

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


Table 1.2: AHL 2011–12 Budget measures
 
Program
2011–12
$'000
2012–13
$'000
2013–14
$'000
2014–15
$'000
Expense measures          
Outcome 1          
Efficiency dividend – temporary increase in the rate1 1.1        
Administered expenses   - - - -
Departmental expenses   (195) (392) (493) (595)
Total   (195) (392) (493) (595)
Total expense measures          
Administered   - - - -
Departmental   (195) (392) (493) (595)
Total   (195) (392) (493) (595)

Prepared on a Government Financial Statistics (fiscal) basis

1This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

Section 2: Outcomes and program 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. Commonwealth programs are the primary vehicle by which AHL a "government agency" achieves the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

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

Outcome 1

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

The AHL Board has identified three main themes or directions for the three years from 2011-13. These are to:

  • facilitate 'wrap around' services to lead to independent living
  • develop partnerships with public and private sectors
  • provide pathways to employment for students and trainees.

Outcome 1 expense statement

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

Table 2.1: Budgeted expenses for Outcome 1
Outcome 1:

2010-11
Estimated actual expenses
$'000

2011-12
Estimated expenses
$'000
Program 1.1: Company operated hostels    
Revenue from Government    
Ordinary annual services (Appropriation Bill No. 1) 32,076 32,081
Payment from related entities    
Total for Program 1.1 32,076 32,081
Program 1.2: Community operated hostels    
Revenue from Government    
Ordinary annual services (Appropriation Bill No. 1) 6,400 6,400
Payment from related entities    
Total for Program 1.2 6,400 6,400
Total revenue from Government (appropriations)    
contributing to price of departmental programs 38,476 38,481
Revenue from other sources    
Program 1.1 - Company operated hostels 20,478 20,747
Program 1.2 - Community operated hostels - -
Total revenue from other sources 20,478 20,747
Total revenue from departmental programs    
(Total revenue from Government and other sources) 58,954 59,228
Outcome 1 Totals by resource type    
Revenue from Government 38,476 38,481
Ordinary annual services (Appropriation Bill No. 1)    
Payment from related entities 20,478 20,747
Total expenses for Outcome 1 58,954 59,227
  2010-11 2011-12
Average Staffing Level (number) 442 472

Prepared on a Government Financial Statistics (fiscal) basis

1This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

Contributions to Outcome 1

Program 1.1: Company Operated Hostels
Program 1.1 objective

To provide temporary accommodation at company operated hostels that assist Indigenous Australians who must live away from home to access services and economic opportunity.

Program 1.1 expenses

Newly operational hostels (Kununurra Secondary Education Hostel, Tonky Logan) in Townsville are resulting in increased expenditure levels.

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

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

Table 2.1.1 Budgeted expenses for Company owned hostels
 

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Annual departmental expenses:          
Departmental item 52,553 52,859 50,808 48,788 46,778
Program support          
Total program expenses 52,553 52,859 50,808 48,788 46,778
Program 1.1 deliverables
  • Average number of guests per night (occupancy percentage)
  • Number of actual guest nights
  • Percentage of residents satisfied with accommodation


Company Operated Hostels deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Average nightly guests (occupancy percentage)

70

70

70

70

70

Total guest nights

1655

1655

1655

1655

1655

Percentage of residents satisfied with accommodation

75

75

75

75

75

Program 1.1 key performance indicators
  • Average operating cost per person
  • Average revenue per person


Company Operated Hostels deliverables targets - Key Performance
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Average operating cost per person

$36

$36

$35

$34

$32

Average revenue per person

$7

$7

$7

$7

$7

Program 1.2: Community Operated Hostels
Program 1.2 objective

To provide temporary accommodation at community operated hostels that assist Indigenous Australians who must live away from home to access services and economic opportunity.

Program 1.2 expenses

The community hostels grants program for 2011–12 is $6.4 million. This funding enables AHL to provide recurrent funding to 47 community operated organisations.

Table 2.1.2: Budgeted expenses for Community Operated Hostels
 

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Annual departmental expenses:          
Departmental item 6,400 6,368 6,341 6,325 6,328
Program support          
Total program expenses 6,400 6,368 6,341 6,325 6,328
Program 1.2 deliverables
  • Number of beds

Community Operated Hostels deliverables targets
Deliverables

2010-11
Revised budget

2011-12
Budget

2012-13
Forward year 1

2013-14
Forward year 2

2014-15
Forward year 3
Number of beds 1,333 1,333 1,333 1,333 1,333
           
Program 1.2 key performance indicators
  • Average nightly guests (occupancy percentage)
  • Total guest nights

Program Key Performance Indicators
Key Performance Indicators

2010-11
Revised budget

2011-12
Budget target

2012-13
Forward year 1

2013-14
Forward year 2

2014-15
Forward year 3
Average occupancy level as a          
percentage of beds 70 70 70 70 70
Percentage of residents satisfied          
with accomodation provided 75 75 75 75 75

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 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

AHL has no Administered funds for 2011–12.

3.1.2 Special accounts

AHL has no special accounts for 2011–12.

3.1.3 Aboriginal Hostels Ltd, Australian Government Indigenous expenditure

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Outcome
Appropriations
Other
Total
Program
Bill No. 1
$'000
Bill No. 2
$'000
Special approp
$'000
Total approp
$'000
$'000
$'000
 
Aboriginal Hostels Ltd
Outcome 1
Departmental 2011-12 32,113 - - 32,113 20,747 52,860 1.1
  6,368 - - 6,368 - 6,368 1.2
Departmental 2010-11 32,076 6,920 - 38,996 20,478 59,474 1.1
  6,400     6,400 - 6,400 1.2
Total outcome 2011-12 38,481 - - 38,481 20,747 59,228  
Total outcome 2010-11 38,476 6,920 - 45,396 20,478 65,874  
Total AGIE 2011-12 38,481 - - 38,481 20,747 59,228  
Total AGIE 2010-11 38,476 6,920 - 45,396 20,478 65,874  

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

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

3.2.2 Analysis of budgeted financial statements

An analysis of the primary causes of movements from the financial statements published in the 2011–12 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 $0.2 million in 2011–12 as a result of indexation.

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

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

Total expenses

Salaries and employee benefits ― these have been increased by $0.5 million as a result of new hostels at Alice Springs and Port Hedland. Reduction in salary outlays for 2012–13 is due to expiry of Indigenous Youth Mobility Program contract.

Suppliers ― this includes food, materials, services and sundry expenses and the increase is reflective of new hostels.

Depreciation and amortisation ― the higher level of depreciation expenditure flows from completion of fire safety and occupational health and safety works appropriated to AHL as part of capital equity injection.

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

The contract with DEEWR for the delivery of services for the participants in the Indigenous Youth Mobility Program in seven locations (Darwin, Alice Springs, Port Augusta, Adelaide, Dubbo, Coffs Harbour and Hobart) is due to end in December 2012. As a result, there is a marked reduction in both total income and expenditure from 2012–13.

Budgeted departmental balance sheet

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

The major variations between estimated actuals for 2010–11 and the budget for 2011–12 in the balance sheet are as follows:

  • investment activity in non-current assets continues to increase in 2011–12 due to capitalisation of the Port Hedland hostel.
  • 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. The notable decrease in the cash balance in 2011–12 is due to payment for construction of the Port Hedland hostel.
  • the receivables are fairly stable and include items such as GST refunds due from the Australian Taxation Office and trade debtors.
  • liabilities are expected to remain at similar level for the next three financial years.
Budgeted departmental statement of cash flows

Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities. The major variations between estimated actuals for 2010–11 and the budget for 2011–12 in the statement of cash flows are as follows:

  • The decrease in total cash in 2011–12 is linked to the payment for the construction of the Port Hedland hostel and the secondary education boarding facility in Wadeye.
  • The trend in payments to suppliers and employees is in line with the comments provided under the expenses category in the income statement.

Departmental statement of changes in equity—summary of movement

The change in the statement of equity is $0.001 million surplus for the 2011-12 financial year.

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
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
EXPENSES          
Employee benefits 27,747 28,259 26,768 25,418 24,066
Supplier expenses 19,967 20,222 19,562 19,151 18,382
Grants 6,400 6,368 6,341 6,325 6,328
Depreciation and amortisation 2,816 2,929* 3,343* 3,456* 3,571*
Finance costs - -* -* -* -*
Write-down and impairment of assets 120 123 120 116 111
Losses from asset sales - - - - -
Operating lease rental chrges 1,903 1,326 1,016 648 649
Total expenses 58,953 59,227 57,149 55,113 53,106
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Accomodation charges 12,014 12,314 11,990 11,643 11,060
Appropriations 38,476 38,481 38,555 38,694 38,896
Interest 892 827 777 727 677
Grants and Subsidies          
Department of Health and Ageing 1,898 1,898 1,898 1,898 1,898
Indigenous Youth Mobility Program 3,633 3,633 1,817 - -
Visitors Centre          
Visitors Centre 1,529 1,548 1,570 1,593 -
Dividends - - - - -
Rental income - - - - -
Royalties - - - - -
Other 512 527 543 559 576
Total own-source revenue 58,954 59,228 57,150 55,114 53,107
Surplus (Deficit) 1 1 1 1 1
Surplus (Deficit) attributable to the Australian Government 1 1 1 1 1

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
ASSETS          
Financial assets          
Cash and cash equivalents 31,374 22,373 24,963 27,615 30,406
Trade and other receivables 1,219 1,228 1,218 1,208 1,191
Total financial assets 32,593 23,601 26,181 28,823 31,597
Non-financial assets          
Land and buildings 71,154 80,841 78,228 75,615 73,002
Property, plant and equipment 1,947 1,900 1,739 1,465 1,077
Hertiage and cultural assets 130 139 148 157 165
Total non-financial assets 73,231 82,880 80,115 77,237 74,244
Total assets 105,824 106,481 106,296 106,060 105,841
LIABILITIES          
Payables          
Suppliers 1,204 1,398 1,421 1,379 1,353
Total payables 1,204 1,398 1,421 1,379 1,353
Provisions          
Employee provisions 3,652 4,114 3,904 3,709 3,515
Total provisions 3,652 4,114 3,904 3,709 3,515
Total liabilities 4,856 5,512 5,325 5,088 4,868
Net assets 100,968 100,969 100,971 100,972 100,973
EQUITY*          
Parent entity interest 88,081 88,081 88,081 88,081 88,081
Contributed equity          
Retained surplus (accumulated deficit) 12,887 12,888 12,890 12,891 12,892
Total equity 100,968 100,969 100,971 100,972 100,973

Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2011–12)
 
Retained earnings
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2011      
Balance carried forward from previous period 12,887 88,081 100,968
Surplus (deficit) for the period 1 - 1
Estimated closing balance as at 30 June 2012 12,888 88,081 100,969
Closing balance attributable to the Australian Government 12,888 88,081 100,969

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
OPERATING ACTIVITIES          
Cash received          
Accomodation charges 11,795 12,182 11,879 11,538 10,966
Appropriations 38,476 38,481 38,555 38,694 38,896
Interest 892 827 777 727 677
Grants and subsidy 7,060 7,079 5,285 3,491 1,898
Net GST received 3,000 3,000 3,000 3,000 3,000
Other 512 527 543 559 576
Total cash received 61,735 62,096 60,039 58,009 56,013
Cash used          
Employees 27,027 27,064 26,295 24,976 23,677
Suppliers 25,590 25,086 24,237 23,479 22,640
Grants 6,400 6,368 6,341 6,325 6,328
Total cash used 59,017 58,518 56,873 54,780 52,645
Net cash from (used by)          
operating activities 2,718 3,578 3,166 3,229 3,368
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 578 12,577 576 577 577
Net cash from (used by) investing activities 578 12,577 576 577 577
           
FINANCING ACTIVITIES          
Cash received          
Appropriation Contributed - equity 6,920 - - - -
Net cash from (used by) financing activities 6,920 - - - -
Net increase (decrease) in cash held          
Cash and cash equivalents at the beginning of the reporting period      
Effect of exchange rate movements on cash and cash equivalents at the beginning of reporting period      
Cash and cash equivalents at the end of the reporting period      
Net increase or (decrease) in cash held 9,060 -8,999 2,590 2,652 2,791
           
Cash at the beginning of the reporting period 31,374 22,373 24,963 27,615 30,406
Cash at the end of the reporting period 31,374 22,373 24,963 27,615 30,406

Table 3.2.5: Departmental capital budget statement
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
CAPITAL APPROPRIATIONS          
Equity injections - Bill 2 6,920 - - - -
Total capital appropriations 6,920 - - - -
Total new capital appropriations          
Represented by:          
Purchase of non-financial assets 6,920 - - - -
Total Items 6,920 - - - -
PURCHASE OF NON-FINANCIAL          
ASSETS          
Funded by capital appropriations 6,920 - - - -
Funded internally from departmental resources2 - - - - -
TOTAL 6,920 - - - -
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases 6,920 - - - -
Total cash used to acquire assets 6,920 - - - -

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2011–12)
 
Land
$'000
Buildings
$'000
Other property, plant and equipment
$'000
Heritage and cultural assets
$'000
Total
$'000
As at 1 July 2011          
Gross book value 5,645 92,528 3,076 148 101,397
Accumulated depreciation/amortisation and impairment - 27,019 1,129 18 28,166
Opening net book balance 5,645 65,509 1,947 130 73,231
CAPITAL ASSET ADDITIONS          
Estimated expenditure on new or replacement assets          
By purchase - appropriation equity 1          
By purchase - appropriation ordinary annual services 2   1,524 406 1 1,931
By purchase - donated funds          
By purchase - other   10,476 162 9 10,647
Total additions   12,000 568 10 12,578
           
Other movements          
Depreciation/amortisation expense   2,313 615 1 2,929
As at 30 June 2012          
Gross book value 5,645 104,528 3,644 158 113,975
Accumulated depreciation/amortisation and impairment - 29,332 1,744 19 31,095
Closing net book balance 5,645 75,196 1,900 139 82,880

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 Standards and other 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 2010–11.

Reference should be made to AHL's Annual Report for 2011–12 for detailed disclosure of the AHL's accounting policies.

Indigenous Business Australia

Agency resources and planned performance

Indigenous Business Australia

Section 1: Agency overview and resources

Section 2: Outcomes and program performance

Section 3: Explanatory tables and budgeted financial statements

Indigenous Business Australia

Section 1: Agency overview and resources

The planned outcome of Indigenous Business Australia (IBA) is stimulating the economic advancement of Aboriginal and Torres Strait Islander peoples.

1.1 Strategic direction statement

IBA's vision is for a nation in which the First Australians are economically independent and an integral part of the economy. Under its legislation, 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:

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

1.2 Agency resource statement

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

Table 1.1: IBA resource statement—Budget estimates for 2011–12 as at Budget May 2011
Source
Estimate of prior year amounts available in
2011-12

$'000
+
Proposed at Budget
2011-12

$'000
=
Total estimate
2011-12

$'000
Actual available appropriation
2010-11

$'000
             
Opening Balance/Reserves at Bank -   -   - -
             
REVENUE FROM GOVERNMENT            
Ordinary Annual Services1            
Outcome 1
Indigenous Business Australia
-   38,923   38,923 38,458
             
Total ordinary annual services -   38,923   38,923 38,458
             
Other services2            
Non-Operating -   33,170   33,170 33,170
             
Total other services -   33,170   33,170 33,170
             
Total Annual Appropriations -   72,093   72,093 71,628
             
Payments from related entities3            
Amounts from the portfolio department -   -   - -
Total -   -   - -
Total Funds from Government -   72,093   72,093 71,628
FUNDS FROM OTHER SOURCES            
Interest -   52,978   52,978 49,866
Dividends -   -   - -
Sale of goods and services -   61,116   61,116 60,561
Rents -   13,153   13,153 12,471
Unwind Concessional Loan Discount -   -   - -
Net gain on sale of assets -   26   26 25
Other -   959   959 1,076
Total -   128,232   128,232 123,999
Total net resourcing for IBA -   200,325   200,325 195,627

1Appropriati on Bill (No.1) 2011-12.

2Appropriation Bill (No.2) 2011-12.

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

Note: 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 IBA and are considered 'departmental' for all purposes.

All figures are GST exclusive.

1.3 Budget measures

Budget measures relating to IBA are detailed in Budget Paper No. 2 and are summarised below.


Table 1.2 IBA 2011–12 Budget measures

 
 
Program
2011–12
$'000
2012–13
$'000
2013–14
$'000
2014–15
$'000
Expense measures          
Outcome 1          
Efficiency dividend – temporary increase in the rate1 1.1        
Administered expenses   - - - -
Departmental expenses   (198) (394) (489) (595)
Total   (198) (394) (489) (595)
Total expense measures          
Administered   - - - -
Departmental   (198) (394) (489) (595)
Total   (198) (394) (489) (595)

Prepared on a Government Financial Statistics (fiscal) basis

1This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

Section 2: Outcomes and program 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. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to Government outcomes over the Budget and forward years.

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

Outcome 1

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

Outcome 1 strategy

IBA utilises a suite of commercially focused Indigenous economic development programs to enhance Indigenous economic self sufficiency. IBA delivers flexible and concessional interest rate loan products and aftercare support to improve Indigenous home ownership in towns and cities and on Indigenous held 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 partners with Indigenous individuals and groups, co-investing in joint venture projects that provide both commercial returns and a direct transfer of business skills and acumen to Indigenous partners.

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

Outcome 1 expense statement

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

Table 2.1: Budgeted expenses for Outcome 1
Outcome 1:

2010-11
Estimated actual expenses
$'000

2011-12
Estimated expenses
$'000
Program 1.1: Equities and Investments    
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) - -
Revenues from other independent sources 75,560 75,915
Subtotal for Program 1.1 75,560 75,915
Program 1.2: Home Ownership Program    
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) 7,618 7,732
Revenues from other independent sources 34,385 36,942
Expenses not requiring Appropriation in the Budget year 14,693 -
Subtotal for Program 1.2 56,696 44,674
Program 1.3: Business Development Program    
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) 23,428 23,773
Revenues from other independent sources 4,039 3,808
Expenses not requiring Appropriation in the Budget year 5,386 7,187
Subtotal for Program 1.3 32,853 34,768
     
Program 1.4: Home Ownership on Indigenous Land    
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) 7,412 7,418
Revenues from other independent sources 2,135 2,560
Subtotal for Program 1.4 9,547 9,978
Outcome 1 totals by appropriation type:    
Departmental expenses    
Ordinary annual services (Appropriation Bill No. 1) 38,458 38,923
Revenues from other independent sources 116,119 119,225
Expenses not requiring Appropriation in the Budget year 20,079 7,187
Total expenses for Outcome 1 174,656 165,335
  2010-11 2011-12
Average Staffing Level (number) 234 231

Contributions to Outcome 1

Program 1.1: Equity and Investments
Program objective

IBA Investments' objective is to assist and develop Indigenous Australians to achieve economic independence through direct investment and participation in commercial and joint venture business enterprises.

Program 1.1 expenses

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

Table 2.1.1: Budgeted expenses for Equity and Investments
Program expenses ('000)

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Total departmental expenses 75,560 75,915 66,316 68,739 71,833
Total program expenses 75,560 75,915 66,316 68,739 71,833
Program 1.1 deliverables

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

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


Equity and Investments key performance indicators targets
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Percentage return on investment

8%

9%

9%

9%

9%

Indigenous co-investors

5

5

7

7

7

Distribution to Inidigenous partners

3%

3%

3%

3%

3%

Increase in percentage of Indigenous jobs created or supported by investment portfolio

3%

3%

3%

3%

3%

Program 1.2: Home Ownership Program
Program 1.2 objective

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

Program 1.2 expenses

General program administrative expenses should remain constant into the budgeted out years. The interest component of loan repayments has increased since mid 2010 as a result of loan interest rates moving in line with official interest rates and the increasing number of loans as a result of the additional $56 million capital funds transferred into the program in 2010-11. Early loan discharges have decreased, which is a normal consequence in times of economic uncertainty and rising interest rates. The Total Departmental Expenses has decreased as a result of projected changes in the Fair Value impairment write-down on the loan portfolio.

Table 2.1.2: Budgeted expenses for Home Ownership Program
Program expenses ('000)

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Total departmental expenses 56,696 44,674 45,983 47,346 48,770
Total program expenses 56,696 44,674 45,983 47,346 48,770
Program 1.2 deliverables

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


Home Ownership Program deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of new Home Loans

530

400

360

350

340

Aggregate loans in the portfolio

3,550

3,670

3,750

3,820

3,960

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.


Home Ownership Program key performance indicators targets
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Number of loans to applicants who have an adjusted combined gross annual income of not more than 125% of IBA's Income Amount

75% of loans

75% of loans

75% of loans

75% of loans

75% of loans

Number of loans to applicants who are first home buyers

80% of loans

80% of loans

80% of loans

80% of loans

80% of loans

Program 1.3: Business Development and Assistance
Program 1.3 objective

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

This objective is achieved primarily through providing affordable business loans and other support to clients to assist them to successfully enter into business. Support is also provided to existing businesses to grow or improve aspects of their management or performance, thus improving their prospects for long-term success.

Program 1.3 expenses

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

Table 2.1.3: Budgeted expenses for Business Development and Assistance
Program expenses ('000)

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Total departmental expenses 32,853 34,768 35,717 36,737 37,850
Total program expenses 32,853 34,768 35,717 36,737 37,850
Program 1.3 deliverables

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


Business Development and Assistance deliverables targets
Deliverables
2010–11
Revised budget
2011–12
Budget Target
2012–13
Forward year 1
2013–14
Forward year 2
2014–15
Forward year 3

Number of new loans approved

70

70

70

70

70

Number of businesses or prospective businesses provided with business advice or support

450

450

450

450

450

Number of participants that attended into business workshops

275

275

275

275

275

Number of Strategic Economic Development Initiatives

30

15

15

15

15

Number of jobs created/supported through IBA loan funding

150

180

200

200

200

Number of active loans in the portfolio

310

320

330

330

330

Program 1.3 key performance indicators

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


Business Development and Assistance key performance indicators targets
Key performance indicators
2010–11
Revised budget
2011–12
Budget target
2012–13
Forward  year 1
2013–14
Forward  year 2
2014–15
Forward  year 3

Percentage of loan accounts that were successfully finalised through loan repayment

75%

70%

80%

80%

80%

Percentage of loan clients still in business 12 months after commencing business

80%

80%

80%

80%

80%

Percentage of loan clients still in business 2 years after commencing business

70%

70%

70%

70%

70%

Percentage of loan clients still in business 3 years after commencing business

55%

55%

55%

55%

55%

Program 1.4: Home Ownership on Indigenous Land
Program 1.4 objective

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

Program 1.4 expenses

Implementation of the Home Ownership on Indigenous Land (HOIL) Program has been slower than anticipated, due to the complex issues which arise in relation to enabling long term transferable tenure on Indigenous held land and the limited familiarity among remote residents of the benefits and obligations of home ownership. Preparations for home ownership will continue in 2011-12 in the Northern Territory in communities where Township Leases have been finalised and in some Queensland DOGIT communities which will have implemented appropriate policies, procedures and systems that complement the land tenure reforms.

Table 2.1.4: Budgeted expenses for Home Ownership on Indigenous Land
Program expenses ('000)

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Total departmental expenses 9,547 9,978 10,248 10,540 10,859
Total program expenses 9,547 9,978 10,248 10,540 10,859
Program 1.4 deliverables44

The key program deliverables are the provision of home loans to Indigenous individuals and families on community titled land together with education about and promotion of home ownership and facilitation of the legal and administrative arrangements which enable parcels of land to be offered for sale to individual community members.

Program 1.4 key performance indicators44

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

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

Indigenous Business Australia has no administered funds.

3.1.2 Special accounts

Indigenous Business Australia has no Special Accounts.

3.1.3 Indigenous Business Australia, 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 2011-12 38,923 33,170 - 72,093 128,232 200,325 All
Departmental 2010-11 38,458 33,170 - 71,628 123,999 195,627 All
Total Outcome 2011-12 38,923 33,170 - 72,093 128,232 200,325 All
Total Outcome 2010-11 38,458 33,170 - 71,628 123,999 195,627 All
Total AGIE 2011-12 38,923 33,170 - 72,093 128,232 200,325 All
Total AGIE 2010-11 38,458 33,170 - 71,628 123,999 195,627 All

* Revenue from other sources is described in Table 1.1

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 2010–11 estimated actual results are used as the comparative year in the analysis.

IBA budgets are prepared on a consolidated basis for the agency and its 35 subsidiaries. On consolidation, assets, liabilities, income and expenditure of all subsidiaries flow through to individual line items in the consolidated budget.

Budgeted Agency Income Statement

IBA is budgeting for an operating deficit of $12.0 million in 2010–11 and an estimated surplus of $2.0 million in 2011–12.

The operating deficit in 2010–11 is primarily driven by high levels of valuation losses on the loan portfolio. IBA loans have concessional interest rates and in line with international accounting standards, the portfolio balances are effectively written-down in IBA's books to reflect a truer market value. Loan settlements in 2010–11 are expected to record a 30% increase over the previous year due to the transfer of $56 million of HOIL capital to the Home Ownership program (HOP). The consequent increased write down of $45 million during the year will result in a net deficit of $12 million.

New loan settlements drop to normal levels in 2011–12 and the impact of the loan write downs is significantly lower at $32 million. The operating results for the budget year is estimated to return to a surplus of $2.0 million.

Budgeted Agency Balance Sheet

Budgeted net assets as at 30 June 2012 of $993 million represents an increase of $36 million over the net assets of $957 million as at 30 June 2011. The main drivers are:

  • continuing capital injections from Government of $33.2 million
  • estimated operating surplus of $2.0 million.

IBA is expected to maintain its steady growth in financial assets, receivables and investments, in line with its objectives of Indigenous economic participation and wealth creation.

Statement of cash flows

Net lending activity is expected to decrease from $91 million 2010–11 to $53 million in 2011–12 with the absorption of additional funds of $56 million transferred from HOIL to HOP in 2010–11. Increased cash generation is expected to be ploughed back into investments.

Statement of changes in equity

Total equity is expected to increase by $36 million to $993 million as at 30 June 2012, with additional equity injection of $33.2 million from the Commonwealth.

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
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
EXPENSES          
Employee benefits 44,933 46,638 47,955 49,320 50,555
Supplier expenses 57,311 58,329 57,012 57,782 58,416
Grants 8,845 11,283 12,583 12,783 12,783
Depreciation and amortisation 5,607 5,588 5,588 5,588 5,588
Finance costs 1,658 1,738 1,738 1,738 1,738
Write-down and impairment of assets 7,612 8,049 3,729 3,749 3,769
Concessional Loan Discount 44,295 32,687 28,636 31,379 35,440
Losses from asset sales 395 8 8 8 8
Other 4,000 1,015 1,015 1,015 1,015
Total expenses 174,656 165,335 158,264 163,362 169,312
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Sale of goods and rendering of services 60,561 61,116 61,116 61,116 62,635
Interest 49,866 52,978 55,492 57,927 60,548
Dividends - - - - -
Rental income 12,471 13,153 13,153 13,153 13,153
Other 213 159 - - -
Total own-source revenue 123,111 127,406 129,761 132,196 136,336
           
Gains          
Sale of assets 25 26 26 26 26
Other 863 800 859 647 660
Total gains 888 826 885 673 686
Total own-source income 123,999 128,232 130,646 132,869 137,022
Net cost of (contribution by) services 50,657 37,103 27,618 30,493 32,290
Revenue from Government 38,458 38,923 38,715 38,413 38,875
Share of operating surplus of          
associates using the equity method 1,667 1,756 1,756 1,756 1,756
Surplus (Deficit) before income tax on continuing operations -(10,532) 3,576 12,853 9,675 8,341
Income tax expense 1,436 1,582 1,582 1,582 1,582
Surplus (Deficit) after income tax on continuing operations -(11,968) 1,994 11,271 8,093 6,759
Surplus (Deficit) attributable to the Australian Government -(11,968) 1,994 11,271 8,093 6,759

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
ASSETS          
Financial assets          
Cash and cash equivalents 107,165 111,844 115,838 116,518 115,794
Trade and other receivables 488,606 500,740 517,154 533,705 550,325
Investments accounted for under          
the equity method 29,031 31,031 33,031 35,031 37,031
Other investments 169,279 190,279 212,279 234,279 256,279
Tax assets 250 250 250 250 250
Other 1,263 1,263 1,263 1,263 1,263
Total financial assets 795,594 835,407 879,815 921,046 960,942
Non-financial assets          
Land and buildings 24,055 22,465 22,472 22,479 22,486
Property, plant and equipment 12,894 10,567 10,588 10,609 10,631
Investment property 152,415 152,415 152,415 152,415 152,415
Intangibles 6,427 6,432 6,437 6,442 6,447
Inventories 2,015 2,015 2,015 2,015 2,015
Total non-financial assets 197,806 193,894 193,927 193,960 193,994
Total assets 993,400 1,029,301 1,073,742 1,115,006 1,154,936
LIABILITIES          
Payables          
Suppliers 7,325 7,325 7,325 7,325 7,325
Other 6,623 6,623 6,623 6,623 6,623
Total payables 13,948 13,948 13,948 13,948 13,948
Interest bearing liabilities          
Loans 12,476 12,476 12,476 12,476 12,476
Total interest bearing liabilities 12,476 12,476 12,476 12,476 12,476
Provisions          
Employee provisions 5,143 5,143 5,143 5,143 5,143
Other 4,892 4,892 4,892 4,892 4,892
Total provisions 10,035 10,035 10,035 10,035 10,035
Total liabilities 36,459 36,459 36,459 36,459 36,459
Net assets 956,941 992,842 1,037,283 1,078,547 1,118,477
EQUITY*          
Parent entity interest          
Contributed equity 751,844 785,014 818,184 851,354 884,524
Reserves 10,212 10,765 10,765 10,765 10,765
Retained surplus          
(accumulated deficit) 170,911 172,814 184,085 192,179 198,939
Total parent entity interest 932,967 968,593 1,013,034 1,054,298 1,094,228
Attributed to Non-Controlling Interest          
Contributed equity 16,866 16,866 16,866 16,866 16,866
Reserves 2,425 2,609 2,609 2,609 2,609
Retained earnings 4,683 4,774 4,774 4,774 4,774
Total non-controlling interest 23,974 24,249 24,249 24,249 24,249
Total Equity 956,941 992,842 1,037,283 1,078,547 1,118,477

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

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2011–12)
 
Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2011          
Balance carried forward from          
previous period 175,594 12,637 - 768,710 956,941
Opening balance adjustment - - - - -
Adjusted opening balance 175,594 12,637 - 768,710 956,941
Comprehensive income          
Comprehensive income recognised          
directly in equity - - - - -
Gain/loss on revaluation of property - 737 - - 737
Sub-total income and expense - 737 - - 737
Surplus (deficit) for the period 1,994 - - - 1,994
Total comprehensive income recognised directly in equity 1,994 737 - - 2,731
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 2012 177,588 13,374 - 801,880 992,842

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 60,561 61,116 61,116 61,116 62,636
Appropriations 38,458 38,923 38,715 38,413 38,875
Interest 49,866 52,978 55,492 57,927 60,548
Dividends - - - - -
Net GST received - - - - -
Other 13,572 14,137 14,038 13,826 13,839
Total cash received 162,457 167,154 169,361 171,282 175,897
Cash used          
Employees 44,933 46,638 47,955 49,321 50,555
Suppliers 56,296 58,329 57,012 57,782 58,416
Grants 8,845 11,283 12,583 12,783 12,783
Net GST paid 1,436 1,582 1,582 1,582 1,582
Other 6,052 2,761 2,761 2,761 2,761
Total cash used 117,562 120,593 121,893 124,229 126,097
Net cash from (used by) operating activities 44,895 46,561 47,468 47,053 49,800
INVESTING ACTIVITIES          
Cash received          
Proceeds from sales of property, plant and equipment - - - - -
Investments 10,181 - - - -
Other- repayment of loans 65,140 67,250 68,150 69,175 70,050
Total cash received 75,321 67,250 68,150 69,175 70,050
Cash used          
Purchase of property, plant          
and equipment 12,780 1,676 5,621 5,621 5,621
Purchase of non-financial assets 122 - - - -
Investments - 20,508 22,244 22,243 22,244
Other - loans / advances 156,101 120,118 116,929 120,854 125,879
Total cash used 169,003 142,302 144,794 148,718 153,744
Net cash from (used by) investing activities -(93,682) -(75,052) -(76,644) -(79,543) -(83,694)
FINANCING ACTIVITIES          
Cash received          
Contributed equity 33,170 33,170 33,170 33,170 33,170
New borrowing 329 - - - -
Other 2,278 - - - -
Total cash received 35,777 33,170 33,170 33,170 33,170
Cash used          
Repayments of borrowings - - - - -
Dividends paid - - - - -
Other - - - - -
Total cash used - - - - -
Net cash from (used by) financing activities 35,777 33,170 33,170 33,170 33,170
Net increase (decrease) in cash held -(13,010) 4,679 3,994 680 -(724)
Cash and cash equivalents at the beginning of the reporting period 120,175 107,165 111,844 115,838 116,518
Cash and cash equivalents at the          
end of the reporting period 107,165 111,844 115,838 116,518 115,794

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 (BCD)          
Equity injections - Bill 2 33,170 33,170 33,170 33,170 33,170
Total capital appropriations 33,170 33,170 33,170 33,170 33,170
Total new capital appropriations          
Represented by:          
Other 33,170 33,170 33,170 33,170 33,170
Total represented by 33,170 33,170 33,170 33,170 33,170
PURCHASE OF NON-FINANCIAL ASSETS          
Funded internally by          
Departmental resources 12,780 1,676 5,621 5,621 5,621
Total 12,780 1,676 5,621 5,621 5,621

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2011–12)
 
Buildings
$'000
Other property, plant and equipment
$'000
Investment property
$'000
Intangibles
$'000
Other
$'000
Total
$'000
As at 1 July 2011            
Gross book value 25,378 38,365 152,415 7,971 3,528 227,657
Accumulated depreciation/amortisation            
and impairment 4,148 22,550 - 1,640 - 28,338
Opening net book balance 21,230 15,815 152,415 6,331 3,528 199,319
CAPITAL ASSET ADDITIONS            
Estimated expenditure on            
new or replacement assets            
By purchase - Government fundimg            
By purchase - donated funds            
By purchase - other 1,258 214   204 - 1,676
By finance lease            
Assets received as gifts/donations            
From acquisition of entities or operations (including restructuring)            
Total additions 1,258 214 - 204 - 1,676
Other movements            
Assets held for sale or in a disposal group held for sale            
Depreciation/amortisation expense 23 5,462 - 103 - 5,588
Disposals 1            
From disposal of entities or operations            
(including restructuring)            
Other            
As at 30 June 2012            
Gross book value 26,636 38,579 152,415 8,175 3,528 229,333
Accumulated depreciation/amortisation            
and impairment 4,171 28,012 - 1,743 - 33,926
Closing net book balance 22,465 10,567 152,415 6,432 3,528 195,407

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 building held for investment are carried at fair value.

Indigenous Land Corporation

Agency resources and planned performance

Indigenous Land Corporation

Section 1: Agency overview and resources 263

Section 2: Outcomes and program performance 268

Section 3: Explanatory tables and budgeted financial statements 275

Indigenous Land Corporation

Section 1: Agency overview and resources

1.1 Strategic direction statement

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 has three priorities for the achievement of Indigenous benefits through acquiring and managing land:

  • access to and protection of cultural and environmental values
  • socio-economic development
  • access to education.

The ILC's primary source of income is an annual payment of $45 million indexed 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 Board is the ILC's primary decision making body and sets out the ILC's strategic direction, policies and strategies in the National Indigenous Land Strategy 2007–12. The Board oversees governance of the ILC's administration, considers land acquisition and land management proposals, and monitors performance.

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

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

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: ILC resource statement—Budget estimates for 2011–12 as at Budget May 2011
Source
Estimate of prior year amounts available in
2011-12

$'000
+
Proposed at Budget
2011-12

$'000
=
Total estimate
2011-12

$'000
Actual available appropriation
2010-11

$'000
Opening balance/Reserves at bank 73,740       73,740  
REVENUE FROM GOVERNMENT            
Ordinary annual services1            
Outcome 1     9,771   9,771 9,706
Total ordinary annual services     9,771   9,771 9,706
Special Accounts (portfolio agency)            
Aboriginal and Torres Strait Islander Land Account2   46,215   46,215 45,000
Total Special Account     46,215   46,215 45,000
Total funds from Government     55,986   55,986 54,706
FUNDS FROM OTHER SOURCES            
Interest     35,632   35,632 6,433
Other     4,106   4,106 4,106
Total     39,738   39,738 10,539
Total net resourcing for agency 73,740   95,724   169,464 65,245

All figures are GST exclusive.

CRF - Consolidated Revenue Fund

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

1 Appropriati on Bill (No.1) 2011-12.

2 A CAC Act body may receive payment from a special account held by an FMA Act agency. The CAC Act body does not hol d the special account itself and therefore does not have a balance carried forward from earlier years.

Third party payments from and on behalf of other agencies
 

2011-12

$'000

2010-11

$'000
 
Payments made on behalf of other agencies       0 0
(disclosed in the respective Agency Resource Statement)          
Receipts received from other agencies for the provision of services   9,805 9,771
(disclosed above within Departmental section 31)          
Payments made by other agencies on behalf of the ILC       0 0
(disclosed above)            
Payments made to other agencies for the provision of services   0 0
(disclosed above)            
Payments made to CAC bodies within the Portfolio       0 0
    9,805 9,771

All figures are GST exclusive.

1.3 Budget measures


Table 1.2: ILC 2011–12 Budget measures
 
Program
2011–12
$'000
2012–13
$'000
2013–14
$'000
2014–15
$'000
Expense measures          
Outcome 1          
Efficiency dividend – temporary increase in the rate1 1.1        
Administered expenses   - - - -
Departmental expenses   (50) (99) (123) (148)
Total   (50) (99) (123) (148)
Total expense measures          
Administered   - - - -
Departmental   (50) (99) (123) (148)
Total   (50) (99) (123) (148)

Prepared on a Government Financial Statistics (fiscal) basis

1This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

Section 2: Outcomes and program 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. Commonwealth programs are the primary vehicle by which the government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

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

Provide access to and protection and maintenance of land with cultural and environmental values

The ILC recognises the importance of land to Indigenous peoples' cultural identity. Indigenous people can apply for assistance with land acquisition and management of land with cultural and environmental significance, and to protect and maintain the cultural and environmental values of land.

Deliver socio-economic outcomes for Indigenous people

The ILC assists projects that deliver social and economic outcomes for Indigenous Australians. Priority is given to projects that provide sustainable employment and training that leads to employment. The ILC believes that sustained employment creates a range of benefits for Indigenous people, including increased standards of living, income and improved health and wellbeing.

In 2011–12 the ILC will call for applications that achieve these outcomes, including assisting Indigenous landholders to develop viable businesses and sustainably manage their land. In addition, the ILC will continue to operate employment and training projects on agricultural and tourism businesses to host Indigenous trainees and transition them to employment.

Provide Indigenous youth access to education

The ILC believes that education is crucial to overcoming Indigenous disadvantage and is committed to collaborating with responsible agencies, including DEEWR and FaHCSIA, to establish projects that assist young Indigenous people, especially in remote and regional Australia, to access education. In 2011–12, the ILC will continue to collaborate with other agencies to acquire land, and/or establish student hostels on Indigenous-held land, to assist Indigenous students to gain access to education.

Aligning with Government priorities

In pursuing achievements against these priorities, the ILC seeks to 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; and halving the gap for Indigenous students in Year 12 attainment or equivalent attainment rates by 2020.

Indigenous owned or controlled land is included in the Overcoming Indigenous Disadvantage Report (2009) as an indicator of economic participation and development and of the social and cultural relationship between Indigenous people and their land. In 2009, Indigenous owned or controlled land comprised 17.3 per cent of the area of Australia (excluding native title lands). Approximately 4.7 per cent of Indigenous-held land in Australia has been acquired by the ILC.

Outcome 1 expense statement

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

Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Enhanced social-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management

2010-11
Estimated actual expenses
$'000

2011-12
Estimated expenses
$'000
Program 1.1: Assistance in the acquisition and management of an indigenous land base.    
Revenue from Government    
Ordinary annual services (Appropriation Bill No. 1) 9,805 9,771
Payment from related entities - 29,800
Special Accounts 45,000 46,215
Revenues from other independent sources 10,539 9,938
Total for Program 1.1 65,344 95,724
Outcome 1 Totals by resource type    
Revenue from Government    
Ordinary annual services (Appropriation Bill No. 1) 9,805 9,771
Payment from related entities - 29,800
Special Accounts 45,000 46,215
Revenues from other independent sources 10,539 9,938
Total expenses for Outcome 1 65,344 95,724
  2010-11 2011-12
Average Staffing Level (number) 213 215

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

Contributions to Outcome 1

Program 1: Acquisition and Management of an Indigenous Land Base

Program 1 objective

To assist Indigenous people to acquire and manage land to achieve economic, environmental, social and cultural benefits.

Program component objectives
Cultural and environmental heritage protection
  • To acquire and grant land to Indigenous organisations for the purposes of environmental heritage protection and maintenance of culture
  • To provide land management assistance to Indigenous landholders to support them in protecting and maintaining cultural and environmental heritage
Socio-economic development
  • To acquire and grant land to Indigenous organisations to enable Indigenous people to achieve training, employment and social outcomes
  • To operate agricultural and tourism businesses that train Indigenous people and assist them to transition to secure jobs
Education
  • To collaborate with other agencies to acquire land, and/or establish student hostels on Indigenous-held land, to assist secondary students to gain access to education
Program 1 expenses

The ILC's primary source of income is an annual payment of $45 million indexed from the Land Account pursuant to s193C (3) of the ATSI Act. In addition to the annual payment from the Land Account, the ILC has cash reserves which have accumulated from past years that it can use to carry out its functions.

Table 2.1.1 Budgeted expenses for Acquisition and Management of an Indigenous Land Base
 

2010-11
Revised budget
$'000

2011-12
Budget
$'000

2012-13
Forward year 1
$'000

2013-14
Forward year 2
$'000

2014-15
Forward year 3
$'000
Special Account Expenses:          
Aboriginal and Torres Strait Islander Land Account 58,500 69,285 64,170 65,253 67,030
Annual departmental expenses:          
Departmental item - CDEP Jobs Packages 9,805 9,771 9,706 9,683 9,658
Total program expenses 68,305 79,056 73,876 74,936 76,688
Program 1 deliverables

The ILC assists Indigenous corporations to acquire land, and Indigenous landholders to manage and use their land, to achieve benefits for Indigenous people. The ILC seeks to achieve the following deliverables.

Acquisition and Management of an Indigenous Land Base deliverables targets
Deliverables

2010-11
Revised budget

2011-12
Budget

2012-13
Forward year 1

2013-14
Forward year 2

2014-15
Forward year 3
Properties acquired for socio-economic devleopment and cultural and environmental heritage protection 6 6 6 6 6
Properties granted 14 10 10 10 10
Employment and training projects implemented on ILC agricultural and tourism businesses 12 11 11 11 11
Properties acquired and/or secondary student hostels established - 3 1 - -
Regional land management projects implemented 18 15 15 15 15
Property-based, property planning and training land management projects assisted 47 30 30 30 30
Program 1 key performance indicators

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

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

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

Acquisition and Management of an Indigenous Land Base key performance indicators targets
Key Performance Indicators

2010-11
Revised budget

2011-12
Budget target

2012-13
Forward year 1

2013-14
Forward year 2

2014-15
Forward year 3
Total number of Indigenous staff employed directly through ILC agricultural and tourism businesses 178 281 341 391 441
Total number of Indigenous trainees hosted through ILC agricultural and tourism businesses 200 240 250 260 280
Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects 300 300 300 300 300
Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects 800 600 600 600 600
Increase in the number of Indigenous youth in regional Australia accessing education through hostels established by the ILC and other agencies - 110 180 210 240
Total number of Indigenous-held properties with improved land management 180 100 100 100 100
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 66% 66% 66% 66% 66%

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the Budget year 2011–12. 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 2011–12 Budget.

3.1.2 Special accounts

ILC has no special accounts in the 2011–12 Budget.

3.1.3 Indigenous Land Corporation, 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)
IndigenousLand Corporation              
Outcome 1              
Administered 2011-12 - - - - - -  
Administered 2010-11 - - - - - -  
Departmental 2011-12 9,771 - - - 85,953 95,724 1
Departmental 2010-11 9,805 - - - 55,539 65,344 1
Total outcome 2011-12 9,771 - - - 85,953 95,724  
Total outcome 2010-11 9,805 - - - 55,539 65,344  
Total administered 2011-12 - - - - - -  
Total administered 2010-11 - - - - - -  
Total departmental 2011-12 9,771 - - - 85,953 9,771  
Total departmental 2010-11 9,805 - - - 55,539 65,344  
Total AGIE 2011-12 9,771 - - - 85,953 9,771  
Total AGIE 2010-11 9,771 - - - 55,539 65,310  

* Revenue from other sources is described in Table 1.1

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

The ILC's primary source of income is an annual payment of $45 million indexed from the Land Account pursuant to s193C (3) of the ATSI Act. In addition to the annual payment from the Land Account, the ILC has cash reserves which have accumulated from past years that it can use to carry out its functions.

Estimated payments from the Land Account from 2010–11 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: comprehensive income statement (showing net cost of services) (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
EXPENSES          
Employee benefits 11,288 12,190 13,043 13,695 14,585
Supplier expenses 52,617 52,009 50,363 50,771 51,633
Depreciation and amortisation 1,500 1,500* 1,500* 1,500* 1,500*
Finance costs 2,900 13,357* 8,970* 8,970* 8,970*
Other - -      
Total expenses 68,305 79,056 73,876 74,936 76,688
           
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Interest 6,433 35,632 32,200 35,020 35,122
Other 49,106 50,321 51,615 52,993 57,158
Total own-source revenue 55,539 85,953 83,815 88,013 92,280
           
Gains          
Sale of assets - - - - -
Other - - - - -
Total gains - - - - -
Total own-source income (12,766) 6,897 9,939 13,077 15,592
Net cost of (contribution by) services          
Revenue from Government 9,805 9,771 9,706 9,683 9,658
Surplus (Deficit)          
Surplus (Deficit) attributable to the Australian Government (2,961) 16,668 19,645 22,760 25,250
OTHER COMPREHENSIVE INCOME          
Changes in asset revaluation reserves - - - - -
Total other comprehensive income - - - - -
Total comprehensive income (2,961) 16,668 19,645 22,760 25,250
Total comprehensive income attributable to the Australian Government (2,961) 16,668 19,645 22,760 25,250

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
ASSETS          
Financial assets          
Cash and cash equivalents 73,740 25,408 16,853 8,593 0
Trade and other receivables 3,629 3,629 3,629 3,629 3,629
Other investments 2,000 2,000 2,000 2,000 2,000
Other 298,746 282,746 310,946 341,966 376,088
Total financial assets 378,115 313,783 333,428 356,188 381,717
Non-financial assets          
Property, plant and equipment 84,075 83,075 83,075 83,075 83,075
Intangibles 292 292 292 292 292
Inventories 174,267 198,067 198,067 198,067 198,067
Other 8,463 8,463 8,463 8,463 8,463
Total non-financial assets 267,097 289,897 289,897 289,897 289,897
Assets held for sale 1,876 1,876 1,876 1,876 1,876
Total assets 647,088 605,556 625,201 647,961 673,490
LIABILITIES          
Payables          
Suppliers 5,482 5,482 5,482 5,482 5,761
Other 23,035 45,835 45,835 45,835 45,835
Total payables 28,517 51,317 51,317 51,317 51,596
Interest bearing liabilities          
Loans 219,000 138,000 138,000 138,000 138,000
Total interest bearing liabilities 219,000 138,000 138,000 138,000 138,000
Provisions          
Employee provisions 2,824 2,824 2,824 2,824 2,824
Other 117,606 117,606 117,606 117,606 117,606
Total provisions 120,430 120,430 120,430 120,430 120,430
Total liabilities 367,947 309,747 309,747 309,747 310,026
Net assets 279,141 295,809 315,454 338,214 363,464
EQUITY*          
Parent entity interest          
Reserves 3,665 3,665 3,665 3,665 3,665
Retained surplus (accumulated deficit) 275,476 292,144 311,789 334,549 359,799
Total parent entity interest 279,141 295,809 315,454 338,214 363,464
Total Equity 279,141 295,809 315,454 338,214 363,464

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

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity–summary of movement (Budget year 2011–12)
 
Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2011          
Balance carried forward from previous period 275,476 3,665 - - 279,141
Adjusted opening balance 275,476 3,665 - - 279,141
Comprehensive income          
Other comprehensive income - - - - -
Surplus (deficit) for the period 16,668 - - - 16,668
Total comprehensive income 16,668 - - - 16,668
of which:          
Attributable to the Australian Government 16,668 - - - 16,668
Attributable to non-controlling interest* - - - - -
Transactions with owners          
Distributions to owners          
Returns on capital: - - - - -
Dividends          
Returns of capital: - - - - -
Restructuring          
Other - - - - -
Contributions by owners          
Contribution/(Distribution) of Equity - - - - -
Appropriation (equity injection) - - - - -
Departmental Capital Budget (DCBs) - - - - -
Other - - - - -
Restructuring - - - - -
Sub-total transactions with owners - - - - -
           
Transfers between equity components - - - - -
Estimated closing balance as at 30 June 2012 292,144 3,665 - - 295,809
Less: non-controlling interests * - - - - -
Closing balance attributable to the Australian Government 292,144 3,665 - - 295,809

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 3,500 3,500 3,500 3,500 6,000
Appropriations 9,805 9,771 9,706 9,683 9,658
Revenue from Land Account 45,000 46,215 47,509 48,887 50,158
Interest 6,433 35,632 4,000 4,000 1,000
Net GST received 5,262 5,206 5,046 5,089 5,178
Other 606 606 606 606 1,279
Total cash received 70,606 100,930 70,367 71,765 73,273
Cash used          
Employees 11,288 12,190 13,043 13,695 14,585
Suppliers 57,879 57,215 55,409 55,860 56,811
Borrowing costs 2,900 13,357 8,970 8,970 8,970
Total cash used 72,067 82,762 77,422 78,525 80,366
Net cash from (used by) operating activities (1,461) 18,168 (7,055) (6,760) (7,093)
INVESTING ACTIVITIES          
Cash received          
Proceeds from sales of financial instruments 24,926 - - - -
Total cash received 24,926 - - - -
Cash used          
Purchase of property, plant and equipment 81,500 1,500 1,500 1,500 1,500
Total cash used 81,500 1,500 1,500 1,500 1,500
Net cash from (used by) investing activities (56,574) (1,500) (1,500) (1,500) (1,500)
FINANCING ACTIVITIES          
Cash received          
Proceeds from issuing financial instruments - 16,000 - - -
Total cash received - 16,000 - - -
Cash used          
Repayments of borrowings - 81,000 - - -
Total cash used - 81,000 - - -
Net cash from (used by) financing activities - (65,000) - - -
Net increase (decrease) in cash held (58,035) (48,332) (8,555) (8,260) (8,593)
Cash and cash equivalents at the beginning of the reporting period 131,775 73,740 25,408 16,853 8,593
Cash and cash equivalents at the end of the reporting period 73,740 25,408 16,853 8,593 -

Prepared on Australian Accounting Standards basis.

 

Table 3.2.5: Departmental capital budget statement
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
           
PURCHASE OF NON-FINANCIAL ASSETS        
Funded by capital appropriations - - - - -
Funded by capital appropriation - DCB1 - - - - -
Funded by finance leases - - - - -
Funded internally from departmental resources2 81,500 1,500 1,500 1,500 1,500
TOTAL 81,500 1,500 1,500 1,500 1,500
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases 81,500 1,500 1,500 1,500 1,500
less additions by finance lease - - - - -
less additions by creditors / borrowings - - - - -
plus borrowing / finance costs - - - - -
plus Annual finance lease costs - - - - -
less Gifted assets - - - - -
less s32 / restructuring - - - - -
Total cash used to acquire assets 81,500 1,500 1,500 1,500 1,500

1Does not include annual finance lease costs. Include purchase from current and previous years Departmental Capital Budgets.

2Includes the following sources of funding:
- annual and prior year appropriations
- donations and contributions
- gifts
- internally developed assets
- s31 relevant agency receipts (from FMA agencies only)
- proceeds from the sale of assets.

Prepared on Australian Accounting Standards basis.


Table 3.2.6: Statement of asset movements (2011–12)
 
Other property, plant and equipment
$'000
Intangibles
$'000
Total
$'000
As at 1 July 2011  
Gross book value 96,975 292 97,267
Accumulated depreciation/amortisation and impairment ( 13,900) - ( 13,900)
Opening net book balance 83,075 292 83,367
CAPITAL ASSET ADDITIONS  
Estimated expenditure on new or replacement assets  
By purchase - other 1,500 - 1,500
Total additions 1,500 - 1,500
Other movements
Depreciation/amortisation expense 1,500 - 1,500
As at 30 June 2012  
Gross book value 98,475 292 98,767
Accumulated depreciation/amortisation and impairment ( 15,400) - ( 15,400)
Closing net book balance 83,075 292 83,367

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.

Torres Strait Regional Authority

Agency resources and planned performance

Torres Strait Regional Authority

Section 1: Agency overview and resources

Section 2: Outcomes and program performance

Section 3: Explanatory tables and budgeted financial statements

Torres Strait Regional Authority

Section 1: Agency overview and resources

The planned outcome of the Torres Strait Regional Authority (TSRA) is progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.

1.1 Strategic direction statement

The TSRA is a Commonwealth statutory authority which was established in 1994 under the Aboriginal and Torres Strait Islander Commission Act 1989, now known as the Aboriginal and Torres Strait Islander Act 2005. It is the peak Commonwealth representative body for Torres Strait Islander and Aboriginal people living in the Torres Strait.

The TSRA also performs separate functions under the Native Title Act 1993 as the Native Title Representative Body for the Torres Strait Region.

The TSRA is required under section 142D of the Aboriginal and Torres Strait Islander Act 2005 to formulate and implement a plan to guide the progress of the Torres Strait region. This plan, known as the Torres Strait Development Plan, is updated every four years to be consistent with the term of the TSRA Board.

In 2008–09 the TSRA finalised the Torres Strait Development Plan 2009–13, the fourth development plan since the establishment of the TSRA. The plan outlines seven new or revised TSRA program components (Economic Development; Culture, Art and Heritage; Native Title; Environmental Management; Governance and Leadership; Healthy Communities; Safe Communities), each of which has a number of desired outcomes and associated benefits.

  • The Development Plan and its program components have been informed and driven by the Torres Strait and Northern Peninsula Area Regional Plan 2009–29 and the goals and aspirations of the residents of the Torres Strait.

The Development Plan has also been designed to align with the COAG Building Blocks and to contribute to the Indigenous-specific outcomes of the National Partnership Agreements as outlined in the National Indigenous Reform Agreement.

As the regional Native Title Representative Body (NTRB), the TSRA will continue to direct efforts in 2011–12 to the Regional Sea Claim. The determination will have long-term implications for the region, including the delivery of TSRA program components, as well as short-term implications for TSRA's NTRB activities.

Given its role as the core funding provider for the Community Development Employment Projects (CDEP) Program in the region, the TSRA will be central to the rollout of CDEP reform measures in 2011–12 and beyond.

The Torres Strait Ranger Project will continue to expand over the coming year. This dedicated ranger project will play a central role in the TSRA's Environmental Management Program component, as it will be used to deliver a variety of land and sea management activities identified in the Land and Sea Management Strategy, the Regional Investment Strategy for the Torres Strait, and the Marine Turtle and Dugong Management Plan for each of the participating communities.

A key area of externally focused activity for the TSRA in 2011–12 will be continuing to drive the regional planning process, including formalisation of an Integrated Service Delivery Agreement, to be signed by governments' at all levels working in the region, which will aim to achieve coordinated, integrated delivery of services. The TSRA will also dedicate considerable time to engaging with local stakeholders, informing them of the new Development Plan and associated changes, and supporting their adaptation to the new environment.

Sustainable management of the region's unique natural resources and challenges associated with climate change are considerations and concerns becoming more prominent in, and fundamental to, the design and delivery of TSRA program components. The TSRA's Environmental Management Program component will be increasing its efforts to gather data and raise awareness of climate change and sea-level rise impacts in the region, and will advocate for and support mitigation and adaptation efforts.

1.2 Agency resource statement

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

Table 1.1: TSRA resource statement—Budget estimates for 2011–12 as at Budget May 2011
Source
Estimate of prior year amounts available in
2011-12

$'000
+
Proposed at Budget
2011-12

$'000
=
Total estimate
2011-12

$'000
Actual available appropriation
2010-11

$'000
Opening balance/Reserves at bank 29,623   -   29,623 -
REVENUE FROM GOVERNMENT            
Ordinary annual services1            
Outcome 1: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture -   50,710   50,710 69,758
Total ordinary annual services     50,710   50,710 69,758
Total funds from Government     50,710   50,710 69,758
FUNDS FROM OTHER SOURCES            
Interest -   800   800 800
Other -   7,085   7,085 5,585
Total     7,885   7,885 6,385
Total net resourcing for agency 29,623   58,595   88,218 76,143

1Appropriation Bill (No.1) 2011-12.

All figures are GST exclusive.

Torres Strait Regional Authority is not directly appropriated as it is a CAC Act Body. Appropriations are made to FMA Agency FaHCSIA which are then paid to Torres Strait Regional Authority and are considered "Departmental" for all purposes.

1.3 Budget measures


Table 1.2: TSRA 2011–12 Budget measures
 
Program
2011–12
$'000
2012–13
$'000
2013–14
$'000
2014–15
$'000
Expense measures          
Outcome 1          
Efficiency dividend – temporary increase in the rate1 1.1        
Administered expenses   - - - -
Departmental expenses   (256) (382) (479) (583)
Total   (256) (382) (479) (583)
Total expense measures          
Administered   - - - -
Departmental   (256) (382) (479) (583)
Total   (256) (382) (479) (583)

Prepared on a Government Financial Statistics (fiscal) basis

1This measure is led by the Department of Finance and Deregulation. Further details can be found in Budget Paper 2 under the Cross Portfolio section.

Section 2: Outcomes and program 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. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to Government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the Torres Strait Regional Authority in achieving Government outcomes.

Outcome 1

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

Outcome 1 strategy

The TSRA is continuing with the implementation phase of its new and revised program components, which are focused on the delivery of outcomes and realisation of measurable benefits. The program components aim to contribute to achieving the goals of the Regional Plan 2009–29 and to closing the gap in Indigenous disadvantage.

The Development Plan is an action plan with a focus on delivering outcomes and benefits for the Indigenous people of the Torres Strait region. This and subsequent development plans will contribute to achieving the outcome statement for the TSRA.

The Development Plan is a long term plan which reflects the Governments long term commitment to generational change.

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 expense statement

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

Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture

2010-11
Estimated actual expenses
$'000

2011-12
Estimated expenses
$'000
Program 1: Torres Strait Regional Development    
Revenue from Government    
Ordinary annual services (Appropriation Bill No. 1) 69,758 50,710
Revenues from other independent sources 6,385 7,885
Total for Program 1 76,143 58,595
Outcome 1 Totals by resource type    
Revenue from Government    
Ordinary annual services (Appropriation Bill No. 1) 69,758 50,710
Revenues from other independent sources 6,385 7,885
Total expenses for Outcome 1 76,143 58,595
  2010-11 2011-12
Average Staffing Level (number) 86 107

Contributions to Outcome 1

Program 1.1: Torres Strait Regional Development
Program 1.1 objective

In November 2008, the Torres Strait Regional Authority Board endorsed the following Outcome statement: 'Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.'

Program 1.1 expenses

During 2011–12 TSRA will continue to align the CDEP program in the Torres Strait with the national program through a two-stage approach, with stage two commencing on 1 July 2011.

The reform program will affect 1150 current CDEP participants and will deliver a Work Readiness Service, Community Development and Commonwealth Jobs Package. The Government has committed $53 million over two years 2010–11 and 2011–12 towards Closing the Gap in Indigenous Employment Outcomes by improving access to reformed employment services, building work readiness skills for individuals and enhancing community capacity to engage and develop economically.

Program 1.1 components
Economic Development program component objective

The TSRA will take the lead as a 'Whole of Region Economic Development Solution Broker'. In this role, the TSRA will work in partnership with other government and non-government organisations and individual communities to advance this regional goal and ensure the efficient use of resources. It will aim to:

  • stimulate economic development across the region
  • advance business skills and align training initiatives with regional employment opportunities
  • advance Indigenous ownership and management of industries and enterprises.
Culture, Art and Heritage program component objective

The TSRA will form a Culture, Art and Heritage Program to support the regional outcomes. The aims of the program are to:

  • protect culturally significant sites and artefacts to ensure their longevity
  • revitalise traditional cultural practices (art, dance, language, and storytelling) among communities.
Native Title program component objective

To provide high-quality and culturally appropriate professional services to native title holders and claimants in the Torres Strait Region, to facilitate the securing of legal recognition of native title to land and waters in the Torres Strait and thereby improve opportunities for improved economic, cultural and social participation for Torres Strait Islander and Aboriginal people living in the region.

This program component will:

  • assist traditional owners to obtain legal recognition of native title over land and sea in the Torres Strait Region
  • protect and manage native title rights
  • build the capacity of native title Prescribed Bodies Corporate.
Environmental Management program component objective

The TSRA will play a mix of leading and supporting roles in a number of environmental management initiatives within the Torres Strait.

The primary aims of the program are to:

  • achieve sustainable management of natural resources
  • contribute to the reduction of the ecological and carbon footprint of Torres Strait and Northern Peninsula area residents.
Governance and Leadership program component objective

To help maintain and improve the leadership and governance skills of current and future leaders of the Torres Strait to support development planning and coordination of integrated government service delivery in the Torres Strait Region.

This program component will:

  • involve Indigenous leaders in legislative processes, policies and priorities in terms of setting direction for integrated planning and service delivery
  • involve Indigenous leaders in monitoring progress towards reaching regional goals and outcomes
  • Develop the capacity of current and future leaders across the region and support effective communication between the community and organisations involved in the region.
Healthy Communities program component objective

The TSRA's Healthy Communities Program aims to:

  • monitor and provide strategic policy advice regarding health service delivery in the region and contribute to ensuring that health service levels are equal to the national standard
  • improve the health of Indigenous people living in the region through proactive healthy living initiatives
  • increase Indigenous home ownership.
Safe Communities program component objective

The TSRA will contribute to the safety of communities by:

  • contributing to the development of standards for the provision of all mainstream social services and facilities, including emergency response services, through engagement with responsible agencies
  • undertaking a policy advocacy, monitoring and supporting role with respect to mainstream services, advocating and acting as a solution broker on behalf of communities and the region, using integrated service delivery forums
  • providing direct funding and resource support for some social support services, and infrastructure, facilities and equipment, that contribute to improved safety and accessibility for communities and families (the TSRA will not provide mainstream social or community services).
Program 1.1 deliverables

Over the past year, the TSRA has undertaken a coordination role in bringing together key government agencies to work in partnership towards integrated planning and improved service delivery. The results of those consultations have been refined by elected representatives of TSRA and local government councils into a regional vision and goals statement, the Torres Strait and Northern Peninsular Area Regional Plan 2009–2029. The Regional Plan provides regional goals to guide the strategic policy of all government service providers.

The TSRA is addressing these goals through an integrated portfolio of seven programs as set out on our current 2009–2013 Development Plan.

The program outcomes are all congruent with TSRA's outcome statement. Performance indicators have been identified to show whether progress is being made in achieving outcomes and benefits. The benefits are measurable and meaningful improvements that result from outcomes. Deliverables for each program component as at the publication date of these PB Statements are:

Economic Development program component
  • Increased number of Torres Strait Islander and Aboriginal individuals in non-Community Development Employment Projects (CDEP) employment
  • Increased number of approved TSRA loans
  • Increase in the annual total catch of marine resources (finfish and Kaiar (tropical rock lobster) by Torres Strait Islander and Aboriginal people
  • Increase in the participation of Torres Strait Islander and Aboriginal people in industry training
Culture, Art and Heritage program component
  • Increased number of professionally active Torres Strait Islander and Aboriginal artists and active art centres in the region
  • Increased capacity and capability to facilitate cultural initiatives and projects
  • Increased profile of Torres Strait Islander and Aboriginal arts and culture
  • Increased community involvement in the preservation of cultural heritage
Native Title program component
  • Provide legal, policy and advocacy support for Prescribed Bodies Corporate
  • Support native title activities, including determination of claims and provision of legal advice and support
  • Negotiate and execute Indigenous Land Use Agreements and other statutory agreements and provide legal advice and support in relation to future Acts
Environmental Management program component
  • Continue the existing Fisheries Project
  • Continue to implement the Land Project
  • Continue and expand the Land and Sea Rangers Project
  • Continue to implement a Climate Change / Coastal Erosion Project
  • Strengthening cultural heritage
  • Information sharing and research activities
Governance and Leadership program component

Continue to deliver:

  • Integrated Service Delivery - Implementation
  • Governance and Leadership Capacity Building
  • Support to Indigenous Broadcasting
  • Enhanced Support for Women in Leadership
  • Support to Prescribed Bodies Corporate
  • Review of the TSRA role as the Native Title Representative Body
  • Support to the 2012 TSRA Board Election
  • TSRA Executive Committee Support
Healthy Communities program component

Healthy homes initiatives:

  • Funding contributions towards community, market garden and horticulture initiatives in conjunction with the Environmental Management Program
  • Engaging with food suppliers/retailers to explore improved healthy food options

Healthy lifestyles initiatives:

  • Monitoring and provision of strategic policy direction for health, including advice to integrated service delivery health-related working groups
  • Funding contributions towards health education initiatives in such areas as physical education, nutrition, obesity, diabetes programs, motivation, substance abuse and sport and recreation
  • Funding contributions towards sport and recreation minor infrastructure

Improved housing and home ownership projects and initiatives:

  • Funding contributions towards essential services and infrastructure to support healthy living environments
  • Land tenure resolution through Indigenous Land Use Agreements and other formal agreements in conjunction with the Native Title and Environmental Management programs
Safe Communities program component

Social services initiatives:

  • Developing a service map of social support services in the Torres Strait
  • Funding contributions made to proactive and reactive social service providers supporting Torres Strait Islander and Aboriginal women, men and children
  • Contributing to the development of standards for provision of services and facilities for safe and healthy communities through engagement with responsible agencies

Safe and accessible community initiatives:

  • Contributing towards capacity building and training initiatives for social service providers, including emergency services
  • Funding contributions to services and facilities that contribute to community accessibility and safety standards
  • Monitoring and advocating for effective land and sea communications systems
Program 1.1 key performance indicators
  • Number of CDEP participants who have moved into non-CDEP employment
  • Number of Indigenous artists and cultural practitioners supported
  • Number of native title determinations, negotiated and registered Indigenous Land Use Agreements, and number of future act notifications facilitated in the Torres Strait
  • Number of communities participating in natural resource management activities
  • Number of ranger groups in place to assist communities to carry out land, sea and cultural resource management activities
  • Number of integrated service delivery meetings held
  • Number of environmental health infrastructure projects completed
  • Number of social support services active in the Torres Strait
  • Number of people of all ages participating in organised healthy activities

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

The TSRA does not have any administered funds.

3.1.2 Special accounts

The TSRA does not have any special accounts.

3.1.3 Torres Strait Regional Authority, Australian Government Indigenous expenditure

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Outcome
Appropriations
Other*
Total
Program
 
Bill No. 1
$'000
Total approp
$'000
$'0000
$'000
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          
Departmental 2011-12 50,710 50,710 7,885 58,595 1
Departmental 2010-11 69,758 69,758 6,385 76,143 1
Total outcome 2011-12 50,710 50,710 7,885 58,595  
Total outcome 2010-11 69,758 69,758 6,385 76,143  
Total departmental 2011-12 50,710 50,710 7,885 58,595  
Total departmental 2010-11 69,758 69,758 6,385 76,143  
Total AGIE 2011-12 50,710 50,710 7,885 58,595  
Total AGIE 2010-11 69,758 69,758 6,385 76,143  

* Revenue from other sources is described in Table 1.1

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no differences in the Budget papers and TSRA's PB Statements.

3.2.2 Analysis of budgeted financial statements

Budgeted comprehensive income statement

This statement provides a picture of the expected financial results for the TSRA by identifying full accrual expenses and revenues, which highlights whether the TSRA is operating at a sustainable level. A modest surplus of $159,000 is forecast for the 2011–12 fiscal year.

Budgeted departmental balance sheet

This statement shows the financial position of the TSRA. It helps decision-makers to track the management of assets, liabilities and equity. TSRA's budgeted balance sheet for the fiscal year ending June 2012 shows TSRA forecasting a total assets position $61.78 million and liabilities of $16.7 million, resulting in a net asset position of $45.08 million.

Budgeted departmental statement of cash flows

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

Predicted departmental cash flows have been adjusted to reflect the anticipated impact on cash after taking into account the forecast movements in the balance sheet and comprehensive income statement. The agency is forecasting a favourable cash position of $27.48 million for the fiscal year ending June 2012. The favourable cash position is due to the timing across fiscal years between receipt of income and program expenditure commitments.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
EXPENSES          
Employee benefits 7,247 8,716 8,494 8,492 8,593
Supplier expenses 8,650 8,600 8,531 8,522 8,643
Grants 59,237 40,270 27,743 27,918 28,336
Depreciation and amortisation 739 850 900 900 900
Total expenses 75,873 58,436 45,668 45,832 46,472
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Interest 800 800 800 800 800
Other 5,585 7,085 7,085 7,085 7,085
Total own-source revenue 6,385 7,885 7,885 7,885 7,885
Total own-source income 6,385 7,885 7,885 7,885 7,885
Net cost of (contribution by) services 69,488 50,551 37,783 37,947 38,587
Revenue from Government 69,758 50,710 37,892 38,056 38,696
Surplus (Deficit) 270 159 109 109 109
Surplus (Deficit) attributable to the Australian Government 270 159 109 109 109
Total comprehensive income attributable to the Australian Government 270 159 109 109 109

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
ASSETS          
Financial assets          
Cash and cash equivalents 29,623 27,482 24,591 23,200 21,809
Trade and other receivables 6,833 6,833 6,833 6,833 6,833
Total financial assets 36,456 34,315 31,424 30,033 28,642
Non-financial assets          
Land and buildings 24,298 26,398 29,323 30,773 32,073
Property, plant and equipment 830 1,030 1,105 1,155 1,355
Other 41 41 41 41 41
Total non-financial assets 25,169 27,469 30,469 31,969 33,469
Total assets 61,625 61,784 61,893 62,002 62,111
LIABILITIES          
Payables          
Suppliers 1,675 1,675 1,675 1,675 1,675
Grants 11,955 11,955 11,955 11,955 11,955
Other 926 926 926 926 926
Total payables 14,556 14,556 14,556 14,556 14,556
Provisions          
Employee provisions 2,150 2,150 2,150 2,150 2,150
Total provisions 2,150 2,150 2,150 2,150 2,150
Total liabilities 16,706 16,706 16,706 16,706 16,706
           
Net assets 44,919 45,078 45,187 45,296 45,405
EQUITY*          
Parent entity interest          
Contributed equity 32 32 32 32 32
Reserves 8,890 8,890 8,890 8,890 8,890
Retained surplus 35,997 36,156 36,265 36,374 36,483
Total parent entity interest 44,919 45,078 45,187 45,296 45,405
Total Equity 44,919 45,078 45,187 45,296 45,405

Prepared on Australian Accounting Standards basis.

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

Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2011–12)
 
Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2011          
Balance carried forward from previous period 35,997 8,890 - 32 44,919
Adjusted opening balance 35,997 8,890 0 32 44,919
Comprehensive income          
Surplus (deficit) for the period 159 - - - 159
Total comprehensive income 159 0 0 0 159
Estimated closing balance as at 30 June 2012 36,156 8,890 0 32 45,078

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
OPERATING ACTIVITIES          
Cash received          
Appropriations 69,758 50,710 37,892 38,056 38,696
Interest 800 800 800 800 800
Other 5,585 7,085 7,085 7,085 7,085
Total cash received 76,143 58,595 45,777 45,9412 46,581
Cash used          
Employees 7,247 8,716 8,494 8,492 8,593
Suppliers 8,650 8,600 8,531 8,522 8,643
Grants 59,237 40,094 27,743 27,918 28,336
Total cash used 75,134 57,586 44,768 44,932 45,527
Net cash from operating activities 1,009 1,009 1,009 1,009 1,009
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 3,937 3,150 3,900 2,400 2,400
Total cash used (3,937) (3,150) (3,900) (2,400) (2,400)
Net cash from (used by) investing activities (3,937) (3,150) (3,900) (2,400) (2,400)
Net increase (decrease) in cash held (2,928) (2,141) (2,891) (1,391) (1,391)
Cash and cash equivalents at the beginning of the reporting period 32,551 29,623 27,482 24,591 23,200
Cash and cash equivalents at the end of the reporting period 29,623 27,482 24,591 23,200 21,809

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement
 
Estimated actual
2010-11

$'000
Budget estimate
2011-12

$'000
Forward estimate
2012-13

$'000
Forward estimate
2013-14

$'000
Forward estimate
2014-15

$'000
PURCHASE OF NON-FINANCIAL ASSETS        
Funded internally from departmental resources1 3,937 3,150 3,900 2,400 2,400
TOTAL 3,937 3,150 3,900 2,400 2,400
RECONCILIATION OF CASH          
USED TO ACQUIRE ASSETS          
TO ASSET MOVEMENT TABLE          
Total purchases 3,937 3,150 3,900 2,400 2,400
Total cash used to acquire assets 3,937 3,150 3,900 2,400 2,400

1Includes the following sources of funding:
- annual and prior year appropriations.

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2011–12)
 
Land
$'000
Buildings
$'000
Other property, plant and equipment
$'000
Heritage and cultural assets
$'000
Total
$'000
As at 1 July 2011          
Gross book value 7,365 17,422 1,639 41 26,467
Accumulated depreciation/amortisation - 489 809 - 1,298
Opening net book balance 7,365 16,933 830 41 25,169
CAPITAL ASSET ADDITIONS          
Estimated expenditure on new or replacement assets          
By purchase - Government funding - 2,700 450 - 3,150
Total additions 0 2,700 450 0 3,150
Other movements          
Depreciation/amortisation expense - 600 250 - 850
As at 30 June 2012          
Gross book value 7,365 20,122 2,089 41 29,617
Accumulated depreciation/amortisation - 1,089 1,059 - 2,148
Closing net book balance 7,365 19,033 1,030 41 27,469

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.

TSRA has no administered items.

Revenue from Government—ordinary annual appropriations

Revenue from Government represents amounts appropriated to fund the TSRA's seven programs, actioned in order to deliver the agency's stated outcome.

Expenses—depreciation

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

Asset valuation

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

Financial assets – cash

This includes notes and coins held and deposits at call.

Financial assets—receivables

This includes loans and advances made by the TSRA to clients in the delivery of its programs, in addition to amounts owing to the TSRA for delivery of goods and services. Loans receivable are measured at amortised cost using the effective interest method less impairment.

Glossary

accrual accounting
System of accounting in which items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

accumulated depreciation
The aggregate depreciation recorded for a particular depreciating asset.


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

administered funds
Usually, the funds or expenses an agency manages on behalf of the Government.

administered items
Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency, and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.

annual appropriation
Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

appropriation
An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under special appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

Appropriation Bill (No. 1)
This Bill proposes spending from the CRF for the ordinary annual services of Government. Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 1).

Appropriation Bill (No. 2)
This Bill proposes spending from the CRF for purposes other than the ordinary annual services of Government. Under existing arrangements between the two Houses of Parliament (the ‘Compact’), this Bill includes appropriation funding of administered expenses for new outcomes, for payments to the states and territories, and for departmental or administered capital. Funding for extensions to existing programs can be included in Appropriation Bill (No. 1). Once the Bill is passed by Parliament and given Royal Assent, it becomes the Appropriation Act (No. 2).

Appropriation Bills (Nos 3 and 4)
If an amount provided in Appropriation Acts (No. 1 or 2) is not enough to meet approved expenditure to be paid in a financial year, supplementary appropriation may be sought in Appropriation Bills (No. 3 or 4). Once these Bills are passed by Parliament and given Royal Assent, they become the Appropriation Acts (Nos 3 and 4). However, they are also commonly referred to as the Additional Estimates Bills.

assets
Future economic benefits controlled by an entity as a result of past transactions or other past events.

average staffing level
The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

capital expenditure
Expenditure by an agency on capital projects, for example purchasing a building.

Commonwealth Authorities and Companies Act 1997
(CAC Act)

Sets out the financial management, accountability and audit obligations on Commonwealth statutory authorities and companies in which the Commonwealth has at least a direct controlling interest.

Consolidated Revenue Fund (CRF)
The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

cross-portfolio Budget measure
A Budget measure that affects programs administered in a number of portfolios.

departmental items
Resources (assets, liabilities, revenues and expenses) that agency Chief Executive Officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

depreciation
Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence or the passage of time.

employment income
Income that is earned, derived or received from remunerative work undertaken by an employee in an employer–employee relationship or through self-employment.

equity or net assets
Residual interest in the assets of an entity after deduction of its liabilities.

estimates
An agency’s expected revenues, expenses, assets, liabilities and cash flows. They are prepared for each output in the Budget, in consultation with the Department of Finance and Deregulation. (See also Forward Estimates and Additional Estimates).

expenses
Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

fair value
The amount for which an asset could be exchanged or a liability settled between knowledgeable and willing parties in an arm’s length transaction.

Financial Management and Accountability Act 1997 (FMA Act)
The principal legislation governing the proper use and management of public money and public property, and other Commonwealth resources. FMA Regulations and FMA Orders are made pursuant to the Act.

Forward Estimates
The financial statement estimate for the three out years after the budget year.

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

key performance
indicators

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

measure
A new policy or savings decision of the Government with financial impacts on the Government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth.

Mid Year Economic and Fiscal Outlook
Provides an update of the Government’s budget estimates by examining expenses and revenues year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the Government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

operating result
Equals revenue less expenses.

outcome
The intended result, consequence or impact of government actions on the Australian community.

outcome statement
Articulates the intended results, activities and target group of an Australian Government agency. An outcome statement serves three main purposes within the financial framework:

  • to explain and control the purposes for which annual appropriations are approved by the Parliament for use by agencies
  • to provide a basis for annual budgeting, including (financial) reporting against the use of appropriated funds
  • to measure and assess agency and program (non-financial) performance in contributing to government policy objectives.

outputs
The goods and services produced by agencies on behalf of Government for external organisations or individuals. Outputs also include goods and services for other areas of government external to the agency.

payment accuracy
The FaHCSIA measure of the proportion of current year outlays paid accurately, for use in the financial statements and annual report. The base figure is calculated as the gross value of the fortnightly variation amounts (the amount payments are either increased or reduced by) divided by total fortnightly amounts paid to sampled customers subtracted from 100% to give payment accuracy. This figure is a point in time estimate, so it does not count mispayment for prior periods where the customer is paid accurately at the time of review, but includes all variations regardless of fault. The estimate is weighted by the size of the mispayment; for example, a $0.05 upward variation will not affect the total as much as a $450.00 cancellation.

performance information
Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes, and what can be done to improve them.

portfolio
A Minister’s area of responsibility as a member of Cabinet. A portfolio consists of one or more Departments of State (Portfolio Departments) and agencies with similar general objectives and outcomes.

price
The amount the government or community pays for the delivery of agreed outputs.

primary carer
Defined by the Australian Bureau of Statistics (ABS cat no. 4430.0, p. 77) as a person who provides the most informal assistance, in terms of help or supervision, to a person with one or more disabilities. The assistance has to be ongoing, or likely to be ongoing, for at least six months and be provided for one or more of the core activities (communication, mobility and self care).

program
An activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

receipts
The total or gross amount received by the Commonwealth. Each receipt item is either revenue, an offset within outlays, or financing transactions. Receipts include taxes, interest, charges for goods and services, borrowings and Government Business Enterprise dividends received.

revenue
Total value of resources earned or received to cover the production of goods and services, or increases in future economic benefits in the form of increases in assets or reductions in liabilities of an entity.

Senate Legislation Committee
A body of Senators that examines the use of government funding. Its purpose is to question government officials about the estimates and activities of their respective agencies.

special accounts
Balances existing within the CRF that are supported by standing appropriations (FMA Act ss. 20 and 21). Special accounts allow money in the CRF to be acknowledged as set aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (FMA Act, s. 20) or through an Act of Parliament (referred to in s. 21 of the FMA Act).

special appropriation (including standing appropriations)
An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year. Standing appropriations are a subcategory consisting of ongoing special appropriations; the amount appropriated will depend on circumstances specified in the legislation.


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 Act: Aboriginal Land Rights (Northern Territory) Act 1976

CAC Act: Commonwealth Authorities and Companies Act 1997

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

DHA: Department of Health and Ageing

DHS: Department of Human Services

DSP: Disability Support Pension

DVA: Department of Veterans’ Affairs

EoCFW: Employer of Choice For Women

EOWA: Equal Opportunity for Women in the Workplace Agency

FaHCSIA: Department of Families, Housing, Community Services and Indigenous Affairs

FMA Act: Financial Management and Accountability Act 1997

FTB: Family Tax Benefit

GFS: Government Financial Statements

GGS: General Government Sector

GSR: Great Southern Rail

HOIL: Home Ownership on Indigenous Land

HOP: Home Ownership Program

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

NTRB: Native Title Representative Body

OfW: Office for Women

OPA: Official Public Account

PBC: Prescribed Bodies Corporate

PHaMS: Personal Helpers and Mentors

PPL: Paid Parental Leave

RA: Rent Assistance

SEAM: School Enrolment and Attendance Measure

SPP: Special Purpose Payment

SSAT: Social Security Appeals Tribunal

TSRA: Torres Strait Regional Authority

  1. Legislation will be introduced to amend the name of the Equal Opportunity for Women in the Workplace Agency to the Workplace Gender Equality Agency.
  2. Due to program simplification, from 2011–12 onwards, Family Relationship Services and Children and Parenting Services will become Family Support.
  3. The Find and Connect specific deliverables have been deleted as analysis sits under ‘number of clients assisted’ within Program 1.1 (Family Support).
  4. The wording of this key performance indicator (KPI) has been changed to better correspond with the program outcome statement.
  5. The wording of this KPI has changed to indicate that the customers are a subset of the total FTB population.
  6. This KPI has been updated to ensure that data collected reflects those paid rather than those eligible to be paid.
  7. The wording of this KPI has been changed to more accurately reflect the data reported.
  8. The wording of this KPI has been changed to more accurately reflect the data reported.
  9. The Paid Parental Leave Act 2010 specifies the ways in which Paid Parental Leave Pay will be provided.
  10. The wording for this KPI has changed to better reflect the data reported.
  11. The figure for this KPI will be based on an estimate due to the fact that there are no official figures on total births.
  12. The program structure for Outcome 2 has been simplified to one program since the 2010–11 PB Statements. For more information see FaHCSIA’s 2010–11 Portfolio Additional Estimates Statements.
  13. The deliverable ‘Number of dwellings/lots that deliver the purchase price reductions required under Housing Affordability Fund project funding agreements to home purchasers’ has been deleted – because of Administrative Arrangement Order changes, this is now the responsibility of the Department of Sustainability, Environment, Water, Population and Communities.
  14. Some of the homelessness programs allow clients to engage with a service more than once. Changing the KPI addresses any concerns about 'double counting’ of clients.
  15. The KPI ’Proportion of dwelling/lots sold that deliver the purchase price reductions required under Housing Affordability Fund project funding agreements‘ has been removed – because of Administrative Arrangement Order changes this is now the responsibility of the Department of Sustainability, Environment, Water, Population and Communities.
  16. This KPI has changed slightly to better align with processes employed by Centrelink requiring Indigenous Australians to self-identify.
  17. Additional measure will provide information on disposable income after rental costs.
  18. This deliverable has been updated to better reflect the terminology routinely used in the income management policy space.
  19. This KPI pertains to expenditure at stores according to their main business activity. For example, a store such a supermarket will primarily sell food, as this is its primary business; however the store will also sell other goods including non-excluded goods.
  20. The deliverable ‘Number of individuals assisted through Volunteer Management‘ is no longer required, due to the Administrative Arrangement Orders transferring responsibility for Volunteer Management to the Department of the Prime Minister and Cabinet.
  21. The deliverable ’Number of individuals assisted (excluding volunteers)’ is no longer required, due to the Administrative Arrangement Orders transferring responsibility for Volunteer Management to the Department of the Prime Minister and Cabinet; the same data are captured under the deliverable ‘Number of individuals assisted through the Community Investment Program’.
  22. Includes individuals assisted through the Community Support Service and Community Projects. Deliverables for 160 Community projects are now reported under the Family Support Program.
  23. Includes Community Support Service and Community Projects. Data for Volunteer Management will no longer be reported due to Administrative Arrangement Orders transferring responsibility to the Department of the Prime Minister and Cabinet.
  24. Change in terminology from ‘means test’ to ‘income and assets test’ has been made as the ‘income and assets’ test is more often used in relation to qualification and determination of payment rates.
  25. Reference to the Australian Government Disaster Recovery Payment has been removed due to Administrative Arrangement Order changes this is now the responsibility of the Attorney-General’s Department. For information refer to FaHCSIA’s 2010–11 Portfolio Additional Estimates Statements.
  26. The term registered participant has been used as it covers both individuals affected by a mental illness and their carers who have a treatment or carer plan. In addition, Family Mental Health Support Services is the only service strategy that currently collects data on families.
  27. The change in terminology from ‘means test’ to ‘income and assets test’ has been made as ‘income and assets test’ is more often used in relation to qualification and determination of payment rates.
  28. The result for this KPI is derived using the denominator from the Australian Bureau of Statistics Survey of Disability, Ageing and Carers (cat. no. 4430.0) and is the number of people with disability. Not all people with disability have a work limitation or rely on DSP.
  29. This result is a point-in-time count of DSP recipients aged 15–64 years and a point-in-time count of the Australian Bureau of Statistics data on the working-age population aged 15–64 years.
  30. This KPI relies on the definition of primary carer used by the Australian Bureau of Statistics Survey of Disability, Ageing and Carers (cat. no. 4430), and is the number of people who provided the most informal help needed by a person with disability. Eligibility for Carer Payment or Carer Allowance is not determined by the Australian Bureau of Statistics definition of a primary carer.
  31. The change in terminology from ‘means test’ to ‘income and assets test’ has been made as ‘income and assets test’ is more often used in relation to qualification and determination of payment rates.
  32. The change in terminology from ‘means test’ to ‘income and assets’ test has been made as the ‘income and assets’ test is more often used in relation to qualification and determination of payment rates.
  33. A percentage based target is not possible at this time, as there is not enough certainty around the total target population of children with specified conditions.
  34. This deliverable has been changed as percentage-based analysis is not possible at this time.
  35. KPIs for Support for Carers deliverables have been updated to better align to the program’s objectives.
  36. The wording of these KPIs has been updated to better reflect the data reported.
  37. The KPIs ‘Number of hostel beds for Indigenous students made available to a hostel operator by 30 June 2012’ and ‘Number of hostel beds for Indigenous mothers made available to a hostel operator by 30 June 2012’ have been inserted as program deliverables, for which they are better suited.
  38. This new deliverable has been included to reflect the outcomes from Commonwealth funding of some municipal and essential services in remote Indigenous communities.
  39. The KPI ‘Number of houses where functional assessments and fix works have been completed under Fixing Houses for Better Health projects by 30 June 2011’ has been deleted as this activity has been completed.
  40. The deliverable ‘Percentage and number of new hostel construction projects that met agreed construction milestones’ has been inserted as a KPI, for which it is better suited, and divided into two indicators to reflect the types of hostels funded under the program.
  41. This KPI has been amended to better reflect the benefit to program participants.
  42. This KPI has been updated to better align to the program’s objective.
  43. Legislation will be introduced to amend the name of the Equal Opportunity for Women in the Workplace Agency to the Workplace Gender Equality Agency.
  44. In line with the recommendation from the Australian National Audit Office report into the HOIL Program, FAHCSIA and IBA are currently reviewing the strategic direction of the program and targets for 2011-12 and beyond will be available once this review has been finalised.
Content Updated: 12 June 2013