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Department of Social Services Annual Report 2014–15Improving lifetime wellbeing.

Our vision

Improving the lifetime wellbeing of people and families in Australia

Our mission

To be Australia’s pre-eminent social policy agency

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Key facts and figuresSocial Security$112.4 billion paid to people unable to fully support themselves

Ageing & Aged CareOver 1 million older people received Aged Care Sector services

Housing $115 million delivered to fund frontline homelessness services

Disability & Carers 235,349 people with disability were helped to improve their capacity to work

Families and CommunitiesAustralian families and children were assisted on more than 2.7 million occasions through access to government supports and services

Early Childhood and Child Care1.6 million children have benefited from our child care programmes

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ContentsContents----------------------------------------------------------------------------------------------------------- iii

Letter of transmittal-------------------------------------------------------------------------------------------- iv

Secretary’s review----------------------------------------------------------------------------------------------1

Part 1 Overview------------------------------------------------------------------------------------------------8Chapter 1 — Our Department-------------------------------------------------------------------------------8

Chapter 2 — The portfolio----------------------------------------------------------------------------------17

Part 2 Performance report----------------------------------------------------------------------------22Chapter 3 — Our performance----------------------------------------------------------------------------22

Chapter 4 Outcome 1 — Social Security---------------------------------------------------------------25

Chapter 5 Outcome 2 — Families and Communities-----------------------------------------------51

Chapter 6 Outcome 3 — Ageing and Aged Care-----------------------------------------------------69

Chapter 7 Outcome 4 — Housing------------------------------------------------------------------------85

Chapter 8 Outcome 5 – Disability and Carers---------------------------------------------------------89

Part 3 Management and Accountability------------------------------------------------------------101Chapter 9 — Our governance structure---------------------------------------------------------------101

Chapter 10 — External scrutiny-------------------------------------------------------------------------112

Chapter 11 — Managing our people-------------------------------------------------------------------118

Chapter 12 — Managing our finances-----------------------------------------------------------------123

Part 4 Financial statements----------------------------------------------------------------------------128Chapter 13 — DSS Financial Statements------------------------------------------------------------128

Part 5 Appendixes-----------------------------------------------------------------------------------------231Appendix A — Changes in our Department and the portfolio after the Administrative Arrangements Order of 23 December 2014----------------------------------------------------------231

Appendix B — Resource statements------------------------------------------------------------------233

Appendix C — Family Tax Benefit reconciliation data---------------------------------------------246

Appendix D — Changes to disability reporting------------------------------------------------------252

Appendix E — Compliance with the Carer Recognition Act 2010------------------------------253

Appendix F — Fraud Control Certificate--------------------------------------------------------------254

Appendix G — Staffing statistics------------------------------------------------------------------------255

Appendix H — Work Health and Safety---------------------------------------------------------------260

Appendix I — Advertising and market research-----------------------------------------------------261

Appendix J — Ecologically sustainable development and environmental performance- -263

Appendix K — List of abbreviations and acronyms------------------------------------------------267

Compliance index-------------------------------------------------------------------------------------------271

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Letter of transmittalFinn Pratt AO PSM

Secretary

25 September 2015

The Hon Christian Porter MPMinister for Social ServicesParliament HouseCanberra ACT 2600

Dear Minister

It is my pleasure to present to you the Annual Report of the Department of Social Services for the financial year 2014–15, for presentation to the Parliament, in compliance with section 63(1) of the Public Service Act 1999 and section 46(1) of the Public Governance, Performance and Accountability Act 2013.

The report has been prepared in accordance with section 63 of the Public Service Act 1999 and in accordance with the Requirements for annual reports for departments, executive agencies and FMA Act bodies as approved by the Joint Committee of Public Accounts and Audit on 25 June 2015.

The report meets my reporting requirements under the child support scheme, the social security law and the family assistance law.

Yours sincerely

Finn Pratt

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Secretary’s reviewI am pleased to present the Department of Social Services Annual Report 2014–15. It illustrates the breadth of our work and demonstrates the way in which our funding improves the lifetime wellbeing of Australians.

We touch many lives – the elderly, the sick, those with disability, people living in remote and regional areas, students, children and parents. Most Australians, particularly those in need, will benefit from our policies and programmes across their lifetimes.

Over the past 12 months, we have welcomed a new Minister the Hon Scott Morrison MP. We finalised a review of Australia’s welfare system and commenced implementing recommendations. This is an important area for the Government and as part of this work we are developing an ‘investment approach’ to welfare. This will ensure we invest in people early and direct funding where it will provide the most benefit, particularly in reducing long-term welfare dependency.

Over the past year we have made major reforms to child care, aged care and disability. The programmes and policies we have developed as part of these reforms will have a significant impact on those in our community that need it most.

Our significant achievements include:

Supporting people to participate in the workforce and find a jobThe Government released a major report into Australia’s welfare system, A New System for Better Employment and Social Outcomes (the McClure Review). The McClure Review found that Australia would benefit from a simpler welfare system that supports people to participate in the workforce and secure employment. The Government has indicated that the report will be used as part of the longer-term vision of Australia’s welfare system. We are already taking some important steps with work underway to overhaul Australia’s welfare information and communication technology system.

Implementing an investment approachThe Government commenced work on implementing recommendations from the McClure Review, including taking steps to make Australia’s welfare system more effective, coherent and sustainable.

We are developing an ‘investment approach’ to the social security system. This approach will focus policies and programmes on people at greatest risk of long-term dependency and disadvantage, identifying who will benefit most from targeted services and supports and then ensuring we invest in them early.

More say for older people on aged careThis year we continued to reform our aged care system, to improve its responsiveness and flexibility, to better meet the needs of older Australians.

These significant reforms, which included the introduction of the consumer-driven care approach, the enhancement of My Aged Care, and the start of the Commonwealth Home

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Support Programme, will significantly increase older Australian’s ability to choose services and improve their access to services.

Helping parents back to workMajor changes to the child care system were announced in the Australian Government 2015–16 Budget, including the new Child Care Subsidy, Child Care Safety Net and the Nanny Pilot Programme. These initiatives will help parents get back into the workforce and assist them to remain in the workforce thanks to additional care options to help them balance work with the important task of raising their children.

Lifelong support for people with disabilityWe continued to support the roll out of the National Disability Insurance Scheme (NDIS), services to Australians with a disability and families.

More than 17,000 people are currently being helped by the scheme in seven pilot sites, helping them change their lives by accessing the supports and services they need to live more independently and engage with their community. The NDIS is making a huge difference to people’s lives and participant satisfaction is high. The work of the past two-years will strongly support our transition to the full scheme, commencing in 2016.

When transition to the full scheme is complete, more than 460,000 people with disability will, for the first time, be given lifelong support and the chance to take control of their care.

Countering domestic violenceAddressing the unacceptable level of violence against women was elevated to the Council of Australian Governments (COAG) in 2015.

A number of key national initiatives have been implemented under the National Plan to Reduce Violence against Women and their Children 2010–2022.

During 2014–15 this included primary prevention and early intervention activities, the development of the free DAISY app, which connects women with services and support in their area, and a series of discussions with culturally and linguistically diverse (CALD) women to determine the issues and challenges faced in CALD communities.

In April 2015, COAG also agreed to undertake urgent action to develop a national domestic violence order (DVO) scheme, where DVOs will be automatically recognised and enforceable in any state or territory and national perpetrator standards to ensure perpetrators of violence against women are held to account at the same standard across Australia.

Going forward we will lead the national campaign to reduce violence against women and their children in 2015–16.

Streamlining grantsAs part of a broad plan to boost efficiency and remove unnecessary red tape we have streamlined our grant processes. This means the organisations we fund to deliver valuable services to individuals, families and communities across Australia have greater capacity to concentrate their efforts where they are needed most and achieve effective and targeted outcomes.

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The simplified programme arrangements consolidate funding rounds and move us towards having a single grant agreement for each provider, cutting down on administrative costs through streamlined performance reporting and simpler financial acquittal reporting.

Financial managementWe are responsible for around one-third of the Australian Government Budget. This financial year, we managed appropriations totalling $131.224 billion, comprising $130.507 billion of administered funding and $0.717 billion of departmental funding.

Our strong financial and resource management resulted in a small surplus attributable to our Department.

Looking forwardDuring 2014–15, we continued to develop and deliver policies and programmes that improve the lifetime wellbeing of people and families in Australia.

In 2015–16, we will build on this work by:

» Reforming our social security system

H̶ We will implement an ‘investment approach’ to Australia’s social security system, including longer-term welfare reforms.

H̶ We will rebalance the pension assets test to make it fairer, better targeted and sustainable by increasing the assets test free areas to assist those with modest assets holdings and increasing the assets test taper rate to reduce support to those with higher levels of assets who have greater capacity to support themselves.

» Supporting families and communities

H̶ We will provide settlement services that help refugees and migrants gain independence and participate in Australian society.

» Improving housing and homelessness services

H̶ We will promote housing and homelessness outcomes through policy reforms directed at increasing the availability and affordability of housing and clarifying the roles and responsibilities of the Commonwealth, states and territories under the Reform of the Federation process.

H̶ We will implement the 2015–17 National Partnership Agreement on Homelessness to ensure that homelessness services are effective and prioritised towards homelessness arising from domestic and family violence and youth homelessness.

» Supporting people with disability and carers

H̶ We will finalise negotiations with state and territory governments and the National Disability Insurance Agency to deliver the full national roll out of the National Disability Insurance Scheme (NDIS) and we will work with state and territory governments to develop a new NDIS national framework for quality and safeguards.

H̶ We will begin to roll out the Australian Government’s integrated plan for carer support services, making it easier to access information and services.

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H̶ We will introduce the JobAccess Gateway, a new central information entry point that will streamline employment services for job seekers with disability and potential employers.

This has been a significant time of change for our Department and we have met the challenges and look forward to the opportunities next year. Our work means we are front and centre of the Government’s social policy agenda and we consistently deliver services to millions of Australians.

I am honoured to be heading a team of dedicated and professional staff in DSS who are all contributing to making DSS the pre-eminent social policy department.

Finn PrattSecretary, Department of Social Services

September 2015

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Figure 0.1 Department of Social Services outcome and programme structure, as at 30 June 2015 1 Social Security

Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payment and concessions systems.

Programmes

» Family Tax Benefit

» Child Payments

» Income Support for Vulnerable People

» Income Support for People in Special Circumstances

» Supplementary Payments and Support for Income Support Recipients

» Income Support for Seniors

» Allowances and Concessions for Seniors

» Income Support for People with Disability

» Income Support for Carers

» Working Age Payments

» Student Payments

» Cross programme: Rent Assistance

» Programme Support for Outcome 1

Go to: Chapter 4

2 Families and CommunitiesStronger families and more resilient communities by developing civil society and by providing family and community services.

Programmes

» Families and Communities

» Paid Parental Leave

» Social and Community Services

» Support for Child Care System

» Child Care Benefit

» Child Care Rebate


Go to: Chapter 5

3 Ageing and Aged CareImproved wellbeing for older Australians through targeted support, access to quality care and related information services.

Programmes

» Access and Information

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» Home Support

» Home Care

» Residential and Flexible Care

» Workforce and Quality

» Ageing and Service Improvement


Go to: Chapter 6

4 HousingIncrease housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Programmes

» Housing and Homelessness

» Affordable Housing


Go to: Chapter 7

5 Disability and CarersImprove independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Programmes

» Disability Mental Health and Carers

» National Disability Insurance Scheme


Go to: Chapter 8

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Case Study: Joyce chooses independence

You can get a lot done in 82 years of living. For Joyce Chandler, staying independent and active is the key.

“As you get older you need to be independent and do what you can, as long as you can,” Joyce said. “I live with my daughter and my grandson. She works full-time so she’s quite busy, and he’s just turned 17 so he’s doing exams. I don’t want to be a burden on them.”

Joyce achieves this by staying independent thanks to help from her service provider, under the Australian Government’s consumer directed care model for home care.

This meant Joyce could work with her provider to choose the support services she needs.

Joyce chose to have carers come in a few times a week to help her clean the house.

“The girls are always so bright and cheerful — I look forward to them coming over, we’ve become friends.”

Funds from the home care package were also used to provide Joyce with a personal alarm to bring assistance if she has a fall or an accident.

“It gives me freedom. I feel like I can get around and do things for myself, which is a big thing when you’re 82.”

Joyce said consumer directed care meant she could “stay home, with the family and not be a burden to my daughter as much as I would be without help. That’s a great relief to me and makes me very happy.”

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Part 1 OverviewChapter 1 — Our DepartmentThe Department of Social Services’ policies and services respond to people’s needs throughout their lives.

We fund services and payments that assist families, children and older people, provide a safety net for people who cannot fully support themselves, enhance the wellbeing of people with high needs, assist those who need help with care and support a diverse and harmonious society.

As a result of the Administrative Arrangements Order of 23 December 2014, the Early Childhood and Child Care programmes from the Department of Education transferred to our Department.

Our vision is to be Australia’s pre eminent social policy agency.Our mission is to improve the lifetime wellbeing of people and families in Australia.We pursue this mission through policies and services that:

» support people and families to participate economically and socially in Australian society

» enhance the independence and wellbeing of people with high needs

» foster community cohesion and promote civil society

» provide a safety net for people who cannot fully support themselves.

Our role is to:

» provide evidence-based and whole of department social policy advice to Ministers and the Australian Government

» implement the Government’s decisions

» have productive, collaborative relationships

» assist government and society to be well placed to meet the social policy challenges of the future

» create a productive and supportive workplace.

OutcomesThe five portfolio outcomes are covered in detail in Part 2 of this report:

1. Social Security2. Families and Communities3. Ageing and Aged Care4. Housing5. Disability and Carers.

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DSS ExecutiveOur Department is led by the Secretary with six deputy secretaries each leading a stream of work.

Finn Pratt, SecretaryFinn Pratt has driven major government priorities as Secretary of the Department of Social Services (DSS) since it was formed in September 2013.

These priorities include a review of Australia’s welfare system and reforms in disability services, aged care and child care. He sets the strategic and corporate directions of our Department and portfolio and provides senior policy advice to the portfolio Ministers and Parliamentary Secretary.

Finn is the Chair of the Australia and New Zealand School of Government Board of Directors and is a member of the Jawun Board. He represents the Department on a variety of government, industry and business forums and builds high-level relationships with key stakeholders and chairs the Department’s Indigenous Reform Committee.

Finn won a Public Service Medal in 2008 and in June 2015 was honoured as an Officer of the Order of Australia for distinguished service to public administration, social policy development and government service delivery reform, and to care and support for people with disability, their families and carers.

Finn has a Bachelor of Arts degree from the Australian National University.

Serena Wilson, Deputy SecretarySerena Wilson has been a deputy secretary of DSS since its formation in September 2013. Previously, she was a deputy secretary in the former Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) from March 2009.

Serena heads our Social Security Stream, overseeing policy and management of social security payments to individuals, as well as welfare reform across the whole social security system.

As the Deputy Secretary responsible for the Policy Office, Serena leads work to establish the DSS policy framework and strategy, create a long term planning and performance culture, and promote strong evidence based systems. She is also Chair of the Policy and Deregulation Committee.

Serena was awarded a Public Service Medal in 2014 for services to public administration in social policy, including her work to establish the National Disability Insurance Scheme.

Serena joined the Australian Public Service as a graduate and has almost 30 years’ experience in social policy across many departments, including Housing and Construction, Health, Social Security, Family and Community Services, Employment and Workplace Relations and Prime Minister and Cabinet.

Serena has a Bachelor of Arts (Political Science) degree with honours from the University of Melbourne and a Graduate Diploma in Administrative Studies from the Chisholm Institute of Technology.

Barbara Bennett, Deputy SecretaryBarbara Bennett leads our Families and Communities Stream, which oversees policy development and programmes in the areas of families, children, family safety, multicultural affairs and settlement services. Barbara also has responsibility for the Programme Office

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which designs, manages and administers grants and administered procurement funding for the Department, and also supports the Government’s civil society agenda.

Barbara joined our Department as a deputy secretary in September 2013 and, before that, was a deputy secretary of the Department of Human Services. She chairs our Department’s Programme and Delivery Board and Multicultural Access and Equity Committee, and is Deputy Chair of the Policy and Deregulation Committee.

Barbara has a Bachelor of Arts degree from the Australian National University.

Felicity Hand, Deputy SecretaryFelicity Hand has been our deputy secretary responsible for the Disabilities and Housing Stream since March 2014.

Previously, she was a deputy secretary and the Chief Operating Officer of the former FaHCSIA from February 2012.

Felicity’s responsibilities include disability and carers, disability employment services, housing and homelessness, problem gambling, mental health and the National Disability Insurance Scheme Policy Taskforce.

She chairs the Audit and Assurance Committee and also is our Department’s Disability Champion.

Felicity has a Bachelor of Arts (Languages) degree from the University of Tasmania.

Jackie Wilson, Deputy SecretaryJackie Wilson is our deputy secretary responsible for the Early Childhood and Child Care Stream which, over the past 12 months, has played a key role in developing the Government’s Jobs for Families package. This is a comprehensive reform package to deliver on the Government’s commitment to a more affordable, accessible and flexible child care system.

Jackie joined the Department as part of the Machinery of Government (MoG) changes announced in December 2014. Prior to this she was a deputy secretary at the Departments of Education, Prime Minister and Cabinet, and Immigration.

Jackie gained significant experience from a number of senior positions in a variety of Commonwealth portfolios in programme and policy areas; these covered health, disability, community services, education, employment, budget and finance issues.

Jackie has a Bachelor of Science degree from the Australian National University.

Michael Lye, Acting Deputy SecretaryMichael Lye has been Chief Operating Officer and the acting deputy secretary responsible for our Department’s Corporate and Delivery Stream since March 2014.

Michael leads our delivery strategy and operations, project management and deregulation and finance. He also heads our areas of legal, corporate services and information management and technology.

Previously he was an acting deputy secretary with responsibility for families, children, housing and homelessness, and for delivery reform.

Michael chairs the People and Communications Committee and the Budget Committee, and he is the Indigenous Champion (overseeing the Department's efforts to increase employment of Indigenous Australians).

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Michael has a Bachelor of Arts degree majoring in psychology and a Master of Social Welfare Administration and Planning, both of which are from the University of Queensland.

Carolyn Smith, Acting Deputy SecretaryCarolyn Smith has been our acting deputy secretary responsible for the Ageing and Aged Care Stream since January 2014.

Previously, Carolyn was a First Assistant Secretary in the Department of Health and Ageing from August 2006.

Carolyn oversees policy development, programme management and regulation of the current ageing and aged care system as well as implementation of major reforms. She chairs the Information, Communications and Technology Committee, is Deputy Chair of the Programme Office Board and is a member of the Budget Committee.

She is also Chair of the Aged Care Gateway Sponsoring Group and is our Department’s representative on the Aged Care Financing Authority, the Aged Care Sector Committee and the Australian Aged Care Quality Agency Advisory Council.

Carolyn has a Bachelor of Arts (Honours) degree, majoring in history and law, from the University of Sydney.

Figure 1.1 Our executive and streams of workFinn Pratt, SecretarySocial Security [Stream]

» Deputy Secretary, Serena Wilson

Families and Communities [Stream]

» Deputy Secretary, Barbara Bennett

Disability and Housing [Stream]

» Deputy Secretary, Felicity Hand

Early Childhood and Child Care [Stream]

» Deputy Secretary, Jackie Wilson

Corporate and Delivery [Stream]

» Acting Deputy Secretary and Chief Operating Officer, Michael Lye

Ageing and Aged Care [Stream]

» Acting Deputy Secretary, Carolyn Smith

Figure 1.2 Organisational structure, as at 30 June 2015Finn Pratt, Secretary

Serena Wilson, Deputy Secretary, Social SecurityCath Halbert, Group Manager, Payments Policy

Branch managers: Emma Kate McGuirk, Labour Market Payments Policy, Michalina Stawyskyj, Age, Disability and Carer Payments Policy, Ty Emerson, Family and Students Payments Policy

Paul McBride, Group Manager, Social Security Policy

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Branch managers: Andrew Whitecross, Rates and Means Testing Policy, Mary McLarty, Eligibility and Participation Policy, Murray Kimber, Social Security Performance and Analysis

Sean Innis, Group Manager, Policy Office

Branch managers: Allyson Essex, Policy Strategy, Kathryn Mandla, Policy Systems, David Dennis, Policy Evidence

Barbara Bennett, Deputy Secretary, Families and CommunitiesEvan Lewis, Group Manager, Multicultural, Settlement Services and Communities

Branch managers: Laura Angus, Multicultural and Communities, Kris Cala, Settlement

Tim Reddel, Group Manager, Programme Office

Branch managers: Christine Bruce, Programme Design and Policy, Stacey Pondes, Programme Systems and Strategy, Leo Kennedy, Programme Support and Selections, Helen Board, Programme Performance, Greg Keen, Programme Management Transition Team

Phil Brown, Group Manager (acting), Families

Branch managers: Flora Carapellucci, Birth and Adoption, Tracy Creech (acting), Families and Children, Lara Purdy, Financial Capability and Childrens Policy, Mathew Johnston (acting), Welfare Conditionality, Ros Baxter (part time), Welfare Conditionality Reform

Cate McKenzie, Group Manager, Principal Adviser, Family Safety

Felicity Hand, Deputy Secretary, Disability and HousingIain Scott, Group Manager, Housing, Homelessness and Assurance

Branch managers: Damian Coburn, NRAS and Gambling, Stewart Thomas, Housing and Homelessness, Jan Lawless, Assurance, Lyn Murphy, Disability Employment Services Programme Assurance

James Christian, Group Manager, Disability, Employment and Carers

Branch managers: Warren Pearson, Disability Employment and Sector Reform, Lis Kelly, Disability, Carer Policy and Access, Karen Pickering, Mental Health, Mitchell Cole (acting), Disability Employment Services Programme, Sharon Stuart, Disability Employment Services Policy, John Riley, Disability Employment Taskforce, Karen Wilson (acting), Carers Gateway Project

Nick Hartland, Group Manager, National Disability Insurance Scheme (NDIS)

Branch managers: Alison Smith (part-time), Policy and Legislation, Bruce Smith, Policy and Legislation [also reporting to Bryan Palmer, Group Manager, National Disability Insurance Scheme (NDIS)], Deborah Winkler, Governance and Stakeholder Relations, Jillian Moses, Financial Policy and Performance

Bryan Palmer, Group Manager, National Disability Insurance Scheme (NDIS)

Helen McDevitt, Group Manager, National Disability Insurance Scheme (NDIS)

Jackie Wilson, Deputy Secretary, Early Childhood and Child CareGillian Mitchell, Group Manager (acting), Early Childhood Initiatives

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Branch managers: Russell Ayres, Early Childhood Quality and Research, Joanna Stanion, Stakeholder Engagement and Budget Based Funding, Robyn Priddle, Inclusion Support and Budget

Margaret Pearce, Group Manager, Early Childhood Care Support

Branch managers: Deb Rollings, Early Childhood Education Care Service Policy and Operations, Suzanne Northcott, Child Care Payments Compliance, Belinda Catelli (acting), Early Childhood Education Care Payments to Families and Services

David De Silva, Group Manager, Early Childhood Strategy

Branch managers: Joan ten Brummelaar, IT and Reform Governance, Jeff Willing, Legislation Reform, Matthew Hardy, Child Care Safety Net

Michael Lye, Acting Deputy Secretary and Chief Operating Officer Corporate and DeliveryMichael Maynard, Group Manager, Delivery

Branch managers: Dave Agnew, National Delivery, Chantelle Stratford, Delivery Strategy and Performance

State managers

Amanda Vallance, Northern Territory State Manager, Christine Steele, South Australia State Manager, Bernadette Ryan, Victoria State Manager, Anthony Steele, Tasmania State Manager, Lucelle Veneros, New South Wales / Australian Capital Territory State Manager, Helen Grinbergs, Western Australia State Manager, Janet Stodulka, Queensland State Manager

Scott Dilley, Group Manager, Finance and Services

Branch managers: Stephen Sheehan, Financial Accounting, Helen Martin (acting), Financial Management, Tracey Carroll, Budget Development

Janean Richards, Group Manager, Legal Services

Branch managers: Matthew Roper, Investigations and Aged Care Law, Joanna Carey, Portfolio Governance, Welfare and Employment Law, Alan Grinsell-Jones, Commercial, Child Care and Disability and Information Law, Helen Duke (acting), Corporate Service Improvement Project, [also reporting to Janean Richards, Group Manager, Legal Services], Louise Anderson, SSAT Registrar

Margaret McKinnon, Group Manager, Corporate Support

Branch managers: Sharon Bailey, Ministerial, Parliamentary and Executive Support, Tracey Bell, Communication Projects, Jessica Baxter (acting), Communication and Media, Shona Moloney, People, Diana Lindenmayer (acting), Management Bargaining Team

Peter Qui, Group Manager, Information Management and Technology

Branch managers: Sebastian Hood, Corporate and Data Services, Watson Blaikie, Application Services, Robert Michie (acting), IT Operations, Michael Gately, Shared Services, Sharon McCarter, Aged Care Business Systems

Peter Broadhead, Group Manager (acting), Deregulation and Property

Branch managers: Ailsa Borwick, Project, Risk and Deregulation, John Reardon (acting), Property, Environment, Procurement and Security

Carolyn Smith, Acting Deputy Secretary and Ageing and Aged Care

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Rachel Balmanno, Group Manager (acting), Aged Care Policy and Reform

Branch managers: Tania Haslam (acting), Policy, Nigel Murray, Funding Policy and Legislation

Fiona Buffinton, Group Manager, Access, Quality and Compliance

Branch managers: David Laffan (acting), Aged Care Complaints, Amy Laffan, Prudential and Approved Provider Regulation, Michael Culhane, Quality and Regulatory Policy, Susan Hunt, Senior Nurse Advisor, Craig Harris, Access Reform

Donna Moody, Group Manager, Ageing and Aged Care Services

Branch managers: Ben Vincent, Home Support Implementation, Shona McQueen, Aged Care Programmes, Louise O’Neill, Ageing and Sector Support, Kerrie Westcott (acting) Reform Support and Engagement

Our peopleOur Department delivers a diverse range of social policies and programmes. In terms of both people and places, our reach is wide, extending to the most remote parts of Australia and, in the course of their lives, to most Australians.

While DSS operates across Australia, around three quarters of DSS employees are based in Canberra, ACT, in Tuggeranong and Woden (National Office). This central location means National Office has close links with the Ministers and their offices and other Commonwealth agencies.

National Office staff are engaged in a diverse range of activities including policy development and implementation, programme design, social policy research and modelling, monitoring, reporting and evaluation, and lead our Department’s activities in whole of government initiatives.

Our delivery network comprises departmental staff located within state, territory and regional offices throughout Australia. About a quarter of our staff are based in the delivery network and are responsible for:

» working with state and local government, non-government organisations and the community sector to build and sustain local relationships with stakeholders

» the effective management of grants, administered procurement and regulation, reviewing service provider performance and resolving complaints

» sharing of local knowledge to inform programme and policy development and regulatory practice.

The delivery network works collaboratively with our national office to help deliver policy and programme outcomes.

Figure 1.3 Our national presence, as at 30 June 2015Staff location mapRegional office locations

» Newcastle

» Orange

» Dubbo

» Batemans Bay

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» Shepparton

» Bendigo

» Cairns

» Townsville

» Mount Isa

» Mackay

» Rockhampton

» Port Augusta

» Alice Springs

State/territory office locations

» Sydney

» Melbourne

» Brisbane

» Perth

» Adelaide

» Hobart

» Darwin

National office location

» Canberra

Staff numbers in our delivery networkNSW 295

Victoria 233

Queensland 185

Western Australia 102

South Australia 107

Tasmania 57

Northern Territory 42

Staff numbers in national office2,638

Total DSS staff3,659

Our valuesOur values reflect those of the broader Australian Public Service and are central to the way we work with our ministers, parliamentary secretary, colleagues, stakeholders and the public. This includes being:

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» Impartial: we are apolitical and provide the Government with advice that is frank, honest, timely and based on the best available evidence.

» Committed to service: we are professional, objective, innovative and efficient and work collaboratively to achieve the best results for the Australian community and the Government.

» Accountable: we are open and accountable to the Australian community under the law and within the framework of Ministerial responsibility.

» Respectful: we respect all people, including their rights and heritage.

» Ethical: we demonstrate leadership, are trustworthy, and act with integrity, in all that we do.

»

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Chapter 2 — The portfolioImproving lifetime wellbeingSocial policies and programmes supporting the lifetime wellbeing of people and families in Australia are delivered by the Commonwealth agencies and office holders in the Department of Social Services portfolio.

We work with other government and non-government organisations to develop, manage and deliver social policies and programmes that support and improve wellbeing by encouraging people’s independence and participation.

Ministers and portfolio responsibilitiesAt 30 June 2015, the ministers and parliamentary secretaries responsible for our portfolio and its agencies were:

» the Hon Scott Morrison MP, Minister for Social Services

» Senator the Hon Marise Payne, Minister for Human Services

» Senator the Hon Mitch Fifield, Assistant Minister for Social Services

» Senator the Hon Concetta Fierravanti-Wells, Parliamentary Secretary to the Minister for Social Services.

Changes to our Department and the portfolio during 2014–15 are detailed at Appendix A.

Portfolio structureThe Social Services portfolio consisted of:

» the Department of Social Services (DSS, our Department)

» the Department of Human Services (DHS)

» three portfolio bodies — Australian Aged Care Quality Agency, Australian Institute of Family Studies and the National Disability Insurance Agency

» two statutory office holders — Aged Care Commissioner and Aged Care Pricing Commissioner

» one statutory body – the Social Security Appeals Tribunal.

DHS is part of the Social Services portfolio and administered separately to our Department. Refer to the DHS Annual Report for information on DHS.

Figure 2.1 Social Services portfolio, as at 30 June 2015 Minister for Social Services: The Hon Scott Morrison MP

Minister for Human Services: Senator the Hon Marise PayneAssistant Minister for Social Services: Senator the Hon Mitch FifieldParliamentary Secretary to the Minister for Social Services: Senator the Hon Concetta Fierravanti-Wells

Portfolio department

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Department of Social Services: Portfolio Secretary: Mr Finn Pratt AO PSM

Department of State (part of the Social Services portfolio)

Department of Human Services: Secretary: Ms Kathryn Campbell CSC

Non-corporate Commonwealth entities

Australian Aged Care Quality Agency: Chief Executive Officer: Mr Nick RyanAustralian Institute of Family Studies: Director: Professor Alan Hayes AM

Statutory office holders

Aged Care Commissioner: Ms Rae LambAged Care Pricing Commissioner: Ms Kim Cull

Corporate Commonwealth entity

National Disability Insurance Agency: Chief Executive Officer: Mr David Bowen

Statutory body

Social Security Appeals Tribunal: Principal Member: Ms Jane Macdonnell

Our DepartmentDepartment of Social ServicesOur mission: Improve the lifetime wellbeing of people and families in Australia.

Our Department is a critical source of social policy advice for the Australian Government. We work in partnership with other government and non government organisations, particularly with DHS, to ensure the effective development, management and delivery of diverse policies, programmes and services focused on improving the lifetime wellbeing of people and families in Australia.

Department of stateDepartment of Human Services Outcome: Support individuals, families and communities to achieve greater self sufficiency; through the delivery of policy advice and high quality accessible social, health and child support services and other payments; and support providers and business through convenient and efficient service delivery.

The department provides policy advice on service delivery matters to government to ensure effective, innovative and efficient implementation of government service delivery. It is subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The department has one outcome and delivers a range of government and other payments and services to almost every Australian including:

» Centrelink payments and services for retirees, the unemployed, families, carers, parents, students, people with disabilities, Indigenous Australians, people from culturally and linguistically diverse backgrounds, people living overseas and provision of services at times of major change, including disaster recovery payments.

» Aged care payments to services funded under the Aged Care Act 1997 including residential care, home care and flexible care services.

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» Medicare services and payments that support the health of Australians such as Medicare, the Pharmaceutical Benefits Scheme, eHealth, Private Health Insurance Rebate, the Australian Childhood Immunisation Register, the National Bowel Cancer Screening Register and the Australian Organ Donor Register.

» Child Support services for separated parents to provide the financial and emotional support necessary for their children’s wellbeing.

The department also delivers other services including the Tasmanian Freight Equalisation Scheme and Early Release of Superannuation, as well as whole of government services such as myGov.

Australian Hearing Australian Hearing is a non-General Government Sector entity established under the Australian Hearing Services Act 1991. Australian Hearing provides specialist hearing services through a national network of hearing centres and undertakes research through the National Acoustic Laboratories. Australian Hearing is a corporate Commonwealth entity under the PGPA Act and is governed by a board that is appointed by the Minister for Human Services.

Department of Social Services portfolio bodiesAustralian Aged Care Quality AgencyOutcome: High quality care for persons receiving Australian Government subsidised residential aged care and aged care in the community through the accreditation of residential aged care services, the quality review of aged care services, including services provided in the community, and the provision of information, education and training to the aged care sector.

The Australian Aged Care Quality Agency (Quality Agency) is the national accreditation body responsible for residential aged care accreditation and quality review of Commonwealth-funded home care services.

Go to: The Australian Aged Care Quality Agency website.

Australian Institute of Family StudiesOutcome: Increased understanding of factors affecting how Australian families function by conducting research and communicating findings to policy makers, service providers and the broader community.

The Australian Institute of Family Studies researches and communicates information about factors that affect Australian families. It provides an evidence base for developing policy and best practice for the wellbeing of families.

Go to: The Australian Institute of Family Studies website.

National Disability Insurance AgencyOutcome: To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

The Agency implements the National Disability Insurance Scheme. It provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, and the social and economic participation of eligible people with

19

http://www.aifs.gov.au/

http://www.aacqa.gov.au/

disability, their families and carers. The National Disability Insurance Agency will also play a key role in building community awareness and understanding of disability matters to reduce the barriers to community inclusion for people with disability, their families and carers.

Go to: The National Disability Insurance Scheme website.

Statutory office holdersAged Care CommissionerObjective: To provide an independent review mechanism for the decisions and processes of the Aged Care Complaints Scheme and the processes of the Australian Aged Care Quality Agency in accrediting residential aged care services and quality review of home care services.

The Aged Care Commissioner’s primary function is to provide an independent review mechanism for the decisions and processes of the Aged Care Complaints Scheme and the processes of the Australian Aged Care Quality Agency (the Quality Agency) in accrediting residential aged care facilities and reviewing home care services. The Commissioner is supported by the Office of the Aged Care Commissioner.

Go to: The Aged Care Commissioner website.

Aged Care Pricing CommissionerObjective: To increase the level of transparency in the pricing of residential aged care services through the approval of proposed accommodation payments that are higher than the maximum amount determined by the Minister and the approval of extra service fees.

The Aged Care Pricing Commissioner’s functions include the approval of proposed accommodation payments that are higher than the maximum amount determined by the Minister, the approval of extra service fees, and any other function conferred on the Commissioner by the Minister or under Commonwealth law. The Commissioner is supported by the Office of the Aged Care Pricing Commissioner.

Go to: The Aged Car Pricing Commissioner website.

Statutory bodySocial Security Appeals TribunalObjective: To conduct merits review of administrative decisions made under a number of enactments, in particular the social security law, family assistance law and child support law.

Until the commencement of the Tribunals Amalgamation Act 2015 on 1 July 2015, the Social Security Appeals Tribunal (SSAT) was a statutory tribunal which reviewed decisions made by delegates of the Secretary. The statutory objective of the SSAT was to provide a mechanism of review that is fair, just, economical, informal and quick. The SSAT was composed of its members who were statutory office holders. The SSAT was funded from DSS’ budget allocation and its staff were DSS employees made available by the Secretary.

On 1 July 2015, the SSAT was amalgamated with the Administrative Appeals Tribunal, the Migration Review Tribunal and the Refugee Review Tribunal. The amalgamated tribunal is called the Administrative Appeals Tribunal (AAT) and is within the portfolio of the Attorney General. The previous jurisdiction of the SSAT is now exercised by the Social Services and Child Support Division of the AAT.

Go to: The Administrative Appeals Tribunal website.

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http://www.aat.gov.au/

http://www.acpc.gov.au/

http://www.agedcarecommissioner.gov.au/

http://www.ndis.gov.au/

Case study: Anna sets 30 year record in open jobs market

Thirty years ago she had few job options.

Instead Anna Chan, who has an intellectual disability, found work in the open labour market, helped influence new federal legislation, and went on to set an employment record.

She was recognised nationally in 2014–15 by the Australian Government Assistant Minister for Social Services, Senator Mitch Fifield, for becoming the longest-serving employee of the Kindergarten Union’s Concord Children’s Centre in Sydney, after 30 years of employment there.

The child care worker also became the longest supported client of the Jobsupport service, which is funded by the Australian Government through the Disability Employment Service — Employment Support Service.

The Jobsupport service was set up in 1986 by teachers from the special school Ms Chan attended before starting work. The service currently supports 640 people with a significant intellectual disability like Ms Chan to find and stay in jobs.

Today, Anna is the longest serving worker supported by Jobsupport. Seven years is the average tenure for Jobsupport’s workers who, like Anna, receive a means-tested Disability Support Pension.

Phil Tuckerman, the chief executive officer of Jobsupport said the service’s success — and Ms Chan’s example as a role model — helped shape the Disability Services Act 1986, which is more flexible and responsive than earlier laws. It enables funding of Australia’s open employment services.

Ms Chan enjoys caring for children. She says she likes earning her own money and saves to visit relatives — and shop — in Hong Kong.

Jobsupport’s 13 sites in Sydney and Melbourne consistently receive the maximum DSS 5 Star Rating, by getting outcomes for their clients.

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Part 2 Performance reportChapter 3 — Our performanceOur Department is the leading Australian Government agency in developing and delivering social policy and we are committed to improving the lifetime wellbeing of all Australians.

Australian families, the elderly and the vulnerable access our programmes and payments every day of the week, every week of the year.

We achieve our purpose by:

» working responsively to the government of the day

» providing evidence-based, forward-looking policy advice

» designing, funding and regulating services that underpin the lifetime wellbeing of Australian’s and promote their independence and participation

» working in partnership with state and territory governments to develop policy and deliver services in areas of joint interest

» partnering with organisations to provide local services to communities.

Our programmes fall into four main categories:

» direct payments to individuals through the Department of Human Services (DHS) and other agencies including the Age Pension, the Disability Support Pension and the Newstart allowance

» working with the states and territories to achieve outcomes in shared policy areas, including housing, homelessness, disability services, child care, concessions and the welfare of children

» funding organisations to deliver residential and community services that support families and individuals according to their need

» advising government on social policy development, coordination and implementation, and building the evidence base to support government decisions and future directions.

As part of this process, our Department’s grant programmes have been consolidated into new broadbanded grant programmes, which reflect wider policy priorities. This streamlining removes unnecessary red tape for community organisations, enhances service delivery and provides greater freedom for service providers to drive local solutions to local problems.

The new arrangements allow service providers to better target the particular needs of their clients and communities, and to use more of their resources on direct client-focused service delivery instead of administration. Collaboration between organisations is encouraged under

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the new model, to assist appropriate referrals and coordination of services to improve outcomes for clients.

Importantly, existing policy priorities are maintained in the new programme structure but further flexibility is built into these arrangements to ensure that we can respond to emerging priorities.

Under the Administrative Arrangements Order of 23 December 2014, additional functions relating to child care policy and programmes and coordination of early childhood development policy were transferred to our portfolio from the former Department of Education.

Further information on changes in our Department and the portfolio after the Administrative Arrangements Order of 23 December 2014 is provided at Appendix A.

Factors, events and trends influencing our performanceSpending on social welfare represents a significant proportion of the Australian Government’s budget.

This year presented many social and economic challenges, including the need to ensure the sustainability of the social security system, growth in government expenditure and national debt and response to demographic change.

As the population ages, spending on pensions, health and aged care will increase.

Over the next few years, all levels of government, the private sector and civil society will need to work together to ensure Australia has a sustainable and effective social support system — one that encourages mature age participation and reduces intergenerational welfare dependency.

Performance indicatorsDuring 2014–15, we developed an integrated outcome-level non-financial performance framework in response to enhanced non-financial performance reporting requirements prescribed by the Public Governance Performance and Accountability Act 2013 (PGPA Act).

We have undertaken an initial mapping and review of our key performance indicators (KPIs) within this framework, along with associated measurement methodologies, data and information.

Evidence baseOur Department’s research, evaluation, review and data management activities support our strategic and business planning. These provide an evidence base that underpins our policy advice, programme performance and project management.

We have implemented a robust policy development framework that ensures our advice and work remains on target.

This evidence-based approach is helping shape programme design and delivery and has supported a range of important initiatives.

These include access to affordable child care, helping young people who are at risk of long-term welfare dependence, better targeting of social security payments, an important shift in

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consumer choice for aged care and the social investment approach that will look at ways we can invest earlier to reduce welfare expenditure over time.

Reducing red tapeThis year we continued to contribute to the Australian Government’s deregulation agenda, which returned significant savings for our stakeholders. For example:

Changes to the Disability Employment Services programme led to a saving of more than $5.5 million in compliance costs for the programme’s providers and individuals.

We helped save the industry more than $10.8 million in compliance costs through items completed under an action plan agreed with the sector — as reported in our 2014 Deregulation Annual Report, which is on the DSS website, go to: the Department of Social Services website

For information on the Department’s red tape reductions, go to Cutting the Red Tape website

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http://www.cuttingredtape.gov.au/

http://www.cuttingredtape.gov.au/

http://www.dss.gov.au/


Chapter 4Outcome 1 — Social Security Programme 1.1 Family Tax BenefitProgramme 1.2 Child PaymentsProgramme 1.3 Income Support for Vulnerable PeopleProgramme 1.4 Income Support for People in Special CircumstancesProgramme 1.5 Supplementary Payments and Support for Income Support

RecipientsProgramme 1.6 Income Support for SeniorsProgramme 1.7 Allowances and Concessions for SeniorsProgramme 1.8 Income Support for People with DisabilityProgramme 1.9 Income Support for CarersProgramme 1.10 Working Age PaymentsProgramme 1.11 Student PaymentsCross programme: Rent AssistanceProgramme 1.12 Programme Support for Outcome 1

Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payment and concessions system.

Our Department responds to need across people’s lives by supporting individuals, families, children and older people, providing a safety net for people who cannot support themselves.

We support the lifetime wellbeing of people and families through encouraging economic and social participation; assisting those who are able to work to do so; building capacity and self-reliance; supporting people in need; assisting those who require care and their carers; and supporting a diverse and harmonious society.

Financial assistance is provided to eligible Australians through a variety of payments.

These include family payments, child support, student payments, and income support payments for people of working age; and, for seniors, additional payments and non-cash benefits such as concession cards.

Our achievements» provided 5,887,291 concession cards for people to access benefits that included

cheaper pharmaceuticals

» amended the Disability Support Pension assessment process from 1 January 2015 through the introduction of a Disability Medical Assessment by a Government contracted doctor

» supported 295,999 students and apprentices through student payments

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» helped support about 1.2 million children from separated families through the Child Support Scheme

Our performance

Programme 1.1: Family Tax Benefit

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

Programme componentsFamily Tax Benefit Part AFamily Tax Benefit Part B

Child Support SchemeSchoolkids Bonus

Family Tax BenefitIn the past year:

» Family Tax Benefit (FTB) helped around 7 million parents and children —that is 28 per cent of the population. FTB has two components:

H̶ FTB Part A is paid per child to low and medium-income families

H̶ FTB Part B is paid per family to assist single-parent families and couple families where one parent is on a low income.

» Changes to the rule for receiving payments overseas resulted in the length of time that families can live overseas and receive family payments being reduced from three years to 56 weeks.

H̶ Members of the Australian Defence Force and Australian Federal Police who are deployed overseas were exempt from this change.

» We helped support about 1.2 million children from separated families through the Child Support Scheme.

Table 4.1 Family Tax Benefit — deliverablesResult

Payments are made through DHS to eligible claimants under the provisions of the family assistance law

Payments were made as described

The Child Support Scheme is delivered by DHS under the provisions of the child support legislation

The scheme was delivered as described

Table 4.2 Family Tax Benefit — key performance indicators

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Result

Family Tax Benefit Part Aa

Total number of eligible customers 1.81 million for the 2012–13 entitlement year

Proportion of all customers paid by instalment 94%(or 1.69 million) were entitled to fortnightly payment for the 2012–13 entitlement year

Proportion of all customers paid by lump sum 6%(or 0.12 million) were entitled to lump sum payment for the 2012–13 entitlement year

Proportion of instalment and lump sum entitlement:

Proportion of instalment entitlement 97% ($13.92b) for the 2012–13 entitlement year

Proportion of lump sum entitlement 3% ($0.44b) for the 2012–13 entitlement year

Percentage of all customers who had a qualification debt raised

4% of the total FTB Part A instalment population for the 2012–13 entitlement year

Percentage of all customers whose qualification debt remains outstanding

<1% of the total FTB Part A instalment population for the 2012–13 entitlement year

Percentage of all customers who had a debt raised following reconciliation


Percentage of all customers whose reconciliation debt remains outstanding


Percentage of all customers who had a non-lodger debt raised


Percentage of all customers whose non-lodger debt remains outstanding


Agreement is in place with DHS An agreement is in place with DHS

Strategies are in place to ensure that requirements are fulfilled under the agreement with DHS

Strategies are in place with DHS

Administered outlays $15.18b

Payment accuracy 97%

Percentage and number of families with children under 16 years of age receiving Family Tax Benefit Part A

63% (1.64 million) for the 2012–13 entitlement year

a Data from the 2012-13 entitlement year is provided as it is the most complete FTB data available that has recorded the impact of reconciliation of payments.

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Result

Percentage and number of families in receipt of Family Tax Benefit Part A within income test categories:

Families on Income Support

Maximum rate 29% (439,149) of all FTB Part A recipients

Maintenance reduced rate 13% (206,628) of all FTB Part A recipients

Base rate 2% (35,051) of all FTB Part A recipients

Regular care rate <1% (4,679) of all FTB Part A recipients

Families not on Income Support

Maximum rate 10% (149,525) of all FTB Part A recipients

Maintenance reduced rate 3% (45,976) of all FTB Part A recipients

Broken rate below high income free area 21% (319,341) of all FTB Part A recipients

Broken rate above high income free area 3% (53,616) of all FTB Part A recipients

Base rate 13% (201,053) of all FTB Part A recipients

Tapered base rate 5% (74,782) of all FTB Part A recipients

Regular care rate <1% (6,932) of all FTB Part A recipients

Percentage and number of children who meet the Family Tax Benefit immunisation requirement by age check point:

Children aged one in entitlement year 97% (199,877) children in the 2012–13 entitlement year

Children aged two in entitlement year 97% (197,735) children in the 2012–13 entitlement year

Children aged five in entitlement year 97% (203,615) children in the 2012–13 entitlement year

Percentage and number of children who meet the Family Tax Benefit health check requirement

91.2% (87,700) children in the 2012–13 entitlement year

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Result

Family Tax Benefit Part Ba

Total number of eligible customers 1.58 million for the 2012–13 entitlement year

Proportion of all customers paid by instalment 95% (1.5 million) were entitled to fortnightly payment for the 2012–13 entitlement year

Proportion of all customers paid by lump sum 5% (or 0.08 million) were entitled to lump sum payment for the 2012–13 entitlement year

Proportion of instalment and lump sum entitlement:

Proportion of instalment entitlement 96% ($4.07b) for the 2012–13 entitlement year

Proportion of lump sum entitlement 4% ($0.16b) for the 2012–13 entitlement year

Percentage of all customers who had a qualification debt raised

5% of the total FTB Part B instalment population for the 2012–13 entitlement year

Percentage of all customers whose qualification debt remains outstanding

<1% of the total FTB Part B instalment population for the 2012–13 entitlement year

Percentage of all customers who had a debt raised following reconciliation


Percentage of all customers whose reconciliation debt remains outstanding


Percentage of all customers who had a non-lodger debt raised


Percentage of all customers whose non-lodger debt remains outstanding






Payment accuracy 97%

Percentage and number of families with children under 16 years of age receiving Family Tax Benefit Part B

53% (1.4 million) for the 2012–13 entitlement year

Percentage and number of families in receipt of FTB Part B within income test categories:

a Data from the 2012-13 entitlement year is provided as it is the most complete FTB data available that has recorded the impact of reconciliation of payments.

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Result

Families on Income Support

Maximum rate single families 34% (458,051) of all FTB Part B recipients

Maximum rate couple families 2% (27,163) of all FTB Part B recipients

Broken rate couple families 13% (169,439) of all FTB Part B recipients

Families not on Income Support

Maximum rate single families 15% (199,373) of all FTB Part B recipients

Maximum rate couple families 20% (262,426) of all FTB Part B recipients

Broken rate couple families 17% (224,510) of all FTB Part B recipients

Child Support Schemea 2012–13 2013–14 2014–15

Number of cases 795,000 795,000 789,500

Total value of annual assessments $3.34b $3.38b $3.36b

Total value of child support assessments raised using Child Support Collect in the past financial year and percentage collected:

Total value of assessments raised for collection by DHS

$1.45b $1.52b $1.54b

Total value of child support collected by DHS

$1.38bb $1.45bb $1.47bb

Reduction of Family Tax Benefit as a result of maintenance income test

$0.52b for the 2010–

11 entitlement

year

$0.60b for the 2011–

12 entitlement

year

$0.70b for the 2012–13

entitlement year




Schoolkids Bonus

Number of recipients 1.10 million

a Data for number of cases and total value of annual assessment is point in time as at 30 June of each financial year specified.b This figure includes child support received by DHS in the financial year for liabilities raised in previous years. The percentage collected for assessments raised in the financial year is not able to be calculated based on current available data.

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Result


Programme 1.2: Child Payments

Objective: To make payments to families in certain circumstances to assist with the costs of children.

Programme componentsDouble Orphan Pension

Single Income Family SupplementsStillborn Baby Payment

Assistance for Isolated Children

Child paymentsWe also support families with children through other benefits.

Through the Double Orphan Pension, we helped 1,227 carers meet the costs of double-orphaned children (where both parents have died or one parent has died and the other parent is unable or unavailable to provide care). This represented a 7 per cent decrease in these pensions during the year.

We helped 983 eligible families whose baby was stillborn with the Australian Government’s Stillborn Baby Payment. Our Department also assisted 10,167 students attend school this year through the Assistance for the Isolated Children Scheme. This represented a 3.1 per cent decrease in the number assisted during the year.

The students were otherwise unable to go to an appropriate state school due to geographical isolation, disability or special health needs.

Table 4.3 Child Payments — deliverablesResult

Double Orphan PensionDouble Orphan Pension is paid through DHS to eligible families under the provisions of the social security law


Single Income Family SupplementSingle Income Family Supplement is paid through DHS to eligible families under the provision of the family assistance law


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Result

Stillborn Baby PaymentPayments are made through DHS to eligible claimants under the provisions of the family assistance law



Assistance for Isolated Children is paid through DHS to eligible families. The appropriation for payments is in the Student Assistance Act 1973


Table 4.4 Child Payments — deliverable targets

2012–13 2013–14 2014–15

Target Actual Target Actual Target Actual

Students in receipt of Assistance for Isolated Children fundinga

– 9,983 – 9,859 11,100 10,167

Table 4.5 Child Payments — key performance indicators

2012–13 2013–14 2014–15

Double Orphan Pension

Number of recipients 1,339 1,317 1,227

Number of children 1,925 1,907 1,808

Administered outlays $3.5m $3.55m $3.47m

Payment accuracy Payment accuracy for Double Orphan Pension is not measured because this payment was not part of the random sample survey programme

Single Income Family Supplement

Number of recipients – 254,393 236,521

Administered outlays $52.70m

Stillborn Baby Payment

Number of recipients 983

a These figures are calendar years – due to the nature of the payment

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2012–13 2013–14 2014–15



Number of recipientsb 9,983 9,859 10,167


Programme 1.3: Income Support for Vulnerable People

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

Income support for vulnerable peopleSpecial Benefit is an income support payment available to vulnerable people who are in severe financial hardship and who are ineligible for any other income support payment and meet all other eligibility requirements.

Table 4.6 Income Support for Vulnerable People — deliverablesResult

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


Table 4.7 Income Support for Vulnerable People — key performance indicators

2012–13 2013–14 2014–15

Special Benefit:

Percentage and number of recipients on part rate due to the means test

77% 79% 81%



Duration on payment 123 weeks 125 weeks 122 weeks

Payment accuracy 95.9% 96.6% 97.9%

Confidence interval +/- 6.1% +/- 1.3% +/-1.2%

Agreements are in place with all service providers

An agreement is in place with DHS

Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies


b These figures are calendar years – due to the nature of the payment

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Programme 1.4 Income Support for People in Special Circumstances

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

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

Programme componentsBereavement Allowance

Payments under Special Circumstances

Income support for people in special circumstancesThrough the act-of-grace provisions, individuals or other bodies were able to access the option of one-off and periodic payments because of their special circumstances.

We also provided ex-gratia payments — such as the Bali Lifetime Rehabilitation Assistance Package — to help individuals and families affected by disasters and other crises.

Bereavement Allowance helped 979 people at a cost of $4.54 million while 33 people received payments under Special Circumstances at a cost of $0.64 million. This is an 8 per cent combined increase in the number of people who received Bereavement Allowance and payments under Special Circumstances on 2013–14.

Table 4.8 Income Support for People in Special Circumstances — deliverablesResult

Bereavement AllowancePayments are made through DHS to eligible claimants under the provisions of social security law


Payments under Special CircumstancesPayments are made through DHS to eligible claimants under the provisions of social security law and the PGPA Act


Table 4.9 Income Support for People in Special Circumstances — key performance indicators

2012–13 2013–14 2014–15

Bereavement Allowance

Number of recipients 979 908 979


Payments under Special Circumstances


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2012–13 2013–14 2014–15

Administered outlays $2.61ma $0.47m $0.64m

Programme 1.5Supplementary Payments and Support for Income Support

Recipients

Objective: To make payments and subsidise services to certain income support recipients and low income households to assist them financially and to help them continue to

participate economically and socially.

Programme componentsLow Income Supplement

Utilities AllowanceReimbursement to Great Southern Rail for Concessional Fares

Essential Medical Equipment Payment

Supplementary payments and support for income support recipientsWe made supplementary payments to assist 63,683 vulnerable people with the cost of utilities.

We also helped 6,429 people on low incomes with household expenses, including energy costs through the Low Income Supplement.

a The increase in administered outlays in the 2012-13 financial year was due to the additional support provided for the 10 year anniversary of the 2002 Bali Bombings, under the Bali Lifetime Rehabilitation Assistance Package.

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Table 4.10 Supplementary Payments and Support for Income Support Recipients — deliverables

Result

Low Income Supplementa



Utilities AllowancePayments are made through DHS to eligible claimants under the provisions of social security law


Reimbursement to Great Southern Rail for Concessional FaresGreat Southern Rail is under agreement to provide concessional fares on its services for eligible passengers

Concessional fares were reimbursed as described

Essential Medical Equipment PaymentPayments are made through DHS to eligible claimants under the provisions of social security law


Table 4.11 Supplementary Payments and Support for Income Support Recipients — key performance indicators

2012–13 2013–14 2014–15

Low Income Supplement



Utilities Allowance

Number of recipientsb 75,131 69,969 63,683

Reimbursement to Great Southern Rail for Concessional Fares



Number of journeys 56,945 58,086 53,204

a The Low Income Supplement was incorrectly named the ‘Energy Supplement’ and the ‘Clean Energy Low Income Supplement’ in the 2014-15 PBS and the ‘Clean Energy Low Income Supplement’ in the 2014-15 PAES.b Following machinery-of-government changes on 18 September 2013, reporting of Utilities Allowance has now been brought together under Programme 1.5. Financial years 2012-13 and 2013-14 have been adjusted retrospectively to reflect this change.

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2012–13 2013–14 2014–15

Essential Medical Equipment Payment


Number of paymentsc - - 36,513

Programme 1.6 Income Support for Seniors

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

Programme componentsAge Pension

Widow B PensionWife Pension (Age)

Income support for seniorsThe Age Pension is a social security income support payment that can assist those who meet age and residence criteria.

About 69.8 per cent of Australians of pension age received Government income support, including the Age Pension.

The Age Pension is targeted through the means test to those who need it most.

The Age Pension is made up of the base pension, the Pension Supplement and the Energy Supplement. Maximum pension rates are adjusted twice yearly, in March and September, using a formula linked to changes in prices and wages.

This year the Age Pension supported 2.49 million seniors at a cost of $41.37 billion. This was an increase of 5 per cent on 2013–14.

Table 4.12 Income Support for Seniors — deliverablesResult



c In the 2012-13 and 2013-14 Annual Reports, the key performance indicator was previously reported as the number of recipients (not payments) - 26,229 and 26,134 respectively.

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Table 4.13 Income Support for Seniors — key performance indicators2012–13 2013–14 2014–15

Age Pension

Number of recipients 2.36 million 2.41 million 2.49 million

Administered outlays $36.28b $39.39b $41.37b


40.9%

(963,251)

41.1%

(989,211)

41.7

(1,036,452)

Ratio of assessed income of pensioners to their total income

$23.47:$100 $23.15:$100 $23.42:$100

Percentage and number of senior Australians who receive payment

69.4%

2.36 million

69.8%

2.41 million

69.8%

2.49 million

Percentage and number of recipients with employment income

4.1%

97,318

4.3%

103,511

4.4%

110,249

Percentage and number of new entrants with employment income

11.5%

19,551

12.4%

18,235

12.0%

22,165


Agreements are in place with all service delivery agencies


Strategies are in place to ensure that the requirements are fulfilled under agreements with providers

Strategies are in place with DHS and the Department of Veterans’ Affairs

Widow B Pension




36.2%

(178)

41.7%

(192)

41.6%

(177)

Wife Pension (Age)




21.0%

(1,663)

20.7%

(1,561)

20.0%

(1,328)

Ratio of current number of Wife Pension (Age) recipients to the number of

20.0% 19.1% 16.7%

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2012–13 2013–14 2014–15Wife Pension (Age) recipients at 1 July 1995

Programme 1.7:Allowances and Concessions for Seniors

Objective: To make payments and provide services to senior Australians to assist with household expenses, enabling them to maintain their standard of living.

Programme componentsEnergy Supplement for holders of the Commonwealth Seniors Health Card

We also assisted seniors with allowances, concessions and services.

Australian Government-issued concession cards were available to 2,743,972 recipients aged 65 and over, so they could access certain health services and pharmacy items at a lower price.

State, territory and local governments may provide discounts to concession cardholders on the costs of utilities, council rates and public transport.

Table 4.14 Allowances and Concessions for Seniors — deliverablesResult



Table 4.15 Allowances and Concessions for Seniors — key performance indicators

2012–13 2013–14 2014–15

Seniors Supplement



Number of concession card holders by card type:

Pensioner Concession Card 3,820,081 3,947,951 4,040,497

Health Care Card 1,123,133 1,135,832 1,135,845

Low-Income Health Care Card 356,600 345,732 422,533

Commonwealth Seniors Health Card 283,591 285,980 288,416

Total 5,583,405 5,715,495 5,887,291

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Note: Not all holders of concession cards are seniors.

Programme 1.8: Income Support for People with Disability

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

Programme componentsDisability Support Pension

Income support for people with disabilityThrough the Disability Support Pension (DSP), we helped support 814,391 people with permanent physical, intellectual or psychiatric impairment who are unable to support themselves adequately through paid work.

This represented a decrease of 16,063 recipients, or 1.9 per cent per cent, who received this pension, compared with last year.

More than 22,000 Disability Support Pension recipients aged under 35 had a participation plan with a compulsory work-related activity to help them improve their skills and ability to work and find suitable employment.

Over recent years we improved the quality of assessments for the Disability Support Pension and encouraged people with disability who have some work capacity to gain employment.

Table 4.16 Income Support for People with Disability — deliverablesResult



Table 4.17 Income Support for People with Disability — key performance indicators

2012–13 2013–14 2014–15Disability Support Pension

Duration on paymenta 673 weeks 691 weeks 715 weeks

Percentage and number of recipients reporting employment income

8.3%(68,437)

8.2%(67,684)

8.2% (66,506)


18.6%(152,516)

17.9%(148,362)

17.5% (142,654)




a This is point-in-time, overall average duration of income support recipients and includes duration on other income support payments prior to claiming Disability Support Pension (DSP) where there has been no break.

41

2012–13 2013–14 2014–15

Confidence Interval +/- 4.68% +/- 0.71% +/-0.86%


Agreement is in place with DHS

Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies


Percentage and number of estimated population of people with disability who receive paymenta

20.4%(821,738/4,026,200)

19.6%(830,454/4,234,200)

19.2%(814,391/

4,234,200)

Percentage and number of DSP population as a proportion of the total Australian working-age populationb

5.1%(790,576/

15,423,994)

5.1%(794,257/

15,641,287)

4.9% (773,218/

15,845,156)

Programme 1.9: Income Support for Carers

Objective: To make payments and allowances to financially assist eligible carers of people with disability or a severe medical condition.

Programme componentsCarer Payment

Carer Allowance (Adult)Carer Allowance (Child)

Carer SupplementChild Disability Assistance Payment

Ex-gratia Payments to Unsuccessful Applicants of Carer Payment (Child) (Carer Adjustment Payment)Wife Pension (DSP)

Income support for carersAt June 2015, more than 600,000 carers received assistance through the Income Support for Carers programme at a cost of $7.5 billion. This helped them to perform their essential role in Australian society. Our Department provided carers a variety of annual and fortnightly payments.

a The result is derived from the Australian Bureau of Statistics Survey of Disability, Ageing, and Carers (cat. no. 4430), and is the number of people with disability. Not all people with disability have a work limitation or rely on DSP.b This result is a point-in-time count of DSP recipients and the Australian Bureau of Statistics (cat. No. 3222.0) data on the working-age population aged 15– 64 years.

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Carer Payment helps people who provide constant care to a person with disability or severe medical condition and helps those whose caring role prevents them from undertaking substantial paid work.

The Carer Allowance assists people who provide daily care and attention to a person with disability or severe medical condition. This income supplement may be paid in addition to an income support payment, such as Carer Payment.

Table 4.18 Income support for carers— deliverablesResult

Ex-gratia payments to unsuccessful applicants for Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the FMA Acta

Annual allocated budget fully expended



Table 4.19 Income support for carers — key performance indicators

2012–13 2013–14 2014–15Carer PaymentNumber of recipients 221,954 243,856 255,542





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 paymentbc

28.8%(221,954/771,400)

31.7%(243,856/769,800)

33.1%(255,542/ 769,800)

Percentage and number of recipients reporting employment income

10.1%(22,496)

10.0%(24,345)

9.8% (24,938)


25.1%(55,776)

24.7%(60,287)

24.6% (62,766)

a The FMA Act was replaced by the PGPA Act from 1 July 2014.b The result of this indicator relies on the definition of primary carer used by the ABS Survey of Disability, Ageing and Carers (cat. no. 4430.0), and is the number of people who provided the most informal help needed by a person with disability. Eligibility for Carer Payment and Carer Allowance is not determined by the ABS definition of primary carer.c The number of primary carers in 2012-13 is sourced from the 2009 Survey of Disability, Ageing and Carers. The number of primary carers in 2013-14 and 2014-15 is sourced from the 2012 Survey of Disability, Ageing and Carers.

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2012–13 2013–14 2014–15Carer Allowance (Adult and Child)Number of recipientsa 563,079 590,181 601,364

Administered outlays:

Carer Allowance (Adult) $1.36b $1.44b $1.51b

Carer Allowance (Child) $496.6m $521.1m $538.7m




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 paymentbc

73.0%(563,079/771,400)

76.7%(590,181/769,800)

78.1% (601,364/ 769,800)

Carer SupplementNumber of recipients 577,688 597,697 614,815


Child Disability Assistance PaymentNumber of recipients 146,741 147,670 150,757


Wife Pension (DSP)Number of recipientsde 8,789 7,683 6,612


Percentage and number of recipients reporting employment incomef

23.4%(2,060)

23.5%(1,802)

23.0%(1,522)

Percentage and number of recipients on part rate due to the means testg

30.3%(2,664)

30.4%(2,332)

30.0%(1,981)

Ratio of current number of Wife Pension (DSP) recipients to the number of Wife

8,789/121,839

7.2%

7,683/121,839

6.3%

6,612/121,839

a Excludes carers whose care receiver qualified for a Health Care Card only.b The result of this indicator relies on the definition of primary carer used by the ABS Survey of Disability, Ageing and Carers (cat. no. 4430.0), and is the number of people who provided the most informal help needed by a person with disability. Eligibility for Carer Payment and Carer Allowance is not determined by the ABS definition of primary carer.c The number of primary carers in 2012-13 is sourced from the 2009 Survey of Disability, Ageing and Carers. The number of primary carers in 2013-14 and 2014-15 is sourced from the 2012 Survey of Disability, Ageing and Carers.d Results are a point-in-time count.e The decrease in numbers is due to the payment being closed to new applications since July 1995.f Results are a point-in-time count.g Results are a point-in-time count.

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2012–13 2013–14 2014–15Pension (DSP) recipients at 1 July 1995a 5.4%

a The decrease in numbers is due to the payment being closed to new applications since July 1995.

45

Programme 1.10: Working Age Payments

Objective: Working age payments assist people who are temporarily unable to support themselves through work or have a limited capacity to work due to disability or caring

responsibilities for young children. These payments provide income assistance which is generally contingent upon the recipient actively looking for paid work and improving their

employability through training or work experience where required. Eligibility for payments is highly targeted, with income tests and supplementary payments ensuring that assistance is

directed to those with the greatest need.

Programme componentsNewstart Allowance

Parenting Payment Single and Parenting Payment PartneredPartner Allowance Benefit and Partner Allowance Pension

Sickness AllowanceWidow Allowance

Compensation and Debt ReliefYouth Allowance (Other)

Working Age PaymentsWorking age payments provide income support for Australians of working age (generally between 15 and 64 years), including unemployed people looking or preparing for work, people who are temporarily unable to work and parents caring for young children.

Working age payments provide a balance of targeted financial assistance and incentives for people to participate according to their capacity and become self-reliant.

As at June 2015, 748,719 people were supported through Newstart Allowance and 112,620 through Youth Allowance (other). These payments support people of working age while they look for work or do other appropriate activities.

Table 4.20 Working Age Payments — deliverablesResult

Payments are made through the Department of Human Services to eligible claimants under the provisions of social security law


Table 4.21 Working Age Payments — key performance indicator targets2012–13 2013–14 2014–15

Estimate Actual Estimate Actual Estimate Actual

Average (mean) duration on income support by current income support payment (weeks):

46

2012–13 2013–14 2014–15


Newstart Allowance 230 228 229 230 233 239

Youth Allowance (Other)

89 94 94 94 97 93

Parenting Payment Single

286 286 286 287 289 292

Average (mean) duration on Newstart Allowance (weeks)

–a 99 98 108 100 118

Percentage of income support recipients who exit income support within three months of grant:

Newstart Allowance 32% 26% 27% 24% 28% 24%


33% 27% 25% 24% 23% 22%

Percentage of income support recipients who exit income support within 12 months of grant:

Newstart Allowance 75% 67% 65% 65% 64% 63%


71% 67% 69% 66% 68% 62%

Programme 1.11: Student Payments

Objective: To achieve growth in skills, qualifications and productivity through:

providing income support to students through Youth Allowance (student) and Austudy to assist them to undertake further education and training;

increasing access and participation by Indigenous Australian students in school education, vocational education and training and higher education and accelerating their educational

outcomes.

Programme componentsAustudy

Youth Allowance (student)ABSTUDY – Secondary and ABSTUDY – Tertiary

Student payments

a The average (mean) duration on Newstart Allowance was first reported in 2013-14.

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Student payments assist with the financial difficulties some students and their families may experience in undertaking education and training. Several measures assist people financially, including Youth Allowance (student), Austudy and ABSTUDY Living Allowance.

This year on average 295,999 students and apprentices received a student payment. This has decreased from last year by 3.3 per cent.

An average of 221,551 people were supported through the Youth Allowance (student) and an average of 45,693 through Austudy. These payments support full-time students and apprentices who need financial assistance to undertake education or training.

An average of 28,755 people were supported through ABSTUDY, helping Aboriginal and Torres Strait Islander peoples meet their living costs while studying or on full-time apprenticeships.

From 1 January 2015, changes were introduced to ensure the payment system remains sustainable:

» Students from major cities are no longer eligible for the Relocation Scholarship unless they move to study at a regional campus. Students living in regional areas continue to be eligible.

» Students are no longer eligible for student payments while holidaying overseas, but will remain eligible while studying through formal overseas exchange programmes as part of their Australian qualifications, undertaking Reserve Service, receiving eligible medical treatment or attending a family crisis.

This year, the Government announced that from 1 July 2015 the ABSTUDY Under-16s Boarding Supplement would be extended to hostels.

Table 4.22 Student Payments — deliverablesResult

Provision of support through ABSTUDY, Austudy and Youth Allowance (student)


Table 4.23 Student Payments — key performance indicators2012–13 2013–14 2014–15


Provision of support through Austudy:

Average number of higher education students in receipt of Austudy during the year

28,200 28,813 29,300 31,371 33,500 31,146

Average number of Australian Apprentices and students attending a TAFE or private training institution in receipt of Austudy during the year

11,800 12,265 11,600 13,484 12,900 14,240

Average number of secondary students in receipt of Austudy during the year

600 574 500 497 600 307

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2012–13 2013–14 2014–15


Average total number of students in receipt of Austudy during the year

40,500 41,652 41,400 45,352 47,000 45,693

Provision of support through Youth Allowance (student)

Average number of higher education students in receipt of Youth Allowance (student) during the year

155,900 158,049 163,300 170,389 178,100 171,531

Average number of Australian Apprentices and students attending a TAFE or private training institution in receipt of Youth Allowance (student) during the year

36,700 37,161 36,700 38,476 38,100 37,364

Average number of secondary students in receipt of Youth Allowance (student) during the year

47,900 46,689 23,600 19,805 14,800 12,656

Average total number of students in receipt of Youth Allowance (student) during the year

240,550 241,899 223,600 228,669 231,000 221,551

ABSTUDY – Secondary

Average number of school students receiving ABSTUDY during the year

23,600 23,559 23,200 21,947 20,900 19,063

ABSTUDY – Tertiarya

Average number of higher education students receiving ABSTUDY during the year

4,400 4,308 4,300 4,815 4,400 4,927

Average number of Australian Apprentices and students attending a TAFE College or private training institution in receipt of ABSTUDY during the year

5,200 5,024 5,700 5,204 5,800 4,765

Average number of tertiary and VET students in receipt of ABSTUDY during the year

9,600 9,332 10,000 10,019 10,200 9,692

a Average of 2,026 ABSTUDY recipients listed as “not specified”. They are not included in these figures.

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Cross-programme: Rent Assistance

Objective: 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.

Rent AssistanceRent Assistance helped reduce the percentage of Australian individuals and families paying more than 30 per cent of their income in rent from 68.5 per cent without Rent Assistance to 41.2 per cent with Rent Assistance.

During this year, 1,343,431 individuals and families received Rent Assistance at a cost of about $4.2 billion; this support is expected to increase to $4.4 billion next year.

Rent Assistance is a non-taxable income supplement paid to eligible income support and Family Tax Benefit Part A families and individuals who rent in the private market and community housing.

Table 4.24 Rent Assistance — deliverablesResult

Rent Assistance payments are made through DHS to eligible claimants under the provisions of the social security law and family assistance law


Table 4.25 Rent Assistance — key performance indicators

2012–13 2013–14 2014–15

Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance:

• Before 67.2% 67.4% 68.5%

• After 40.1% 40.3% 41.2%

Proportion of Rent Assistance recipients paying enough rent to receive the maximum rate of assistance

76.1% 76.3% 77.8%

Proportion of clients assisted who identify as Aboriginal or Torres Strait Islander

4.3% 4.4% 4.8%

Average rent paid by Rent Assistance recipients by number of recipients, primary payment type and income unit typea

Results are provided at Table 4.26

a Results for this key performance indicator are provided in tables 4.26 and 4.27

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2012–13 2013–14 2014–15

Average Rent Assistance paid to Rent Assistance recipients by number of recipients, primary payment type and income unit typea

Results are provided at Table 4.27


Number of recipients 1,267,979 1,315,385 1,343,431

Table 4.26 Fortnightly average rent and Rent Assistance by primary payment type

Primary payment type

Average rent paid ($ per fortnight)

Average Rent Assistance paid ($ per fortnight)

2012–13 2013–14 2014–15 2012–13 2013–14 2014–15

Disability Support pension 375 386 397 111 114 116

Age Pension 365 380 395 101 105 107

Carer pension 464 481 496 116 120 123

Parenting Payment Single 515 533 551 121 125 128

Newstart Allowance 416 427 438 104 107 109

Youth Allowance 325 334 344 88 91 93

Austudy 403 415 427 97 100 102

Parenting Payment partnered

625 643 658 138 142 143

Family Tax Benefit only 665 686 705 99 101 102

Other 449 464 485 110 113 117

All individuals and families 443 457 470 106 109 111

Table 4.27 Fortnightly average rent and Rent Assistance by income unit type

Income unit type



2012–13 2013–14 2014–15 2012–13 2013–14 2014–15

Single, no children 350 363 373 108 111 113

Single sharer, no children 293 301 306 76 78 79

Couple, no children 476 493 506 102 105 108

Single Parent with children

534 552 568 118 122 125

Couple with children 655 676 693 113 116 118

Temporary separated couple due to illness

534 551 576 121 124 128

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Income unit type



2012–13 2013–14 2014–15 2012–13 2013–14 2014–15

All individuals and families 443 457 470 106 109 111

Programme 1.12: Programme Support for Outcome 1

Objective: To provide departmental funding for the annual operating costs of DSS to achieve agency outcomes.

Table 4.28 Programme Support for Outcome 1 — deliverablesResult

Departmental funding is expended to achieve agency outcomes

Funds were expended as described

Table 4.29 Programme Support for Outcome 1 — key performance indicatorsResult

Total departmental funding for Outcome 1 $150.43m

Looking forwardWorking age payments need to remain sustainable and targeted to those in the greatest need, while providing strong incentives for able people of working age to enter and remain in the workforce.

Also in 2015–16, the Department will extend immunisation requirements to protect children of all ages and broader public health.

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Chapter 5 Outcome 2 — Families and CommunitiesProgramme 2.1 Families and CommunitiesProgramme 2.2 Paid Parental LeaveProgramme 2.3 Social and Community ServicesProgramme 2.4 Support for the Child Care SystemProgramme 2.5 Child Care BenefitProgramme 2.6 Child Care RebateProgramme 2.7 Programme Support for Outcome 2

Stronger families and more resilient communities by developing civil society and by providing family and community services.

We helped families and children by funding early childhood and child care services and an estimated 1.6 million children received child care last year.

This year our Department delivered programmes and payments for disadvantaged and at-risk children, young people and families, volunteers, multicultural communities, humanitarian entrants, migrants and other people with special circumstances.

These helped families combine work and family life, build financial capability, strengthen family relationships and build community resilience, all of which contributed to improving their lifetime wellbeing.

We assisted parents and carers to access affordable child care and supported services to deliver high quality early childhood education and care.

Our achievements» provided financial support for 158,974 eligible working parents of newborn or

recently adopted children to care for their child and help them back into the workforce and enabled 70,785 eligible fathers and partners to take time off work to bond with their child and to improve work-life balance

» helped over 893,990 individuals and families with immediate basic needs in times of crisis or hardship

» supported 838,401 individuals, families and children through a variety of family support services

» supported families by providing $6.6 billion in child care fee assistance, approximately $1 billion more than the previous financial year

» responded to the Productivity Commission’s Report into Childcare and Early Childhood Learning, the most comprehensive review of child care since the 1980s which, following extensive consultation, led to the announcement of the

53

Government's Jobs for Families Package including a new and simpler Child Care Subsidy from 1 July 2017 which will support families with better access to affordable child care

» undertook targeted compliance action on 197 child care services not correctly applying the rules under family assistance law – the estimated impact of this action over the twelve months to 31 March 2015 is up to $225 million

Our performance

Programme 2.1: Families and Communities

Objective: The Programme aims to strengthen relationships, support families, improve children’s wellbeing and increase the participation in community life to strengthen family and community functioning, and reduce the costs of family breakdown. The Programme provides

a range of services, focussed on strengthening relationships, and building parenting and financial management skills, providing support for better community connections, as well as

services to help newly arrived migrants in their transition to life in Australia.

These services are provided to families, children, young people, volunteers, multicultural communities, humanitarian entrants, migrants and other individuals with special

circumstances.

Programme componentsFamilies and Children

Transition to Independent Living AllowanceSettlement Services

Financial Wellbeing and CapabilityCivil Society

Families and Communities Service Improvement Strengthening Communities

National Initiatives

We supported 907,098 families and individuals across Australia who required financial information, advocacy and/or immediate financial or material assistance to address their needs in times of financial difficulty. A total of 24,122 families and individuals were able to access no or low-interest loans for essential household items.

Since the release of the Second Action Plan (27 June 2014) of the National Plan to Reduce Violence against Women and their Children 2010-2022 we have continued a number of key national initiatives as well as implemented new initiatives designed to make a significant and sustained reduction in violence against women. These include:

» supporting 29 small group kitchen table conversations with culturally and linguistically diverse (CALD) women leaders and communities about domestic violence and sexual assault

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» improved accessibility to information on the 1800RESPECT website by releasing resources in 28 community languages, go to the Domestic Violence Resource Centre Victoria website.

» provided additional funding to 1800RESPECT to help meet demand

» developed the first national app called DAISY that connects women around Australia to a range of services in their state and local area

» released the Australian National Research Organisation for Women’s Safety (ANROWS),the national domestic and family violence and sexual assault research programme consisting of 20 projects across five strategic themes

» released the 2013 National Community Attitudes Survey and worked with Our Watch to update and relaunch The Line website.

We have also supported the Government following the Council of Australian Government’s (COAG) agreement in April 2015 to undertake urgent action to develop a national domestic violence order scheme, national perpetrator standards and strategies to tackle the increased use of technological abuse.

We supported some 838,400 families and individuals across Australia to improve the wellbeing of children and young people, enhance family and community functioning, and increase the participation of vulnerable people in community life.

We implemented the Children and Parenting Support services in 139 locations to support parenting by providing early intervention and prevention services.

We established the new Forced Adoption support services in March, to support people affected by forced adoption policies and practices, with services in each state and territory providing assistance through a telephone support line, face-to-face support and records tracing where possible.

We delivered services to migrants and humanitarian entrants to settle successfully throughout the country. For example, this year we assisted clients through programmes that included the Humanitarian Settlement Service (which helped 11,130 people to settle in Australia), Complex Case Support (741 cases), Settlement Grants services (42,063 services) and Free Translating and Interpreting services (247,684 services).

We continued to support the Government in developing a national policy approach to help problem gamblers. This year the Government spent $287,000 on the Household Income and Labour Dynamics in Australia (HILDA) survey and the Longitudinal Study of Australian Children for the inclusion of gambling content, the Consumer Voices project, and Gambling Help Online.

The Reconnect initiative provided community-based early intervention for young people aged 12 to18 years (and young people aged 12 to 21 for Reconnect-Newly Arrived Youth Specialist services), who were homeless or at risk of homelessness, and their families.

Reconnect has a strong focus on family relationships as they are an important foundation to improving the living situation of young people at risk of homelessness.

We assisted 5,808 young people who were homeless or at risk of homelessness through the Reconnect programme. Of these 92.4 per cent reported an improved situation after assistance from this programme.

Our investment in strengthening communities helped more than 348,000 individuals and 48,000 organisations to become more resilient and connected to their communities. Of these, at least 38,000 people were from Indigenous and CALD backgrounds.

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http://www.theline.org.au/

http://www.dvrcv.org.au/1800-respect

http://www.dvrcv.org.au/1800-respect

We also established the national Intercountry Adoption Australia information line and website to help guide people through the Intercountry Adoption process and connect them to a range of services and resources.

The Home Interaction Programme for Parents and Youngsters (HIPPY) continued to operate in 75 communities. This includes 25 new Aboriginal and Torres Strait Islander focused communities. Once fully established, HIPPY will operate in 100 communities across Australia, supporting about 4,000 children each year.

Table 5.1 Families and Communities — deliverables

2012–13 2013–14 2014–15

Families and ChildrenNumber of clients assisted 799,112 731,892 838,401

Transition to Independent Living Allowance

Number of Transition to Independent Living Allowance (TILA) claims granted

2,566 1,434 908

Settlement Services

Number of clients assisted:

• Number of clients assisted through HSSa 15,827 14,205 11,130

• Number of clients assisted through Complex Case Support (CCS)b 501 425 741

• Number of Settlement Grant clients assisted 40,334 42,530 42,063

• Free Translating and Interpreting services provided – 253,505 247,684

Financial Wellbeing and Capability

Number of clients assisted –c –c 907,098

Number of people on Income Management by measure:

• Total 21,740 25,677 26,396

• Vulnerable Welfare Paymentd 196 2,943 3,053

a Variation is due to a reduction in Australia’s humanitarian intake.b CCS is a fee for service demand driven programme.c During 2014-15 the Department was transitioning to a new data collection and reporting system; the DSS Data Exchange to improve the way we collect and use programme performance information. These figures represent data collected from the DSS Data Exchange as well as from other historical reporting systems that cease operating from 1 July 2015. As such, this data should be treated as a one-off transition period and not compared to historical or future reporting trends.d From 1 July 2013 the Vulnerable Welfare Payment Recipient measure was extended to young people who are granted the Unreasonable to Live at Home rate of income support by a Centrelink social worker; people under the age of 16 who are granted Special Benefit by a Centrelink social worker; and people under the age of 25 who

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2012–13 2013–14 2014–15

• Parenting/Participation measure 14,896 15,909 16,837

• Voluntary Income Management 6,041 6,047 5,828

• Child Protection Measure 392 435 337

• Cape York Welfare Reform – Income Management 202 201 128

• Supporting People at Risk measuree <20 142 213

Civil Society

Establishment of the Community Business Partnership

Established

Families and Communities Service Improvement

Provide national leadership and representation for services that work to strengthen the wellbeing, safety and resilience of families, children and communities

Deliverable met for the period March to June 2015

Strengthening Communities

Number of individuals assistedf 348,676

Number of organisations assistedg 48,509

National Initiatives

Number of contacts for 1800RESPECT – the National Sexual Assault, Domestic Family Violence Counselling Service (telephone and online)

28,393 43,677 44,914

receive a crisis payment due to prison release. Increase in numbers was due in part to the extension of the Vulnerable Welfare Payment Recipient measure which has resulted in a further increase in numbers.e Participation in the Supporting People at Risk measure is dependent on referrals from the Northern Territory Alcohol Mandatory Management Tribunal.f Data reflects assistance for Community Capacity Building, Broadband for Seniors, Volunteer Management and Diversity and Social Cohesion. (from 1 March 2015).g Data reflects assistance to Volunteer Management, Broadband for Seniors and some Community Capacity Building projects (from 1 March 2015 and only relevant for projects providing support to organisations).

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Table 5.2 Families and Communities — key performance indicators

2012–13 2013–14 2014–15

Families and Childrena

Percentage of clients with improved family functioning, including child wellbeing, safety and developmentb

88% 92% 80%

Percentage of clients with improved knowledge, skills, behaviours and engagement with servicese

88% 91% 84%

Percentage of clients from priority target groupsc

20% 20% 18%

Percentage of clients from disadvantaged or targeted communitiesd

–e –c –c

Financial Wellbeing and Capability

Percentage of clients with improved financial wellbeing and capabilityf

–g –e 83%

Percentage of clients achieving individual goals related to financial counselling and capabilityh

–e –e 97%

Percentage of clients from priority target groups

–e –e 13% Aboriginal and Torres Strait Islander peoples

a Data is not comparable across the three years as in each year the data is reporting on different combinations of programmes. Communities for Children Direct and Families and Relationship Services for Humanitarian Entrants ceased during 2014-15 and the new Children and Parenting Support component began on 1 March 2015.b Measured as client self reports of improved family, community and economic engagement or improvements in engagement with services.c Measured as Indigenous and CALD clients. Children have been included for 2013-14 only.d Measured as clients receiving services in disadvantaged communities.e During 2014-15 the Department was transitioning to a new data collection and reporting system; the DSS Data Exchange to improve the way we collect and use programme performance information. These figures represent data collected from the DSS Data Exchange as well as from other historical reporting systems that ceased operating from 1 July 2015. As such, this data should be treated as a one of transition period and not compared to historical or future reporting trends.f Measured as service providers self reports of clients whose immediate crisis needs were met through Financial Crisis and Material Aid and Commonwealth Financial Counselling (CFC), Financial Capability (FC – formerly Money Management services and HOME Advice).g During 2014-15 the Department was transitioning to a new data collection and reporting system; the DSS Data Exchange to improve the way we collect and use programme performance information. These figures represent data collected from the DSS Data Exchange as well as from other historical reporting systems that ceased operating from 1 July 2015. As such, this data should be treated as a one of transition period and not compared to historical or future reporting trends.h Measured as CFC and FC service providers self-assessment of the extent to which their clients were assisted to improve their financial capability; and pathways to mainstream financial services.

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2012–13 2013–14 2014–15

9% CALD

Percentage of clients from disadvantaged or targeted communities

–e –e –e

Number of clients assisted 907,098

Strengthening Communities

Percentage and number of individuals assisted from Indigenous and CALD backgroundsa:

50%

46,484

30%

21,006

12%

31,985

• Indigenous percentage 43% 22% 3%

• Indigenous number 39,937 15,077 10,259

• CALD percentage 11% 9% 10%

• CALD number 6,547 5,929 28,296

Percentage and number of individuals reporting improved skills and confidenceb:

• Improved skills 90%

353

88%

64

92%

270

• Improved confidence 86%

340

92%

67

94%

275

Percentage and number of individuals participating in education or training activitiesc

77%

4,668

70%

2,474

14%

31,766

Percentage and number of individuals satisfied with service provisiond

88%

87,746

90%

62,568

93%

31,120

Milestones and timelines specified in funding agreements for grants are met

Met Met Met

Government agencies report increased client satisfaction with the delivery of government

Met Met Met

a Comparable data is not available across the three years due to Machinery of Government changes and subsequent streamlining of the Department’s grant programmes.b Data relates to Broadband for Seniors, collected through voluntary participant surveys and is not comparable due to a change in service provider from 1 May 2015 and changes in data collection methods. Information to support data is collected through voluntary surveys completed by senior Australians accessing Broadband for Seniors kiosks. The 2013-14 and 2014-15 data is based on a low response rate. The 2014-15 data is inconsistent due to a change in service provider from 1 May 2015 and changes in data collection methods.c Data relates to Broadband for Seniors and Volunteer Management. Comparable data is not available due to Machinery of Government changes and a change in Broadband for Seniors service provider from 1 May 2015 and changes in data collection methods.d Comparable data is not available due to Machinery of Government changes and subsequent streamlining of the Department’s grant programmes.

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2012–13 2013–14 2014–15

servicesGovernment services available and accessible nationwide

Met Met Met

Settlement Services

Numbers of new migrants and humanitarian entrants assisted by settlement information and services nationwide

56,662a 310,665 301,618

National Accreditation Authority for Translators and Interpreters (NAATI) provide a high quality credentialing service supported by members

Met Met Met

Administer the payment for the provision of fee-free language services for eligible clients

Met Met Met

Milestones and timelines specified in funding agreements for grants are met

Met Met Met

Civil SocietyIncreased rates of giving, volunteering and corporate social responsibility

– – –b

Families and Communities Service ImprovementPercentage of stakeholders satisfied with service provision

Service commenced 1 March 2015 with reporting due 30 June 2016

National InitiativesPercentage and number of contacts for 1800RESPECT —the National Sexual Assault, Domestic Family Violence Counselling Service (telephone and online) — who are women

86%24,420

86%37,560

85%38,180

Transition to Independent Living Allowance

Number of young people supported by TILA 2,566 1,433 863

a Does not include Translating and Interpreting numbers as these were not reported on prior to 2013-14.b Civil Society appropriation announced in the 2014-15 Budget – The Prime Minister’s Community Business Partnership was established in October 2014 to advise Government on practical strategies to foster a culture of giving, volunteering and investments in Australia. The Partnership has engaged with a broad cross section of stakeholders and experts to discuss ideas and have observed a significant re-energising of interest in philanthropy, volunteering and social impact investment in Australia. Giving Australia 2015 was commissioned in June 2015 to collect comprehensive, up-to-date information from individuals, charitable organisations, philanthropists and businesses in Australia. This includes the giving of time, information, goods and services, voice and influence, as well as money, to improve the wellbeing of humanity and the community. Giving Australia 2015 will provide critical information about giving and volunteering behaviours, attitudes and trends.

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Programme 2.2: Paid Parental Leave

Objective: To make payments to families to assist with the costs of a newborn or recently adopted child, extend the period that parents can be away from work to spend time with their

child and support employers to attract and retain a skilled workforce.

Programme componentsParental Leave Pay

Baby BonusDad and Partner Pay

We supported families by enabling them to spend more time away from work with a newborn or recently-adopted child in two main ways under the Government’s Paid Parental Leave scheme:

» Parental Leave Pay — which provides eligible working parents up to 18 weeks’ pay at the rate of the national minimum wage, which was about $641 a week before tax this year. A total of 158,974 families started receiving the payment last year. The outlay for Parental Leave Pay totalled $1.84 billion.

» Dad and Partner Pay — which provides eligible working fathers or partners with up to two weeks’ pay at the rate of the national minimum wage. A total of 70,785 fathers or partners received the payment last year. The outlay for Dad and Partner Pay totalled $89.43 million.

Table 5.3 Paid Parental Leave — deliverables

Result

Parental Leave PayDHS either funds employers to provide Parental Leave Pay to eligible employees, or provides Parental Leave Pay directly to eligible parents and other persons, according to the provisions of the Paid Parental Leave Act 2010


Baby Bonus

Baby Bonus is paid through DHS to eligible parents under the provisions of the family assistance lawa


Dad and Partner Pay

Dad and Partner Pay is paid by DHS directly to eligible fathers or partners in accordance with the


a From 1 March 2014 the Baby Bonus was no longer available for children born or placed for adoption on or after 1 March 2014. Payments could be made to families up until 52 weeks after the date of birth or adoption of their child. For children born or placed for adoption from 1 March 2014, eligible families may receive the Newborn Supplement and Newborn Upfront Payment.

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ResultPaid Parental Leave Act 2010

Table 5.4 Paid Parental Leave — key performance indicators

2012-13 2013-14 2014-15

Parental Leave Pay

Percentage and number of mothers for whom PLP has been paid as a proportion of all mothers in the same year:

• Percentage 45.3%a,b 46.7%a,b 50.4%a,b

• Number 130,623 144,255 158,145

Percentage and number of parents paid government-funded PLP by employers:

• Percentage 73.7% 72.8% 69.8%

• Number 123,502 133,274 141,241

Percentage and number of families who have taken the full 18 weeks of PLP:

• Percentage 97.7% 97.4% 97.0%

• Number 126,702 135,846 154,766

Agreement is in place with DHS Agreements are in place with DHS

Strategies are in place to ensure that requirements are fulfilled under agreements with DHS

The bilateral management arrangement (BMA) with DHS requires quarterly reports and information exchanges to ensure that all risks are being managed. Strategic business discussions are also held on a quarterly basis with DHS.

Administered Outlays $1.84b

Baby Bonus

Percentage and number of children for who Baby Bonus is paid as a proportion of all children in the same year

Around 1,000 (0.3%)

Number of recipients Around 1,000


Agreement is in place with DHS Agreements are in place with DHS


The BMA with DHS requires quarterly reports and information exchanges to ensure that all risks are being managed. Strategic business discussions are also held on a quarterly basis with DHS.

Dad and Partner Pay

Percentage and number of dads and other partners who have taken the full two weeks of DAPP:

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2012-13 2013-14 2014-15

• Percentage 96.6% 96.4% 96.2%

• Number 26,212 72,975 68,063

Agreement is in place with the DHS Agreements are in place with DHS

Strategies are in place to ensure that requirements are fulfilled under agreements with DHS

The BMA with DHS requires quarterly reports and information exchanges to ensure that all risks are being managed. Strategic business discussions are also held on a quarterly basis with DHS.

a Figures for 2012–13 are based on the Australian Bureau of Statistics (ABS) publication (2008) Population Projections Australia 2006–2101, 3222.0, Series B estimates of persons aged 0 for June 2012 and 2013. b Figures for 2013–14 and 2014-15 are based on ABS publication (2013) Population Projections Australia 2012–2101, 3222.0, Series B estimates of persons aged 0 for June 2014 and June 2015.

Programme 2.3: Social and Community Services

Objective: To set aside funding for the implementation period of Fair Work Australia’s Remuneration Order. These funds will be used by the Australian Government to meet its

share of the pay increases provided by the pay equity orders, including those funded through the states and territories.

Our Department manages the Social and Community Service Pay Equity Special Account which is providing $2.9 billion over nine years to fund the Australian Government’s share of wage increases awarded under the Social, Community, Home Care and Disability Services Industry Award 2012.

This followed a Fair Work Australia equal remuneration order made on 22 June 2012.

Seven Australian Government agencies draw on this fund to pay social and community services sector supplementation to organisations that deliver Commonwealth in-scope programmes.

Supplementation is also paid through the National Partnership Agreement on Pay Equity for the Social and Community Services Sector for organisations to deliver programmes through agreements with the states and territories.

Table 5.5 Social and Community Services — deliverables

ResultFunds are issued to eligible DSS service providers to meet the Australian Government’s share of pay increases


Funds are issued to other government agencies to meet the Australian Government’s share of the pay increases for their eligible


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Resultservice providers

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Table 5.6 Social and Community Services — key performance indicators

Result Estimatea ActualThe funds appropriated to DSS are issued to meet the Australian Government’s share of the pay increases

$204.4m $148.2m

a The estimate was based on 100% of service providers delivering in-scope Commonwealth Own Purpose Expenditure accepting supplementation. However, not all met the criteria to receive the funding. In addition, not all states finalised their implementation plans and submitted their first progress report for the 2014–15 milestone payment to be made.

Programme 2.4: Support for the Child Care System

Objective: Supports child care services so that more families can access quality child care and early childhood learning services. The Child Care Services Support Programme

(CCSSP) incorporates a number of components and payment types which are tailored to different types of child care in different circumstances. The programme helps families to

participate in the social and economic life of the community as it:

» promotes and supports quality child care

» assists services to improve access and inclusion for children with additional needs

» provides professional support to build the capacity of the child care sector and increase the supply of qualified early childhood educators

» supports the sustainability of child care for all Australian children and families including in areas and/or under circumstances where services would not otherwise

be viable

» develops, maintains and disseminates information to assist families to make informed decisions about child care and the related support programmes and

services provided or funded by the Government.

The details on the trend in the number of children with additional needs using government approved child care services is seen as a good measure of the overall effectiveness of

access to quality child care and early learning services. Families with children from the target groups identified often find it more difficult to access child care that is appropriate to their

special needs so monitoring their numbers is a good indicator for accessibility.

The National Quality Framework (NQF) is a Council of Australian Governments initiative that is given effect through a National Partnership (NP). The NP sets out indicators that the

Australian Children’s Education and Care Quality Authority is required to provide reports against.

Programme componentsChild Care Services Support

a The estimate was based on 100% of service providers delivering in-scope Commonwealth Own Purpose Expenditure accepting supplementation. However, not all met the criteria to receive the funding. In addition, not all states finalised their implementation plans and submitted their first progress report for the 2014–15 milestone payment to be made.

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Jobs, Education and Training Child Care Fee AssistanceLong Day Care Professional Development Programme

This year we spent $58.4 million towards the operational costs of nearly 300 Budget Based Funded (BBF) child care and early learning services, mainly in regional and remote areas and Indigenous communities.

Funding under the Jobs, Education and Training Child Care Fee Assistance (JETCCFA) programme was better targeted from January 2015 to help ensure that as many families as possible on income support received the skills they need to secure jobs and return to the workforce.

More than 55,000 full time equivalent educators in 5,000 long day care services received additional training and development under our Department’s $200 million Long Day Care Professional Development Programme.

We have worked with state and territory governments for the COAG Review of the National Quality Framework which has sought ways to reduce unnecessary red tape and regulatory burden, while maintaining the quality of child care and early learning services — in line with the National Partnership Agreement on the National Quality Framework.

We provided $98.7 million through the Inclusion and Professional Support Program to support child care services to include children with ongoing high support needs. This includes children with disability, children from CALD backgrounds, Indigenous children and children from backgrounds of refugee or humanitarian intervention.

The Australian Government’s commitment to reinstate funding for occasional care from 1 July 2014 progressed through the National Partnership Agreement on the National Occasional Care Programme this year. The Victorian and South Australian Governments signed agreements and implemented this programme but the governments of New South Wales, Queensland, Tasmania, the Australian Capital Territory and the Northern Territory advised that they would not participate in the programme, while Western Australia considered a later implementation date.

Table 5.7 Support for the Child Care System — deliverables

2012–13Budget

2012–13 Result

2013–14 Budget

2013–14 Result

2014–15 Budget

2014–15 Result

Child Care Services Support

Number of child care services receiving sustainability assistance

2,300 2,604 2,500 2,601 2,500 2,345

Number of child care services receiving establishment assistance

250 204 250 389 80a 132

Number of Budget Based Funded 344 342 343 311b 304c 304

a The projected decrease in the number of services receiving Establishment Assistance reflected the introduction of tightened eligibility criteria for Family Day Care services seeking funding from the Community Support Programme.b In 2013–14 there were 343 BBF services. In September 2013, administration for 32 BBF programme services (Stronger Futures Crèches in the Northern Territory and Indigenous Playgroups) transferred to the Department of

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2012–13Budget

2012–13 Result

2013–14 Budget

2013–14 Result

2014–15 Budget

2014–15 Result

(BBF) services

Jobs Education and Training Child Care Fee Assistance

Number of children in child care 48,500 56,200 53,900 34,900 51,100 32,400a

Number of parents assisted 30,400 36,200 34,700 22,900 33,600 21,200b

Table 5.8 Support for the Child Care System — key performance indicators

2012–13Budget

2012–13 Result

2013–14 Budget

2013–14 Result

2014–15 Budget

2014–15 Result

Child Care Services Support

Trend in the number of children with additional needs using government approved child care services — by target groups:c

• Children with disability 3% 3% 3% 3% 3% 3%

• Aboriginal, Torres Strait and Australian South Sea Islander children

3% 3% 3% 3% 3% 3%

• Children from non-English speaking backgrounds

17% 17% 17% 17% 17% 17%

the Prime Minister and Cabinet.c In 2014–15 the number of BBF services was reduced. This was due to five services (Yaandina Day Care Centre in WA, Ngukurr Creche, Maningrida Community Creche, Yuendumu Child Care Centre and Gunbalanya Creche in NT) being subsumed into the Children and Family Centres, with a further two services, administered under the Remote and Isolated Children’s Service in South Australia, merging into one on 1 July 2014.a At the time of publication, full data for 2014-15 Actuals was not available therefore this data is an estimated result.b Results reflect lower than expected demand for JETCCFA due to the impact of policy changes introduced in 2012-13 regarding qualifications, and in 2015, changes that capped the amount payable per hour and limited hours' eligibility for some recipients.c The number of children in target groups increases at approximately the same rate as the growth in child care. As a result, the proportion remains stable.

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Programme 2.5: Child Care Benefit

Objective: Assists parents with the cost of approved and registered child care. The provision of this assistance means more families are able to access quality child care

services. The effectiveness indicator (in the table below) provides details on the child care out-of-pocket expenses as a proportion of weekly disposable income after child care

subsidies.

Programme componentsChild Care Benefit

Child Care Benefit (CCB) is a means-tested payment to help parents meet the cost of approved and registered child care. The level of the benefit they receive varies depending on family income, the number of children in care, the hours of care and the type of child care used. The payment is targeted to assist low-income families who need the most support.

Our Department continues to enhance its compliance function to protect the integrity of child care fee assistance payments and provide assurance that taxpayer funds are being used appropriately. Our compliance activities are targeted towards services identified as being at high risk of non-compliance. During 2014–15, we imposed sanctions and penalties on 51 high risk services, including cancelling or suspending 15 service approvals, issued approximately $6.2 million in fines and recovered around $15.1 million in incorrect child care fee assistance payments.

Table 5.9 Child Care Benefit — deliverables

2012–13 Budget

2012–13 Actual

2013–14 Budget

2013–14 Actual

2014–15 Budget

2014–15 Actuala

Child Care Benefit

Number of children using approved child care places

1,321,000 1,347,000 1,436,000 1,476,000 1,588,000 1,591,000

Number of families using approved child care services

941,000 938,000 998,000 991,000 1,069,000 1,047,000

Number of families using approved child care services and receiving a child care payment (percentage of families who use care and receive a payment)

918,000(98%)

919,000(98%)

978,000(98%)

986,000(99.5%)

1,064,000(99.5%)

1,042,00(99.6%)

Number of families receiving both CCB and

659,000 649,000 686,000 614,000 740,000 640,000

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2012–13 Budget

2012–13 Actual

2013–14 Budget

2013–14 Actual

2014–15 Budget

2014–15 Actual

Child Care RebateNumber of families receiving only CCB

121,000 92,000 89,000 127,000 88,000 78,000

Table 5.10 Child Care Benefit — key performance indicators2012–13 Budget

2012–13 Actual

2013–14 Budget

2013–14 Actual

2014–15 Budget

2014–15 Actuala

Percentage of child care out-of-pocket expenses as a proportion of weekly disposable income after child care subsidies

8 to 12% 8 to 9% 8 to 12% 8 to 10% 8 to 12% 8 to 12%

Programme 2.6: Child Care Rebate

Objective: To provide additional assistance for parents who are working, training or studying and who use approved child care and early learning services.

Programme componentsChild Care Rebate

Child Care Rebate (CCR) is a non-means-tested payment that covers families for 50 per cent of their out-of-pocket approved child care expenses after the CCB has been received up to an annual maximum of $7,500 per child.

This helped eligible parents who are working, studying or training with the cost of approved child care.

Table 5.11 Child Care Rebate — deliverables2012–13 Budget

2012–13 Actual

2013–14 Budget

2013–14 Actual

2014–15 Budget

2014–15 Actual

Number of children using approved child care places

1,321,000 1,347,000 1,436,000 1,476,000 1,588,000 1,591,000

Number of families using approved child care services

941,000 938,000 998,000 991,000 1,069,000 1,047,000

Number of families using approved child care services and receiving a child care

918,000(98%)

919,000(98%)

978,000(98%)

986,000(99.5%)

1,064,000(99.5%)

1,042,000(99.6%)

a At the time of publication, full data for the 2014-15 Actual was not available therefore this data is an estimated result.

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2012–13 Budget

2012–13 Actual

2013–14 Budget

2013–14 Actual

2014–15 Budget

2014–15 Actual

payment (percentage of families who use care and receive a payment)Number of families receiving both CCB and CCR

659,000 649,000 686,000 614,000 740,000 640,000

Number of families receiving only CCR

138,000 178,000 203,000 349,000 236,000 325,000

Table 5.12 Child Care Rebate — key performance indicators

2012–13 Budget

2012–13 Actual

2013–14 Budget

2013–14 Actual

2014–15 Budget

2014–15 Actuala

Percentage of child care out-of-pocket expenses as a proportion of weekly disposable income after child care subsidies

8 to 12% 8 to 9% 8 to 12% 8 to 10% 8 to 12% 8 to 12%



Table 5.13 Programme Support for Outcome 2 — deliverables

ResultDepartmental funding is expended to achieve agency outcomes


Table 5.14 Programme Support for Outcome 2 — key performance indicators

ResultTotal departmental funding for Outcome 2 $227.35m

Looking forwardOur Department will continue to provide services to individuals, families and communities that help to strengthen relationships, support families, improve children's wellbeing and increase people’s participation in community life.

a At the time of publication, full data for 2014-15 Actuals was not available therefore this data is an estimated result.

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This strengthens family and community functioning and reduces the costs of family breakdown.

This year, five years of annual funding of $50.7 million began on 1 July 2014 under the Communities for Children Facilitating Partner programme involving 52 communities. This will continue to benefit disadvantaged communities throughout Australia through boosting whole-of-community approaches that improve early childhood development and wellbeing for children from birth to 12 years.

As well, up to 340,000 people who live in areas of particularly high disadvantage, where income management operates, will continue to have access to financial counselling and education to better budget and manage their money.

This will increase their capability to make informed decisions on the best course of action for resolving personal financial difficulties.

We will continue to help families and individuals by funding income management until 30 June 2017 under an Australian Government commitment of $146.7 million. A total of 26,396 people received support through income management this year.

We will continue to support the Government and COAG’s priority to implement actions critical to ensuring women and their children are safe. We will also lead development of the COAG agreed campaign to reduce violence against women and their children in 2015–16.

In addition, we will continue to work with state and territory governments and civil society to deliver and implement initiatives under the Second Action Plan of the National Plan to Reduce Violence against Women and their Children 2010–2022; with a focus on increasing community involvement in preventing violence against women and their children, increasing understanding about the experience of women from CALD backgrounds, Indigenous women and women with disability, integrate services and systems, and improve responses to perpetrators.

We will continue to work with our state and territory and non-government partners to deliver and implement the Third Action Plan for the National Framework for Protecting Australia’s Children 2009–2020 with a particular focus on the interrelationships between child protection and family violence, drug and alcohol abuse, and mental health.Our Department will progressively implement the Government’s Jobs for Families Package between January 2016 and July 2017.

From 1 January 2016, families who are currently struggling to access mainstream child care services will be able to apply for the Nanny Pilot Programme. This pilot will extend subsidy support to home-based care services provided by nannies.

From 1 July 2016, the Inclusion Support Programme will assist child care services to improve their capacity and capability to provide inclusive practices to include children with additional needs.

The remaining child care reform elements of the Jobs for Families Package will be implemented from 1 July 2017.

Immunisation will be promoted and public health protected by stronger immunisation requirements for children from January 2016.

The period for which Family Tax Benefit can be paid to an individual or, in respect of a child who is outside Australia, will be reduced from 56 weeks to six weeks from 1 January 2016. This change will also apply to eligibility for the Child Care Benefit.

We will continue to assist people to navigate the process of adoption of a child from overseas, by providing a central point of contact for people to access information and support on intercountry adoption. We will also continue to assist people through

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strengthening Australian Government support through improved referral pathways, including to family support services and other Government agencies and support services.

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Chapter 6Outcome 3 — Ageing and Aged CareProgramme 3.1 Access and InformationProgramme 3.2 Home SupportProgramme 3.3 Home CareProgramme 3.4 Residential and Flexible CareProgramme 3.5 Workforce and QualityProgramme 3.6 Ageing and Service ImprovementProgramme 3.7 Programme Support for Outcome 3

Improved wellbeing for older Australians through targeted support, access to quality care and related information services.

Australia’s population is ageing rapidly. By 2050, around 4.2 per cent of people will be aged 85 years and over, compared with about 2 per cent currently.

The Australian Government works with older people, their families, carers, aged care service providers and health professionals to deliver the care and services people need to retain their independence and wellbeing for as long as possible as they age.

Our achievements» more than 231,000a people accessed permanent residential aged care.

» more than 82,000a people accessed Home Care Packages.

» approximately 25,000a people accessed transition care.

» more than 812,000a people aged 65 years and over (and 50 years and over for Indigenous Australians) accessed Home and Community Care services (both Commonwealth and joint Commonwealth-state services)

» a total of 17,849 new aged care places (11,196 residential aged care places and 6,653 home care places)

» $103 million in capital grants were allocated in the national 2015 Aged Care Approvals Round — worth more than $833.6 million.

From 1 July 2014, to ensure the sustainability of the aged care system we introduced stronger means testing for people entering residential aged care or who commenced receiving care and services through a Home Care Package.

In residential aged care a new streamlined framework began for accommodation costs.

Throughout this year, our Department and the Aged Care Financing Authority monitored the impacts of these changes on providers and consumers.

a Results for 2014-15 are preliminary estimates, based on data available at end of August 2015.

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This year we helped ease the aged care industry’s administrative burden by preparing and beginning to implement a Red Tape Reduction Action Plan to reduce unnecessary red tape within the aged care system.

The Australian Government redirected $1.5 billion over five years from the Aged Care Workforce Supplement into the general pool of aged care funding for the sector. From 1 July 2014, this resulted in subsidies and funding arrangements across eligible aged care programmes increasing by 2.4 per cent, and an increase to the viability supplement of 20 per cent for providers in regional, rural and remote areas.

The Government undertook a stocktake of Commonwealth-funded aged care workforce activities to inform future funding priorities for its Aged Care Workforce Development Fund.

We supported the growth of culturally appropriate aged care — including capital grant funding in Western Sydney for the Maronite community and the Arabic speaking Muslim community. For the Maronite community, funding was provided to establish residential aged care services in Punchbowl and Harris Park, NSW. For the Arabic speaking Muslim community, funding was provided to establish residential aged care services in Lakemba, NSW.

This year we worked with providers and consumers to prepare for the major changes to the aged care system that commenced on 1 July 2015. These changes, which included the introduction of consumer-directed care into all Home Care Packages, the enhancement of My Aged Care, and the start of the Commonwealth Home Support Programme, aim to significantly improve access and choice for consumers. Such changes will help build a sustainable aged care system now and into the future.

Our performance

Programme 3.1:Access and Information

Objective: To provide equitable and timely access to aged care assessments and make it easier for older people to find aged care services and information.

Programme componentsMaking it easier to find services – My Aged Care

Provide equitable and timely access to aged care assessments

Access and informationThe aged care sector’s information gateway, My Aged Care, was introduced on 1 July 2013 and helps older people, their families and carers find information about aged care through the My Aged Care website and contact centre, go to the My Aged Care website.

My Aged Care has become a source of trusted information and independent assessment for aged care services. It can also provide general information to people who are not seeking aged care services, but may be planning for the future. This year, My Aged Care provided:

» consumer-focused information about aged care

» support for consumers to find Australian Government-funded aged care services in their local area

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http://www.myagedcare.gov.au/

» online service finders that provide information on aged care service providers and assessors

» online fee estimators for pricing on Home Care Packages and aged care homes.

My Aged Care was expanded on 1 July 2015 to include:

» a client record that clients and their representatives, contact centre staff, assessors and service providers can access

» the My Aged Care Regional Assessment Service, which will conduct face-to-face assessment for access to the Commonwealth Home Support Programme

» a standardised approach to screening and assessment of clients seeking access to aged care services

» electronic referrals for assessment and aged care services

» three web-based portals for clients, assessors and providers to access relevant client records and referrals

» information about non-Australian Government funded services in the service finders.

This year, around 203,535 aged care assessments were provided by Aged Care Assessment Teams (ACATs) to people who required aged care services under the Aged Care Act 1997.

Table 6.1 Access and Information — deliverablesResult

Development and trial of assessment frameworks and tools for the aged care sector.

Achieved

Aged Care Assessment Programme (ACAP) training resources reflect current programme operation and enable consistent decision making

Ongoing

Table 6.2 shows the number of calls and unique website visitors to My Aged care. Pre-July 2015, My Aged Care was primarily used as an information resource for the aged care sector. As a result, users may have been more inclined to utilise the My Aged Care website rather than the contact centre, as is indicated by a higher than anticipated volume of unique website visitors.

Table 6.2 Access and Information — quantitative deliverables targets

2012-13 2013-14 2014-15

Result Result Target Result

Number of calls made to My Aged Carea 223,502 146,439 220,000 161,448

Average number of unique visitors per month to the My Aged Care website

- 47,677 56,000 116,366

a Number of calls to the aged care information line in 2012-13 was before the commencement of My Aged Care.

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Table 6.3 Access and Information — key performance indicatorsResult

Aged Care Assessment Programme data is maintained to a high level of accuracy and is provided within the specified timeframe by the state and territory governments to the Australian Government

Ongoing

Table 6.4 Access and Information — quantitative key performance indicator targets

2012–13 2013–14 2014–15


Percentage of high priority assessments completed within 48 hours of referral

88% 89% 85% 94.8%a

Percentage of Aged Care Assessment Teams that meet National Minimum Training Standards and complete national training resources relevant to their roles and responsibilities

100% 100% 100% 100%

a The data for 2014-15 was extracted from the Ageing and Aged Care Data Warehouse in July 2015 from preliminary data. Future extracts of this data may change and thus alter final numbers.

Programme 3.2: Home Support

Objective: Provide basic maintenance, support and care services through the Commonwealth Home and Community Care (HACC) Programme and jointly funded

Commonwealth-State HACC Programme in Victoria and Western Australia to assist older people to remain at home and be more independent in the community.

Provide respite and facilitate access to information to carers through the National Respite for Carers Programme (NRCP).

Fund a range of allied health and therapy services, such as physiotherapy, podiatry and speech therapy to assist older people to regain or maintain physical and cognitive abilities

through the Day Therapy Centre (DTC) Programme.

Assist financially disadvantaged older people to identify services that can provide appropriate, sustainable and affordable housing and community care services through the

Assistance with Care and Housing for the Aged Programme.

Home support

a The data for 2014-15 was extracted from the Ageing and Aged Care Data Warehouse in July 2015 from preliminary data. Future extracts of this data may change and thus alter final numbers.

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This year we helped more than 812,000 older peoplea to continue to live in their own homes and be more independent in their local communities through the support and care offered to them by the Commonwealth Home and Community Care (HACC) Programme and the jointly funded Commonwealth–state HACC Programmes in Victoria and Western Australia.

Carers were provided respite services and information through the National Respite for Carers Programme. Health and therapy services were also provided by our Day Therapy Centre Programme, which assisted 46,573 clients.

We also helped 4,991 financially disadvantaged older people as well as 1,096 of their partners, or dependants who live with them, to remain in the community by accessing appropriate, sustainable and affordable housing and linking them where appropriate, to community care through the Assistance with Care and Housing for the Aged Programme.

From July 2015, the new Commonwealth Home Support Programme (CHSP) is streamlining entry-level support to benefit consumers and increasing the focus of services on wellness and re-ablement. Other than in Victoria and Western Australia, this programme is bringing together:

» the Commonwealth Home and Community Care Programme

» planned respite from the National Respite for Carers Programme

» the Day Therapy Centres Programme

» the Assistance with Care and Housing for the Aged Programme.

In Victoria and Western Australia, the home and community care programmes will continue to be administered by the state governments — funded jointly with the Australian Government. However, the National Respite for Carers Programme, the Day Therapy Centres Programme and the Assistance with Care and Housing for the Aged Programme services currently delivered in Victoria and Western Australia will form part of the new CHSP from 1 July 2015.

The CHSP will consolidate and coordinate entry-level home support for older people who need assistance with daily tasks in their own homes.

Carers of these older people will also benefit from services provided through the CHSP. It will build on the strengths of the pre-existing programmes and will continue to support about 550,000 older people and their carers every year.

Importantly, people receiving services under the existing programmes will continue to receive the same level of support when the CHSP begins.

Entry to its services will be simplified and streamlined for older people and carers through a single entry point, the My Aged Care gateway. There will also be a standardised national assessment process through My Aged Care Regional Assessment Services.

Table 6.5 Home Support — deliverables

ResultContinuity of services in programmes being incorporated into the Commonwealth Home Support Programme

Achieved

Regular stakeholder consultation on the development of the new Commonwealth Home Support Programme through formal and informal mechanisms

Ongoing

Funding agreements established with providers for the Achieved

a ‘Older people’ are people aged 65 years and over (and 50 years and over for Indigenous Australians).

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Resultdelivery of Commonwealth Home Support Programme services from 1 July 2015

Table 6.6 Home Support — quantitative deliverables targets

2012–13 2013–14 2014–15


Number of older people receiving a Commonwealth Home and Community Care service (HACC)

486,159 500,615 509,700 530,210

Table 6.7 Home Support — key performance indicators

Result

Commonwealth Home and Community Care (HACC) services delivered by contracted service providers to support frail older people and their carers to get the services they need to remain at home

Achieved

Table 6.8 Home Support — quantitative key performance indicator targets

2012–13 2013–14 2014–15


Number of HACC older clients receiving services as a percentage of the HACC target population

83% 86% >87% 88%a

Number of carers receiving counselling through the National Respite for Carers Programmeb

5,913 6,612 7,180 6,461

Number of carers receiving respite through the National Respite for Carers Programmeb

104,124 100,144 74,476 98,705

a The 2014-15 result is a preliminary figure based on available data at the end of August 2015 and may change if reproduced in the future.b The Commonwealth Home Support Programme begins on 1 July 2015, incorporating the Commonwealth HACC Programme, the planned respite component of the National Respite for Carers Programme, the day therapy centre programme and the Assistance with Care and Housing for the Aged Programme.

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Programme 3.3: Home Care

Objective: The Home Care Packages Programme provides coordinated packages of services tailored to meet an individual’s specific care needs to support older people to

remain living at home.

Home careThe Home Care Packages Programme helps older people to continue living at home by providing a coordinated package of service. These packages are tailored to meet individuals’ specific care needs — such as care services, support services and clinical services.

The Australian Government supported about 72,000 operational home care places this year — compared with 66,000 places in 2013–14, including 13,486 home care places operating on the new consumer directed care basis.

Table 6.9 Home Care — deliverables

ResultAll new Home Care Packages allocated through the 2014 Aged Care Approvals Round (ACAR) are delivered on a consumer directed care (CDC) basis

All home care packages in the 2014 ACAR were allocated on a CDC basis

Consumers and providers are supported to adopt CDC approaches

Throughout 2014–15 a broad range of support was provided to both consumers and providers to assist with the transition to CDC.

Table 6.10 Home Care — quantitative deliverables targets

2012–13 2013–14 2014–15Number of new Home Care Packages allocated 5,835 –a 6,653

Table 6.11 Home Care — key performance indicators

Result

Home care providers continue to deliver services

As of 30 June 2015, 504 home care package providers were delivering 72,802 operational home care packages

a The Aged Care Approvals Round, through which new home care packages are allocated, opened on 24 May 2014. As at 30 June 2014, 66149 home care packages were operational.

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Table 6.12 Home Care – quantitative key performance indicator targets

2012–13 2013–14 2014–15Number of operational Home Care Packages at end of financial year

60,308 66,149 72,802

Programme 3.4: Residential and Flexible Care

Objective: Residential aged care provides a range of care options and accommodation for older people who are unable to continue living independently in their own homes.

Flexible care caters to the needs of older people, in either a residential or home care setting, who may require a different approach than that provided through mainstream residential and

home care options.

Programme componentsResidential and Flexible Care

Accommodation Bond Guarantee Scheme

Residential and flexible careResidential aged care provides accommodation and other kinds of care for older people unable to continue living independently in their own homes. Residential care can be provided on a permanent or respite basis.

A total of 11,196 new residential aged care places were allocated across Australia through the Department’s 2014 Aged Care Approvals Round (ACAR).

As well, the Australian Government funded 4,000 flexible care places through its Transition Care Programme. Approximately 25,000 people received services under this programme, which assists older people to return home after a hospital stay, rather than enter residential aged care prematurely.

The National Aboriginal and Torres Strait Islander Flexible Aged Care Programme funds 28 organisations to provide 802 culturally appropriate aged care places to older Aboriginal and Torres Strait Islander people close to their homes and communities. This year 63 additional places were allocated to meet an increased need for aged care services in remote communities.

Factors influencing the financial performance of residential aged care providersIn May 2015, the Aged Care Financing Authority delivered its initial report to the Government on Factors that Influence the Financial Performance of Aged Care Providers. To see the report, go to www.dss.gov.au/acfa .

The Authority found higher financial performance was likely among providers with certain characteristics relating to their operating location (generally city providers outperformed regional), their ownership structure (for-profit providers generally outperformed not-for-

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profits), and their facility size (larger-scale facilities tended to outperform smaller-scale facilities).

However, providers with a variety of characteristics were found in the better performing groups; for example, the top-performing group did include regional, not-for-profit and smaller facilities.

This indicated that most providers who adopt appropriate management and business strategies should be able to achieve sound or better financial performance in most circumstances.

The Authority noted a number of actions providers could consider to improve financial performance, including:

» stronger governance

» improved financial management

» stronger asset management

» administration efficiencies.

Table 6.13 Residential and Flexible Care — deliverables

Result

Competitive Aged Care Approvals Round Achieved

Expansion of the National Aboriginal and Torres Strait Islander Flexible Aged Care Programme

Allocated 63 new places in 2014-15

Table 6.14 Residential and Flexible Care — quantitative deliverables targets

2012–13 2013–14 2014–15

Result Result Target ResultNumber of flexible places available for Aboriginal and Torres Strait Islander peoples through the National Aboriginal and Torres Strait Islander Flexible Aged Care Programme

679 739 780 802

Number of operational transition care placesa 4,000 4,000 4,000 4,000

Table 6.15 Residential and Flexible Care — key performance indicatorsResult

All new residential Aged Care Places allocated

11,196 new residential aged care places were allocated on 4 December 2014 through the 2014 ACAR

All new flexible places for the National Aboriginal and Torres Strait Islander Flexible Aged Care Programme allocated

Ongoing

A total of 155 new places have been allocated since 2013

a This is the number of operational transition care places as at 30 June.

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Table 6.16 Residential and Flexible Care — quantitative key performance indicator targets

2012–13 2013–14 2014–15Number of operational Residential Aged Care places at end of financial yeara

186,278 189,283 195,953

Programme 3.5: Workforce and Quality

Objective: To ensure the availability of a skilled workforce, empower consumers and ensure high quality of care to recipients of aged care services.

Programme componentsImproving Workforce Sustainability

Empowering ConsumersPromoting Quality

Workforce and qualityThe Australian Government wants Australia’s aged care system to be based on a strong quality framework, with an appropriately skilled and qualified workforce, and empowered consumers.

This year we funded vocational education and training across many aged care related disciplines and service models to help improve aged care workers’ skills and professional partnerships.

Australian Government-funded training ranged from short courses that improved skills and addressed skills gaps, to accredited certificates and a diploma for aspiring enrolled nurses.

The Government also undertook a stocktake and analysis of Australian Government-funded aged care workforce activities this year that will help inform future funding priorities for the Government’s Aged Care Workforce Development Fund.

a Includes flexible residential places.

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Table 6.17 Workforce and Quality — deliverablesResult

Continuing uptake of new models of Community Visitors Scheme

The Community Visitors Scheme was expanded in 2013–14, from one-on-one visits in residential care to include visits to people receiving home care packages and to provide group visits (two or more residents) in residential aged care

In 2014–15, the uptake of group visits was in line with expansion but has been slower than expected for home care packages. The Department is addressing this, with the expectation that uptake will increase in the next financial year

Timely and effective resolution of complaints through the Aged Care Complaints Scheme

The majority of complaints were resolved within 90 days, the average being 37 days. Over 80 per cent of complaints were finalised at the early resolution stage

Table 6.18 Workforce and Quality — quantitative deliverables targets

2012–13 2013–14 2014–15


Number of annual reviews of Aged Care Funding Instrument funding claims to ensure residents are correctly funded

21,426 20,349 20,000 20,587

Percentage of complaints finalised by the Aged Care Complaints Scheme within 90 days

85% 84% 79% 87%

Percentage of complaints resolved by the Aged Care Complaints Scheme at early resolution

72% 78% 64% 81%

Percentage of General Purpose Financial Reports submitted by approved providers reviewed to assess financial risk

100% 100% 100% 100%

Percentage of approved providers assessed as having a financial risk at the highest level undergoing a detailed risk assessment

100% 100% 100% 100%

Table 6.19 Workforce and Quality — key performance indicators

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Result

Satisfaction with the operation of the Aged Care Complaints Scheme

82.5%

Table 6.20 Workforce and Quality — quantitative key performance indicator targets

2012–13 2013–14 2014–15

Result Result Target ResultPercentage of occasions where the Department has taken appropriate action against approved providers to address serious non-compliance that threatens the health, welfare or interests of care recipients

100% 100% 100% 100%

Programme 3.6: Ageing and Service Improvement

Objective: To enable the Australian Government to better support activities that promote healthy and active ageing, to better respond to existing and emerging challenges including dementia care and to better support services targeting Aboriginal and Torres Strait Islander

peoples and people from diverse backgrounds.

Programme componentsAgeing and Service Improvement

Continence Aids Payment Scheme

Ageing and service improvementOur Department continued to fund projects under the Aged Care Service Improvement and Healthy Ageing Grants fund.

The projects support activities of benefit to the care and services of older Aboriginal and Torres Strait Islander people and people from diverse backgrounds including CALD and lesbian, gay, bisexual, transgender and intersex people (LGBTI).

In addition, the funding also addresses issues related to dementia.

The 2014–15 open funding round saw 54 organisations funded to 30 June 2017 to deliver 64 innovative, time-limited projects for a range of local, state-focused, and national projects.

In September 2014, the Australian Government hosted a dementia forum attended by more than 60 consumers, health professionals, aged care providers and stakeholder organisations. The forum sought feedback on how to make dementia care core business within the aged care sector.

A major initiative from this forum was a decision to establish Severe Behaviour Response Teams to provide specialist dementia advice and assistance for aged care providers next year.

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The new, specialised teams of healthcare professionals will help the providers manage people with very severe and extreme behavioural and psychological symptoms of dementia.

The new teams are due to begin in September 2015. The Australian Government committed $54.5 million over four years to establish the teams.

In addition, our Department is analysing dementia programmes to ensure their coordination, integration and effectiveness.

From July 2015, the Aged Care Service Improvement and Healthy Ageing Grants fund will be renamed the Dementia and Aged Care Services (DACS) Fund. Over the next four years the Australian Government will redirect more than $365 million to the new Fund. The Fund will continue to provide programmes that promote high quality and more appropriate care to older people with dementia, with funding also to be provided to support specific measures for Indigenous Australians and to ensure people from diverse backgrounds receive the same quality of care as other older Australians.

Table 6.21 Ageing and Service Improvement — deliverables

Result

Programmes that improve the lives of people with dementia are delivered

Ongoing

Funded activities include the Dementia Behaviour Management Advisory Services; Dementia Training Study Centres; the National Dementia Support Programme; and smaller one-off grants

Continue to strengthen the capacity of the health and aged care sectors to deliver high quality aged care, and to promote healthy ageing through the Aged Care Service Improvement and Healthy Ageing Grants fund

Funded activities include but are not limited to projects that successfully implement consumer directed care, projects that offer innovative re-ablement models, and projects to help build the capacity of rural and remote aged care providers to deliver high quality care

Table 6.22 Ageing and Service Improvement — key performance indicators

Result

Activities undertaken to better support people with dementia in the health and aged care systems

Ongoing

Activities include the announcement of Severe Behaviour Response Teams; Analysis of Existing Dementia Programmes; the Ministerial Dementia Forum; Dementia Behaviour Management Advisory Services; Dementia Training Study Centres; Dementia Care Essentials; the National Dementia Support Programme; and smaller one-off grants.

Activities undertaken to better support older people from

Ongoing

Funded activities include the Partners in Culturally Appropriate Care Programme.

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Result

diverse backgrounds The Partners in Culturally Appropriate Care Programme has been extended until 30 June 2017.

An additional $100,000 will also be made available over the next two years, for a project to identify and assist in ameliorating barriers to people’s access to information and services through My Aged Care because of their cultural diversity.

Regular progress reports on key milestones from contractual organisations indicate that activities are being implemented in accordance with contractual arrangements.

During 2014–15, the Department set up two stakeholder working groups, a CALD working group and a lesbian, gay, bi-sexual, transsexual and intersex (LGBTI) working group, to support the implementation of the Aged Care CALD and LGBTI strategies.

Table 6.23 Ageing and Service Improvement — quantitative key performance indicator targets

2012–13 2013–14 2014–15


Number of service episodes delivered by Dementia Behaviour Management Advisory Services clinicians that support aged care staff, healthcare professionals and family carers to improve their care of people with behavioural and psychological symptoms of dementia

naa naa 6,500 7,323

a As this is a new key performance indicator in the 2014-15 PBS, data for earlier years is not available.

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Result




Result


Looking forwardThe coming year will bring further changes towards a more consumer-driven, market-based aged care system with more streamlined regulation.

My Aged Care is being significantly enhanced from July 2015 to become the national gateway for aged care information and services, go to the My Aged Care website.

My Aged Care improves consumer choice by creating a central information source for older people, their families and carers. It also is the platform for people to be assessed consistently and fairly for the services that will meet their needs.

My Aged Care will continue its development into a rich, unprecedented source of information and planning tools to help Australians prepare for their aged care.

From July 2015, all Home Care Packages are being delivered on a consumer directed care basis — delivering on an Australian Government policy to give people greater choice and flexibility and enable support options beyond those traditionally funded in the sector.

The new Commonwealth Home Support Programme, will help hundreds of thousands of frail and older people stay independent and in their homes and communities for longer.

We will make further changes in line with the 2015–16 Budget to:

» significantly change the way home care services are delivered, with benefits to both consumers and aged care providers; from February 2017, funding will follow the consumer, rather than be allocated to individual providers; this will help boost genuine choice for consumers in deciding who provides their care and give them new flexibility if they wish to change their provider; the changes will also reduce the administrative burden on providers

» work with the aged care sector to create from 2018 a single, integrated care-at-home programme that combines the new Commonwealth Home Support

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Programme and the Home Care Packages Programme; this will make the aged care system easier for consumers to understand and further reduce red tape for providers

» bring in a new form of short-term restorative care to help older people live longer in their own homes; this will build on the success of the current Transition Care Programme. However, unlike transition care, this new programme will be available to people without requiring a hospital stay

» increase the independence of the Aged Care Complaints Scheme by transferring the complaints powers of our Secretary to the existing Aged Care Commissioner from 1 January 2016; this will ensure a robust and independent safety net to resolve concerns about the quality of care and services

» establish, in consultation with the aged care sector, a single quality framework for all aged care services, and develop options for private market provision of accreditation services.

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Chapter 7Outcome 4 — HousingProgramme 4.1 Housing and HomelessnessProgramme 4.2 Affordable HousingProgramme 4.3 Programme Support for Outcome 4

Increase housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Everyone needs a safe, secure and affordable home; it is a fundamental pillar of an inclusive and productive society. This year we continued to contribute to the lifetime wellbeing of vulnerable Australians by helping them through housing assistance and homelessness services.

We work closely with states and territories to increase social and affordable housing and reduce homelessness however, state and territory governments have primary responsibility for managing social housing and delivering housing assistance and homelessness services.

Our achievements» supported more than 300 initiatives to help people who were homeless or at risk of

homelessness, through the 2014–15 National Partnership Agreement on Homelessness

» delivered 5,383 additional dwellings built under the National Rental Affordability Scheme (NRAS), to assist individuals and families over the life of the scheme by providing affordable rents at least 20 per cent below market value

» helped 1,343,431 individuals and families to meet private market and community housing rental costs through Commonwealth Rent Assistance at a cost of about $4.2 billion (see Outcome 1 for further information)

Our performance

Programme 4.1: Housing and Homelessness

Objective: To provide support for housing and homelessness:

» research

» peak bodies

» innovative projects

» emerging Australian Government priorities.

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Programme component:Housing and Homelessness Service Improvement and Sector Support

We boosted social housing and services for homelessness this year with $1.3 billion in Australian Government funding to state and territory governments through the National Affordable Housing Specific Purpose Payment, which is associated with the National Affordable Housing Agreement.

We helped people who were homeless or at risk of homelessness through more than 300 initiatives this year under the National Partnership Agreement on Homelessness, which provided Australian Government funding of $115 million for frontline service delivery.

The funding was provided to, and matched by, state and territory governments so they could continue to deliver specialist homelessness services — as they are responsible for managing these services, their location and the mix of services funded.

Table 7.1 Housing and Homelessness — deliverablesResult

Housing and homelessness sector development

Achieved

Research and evidence-based policy advice to the Government on housing and homelessness issues

Achieved

Support for innovative service responses to homelessness

Achieved

Table 7.2 Housing and Homelessness — key performance indicatorsResult

Development of an evidence base on housing and homelessness, including innovative responses and models of practice

Achieved

Programme 4.2: Affordable Housing

Objective: To improve the supply of affordable rental housing to low and moderate income households.

Programme component objectivesNational Rental Affordability Scheme

This year we worked to keep private market housing in Australia affordable and available for low- and moderate-income households.

We offered financial incentives under the National Rental Affordability Scheme (NRAS) to provide new dwellings for rent at rates at least 20 per cent below market rates.

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As a result, the scheme increased the supply of affordable housing for low- and moderate-income households, reducing their rental costs.

The scheme also encouraged large-scale investment and innovative, affordable housing.

Table 7.3 Affordable Housing — deliverablesResult

Provide NRAS incentives in accordance with statutory criteria so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

28,817 NRAS dwellings delivereda

Table 7.4 Affordable Housing — key performance indicatorsResult

Timely provision of incentives for eligible NRAS dwellings

20,164 NRAS incentives issued in the 2014-15 financial year








Looking forwardIn 2015–16 we will continue to provide policy advice on national housing and homelessness issues to inform government responses to current and future challenges, including how to improve housing affordability for all Australians — including renters, home buyers and home owners.

We are negotiating the 2015–2017 National Partnership Agreement on Homelessness with state and territory governments. The Australian Government has committed $230 million to a The Government announced in the 2014–15 Budget that it would not proceed with Round 5 of the National Rental Affordability Scheme, capping the Scheme to 38,000 incentives.

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the new, two-year national partnership and the funding will be matched by states and territories. The new national partnership recognises that domestic violence is a leading cause of homelessness, and that women and children are particularly vulnerable. Funding priority will be given to homelessness service providers that work with women and children in these situations, and to homeless youth.

Our policy development will be supported by research activities through the Australian Housing and Urban Research Institute — a comprehensive annual programme of timely, policy-relevant research on housing, homelessness and urban issues.

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Chapter 8Outcome 5 – Disability and CarersProgramme 5.1 Disability Mental Health and CarersProgramme 5.2 National Disability Insurance SchemeProgramme 5.3 Programme Support for Outcome 5

Improve independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Our Department funded and provided support in the community for people with disability and mental illness, as well as for their carers. This helped and encouraged them to develop their capabilities and participate in community life and the Australian economy.

Our achievements» provided 300 bursaries to assist young carers to continue to study and relieve the

financial pressures on them to work part time in addition to their educational and caring responsibilities

» assisted 235,349 people with disability to improve their capacity to work through Disability Employment Services (DES) — an increase of 4.7 per cent in the year; a total of 30,938 people with disability in these services achieved a 26-week work outcome

» helped more than 52,000 children access early intervention services through the Helping Children with Autism and Better Start for Children with Disability programmes

» supported 143,052 people in drought-affected areas of New South Wales and Queensland by funding community mental health services to assist farmers, farm families and rural communities under the Government’s Social and Community Support Measure for farming families and communities

Our performance

Programme 5.1: Disability Mental Health and Carers

Objective: To provide support and community-based initiatives for people with disability, mental illness and carers, so they can develop their capabilities and actively participate in

community and economic life.

Programme components:

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Disability EmploymentEmployment Assistance and Other Services

Disability and Carer SupportDisability and Carer Service Improvement and Sector Support

Community Mental Health

We continued working with state and territory governments this year to implement the National Disability Strategy 2010–2020. The strategy is bringing a more inclusive approach to the design of policies, programmes and infrastructure so that people with disability can participate in all areas of Australian life.

Our Department set policy for the National Disability Insurance Agency (NDIA) to roll out the National Disability Insurance Scheme (NDIS) in three new trial sites during the year.

We worked closely with state and territory governments and the NDIA to deliver the full national roll out of the NDIS. The NDIS is already making a difference in the lives of more than 17,300 Australians with disability and their families across seven trial sites.

Our Department is currently finalising arrangements for transition with participating state and territory governments for the commencement of the transition to full scheme from July 2016.

An early transition of the NDIS was announced for the Nepean Blue Mountains region of New South Wales to commence in July 2015 and, with a whole-of-population trial, the transition to full scheme is underway in the Australian Capital Territory, with all eligible participants expected to enter the scheme by October 2016.

In Western Australia, a comparative trial of the NDIA and My Way models is being undertaken to inform future decisions about the roll out of the NDIS. At full scheme more than 460,000 people will benefit from the NDIS.

Through 38 public forums, conducted throughout Australia, we engaged with 742 people to canvass their views and find creative solutions for future policies to contribute to the work of the Disability Employment Taskforce.

Following the closure of the Commonwealth Rehabilitation Service (CRS Australia) in February, almost 21,000 Disability Employment Service (DES) Disability Management Service (DES—DMS) participants moved to new approved providers.

We also conducted the first business reallocation of the DES Employment Support Service (DES-ESS), which resulted in 29 high-performing service providers gaining additional business and about 7,200 participants moving to higher-performing providers in their local areas.

A total of 150 young carers received the first Young Carer Bursary payments in February 2015, in time for the 2015 academic year. Young carers then received an additional 150 bursaries worth $3,000 in June 2015.

This year our Department’s community-based mental health services provided support for 284,464 people with mental illness, their families and carers. Our services helped them to develop their capabilities, increase their wellbeing and actively participate in community and economic life.

DES providers gained more flexibility, time and resources to help people with disability into work this year when the Department reduced $4.9 million worth of administrative burden previously placed upon DES providers, employers and DES.

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Table 8.1 Disability Mental Health and Carers — deliverables

2012–13 2013–14 2014–15Disability Employment

Number of commencements 95,799 93,395 96,918

Total job placements achieved 48,221 46,574 48,048

Employment assistance and other services 19,036 19,119 22,131

National Disability Recruitment Coordinator – Number of job vacancies generated

583 300 304

Disability and Carer Support

Number of people with disability provided with direct advocacy support

10,721 11,700 11,252


Number of people whose lives are affected by mental illness accessing support servicesa

117,793 166,457 284,464

Table 8.2 Disability Mental Health and Carers - deliverables targets

2012–13 2013–14 2014–15


Disability Employment

Number of commencements:

Disability Management Service 50,000 51,498 50,000 47,088 50,000 46,967

Employment Support Service 45,000 44,301 45,000 46,307 45,000 49,951

Total job placements achieved:

Disability Management Service 31,000 26,305 31,000 22,197 31,000 20,428

Employment Support Service 28,000 21,916 34,000 24,377 34,000 27,620

Employment Assistance and Other Services

Other Disability Employment including assistance and services incorporating Wage Subsidy Scheme, Supported Wage System and Employment Assistance Fund

16,500 19,036 16,500 19,119 16,500 22,131

National Disability Recruitment Coordinator

650 583 300 300 300 304


Number of people with disability 10,800 10,721 10,800 11,700 10,800 11,252

a Figure for 2014-15 includes attendances at the Social and Community support component of the Prime Minister’s Drought Package community events (113,788 participants).

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2012–13 2013–14 2014–15


provided with direct advocacy support


Number of people whose lives are affected by mental illness accessing support servicesa

63,000 117,793 77,000 166,457 80,000 284,464

Table 8.3 Disability Mental Health and Carers — key performance indicators

2012–13 2013–14 2014–15

Disability Employment

Proportion of job seekers in employment three months following participation in Employment Services - Disability Management Service

39.2% 34.9% 31.1%

Proportion of job seekers in employment three months following participation in Employment Services – Employment Support Services

32.3% 31.8% 31.1%


Number of people with disability provided with direct advocacy support

• Target 10,800 10,800 11,000

• Actual 10,721 11,700 11,252


Percentage of participants maintaining progress against relevant goalsb

97% 97% 95%

Percentage of participants who report that they are satisfied that the service they received was appropriate to their needsb

99% 99% 98%

Percentage of participants from Indigenous backgroundsc

10% 12% 11%

Percentage of participants from CALD backgroundsc

13% 14% 14%

Table 8.4 Disability Mental Health and Carers — key performance indicator targets

a Figure for 2014-15 includes attendances at the Social and Community support component of the Prime Minister’s Drought Package community events (113,788 participants).b As a percentage of survey respondents.c Indigenous and CALD information is not collected for participants supported through all community activities (172,928 participants).

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2012–13 2013–14 2014–15


Proportion of job seekers in employment three months following participation in Employment Services:

• Disability Management Service 45% 39.2% 45% 34.9% 45% 31.1%

• Employment Support Service 40% 32.3% 40% 31.8% 40% 31.1%


Percentage of participants maintaining progress against relevant goalsd

60% 97% 80% 97% 80% 95%

Percentage of participants who report that they are satisfied that the service they received was appropriate to their needsa

80% 99% 80% 99% 80% 98%

Percentage of participants from Indigenous backgroundse

7% 10% 7% 12% 7% 11%

Percentage of participants from CALD backgroundsb

16% 13% 16% 14% 16% 14%

Programme 5.2: National Disability Insurance Scheme

Objective: To improve the wellbeing and social and economic participation of people with disability, and their families and carers, by building a National Disability Insurance Scheme that delivers individualised support through an insurance approach. This programme also

includes existing supports that are transitioning in to the Scheme in a phased approach and the Sector Development Fund.

On 1 July 2014, the NDIS began in the Australian Capital Territory, the Perth Hills area of Western Australia, and the Barkley Region of the Northern Territory.

These were in addition to the Hunter local government area of New South Wales, the Barwon area of Victoria, South Australia and Tasmania — regions where the scheme had previously been trialled.

The scheme was implemented by the NDIA, which also provides information and links to existing mainstream and community services.

More than 50,000 children registered this year for access to early intervention services under the NDIS.

Australian Disability Enterprises provided employment support to 20,912 people with disability, helping them to participate more socially and economically.

d As a percentage of survey respondents.e Indigenous and CALD information is not collected for participants supported through all community activities (172,928 participants).

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Table 8.5 National Disability Insurance Scheme — deliverables

Result

National Disability Insurance Scheme

Agreements with States and Territories for National Disability Insurance Scheme trials, and for transition to full scheme with all States and Territories

Broad-ranging policy work has been undertaken to support development of agreements with states and territories.

Negotiations on bilateral agreements for transition between the Commonwealth and jurisdictions were undertaken.

Policy developed to respond to evaluation results from the trials sites and for full-scheme roll-out of the National Disability Insurance Scheme

The evaluation of trial will be completed in 2016.

National Disability Insurance Scheme Transition 2012–13 2013–14 2014–15

Eligible children with disability have access to early intervention services

27,273 30,107 30,369

Parents, carers and families of eligible children have access to information and support

4,047 4,729 4,229

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

5,347

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

1,864

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

4,633

Number of supported employees assisted by Australian Disability Enterprises

20,912

Number of people whose lives are affected by mental illness accessing support services

Result included in Table 8.1

Sector Development Fund

People with disability, the disability services sector and its workforce are assisted with the transition to the NDIS, including through:

• building community capacity and engagement Twelve (12) projects were funded that increased community capacity, awareness and support in the transition to full scheme.

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Result

• increasing individual support capacity and development of new forms of support to meet the needs of people with disability

Five (5) projects assist the capacity building of people with disability to be well informed, resourced and equipped to engage with the NDIS and the open market.

• building disability sector capacity and service provider readiness to manage the transition

Fourteen projects (14), ten of which are completed, that develop provider readiness which support the development of a robust and dynamic market.

• assistance with the required expansion and diversification of the workforce

Four (4) projects raised awareness of the disability sector as a career path. These projects also promote the supply of appropriately skilled and trained workers within the disability sector.

• building the evidence base Five (5) projects are providing an evidence base and insights into the outcomes for people with disability and their carers through surveys, co-design and evaluation processes.

Table 8.6 National Disability Insurance Scheme — qualitative deliverablesResult

Support for the Disability Reform Council and related Commonwealth-State forums

Support provided for four ministerial council meetings, 26 multilateral meetings and 73 bilateral meetings

Monitoring and refinements to the National Disability Insurance Scheme design during trial

Ongoing

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Table 8.7 National Disability Insurance Scheme — deliverables targets

2012–13 2013–14 2014–15

Estimate Actual Estimate ActualEstimat

e Actual


Number of people provided with support

- - 9,500 7,316a 19,800 17,303

National Disability Insurance Scheme Transitionb

Eligible children registered to access early intervention services

25,000 27,273 25,970 30,107 26,560 30,369

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

5,500 6,237 5,500 5,494 5,500 5,347

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

1,800 2,054 1,800 2,010 1,800 1,864

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

3,500 4,388 3,500 4,520 3,500 4,633

Number of supported employees assisted by Australian Disability Enterprises

22,500 21,649 21,000 21,262 21,000 20,912

Table 8.8 National Disability Insurance Scheme — key performance indicators

Result


Timely and effective policy advice is provided on full-scheme roll-out of the National Disability Insurance Scheme, including on the implications for the workforce

The Integrated Market, Sector and Workforce Strategy includes areas of focus that relate to the growing workforce and ensuring that sufficient workers with the required skills are available to meet the needs of NDIS

a Correction: In the DSS 2013-14 Annual Report, for Programme 5.6 National Disability Insurance Scheme, the results for deliverables provided at Table 8.11 included that 9,500 people were provided with support. The correct result was 7,316.b Targets will be adjusted in line with participant uptake for the NDIS.

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Result

participants.

Agreements with states and territories for full-scheme roll-out are in place

Negotiations on bilateral agreements for transition between the Australian Government and jurisdictions were undertaken.

National Disability Insurance Scheme Transition

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

80% or 24,295

Number of eligible children with disability from Indigenous and CALD backgrounds receiving early intervention services

Indigenous CALD Total

1,467 3,760 5,227

Number of children with disability receiving early intervention services

30,369

Number of parents/carers who access information and support services

4,229

Percentage and number of clients from Indigenous and CALD backgrounds:

Indigenous CALD

Australian Disability Enterprises 2.4% / 500 7.9% / 1,659

Respite Support for Carers of Young People with Severe or Profound Disability

6.2% / 331 16.7% / 893

Outside School Hours Care for Teenagers with Disability

7.7% / 144 15.8% / 295

Young Carers Respite and Information Services – respite services

10.7% / 498 9.8% / 452

Percentage and number of clients reporting that the services received were appropriate to their needs as parents/carers

Respite Support for Carers of Young People with Severe or Profound Disability

92% / 1,324

Outside School Hours Care for Teenagers with Disability

94% / 1,392

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Result

Percentage of clients satisfied that the services they received were appropriate to their needs as carers

Young Carers Respite and Information Services – respite services

96% / 1,105

Percentage and number of supported employees/clients likely to have reduced reliance on income support payments (sufficient income to affect the Disability Support Pension)

50.6% / 10,442

Sector Development Fund

Increase the capacity of people with disability and their families to exercise choice and control, both in engaging with the NDIS, and in purchasing supports in an open market in order to realise their aspirations.

These KPIs will be reported in the National Disability Insurance Agency’s Annual Report.

Develop a market capable of providing the necessary supports required for full scheme.

Increased mix of support options and innovative approaches to provision of support.

Increase the disability services workforce, making it more diverse and better equipped to meet the needs to people with disability.

Develop an evidence base to inform an insurance approach to disability support.

Table 8.9 National Disability Insurance Scheme — qualitative key performance indicatorsNational Disability Insurance Scheme Result

Amendments to design are made as necessary during the National Disability Insurance Scheme trials

No amendments to NDIS scheme design have been made to date.

Evaluation of the National Disability Insurance Scheme trials has commenced to inform full-scheme roll-out

The evaluation commenced and is due to be completed in 2016.

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Looking forwardThe National Disability Insurance Scheme will progressively roll out across states and territories, except Western Australia, from July 2016.

From December 2015, a National Carer Gateway will provide a nationally identifiable place for all carers to go for information, support and referral to services.

Our Department will also establish the Business Services Wage Assessment Tool (BSWAT) Payment Scheme for employees of Australian Disability Enterprises — who will have their wages assessed using the BSWAT.

The Australian Government will work with six funded disability peak bodies to deliver its commitment to represent all people with disability and disability service providers in an effective, coordinated and collaborative way. The new model represents all people with disability within the one framework that recognises that disability is more a reflection of social barriers and discrimination, rather than a person’s medical condition or impairment.We will continue to work with states and territories to implement the broader National Disability Strategy 2010–2020, which provides a 10-year national policy framework for all levels of government to improve the lives of people with disability.

We are working across agencies to develop an Australian Government plan, with a specific focus on disability employment, to improve outcomes for Indigenous people with disability. This plan will work in tandem with the second implementation plan of the National Disability Strategy, due in 2015.

We will improve employment support for young people with mental illness, through a trial of the Individual Placement and Support model, boosting employment prospects for under-25-year-olds with mental illness at risk of dropping out of education and long-term welfare dependency.

More employment opportunities will flow to people with disability from the new Job Access Gateway, an online information and telephone service to improve access to information about government employment programme.

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Case Study Bursary big boost to The 85% Boy

Fifteen year old ‘Simon’ had to work night shifts in a factory after school to earn a wage for his mother’s one parent family of three.

Exhausted, he began falling asleep in class and was failing to hand in assignments — earning him the nickname ‘The 20% Boy’ as he started averaging D minus grades.

His confidence and attitude crashed. He argued constantly with his brother. He also gave up football — being unable to train or play in matches.

This year brought great and rapid change to Simon’s life as one of the nation’s estimated 305,000 carers aged under 25 when he was awarded a $6,000 bursary under the Australian Government’s Young Carer Bursary Programme.

It meant he could trade in factory night shifts for school activities. Joy, his mother, said he grew physically healthier and happier. Simon told Joy he feels like he’s a ‘better, bigger brother now’.

The bursary meant a return to football and, before long, he represented his school for the first time.

Simon’s grades and responsibility soared and he began scoring over 85 per cent in school assessments.

Now Simon is looking to the future and to doing some workplace training. He is getting great reviews and is thinking about a career in the Army.

He was among the first to receive one of 300 new bursary payments awarded this year. Through this departmental programme, the Government committed $3 million over three years in bursaries to help young carers continue their education.

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Part 3 Management and AccountabilityChapter 9 — Our governance structureOur governance structure is designed to ensure accountability, transparency and fairness. It includes internal boards and committees, business planning and risk management, operations, quality assurance, fraud control and compliance activities.

Internal committees supporting our businessCommittees reporting to the SecretarySeveral committees provide advice and support to the Secretary on the administration and overall operation of our Department. Internal committees generally comprise departmental employees; some have external members.

Executive Management GroupChair: Finn Pratt, Secretary

Membership: deputy secretaries

The Executive Management Group is our most senior committee. It advises the Secretary on overall strategic direction, priorities and performance and oversees the Department's financial wellbeing by allocating resources, monitoring performance and risk, and ensuring we can meet our regulatory requirements.

Senior Management GroupChair: Finn Pratt, Secretary

Membership: deputy secretaries, group managers, state and territory managers

The Senior Management Group is the primary forum for senior executive consultation with our Department’s group and state managers.

It undertakes strategic discussions on policy themes and policy issues, and other high-level matters. It is also a forum to manage cross-group issues and it guides, coordinates and champions key organisational reform.

Audit and Assurance CommitteeChair: Felicity Hand, Deputy Secretary

Deputy Chair: Donna Moody, Group Manager, Ageing and Aged Care Services

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Membership: two senior DSS executives and three external independent members

The external members are highly qualified experts in their respective fields. In

2014–15, the three external members were: Ms Jenny Morison, a leading consultant in public sector financial management reform; Mr Andrew Cox, a corporate governance professional with extensive experience in governance, audit and risk management; and Mr Ian Carnell, a former public servant with extensive experience in senior executive positions in several Commonwealth agencies.

The Secretary established the Audit and Assurance Committee under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). It provides independent assurance and advice to him and the Executive Management Group on the design, operation and performance of our internal governance and risk and control framework. The committee also assesses our compliance with internal and external accountabilities and responsibilities.

The committee meets five times each calendar year, with a sixth meeting held to review our annual financial statements process.

The Chief Internal Auditor reports to the committee’s chair and the Secretary, as required.

Indigenous Reform CommitteeChair: Finn Pratt, Secretary

Membership: deputy secretaries; the Group Manager, Policy Office; and relevant group managers when agenda items fall within their area of responsibility, by invitation of the Secretary or deputy secretaries.

The Indigenous Reform Committee works to improve Indigenous access to, and outcomes from, our programmes.

Through the committee, the Department reviews all policy and programme areas to ensure that Indigenous issues are considered and understood. The Committee is committed to driving change and measuring the impact of Indigenous participation on lifetime wellbeing.

Committees reporting to the Executive Management Group

Policy and Deregulation CommitteeChair: Serena Wilson, Deputy Secretary

Deputy Chair: Barbara Bennett, Deputy Secretary

Membership: 11 other members, appointed by the Chair for their policy experience and expertise.

The Policy and Deregulation Committee has overarching responsibility for the quality and performance of the Department’s policy and deregulation activities. It is responsible for the development, implementation and on-going effectiveness of our Department’s:

» policy framework and cross-cutting policy positions

» policy planning, priority setting and performance systems

» evidence (data, research and evaluation) systems

» policy engagement strategy

» policy capability strategy

» deregulation strategy and priorities.

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People and Communications CommitteeChair: Michael Lye, Acting Deputy Secretary

Deputy Chair: Margaret McKinnon, Group Manager, Corporate Support

Membership: 10 members, including the Chair and Deputy Chair. Members, other than the Chair and Deputy Chair, are appointed by the Chair on a rotating basis, usually for one year.

The committee guides, endorses and makes decisions on policies and strategies regarding:

» development, management, evaluation and provision of strategic advice on internal and external communications

» promotion of best practice stakeholder engagement in the Department

» establishment of workforce processes and tools to improve our workforce capability

» development and motivation of employees, including retention, learning and development, and the performance framework

» attraction and recruitment of a high quality workforce, including diversity and inclusion, redeployment, and job evaluation.

Budget Committee Chair: Michael Lye, Acting Deputy Secretary

Membership: Secretary, deputy secretaries, Chief Finance Officer

The Budget Committee has oversight of our external and internal budget strategies, budget communications, budget security and budget advice to ministers.

The Budget Committee works to ensure that the Department:

» supports ministers and government throughout the budget cycle

» secures and monitors funding of support systems that underpin the lifetime wellbeing, independence and participation of people and families and also funding of partner organisations that provide local services

» has in place —

H̶ strong financial and resource management strategies

H̶ effective budget communication strategies

H̶ sound budget security controls.

Programme and Delivery BoardChair: Barbara Bennett, Deputy Secretary

Deputy Chair: Carolyn Smith, Acting Deputy Secretary

Membership: Seven group managers from across the Department, a general manager and a state or territory manager.

The Programme and Delivery Board makes decisions and provides advice to programme owners and the Executive on the strategic direction and implementation of our programmes, as defined in the Portfolio Budget Statement.

The board maximises the contribution our programme activities have on our mission of improving the lifetime wellbeing of people and families in Australia. It provides guidance to ensure we have a productive, professional working and strategic relationship with current and potential service providers.

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Information Communication and Technology CommitteeChair: Carolyn Smith, Acting Deputy Secretary

Deputy Chair: Peter Qui, Group Manager, Information Management and Technology

Membership: five group managers and a state or territory manager

The Information, Communications and Technology Committee is responsible for information communication and technology (ICT) strategic planning and investment for related projects. It provides advice and recommendations to the Executive Management Group to ensure ICT strategy and operations align with departmental priorities and our strategic framework.

Multicultural Access and Equity CommitteeChair: Barbara Bennett, Deputy Secretary

Membership: five group managers and three branch managers

The Multicultural Access and Equity Committee is responsible for lifting whole-of-department multicultural access and equity performance. The committee works to implement projects and lift performance across five priority areas that include:

» data and research

» engagement

» accessibility

» policy and programme design

» staffing profile and cultural competency.

The committee also monitors implementation of our Agency Multicultural Plan and may help coordinate departmental contributions to cross-agency initiatives as part of the Government’s revised implementation model for multicultural access and equity policy.

Figure 9.1 – Our governance structureReporting to the Secretary are:

» Audit and Assurance [Committee]

» Indigenous Reform [Committee]

» Executive Management Group [supported by] Senior Management Group

Reporting to the Executive Management Group are:

» Policy and Deregulation [Committee]

» People and Communications [Committee]

» Budget [Committee]

» Programme and Delivery [Board]

» Information Communication and Technology [Committee]

» Multicultural Access and Equity [Committee]

Business planning and risk managementStrategic and business planning

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Our planning process cascades from the DSS vision statement to progressively build clarity to the most critical work and delivery expectations for each business area, team and individual.

Our vision statement is our highest level plan, while our 2014–15 Priorities Plan articulated our most critical policy, programme and corporate objectives and set the scene for planning how to achieve these.

Our planning arrangements also provide a focus on the capabilities and culture that we need now and for the future, and the risks that must be managed.

Figure 9.2 – Our business planning process» DSS Vision Statement

» DSS Priorities Plan

» Group and State Plans

» Branch Plans

» Individual Performance Plans

Corporate planningThis year we developed our first DSS Corporate Plan, to meets the requirements of the PGPA Act. This replaces our annual priorities plan and will guide our operations in 2015–16.

The plan describes who we are and what we do within the environment in which we operate.

It covers the factors we control, influence or must respond to in order to achieve our mission to improve the lifetime wellbeing of people and families in Australia.

It also provides the rationale for other key planning documents and processes in our Department, including business and workforce planning.

Planning and performance frameworkTo improve our policy planning and performance reporting, we are developing a comprehensive and integrated framework to align our organisational planning and performance to the broader goals that support our mission. The linking of our long-term policy planning framework, our non-financial performance framework, our activities and deliverables, and our corporate capability will help us to explain how and to what extent our organisational performance contributes to improving lifetime wellbeing.

Risk managementOur Department recognises risk management as an essential component of sound management and good corporate governance. With the introduction of the PGPA Act and the associated Commonwealth Risk Management Policy (CRMP), we have continued to strengthen the way we manage risk in our business activities.

The Executive Management Group reviews the identification and management of our key strategic and operational risks every four months and is supported by the Audit and Assurance Committee.

Our enterprise-level Risk Adviser works with specialist risk areas across the Department to ensure our risk management approach is effective and cohesive.

We respond proportionately to risk, deploying extra effort and resources to areas of highest risk, and we are judicious about our choices where risks are lower. This applies both to how

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we prioritise internal resources and effort and how we work with other agencies and service providers.

As a key part of our risk management approach, our Department maintains a robust business continuity management programme. This ensures we can continue to deliver our critical business processes in the event of a disaster or a significant disruption.

This year we integrated our business continuity and disaster coordination functions. Our Disaster Coordination Plan will guide our actions for responding to individuals and communities affected by a major disaster. We also contribute to the Australian Government Crisis Management Framework.

Internal audit assurance activitiesLast year we conducted 20 audits, including three multi-stage audits, as part of the Department’s 2014–15 Audit Work Programme. The Audit Work Programme provides assurance over areas of risk identified as a priority by our Executive. The first stage of an assurance mapping process was also conducted to capture risk information across the Department.

The three multi-stage audits provided real-time assurance for significant projects and activities to reduce risk and assist successful implementation. Multi-stage audits in 2014–15 related to streamlining DSS grant programmes, and implementing the Government’s deregulation agenda. The other multi-stage audit is ongoing and continues to provide assurance for the Commonwealth Home Support Transition Project.

Results of all internal audits were reported to the Audit and Assurance Committee.

Changes to last year’s Audit Work Programme were made in response to emerging and new risks, including those transferred to us through MoG changes, such as the complex integration of information technologies for incoming functions from other departments. All changes to the programme were endorsed by the Audit and Assurance Committee. Progress towards implementing audit recommendations is tracked and reported biannually to the Audit and Assurance Committee.

ComplianceOur compliance framework sets out the systems, structures and behaviours that build a compliance environment.

The framework builds a compliance culture shaped by rigorous governance, strong leadership and robust compliance activities. It was developed to support our Department to maintain the integrity of the business and services it provides, and it focuses on:

» assessing and planning to manage risk

» decision making informed by risk

» documenting why decisions are made

» reviewing the quality of processes and how our Department is performing

» learning and seizing opportunities for improvement.

The compliance framework is reviewed annually or when there is a change in better practice, relevant legislation and standards, or when the government changes our Department’s responsibilities.

Fraud controlOur Department’s Fraud Control Plan prevents, detects and deters fraud. It includes a:

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» statement of our zero-tolerance approach to fraud and how we manage fraud risks

» description of our employees’ fraud control responsibilities

» description of our fraud prevention, detection and investigation arrangements

» description of our fraud reporting obligations.

We review the Fraud Control Plan annually to ensure it continues to reflect our business activities.

Ongoing fraud risk assessments underpin the plan. The assessment process involves senior executives, programme managers and subject matter experts who evaluate existing and emerging fraud risks at least every six months to ensure appropriate controls are in place to manage those risks.

Fraud awarenessOur fraud awareness strategy includes fraud awareness training and regular fraud related messages to staff. Staff are provided fraud awareness training via face to face sessions or an online training platform. This enables us to satisfy different staff training needs in our national office and across the delivery network and ensures consistency of the training content.

Fraud investigationOur Investigations and Aged Care Law Branch investigated allegations of fraud and criminal behaviour that involved our staff and recipients of our funding. If appropriate, briefs-of-evidence recommending prosecution were submitted to the Commonwealth Director of Public Prosecutions for consideration. Risks identified through investigations were reported to relevant governance committees within the Department.

The Department’s investigations were conducted in line with Australian Government Investigation Standards and all departmental investigators have at least the minimum qualifications stipulated in the standards.

We work closely with other Australian Government entities responsible for fraud prevention and investigation by sharing information and developing knowledge of fraud risks, fraud intelligence and trends that may impact our programmes.

Payments and programmes provided under a bilateral management arrangementWhile our Department is the policy arm of our portfolio, the Department of Human Services (DHS) is its service delivery arm.

Under a bilateral management arrangement, DHS delivers many payments and programmes on behalf of our Department, in line with section 8B of the Human Services (Centrelink) Act 1997 and section 7A of the Human Services (Medicare) Act 1973.

The bilateral arrangement details the payments, programmes and services that provide direct outcomes for people as delivered by DHS. It outlines the exchange of information required to support ongoing review, management and development of policy.

This year, a new management arrangement was established to continue to strengthening our relationship with DHS — underpinning the interdependence in our portfolio between policy and service delivery. This encompasses the relationship, governance and reporting requirements and the exchange of an annual statement of assurance.

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Assurance for payments and servicesThe new management arrangement between our Department and DHS provides a framework to deliver outcomes for social security payments, disability employment services, aged care and settlement services.

Reporting requirements monitor the strength and success of the relationship and rely on risk management approaches to optimise compliance. Our Department works with DHS on:

» developing, implementing and supporting systems and procedures that will prevent, identify and investigate incorrect payments and fraud

» undertaking activities in debt prevention, reviews, analysis, identification, debt raising and recovery, as well as investigation and prosecution

» monitoring, analysing and reporting on performance

» providing information on compliance issues, trends, projects and results.

Measuring the accuracy of programme outlaysAssurance of the accuracy of social security income support payments is provided by the Random Sample Survey Programme. Reviews are conducted by DHS using a random sample of the population for each payment type.

The programme provides a point-in-time assessment of recipient circumstances to establish the accurately paid value of total outlays and provide reasons for any debt, error or change in payment rate. It provides benchmark data on the level of inaccurate payments.

In 2014–15, the programme conducted 24,998 reviews.

The survey is the primary way we measure social security service delivery performance. Payments are to be made with 95 per cent or greater accuracy as measured by the programme. In the past year, the overall result was 96.29 per cent; however, results for some individual social security payments were below the agreed target (see Table 9.1).

This year our Department and DHS continued to work collaboratively to consider ways to improve overall accuracy.

Table 9.1 Payment accuracy — by payment type, as at 30 June 2015a Payment type Number of customers

surveyedAccuracy

(%)Confidence interval (%)

ABSTUDY 625 78.83 +/-3.43

Austudy 850 88.58 +/-2.19

Newstart Allowance 6,113 93.84 +/-0.61

Parenting Payment (Partnered) 1,130 82.79 +/-2.19

Parenting Payment (Single) 2,511 96.21 +/-0.73

Partner Allowance 175 99.09 +/-1.25

Sickness Allowance 527 71.52 +/-3.99

Widow Allowance 306 98.06 +/-1.33

Youth Allowance (Other) 976 90.01 +/-2.03a Payment accuracy figures for the Annual Report vary slightly to those included in the DHS Annual Assurance Statement. These figures can be subject to minor variations at different points in time as reviews, data validation checks and appeal outcomes finalised.

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Payment type Number of customers surveyed

Accuracy (%)

Confidence interval (%)

Youth Allowance (Student) 1,650 91.90 +/-1.37

Age Pension 4,202 98.01 +/-0.25

Disability Support Pension 2,308 95.31 +/-0.86

Carers Payment 1,267 96.11 +/-0.94

Carers Allowance 258 97.38 +/-1.93

Family Tax Benefit 1,750 97.00 +/-0.83

Special Benefit 350 97.91 +/-1.19

Overall rate of accuracy 24,998 96.29 +/-0.24

Measuring accuracy of child care fee assistance Assurance around the integrity of the child care payments system is provided by Random Sample Parent Checks (RSPC) using a random sample of parents and guardians to provide independent verification of the child care attendance information submitted to the Department by child care services. The Department follows up with relevant child care services where discrepancies are identified via the RSPC process.

Our Department continues to enhance its compliance function to increase the accuracy of child care payments paid to child care services.

Table 9.2: Payment accuracy – child care fee assistancePayment type Number of

customers surveyed

Accuracy (%) 95% confidence interval

Child Care Fee Assistance 2670 89.3 Lower % Upper%9.5 12.5

Social security debt raising and recoverySocial Security payments can be overpaid if the recipients’ circumstances change but are not updated either through intentional fraud or unintentional error (staff or recipient). DHS manages debt identification and recovery for our Department and we monitor and oversee this process.

This year, DHS raised 1,966,948 DSS debts valued at $1.49 billion and recovered $1.03 billion; a further $80.1 million was waived. These figures include compensation debts but exclude Family Tax Benefit reconciliation and tax return non lodger debts.

Debts were recovered through a variety of methods. In 2014–15, the primary methods were:

» withholding of a portion of the current entitlement for current recipients and

» garnishee of Tax Refunds for ex-recipients with no other repayment arrangement in place.

The Department can waive its right to recover a debt under certain conditions. These include cases where:

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» the debtor is subject to extreme and unusual circumstances that interfere with their capacity to repay

» the debt was solely due to administrative error or

» the debt is likely to be less than $50 in value and therefore not cost effective to pursue.

Indicators agreed with DHS measure the overall effectiveness of debt management relating to social security programme payments.

Grant managementNew grant programme arrangements, including seven broadbanded grants programmes (replacing the previous 18), were outlined in the 2014–15 Budget and came into effect on 1 July 2014. Funding under the new grant arrangements began on 1 January 2015 and was the result of more than 5,500 applications across 26 funding round processes.

Our Department’s grants management functions including activity design, application assessment and selection processes, and funding agreement development are centralised to drive standardisation and efficiency.

Our Department’s centralised grants management group, known as the Programme Office, applies practices and processes for grants administration that have been developed in line with the Government’s Public Management Reform Agenda; the PGPA Act; the Commonwealth Grants Rules and Guidelines (July 2014) and red tape reduction objectives.

Our Department has continued to streamline grant management processes throughout this year and further reduce red tape for funded organisations, including those in the not for profit sector.

Where possible, we have also moved towards a single grant agreement with providers delivering multiple services to clients and communities.

Our Department is committed to improving grant management and continues to work towards identifying and incorporating improvements for future grant processes.

Information on grants awarded by DSS during the period 1 July 2014 to 30 June 2015, go to the Department of Social Services website.

Ethical standardsWe promote ethical standards and behaviours relating to our workplace and employment.

Material on this is published on our intranet and includes:

» the Australian Public Service (APS) Code of Conduct; the APS Values and the APS Employment Principles

» information on bullying and harassment

» guidance on acceptance of gifts and benefits

» information on conflict of interest and outside employment

» guidance on ethical behaviour in practice.

Our intranet also provides links to external websites that deal with related material, such as the Australian Public Service Commission website.

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http://www.apsc.gov.au./

http://www.dss.gov.au/grants

The requirement for all our employees to comply with the APS Code of Conduct and the APS Values is outlined in each employee’s individual performance agreement.

We have implemented procedures under the Public Interest Disclosure Act 2013 (PID Act) and held information sessions for senior managers since the Act commenced. We also published information about the legislation on our intranet.

This year, orientation sessions included information about ethical behaviour; the APS Code of Conduct; the APS Values; and the PID Act.

Service charterOur service charter sets out the standards of service that clients of our Department can expect, and ways to help us improve our customer service. Our charter also helps our people understand their roles and responsibilities.

For further information on our service charter, go to the Department of Social Services website.

Complaints managementWe encourage people to provide feedback on their experiences with our Department or DSS funded service providers to ensure we continue to improve our service to the Australian people.

In the past year, 179 formal complaints were recorded on the DSS Feedback Management System.

These complaints were categorised under our five outcomes. This year the highest number of complaints related to organisations that provided services under our Department’s Outcome 5 – Disability and Carers: (49 per cent). The next highest were complaints related to Outcome 2 - Families and Communities: (39 per cent).

Complaints relating to Aged Care and Population Ageing are dealt with by the Aged Care Complaints Scheme with performance information provided at Chapter 6.

Freedom of informationInformation Publications SchemeAgencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS).

Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements. To see our plan, go to the Department of Social Services website.

Office of the Australian Information CommissionerWe work closely with the Privacy Commissioner to develop privacy policy relating to social security, family assistance, settlement services and aged care and the handling of personal information.

The Privacy Commissioner may look into a privacy issue, whether or not a complaint has been made, and issue a report or determination.

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This year, the Privacy Commissioner has looked into two privacy matters involving the Department. One matter was closed with no adverse finding and one matter is currently in the process of conciliation.

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Chapter 10 — External scrutinyOur operations are scrutinised by external entities such as the Australian National Audit Office (ANAO), the Commonwealth Ombudsman and committees of the Australian Parliament.

Reports by the Australian National Audit OfficeAudits conducted by the ANAO have examined the Department’s administration of housing programmes, community assistance programmes, aged care programmes previously administered by the Department of Health, and child care programmes previously administered by the Department of Education.

The ANAO tabled three performance audit reports directed to our Department from their 2014–15 audit work programme, and an interim report from its external audit of our financial statements.

Three ANAO performance audits involving our Department were tabled in Parliament in 2014–15:

» Management of Interpreting Services

» Administration of the Early Years Quality Fund

» Business Continuity Management.

Two ANAO performance audits directly involving our Department are in progress:

» National Rental Affordability Scheme

» Early Intervention Services for Children with Disability Programme.

The following four performance audits involve agencies in addition to DSS:

» Qualifying for the Disability Support Pension

» Delivery and Evaluation of Grant Programmes

» Confidentiality in Government Contracts: Senate order for Departmental and Agency Contracts (Calendar year 2014 Compliance)

» Management of Machinery of Government Changes.

Reports by the Commonwealth OmbudsmanThe Commonwealth Ombudsman released one new report relevant to our Department this year, titled Complaint Management by government agencies: An investigation into the management of complaints by Commonwealth and ACT government.

The Commonwealth Ombudsman made five specific recommendations in relation to complaints management in government agencies. Our Department’s current complaints management system complied with most recommendations and, where it did not, we took steps to meet the requirements in future.

Judicial decisionsNo judicial decisions significantly impacted our Department’s operations during 2014–15.

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Administrative tribunal decisionsNo decisions of an administrative tribunal significantly impacted our Department’s operations during 2014–15.

Reports by parliamentary committeesOur Department appeared before the Senate Community Affairs Legislation Committee estimates inquiry on three occasions during 2014–15. Our Department also gave evidence or made submissions to several parliamentary committee inquiries, as set out in Table 10.1.

Table 10.1 Relevant parliamentary committee inquiries in 2014–15Parliamentary committee Actions Date report tabled

House of Representatives Standing Committee on Indigenous Affairs — The harmful use of alcohol in Aboriginal and Torres Strait Islander communities

On 13 February 2014, the Minister for Indigenous Affairs, Senator the Hon Nigel Scullion, asked the committee to inquire into the matter

DSS provided input into a Department of Prime Minister and Cabinet led submission which was submitted to the committee on 10 June 2014

26 June 2015

House of Representatives Standing Committee on Social Policy and Legal Affairs — Child Support Programme

On 27 March 2014, the then Minister for Social Services, the Hon Kevin Andrews MP, asked the committee to inquire into and report

DSS provided a joint submission with DHS in July 2014

DSS appeared before the committee on 28 August 2014 and provided answers to questions taken on notice on 26 November 2014

Report not yet finalised

Senate Community Affairs References Committee — Inquiry into grandparents who take primary responsibility for raising their grandchildren

On 9 December 2013, the Senate referred the matter to the committee for inquiry and report

DSS attended a hearing on 20 June 2014 and provided answers to questions taken on notice at the hearing on 11 July 2014

29 October 2014

Senate Education and Employment References Committee – Inquiry into the immediate future of the childcare sector in Australia

On 12 December 2013, the Senate referred this matter to the committee for inquiry and report

The Department of Education provided a submission on 14 March 2014, and attended a hearing on 22 May 2014

30 October 2014

Senate Education and Employment References

On 12 December 2013, the Senate referred this matter to the committee for

30 October 2014

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Parliamentary committee Actions Date report tabledCommittee – Inquiry into the delivery of quality and affordable early childhood education and care services

inquiry and report

The Department of Education provided a submission on 14 March 2014, and attended a hearing on 22 May 2014

Senate Community Affairs Legislation Committee — Social Security Legislation Amendment (Stronger Penalties for Serious Failures) Bill 2014

On 17 June 2014, the Senate referred the matter to the committee for inquiry and report

DSS appeared before the committee on 18 August 2014

27 August 2014

Senate Community Affairs References Committee —Extent of income inequality in Australia


DSS appeared before the committee on 16 October 2014 and provided answers to questions taken on notice on 13 November 2014

3 December 2014

Senate Community Affairs References Committee — Out of Home Care


DSS provided a submission to the committee on 14 November 2014

DSS appeared before the committee on 16 April 2015

Answers to questions on notice were provided on 11 May 2015


Senate Community Affairs Legislation Committee — Social Services Legislation Amendment (2014 Budget Measure No. 1) Bill 2014 and Social Services and Other Legislation Amendment (2014 Budget Measures No. 2 ) Bill 2014


DSS provided a submission to the committee on 4 September 2014

DSS appeared before the committee on 21 August 2014

DSS provided clarification to the committee on 29 August 2014

Answers to questions on notice were provided on 28 August and 29 August 2014

12 September 2014

Senate Community Affairs Legislation Committee — Business Services Wage Assessment Tool Payment Scheme Bill 2014 and Business Services Wage Assessment Tool Payment


DSS provided a submission to the committee on 23 July 2014

DSS appeared before the committee on

27 August 2014

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Parliamentary committee Actions Date report tabledScheme (Consequential Amendments) Bill 2014

24 July 2014

Answers to questions on notice were provided on 20 August 2014

Senate Community Affairs References Committee — Adequacy of existing residential care arrangements available for young people with severe physical, mental or intellectual disabilities in Australia

On 3 December 2014, the Senate referred the matter to the committee for inquiry and report

DSS provided a submission to the committee on 4 February 2015

DSS and the National Disability Insurance Agency appeared before the committee on 15 May 2015

The NDIA provided answers to questions on notice on 4 June 2015

24 June 2015

Senate Community Affairs References Committee — Impact on service quality, efficiency and sustainability of recent Commonwealth community service tendering processes by the Department of Social Services

On 12 February 2015, the Senate referred the matter to the committee for inquiry and report

DSS provided a submission to the committee on 4 February 2015

DSS provided clarification to the committee on 2 April 2014

DSS appeared before the committee on 21 April and 26 June 2015

Answers to questions on notice were provided on 7 May and 22 May 2015

Interim Report — 13 May 2015

Senate Community Affairs Legislation Committee — Social Services Legislation Amendment Bill 2015

On 26 March 2015, the Senate referred the matter to the Committee for inquiry and report

DSS provided a submission to the committee on 14 May 2015

DSS appeared before the committee on 21 May 2015


15 June 2015

Senate Community Affairs Legislation Committee — Social Services Legislation Amendment (Youth Employment and Other Measures) Bill 2015

On 28 May 2015, the Senate referred the matter to the Committee for inquiry and report

DSS provided a submission to the committee on 9 June 2015


Senate Community Affairs Legislation Committee — Social Services Legislation Amendment (Fair and Sustainable Pensions) Bill

On 4 June 2015, the Senate referred the matter to the Committee for inquiry and report

DSS provided a submission to the committee on 11 June 2015

22 June 2015

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Parliamentary committee Actions Date report tabled2015Senate Economics References Committee – Inquiry into affordable housing

On 12 December 2013, the Senate referred the matter for inquiry and report

DSS and the Department of the Prime Minister and Cabinet provided a joint submission to the committee on 4 April 2014

DSS appeared before the committee on 30 July 2014 and 11 February 2015 and provided answers to questions on notice taken at the hearing

13 April 2015 interim report

8 May 2015 final report

Senate Economics References Committee — Future of Australia's Automotive Industry

On 25 November 2014, the Senate referred the matter to the committee for inquiry and report

DSS appeared before the committee on 15 April 2015



Senate Finance and Public Administration References Committee — Domestic Violence in Australia

On 19 March 2014, the Senate referred the matter to the committee for inquiry and report

DSS provided a submission to the committee on 1 August 2014

DSS appeared before the committee on 15 October 2014 and 11 June 2015

Interim Report — 19 March 2015

Joint Standing Committee on the National Disability Insurance Scheme — National Disability Insurance Scheme

On 2 December 2013, the Committee on the matter was established

The NDIA appeared before the committee on 1 May 2015

Answers to questions on notice were provided by the NDIA on 7 July 2014 and 1 May 2015

Progress Report — 29 July 2014

Joint Public Works Committee — Inquiry into the proposed fit-out of the new leased premises for DSS ACT

On 3 June 2014, the Minister for Finance asked the committee to inquire into and report on the matter

DSS provided a submission to the committee in June 2014

DSS attended a hearing on 18 July 2014 and provided evidence to the committee

1 September 2014

Joint Public Accounts and Audit Committee — Review of Auditor General’s

On 5 June 2014, the Joint Committee of Public Accounts and Audit resolved to review the matter

22 September 2014

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Parliamentary committee Actions Date report tabledReport No.25 (2013-14) Management of the Building Better Regional Cities Programme

DSS appeared before the committee on 26 June 2015

Answers to questions on notice were provided on 11 July 2014

Joint Standing Committee on Treaties — Proposed Social Security Agreement between Australia and India

On 10 February 2015, the Treaties Committee began an inquiry to examine three treaties, including the Social Security Agreement between Australia and India

DSS appeared before the committee on 16 March 2015

12 May 2015

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Chapter 11 — Managing our peopleOverviewDSS is a relatively new department, formed in 2013 by bringing together functions and people from seven agencies. Most recently this included the transfer of child care functions which have responsibilities that align with our mission of improving the lifetime wellbeing of people and families in Australia.

The potential benefits from the policy co-location of Australia’s major care systems are considerable. In response to this significant opportunity, we set out this year to share and align our ways of doing business.

Strong progress has been made in developing DSS into a cohesive and unified department. Areas across the Department are working collaboratively and learning from colleagues’ cultures and strengths, as we progress towards a fresh, consistent ‘DSS business approach’.

We also continued to support and develop our staff through workforce planning, improved performance management, leadership and capability development programmes, employee benefits and workplace arrangements.

For our 2014–15 staffing statistics, see Appendix G – Staffing statistics.

Looking forwardFrom 2015–16 our Department will continue to:

» build on its workforce planning practices to ensure we have a highly capable and engaged workforce to deliver our policy, programme and business priorities

» support staff through learning programmes, wellbeing initiatives and performance management practices

» celebrate our diverse workforce and recognise our achievements through rewards and recognition.

Effectiveness in managing and developing staffWorkforce planningThis year each group in our Department updated its operational workforce plans to ensure we continue to meet our current and future workforce requirements and government priorities.

We will continue to attract, develop and retain our high performing workforce through offering interesting and meaningful work, development opportunities, flexible working arrangements and competitive employment conditions.

Our higher level Strategic Workforce Plan 2014–17 details critical job roles, capabilities, capacity, and workforce risks over the next three years. It includes short to medium workforce strategies and outlines the long-term strategic direction of our workforce.

As well, a quarterly workforce report was presented to the Executive Management Group detailing information on our APS workforce, including key workforce metrics and associated benchmarks.

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In response to organisational priorities and directions identified in the quarterly workforce report, we also appointed individual staff members as Human Resource (HR) Business Partners who worked closely with senior managers to advise, manage and implement strategic HR activities and initiatives.

Workplace diversityThis year we continued to cultivate a diverse and inclusive workforce to reflect the broader Australian community we serve.

Employment of Aboriginal and Torres Strait Islander peopleWe recognise the important role our Aboriginal and Torres Strait Islander staff play in sharing their skills, knowledge and culture to support our work on behalf of all Australians.

Practical actions and initiatives to guide our approach to Aboriginal and Torres Strait Islander recruitment, retention and development were set out this year when we launched our Reconciliation Action Plan 2015–17.

We also established the Aboriginal and Torres Strait Islander Staff National Committee that worked with our senior Indigenous Champion, Acting Deputy Secretary Michael Lye, to drive workforce initiatives for Indigenous employees.

We continued to deliver the Foundations in Aboriginal and Torres Strait Islander Cultures and Societies e learning programme. All new staff are encouraged to undertake this e-learning programme in their induction.

More than 3.7 per cent of our staff identified as being of Aboriginal or Torres Strait Islander heritage, compared with an Australian Public Service (APS) rate of 2.6 per cent in June 2015. This is made up of 129 (3.53 per cent) ongoing and eight (0.22 per cent) non-ongoing Aboriginal and Torres Strait Islander staff. This is a marked increase from 2013–14, where there were 108 (3.03 per cent of DSS staff) ongoing and two (0.06 per cent of DSS staff) non-ongoing Aboriginal and Torres Strait Islander staff employed by DSS.

Figure11.1 Diversity in our peopleDisability employment levels, as at 30 June 2015

APS 3.3%

DSS 5.6%

Indigenous employment levels, as at 30 June 2015

APS 2.6%

DSS 3.7%

Female SES, as at 30 June 2015

APS 40.4%

DSS 60.0%

Employees aged 55 or over, as at 30 June 2015

APS 17%

DSS 16.3%

We also continued to provide employment pathways into DSS for Aboriginal and Torres Strait Islander peoples, including through our Indigenous Internship Programme, the

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Australian Public Service Commission’s Indigenous Pathways Programme, the Department of Education’s Indigenous Australian Government Development Programme, and the DHS Indigenous Apprenticeship Programme.

We recruited 24 Indigenous entry level participants through these programmes in 2014–15.

Employment of people with disabilityOur workplace supports the employment of people with disability.

This year we developed our 2015–18 Disability Workforce Action Plan and established a Staff with Disability Network National Committee. The committee worked with our senior Disability Champion, Deputy Secretary Felicity Hand, to drive workforce initiatives for employees with a disability.

A total of 205 (5.6 per cent) staff identified as having a disability, compared with an APS rate of 3.3 per cent in June 2015.

Our people also participated in the International Day of People with Disability, Hearing Awareness Week, National Aboriginal and Islanders Day Observance Committee (NAIDOC) Week, National Reconciliation Week, Carers Week, Harmony Day and Mental Health Week — underpinning our commitment to diversity.

Leadership and capability developmentWe offered our staff targeted learning and development opportunities this year to maintain capability growth across our Department.

All DSS staff had access to centrally funded learning and development opportunities during 2014–15, with more than 6,000 instances of staff participation. This data reflects the fact that individuals may attend more than one learning and development opportunity each financial year.

We also continued developing the skills of our senior managers, with 67 Senior Executive Service (SES) Officers participating in learning and development opportunities during

2014–15. This represents over 60 per cent of the SES cohort.

We established a Learning and Development Partnership Forum this year to bring business areas across the Department together in the pursuit of a Department wide, considered and coordinated approach to learning and development.

Graduate programmeThrough our graduate programme, we continued to recruit generalists and specialists in diverse fields. We recruited 52 graduates, including 32 generalists, and five information technology, three legal, four finance and eight data and analysis specialists.

Our graduates take part in a comprehensive 10-month programme of internal and external training and networking opportunities and are introduced to broad opportunities for career development.

During this period, graduates undertake two departmental rotations in areas such as policy development and implementation, corporate services and programme administration.

Staff who joined us through the graduate programme between 2009 and 2014 had an average first year retention rate of 92.73 per cent.

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In a survey conducted by the Australian Association of Graduate Employers (AAGE), DSS was listed in the top 75 employers for graduates. Our Department is also a finalist in the Best Graduate Development Program category in the 2015 Australian HR Awards.

Workplace arrangementsEnterprise agreementPortfolio changes over the past two financial years have involved considerable movement of staff, covered by seven separate Enterprise Agreements (which set out terms and conditions of employment).

On 15 July 2014, bargaining commenced for a new DSS Enterprise Agreement (EA) to:

» establish a single pay structure

» create parity for all staff over time

» deliver the requirements of the Australian Government Public Sector Workplace Bargaining Policy.

Significant progress has been made and we are working towards finalising our new EA in 2015-16.

Flexibility agreements for non–SES employeesIndividual Flexibility Arrangements were available to all our staff members in line with the Fair Work Act 2009 and relevant enterprise agreements. Employees and managers had opportunities to negotiate arrangements such as supplementary pay and conditions to recognise highly valued skills critical to our organisation or outstanding contribution.

On 30 June 2015, 209 non SES employees had Individual Flexibility Arrangements in place.

Performance payPerformance pay was phased out of our Department on 1 July 2014.

Performance payments in respect of the 2013–14 performance cycle were made to former Department and Health and Ageing staff who joined our Department following MoG changes in 2013 and who had access to performance pay through Individual Flexibility Arrangements.

Table 11.1 Performance payments for non-SES employees Classification

2014–2015 Aggregated amount $

Average amount $

Minimum amount $

Maximum amount $

APS 6 0 0 0 0 0

EL 1/2a 57 198,265 3,478 820 7,288

To provide parity across the Department, access to performance pay for those staff was ceased with effect from 30 June 2014. Affected staff received a one-off adjustment to their base salary.

Senior Executive Service remunerationThe Executive Management Group reviews SES remuneration and conditions each year, taking into account the annual APS Remuneration Survey Report provided by the Australian Government Remuneration Tribunal.

a Executive Levels 1 and 2

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Section 24(1) determinations — SES employeesSES employees were offered a remuneration and employment conditions package through a determination under the Public Service Act 1999 (Section 24(1)). The remuneration and employment conditions package complies with the requirements of the Executive Remuneration Management Policy issued by the Australian Public Service Commission.

At 30 June 2015,102 Section 24(1) determinations were in place for SES employees.

Common law contractsOur Department does not use common law contracts for the employment of staff.

Non-salary benefits to employeesWe offered non salary benefits to our people under relevant enterprise agreements and other individual industrial instruments. These benefits incorporate various types of leave, including annual, personal and long service leave, as well as flexible working arrangements, access to salary packaging and remote locality assistance.

Support for the National Disability Insurance AgencyThis year we continued to provide Pay and Conditions Services to the National Disability Insurance Agency.

Work health and safetyOur Department acknowledges and is committed to fulfilling its responsibilities under the Work Health and Safety Act 2011, the Work Health and Safety Regulations 2011 and the Safety, Rehabilitation and Compensation Act 1988.

In addition, we are dedicated to taking all reasonably practicable additional measures to protect the health, safety and welfare of our people while at work, in line with our policy of continuous improvement.

For more information on our Department’s work health and safety activities and performance (as required by Schedule 2, Part 4 of the Work Health and Safety Act 2011), see Appendix H – Work Health and Safety.

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Chapter 12 — Managing our financesOur Department managed a $128.9 billion budget this year, which represented almost one third of the Commonwealth Budget.

Key resultsThe 2014–15 financial statements in this report reflect DSS’ effective financial management including implementing changes to functions following the Administrative Arrangements Order of 23 December 2014. Our Department was responsible for almost one-third of the Commonwealth Budget, including $112.4 billion in payments to individuals and $15.8 billion for programmes, subsidies and grants to support the community.

Within our Department’s operating expenditure of $0.7 billion, a small surplus attributable to DSS of $0.8 million was reported.

How we are fundedThe Australian Parliament, via the Appropriation Acts, provides our Department with two types of funding: departmental and administered.

Departmental resources are used to develop and implement policies and deliver services (programmes).

We also administer payments, subsidies, revenues and other resources on behalf of the Australian Government. A shaded background in our Financial Statements (at Part 3, Chapter 13) indicates information that relates to an administered resource.

Changes in departmental and administered finances reported in the following tables are due to the part year effects of the 2013–14 and 2014–15 MoG changes.

Table 12.1 Trends in departmental finances

2014–15$million

2013–14 $million

Change $million

Revenue from the Australian Government 598.5 630.9 (32.4)

Other revenue 65.0 104.3 (39.3)

Total income 663.5 735.2 (71.7)

Employee benefits 391.4 425.6 (34.2)

Suppliers 252.9 193.1 59.8

Other expenses 81.6 173.3 (91.7)

Total expenses 725.9 792.0 (66.1)

Deficit attributed to the Australian Government (62.4) (56.8) (5.6)

Add back non-appropriated depreciation and 63.2 57.2 6.0

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2014–15$million

2013–14 $million

Change $million

amortisation expense

Surplus attributed to the Department 0.8 0.4 0.4

Financial assets A 173.0 213.4 (40.4)

Non-financial assets B 188.0 195.1 (7.1)

Liabilities C 197.5 223.4 (25.9)

Net assets (A+B-C) 163.5 185.1 (21.6)

Table 12.2 Trends in administered finances

2014–15$million

2013–14$million

Change$million

Recoveries 237.8 46.7 191.1

Interest 7.8 27.3 (19.5)

New Zealand Reciprocal Agreement 12.3 14.8 (2.5)

Other revenue 28.4 48.2 (19.8)

Total revenue 286.3 137.0 149.3

Suppliers 965.7 332.8 632.9

Subsidies 11,049.6 7,776.5 3,273.1

Personal benefits 112,441.2 101,219.1 11,222.1

Grants 2,991.9 2,164.8 827.1

Payments to corporate Commonwealth entities 308.4 52.2 256.2

Other expenses 450.4 317.6 132.8

Total expenses 128,207.2 111,863.0 16,344.2

Financial assets 4,559.5 3,806.6 752.9

Non-financial assets 0.04 0.4 (0.36)

Liabilities 9,895.4 9,195.1 700.3

Assets managementOur Department manages its assets in accordance with the Secretary’s Instructions, issued by our Secretary under the authority of section 20A of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), relevant accounting standards and Department of Finance requirements.

Our assets are valued independently every three years. The former Australian Valuation Office undertook a complete valuation in 2012–13, and as a result a full valuation was not required this year.

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ConsultantsThis year, 74 new consultancy contracts were let for a total of $8.0 million and a further 38 ongoing consultancy contracts totalling $5.2 million were active.

Our Department contracted providers of professional services after considering the skills and resources required for the task, internal capacity, and the cost effectiveness of contracting an external service provider. Consultants were engaged in line with the PGPA ACT and related regulations.

This annual report presents information about our Department’s actual expenditure on contracts for consultancies. For information on the value of contracts and consultancies, go to the AusTender website.

Summary information on consultancy services for our Department and the Social Security Appeals Tribunal is set out in Tables 12.3 to 12.5.

Table 12.3 New consultancies let in 2014–15

NumberExpenditure

($ million, GST incl.)

DSS core 62 7.8

Social Security Appeals Tribunal 12 0.2

Total 74 8.0

Table 12.4 Ongoing consultancies active in 2014–15

NumberExpenditure

($ million, GST incl.)

DSS core 37 5.2

Social Security Appeals Tribunal 1 0

Total 38 5.2

Table 12.5 Total expenditure on new and ongoing consultancy contracts — 2012–13, 2013–14 and 2014–15

Expenditure ($ million, GST incl.)

2012–13 2013–14 2014–15

21.8 17.5 13.2

Australian National Audit Office access clausesNo contracts were let this year that did not require the Auditor-General to have access to the contractor’s premises.

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http://www.tenders.gov.au/

Exempt contractsIn 2014–15, one contract was exempted from reporting on AusTender on the basis that publishing contract details would disclose exempt matters under the Privacy Act 1988.

PurchasingOur purchasing activities are consistent with the Secretary’s Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Rules (July 2012).

Purchasing is made in an accountable and transparent manner, complying with Australian Government policies and meeting relevant international obligations.

This year we invested almost $55 million in our capital works programme, including on the launch of the Aged Care Gateway, improved records management systems and scanning technology to streamline payments to DSS vendors.

Procurement initiatives to support small businessOur Department supports small business participation in the Commonwealth Government procurement market. For Small and Medium Enterprises (SME) and Small Enterprise participation statistics, go to The Department of Finance website.

Our Department recognises the importance of ensuring that small businesses are paid on time. For the results of the Survey of Australian Government Payments to Small Business, go to The Australian Government, Treasury website.

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http://www.treasury.gov.au/

http://www.finance.gov.au/

Rural child care frees young parents to build careers

Child care is helping young families at Warracknabeal in the rural north west of Victoria to build their lives, careers and, in turn, to build their town.

“If I didn’t have it, I couldn’t work,” 35 year old dental nurse Justine Hide said.

Having use of the Warracknabeal Childcare Centre also means Justine can study part time for a health science degree in food and nutrition.

Her two year old son Jack goes there for child care two or three days a week, attending the a long day care centre that also offers occasional care.

“In a small town one person’s work is not enough to live on,” Justine said.

“I heavily rely on the centre, not just to be able to work but also for my wellbeing, my sanity.”

“There are no other options out here. Without it I would have to put him in child care at Horsham — which is 60 kilometres away — just to be able to work.”

“If it closed down it would be terrible for the whole Shire of Yarriambiack.

There are also single parents here who are faced with the same challenges as I am. These are vital people supporting vital industries,” Justine said.

The Childcare Centre in Warracknabeal (population 2,700) is a happy, much appreciated part of the community infrastructure for parents like Justine and her partner Justin Neofitou, and it is a major support for their young family.

The Australian Government makes Child Care Benefit and Child Care Rebate payments to eligible child care centres on behalf of parents like Justine and Justin.

Our Department provided for child care that benefited an estimated 1.6 million children and their families this year.

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Part 4 Financial statementsChapter 13 — DSS Financial StatementsDepartment of Social ServicesFinancial statements for the year ended 30 June 2015Basis of Preparation of the Financial Statements

The financial statements are general-purpose financial statements and are required by section 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The financial statements have been prepared in accordance with:

» Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014

» Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and

» AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (new consideration for the 2015 financial year).

Independent auditor’s reportTo the Minister for Social Services

I have audited the accompanying annual financial statements of the Department of Social Services for the year ended 30 June 2015, which comprise:

» Statement by the Secretary and Chief Finance Officer;

» Statement of Comprehensive Income;

» Statement of Financial Position;

» Statement of Changes in Equity;

» Cash Flow Statement;

» Schedule of Commitments;

» Administered Schedule of Comprehensive Income;

» Administered Schedule of Assets and Liabilities;

» Administered Reconciliation Schedule;

» Administered Cash Flow Statement;

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» Schedule of Administered Commitments; and

» Notes to and forming part of the financial statements comprising a Significant Accounting Policies and other explanatory information.

Secretary’s Responsibility for the Financial StatementsThe Secretary, as the Accountable Authority, of the Department of Social Services is responsible under the Public Governance, Performance and Accountability Act 2013 for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards and the rules made under that Act. The Secretary is also responsible for such internal control as is necessary to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityMy responsibility is to express an opinion on the financial statements based on my audit. I have conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These auditing standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Secretary, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence In conducting my audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.

Opinion In my opinion, the financial statements of the Department of Social Services:

a) comply with Australian Accounting Standards and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

b) present fairly the financial position of the Department of Social Services as at 30 June 2015 and its financial performance and cash flows for the year then ended.

Australian National Audit Office

Grant HehirAuditor-General

Canberra31 August 2015

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Department of Social ServicesStatement by the Secretary and Chief Finance OfficerIn our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Government, Performance and Accountability Act 2015 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the non-corporate entity Commonwealth entity will be able to pay its debts as and when they fall due.

Finn Pratt AO PSM, Secretary31 August 2015

Scott Dilley, Chief Finance Officer31 August 2015

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DEPARTMENT OF SOCIAL SERVICESSTATEMENT OF COMPREHENSIVE INCOMEfor the period ended 30 June 2015

Notes2015$'000

2014$'000

NET COST OF SERVICES

Expenses

Employee benefits 4A 391,431 425,636

Suppliers 4B 252,894 193,057

Grants 2,126 1,960

Depreciation and amortisation 8C, 8E 63,194 57,212

Finance costs 10B 100 59

Write-down and impairment of assets 8C, 8E 14,747 2,939

Losses from asset sales 4C 64 28

Payments for service delivery 4D 763 746

Other expenses 4E 608 110,449

Total expenses 725,927 792,086

Own-Source Income

Own-source revenue

Rendering of services 5A 55,341 59,359

Rental income 6,606 5,194

Other revenue 1,208 1,055

Total own-source revenue 63,155 65,608

Gains

Gains from sale of assets 5B 215 244

Other gains 5C 1,643 38,489

Total gains 1,858 38,733

Total own-source income 65,013 104,341

Net cost of services (660,914) (687,745)

Revenue from Government 598,490 630,946

Deficit attributable to the Australian Government (62,424) (56,799)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve (1,389) 391

Total other comprehensive (loss) / income (1,389) 391

Total comprehensive loss attributable to the Australian Government (63,813) (56,408)

The above statement should be read in conjunction with the accompanying notes.

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DEPARTMENT OF SOCIAL SERVICESSTATEMENT OF FINANCIAL POSITIONas at 30 June 2015

Notes2015$'000

2014$'000

ASSETS

Financial Assets

Cash and cash equivalents 12 8,589 3,223

Trade and other receivables 7A 164,371 210,131

Total financial assets 172,960 213,354

Non-Financial Assets

Leasehold improvements 8A, 8C 31,047 41,002

Property, plant and equipment 8B, 8C 24,675 27,289

Intangibles 8D, 8E 113,619 111,654

Other non-financial assets 8F 18,610 14,963

Total non-financial assets 187,951 194,908

Assets held for sale 8B 59 287

Total assets 360,970 408,549

LIABILITIES

Payables

Suppliers 9A 34,185 37,899

Other payables 9B 37,936 62,993

Total payables 72,121 100,892

Provisions

Employee provisions 10A 118,876 118,546

Other provisions 10B 6,504 3,963

Total provisions 125,380 122,509

Total liabilities 197,501 223,401

Net assets 163,469 185,148

EQUITY

Contributed equity 295,011 252,877

Reserves 66,095 67,484

Retained earnings (197,637) (135,213)

Total equity 163,469 185,148


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DEPARTMENT OF SOCIAL SERVICESSTATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2015

Notes

Retained earnings

Asset revaluation

reserveContributed

equity/capital Total equity

2015$'000

2014$'000

2015$'000

2014$'000

2015$'000

2014$'000

2015$'000

2014$'000

Opening balance

Balance carried forward from previous period

(135,213)

(78,414) 67,484 67,093

252,877

229,983

185,148

218,662

Adjusted opening balance

(135,213)

(78,414) 67,484 67,093

252,877

229,983

185,148

218,662

Comprehensive income

Other comprehensive income - - (1,389) 391 - - (1,389) 391

Deficit for the period

(62,424)

(56,799) - - - -

(62,424)

(56,799)

Total comprehensive income

(62,424)

(56,799) (1,389) 391 - -

(63,813)

(56,408)

Transactions with owners

Contributions by owners

Equity injection - Appropriations - - - - 16,373 72,072 16,373 72,072

Departmental capital budget - - - - 18,734 22,488 18,734 22,488

Restructuring11A - - - - 7,027

(71,666) 7,027

(71,666)

Total transactions with owners - - - - 42,134 22,894 42,134 22,894

Closing balance as at 30 June

(197,637)

(135,213) 66,095 67,484

295,011

252,877

163,469

185,148


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DEPARTMENT OF SOCIAL SERVICESCASH FLOW STATEMENTfor the period ended 30 June 2015

Notes2015$'000

2014$'000

OPERATING ACTIVITIES

Cash receivedAppropriations 674,899 713,661Sale of goods and rendering of services 70,495 72,261Net GST received 26,594 23,650Other 7 3

Total cash received 771,995 809,575

Cash used

Employees 412,202 406,765Suppliers 277,868 219,632Grant payments 2,126 1,960Payments for service delivery 763 746Payments to National Disability Insurance Agency - 110,448Section 74 receipts transferred to Official Public Account 70,463 73,292

Total cash used 763,422 812,843Net cash from / (used by) operating activities 12 8,573 (3,268)

INVESTING ACTIVITIES

Cash receivedProceeds from sales of property, plant and equipment 255 1,318

Total cash received 255 1,318

Cash used

Purchase of property, plant and equipment 13,667 13,362Purchase of intangibles 46,455 34,475

Total cash used 60,122 47,837Net cash used by investing activities (59,867) (46,519)

FINANCING ACTIVITIES

Cash receivedEquity injections 33,826 30,962Departmental capital budget 22,834 18,039

Total cash received 56,660 49,001Net cash from financing activities 56,660 49,001

Net increase / (decrease) in cash held 5,366 (786)

Cash and cash equivalents at the beginning of the reporting period 3,223 4,009Cash and cash equivalents at the end of the reporting period 12 8,589 3,223


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DEPARTMENT OF SOCIAL SERVICESSCHEDULE OF COMMITMENTSas at 30 June 2015

2015< one year

$'000

one to five years

$'000

> five years$'000

Total$'000

Commitments receivableRendering of services 11,900 2,822 - 14,722Sublease rental income 379 260 - 639Net GST recoverable on commitments 16,393 14,638 28,026 59,057

Total 28,672 17,720 28,026 74,418

Commitments payable

Operating leases1 55,857 152,847 312,798 521,502Research and development2 14,258 32,587 - 46,845Other capital commitments 352 - - 352Other3 124,936 24,555 - 149,491

Total 195,403 209,989 312,798 718,190Net commitments 166,731 192,269 284,772 643,772

2014< one year

$'000

one to five years

$'000

> five years$'000

Total$'000

Commitments receivableRendering of services 11,263 1,465 - 12,728Sublease rental income 96 167 - 263Net GST recoverable on commitments 11,435 11,580 1,827 24,842

Total 22,794 13,212 1,827 37,833

Commitments payable

Operating leases1 47,144 96,748 20,087 163,979Research and development2 16,626 49,096 - 65,722Other capital commitments 2,311 - - 2,311Other3 66,158 3,442 - 69,600

Total 132,239 149,286 20,087 301,612Net commitments 109,445 136,074 18,260 263,779

Note: Commitments are GST inclusive where relevant.

1. Operating leases included are effectively non-cancellable and mainly comprise:

Leases for office accommodationDepartment of Social Services (DSS) has office accommodation at 20 locations comprising 23 leases including two subleases and one lease under a memorandum of understanding. Tuggeranong Office Park is the only significant office location for accommodation lease commitments.

DSS lease payments are subject to review by a variety of mechanisms; and these include predetermined fixed escalations, a link to CPI movements, or in accordance with a market review of comparable leases. Contingent rental payments are determined by market review and CPI movements.

2. Research and development commitments arise where DSS is required to research an initiative and from that develop a programme to be implemented in the wider community, such as Building New Life in Australia (BNLIA), Longitudinal Study of Australian Children (LSAC) and Household, Income and Labour Dynamics in Australia (HILDA).

3. Other commitments mainly relate to property maintenance and management services, telecommunications, provision of global pre-departure cultural orientation services to refugee and special humanitarian clients under the Australian Cultural Orientation (AUSCO), contractors, IT services and project management.

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The above schedule should be read in conjunction with the accompanying notes.

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DEPARTMENT OF SOCIAL SERVICESADMINISTERED SCHEDULE OF COMPREHENSIVE INCOMEfor the period ended 30 June 2015

Notes2015$'000

2014$'000


Expenses

Suppliers 17A 965,652 332,809

Subsidies 17B 11,049,588 7,776,451

Personal benefits 17C 112,441,175 101,219,131

Grants 17D 2,991,888 2,164,791

Depreciation 21A 6 7

Write-down and impairment of assets 17E 92,130 32,166

Disposal of assets 21A 367 -

Payments to corporate Commonwealth entities 17F 308,433 52,169

Other expenses 17G 357,989 285,438

Total expenses 128,207,228 111,862,962

Income

Revenue

Non-taxation revenue

Recoveries 18A 237,815 46,743

Interest 7,753 27,312

NZ Reciprocal Agreement 12,278 14,786

Special accounts revenue 2,886 6,633

Other revenue 25,574 41,520

Total non-taxation revenue 286,306 136,994

Total revenue 286,306 136,994

Net cost of services (127,920,922) (111,725,968)

Deficit (127,920,922) (111,725,968)


Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve (42,481) 25,307

Total other comprehensive (loss) / income (42,481) 25,307

Total comprehensive loss (127,963,403) (111,700,661)


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DEPARTMENT OF SOCIAL SERVICESADMINISTERED SCHEDULE OF ASSET AND LIABILITIESfor the period ended 30 June 2015

Notes2015$'000

2014$'000

ASSETS

Financial Assets

Cash and cash equivalents 24 11,511 51,826

Receivables 20A 4,495,893 3,683,560

Investments in Commonwealth entities and other interests 20B 52,049 71,181

Total financial assets 4,559,453 3,806,567


Land and buildings 21A - 373

Other non-financial assets 21B 44 7

Total non-financial assets 44 380

Total assets administered on behalf of Government 4,559,497 3,806,947

LIABILITIES

Payables

Suppliers 22A 61,928 34,188

Subsidies 22B 218,800 301,146

Personal benefits 22C 3,211,052 3,143,378

Grants 22D 67,277 13,764

Other payables 22E - 887

Total payables 3,559,057 3,493,363

Provisions

Personal benefits and other provisions 23A 6,336,314 5,701,731

Total provisions 6,336,314 5,701,731

Total liabilities administered on behalf of Government 9,895,371 9,195,094

Net liabilities (5,335,874) (5,388,147)


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DEPARTMENT OF SOCIAL SERVICESADMINISTERED RECONCILIATION SCHEDULEfor the period ended 30 June 2015

2015$'000

2014$'000

Opening assets less liabilities as at 1 July (5,388,147) (3,553,791)

Net cost of servicesIncome 286,306 136,994Expenses

Payments to entities other than corporate Commonwealth entities (127,898,795) (111,810,793)Payments to corporate Commonwealth entities (308,433) (52,169)

Other comprehensive income:

Revaluations transferred to reserves (42,481) 25,307

Transfers (to) / from the Australian Government:

Appropriation transfers from Official Public Account:Annual appropriations

Payments to entities other than corporate Commonwealth entities 4,772,464 3,000,758Payments and investments to corporate Commonwealth entities 332,669 102,359

Special appropriations (unlimited)Payments to entities other than corporate Commonwealth entities 125,088,350 110,279,367

Appropriation transfers to Official Public Account:

Transfers to Official Public Account (933,464) (390,243)Administered receipts collected by other agencies (615,760) (557,149)

Restructuring (net) (567,054) (2,657,014)Net withholdings of personal benefits overpayments through equity (81,338) 91,013Other non-reportable items recognised by DSS 19,809 (2,786)

Closing assets less liabilities as at 30 June (5,335,874) (5,388,147)


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DEPARTMENT OF SOCIAL SERVICESADMINISTERED CASH FLOW STATEMENTfor the period ended 30 June 2015

Notes2015$'000

2014$'000

OPERATING ACTIVITIESCash receivedInterest 6,221 4,828NZ Reciprocal Agreement 12,905 15,479Special accounts 392,463 6,633Net GST received 333,838 164,099Other 99,784 39,617Total cash received 845,211 230,656

Cash used

Grants 3,263,303 2,361,630Subsidies 11,294,413 7,592,655Personal benefits 113,905,788 102,494,875Suppliers 1,032,807 340,833Payments to land councils for administrative purposes - 20,012Payments to land councils for distribution - 19,598Payments to corporate Commonwealth entities 309,320 51,282Special accounts 240,400 103,781Other 90,865 79,180Total cash used 130,136,896 113,063,846Net cash used by operating activities 24 (129,291,685) (112,833,190)


Cash receivedRepayments of advances and loans 88,254 1,890Proceeds from maturity and sales of investments - 940,446Interest on investments - 26,500Total cash received 88,254 968,836

Cash used

Investments - 995,762Corporate Commonwealth entity investments 23,349 51,077Advances and loans made 73,554 51,012Transfers to other entities - 7,248Total cash used 96,903 1,105,099Net cash used by investing activities (8,649) (136,263)Net decrease in cash held (129,300,334) (112,969,453)

Cash and cash equivalents at the beginning of the reporting period 51,826 29,038

Cash from Official Public Account for:Appropriations 129,953,083 113,278,703Special accounts 240,400 103,781

Total cash from official public account 130,193,483 113,382,484

Cash to the Official Public Account for:

Appropriations (541,001) (216,547)Special accounts (392,463) (173,696)

Total cash to official public account (933,464) (390,243)

Cash and cash equivalents at the end of the reporting period 24 11,511 51,826


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DEPARTMENT OF SOCIAL SERVICESSCHEDULE OF ADMINISTERED COMMITMENTSas at 30 June 2015

2015< one year

$'000one to five years

$'000> five years

$'000Total$'000

Commitments receivable

Other 10,189 24,045 7,085 41,319

GST recoverable 256,629 342,734 74 599,437

Total 266,818 366,779 7,159 640,756

Commitments payable

Project commitments1 167,915 57,752 - 225,667

Research and development2 2,835 2,334 - 5,169

Other capital commitments3 5,517 4,308 - 9,825

Other4 3,332,986 4,484,156 276,162 8,093,304

Total 3,509,253 4,548,550 276,162 8,333,965

Net commitments 3,242,435 4,181,771 269,003 7,693,209

2014< one year

$'000one to five years

$'000> five years

$'000Total$'000

Commitments receivable

Other 12,456 30,201 11,119 53,776

GST recoverable 215,403 83,815 - 299,218

Total 227,859 114,016 11,119 352,994

Commitments payable

Project commitments 74,126 14,560 - 88,686

Research and development 3,934 6,343 - 10,277

Other 2,924,426 1,276,832 365,645 4,566,903

Total 3,002,486 1,297,735 365,645 4,665,866

Net commitments 2,774,627 1,183,719 354,526 4,312,872

Note: Commitments are GST inclusive where relevant.1. Project commitments mainly relate to Aged Care policy and reform projects.

2. Research and development commitments arise where DSS is required to undertake research for an initiative and, from the information gained, develop or improve programmes, such as research on social policy.

3. Other capital commitments mainly relate to upgrades for aged care facilities.

4. Other commitments mainly relate to subsidies payable or grant amounts payable under agreements in respect of which the grantee has yet to provide the services required.

The above schedule should be read in conjunction with the accompanying notes

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Notes to and forming part of the financial statementsNote 1: Significant Accounting Policies

Note 2: Events After Balance Sheet Date

Note 3: Net Cash Appropriation Arrangements

Note 4: Expenses

Note 5: Income

Note 6: Fair Value Measurements

Note 7: Financial Assets

Note 8: Non-Financial Assets

Note 9: Payables

Note 10: Provisions

Note 11: Restructuring

Note 12: Cash flow reconciliation

Note 13: Contingent assets and liabilities

Note 14: Senior Management Personnel Remuneration

Note 15: Financial instruments

Note 16: Financial Assets Reconciliation

Note 17: Administered Expenses

Note 18: Administered Income

Note 19: Administered Fair Value Measurements

Note 20: Administered Financial Assets

Note 21: Administered Non-Financial Assets

Note 22: Administered Payables

Note 23: Administered Provisions

Note 24: Administered Cash Flow Reconciliation

Note 25: Administered Contingent Assets and Liabilities

Note 26: Administered Investments

Note 27: Administered Financial Instruments

Note 28: Administered Financial Assets Reconciliation

Note 29: Appropriations

Note 30: Special Accounts

Note 31: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Note 32: Reporting of Outcomes

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Note 33: Budgetary Reports and Explanations of Major Variances

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Notes to and forming part of the financial statements

Note 1: Significant Accounting Policies

1.1 Objectives of the Department of Social Services

The Department of Social Services (DSS) is a Government controlled, not for profit entity. DSS works in partnership with other government and non-government organisations, particularly with the Department of Human Services (DHS), to ensure the effective development, management and delivery of a diverse range of policies, programmes and services that are focused on improving the lifetime wellbeing of people and families in Australia. This includes making payments for personal benefits, other direct and indirect benefits and community services.

The continued existence of DSS in its present form and with its present programmes is dependent on Government policy and on continuing appropriations by Parliament for DSS administration and programmes.

In the 2015 financial year, DSS was responsible for the following five outcomes:

Outcome 1: Social Security - Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.

Outcome 2: Families and Communities - Stronger families and more resilient communities by developing civil society and by providing family and community services.

As a result of the Administrative Arrangement Order (AAO) issued on 23 December 2014, the responsibilities for the Child Care payments from the former Department of Education were transferred to DSS. The following programmes were added to the existing programme structure:

• Programme 2.4: Support for the Child Care System – all child care programmes other than those remaining in the Department of Education and Training, including three National Partnerships (National Quality Agenda for Early Childhood Education and Care, National Occasional Care Programme and TAFE Fee Waivers for Child Care);

• Programme 2.5: Child Care Benefit; and

• Programme 2.6: Child Care Rebate.

Outcome 3: Ageing and Aged Care - Improved wellbeing for older Australians through targeted support, access to quality care and related information services.

Outcome 4: Housing - Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Outcome 5: Disability and Carers - Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

1.2 Comparative Figures for the 2014 Financial Year

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DSS’ outcome structure has changed to better align DSS’ business. As part of this change, DSS’ outcome structure has decreased from 11 reported in the 2014 financial year to five in the 2015 financial year.

Certain comparative amounts have been reclassified or adjusted to conform with the 2015 financial year’s reporting presentation. There are minor changes in the Departmental Schedule of Commitments, Administered Cash Flow Statement and Notes 9B, 10A, 14, 17C, 17D, 17F, 22A, 22C and 24.

1.3 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The financial statements have been prepared in accordance with:

• Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014;

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and

• AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (new consideration for the 2015 financial year).

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets and liabilities that are reported at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRRs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to DSS or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executable contracts are not recognised unless required by an accounting standard. Liabilities and assets that are not recognised are reported in the schedule of commitments or the contingencies note.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

Administered revenues, expenses, assets, liabilities and cash flows reported in the schedule of administered items and related notes of disclosure are accounted for on the same basis and using the same policies as for departmental items, except as otherwise stated in Note 1.21.

1.4 Significant Accounting Judgement and Estimates

In the process of applying the accounting policies listed in this note, DSS made the following significant judgements that have an impact on the amounts recorded in the financial statements:

Family Tax Benefit

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At any point in time there are eligible customers, entitled to receive the Family Tax Benefit (FTB), who have not yet received their full entitlement from DHS. DSS engages the Australian Government Actuary (AGA) to estimate a provision for these benefits. The provision calculates the current financial year and earlier financial years’ liability for claims that have yet to be realised. The methodology considers the likely lodgement profiles associated with reconciliation top-ups, lump sum claims and supplement payments, including the impact of new measures.

At any point in time there are also a number of eligible customers who have received a benefit in excess of their entitlement and owe money to the Commonwealth. The AGA has provided advice on the likely level of debt recoveries.

The AGA also calculates the impairment allowance associated with the FTB receivable. It relies on periodic analysis of longitudinal unit record data to estimate the proportion of the outstanding non-lodger debt which might be considered receivable and the doubtful debt associated with each category of debt. An allowance is also made for debt which is not yet recorded on the DHS Debt Management Information System but is likely to have occurred. There is uncertainty associated with all elements of the estimation process, particularly given policy and apparent behavioural responses over recent years.

Pension Bonus Scheme

The Pension Bonus Scheme (PBS) provides a tax free lump sum payment to those who continue in employment and defer receiving the Age Pension. The scheme was closed to new entrants in July 2014 and new registrations are no longer permitted. The future liability for the PBS has been calculated by the AGA and relates to those who are currently registered and have not yet received a bonus payment or exited for some other reason.

The assumptions used by the AGA are regularly evaluated and are based on historical experience and other factors that are considered to be reasonable under the circumstances, including actual average payments, claim rates and the period over which claims are expected to be made. These factors have been reviewed for 2015 based on the behaviour of customers up to 31 December 2014 and projected over the estimated remaining life of the scheme (2015: 16 years, 2014: 16 years). The AGA has altered the discounted rate assumption this financial year in order to be consistent with the timing of PBS payments. The AGA has adopted the zero coupon rate at three and a half years as at 30 June 2015 (2015: 2.09 per cent, 2014: 2.7 per cent) as the discount rate to determine the present value of this long term provision.

Schoolkids Bonus

The estimation of the provision for Schoolkids Bonus (SKB) relates to recipients who have not established their eligibility criteria for either the January or July payments as at 30 June 2015. This financial year DSS has engaged the AGA to estimate this provision. The SKB recipients within the provision are:

- Instalment recipients who were eligible on 1 January 2015 (the January payment group) but have not established eligibility with DHS as at 30 June 2015;

- Instalment recipients who were eligible on 30 June 2015 (the July payment group) but have not established eligibility with DHS as at 30 June 2015; and,

- Lump sum recipients who have not submitted their application for payment as at 30 June 2015.

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The AGA has assumed that the first recipient group only relates to FTB A instalment customers since all other customers have a maximum of 13 weeks to establish eligibility. The liability for the second group of recipients is assumed to be equal to the liability for the first group since it will be essentially the same group of people receiving each payment. The final group of recipient comprises FTB A lump sum customers who have not established eligibility by 30 June 2015. This group of recipients has 12 months to establish eligibility from the end of the entitlement year.

Student Financial Supplement Scheme

The Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme for tertiary students to help cover their expenses while they studied. The SFSS closed on 31 December 2003 and no new loans have been issued since this date. Existing SFSS debts are collected through the tax system and voluntary repayments can also be made.

For the 2015 financial year, DSS engaged the AGA to review the underlying model assumptions to confirm the repayments are tracking broadly in line with expectations and to provide the fair value estimate of the SFSS receivable as at 30 June 2015.

The fair value is determined by analysing the progression of actual repayments received and making comparisons to the tranches of debt from each financial year in which the scheme operated. The longitudinal record of repayments for each tranche of debt is used to make estimates of future repayments. These estimated future repayments on each tranche of debt are combined to generate total projected repayments (projected cash flows) in the future years in nominal dollars.

The fair value of the receivable is then derived by discounting the nominal value of projected repayments using the yield curve for Commonwealth Government securities as at 30 June 2015.

Investments in Commonwealth Entities and Other Interests

Investments in Commonwealth Entities and Other Interests (please refer to Note 20B) are reported at their estimated fair value as at the reporting date, and are based on the net asset value recorded in the latest management accounts or unaudited financial statements provided.

Child Care Fee Assistance

The Child Care Fee Assistance (CCFA) programme assists families with the cost of child care. Recipients receive an estimated entitlement fortnightly, either as a fee reduction via the child care provider or in some instances directly. Recipients may also receive certain benefits quarterly or annually. The benefits are paid on the basis of an estimate of taxable income and the subsequent lodgement of their tax return establishes actual income and an adjustment to the recipient’s entitlement.

The department estimates a provision or a receivable for these entitlements where the recipients have either received less than or in excess of their entitlement. The amount recognised as a provision or receivable is the best estimate of the consideration required to settle the present obligation as at the reporting date, taking into account the risks and uncertainties that surround the events and circumstances that affect the provision as required by AASB 137 – Provision, Contingent Liabilities and Contingent Assets, para. 8.1.

1.5 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

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Consistent with section 19 of the FRRs, DSS has decided to adopt the amendments to AASB 13 - Fair Value Measurement for the 2015 financial year. These amendments reduce fair value measurement of property, plant and equipment assets required disclosure which was previously required for assets primarily held for internal or policy use, rather than to earn revenue. More specifically, the disclosure is no longer required for quantitative information regarding the significant unobservable inputs used in fair value measurements and the sensitivity of certain fair value measurements to changes in unobservable inputs.

There have been no further new standards, revised standards, amended standards or interpretations that were issued by the AASB prior to the sign off date, which are applicable to the current reporting period and have a material financial impact on DSS.

Future Australian Accounting Standard Requirements

There are no new standards, revised standards, amended standards or interpretations that have been issued by the AASB prior to the sign off date, which are applicable to the future reporting period and are expected to have a future material financial impact on DSS.

1.6 Revenue

Revenue from the sale of goods is recognised on the basis of:

(a) the risks and rewards of ownership have been transferred to the buyer;

(b) DSS retains no managerial involvement or effective control over the goods;

(c) the revenue and transaction costs incurred can be reliably measured; and

(d) it is probable that the economic benefits associated with the transaction will flow to DSS.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised on the basis of:

(a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured;

(b) the probable economic benefits associated with the transaction will flow to DSS; and

(c) the proportion of costs incurred to date as compared to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 - Financial Instruments: Recognition and Measurement.

Revenue from Government

Amounts appropriated for departmental appropriations for the financial year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when DSS gains control of the appropriation, except for certain amounts that relate to activities that are

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reciprocal in nature, in which case, revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

1.7 Gains

Resources Received Free of Charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.8 Transactions with the Government as Owner

Equity Injections

Amounts appropriated which are designated as 'equity injections' for a financial year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that financial year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other Distributions to Owners

The FRRs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend

1.9 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB - 119 Employee Benefits) and termination benefits due within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

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The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of DSS is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including DSS employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

As at 30 June 2015 the liability for long service leave has been determined by reference to the work of the AGA. During the 2015 financial year, the AGA was engaged to calculate DSS’ long service leave provision due to changes in the staffing profile, resulting primarily from Machinery of Government (MoG) changes. The estimate of the present value of the liability takes into account attrition rates, inflation, increases in pay through promotion and estimated pay increases through the proposed DSS Enterprise Agreement.

Separations and Redundancy

Provisions are made for employee separation and redundancy benefit payments. DSS recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

Staff of DSS are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other superannuation funds.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and disclosure notes.

DSS makes employer contributions to each employee’s superannuation scheme at rates determined by an actuary and are deemed to be sufficient to meet the current cost to the Government. DSS accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June 2015 represents outstanding contributions for the financial year.

1.10 Makegood Provision

The fair value of makegood for leasehold improvements is based on estimated costs per square metre on a site by site basis and is included as a provision for makegood. The value of the provision for each property will depend on the rate of makegood obligation applied to the premises. DSS property management advisors have determined that not all properties have a makegood obligation.

1.11 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance

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lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

DSS does not have any finance leases.

1.12 Borrowing Costs

All borrowing costs are expensed as incurred.

1.13 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

(a) cash on hand;

(b) demand deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;

(c) cash held by salary packaging services; and

(d) cash held on behalf of DSS.

1.14 Financial Assets

DSS classifies its financial assets in the following categories:

(a) available for sale financial assets; and

(b) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through the statement of comprehensive income.

Available for Sale Financial Assets

Available for sale financial assets are non derivatives that are either designated in this category or not classified in any of the other categories.

Available for sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised directly in the reserves (equity) with the exception of impairment losses. Interest is calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognised directly in the statement of comprehensive income. Where the asset is disposed of or is determined to be impaired, part

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(or all) of the cumulative gain or loss previously recognised in the reserve is included in surplus and deficit for the period.

Where a reliable fair value cannot be established for unlisted investments in equity instruments, these instruments are valued at cost.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income.

Financial assets held at cost - if there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

1.15 Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through the statement of comprehensive income’ or ‘other financial liabilities’. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through the Statement of Comprehensive Income

Financial liabilities through the statement of comprehensive income are initially measured at fair value. Subsequent fair value adjustments including any net gain or loss recognised in the statement of comprehensive income and incorporates any interest paid on the financial liability.

Other Financial Liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs. These financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (irrespective of whether payment has occurred).

1.16 Contingent Liabilities and Contingent Assets

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Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes of disclosure. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.17 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.18 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases of less than $2,000, which are expensed in the financial year of acquisition (other than where these assets form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to makegood provisions in property accommodation leases reported by DSS where there exists an obligation to restore the property to its original condition. These costs are included in the value of DSS leasehold improvements with a corresponding provision for the makegood recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

Asset class Fair value measurement:Land Market selling priceLeasehold improvements Depreciated replacement costProperty, plant and equipment Market selling price

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Assets are subject to a formal valuation every three years. Formal valuations are carried out by an independent qualified valuer. A complete revaluation was conducted in the 2013 financial year by the former Australian Valuation Office (AVO). In a financial year where a formal valuation is not conducted, the value of assets is reviewed and adjustments made to

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reflect fair value, where necessary. A desktop revaluation review was conducted in 2015 by an independent valuer, Australian Valuation Solutions (AVS), to confirm the value of property, plant and equipment assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable 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 rates applying to each class of depreciable asset are based on the following useful lives:

2015 2014

Leasehold improvements Lesser of 10 years or lease term

Lesser of 10 years or lease term

Plant and equipment 3 to 10 years 3 to 10 yearsArtwork 1 to 50 years 1 to 50 years

Impairment

All assets were assessed for impairment as at 30 June 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if DSS were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

1.19 Intangibles

DSS’ intangibles comprise externally acquired software and internally developed software for internal use. Intangibles are capitalised when their gross values are greater than $50,000 for externally acquired software and $200,000 for internally developed software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of DSS software are between 2 to 8 years (2014: 2 to 8 years).

All software assets were assessed for an indication of impairment as at 30 June 2015.

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1.20 Taxation

DSS is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST except:

(a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

(b) for receivables and payables.

1.21 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered Cash Transfers to and from the Official Public Account

Revenue collected by DSS for use by the Government rather than DSS is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by DSS on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to ordinary activities performed by DSS on behalf of the Australian Government. As such administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Personal Benefit Recoveries

Personal benefits recoveries relate to recovery of personal benefit payments and are recognised on an accrual basis.

NZ Reciprocal Agreement

DSS invoices the New Zealand Government quarterly for benefits received by New Zealanders in Australia in accordance with the New Zealand Government International Agreement. This agreement relates to Social Security payments.

Payments to corporate Commonwealth entities

Payments to corporate Commonwealth entities from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio agency. The appropriation to DSS is disclosed in Table A of the appropriations note (please refer to Note 29).

Loans and Receivables

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Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment derecognition and amortisation are recognised through the administered schedule of comprehensive income. Where loans are subject to concessional treatment, they are calculated using the discounted cash flow method. The discount and unwinding components of the concessional loans are recognised through the administered schedule of comprehensive income.

Administered Investments

Administered investments in subsidiaries, joint ventures and associates are not consolidated because their consolidation is relevant only at the whole of government level.

Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2015. Fair value has been taken to be the Australian Government's proportional interest in the net assets of the entities as at the end of the reporting period.

Grants and Subsidies

DSS administers a number of grant and subsidy schemes on behalf of the Government. These schemes include grants to State, Territory and Local Governments and a range of grants to non-government, not-for-profit organisations and other recipients for activities associated with community development and supporting individuals. Subsidies mainly relate to Aged Care programmes.

Grant and subsidy liabilities are recognised to the extent that the services required to be performed by the grantee or Aged Care programme providers have been performed or the eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants and subsidy payments, but services have not yet been performed or criteria satisfied.

Personal Benefits

DSS administers a number of personal benefits payments on behalf of the Government that provide income support, family assistance and other entitlements to individuals. These include, but are not limited to:

Age Pension;

Family Tax Benefit;

Disability Support Pension;

Assistance to the Unemployed;

Carer Payment;

Assistance to Families with Children;

Student Assistance;

Carers Allowance (Adult and Child); and

Parental Leave Pay.

Payments to recipients and customers are determined in accordance with provisions under social security law and other legislation. Payments made under social security law are assessed, determined and paid by DHS under delegation from DSS.

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DSS receives and reports appropriations for payments made by DHS on behalf of DSS.

The Social Security (Administration) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 impose an obligation on recipients and customers to disclose to DHS information about financial and personal circumstances that affect entitlement to payment. This is a necessary part of DHS's administration, which acknowledges that, at the time certain information is required, only the recipient or customer is in a position to provide that information.

Unreported changes in circumstances can lead to incorrect payment, even if no deliberate fraud is intended. However, risks associated with relying on voluntary disclosure by recipients and customers are mitigated by a comprehensive portfolio risk management plan, underpinned by compliance strategies, which have been built up over many years. The compliance framework has been designed to meet the requirements of social security legislation.

The compliance framework does not rely solely on information provided by recipients and customers to determine their entitlement. A comprehensive risk management strategy minimises the potential for incorrect payment by subjecting recipients and customers to a variety of review processes. If debts are identified, DHS seeks recovery in a lump sum or by instalments. While the risk management strategy is principally directed at minimising debts, the detection of underpayments will also result in an adjustment to their level of entitlement.

DSS implemented a more sophisticated results-orientated approach to child care programme compliance in the 2015 financial year. Compliance operations continued to be strengthened which included data interrogation and analysis capacity, to assist in leveraging resources available in the state and territory network to create a virtual task force and prioritising DSS’ compliance effort to high value compliance work based on risk categories. This has led to an increasing imposition of penalties and sanctions, where justified. In addition, processes for approval of child care services are being tightened to reduce the risk of further non-compliance by approved services.

Payments for Student Assistance are determined in accordance with the Student Assistance Act 1973.

Payments to customers under the Parental Leave Pay are determined in accordance with the Paid Parental Leave Act 2010. Payments can be made directly to the customers or indirectly through the employers.

1.22 Basis of Consolidation

The consolidated statements include core operations of DSS and the Social Security Appeals Tribunal (SSAT). These financial statements are prepared for the same reporting period, using consistent accounting policies.

1.23 Other Disclosure

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programmes. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

Section 83 of the Constitution provides that no amount may be paid out of from the Consolidated Revenue Fund (CRF) except for an appropriation made by law. DSS has

162

identified 12 appropriations that involve statutory conditions for payments made during the 2015 financial year. These payments comprise seven special appropriations, four special accounts and one annual appropriation which includes two programmes with statutory conditions for payments.

DSS continues to monitor its level of compliance with section 83 of the Constitution across all legislation for which it is administratively responsible.

It is impractical for the department to completely eliminate the potential for payment breaches and non-compliance of section 83. In the majority of cases, DSS relies upon customers and/or service provider information to ensure entitlements are accurately calculated and paid. Information and estimates provided by customers or service providers are not always completely accurate or are subject to changing circumstances which can result in a breach of section 83. Actual and potential DSS section 83 breaches, as disclosed in Note 31, represent a very small proportion of total payments, by value and also by volume.

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Notes to and forming part of the financial statements

Note 2: Events After the Reporting Period

Tribunals amalgamation

The Social Security Appeals Tribunal (SSAT), operating within the Social Services portfolio, was established as a statutory agency under the Social Security (Administration) Act 1999. Funding for SSAT’s operational costs and capital expenditure was provided by DSS to 30 June 2015.

The Tribunals Amalgamation Bill 2015 was passed by the Parliament on 13 May 2015. The Bill will amalgamate the functions of the former SSAT with the Administrative Appeals Tribunal and the Migration Review Tribunal-Refugee Review Tribunal to create a new, amalgamated Administrative Appeals Tribunal (AAT) from 1 July 2015. The Bill provides that the functions of the former SSAT will be dealt with by a specialist division within the new AAT. The Bill largely preserves current review processes in each tribunal.

The Attorney-General will have portfolio responsibility for the amalgamated tribunal. The amalgamated tribunal will be subject to the PGPA Act.

Note 3: Net Cash Appropriation Arrangements

Net Cash Appropriation Arrangements2015$'000

2014$'000

Surplus attributable to DSS 770 413

Changes in asset revaluation reserve (1,389) 391

Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations1 (619) 804

Plus: depreciation/amortisation expenses previously funded through revenue appropriation (63,194) (57,212)

Total comprehensive loss attributable to the Australian Government (63,813) (56,408)

1. From 2011, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. DSS now receives a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

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Note 4: Expenses

Note 4A: Employee Benefits2015$'000

2014$'000

Wages and salaries 297,044 312,981Superannuation:

Defined contribution plans 22,133 23,665Defined benefit plans 38,960 39,275

Leave and other entitlements 21,978 31,158Separation and redundancies 11,316 18,557Total employee benefits 391,431 425,636

Note 4B: SuppliersGoods and services supplied or renderedConsultants and contractors 106,640 60,453IT and communication 34,398 27,842Travel and accommodation 7,553 9,742Member sitting fees 8,790 8,243Motor vehicle expenses 1,240 2,557Building expenses (excluding operating lease rentals) 14,949 16,648Training 5,107 3,490Recruitment 761 402Other 13,723 12,323Total goods and services supplied or rendered 193,161 141,700

Goods supplied in connection with:Related parties 434 -External parties 7,062 7,627

Total goods supplied 7,496 7,627

Services rendered in connection with:Related parties 29,778 5,502External parties 155,887 128,571

Total services rendered 185,665 134,073Total goods and services supplied or rendered 193,161 141,700Services rendered in connection with:

Related parties 29,778 5,502External parties 155,887 128,571

Total services rendered 185,665 134,073Total goods and services supplied or rendered 193,161 141,700Other suppliersOperating lease rentals in connection with:Related parties:

Sublease 1,412 -External parties:

Minimum lease payments 48,815 42,891Contingent rentals 439 339

Workers compensation expenses 9,067 8,127Total other suppliers 59,733 51,357Total suppliers 252,894 193,057

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Note 4C: Losses from Asset Sales2015$'000

2014$'000

Property, plant and equipment:Proceeds from sale 29 9Carrying value of assets sold (93) (37)Total losses from asset sales 64 28

Note 4D: Payments for Service Delivery 2015$'000

2014$'000

Payments to Australian Tax Office for service delivery 602 625Payments to Department of Veterans' Affairs for service delivery 161 121Total payments for service delivery 763 746

Note 4E: Other Expenses 2015$'000

2014$'000

Payments to National Disability Insurance Agency - 110,448Change in estimate of makegood provision 608 -Non-speculative foreign exchange losses - 1Total other expenses 608 110,449

Note 5: Own-Source IncomeOwn-Source Revenue

Note 5A: Rendering of Services 2015$'000

2014$'000

Rendering of services in connection with:Related parties 49,513 49,588External parties 5,828 9,771

Total rendering of services 55,341 59,359

Gains

Note 5B: Gains from Sale of Assets 2015$'000

2014$'000

Land and buildings:Proceeds from sale - 1,255Carrying value of assets sold - (1,063)Property, plant and equipment:Proceeds from sale 226 54Carrying value of assets sold (11) (2)Net gain from sale of assets 215 244

Note 5C: Other Gains 2015$'000

2014$'000

Change in estimate for makegood provision - 15Assets recognised 443 6Resources received free of charge:Remuneration of auditors 1,200 1,200Other - 37,268Total other gains 1,643 38,489

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Note 6: Fair Value Measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of fair value are defined below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that DSS can access at measurement date;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Unobservable inputs for the asset or liability.

Note 6A: Fair Value Measurements, Valuations Techniques and Inputs Used 1

Fair value measurements at the end of the reporting period

For Levels 2 and 3 fair value measurements

2015$'000

2014$'000

Category(Level 1, 2 or 3)4

Valuation technique(s)2 Inputs used

Non-financial assets3

Leasehold improvements

30,476 40,281 3 Depreciated Replacement

Cost

Replacement Cost New(price per

square metre)

Consumed economic

benefit / Obsolescence

of assetProperty, plant and equipment

11,047 13,799 2 Market Approach

Adjusted market transactions

Property, plant and equipment

767 1,096 3 Market Approach

Adjusted market transactions

Property, plant and equipment

12,920 12,411 3 Depreciated Replacement

Cost

Replacement Cost New

Consumed economic

benefit / Obsolescence

of asset

Total non-financial assets

55,210 67,587

Total fair value measurements of assets

55,210 67,587

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Note 6: Fair Value Measurements (continued)

1.DSS did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2015.

2. There have been changes to the valuation techniques for assets in the property, plant and equipment class. In instances where sufficient observable inputs, such as market transactions of similar assets, were (not) identified in this financial year, the valuation technique was changed from a Depreciated Replacement Cost (DRC) (Market) approach to a Market (DRC) approach.

3. Fair value measurements - highest and best use differs from current use for non-financial assets (NFAs).

DSS' assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all NFAs is considered their highest and best use.

4. Recurring and non-recurring Level 3 fair value measurements - valuation processes

DSS tests the procedures of the valuation model as an asset materiality review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. DSS engaged Australian Valuation Solutions (AVS) to undertake a materiality review and confirm that the models developed comply with AASB 13 – Fair Value Measurement. DSS have undertaken early adoption of reduced disclosures for AASB 13. The amendments to AASB 13 are made by AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities.

Significant Level 3 inputs utilised by DSS are derived and evaluated as follows:

- Plant and equipment - Adjusted Market Transactions.

- The significant unobservable inputs used in the fair value measurement of DSS' Library Collection relates to the market demand for the asset. A significant increase (decrease) in this input would result in a significantly higher (lower) fair value measurement.

- Leasehold improvements, property, plant and equipment - Consumed economic benefit / Obsolescence of asset.

- Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost DRC approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit / asset obsolescence (accumulated depreciation). Consumed economic benefit / asset obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration.

168

- The future economic benefits of the department's leasehold improvements and property, plant and equipment assets are not primarily dependent on their ability to generate cash flows. The department has not disclosed quantitative information about the significant unobservable inputs for the level 3 measurements in these classes.

Note 6: Fair Value Measurements (continued)

Note 6B: Reconciliation for Recurring Level 3 Fair Value Measurements

Recurring Level 3 fair value measurements - reconciliation for assets

Non-financial assets


Property, plant and equipment Total

2015$'000

2014$'000

2015$'000

2014$'000

2015$'000

2014$'000

As at 1 July 40,281 63,081 13,507 11,843 53,788 74,924

Total losses recognised in net cost of services1

(16,853)

(15,900) (5,195) (2,390)

(22,048)

(18,290)

Total gains recognised in other comprehensive income2 (1,389) 391 - - (1,389) 391

Purchases 1,885 1,375 5,070 4,054 6,955 5,429

Restructure 2,583 (9,979) - - 2,583 (9,979)

Other movements 3,969 1,313 - - 3,969 1,313

Transfers into Level 33 - - 305 - 305 -

Transfers out of Level 34 - - - - - -

Total as at 30 June 30,476 40,281 13,687 13,507 44,163 53,788

Changes in unrealised gains/(losses) recognised in net cost of services for assets held at the end of the reporting period5

- - - - - -

1.These losses are presented in the statement of comprehensive income under Write-down and impairment of assets and depreciation.

2. These gains/(losses) are presented in the statement of comprehensive income under changes in asset revelation reserve.

3. There have been transfers of property, plant and equipment asset fair value measurements into level 3 during the year due to changes in the valuation technique from a market approach to DRC.

4.There have been no transfers out of level 3 during the year.

5.These are no unrealised gains/(losses) present in the statement of comprehensive income under DSS' policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

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Note 7: Financial Assets

Note 7A: Trade and Other Receivables

2015$'000

2014$'000

Goods and services receivables in connection with:

Related parties 4,603 15,263

External parties 22 31

Total goods and services receivables 4,625 15,294

Appropriations receivables:

For existing programmes 104,991 129,173

For departmental capital budget 1,114 4,449

For equity injection 41,204 41,110

Total appropriations receivables 147,309 174,732

Other receivables:

GST receivable from the Australian Taxation Office 3,435 1,841

Other 9,002 18,264

Total other receivables 12,437 20,105

Total trade and other receivables (gross) 164,371 210,131

Trade and other receivables (net) expected to be recovered:

No more than 12 months 164,371 210,131

Total trade and other receivables (net) 164,371 210,131

Trade and other receivables (gross) aged as follows:

Not overdue 159,748 208,521

Overdue by:

0 to 30 days 4,422 1,227

31 to 60 days 201 314

61 to 90 days - 1

More than 90 days - 68

Total trade and other receivables (gross) 164,371 210,131

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Note 8: Non-Financial Assets

Note 8A: Leasehold Improvements2015$'000

2014$'000

Leasehold improvements:

Fair value 67,201 60,838

Accumulated amortisation (36,725) (20,557)

Assets under construction 571 721

Total leasehold improvements 31,047 41,002

During 2015, leasehold improvements with a carrying amount of $0.141 million (2014: Nil) were identified as impaired and written-down.

Note 8B: Property, Plant and Equipment2015$'000

2014$'000

Other property, plant and equipment:

Fair value 47,025 42,245

Accumulated depreciation (22,291) (14,669)

Total other property, plant and equipment 24,734 27,576

Total property, plant and equipment 24,734 27,576

Less: Assets held for sale (59) (287)

Total property, plant and equipment 24,675 27,289

During 2015, property, plant and equipment with a carrying amount of $0.409 million (2014: $0.022 million) were identified as impaired and written-down.

A net book value of $0.059 million (2014: $0.287 million) for property, plant and equipment is expected to be sold or disposed of within the next 12 months. These sales will be arranged through an independent auction house.

During 2015, property plant and equipment with a carrying amount of $0.104 million (2014: $0.063 million) were sold via independent contract auction houses Pickles and Allbids.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1.18. A complete revaluation was conducted in the 2013 financial year by an independent valuer, AVO. A materiality review was conducted in 2014 and 2015 by an independent qualified valuer Australian Valuation Solutions (AVS), confirming there is no material difference between carrying amounts and asset fair values at as 30 June 2015.

A revaluation increment of $1.389 million (2014: $0.391 million) for leasehold improvements relating to the makegood and nil (2014: Nil) for the revaluation of property, plant and equipment was credited to the asset revaluation reserve and included in the equity section of the statement of financial position.

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Note 8: Non-Financial Assets (continued)

Note 8C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment 2015


$’000

Other property, plant

& equipment$’000

Total$’000

As at 1 July 2014

Gross book value 61,559 42,245 103,804

Accumulated depreciation, amortisation and impairment (20,557) (14,669) (35,226)

Net book value as at 1 July 2014 41,002 27,576 68,578

Additions:

By purchase 2,172 7,859 10,031

By recognition 437 442 879

Restructuring activities 2,583 25 2,608

Revaluations recognised in net cost of services (1,389) - (1,389)

Impairments recognised in net cost of services (141) (409) (550)

Depreciation and amortisation (15,222) (10,499) (25,721)

Other movements 1,605 (156) 1,449

Disposals:

Disposals with proceeds - (104) (104)

Net book value as at 30 June 2015 31,047 24,734 55,781

Net book value as at 30 June 2015 represented by:

Gross book value 67,772 47,025 114,797

Accumulated depreciation, amortisation and impairment (36,725) (22,291) (59,016)


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Note 8C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment 2014

Land$’000

Buildings

$’000

Leasehold improvem

ents$’000

Total land,buildings &

leasehold improvement

s$’000

Otherproperty,

plant &equipmen

t$’000

Total$’000

As at 1 July 2013

Gross book value 22,825 72,765 76,957 172,547 26,829 199,376

Accumulated depreciation, amortisation and impairment

- - - - - -

Net book value as at 1 July 2013 22,825 72,765 76,957 172,547 26,829 199,376

Additions:

By purchase - 71 660 731 13,152 13,883

By recognition - - - - 6 6

Restructuring activities (22,465)

(67,811)

(19,046) (109,322) (2,399) (111,721)Revaluations and impairments

recognised in other comprehensive income

- - - - - -

Revaluations recognised in net cost of services

- - 391 391 - 391

Impairments recognised in net cost of services

- - - - (22) (22)

Depreciation and amortisation - (6,337) (15,900) (22,237) (9,736) (31,973)Other movements - 2,015 (2,060) (45) (215) (260)

Disposals:

Disposals with proceeds (360) (703) - (1,063) (39) (1,102)

Net book value as at 30 June 2014

- - 41,002 41,002 27,576 68,578


Gross book value - - 61,559 61,559 42,245 103,804

Accumulated depreciation, amortisation and impairment

- - (20,557) (20,557) (14,669)(35,226

)

Net book value as at 30 June 2014

- - 41,002 41,002 27,576 68,578

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Note 8D: Intangibles2015$'000

2014$'000

Computer software:

Internally developed - in progress 6,861 28,489

Internally developed - in use 172,630 140,832

Purchased 44,189 32,819

Accumulated amortisation (110,061) (90,486)

Total computer software 113,619 111,654

Total intangibles 113,619 111,654

During 2015, intangibles with a carrying amount of $14.192 million (2014: $2.906 million) were identified as impaired and written-down.

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 8E: Reconciliation of the Opening and Closing Balances of Intangibles 2015

Computer software

internally developed

$’000

Computer software

purchased$’000

Total$’000

As at 1 July 2014

Gross book value 169,320 32,820 202,140

Accumulated amortisation and impairment (80,615) (9,871) (90,486)


Additions:

By purchase or internally developed 31,404 13,683 45,087

Restructuring 8,557 - 8,557

Impairments recognised in net cost of services (14,148) (44) (14,192)

Amortisation (30,463) (7,010) (37,473)

Other movements - (14) (14)



Gross book value 179,491 44,189 223,680



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Note 8E: Reconciliation of the Opening and Closing Balances of Intangibles 2014

Computer software internally

developed$’000

Computer software

purchased$’000

Total$’000

As at 1 July 2013

Gross book value 151,209 19,286 170,495



Additions:

By purchase or internally developed 20,347 14,128 34,475

Restructuring 34,520 (244) 34,276

Impairments recognised in net cost of services (2,868) (38) (2,906)

Transfers - (247) (247)

Amortisation (21,130) (4,109) (25,239)



Gross book value 169,320 32,820 202,140



Note 8F: Other Non-Financial Assets2015$'000

2014$'000

Prepayments 18,610 14,963

Total other non-financial assets 18,610 14,963

Total other non-financial assets expected to be recovered:


More than 12 months 4,496 7,839

Total other non-financial assets 18,610 14,963

No indicators of impairment were found for other non-financial assets.

175

Note 9: Payables

Note 9A: Suppliers2015$'000

2014$'000

Trade creditors and accruals 34,021 37,850

Operating lease rentals 164 49

Total suppliers payables 34,185 37,899

Suppliers in connection with:


External parties 26,199 31,838

Total suppliers 34,185 37,899

All supplier payables are expected to be settled within 12 months. Settlement was usually made within 30 days.

Note 9B: Other Payables2015$'000

2014$'000

Salaries and wages 10,341 9,565

Superannuation 2,375 1,750

Separations and redundancies 1,687 3,535

Lease incentive 7,173 8,784

Operating leases straight-lining 7,426 6,952

Other 8,934 32,407

Total other payables 37,936 62,993

Other payables expected to be settled:



Total other payables 37,936 62,993

176

Note 10: Provisions

Note 10A: Employee Provisions2015$'000

2014$'000

Leave 118,507 114,365

Separations and redundancies 369 4,181

Total employee provisions 118,876 118,546

Employee provisions expected to be settled:



Total employee provisions 118,876 118,546

Note 10B: Other Provisions2015$'000

2014$'000

Provision for restoration obligations expected to be settled:

No more than 12 months 744 779


Total other provisions 6,504 3,963

Provision for restoration

$’000Total$’000

Carrying amount as at 1 July 2014 3,963 3,963

Additional provisions made 437 437

Amounts used (557) (557)

Change in estimate 2,561 2,561

Unwinding of discount or change in discount rate 100 100

Closing balance as at 2015 6,504 6,504

DSS currently has 24 agreements for the leasing of premises which have provisions requiring restoration of premises to their original condition at the conclusion of the lease. DSS has made a provision to reflect the present value of this obligation.

177

Note 11: Restructuring

Note 11A: Departmental Restructuring

2015

Early Childhood and Education

Care Department of Education and

Training1

$'000

2015

Aged Care Quality Review

Australian Aged Care Quality

Agency2

$'000

2014

Total3

$'000

FUNCTIONS ASSUMEDAssets recognised

Appropriation receivable - - 37,734Receivables 13,085 - 15,742Leasehold improvements 2,583 - 388Property, plant and equipment 25 - 9,314Intangibles 8,557 - 841Prepayments 260 - 36,373

Total assets recognised 24,510 - 100,392Liabilities recognised

Suppliers (4,073) - (116)Other payables - - (8,627)Employee provisions (13,416) - (49,843)Other provisions - - (1,234)

Total liabilities recognised (17,489) - (59,820)Net assets assumed4,6 7,021 - 40,572Income

Recognised by the receiving entity 114 - 23,853Recognised by the losing entity 464 - -

Total income assumed 578 - 23,853Expenses

Recognised by the receiving entity (13,941) - (153,699)Recognised by the losing entity (32,313) - (101,853)

Total expenses assumed (46,254) - (255,552)FUNCTIONS RELINQUISHEDAssets relinquished

Appropriation receivable - - (1,228)Receivables - Operating - - (28,554)Receivables - (855) (21)Land and buildings - - (118,636)Property, plant and equipment - - (3,240)Intangibles - - (2,097)

Total assets relinquished - (855) (153,776)Liabilities relinquished

Suppliers - - 119Other payables - - 8,383Employee provisions - 861 32,243Other provisions - - 793

Total liabilities relinquished - 861 41,538

178

2015

Early Childhood and Education

Care Department of Education and

Training1

$'000

2015

Aged Care Quality Review

Australian Aged Care Quality

Agency2

$'000

2014

Total3

$'000

Net (assets)/liabilities relinquished5 - 6 (112,238)

179

Note 11A: Departmental Restructuring (continued)

1. The Early Childhood Education and Care function was assumed from the former Department of Education during the 2015 financial year as a result of the AAO issued on 23 December 2014.2. The Aged Care Quality Review function was relinquished by the Department to the Australian Aged Care Quality Agency (the Quality Agency) during the 2015 financial year, as a result of the Agency becoming responsible for quality review of Aged Care services in the community from 1 July 2014.

3. The 2014 comparative is a combination of:

The National Disability Insurance Scheme programme was relinquished by the Department to the National Disability Insurance Agency (NDIA) during the 2014 financial year, as a result of the establishment of the NDIA as a Statutory Authority under the Commonwealth Authorities and Companies Act 1997 on 29 March 2013. The NDIA became a financially separate agency on 1 July 2013.

The function for Women's Policy and the programme was relinquished to the Department of the Prime Minister and Cabinet (PM&C) during the 2014 financial year as a result of the AAO issued on 18 September 2013. The receivable is related to employee funding of $0.460 million due to PM&C from DSS as part of the MoG changes during 2014.

The Indigenous Affairs function including property assets was relinquished to PM&C during the 2014 financial year as a result of the AAO issued on 18 September 2013. The receivable is related to employee funding of $28.094 million due to PM&C from DSS as part of the MoG changes during 2014.

The National Compact, Philanthropy and Volunteering function was assumed from PM&C during the 2014 financial year as a result of the AAO issued on 18 September 2013.

The Student Support Services function was assumed from the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) during the 2014 financial year as a result of the AAO issued on 18 September 2013.

The Income Support Policies for Students and Apprentices function was assumed from the former Department of Employment, Education and Workplace Relations (DEEWR) during the 2014 financial year as a result of the AAO issued on 18 September 2013.

The Aged Care and Population Ageing function was assumed from the former Department of Health and Ageing (DoHA) during the 2014 financial year as a result of the AAO issued on 18 September 2013. The receivable is related to capital funding of $15.742 million due to DSS from the Department of Health as part of the MoG changes during 2014.

The Settlement Services for Migrants and Refugees function was assumed from the former Department of Immigration and Citizenship (DIAC) during the 2014 financial year as a result of AAO issued on 18 September 2013.

4. The net assets assumed from all entities were $7.021 million (2014: $40.572 million).

180

5. The net liabilities relinquished to all entities were $0.006 million (2014: net assets relinquished of $112.238 million).6. In respect of functions assumed, the net book values of assets and liabilities (with the exception of leave liability provision amounts) were transferred to the Department for no consideration.

181

Note 11: Restructuring (continued)

Note 11B: Administered Restructuring

2015

Early Childhood and Education Care Department of Education and Training1

$'000

2014

Total2

$'000

FUNCTIONS ASSUMEDAssets recognised

Cash and cash equivalents 400 -Receivables 354,553 1,023,642Advances and loans 609 774,889Subsidies Receivable - 21,250Other investments - 14,845Inventories - 623Other non-financial assets - 61,980

Total assets recognised 355,562 1,897,229Liabilities recognised

Suppliers (3,797) (9,428)Personal benefits payable (193,101) (372,180)Subsidies payable - (36,544)Grants payable (22,429) (6,750)Provisions for personal benefits (703,289) -

Total liabilities recognised (922,616) (424,902)Net assets/(liabilities) assumed3,4,5 (567,054) 1,472,327Income

Recognised by the receiving entity 3,964 33,148Recognised by the losing entity 3,727 4,201

Total income assumed 7,691 37,349Expenses

Recognised by the receiving entity (3,358,408) (24,320,065)Recognised by the losing entity (3,798,578) (8,075,965)

Total expenses assumed (7,156,986) (32,396,030)FUNCTIONS RELINQUISHEDAssets relinquished

Cash and cash equivalents - (7,248)Appropriation receivable - (6,295)Receivables - (1,667)Investments in Commonwealth entities and other

interests - (1,696,285)

Other investments - (2,421,330)Other non-financial assets - (8,859)

Total assets relinquished - (4,141,684)Liabilities relinquished

Suppliers - 1,716Personal benefits - 7,125Grants - 3,502

Total liabilities relinquished - 12,343Net (assets)/liabilities relinquished - (4,129,341)

182

Note 11: Restructuring (continued)

Note 11B: Administered Restructuring (continued)

1. The Early Childhood and Education Care function was assumed from the former Department of Education as a result of the AAO issued on 23 December 2014.

2. The 2014 comparative is a combination of:

The National Disability Insurance Scheme programme was relinquished by the Department to the National Disability Insurance Agency (NDIA) during the 2014 financial year, as a result of the establishment of the NDIA as a Statutory Authority under the Commonwealth Authorities and Companies Act 1997 on 29 March 2013. The NDIA became a financially separate agency on 1 July 2013.

The Indigenous Affairs function was relinquished to PM&C on 14 February 2013 as a result of the AAO issued on 18 September 2013. Other special account balances of $23.726 million that did not form part of the Department's Administered Balance Sheet, and excluded from this note, were also transferred to PM&C. Please refer to Note 30A.

The National Compact, Philanthropy and Volunteering function was assumed from PM&C on 1 November 2013 as a result of the AAO issued on 18 September 2013.

The Student Support Services function was assumed from the former DIICCSRTE on 1 November 2013 as a result of the AAO issued on 18 September 2013.

The Income Support Policies for Students and Apprentices function was assumed from the former DEEWR during the 2014 financial year as a result of the AAO issued on 18 September 2013.

The Income Support Policies for Students and Apprentices function was assumed from the former DEEWR during the 2014 financial year as a result of the AAO issued on 18 September 2013.

The Aged Care and Population Ageing function was assumed from the former DoHA during the 2014 financial year as a result of the AAO issued on 18 September 2013.

The Settlement Services for Migrants and Refugees function was assumed from the former DIAC on 1 November 2013 as a result of the AAO issued on 18 September 2013.3. The net liabilities assumed from all entities were $567.054 million.4. In 2014, the net assets assumed from all entities were $1,472.327 million and net assets relinquished to all entities were $4,129.341 million.5. In respect of functions assumed, the net book values of assets and liabilities were transferred to the Department for no consideration.

183

Note 12: Cash Flow Reconciliation

Note 12: Cash Flow Reconciliation2015$'000

2014$'000

Reconciliation of cash and cash equivalents as perStatement of Financial Position to Cash Flow Statement

Cash and cash equivalents as per:Cash flow statement 8,589 3,223Statement of financial position 8,589 3,223

Discrepancy - -

Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (660,914) (687,745)

Revenue from Government 598,490 630,946

Adjustments for non-cash items

Depreciation / amortisation 63,194 57,212Net write down of non-financial assets 14,742 2,928Gain on disposal of assets (215) (244)Loss on disposal of assets 64 28Assets recognised (443) (6)Change in estimate for makegood provision 608 (15)Restructuring (operating) (4,578) (9,962)Receivables recognised in investing (18,588) 61,301

Movements in assets and liabilities

Assets

(Increase) / decrease in net receivables 45,760 (102,096)(Increase) in prepayments (3,647) (4,810)

Liabilities

Increase in employee provisions 330 19,071Increase / (decrease) in supplier payables (3,714) 1,012Increase / (decrease) in other payables (25,057) 28,744Increase in other provisions 2,541 368

Net cash from / (used by) operating activities 8,573 (3,268)

184

Note 13: Contingent Assets and Liabilities

Claims fordamages or costs

Claims fordamages or

costs

Total Total

2015$'000

2014$'000

2015$'000

2014$'000

Contingent liabilitiesBalance from previous period - 75 - 75

New contingent assets recognised - - - -

Re-measurement - (75) - (75)

Total contingent liabilities - - - -

Net contingent (liabilities) - - - -

Quantifiable Contingencies

There are no contingent assets or liabilities in respect of claims for damages/costs (2014: Nil).

Unquantifiable Contingencies

As at 30 June 2015, DSS had no unquantifiable contingencies (2014: Nil).

Significant Remote Contingencies

As at 30 June 2015, DSS had no significant remote contingencies (2014: Nil)

185

Note 14: Senior Management Personnel Remuneration

Note 14: Senior Management Personnel Remuneration2015

$2014

$

Short-term employee benefits:

Salary 21,281,578 20,603,342

Performance bonus - 127,439

Other1 2,721,623 2,728,804

Total short-term employee benefits 24,003,201 23,459,585

Post-employment benefits:

Superannuation 3,954,832 3,887,402

Total post-employment benefits 3,954,832 3,887,402

Other long-term employee benefits:

Annual leave accrued 190,497 188,228

Long-service leave accrued 475,808 520,580

Total other long-term employee benefits 666,305 708,808

Termination benefits 738,154 497,484

Total senior management personnel remuneration expenses2,3 29,362,492 28,553,279

1. ‘Other’ includes fringe benefits and allowances.2. There were 136 senior management personnel in 2015, comprising 93 full year senior management personnel, 31 part-year senior management personnel and 12 officers on long-term acting arrangements. Officers on long-term acting arrangements are only included where the total acting period exceeds 12 months in total, but not necessarily for the whole of the reporting period.3. There were 152 senior management personnel in 2014, comprising 62 full year senior management personnel, 83 part-year senior management personnel and seven officers on long-term acting arrangements. The high number of part-year senior management personnel is primarily due to machinery of government changes, resulting in 33 senior management personnel transferring out of the department and 37 senior management personnel transferring into the department. Officers on long-term acting arrangements are only included where the total acting period exceeds 12 months in total, but not necessarily for the whole of the reporting period.

186

Note 15: Financial instruments

Note 15A: Credit Risk

DSS is exposed to minimal credit risk as loans and receivables are cash, trade receivables and other receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables, that is $4.625 million in 2015 (2014: $15.294 million).

DSS is exposed to minimal credit risk as loans and receivables are cash, trade receivables and other receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables, that is $4.625 million in 2015 (2014: $15.294 million).

DSS has assessed the risk of the default on payment and no allocation has been made in 2015 (2014: Nil) to an impairment allowance account for trade receivables. DSS manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, DSS has policies and procedures that guide employees' application of debt recovery techniques.

DSS holds no collateral to mitigate against credit risk.

Maximum exposure to credit risk (excluding any collateral or credit enhancements).2015

$’0002014$’000

Financial assets carried at amount not best representing maximum exposure to credit risk

Cash and cash equivalents 8,589 3,223

Trade and other receivables 4,625 15,294

Total financial assets carried at amount not best representing maximum exposure to risk 13,214 18,517

Credit quality of financial instruments not past due or individually determined as impaired

Not past due nor

impaired

Not past due nor impaired

2014$'000

Past due or

impaired

Past due or

impaired

Receivables for goods and services 2 13,684 4,623 1,610

Total 2 13,684 4,623 1,610

Ageing of financial assets that were past due but not impaired for 2015

0 to 30 days$'000

31 to 60 days$'000

61 to 90 days$'000

90+ Days$'000

Total $'000

Receivables for goods and services 4,422 201 - - 4,623

Total 4,422 201 - - 4,623


0 to 30 days$'000

31 to 60 days$'000

61 to 90 days$'000

90+ Days$'000

Total $'000

Receivables for goods and services 1,227 314 1 68 1,610

Total 1,227 314 1 68 1,610

187

Financial instruments (continued)

Note 15B: Liquidity Risk

DSS’ financial liabilities are payables. The exposure to liquidity risk was based on the notion that DSS will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely as DSS is appropriated funding from the Australian Government and DSS manages its appropriations to ensure it has adequate funds to meet payments as they fall due. In addition, DSS has policies in place to ensure timely payments are made when due and has no past experience of default.

The maturities for financial liabilities of DSS are within one year in both the current and prior financial year.

DSS has no derivative financial liabilities in either the current and prior financial year.

Note 15C: Market Risk

DSS holds both basic financial instruments, available for sale and held-to-maturity investments that do not expose DSS to certain market risks. DSS is not exposed to 'Currency risk', 'Other price risk' or 'Interest rate risk'.

Note 16: Financial Assets Reconciliation

Financial assets2015$'000

2014$'000

Total financial assets as per statement of financial position 172,960 213,354

Less: non-financial instrument components

Appropriation receivable 147,309 174,732


Other 9,002 18,264

Total non-financial instrument components 159,746 194,837

Total financial assets as per financial instruments note 13,214 18,517

188

Note 17: Administered Expenses

Note 17A: Suppliers

2015

$'000

2014

$'000

Goods and services supplied or rendered

Consultants and contractors 90,441 66,614

Conference, training and travel costs 2,893 937

Advertising, legal and marketing costs 3,089 21,933

Settlement services 58,749 42,454

Disability employment services 790,688 194,761

Other 19,784 6,078

Total goods and services supplied or rendered 965,644 332,777

Services rendered in connection with:


External parties 910,358 303,069

Total services rendered 965,644 332,777

Other suppliers

Operating lease rentals in connection with:

External parties:

Minimum lease payments 8 32

Total other suppliers 8 32

Total suppliers 965,652 332,809

Note 17B: Subsidies 2015

$'000

2014

$'000

Subsidies in connection with:

External parties:

Aged Care 10,966,959 7,718,665

Other 82,629 57,786

Total subsidies 11,049,588 7,776,451

189

Note 17: Administered Expenses (continued)

Note 17C: Personal Benefits

2015$'000

2014$'000

Direct:Age Pension 41,363,742 39,391,507Family Tax Benefit 19,752,665 19,476,568Disability Support Pension 16,533,427 16,102,244Assistance to the Unemployed* 10,762,585 7,944,929Assistance to Families with Children1,* 6,351,403 4,314,739Carer Payment 4,547,497 4,170,007Student Assistance* 3,479,577 2,650,675Carer Allowance (Adult and Child) 2,221,836 2,134,029Schoolkids Bonus 1,110,925 1,257,737Parental Leave Pay 635,636 556,117Carer Supplement 551,699 532,731Assistance to the Aged* 444,788 387,913Senior Concession Allowance 284,145 279,311Mobility Allowance* 155,165 120,976Wife Pension (Age) 113,336 122,047Wife Pension (Disability Support Pension) 105,878 118,649Special Benefit 64,604 65,228Single Income Family Supplement 52,701 51,767Utilities Allowance 49,154 20,759Maternity Payments 6,121 339,682Ex-Gratia Payments 2,806 2,640Other 88,708 38,460

Indirect:Assistance to Families with Children1 2,467,063 -Parental Leave Pay 1,295,714 1,135,318Student Assistance* - 5,098

Total personal benefits 112,441,175 101,219,131

1.As a result of the AAO issued 23 December 2014, DSS gained responsibility for the Child Care function from the former Department of Education. Details are disclosed in Note 1.

* As a result of the AAOs issued during the 2014 financial year, the comparative includes a part year effect.

Note 17D: Grants2015$'000

2014$'000

Public sector:Australian Government entities (related parties) 7,514 16,908State and Territory Governments 426,437 243,192Local Governments 115,266 64,788

Private sector:External parties 228,676 114,485Non-profit organisations 2,213,995 1,725,418

Total grants 2,991,888 2,164,791

190

Note 17: Administered Expenses (continued)

Note 17E: Write-Down and Impairment of Assets2015$'000

2014$'000

Impairment of receivables (impairment allowance) 1,921 17,136Impairment of personal benefits receivable 71,382 14,908Other 18,827 122Total write-down and impairment of assets 92,130 32,166

Note 17F: Payments to Corporate Commonwealth Entities2015$'000

2014$'000

Payments to Torres Strait Regional Authority - 16,549Payments to Aboriginal Hostels Limited - 12,791Payments to Indigenous Business Australia - 11,337Payments to Indigenous Land Corporation - 3,221Payments to National Disability Insurance Agency 308,433 8,271Total payments to corporate Commonwealth entities 308,433 52,169

Note 17G: Other Expenses2015$'000

2014$'000

Royalty equivalent payments - 35,574Special accounts expense 225,113 93,987Mining withholding tax - 1,096Payments to National Disability Insurance Agency1 - 79,180Other 132,876 75,601Total other expenses 357,989 285,4381. The 2014 financial year payments relate to appropriation transfers to the NDIA as a CAC Act body.

Note 18: Administered Income

Revenue

Non-Taxation Revenue

Note 18A: Recoveries2015$'000

2014$'000

Personal benefits recoveries 119,708 7,734Other recoveries 118,107 39,009Total recoveries 237,815 46,743

191

Note 19: Administered Fair Value Measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.Note 19A: Fair Value Measurements, Valuation Techniques and Inputs Used

Fair value measurements at the end of the reporting period

For Levels 2 and 3 fair value measurements

2015$'000

2014$'000

Category (Level 1, 2 or 3)

Valuation technique(s)1 Inputs used

Financial assets

Concessional loans - Student Financial Supplement Scheme (SFSS)

531,200 604,200 2 Future repayments discounted using yield curve basis

ATO repayment certificates

Concessional loans - Aged Care Zero Real Interest Loan (ZRIL)

262,149 222,754 2 Market value Weighted average interest rates

Concessional loans - Pension Loan Scheme (PLS)

31,578 30,034 2 Market value Weighted average interest rates

Administered investments 52,049 71,181 3 Net asset of portfolio entities

Latest Management accounts or

unaudited financial statements

Total financial assets 876,976 928,169

Non-financial assets

Land and buildings - 373 2 Market value of similar properties as

determined by an independent valuer

Market selling prices

Total non-financial assets - 373

Total fair value measurements of assets

876,976

928,542

192

Note 19: Administered Fair Value Measurements (continued)

Note 19A: Fair Value Measurements, Valuation Techniques and Inputs Used (continued)

There are administered assets and liabilities not measured at fair value in the administered schedule of assets and liabilities. The carrying amounts of these assets and liabilities are considered to be a reasonable approximation of their fair value.

1. The methods and valuation techniques used for the purpose of measuring fair value of assets and liabilities in the 2015 financial year are unchanged from the previous reporting period.

Changing inputs to the level 3 hierarchy valuations to reasonably possible alternate assumptions would not significantly change amounts recognised in net cost of service or other comprehensive income.

Note 19B: Reconciliation for Recurring Level 3 Fair Value Measurements

Recurring Level 3 fair value measurements - reconciliation for assets

Financial assets

Administered investments

2015$'000

Administered investments

2014$'000

Total

2015$'000

Total

2014$'000

As at 1 July 71,181 1,676,236 71,181 1,676,236

Restructuring - (1,605,055) - (1,605,055)

Transfer out1 (15,226) - (15,226) -

Corporate Commonwealth entity investments (3,906) - (3,906) -

Total as at 30 June 52,049 71,181 52,049 71,181

1. Details of investments in Commonwealth entities and other interests are disclosed in Note 26: Administered Investments.

193

Note 20: Administered Financial Assets

Note 20A: Receivables 2015$'000

2014$'000

Personal benefits:

Recovery of personal benefit payments1 4,019,449 3,049,302

Total receivables for personal benefits 4,019,449 3,049,302Subsidies:

Aged Care 58,003 100,942

Total subsidies 58,003 100,942

Advances and loans:Advance payments for personal benefits 312,818 309,670Aged Care facilities 262,149 222,754Student Financial Supplement Scheme 531,200 604,200Other loans 31,988 30,034

Total advances and loans 1,138,155 1,166,658

Other receivables:Other receivables 30,222 32,533GST receivable from the Australian Taxation Office 19,043 10,194

Total other receivables 49,265 42,727

Total receivables (gross) 5,264,872 4,359,629

Less impairment allowance:

Personal benefits (764,813) (658,351)Other (4,166) (17,718)

Total impairment allowance (768,979) (676,069)

Total receivables (net) 4,495,893 3,683,560

Receivables (gross) aged as follows:

Not overdue 4,473,773 3,762,396

Overdue by:

0 to 30 days 30,379 25,32131 to 60 days 20,733 16,66661 to 90 days 24,708 16,678More than 90 days 715,279 538,568

Total receivables (gross) 5,264,872 4,359,629

Impairment allowance aged as follows:

Not overdue (745,157) (641,485)

Overdue by:

0 to 30 days (730) (721) 31 to 60 days (517) (487) 61 to 90 days (527) (487) More than 90 days (22,048) (32,889)

Total impairment allowance (768,979) (676,069)

1.Personal benefits mainly relate to Family Tax Benefit of $1,419.200 million (2014: $1,186.800 million), Parenting Payments of $697.840 million (2014: $635.968 million), Newstart Allowance of $485.257 million (2014: $444.135 million) and Disability Support Pension of $254.467 million (2014: $239.085 million).

194

Note 20: Administered Financial Assets (continued)

Reconciliation of the Impairment Allowance:

Movements in relation to 2015Receivables

$'000Total$'000

Opening balance as at 1 July 2014 676,069 676,069

Increase recognised in net loss 120,864 120,864

Closing balance as at 30 June 2015 796,933 796,933

Reconciliation of the Impairment Allowance: Movements in relation to 2014Receivables

$'000Total$'000

Opening balance as at 1 July 2013 342,645 342,645

Increase recognised in net loss 32,044 32,044

Restructuring 301,380 301,380

Closing balance as at 30 June 2014 676,069 676,069

Note 20B: Investments in Commonwealth Entities and Other Interests

Investments in Commonwealth entities:

2015$'000

2014$'000

Australian Aged Care Quality Agency - 15,226

National Disability Insurance Agency 51,035 54,941

Total investments in Commonwealth entities 51,035 70,167

Other interests:

Yarra Community Housing 1,014 1,014

Total other interests 1,014 1,014

Total investments in Commonwealth entities and other interests 52,049 71,181

The above investments are reported at fair value, based on the latest management accounts or unaudited financial statements provided by each entity. Details of investments in Commonwealth entities and other interests are disclosed in Note 26: Administered Investments.

195

Note 21: Administered Non-Financial Assets

Note 21A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment 2015

Land$’00

0Buildings

$’000Total$’000

As at 1 July 2014

Gross book value 80 300 380

Accumulated depreciation - (7) (7)

Net book value as at 1 July 2014 80 293 373

Depreciation - (6) (6)

Disposals (80) (287) (367)

Net book value as at 30 June 2015 - - -

Note 21A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment 2014 Land

$’000

Buildings$’000

Total$’000

As at 1 July 2013


Accumulated depreciation - - -

Net book value as at 1 July 2013 80 300 380

Depreciation - (7) (7)

Revaluations recognised in other comprehensive income - - -

Net book value as at 30 June 2014 80 293 373



Accumulated depreciation - (7) (7)

Net book value as at 30 June 2014 80 293 373

Note 21B: Other Non-Financial Assets

2015$'000

2014$'000

Prepayments - other 44 7

Total other non-financial assets 44 7

All other non-financial assets are expected to be recovered within 12 months.

No indicators of impairment were found for other non-financial assets.

196

Note 22: Administered Payables

Note 22A: Suppliers2015$'000

2014$'000

Suppliers in connection with:

Related parties 6,977 1,067External parties 54,951 33,121

Total suppliers 61,928 34,188All suppliers payables are expected to be settled within 12 months. Settlement was usually made within 30 days.

Note 22B: Subsidies2015$'000

2014$'000

Subsidies in connection with:Related parties 1,482 9,998External parties 217,318 291,148

Total subsidies 218,800 301,146All subsidies payables are expected to be settled within 12 months.

Note 22C: Personal Benefits2015$'000

2014$'000

Direct 3,086,743 3,112,318Indirect 124,309 31,060

Total personal benefits 3,211,052 3,143,378All personal benefit payables are expected to be settled within 12 months. Personal benefit payment types are disclosed in Note 17C.

Note 22D: Grants2015$'000

2014$'000

Public sector:State and Territory Governments 877 798Local Governments 2,568 11

Private sector:Non-profit organisations 31,035 8,894Other grants 32,797 4,061

Total grants 67,277 13,764All grants payables are expected to be settled within 12 months. Settlement was made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

Note 22E: Other Payables 2015$'000

2014$'000

Other payables - 887Total other payables - 887

197

Note 23: Administered Provisions

Note 23A: Personal Benefits and Other Provisions

2015$'000

2014$'000

Family Tax Benefit 4,803,800 4,792,000

Pension Bonus Scheme 527,000 760,000

Baby Bonus - 6,900

Single Income Family Supplement 56,931 56,931

Schoolkids Bonus 84,400 85,900

Child Care Fee Assistance 864,183 -

Total personal benefits and other provisions 6,336,314 5,701,731

Personal benefits and other provisions expected to be settled:

No more than 12 months 5,436,705 4,658,791

More than 12 months 899,609 1,042,940

Total personal benefits and other provisions 6,336,314 5,701,731

Movement in provisions

Family Tax

Benefit

$'000

Pension Bonus

Scheme

$'000

Baby Bonus

$'000

Single Income Family

Supplement

$'000

Schoolkids Bonus

$'000

Child Care Fee Assistanc

e

$'000

Total

$'000

Carrying amount as at 1 July 2014 4,792,000 760,000 6,900 56,931 85,900 -

5,701,731

Restructuring - - - - - 703,289 703,289Additional provisions made 22,400 - - 56,931 84,400 160,894 324,625Amounts used (10,600) (233,000) (6,900) (56,931) (85,900) - (393,33

1)Closing balance as at 30 June 2015 4,803,800 527,000 - 56,931 84,400 864,183

6,336,314

198

Note 24: Administered Cash Flow Reconciliation

Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement

2015$'000

2014$'000

Cash and cash equivalents as per:

Schedule of administered cash flows 11,511 51,826

Schedule of administered assets and liabilities 11,511 51,826

Discrepancy - -

Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (127,920,922) (111,725,968)

Adjustments for non-cash items

Depreciation 6 7

Adjust for operating component attributable to investing activities (7,753) (27,312)

Loss on disposal of assets 367 -

Administered receipts collected by other agencies (615,760) (557,149)

Restructuring (567,054) 1,482,600

Net withholdings of personal benefits overpayments through equity (81,338) 91,013

Other non-cash items 12,862 21,875

Movements in assets and liabilities

Assets

(Increase) in net receivables (812,333) (2,223,835)

(Increase) / decrease in other non-financial assets (37) 8,157

Liabilities

Increase in supplier payables 27,740 16,074

Increase in personal benefits payables 67,674 385,367

Increase / (decrease) in grant payables 53,513 (4,224)

Increase / (decrease) in subsidies payables (82,346) 277,913

Increase / (decrease) in personal benefits provision 634,583 (578,595)

Increase / (decrease) in other payables (887) 887

Net cash used by operating activities (129,291,685) (112,833,190)

199

Note 25: Administered Contingent Assets and Liabilities

Claims for damages or

costs

2015$'000

Claims for damages or costs

2014$'000

Total

2015$'000

Total

2014$'000

Contingent liabilities

Balance from previous period - 37 - 37

Liabilities recognised - (37) - (37)

Total contingent liabilities - - - -

Net contingent (liabilities) - - - -

Quantifiable Administered Contingencies

There are no Act of Grace payment requests currently being considered by the Finance Minister (2014: Nil).

DSS is currently aware of the potential for the Aged Care accommodation bond scheme to be activated. For the 2015 financial year, the scheme was activated twice with total payments of $8.6 million. Since the scheme was introduced it has been activated a total of eight times requiring payment of $42.7 million. Past activations and payments cannot be used as a reliable measure of future activations and payments under the scheme.

Unquantifiable Administered Contingencies

DSS was involved in a number of cases before both the Administrative Appeals Tribunal (AAT) and the SSAT. These cases relate to appeals regarding income support payments and other payments under the social security legislation. It was not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.

As at 30 June 2015, the pleadings for a representative proceeding against the Commonwealth under disability discrimination legislation have closed. At this time, it is not possible to quantify the potential liability, if any.

DSS was involved in an internal review of an ongoing litigation matter. The applicant is yet to quantify their claim for relief.

The Australian Government has made a commitment to provide temporary, untied financial assistance relating to some jurisdictions during the transition to the National Disability Insurance Scheme (NDIS). Any impact on the Commonwealth is not expected to occur before 2016-17.

Significant Remote Administered Contingencies

There are no known remote administered contingencies as at 30 June 2015 (2014: Nil).

There are no contingent assets in the current or previous reporting periods.

200

Note 26: Administered Investments

Investment in Commonwealth Entities

The Commonwealth has 100% of the equity interest in the National Disability Insurance Agency (NDIA). The NDIA provides individual control and choice in the delivery of reasonable and necessary care and support to improve the independence, and the social and economic participation of eligible people with disability, their families and carers, and associated referral services.

The Australian Aged Care Quality Agency (the Quality Agency) was established on 1 January 2014, replacing the Aged Care Standards and Accreditation Agency Ltd. as the accreditation body for Residential Aged Care. The Quality Agency commenced operations under the PGPA Act on 1 July 2014.

Investments in Other Interests

The Commonwealth has an interest in a property occupied by the Yarra Community Housing located in Melbourne. The principal activity of the entity is the provision of community housing facilities. The Commonwealth owns 31% of the unimproved market value of the land. The equity in this property is secured by a deed of agreement between the Commonwealth and the Yarra Community Housing Ltd., with the Commonwealth holding a controlling interest over the use of the property.

Note 27: Administered Financial Instruments

Note 27A: Categories of Financial Instruments

2015$'000

2014$'000

Financial Assets

Loans and receivables:


Other receivables and subsidies 88,225 133,475

Less: impairment allowance (4,166) (17,718)

Advances and loans 825,337 856,988

Total loans and receivables 920,907 1,024,571

Available-for-sale financial assets:

Investments in Commonwealth entities and other interests 52,049 71,181

Total available-for-sale financial assets 52,049 71,181

Total financial assets 972,956 1,095,752

Financial Liabilities

Financial liabilities measured at amortised cost:

Suppliers 61,928 34,188

Grants and subsidies 286,077 314,910

Total financial liabilities measured at amortised cost 348,005 349,098

201

Total financial liabilities 348,005 349,098Note 27: Administered Financial Instruments (continued)

Note 27B: Credit Risk

DSS is exposed to credit risk through cash and receivables (recognised as loans and receivables) and investments (recognised as held-to-maturity). The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. This amount is equal to the total amount of cash, receivables, loans and investments. DSS has assessed the risk of the default on payment and has allocated $4.166 million (2014: $17.718 million) to an impairment allowance account for other receivables.

Maximum exposure to credit risk (excluding any collateral or credit enhancements)2015$'000

2014$'000

Financial assets carried at amount not best representing maximum exposure to credit risk


Other receivables and subsidies 88,225 133,475

Concessional loans 825,337 856,988

Total financial assets carried at amount not best representing maximum exposure to credit risk 925,073 1,042,289

Financial liabilities carried at amount not best representing maximum exposure to credit risk

Trade creditors (61,928) (34,188)

Grants and subsidies (286,077) (314,910)

Total financial liabilities carried at amount not best representing maximum exposure to credit risk

(348,005) (349,098)

Credit quality of financial assets not past due or individually determined as impaired


2015$'000


2014$'000

Past due or impaired

2015$'000

Past due or impaired

2014$'000

Other receivables 81,845 109,810 6,380 23,665

Concessional loans 821,884 853,946 3,453 3,042

Total 903,729 963,756 9,833 26,707


0 to 30 days$'000

31 to 60 days$'000

61 to 90 days$'000

90+ days$'000

Totaldays$'000

Other receivables 992 67 3,307 6,180 10,546

Concessional loans 230 145 204 2,874 3,453

Total 1,222 212 3,511 9,054 13,999


0 to 30 days$'000

31 to 60 days

$'000

61 to 90 days

$'000

90+ days$'000

Totaldays

$'000

Other receivables 697 55 9 5,186 5,947

202

Concessional loans 230 145 203 2,464 3,042

Total 927 200 212 7,650 8,989

203

Administered Financial Instruments (continued)

Note 27C: Liquidity Risk

DSS administered financial liabilities relate to creditors, grants and subsidies payable. The exposure to liquidity risk is based on the notion that DSS will encounter difficulty in meeting its obligations associated with administered financial liabilities. This is highly unlikely due to appropriation funding, mechanisms available to DSS and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations when they fall due.

The maturities for financial liabilities for DSS are within one year for both 2015 and 2014.

Note 27D: Concessional Loans

2015$'000

2014$'000

Pension Loan SchemeNominal value 31,645 31,868

Less: unexpired discount (67) (1,834)

Carrying value 31,578 30,034

Total Pension Loan Scheme 31,578 30,034

Aged Care Zero Real Interest LoanNominal value 294,941 245,233

Less: unexpired discount (32,792) (22,479)


Total Aged Care Zero Real Interest Loan 262,149 222,754

Student Financial Supplement SchemeNominal value 2,159,183 2,180,637

Less: unexpired discount (58,600) (11,168)

Less: impairment (1,569,383) (1,565,269)


Total Student Financial Supplement Scheme Loan 531,200 604,200

Child Care LoanNominal value 609 -

Less: principal repayment (199) -

Carrying value 410 -

Total Child Care Loan 410 -

Total concessional loans 825,337 856,988

204

Note 28: Administered Financial Assets Reconciliation

Financial assets

2015$'000

2014$'000

Total financial assets as per administered schedule of assets and liabilities 4,559,453 3,806,567

Less: non-financial instrument components

Recovery of personal benefit payments 4,019,449 3,049,302

Advance payments for personal benefits 312,818 309,670

Impairment allowance for personal benefits (764,813) (658,351)


Total non-financial instrument components 3,586,497 2,710,815

Total financial assets as per administered financial instruments note 972,956 1,095,752

205

Note 29: Appropriations

Note 29A: Annual Appropriations ('Recoverable GST exclusive')

Annual appropriations for 2015 Appropriation Act PGPA Act

Total appropria

tion

Appropriation applied

in 2015 (current and prior years)

Annual Appropriati

on1,2 AFM

Section 74

Section 75

Variance3

$'000 $'000

$'000 $'000 $'000 $'000 $'000Departmental

Ordinary annual services

605,540 - 70,463

24,290 700,293 690,773 9,520

Other services

Equity 16,373 - - - 16,373 33,826 (17,453)

Total departmental 621,913 - 70,463

24,290 716,666 724,599 (7,933)

AdministeredOrdinary annual

servicesAdministered items 4,533,853

- 3,464 239,875 4,777,192 4,180,812 596,380

Payments to Corporate Commonwealth entities 329,762 - - - 329,762 309,320 20,442

Other services

States, ACT, NT and LocalGovernment - - - - - 517 (517)

Payments to Corporate Commonwealth entities

23,349

- - - 23,349 23,349 -

Total administered 4,886,964

- 3,464 239,875 5,130,303 4,513,998 616,3051.The administered ordinary annual services items include $21.764 million that have been quarantined but not yet reduced by law: $8.279 million relates to savings measures, $10.485 million relates to movement of funds between years and $3.000 million is reallocated to departmental capital in the 2015 financial year.

The administered payments to corporate Commonwealth entities include $21.329 million that has been quarantined due to the transfer of the Sector Development Fund as a result of a section 51 determination. 2. In 2015, there was a net $12.167 million adjustment for departmental ordinary annual services that met the recognition criteria of a formal reduction in revenue (in accordance with FRR Part 6 Div 3), the appropriations had not been amended before the end of the reporting period.3. The variance in departmental ordinary annual services is mainly due to the remaining current year appropriations as well as movements in cash and GST receivable and prior year appropriation applied in 2015. The annual appropriation and appropriation applied in 2015 also includes an amount for Departmental Capital Budget which is disclosed in Note 29B.

The variance attributable to administered ordinary annual services consists of the following: $21.764 million relates to quarantined funds, $86.502 million relates to payment of 2014 accruals during 2015, $661.118 million represents unspent available appropriations (which includes funding required for 2015 accruals).

The variance attributable to administered payments to corporate Commonwealth entities is due to the transfer of sector development fund of $21.329 million and a payment of 2014 accruals of $0.887 million during the 2015 financial year. 4. Department of Employment spent money from the Consolidated Revenue Fund (CRF) on behalf of DSS (Administered). The money spent has been included in the table above.

206

Note 29: Appropriations (continued)

Note 29A: Annual Appropriations ('Recoverable GST exclusive') (continued)

Annual appropriations for 2014

Appropriation Act FMA ActTotal

appropriation

Appropriation applied in

2014 (current and prior years)

Annual Appropriatio

n

Appropriations reduced1 AFM2

Section 30

Section 31

Section 32

Variance

$'000 $'000 $'000

$'000 $'000 $'000 $'000 $'000 $'000Departmental

Ordinary annual services4 634,767

- - - 73,292 18,667 726,726 733,802 (7,076)

Other services

Equity 58,290 - - - - 13,782 72,072 30,962 41,110

Total departmental 693,057

- - - 73,292 32,449 798,798 764,764 34,034

Administered

Ordinary annual services5

Administered items 1,684,287

(580,470) - 4,292 - 1,634,088

2,742,197 2,699,842 42,355

Payments to Corporate Commonwealth

52,169 - - - - - 52,169 51,282 887

Other services

States, ACT, NT and Local

Government 49,920 (4,679) - - - - 45,241 45,424 (183)

Payments to Corporate Commonwealth

51,077 - - - - - 51,077 51,077 -

Total administered 1,837,453

(585,149) - 4,292 - 1,634,088

2,890,684 2,847,625 43,059

1 Appropriations reduced under Appropriation Act (No.1) 2014: sections 10, 11 and 12 and under Appropriation Acts (No. 2 & 4) 2014: sections 12, 13 and 14. Departmental appropriations do not lapse at the end of the financial year. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request the Finance Minister reduce the appropriation. For administered appropriations reduced under section 11 of Appropriation Act (No. 1) 2014 and section 12 of Appropriation Act (No. 2) 2014, the appropriation is taken to be reduced to the required amount specified in Note 29F of this note once the annual report is tabled in Parliament.2.Advance to the Finance Minister (AFM) - Appropriation Acts (Nos. 1, 3 & 5) 2014: section 13 and Appropriation Acts (Nos. 2, 4 & 6) 2014: section 15.3. In 2014, the following departmental Appropriation Act (No.1) for ordinary annual services amounts were transferred: $92.500 million to PM&C, $72.163 million from DoHA, $13.017 million from DEEWR and $25.987 million from DIAC. The following departmental Appropriation Act (No. 2) for other services amounts were transferred: $13.782 million from DoHA. In administered appropriation programmes the following administered Appropriation Act (No.1) for ordinary annual services amounts were transferred: $149.127 million to PM&C, $1,423.534 million from DoHA, $223.424 million from DEEWR and $136.258 million from DIAC.4. The variance in departmental ordinary annual services is mainly due to the remaining current year appropriations, movements in cash and net GST receivable and section 32 prior years’ transfer of agency functions. The annual appropriation and appropriation applied in 2014 also includes an amount for Departmental Capital Budget which is disclosed in Note 29B. The variance for ordinary annual services (administered items) is due to payments of retention of $50.918 million applied from prior financial years offset by the current year's retention of $93.273 million. The variance for other services (States, ACT, NT and Local Government) is due to payments of retention of $1.200 million applied from prior financial years offset by the current year’s retention of $1.017 million.5. The following agencies spent money from the CRF on behalf of DSS: Department of Human Services (Administered and Departmental), Australian Taxation Office (Departmental).

208


Note 29B: Departmental and Administered Capital Budgets ('Recoverable GST exclusive')

2015 Capital Budget Appropriations

Capital Budget Appropriations applied in 2015

(current and prior years)Appropriation

ActPGPA

Act Total Capital Budget

Appropriations

Payments for

non-financial

assets2

Payments for other

purposes

Total paymen

tsVarian

ce3

Annual Capital Budget

Section 75

$'000 $'000 $'000 $'000 $'000 $'000 $'000Departmental

Ordinary annual services - Departmental

Capital Budget118,73

4 439 19,173 22,834 - 22,834 (3,661)

Administered

Ordinary annual services - Administered

Capital Budget1 - - - - - - -

1. Departmental and Administered Capital Budgets are appropriated through Appropriation Act (No. 1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please refer to Note 29A: Annual appropriations.

2. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to makegood an asset to its original condition, and the capital repayment component of finance leases.

3. The variance represents remaining current year appropriations in departmental ordinary annual services and prior year appropriation applied in 2015

209

.Note 29: Appropriations (continued)

Note 29B: Departmental and Administered Capital Budgets ('Recoverable GST exclusive') (continued)

2014 Capital Budget Appropriations

Capital Budget Appropriations applied in 2014

(current and prior years)Appropriation Act FMA Act

Total Capital Budget

Appropriations

Payments fornon-

financial assets3

Payments for

other purposes

Total payment

sVarianc

e

Annual Capital Budget

Appropriations reduced2

Section 32

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Departmental

Ordinary annual services - Departmental

Capital Budget1

19,613 - 2,875 22,488 18,039 - 18,039 4,449

Administered

Ordinary annual services - Administered

Capital Budget1 - - - - - - - -

1. Departmental and Administered Capital Budgets are appropriated through Appropriation Act (No. 1). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please refer to Note 29A: Annual appropriations.

2. Appropriations reduced under Appropriation Act (No. 1) 2014: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.

3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to makegood an asset to its original condition, and the capital repayment component of finance leases.

4. The variance represents remaining current year appropriations in departmental ordinary annual services and prior year adjustment of $4.449 million

210

.Note 29: Appropriations (continued)

Note 29C: Unspent Annual Appropriations ('Recoverable GST exclusive')

2015$'000

2014$'000

DepartmentalAppropriation Act (No.1) 2012-13 - 79,854

Appropriation Act (No. 2) 2012-13 - Non Operating - Equity Injection 8,955 -

Appropriation Act (No.1) 2013-14 1,458 46,270

Appropriation Act (No.1) 2013-14 - Capital Budget (DCB) - Non Operating 326 4,449

Appropriation Act (No.5) 2013-14 - 6,272

Appropriation Act (No. 2) 2013-14 - Non Operating - Equity Injection 32,069 41,110

Appropriation Act (No.1) 2014-15 124,289 -

Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) - Non Operating 788 -

Appropriation Act (No. 2) 2014-15 - Non Operating - Equity Injection 180 -

Total departmental 168,065 177,955

AdministeredAppropriation Act (No.1) 2010-11 - 417

Appropriation Act (No.1) 2011-12 - 445

Appropriation Act (No.5) 2011-12 - 12



Appropriation Act (No.3) 2013-14 547 547

Appropriation Act (No.2) - SPP 2013-14 500 5,696

Appropriation Act (No.5) 2013-14 - National Disability Insurance Scheme Launch Transitional Agency

- 887




Appropriation Act (No.1) 2014-15 - National Disability Insurance Scheme Launch Transition Agency

21,329 -

Total administered 715,764 685,482

The total disclosed for unspent Departmental Annual Appropriations includes the Appropriation Receivable 2015: $147.309 million (2014: $174.732 million) and Cash at Bank 2015: $8.589 million (2014: $3.223 million).

The balance also includes annual operating appropriation of (2015: $12.167 million) which has been reduced in the financial statements but not by law.

Appropriation Act (No. 2) 2012-13 - Non Operating - Equity Injection unspent balance of $8.955 million is related to the recognition of prior year departmental appropriations where the PGPA section 75 transfer has now taken place in the 2015 financial year.

The total for administered annual appropriations represents balance of unspent appropriations as at June 2015.

The following annual Appropriations Acts were repealed in 2015:

Appropriation Act (No.1) 2010-11Appropriation Act (No.1) 2011-12Appropriation Act (No.5) 2011-12

211

Note 29: Appropriations (continued) Note 29C: Unspent Annual Appropriations ('Recoverable GST exclusive')

Authority Type Purpose


2015$'000


2014$'000

Social Security (Administration) Act 1999, Administered2

Unlimited Amount

To enable the payment of income support payments. Most of the amount relates to payments for Age Pension and Disability Support Pension.

86,841,783 78,633,260

A New Tax System (Family Assistance) (Administration) Act 1999, Administered1,2

Unlimited Amount

To enable the payment of family income support payments. Most of the amount relates to payments for Family Tax Benefit and Baby Bonus.

24,563,077 21,912,436

Aged Care Act 1997, AdministeredUnlimited Amount

To provide for the Commonwealth to give financial support for the provision of Aged Care.

10,971,775 7,588,889

Paid Parental Leave Act 2010, Administered Unlimite

d Amount

To enable payments to working parents to enhance maternal and child health.

1,944,534 1,686,473

Student Assistance Act 1973 - Section 55A (Administered)

Unlimited Amount

An Act to provide certain benefits to certain students and for other purposes.

313,914 224,154

Social and Community Services Pay Equity Special Account Act 2012

Limited Amount

An Act to establish the Social and Community Services Pay Equity Special Account, and for related purposes including wage supplementation payments to eligible social and community services workers.

204,440 145,200

National Health Act 1953, Administered

Unlimited Amount

An Act relating to the provision of pharmaceutical, sickness and hospital benefits and of medical and dental services.

75,017 13,111

212


Note 29D: Special Appropriations Applied ('Recoverable GST exclusive') (continued)

Authority Type Purpose


2015$'000


2014$'000

Aged Care (Bond Security) Act 2006, Administered

Unlimited Amount

To provide for the Commonwealth to give financial support for the provision of Aged Care.

8,574 9,599

Early Years Quality Fund Special Account Act 20131

Limited Amount

An Act to provide funding to approved centrebased long day care services, to be used exclusively for paying remuneration, and other employment-related costs and expenses, in relation to employees in the early childhood education and care sector.

165,000 -

Public Governance, Performance and Accountability Act 2013 - Section 77, Administered

Refund To provide an appropriation where an Act or other law requires or permits the repayment of an amount received by the Commonwealth and apart from this section there is no specific appropriation for the repayment.

236 -

Stronger Futures in the Northern Territory Act 2012, Administered

Unlimited Amount

To support Aboriginal people in the Northern Territory to live strong, independent lives, where communities, families and children are safe and healthy.

- 503

Aboriginal Land Rights (Northern Territory) Act 1976, Administered

Unlimited Amount

To enable payments to Aboriginal Land Councils from the equivalent of mining royalties derived from mining operations on Aboriginal land in the Northern Territory.

- 65,325

Total special appropriations applied 125,088,350110,278,95

0

1. Responsibility for the administration of elements of this Act transferred from the former Department of Education to DSS on 23 December 2014. 2. DVA spent money from the CRF on behalf of DSS against the following special appropriations:

- Social Security (Administration) Act 1999, Administered; and

- A New Tax System (Family Assistance) (Administration) Act 1999, Administered.

213

Note 29: Appropriations (continued)Note 29E: Disclosure by Agent in Relation to Annual and Special Appropriations ('Recoverable GST exclusive')

2015Attorney-General's Department1

$'000Department of Veterans' Affairs

$'000

Total receipts 155,437 -

Total payments (155,437) -

2014Attorney-General's Department1

$'000Department of Veterans' Affairs

$'000

Total receipts 155,353 766,287

Total payments (155,353) (766,287)

1. DSS has drawing rights for Attorney-General's Department annual appropriation for the Family Relationship Services programme.

214

Note 30: Special Accounts

Note 30A: Special Accounts ('Recoverable GST exclusive')

Social and Community

Services Pay Equity Special

Account1

Services for Other Entities

and Trust Monies2

Early Years Quality Fund

Special Account3

National Disability Special

Account4

2015$'000

2014$'000

2015$'000

2014$'000

2015$'000

2014$'00

0

2015$'00

0

2014

$'00Balance brought forward from previous period

118,598

50,923 6,788 4,890 - -

7,629

7,430

Increases:Appropriation credited to special

account204,4

40145,2

0020,23

3 6,174165,0

00 - - -Balance transferred from the Department of Health - - - 3,120 - - - -Balance transferred from the Department of Education - - - -

24,709 - - -

Other receipts 569 983 2,073 2,267 148 - - 909

Total increases 205,009146,1

8322,30

611,56

1189,8

57 - - 909

Available for payments 323,607197,1

0629,09

416,45

1189,8

57 -7,62

98,33

9

Decreases:

Administered

Payments made to suppliers (148,175)(78,50

8)(7,180

)(8,925

)(84,46

2) -(583

)(710

)Balance transferred to the Department of the Prime Minister and Cabinet

- - - (738) - - - -

Total administered (148,175)(78,50

8)(7,180

)(9,663

)(84,46

2) -(583

)(710

)

Total decreases (148,175)(78,50

8)(7,180

)(9,663

)(84,46

2) -(583

)(710

)Total balance carried to the next period 175,432

118,598

21,914 6,788

105,395 -

7,046

7,629

215

Note 30A: Special Accounts ('Recoverable GST exclusive') (continued)

Indigenous Remote Service

Delivery Special

Account5

Indigenous Communiti

es Strategic Investment

Programme Special

Account6

Aboriginal and Torres

Strait Islander

Corporations

Unclaimed

Money Account7

Aboriginals

Benefit Accoun

t8

Aboriginal and Torres

Strait Islander Land Accou

nt9

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Balance brought forward from previous period 22,650 200 710 22,932 3

Increases:

Appropriation credited to special account600 3,410 - 65,325 -

Realised investments - - - 161,863 778,584

Interest receipts - - - 4,323 22,178

Lease rental receipts - - - 385 -

Other receipts443 - - - -

Total increases 1,043 3,410 - 231,896 800,762

Available for payments 23,693 3,610 710 254,828 800,765

Decreases:

Administered

Payments made to suppliers (4,253) (770) - - -

Payments made - committee members - - - (26) -

Payments made - suppliers - - - 68 -

Payments made - grants - - - (12,871) -

Payments made - township lease payments - - - (145) -

Payments made - land councils - - - (39,609) -

FMA Act section 39 investments - - - (195,000)

(800,762)

Balance transferred to the Department of the Prime Minister and Cabinet

(19,440) (2,840) (710) (7,245) (3)

Total administered (23,693)

(3,610) (710) (254,828)

(800,765)

Total decreases (23,693)

(3,610) (710) (254,828)

(800,765)

Total balance carried to the next period - - - - -

216

Note 30: Special Accounts (continued)

Social and Community Services Pay Equity Special Account

1. Appropriation: 2015 - Public Governance, Performance and Accountability Act 2013; section 802014 - Financial Management and Accountability Act 1997; section 21

Establishing Instrument: Social and Community Services Pay Equity Special Account Act 2012; section 5.

Purpose: To distribute the Commonwealth's contribution of its share of the equal remuneration order pay increases for social and community service sector workers in Commonwealth-funded programmes.

This account was established on 8 November 2012 in accordance with the Social and Community Services Pay Equity Special Account Act 2012.

This account is non-interest bearing and the balance is held in the Official Public Account.

Services for Other Entities and Trust Monies2. Appropriation: 2015 - Public Governance, Performance and Accountability Act 2013; section 78

2014 - Financial Management and Accountability Act 1997; section 20

Establishing Instrument: Financial Management and Accountability Determination 2010/14.

Purpose: For the disbursement of amounts held on trust or otherwise for the benefit of a person other than the Commonwealth and for services relating to other governments and bodies that are not PGPA Act Agencies.


This Special Account consists of the following sub-accounts:

National Framework. National Campaign - Violence Against Women – established to develop a national

awareness campaign focused on reducing violence against women and their children.

Select Council on Women's Issues’ cash balance transferred to PM&C on 1 November 2013 as a result of the AAOs issued during the 2014 financial year.

National Centre of Excellence. Home and Community Care Planning and Development transferred from the former

DoHA on 1 December 2013 as a result of the AAOs issued during the 2014 financial year.

The Way Forward Cross Jurisdictional Work transferred from the former DoHA on 1 December 2013 as a result of the AAOs issued during the 2014 financial year.

Community Care Access Support System transferred from the former DoHA on 1 December 2013 as a result of the AAOs issued during the 2014 financial year.

Survey of Disability, Ageing and Carers transferred from the former DoHA on 1 December 2013 as a result of the AAOs issued during the 2014 financial year.

Clearing House’s cash balance transferred to PM&C on 17 January 2014 as a result of the AAOs issued during the 2014 financial year.

217

Indigenous Housing closed on 13 February 2014.

Early Years Quality Fund Special Account

3. Appropriation: 2015 - Public Governance, Performance and Accountability Act 2013; section 80


Establishing Instrument: Early Years Quality Fund Special Account Act 2013.

Purpose: To improve quality outcomes for children in early childhood education and care services by enhancing professionalism in the early childhood education and care sector, including through improved attraction and retention of a skilled and professional workforce.

This account transferred from the former Department of Education as a result of the AAO issued on 23 December 2014.



National Disability Special Account4. Appropriation: 2015 - Public Governance, Performance and Accountability Act 2013; section 78


Establishing Instrument: Financial Management and Accountability Determination 2006/30.

Purpose: For expenditure on projects that relate to the National Disability Special Account.


Indigenous Remote Service Delivery Special Account5. Appropriation: 2014 - Financial Management and Accountability Act 1997; section 20

Establishing Instrument: Financial Management and Accountability Determination 2010/06

Purpose: To support the implementation of the Remote Service Delivery National Partnership Agreement. It will provide the Australian Government with the capacity to address high priority projects in a timely way and support projects identified through the local implementation planning process.


This account transferred to PM&C on the 5 December 2013 as a result of the AAOs issued during the 2014 financial year.

Indigenous Communities Strategic Investment Programme Special Account6. Appropriation: 2014 - Financial Management and Accountability Act 1997; section 20

Establishing Instrument: Financial Management and Accountability Determination 2008/24

Purpose: Administering the Indigenous Communities Strategic Investment Programme.

218


This account’s cash balance transferred to PM&C on the 5 December 2013 as a result of the AAOs issued during the 2014 financial year.

Aboriginal and Torres Strait Islander Corporations Unclaimed Money Account7. Appropriation: 2014 - Financial Management and Accountability Act 1997; section 21

Establishing Instrument: Corporations (Aboriginal and Torres Strait Islander) Act 2006; section 551-20

Purpose: To administer unclaimed monies received by the Registrar of Aboriginal and Torres Strait Islander Corporations.


This account transferred to PM&C on the 18 September 2013 as a result of the AAOs issued during the 2014 financial year.

Aboriginals Benefit Account8. Appropriation: 2014 - Financial Management and Accountability Act 1997; section 21

Establishing Instrument: Aboriginal Land Rights (Northern Territory) Act 1976; sections 62, 63, 64 and 65

Purpose: For the receipt and disbursement of the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory.

This account is interest bearing.



Aboriginal and Torres Strait Islander Land Account9. Appropriation: 2014 - Financial Management and Accountability Act 1997; section 21

Establishing Instrument: Section 192W of the Aboriginal and Torres Strait Islander Act 2005

Purpose: To provide a secure stream of income to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base.

This account is interest bearing.


219

Note 31: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Table A – Summary 2015

Appropriations identified as subject to conditions

Payments in 2015

Review complete

?

Breaches identified for payments made

during 2015

Potential Breaches

2015

Remedial action

taken or proposed1

Amount$’000 (Yes/No) Yes/No

Amount$’000

Yes/No

Indicative extant

SPECIAL APPROPRIATIONSA New Tax System (Family Assistance) (Administration) Act 1999

$24,565,305 Yes No - Yes

Refer to footnote

3-

Paid Parental Leave Act 2010

$1,944,533 Yes No - Yes

Refer to footnote

4-

Social Security (Administration) Act 1999

$86,852,078 Yes No - Yes

Refer to footnote

5-

Aged Care Act 1997 $10,971,775 Yes Yes

Refer to footnote

2Yes

Refer to footnote

2

Refer to footnote 2

Aged Care (Bond Security) Act 2006 $8,574 Yes No - Yes

Refer to footnote

7-

National Health Act 1953, Part III $79,362 Yes No - Yes

Refer to footnote

8-

Student Assistance Act 1973 $313,914 Yes No - Yes

Refer to footnote

6-

SPECIAL ACCOUNTS

National Disability Special Account $583 Yes No - No - -

Services for Other Entities and Trust Monies

$7,180 Yes No - No - -

Social & Community Services Pay Equity Special Account

$148,175 Yes No - No - -

Early Years Quality Fund Special Account $84,462 Yes No - No - -

ANNUAL APPROPRIATIONSAnnual Appropriation Act No.1 2014-15 (National Rental Affordability Scheme)

$38,948 Yes No - No - -

Details are disclosed in Note 1.23.

220

Note 31: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund (continued)

1. L= legislative change; S= systems change; P=planned; M=made (e.g. SM, or LP)

2. During the 2015 financial year a small proportion of accommodation supplement payments made to residential care services for post 1 July 2014 residents, while the payments were consistent with government policy, these were at a higher rate than the legislation provided. These payments were due to an error in the legislation. The legislation has now been amended. The relevant amount is estimated to be less than $5 million (or 1% of total supplement payments).

A total of 36 instances of potential non-compliance were identified during the 2015 financial year for the Aged Care Act 1997. These instances of potential non-compliance relate to payment agreement executed by officials no longer holding the requisite delegation; and are subject to confirmation from the Australian Government Solicitor.

3. The value of potential contraventions in respect of various payments under the A New Tax System (Family Assistance) Act 1999 and A New Tax System (Family Assistance) (Administration) Act 1999 was $1,377.079 million representing 1,093,286 debts raised. A total of $673.868 million was recovered during the 2015 financial year; a further $26.360 million was waived or written off.

4. The value of potential contraventions in respect of payments under the Paid Parental Leave Act 2010 was $14.180 million representing 6,269 debts raised. A total of $10.978 million was recovered during the 2015 financial year; a further $0.132 million was waived or written off.

5. The value of potential contraventions in respect of various entitlements paid under the Social Security (Administration) Act 1999 was $1,101.728 million representing 1,230,643 debts raised. A total of $732.457 million was recovered during the 2015 financial year; a further $108.835 million was waived or written off.

6. The value of potential contraventions in respect of various entitlements paid under the Student Assistance Act 1973 was $13.175 million representing 15,724 debts raised. A total of $8.989 million was recovered during the 2015 financial year; a further $1.044 million was waived or written off.

7. Payments under the Aged Care (Bond Security) Act 2006 have no potential breaches of the section 83 during the 2015 financial year.

8. The value of potential contraventions in respect of various entitlements paid under the National Health Act 1953, Part III was $0.193 million representing 574 debts raised. A total of $0.028 million was recovered during the 2015 financial year; a further $0.157 million was waived or written off.

221

Note 32: Reporting of Outcomes

Note 32A: Net Cost of Outcome Delivery

Outcome 1

Social Security

Outcome 2

Families and

Communities

Outcome 3

Ageing and

Aged Care

Outcome 4

Housing

Outcome 5

Disability and

Carers

Payments to

corporate

Commonwealth entities2

Not attributed Total

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

Departmental

Expenses 150,425 227,345 228,526 24,123 93,508 2,000 - 725,927

Own-source income (12,203) (20,659) (20,945) (2,229) (8,977) - - (65,013)

Administered

Expenses107,387,4

045,969,55

913,066,

545 67,5951,407,69

2 308,433 -128,207

,228

Own-source income (147,535) (13,259)

(82,344) (7,856) (35,312) - -

(286,306)

Net cost of outcome delivery1

107,378,091

6,162,986

13,191,782 81,633

1,456,911 310,433 -

128,581,836

1.DSS’ outcome structure changed in the 2015 financial year. Details are disclosed in Note 1.1.

2. Payments to corporate Commonwealth entities are not related to Outcomes but are included in this disclosure so that the total reconciles and agrees to the resourcing table.

222

Note 32: Reporting of Outcomes (continued)

Note 32A: Net Cost of Outcome Delivery (continued)

Outcome 1Families

and Children

Outcome 2

Housing

Outcome 3

Community

Capability and the Vulnerabl

e

Outcome 4

Seniors

Outcome 5

Disability and

Carers

Outcome 6

Women

Outcome 7

Indigenous

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Departmental

Expenses 104,578 31,482 64,235 26,700 291,573 9,366 92,286

Own-source income (4,112) (1,351) (2,629) (1,068) (43,005) (837) (1,501)

Administered

Expenses 23,031,786

121,384

342,273 39,817,541

23,793,847

32,248 167,858

Own-source income (1,474) (2,125) (1,659) (26,586) (4,429) (1,706) (28,964)

Net cost of outcome delivery

23,130,778

149,390 402,220

39,816,587

24,037,986 39,071 229,679

Outcome 8Aged Care

and Population

Ageing

Outcome 9Settlement

Services

Outcome 10

Multicultural Affairs

Outcome 11Disability

Employment Services,

Working Age and Student

Payments

Payments to CAC

Act bodies

Not attributed Total

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Departmental

Expenses 125,103 19,363 10,072 17,328 - - 792,086

Own-source income

(41,290) (1,610) (1,059) (5,879) - - (104,341)

Administered

Expenses 8,867,858 71,926 7,018 15,565,325 43,898 - 111,862,962Own-source

income(56,746) - (84) (13,221) - - (136,994)

Net cost of outcome delivery

8,894,925 89,679 15,947 15,563,553 43,898 - 112,413,713

223


Note 32B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome

Outcome 1

Social Security

Outcome 2Families

and Communiti

es

Outcome 3

Ageing and

Aged Care

Outcome 4

Housing

Outcome 5

Disability and

Carers

Payments to corporate

Commonwealth entities

Not attribu

ted Total

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

Expenses:

Employee benefits 77,295

126,447 126,660 13,013 48,016 - - 391,431

Supplier 57,323

75,516 75,862 8,253 35,940 - - 252,894

Grants - - - 126 - 2,000 - 2,126Depreciation and amortisation

12,078 20,378 20,877 2,192 7,669 - - 63,19

4

Other expenses 3,729

5,004 5,127 539 1,883 - - 16,282

Total expenses 150,425 227,345 228,526 24,123 93,508 2,000 - 725,927

Income:Revenue from Government 115,001 192,744 197,470 20,741 72,534 - - 598,4

90Rendering of services 10,354 17,541 17,750 1,894 7,802 - - 55,34

1

Rental income 1,263 2,130 2,182 229 802 - - 6,606

Other revenue 586 988 1,013 106 373 - - 3,066

Total income 127,204 213,403 218,415 22,970 81,511 - - 663,503

Assets:Cash and cash equivalents - - - - - - 8,589 8,589

Trade and other receivables 31,415 53,003 54,303 5,704 19,946 - - 164,3

71Leasehold improvements 5,934 10,011 10,257 1,077 3,768 - - 31,04

7Property, plant and equipment 4,728 7,976 8,171 858 3,001 - - 24,73

4

Intangibles 21,715 36,638 37,536 3,942 13,788 - - 113,619

Other non-financial assets 3,557 6,001 6,148 646 2,258 - - 18,61

0

Total assets 67,349 113,629 116,415 12,227 42,761 - 8,589 360,970

Liabilities:

Suppliers 6,534 11,023 11,294 1,186 4,148 34,185

Other payables 7,250 12,233 12,533 1,316 4,604 - - 37,936Employee provisions

22,719 38,333 39,273 4,125 14,426 - - 118,876

Other provisions 1,243 2,097 2,149 226 789 - - 6,504

Total liabilities 37,746 63,686 65,249 6,853 23,967 - - 197,501

224


Note 32B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome (continued)

Outcome 1

Families and

Children

Outcome 2

Housing

Outcome 3

Community

Capability and the

Outcome 4

Seniors

Outcome 5

Disability and

Carers

Outcome 6

Women

Outcome 7

Indigenous

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Expenses:

Employee benefits 62,139 17,399 35,331 11,457 113,985 6,214 52,663

Supplier 32,176 11,384 23,447 13,344 49,459 2,189 29,595

Grants - - - - - - 1,860Depreciation and

amortisation9,154 2,563 5,183 1,688 16,792 915 7,758

Other expenses 1,109 136 274 211 111,337 48 410

Total expenses 104,578 31,482 64,235 26,700 291,573 9,366 92,286

Income:Revenue from

Government89,197 22,764 53,314 22,437 249,337 8,130 68,900

Rendering of services 2,835 977 1,745 812 40,841 706 598

Rental income 831 233 471 153 1,524 83 704

Other revenue 446 141 413 103 640 48 199

Total income 93,309 24,115 55,943 23,505 292,342 8,967 70,401

Assets:Cash and cash

equivalents - - - - - - -

Trade and other receivables

33,621 9,414 19,038 6,199 61,673 3,362 28,494

Land and buildings 6,560 1,837 3,715 1,210 12,033 656 5,560Property, plant and

equipment4,412 1,235 2,498 813 8,096 441 3,739

Intangibles 17,865 5,002 10,116 3,294 32,770 1,786 15,140Other non-financial

assets2,394 670 1,356 441 4,393 239 2,029

Total assets 64,852 18,158 36,723 11,957 118,965 6,484 54,962

Liabilities:

Suppliers 6,064 1,698 3,434 1,118 11,124 606 5,139

Other payables 10,079 2,822 5,707 1,858 18,488 1,008 8,542

Employee provisions 18,967 5,311 10,740 3,497 34,794 1,897 16,075

Other provisions 634 178 359 117 1,164 63 537

Total liabilities 35,744 10,009 20,240 6,590 65,570 3,574 30,293

225


Note 32B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome (continued)

Outcome 8Aged Care

and Population

Ageing

Outcome 9

Settlement

Services

Outcome 10

Multicultural Affairs

Outcome 11

Disability Employme

nt Services, Working Age and Student

Payments

Payments to CAC

Act bodies

Not attribute

d Total

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Expenses:

Employee benefits 94,859 13,095 6,998 11,496 - - 425,636

Supplier 20,998 4,282 2,134 4,049 - - 193,057

Grants - 100 - - - - 1,960

Depreciation and amortisation 8,782 1,791 893 1,693 - - 57,212

Other expenses 464 95 47 90 - - 114,221

Total expenses 125,103 19,363 10,072 17,328 - - 792,086

Income:Revenue from

Government77,996 15,904 7,927 15,040 - - 630,946

Rendering of services 4,829 410 - 5,606 - - 59,359

Rental income 797 163 81 154 - - 5,194

Other revenue 35,664 1,037 978 119 - - 39,788

Total income 119,286 17,514 8,986 20,919 - - 735,287


equivalents - - - - - 3,223 3,223

Trade and other receivables

32,255 6,577 3,278 6,220 - - 210,131

Land and buildings 6,294 1,283 640 1,214 - - 41,002

Property, plant and equipment 4,233 863 430 816 - - 27,576

Intangibles 17,139 3,495 1,742 3,305 - - 111,654Other non-financial

assets2,297 468 233 443 - - 14,963

Total assets 62,218 12,686 6,323 11,998 - 3,223 408,549

Liabilities:

Suppliers 5,817 1,186 591 1,122 - - 37,899

Other payables 9,669 1,972 983 1,865 - - 62,993

Employee provisions 18,197 3,710 1,849 3,509 - - 118,546

Other provisions 608 124 62 117 - - 3,963

Total liabilities 34,291 6,992 3,485 6,613 - - 223,401

226


Note 32C: Major Classes of Administered Expenses, Income, Assets, and Liabilities by Outcomes

Outcome 1Social

Security

Outcome 2Families

and Communiti

es

Outcome 3

Ageing and Aged

Care

Outcome 4

Housing

Outcome 5

Disability and Carers

Payments to

corporate

Common-

wealth entities

Not attribu

ted Total

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

Expenses:

Suppliers 1,106 101,798 60,655 105 801,988 - - 965,652

Subsidies 8,844 1,941 10,970,692 64,790 3,321 - - 11,049,58

8Personal benefits 107,277,33

6 5,088,604 75,235 - - - - 112,441,175

Grants 5 569,696 1,819,150 2,700 600,33

7 - - 2,991,888Payments to corporate Commonwealth entities - - - - - 308,433 - 308,433

Other expenses 100,113 207,520 140,813 - 2,046 - - 450,492

Total expenses 107,387,404

5,969,559 13,066,545

67,595 1,407,692

308,433 - 128,207,228

Income:

Other revenue 147,535 13,259 82,344 7,856 35,312 - - 286,306

Total income 147,535 13,259 82,344 7,856 35,312 - - 286,306

Assets:

Cash and cash equivalents 3,088 3,863 3,345 - - - 1,215 11,511

Receivables 3,696,197 443,994 331,846 16,892 6,964 - - 4,495,893

Investments in Commonwealth

entities and other interests - - - - - 52,049 - 52,049

Other non-financial assets - 7 - - 37 - - 44

Total assets 3,699,285 447,864 335,191 16,892 7,001 52,049 1,215 4,559,497

Liabilities:

Suppliers 1,282 16,042 19,854 154 24,596 - - 61,928

Subsidies 674 410 152,918 64,751 47 - - 218,800Personal benefits

2,956,365 254,687 - - - - - 3,211,052

Grants - 6,298 49,844 50 11,085 - - 67,277

Other payables - - - - - - - -Personal benefits and other provisions 5,472,131 864,183 - - - - -

6,336,314

Total liabilities 8,430,452 1,141,620 222,616 64,955 35,728 - - 9,895,371

227


Note 32C: Major Classes of Administered Expenses, Income, Assets, and Liabilities by Outcomes (continued)

Outcome 1

Families and

Children

Outcome 2

Housing

Outcome 3

Community

Capability and the Vulnerabl

e

Outcome 4

Seniors

Outcome 5

Disability and

Carers

Outcome 6

Women

Outcome 7

Indigenous

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Expenses:Suppliers 8,808 2,744 2,232 5,073 20,111 3,081 3,355Subsidies - 43,870 8,613 - 938 - -

Personal benefits22,868,47

4 - 97,60639,800

,07523,060,2

71 - -Grants 141,448 74,770 157,115 2,889 604,092 21,133 128,562Payment to CAC Act

bodies - - - - 8,271 - -Other expenses 13,056 - 76,707 9,504 100,164 8,034 35,941

Total expenses23,031,78

6 121,384 342,27339,817

,54123,793,8

47 32,248 167,858Income:

Other revenue 1,474 2,125 1,659 26,586 4,429 1,706 28,964Total income 1,474 2,125 1,659 26,586 4,429 1,706 28,964

Assets:Cash and cash equivalents - - - - - - -

Receivables 988,532 - 14,845192,60

8 386,797 3 9,896Investments in

Commonwealthentities and other interests - - - - 54,941 - 1,014Land and buildings - - - - - - 373Other non-financial assets - - 7 - - - -

Total assets 988,532 - 14,852192,60

8 441,738 3 11,283Liabilities:

Suppliers 514 572 43 - 1,739 2,175 -Subsidies - 43,387 - - - - -

Personal benefits 1,056,767 - 6,7441,070,

827 566,205 - -Grants - 1,725 689 - 5,291 860 -Other payables - - - - 887 - -Personal benefits and other provisions 4,941,731 - -

760,000 - - -

Total liabilities 5,999,012 45,684 7,4761,830,8

27 574,122 3,035 -

228


Note 32C: Major Classes of Administered Expenses, Income, Assets, and Liabilities by Outcomes (continued)

Outcome 8

Aged Care and Population Ageing

Outcome 9

Settlement

Services

Outcome 10

Multicultural

Affairs

Outcome 11

Disability Employme

nt Services, Working Age and Student

Payments

Payments to CAC

Act bodies

Not attribut

ed Total

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

2014$'000

Expenses:

Suppliers 47,387 43,193 376 196,449 - - 332,809

Subsidies 7,718,664

- - 4,366 - - 7,776,451

Personal benefits 13,172 - - 15,379,533

- - 101,219,131

Grants 999,407 28,733 6,642 - - - 2,164,791Payment to CAC Act

bodies - - - - 43,898 - 52,169

Other expenses 89,228 - - (15,023) - - 317,611

Total expenses 8,867,858

71,926 7,018 15,565,325

43,898 - 111,862,962

Income:

Other revenue 56,746 - 84 13,221 - - 136,994

Total income 56,746 - 84 13,221 - - 136,994


equivalents44,405 - - - - 7,421 51,826

Receivables 323,403 7 1 1,767,468 - - 3,683,560

Investments in Commonwealthentities and other

interests15,226 - - - - - 71,181

Land and buildings - - - - - - 373Other non-financial

assets - - - - - - 7

Total assets 383,034 7 1 1,767,468 - 7,421 3,806,947

Liabilities:

Suppliers 11,815 6,120 - 11,210 - - 34,188Subsidies 257,75

9 - - - - - 301,146

Personal benefits 401 - - 442,434 - - 3,143,378

Grants 4,724 16 459 - - - 13,764

Other payables - - - - - - 887

Personal benefits and other provisions

- - - - - - 5,701,731

Total liabilities 274,699

6,136 459 453,644 - - 9,195,094

229

Note 33: Budgetary Reports and Explanations of Major Variances

The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for DSS. The Budget is not audited.

Variances are considered to be ‘major’ based on the following criteria:

the variance between budget and actual is greater than +/- 10% of the original budget for a line item; or

the variance between budget and actual is greater than 2% of the relevant sub-total (i.e. total expenses, total income, total assets or total liabilities); or

an item below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of DSS.

Note 33A: Departmental Budgetary Reports

Actual2015$'000

Budget estimateOriginal1

2015$'000

Budget estimateVariance2

2015$'000

NET COST OF SERVICESExpensesEmployee benefits 391,431 373,933 17,498Suppliers3 252,894 200,981 51,913Depreciation and amortisation 63,194 53,328 9,866Other expenses3 18,408 2,843 15,565Total expenses 725,927 631,085 94,842

Own-Source IncomeOwn-source revenueSale of goods and rendering of services 55,341 17,429 37,912Other revenue 7,814 6,655 1,159Total own-source revenue4 63,155 24,084 39,071

GainsOther gains 1,858 1,200 658Total gains 1,858 1,200 658Total own-source income 65,013 25,284 39,729Net cost of services (660,914) (605,801) (55,113)Revenue from Government 598,490 552,473 46,017Deficit attributable to the Australian Government (62,424) (53,328) (9,096)

OTHER COMPREHENSIVE INCOMEItems not subject to subsequent reclassification to net cost of servicesChanges in asset revaluation reserve5 (1,389) - (1,389)Total other comprehensive (loss) / income (1,389) - (1,389)

Total comprehensive loss attributable to the Australian Government (63,813) (53,328) (10,485)

231

Note 33: Budgetary Reports and Explanations of Major Variances (continued)

Note 33A: Departmental Budgetary Reports (continued)

Actual2015$'000


2015$'000


2015$'000

ASSETS

Financial Assets

Cash and cash equivalents 8,589 4,009 4,580

Trade and other receivables 164,371 141,526 22,845

Total financial assets 172,960 145,535 27,425


Leasehold improvements 31,047 141,872 (110,825)

Property, plant and equipment 24,734 23,050 1,684

Intangibles 113,619 63,431 50,188

Other non-financial assets 18,610 10,153 8,457

Total non-financial assets6 188,010 238,506 (50,496)

Total assets 360,970 384,041 (23,071)

LIABILITIES

Payables

Suppliers 34,185 40,270 (6,085)

Other payables 37,936 25,944 11,992

Total payables7 72,121 66,214 5,907

Provisions

Employee provisions 118,876 124,643 (5,767)

Other provisions8 6,504 3,576 2,928

Total provisions 125,380 128,219 (2,839)

Total liabilities 197,501 194,433 3,068

Net assets 163,469 189,608 (26,139)

EQUITY

Contributed equity 295,011 314,852 (19,841)

Reserves 66,095 67,541 (1,446)

Retained earnings (197,637) (192,785) (4,852)

Total equity 163,469 189,608 (26,139)

232



Retained earningsAsset revaluation

reserveContributed

equity/capital Total equity2

Budget estimateBudget

estimate Budget estimate Budget estimate

ActualOrigina

l1 Variance2 ActualOriginal1

Variance2

Actual

Original1

Variance2 Actual Original1

Variance2

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

2015$'000

Opening balance

Balance carried forward from previous period

(135,213)(139,457) 4,244

67,484

67,541 (57)

252,877

289,685

(36,808)

185,148

217,769 (32,621)

Adjusted opening balance

(135,213)(139,457) 4,244

67,484

67,541 (57)

252,877

289,685

(36,808)

185,148

217,769 (32,621)

Comprehensive income

Other comprehensive income - - - (1,389) - (1,389) - - -(1,389) - (1,389)

Deficit for the period(62,424

)(53,328

)(9,09

6) - - - - - -(62,42

4)(53,328

) (9,096)

Total comprehensive income

(62,424)(53,328

)(9,09

6) (1,389) - (1,389) - - -(63,81

3)(53,328

) (10,485)

of which: - - - -

Attributable to the Australian Government

(62,424)(53,328

)(9,09

6) (1,389) - (1,389) - - -(63,81

3)(53,328

) (10,485)

Transactions with owners

Contributions by owners

Equity injection - Appropriations - - - - - -

16,373 6,373 10,000

16,373 6,373 10,000

Departmental capital budget - - - - - -18,73

418,79

4 (60)18,73

4 18,794 (60)

Restructuring - - - - - - 7,027 - 7,027 7,027 - 7,027

Total transactions with owners - - - - - -

42,134

25,167 16,967

42,134 25,167 16,967

Closing balance as at 30 June(197,637

)(192,785

)(4,852

)66,09

567,541 (1,446)295,0

11314,85

2 (19,841)163,46

9 189,608 (26,139)

233



Actual2015$'000


2015$'000


2015$'000

OPERATING ACTIVITIES

Cash received

Appropriations 674,899 561,376 113,523

Sale of goods and rendering of services 70,495 17,429 53,066

Other9 26,601 6,655 19,946

Total cash received 771,995 585,460 186,535

Cash used

Employees 412,202 387,132 25,070

Suppliers 277,868 185,839 92,029

Other10 73,352 1,644 71,708

Total cash used 763,422 574,615 188,807

Net cash from / (used by) operating activities 8,573 10,845 (2,272)


Cash received

Proceeds from sales of property, plant and equipment 255 - 255

Total cash received 255 - 255

Cash used

Purchase of property, plant and equipment 13,667 36,012 (22,345)

Purchase of intangibles 46,455 - 46,455

Total cash used11 60,122 36,012 24,110

Net cash used by investing activities (59,867) (36,012) (23,855)

FINANCING ACTIVITIES

Cash received

Appropriations - contributed equity 56,660 25,167 31,493

Total cash received 56,660 25,167 31,493

Net cash from financing activities 56,660 25,167 31,493

Net increase / (decrease) in cash held 5,366 - 5,366

Cash and cash equivalents at the beginning of the reporting period 3,223 4,009 (786)

Cash and cash equivalents at the end of the reporting period 8,589 4,009 4,580

234


Note 33B: Departmental Major Budget Variances for 2015

Affected line items (and statement)

Statement of Comprehensive IncomeStatement of Financial PositionStatement of Change in EquityCash Flow Statement

Explanations of major variances

1. The 2014-15 Social Services Portfolio Budget Statements (PBS) contain the original financial statements budget estimates presented to Parliament in respect of the 2015 financial year.

2. The variance mainly relates to additional funding provided through the 2014-15 Portfolio Additional Estimates Statements (PAES), Portfolio Supplementary Additional Estimates Statements (PSAES) and also additional appropriation received as a part of the 23 December 2014 AAO which transferred the Early Childhood Education and Care function to DSS from the Department of Education and Training.

3. The $51.913 million Supplier expense variance is mainly a result of higher than expected information technology, communication and contractor costs for various corporate service hosting arrangements entered into with other departments as a part of implementing the September 2013 MoG. At the time of the 2014-15 Budget estimate, MoG funding transfers remained subject to negotiation. The Other expenses variance of $15.565 million is mainly related to the impairment of intangible assets which resulted from a review carried out by a professional accounting and consulting firm in 2015.

4. Total own-source income is $39.071 million higher than the 2014-15 Budget estimate mainly as a result of delivering a higher than expected volume of September 2013 MoG related MoU corporate services to other departments.

5. The movement in asset revaluation reserve is due to a site-by-site review undertaken in 2015 of DSS’ office accommodation leases that resulted in an increase in the provision for makegood.

6. Non-financial assets are $50.496 million lower than the 2014-15 Budget estimate due to the transfer of Indigenous programme land and building assets to the Department of the Prime Minister and Cabinet (PM&C) subsequent to Budget. The variance is partially offset by an increase in intangible assets that resulted from the MoG transfers to DSS for Aged Care and Early Childhood Education and Care programmes.

7. Payables are $5.907 million higher than the 2014-15 Budget estimate as a result of increased departmental operational activity.

8. Other provisions are $2.928 million higher than the 2014-15 Budget estimate as a result of an increase in the leasehold makegood provision due to changes in the estimated cost to dismantle, remove and restore items from the leasehold properties.

9. Cash received other also includes $26.594 million net GST received which was not reported in the 2014-15 Budget estimate.

10. The Cash used Other includes $70.463 million Section 74 receipts to the Official Public Account (OPA) which were reported on a net basis in the 2014-15 Budget estimate.

11. The Total cash used in investing activities variance of $24.110 million relates to purchases and development of software, due to increased activity resulting from the September 2013 MoG and MoU corporate service delivery to other departments.

235


Note 33C: Administered Budgetary Reports

Actual2015$'000


2015$'000


2015$'000


ExpensesSuppliers 965,652 1,091,783 (126,131)Subsidies 11,049,588 10,860,826 188,762Personal benefits 112,441,175 107,459,922 4,981,253Grants 2,991,888 3,418,883 (426,995)Write-down and impairment of assets 92,130 109,712 (17,582)Other expenses 666,795 211,179 455,616Total expenses3 128,207,228 123,152,305 5,054,923

Income

Revenue

Non-taxation revenueInterest 7,753 27,553 (19,800)Other revenue 278,553 333,178 (54,625)Total non-taxation revenue 286,306 360,731 (74,425)Total revenue3 286,306 360,731 (74,425)Net cost of services (127,920,922) (122,791,574) (5,129,348)Deficit (127,920,922) (122,791,574) (5,129,348)


Items not subject to subsequent reclassification to net cost of servicesChanges in asset revaluation reserve (42,481) - (42,481)Total other comprehensive (loss) / income (42,481) - (42,481)

Total comprehensive loss (127,963,403) (122,791,574) (5,171,829)

Explanations of Major Variances

1. The 2014-15 Social Services Portfolio Budget Statements (PBS) contain the original budgeted financial statements that were presented to Parliament in respect of the 2015 financial year.

2. The variance relates to additional funding provided through the 2014-15 Portfolio Additional Estimates Statements (PAES), Portfolio Supplementary Additional Estimates Statements (PSAES) and also additional appropriation received as a part of the 23 December 2014 AAO which transferred the Early Childhood Education and Care function to DSS from the former Department of Education.

3. The variance mainly relates to: delays to the passage of legislation including A New Tax System (Family Assistance)(Administration) Act 1999 and Social Security (Administration) Act 1999; policy changes at MYEFO including the Repeal of the Minerals Resource Rent Tax and related measures and changes in programme demand and parameters.

236

Note 33: Budgetary Reports and Explanations of Major Variances (continued)Note 33C: Administered Budgetary Reports

Actual

2015$'000

Budget estimate

Original12015$'000

Budget estimate

Variance2

2015$'000

ASSETSFinancial AssetsCash and cash equivalents 11,511 9,705 1,806Receivables 4,495,893 2,056,713 2,439,180Investments in Commonwealth entities and other interests 52,049 53,363 (1,314)Total financial assets3 4,559,453 2,119,781 2,439,672

Non-Financial AssetsLand and buildings - 380 (380)Other non-financial assets 44 20 24Total non-financial assets4 44 400 (356)

Total assets administered on behalf of Government 4,559,497 2,120,181 2,439,316

LIABILITIESPayablesSuppliers 61,928 56,874 5,054Subsidies 218,800 157,718 61,082Personal benefits 3,211,052 2,843,989 367,063Grants 67,277 74,215 (6,938)Total payables 3,559,057 3,132,796 426,261ProvisionsPersonal benefits and other provisions 6,336,314 5,656,475 679,839Total provisions 6,336,314 5,656,475 679,839

Total liabilities administered on behalf of Government 9,895,371 8,789,271 1,106,100

Net liabilities (5,335,874) (6,669,090)

1,333,216

Explanations of Major Variances1. The 2014-15 Social Services Portfolio Budget Statements (PBS) contain the original budgeted financial statements that were presented to Parliament in respect of the 2015 financial year.2. The variance relates to additional funding provided through the 2014-15 Portfolio Additional Estimates Statements (PAES), Portfolio Supplementary Additional Estimates Statements (PSAES) and also additional appropriation received as a part of the 23 December 2014 AAO which transferred the Early Childhood Education and Care function to DSS from the former Department of Education.3. The variance is mainly due to the reporting in the 2014-15 Social Services PBS of ($1,675.303) million appropriation receivable amount in receivables, while the financial statements report this amount in equity.4. The non-financial assets 2014-15 Budget estimate includes $0.380 million that relates to land and building in Charleville, Queensland which has been transferred to Indigenous Business Australia (IBA).

237

Case Study: Sara’s story

Sara was 13 when the war in Iraq began. Instead of spending her days at school or with friends, she and her family were forced into hiding for fear of persecution.

Sara’s family are stateless—with many restrictions placed on them including being unable to ever own a house or car. And that was before the war.

Once the war began in 2003, Sunni Muslims (particularly of Palestinian heritage) like Sara’s family were in danger. Sara’s home was sprayed with bullets, it was unsafe to go to school for months at a time, and Sara and her family were evicted from their home.

In 2006, after three long years in war-torn Baghdad, Sara and her family fled to Syria where they applied and prayed for their visa to come to Australia. Eighteen months later, their prayers were answered.

“When we arrived, I was overwhelmed, everything was different,” Sara said. “I couldn’t speak any English, the culture was so different, but at the same time I felt so welcome and supported.”

A Humanitarian Settlement Services provider supplied Sara’s family with basic furniture, kitchenware, toiletries and organised trauma counselling.

“I don’t have the words to explain how grateful we are for that support. It made me feel like this really was our new home.”

Soon after her arrival in Australia, Sara had learnt to speak English, completed Year 12, studied at TAFE, had two jobs and bought a car.

238

Part 5 AppendixesAppendix A — Changes in our Department and the portfolio after the Administrative Arrangements Order of 23 December 2014Figure A-1 Changes in ministerial responsibilities during 2014-15

Social Services Portfolio to 23 December 2014

Social Services Portfolio to 30 June 2015

Minister for Social Services

The Hon Kevin Andrews MPMinister for Social Services

The Hon Scott Morrison MP

Minister for Human Services

Senator the Hon Marise PayneMinister for Human Services

Senator the Hon Marise Payne

Assistant Minister for Social Services

Senator the Hon Mitch FifieldAssistant Minister for Social Services

Senator the Hon Mitch Fifield

Parliamentary Secretary to theMinister for Social Services

Senator the Hon Concetta Fierravanti-Wells

Parliamentary Secretary to the Minister for Social Services

Senator the Hon Concetta Fierravanti-Wells

239

Figure A-2: Changes to DSS outcomes and programmes after 23 December 2014

From Department of Education

To Department of Social Services

Outcome 1 Outcome 2: Families and Communities

Programme 1.1: Support for the Child Care System (component a)

Programme 1.4: Early Childhood Education (component b)


Programme 1.2: Child Care Benefit Programme 2.5: Child Care Benefit

Programme 1.3: Child Care Rebate Programme 2.6: Child Care Rebate

Figure A-3: Other changes to DSS programmes after 23 December 2014

From Department of Social Services

To Department of Social Services


Renamed as:


Figure A-4 Structure of Outcome 2 before and after 23 December 2014

Outcome 2before 23 December 2014

Outcome 2after 23 December 2014

Outcome 2: Families and Communities Outcome 2: Families and Communities

Programme 2.1: Families and Communities Programme 2.1: Families and Communities

Programme 2.2: Paid Parental Leave Programme 2.2: Paid Parental Leave








a The majority of activities under this programme transferred to the Department of Social Services.

b The following National Partnerships Agreements (NPA) transferred to the Department of Social Services:— NPA on the National Quality Agenda for Early Childhood Education and Care— NPA on Technical and Further Education (TAFE) Fee Waivers for Child Care Qualifications— NPA on the National Occasional Care Programme

240

Appendix B — Resource statementsTable B–1 Agency resource statement 2014–15

Actual available

appropriation for 2014-15

$'000

Payments made

2014-15$'000

Balance remaining

2014-15$'000

(a) (b) (a)–(b)

Ordinary Annual Services

Departmental appropriationa 700,293 690,773 9,520

Total 700,293 690,773 9,520

Administered expenses

Outcome 1 14,781 12,454

Outcome 2 825,151 702,554

Outcome 3 2,282,197 2,002,817

Outcome 4 70,558 2,996

Outcome 5 1,581,041 1,373,489

Payments to corporate Commonwealth entitiesb

329,762 308,433

Total 5,103,490 4,402,743

Total ordinary annual services A 5,803,783 5,093,516

Departmental non-operating

Equity injections 16,373 33,826 (17,453)

Total 16,373 33,826 (17,453)

Administered non-operating

Administered Assets and Liabilities

Payments to corporate Commonwealth entitiesb - non-operating

23,349 23,349

a This amount includes Appropriation Bill (No.1) 2014–15, Appropriation Bill (No.3) 2014–15 and Appropriation Bill (No.5) 2014–15. This may also include prior year departmental appropriation, section 74 relevant agency receipts and section 75 transfers.b On 1 July 2014, the Public Governance, Performance and Accountability Act 2013 replaced the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Authorities and Companies Act 1997 (CAC Act).

241

Actual available


$'000

Payments made

2014-15$'000

Balance remaining

2014-15$'000

Specific payments to States, ACT, NT and Local Government - Outcome 2

Total 23,349 23,349

Total other services B 39,722 57,175

Total available annual appropriations and payments

Special appropriations

Paid Parental Leave Act 2010 1,944,534

Social Security (Administration) Act 1999

86,841,783

A New Tax System (Family Assistance) (Administration) Act 1999

24,563,077

Aged Care Act 1997, Administered 10,971,775

Student Assistance Act 1973 - Section 55A (Administered)

313,914

Social and Community Services Pay Equity Special Account Act 2012

204,440

National Health Act 1953, Administered

75,017

Aged Care (Bond Security) Act 2006, Administered

8,574

Early Years Quality Fund Special Account Act 2013

165,000

Public Governance, Performance and Accountability Act 2013 - Section 77, Administered

236

Total special appropriations C 125,088,350

Special Accounts

Opening balance 133,015

Appropriation receiptsa 389,673

242

Actual available


$'000

Payments made

2014-15$'000

Balance remaining

2014-15$'000

Balance transferred from the Department of Education

24,709

Non-appropriation receipts to Special Accounts

2,790

Payments made 240,400

Total special accounts D 550,187 240,400 309,787

Total resourcing and payments A+B+C+D

6,393,692 130,479,441

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or corporate Commonwealth entities through annual appropriations

389,673 389,673

Total net resourcing and payments for DSS

6,004,019 130,089,768

Table B–2 Expenses and resources for Outcome 1: Social Security

Budgeta 2014-15

$'000

Actual Expenses

2014-15 $'000

Variation 2014-15

$'000

(a) (b) (a)–(b)

Programme 1.1: Family Tax Benefit


Ordinary Annual Services (Appropriation Bill No. 1)

- - -

Special Appropriations 21,493,736 20,956,284 537,452

Expenses not requiring appropriation in the Budget year

- - -

Total for Programme 1.1 21,493,736 20,956,284 537,452

Programme 1.2: Child Payments


a Appropriation receipts from DSS’s annual and special appropriations for 2014–15 included above.

243

Budgeta 2014-15

$'000

Actual Expenses

2014-15 $'000

Variation 2014-15

$'000


- - -

Special Appropriations 129,211 124,964 4,247


- - -

Total for Programme 1.2 129,211 124,964 4,247

Programme 1.3: Income Support for Vulnerable People



- - -



- - -


Programme 1.4: Income Support for People in Special Circumstances



1,373 640 733

Special Appropriations 4,464 4,541 (77)

Expenses not requiring appropriation in the Budget year - - -

Total for Programme 1.4 5,837 5,181 656

Programme 1.5: Supplementary Payments and Support for Income Support Recipients



8,844 8,844 -

Special Appropriations 23,271 24,601 (1,330)


- - -

Total for Programme 1.5 32,115 33,445 (1,330)

Programme 1.6: Income Support for Seniors



1,305 1,028 277

244

Budgeta 2014-15

$'000

Actual Expenses

2014-15 $'000

Variation 2014-15

$'000



- - -


Programme 1.7: Allowances, Concessions and Services for Seniors


Ordinary Annual Services (Appropriation Bill No. 1) - - -

Special Appropriations 241,829 284,145 (42,316)


- - -


Programme 1.8: Income Support for People with Disability



250 75 175



- - -


Programme 1.9: Income Support for Carers



2,800 2,785 15



- - -


Programme 1.10: Working Age Payments



198 - 198



- - -

245

Budgeta 2014-15

$'000

Actual Expenses

2014-15 $'000

Variation 2014-15

$'000


Programme 1.11: Student Payments



Special Appropriations 3,406,855 3,449,541 (42,686)


Total for Programme 1.11 3,406,855 3,449,541 (42,686)

Cross Programme: Rent Assistance



Special Appropriations - - -


Total for Cross Programme: Rent Assistance - - -


Departmental appropriation 133,282 138,347 (5,065)


11,232 12,078 (846)


Outcome 1 Totals by appropriation type



14,770 13,372 1,398


Departmental expenses



11,232 12,078 (846)

Total expenses for Outcome 1 108,380,240 107,540,988 839,252

2013-14 2014-15

246

Budgeta 2014-15

$'000

Actual Expenses

2014-15 $'000

Variation 2014-15

$'000

Staffing resources (number)b na 600a Full year budget, including any subsequent adjustment made to the 2014-15 Budget.b DSS' outcome structure has changed to better align DSS’ business. As part of this change, DSS’ outcome structure has decreased from 11 outcomes reported in 2013-14 to five outcomes in 2014-15. As a result, staffing resources (number) for 2013-14 is not disclosed.

Table B–3 Expenses and resources for Outcome2: Families and Communities Budgeta

2014-15 $'000

Actual Expenses

2014-15 $'000

Variation2014-15

$'000

(a) (b) (a)–(b)

Programme 2.1: Families and Communities


Ordinary Annual Services (Appropriation Bill No. 1) 562,506 543,998 18,508

Special Appropriations 8 (63) 71

Special Accounts 7,223 6,335 888


- - -


Programme 2.2: Paid Parental Leave





- - -






Special Account 204,440 148,158 56,282


- - -




247

Budgeta

2014-15 $'000

Actual Expenses

2014-15 $'000

Variation2014-15

$'000


Special Appropriations 135,000 - 135,000

Special Account 78,090 69,841 8,249


- - -







- - -





- - -



- - -



Departmental appropriation 207,817 206,967 850


17,513 20,378 (2,865)




Ordinary Annual Services (Appropriation Bill No. 1) Administered

799,347 703,468 95,879


Special Accounts 289,753 224,334 65,419


Departmental appropriation 207,817 206,967 850

248

Budgeta

2014-15 $'000

Actual Expenses

2014-15 $'000

Variation2014-15

$'000


17,513 20,378 (2,865)


2013-2014 2014-15

Staffing resources (number)b na 1,011a Full year budget, including any subsequent adjustment made to the 2014-15 Budget.b DSS' outcome structure has changed to better align DSS’ business. As part of this change, DSS’ outcome structure has decreased from 11 outcomes reported in 2013-14 to five outcomes in 2014-15. As a result, staffing resources (number) for 2013-14 is not disclosed.

Table B–4 Expenses and resources for Outcome3: Ageing and Aged Care

Budgeta

2014-15$'000

ActualExpenses

2014-15 $'000

Variation

2014-15 $'000

(a) (b) (a)–(b)

Programme 3.1: Access and Information


Ordinary Annual Services (Appropriation Bill No. 1) 133,826 133,739 87



- - -


Programme 3.2: Home Support


Ordinary Annual Services (Appropriation Bill No. 1) 1,641,069 1,624,274 16,795


- - -


Programme 3.3: Home Care


Ordinary Annual Services (Appropriation Bill No. 1) 500 403 97


Expenses not requiring appropriation in the Budget - - -

249

Budgeta

2014-15$'000

ActualExpenses

2014-15 $'000

Variation

2014-15 $'000

year


Programme 3.4: Residential and Flexible Care






Programme 3.5: Workforce and Quality






Program 3.6: Ageing and Service Improvement




Special Accounts - 245 (245)

Total for Program 3.6 178,067 161,671 16,396


Departmental appropriation 209,094 207,649 1,445

Expenses not requiring appropriation in the Budget year 17,621 20,877 (3,256)






Special Accounts - 245 (245)


Departmental appropriation 209,094 207,649 1,445

Expenses not requiring appropriation in the Budget year 17,621 20,877 (3,256)

250

Budgeta

2014-15$'000

ActualExpenses

2014-15 $'000

Variation

2014-15 $'000


2013-14 2014-15

Staffing resources (number)b na 1,036a Full year budget, including any subsequent adjustment made to the 2014-15 Budget.b DSS' outcome structure has changed to better align DSS’ business. As part of this change, DSS’ outcome structure has decreased from 11 outcomes reported in 2013-14 to five outcomes in 2014-15. As a result, staffing resources (number) for 2013-14 is not disclosed.

Table B–5 Expenses and resources for Outcome 4: Housing

Budgeta

2014-15 $'000

ActualExpenses

2014-15$'000

Variation2014-15

$'000

(a) (b) (a)–(b)

Programme 4.1: Housing and Homelessness






Programme 4.2: Affordable Housing


Ordinary Annual Services (Appropriation Bill No. 1) 64,790 64,790 -



Total for Programme 4.2 64,790 64,790 -


Departmental appropriation 21,093 21,931 (838)

Expenses not requiring appropriation in the Budget year 1,777 2,192 (415)







Departmental appropriation 21,093 21,931 (838)


251

Budgeta

2014-15 $'000

ActualExpenses

2014-15$'000

Variation2014-15

$'000

Total expenses for Outcome 4 90,499 91,718 (1,219)

2013-14 2014-15


Table B–6 Expenses and resources for Outcome 5: Disability and Carers Budgeta

2014-15 $'000

ActualExpenses

2014- 15$'000

Variation2014-15

$'000

(a) (b) (a)–(b)

Programme 5.1: Disability, Mental Health and Carers Programme



Special Account 475 533 (58)


Programme 5.2: National Disability Insurance Scheme














Special Accounts 475 533 (58)

252

Budgeta

2014-15 $'000

ActualExpenses

2014- 15$'000

Variation2014-15

$'000





2013-14 2014-15


253

Appendix C — Family Tax Benefit reconciliation data The purpose of Family Tax Benefit (FBT) reconciliation is to determine whether a customer was eligible to receive payment and, if so, whether they received their correct entitlement. Following each entitlement year, actual family income is reconciled with the amount of FTB paid in instalments throughout the previous year. This may result in a family receiving a top up payment, a debt being raised or no change.

Table C–1 shows reconciliation outcomes for FTB customers for the 2012–13 and 2013–14 entitlement years.

» The 2012–13 customer total includes non-lodger customers. These are customers who were eligible for the instalment payment in 2012–13 and were not reconciled by 30 June 2014

» The 2013–14 entitlement year outcomes are not final

» The majority of nil change instalment customers were ineligible for the end of year supplement because they were late meeting the reconciliation conditions, or chose to defer receipt of instalment payments (zero rate customers) and were found to be ineligible on reconciliation, or were eligible for Rent Assistance only.

Table C–1 Reconciliation outcomes, as at 30 June 2015

2012–13 2013–14Top-ups

Number of customers 1,582,552 1,559,229

Per cent of total customer number 78% 79%

Total amount $3,998m $3,947m

Average amount $2,526 $2,531

Overpayments

Number of customers 204,160 163,380


Total amount $332m $273m

Average amount $1,625 $1,672

Nil changes (instalment)



Nil changes (lump sum customer)



254

2012–13 2013–14

Grant



Non-lodgersa

Number of customers 31,187 na

Per cent of total customer number 2% na

Pending

Number of customers 12 106,041


Total

Number of customers 2,017,314 1,963,640

Table C–2 shows outstanding reconciliation debt by state for FTB customers for the 2009–10 to 2013–14 entitlement years

Table C-2 Outstanding reconciliation debt, as at 30 June 2015

State/territoryb 2009–10 2010–11 2011–12 2012–13 2013–14

Australian Capital Territory

Number of customers 55 87 282 602 866

Total outstanding debt $157,415 $188,651 $552,859 $1,261,611 $1,475,439

New South Wales

Number of customers 1,484 2,490 6,240 14,377 21,767

Total outstanding debt $3,809,169 $6,351,001 $14,619,174 $29,385,221 $41,567,065

Northern Territory



Queensland



South Australia

Number of customers 261 453 1,298 3,013 4,815

a 2013–14 non-lodgers are customers who have not reconciled their entitlement to FTB by 30 June 2015.b The state or territory is from the customer’s address at 30 June 2015, which may differ from their address when the debt was incurred.

255

State/territory 2009–10 2010–11 2011–12 2012–13 2013–14

Total outstanding debt $654,890 $1,146,643 $2,705,235 $5,633,064 $8,245,487

Tasmania

Number of customers 89 126 350 845 1,318


Victoria



Western Australia

Number of customers 569 1,051 2,675 5,953 8,686


Not recordeda


Total outstanding debt $714,439 $587,143 $528,915 $471,336 $373,700

Total


Total outstanding debt

$12,355,558 $21,240,869 $49,070,799 $99,857,412 $140,313,817

a ‘Not recorded’ includes customers with overseas addresses, addresses that are post office boxes (rather than street addresses), and invalid addresses (e.g. for people who are no longer customers).

256

Table C–3 shows FTB customers by state who had part or all of their tax refund withheld to offset a reconciliation debt for the 2009-10 to 2013-14 entitlement years. Offsets applied to non-lodger, qualification and prior year reconciliation debt are not included.

Table C-3 Customers with tax refund reconciliation offset, as at 30 June 2015

State/territorya 2009–10 2010–11 2011–12 2012–13 2013–14

Australian Capital Territory 720 1,044 1,144 1,008 987

New South Wales 13,204 19,094 19,903 18,989 20,364

Northern Territory 384 584 654 686 761

Queensland 9,572 13,164 15,426 14,422 13,972

South Australia 2,951 4,304 4,826 4,579 4,850

Tasmania 882 1,194 1,318 1,301 1,291

Victoria 10,933 15,682 16,305 15,766 17,247

Western Australia 4,739 7,037 8,237 7,678 7,322

Not recordedb 392 436 307 187 139

Totalc 43,777 62,539 68,120 64,616 66,933

Table C–4 shows the average adjusted taxable income by state for FTB customers who incurred a reconciliation debt, for the 2009–10 to 2013–14 entitlement years, including customers who were found to be ineligible on reconciliation.

Table C–4 Average adjusted taxable income for reconciliation debtors, as at 30 June 2015

State/territoryd2009–10 2010–11 2011–12 2012–13 2013–14

Australian Capital Territory $97,218 $100,458 $94,915 $96,813 $101,643

New South Wales $85,746 $91,057 $85,522 $85,337 $91,977

Northern Territory $75,719 $81,307 $81,188 $83,366 $89,456

Queensland $82,726 $87,328 $85,244 $85,164 $90,838

South Australia $83,748 $89,240 $82,881 $82,408 $87,502

Tasmania $80,983 $82,561 $74,914 $74,867 $80,938

Victoria $88,349 $92,261 $86,572 $86,006 $91,325

a The state or territory is from the customer’s address at 30 June 2015, which may differ from their address when the debt was incurred.b ‘Not recorded’ includes customers with overseas addresses, addresses that are post office boxes (rather than street addresses), and invalid addresses (for example for people who are no longer customers).c Changes to tax refund processing in 2010 temporarily reduced reconciliation offsets.d The state or territory is from the customer’s address at 30 June 2015, which may differ from their address when the debt was incurred.

257

State/territory 2009–10 2010–11 2011–12 2012–13 2013–14

Western Australia $94,159 $99,197 $96,529 $97,003 $100,704

Not recordeda $91,453 $92,148 $89,805 $93,177 $97,086

Total $86,678 $90,617 $86,397 $87,127 $92,385

Note: Only customers whose debt was incurred for payments made during the entitlement year were previously included in this table. All customers who incurred a reconciliation debt are now included to better align with tables C–2 and C–3.

Table C–5 shows the average adjusted taxable income by claim type for the 2012–13 and 2013–14 entitlement years. Customers who were found to be ineligible upon reconciliation are not included.

Table C-5 Average adjusted taxable income by claim type, as at 30 June 2015Claim type 2012–13 2013–14

Lump sum $57,090 $56,484

Instalment $82,562 $83,719

Table C–6 shows the income distribution of adjusted taxable income for the 2012–13 and 2013–14 entitlement years. Customers who were found to be ineligible upon reconciliation are not included.

Table C–6 Adjusted taxable income across ranges, as at 30 June 20152012–13 2013–14

Adjusted taxable income ($) FTB Part A customers

FTB Part B customers

FTB Part A customers

FTB Part B customers

0 to less than 20,000 400,667 395,893 319,109 315,736

20,000 to less than 40,000 377,010 371,119 424,174 419,485

40,000 to less than 60,000 329,453 300,082 320,186 299,155

60,000 to less than 80,000 287,904 207,998 267,091 200,707

80,000 to less than 100,000 269,849 146,781 245,413 140,341

100,000 to less than 150,000 138,282 145,979 131,561 137,895

150,000 to less than 200,000 4,524 8,402 4,611 7,536

200,000 to less than 250,000 609 559 574 499

250,000 to less than 300,000 174 161 173 155

300,000 or more 251 229 176 145

Total 1,808,723 1,577,203 1,713,068 1,521,654

a ‘Not recorded’ includes customers with overseas addresses, addresses that are post office boxes (rather than street addresses), and invalid addresses ( for example people who are no longer customers)

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Some families with higher incomes are eligible to receive FTB. They include:

» customers with large families

» customers who were entitled to an income support payment for part of the year

» customers whose personal circumstances change during the year (e.g. customers with new partners who were eligible for FTB as a single person but are ineligible when partnered due to increased income)

» certain groups of customers who are free of the FTB Part A or FTB Part B income tests

» Child Disability Allowance (CDA) recipients eligible for FTB Part A due to CDA savings provisions originally introduced in 1993 (CDA was not asset or income-tested, and CDA qualification entitled families to a minimum amount of Family Allowance free of any means test prior to January 1993)

Customers who are entitled to an income support payment are not subject to the FTB Part A income test or the FTB Part B primary earner income test. Certain payments, such as superannuation lump sums, are included in adjusted taxable income but these do not necessarily preclude customers from receiving income support.

Table C–7 shows the percentage of customers who incurred an FTB debt by debt and payment type for the 2011–12 and 2012–13 entitlement years, including customers who were found to be ineligible on reconciliation.

Table C–7 Percentage of customers incurring an FTB debt as at 30 June 2015

2011–12 2012–13

Debt type FTB Part A customers (%)

FTB Part B customers (%)

FTB Part A customers (%)

FTB Part B customers (%)

Qualification debt 2.4% 2.7% 3.5% 4.0%

Reconciliation debt 10.3% 11.8% 10.6% 11.9%

Non-lodger debt 3.5% 4.0% 3.6% 4.0%

Note: Debt levels measured at 30 June 2014 for 2011–12 and at 30 June 2015 for 2012–13

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Appendix D — Changes to disability reportingSince 1994, Australian Government departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. To see these reports, go to the Australian Public Service Commission website.

From 2010–11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010–2020 (the Strategy), which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports will be available in late 2015. Go to the Department of Social Services website.

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http://www.apsc.gov.au/

http://www.apsc.gov.au/

Appendix E — Compliance with the Carer Recognition Act 2010Through the Carer Recognition Act 2010 (the Act), the Australian Government recognises the exceptional contribution made by unpaid carers.

The Act stipulates that carers should have the same rights, choices and opportunities as other Australians. To help achieve this, the Act sets out reporting and consultation obligations for Australian Public Service agencies with responsibilities towards carers.

Section 7(1) — Each public service agency is to take all practicable measures to ensure that its employees and agents have an awareness and understanding of the Statement for Australia’s Carers.DSS promotes staff awareness and understanding of the Act and the statement through its intranet and other departmental resources. Posters promoting understanding of the role of carers and the statement are displayed in all DSS workplaces.

DSS informs the general public about the statement on its website. Go to The Department of Social Services website. DSS also funds Carers Australia to coordinate and manage National Carers Week activities each October. These activities raise the general public’s awareness of carers and their role, and inform carers about available services and assistance.

Section 7(2) — Each public service agency’s internal human resources policies, so far as they may significantly affect an employee’s caring role, are to be developed having due regard to the Statement for Australia’s Carers.DSS human resources policies comply with the principles contained in the Statement for Australia’s Carers.

DSS enterprise agreements include special carers leave entitlements and ensure that staff can access health and diversity rooms when they are required to deal with unforeseen caring responsibilities.

DSS human resources officers are available to advise employees with caring responsibilities and to help them access respite services. Staff can have free counselling arranged through the Employee Assistance Programme.

The DSS intranet also provides employees and managers information about carers’ entitlements and internal and external resources, including links to fact sheets and articles.

Section 8(1) — Each public service care agency is to take all practicable measures to ensure that it, and its employees and agents, take action to reflect the principles of the Statement for Australia’s Carers in developing, implementing, providing or evaluating care supports.DSS’ standard funding agreement terms and conditions oblige funding recipients to comply with relevant laws, Australian Government policies, codes of ethics, regulations or industry standards relevant to the activity.

Section 8(2) — Each public service care agency is to consult carers, or bodies that represent carers, when developing or evaluating care supports.In 2014–15 individual carers and representatives of carer organisations participated in consultations about reforms to the aged care and disability systems.

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DSS continues to fund advocacy agencies and peak bodies to represent carers’ issues to the Australian Government and the Department.

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Appendix F — Fraud Control CertificateCERTIFICATION OF DEPARTMENTAL FRAUD CONTROL ARRANGEMENTS

I certify that I am satisfied that DSS, in accordance with the Commonwealth Fraud Control Policy, has:

appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes in place;

taken all reasonable measures to minimise the incidence of fraud and to investigate and recover the proceeds of fraud;

completed fraud risk assessments; and

a current Fraud Control Plan.

Finn Pratt AO PSMSecretary

12 August 2015

263

Appendix G — Staffing statisticsTables G–1 and G–2 provide statistics on ongoing and non-ongoing staff at 30 June 2015 by location, actual classification (including backfilling for leave) and gender; figures for the previous year are shown in parentheses.

Table G–3 gives details on performance payments made in 2014–15.

Table G–1 Ongoing staff employed, by actual classification, gender and location, as at 30 June 2015

Location and classification

Female Male Total

Part-time Full-time Part-time Full-time

Australian Capital Territory 396 (377)

1,278 (1,297)

52 (52)

820 (822)

2,546 (2,548)

APS Level 1 3 (3) 0 (4) 3 (2) 0 (2) 6 (11)

APS Level 2 1 (1) 7 (3) 5 (6) 12 (9) 25 (19)

APS Level 3 2 (3) 41 (41) 2 (1) 26 (28) 71 (73)

APS Level 4 19 (16) 70 (95) 0 (1) 29 (50) 118 (162)

APS Level 5 46 (51) 166 (193) 6 (6) 75 (80) 293 (330)

APS Level 6 136 (123) 354 (324) 12 (12) 191 (182) 693 (641)

Legal 1 0 (0) 0 (1) 0 (0) 0 (2) 0 (3)

Legal 2 0 (1) 0 (1) 0 (0) 0 (2) 0 (4)

Legal Officer 1 (0) 8 (11) 0 (0) 4 (2) 13 (13)

Senior Legal Officer 5 (4) 5 (4) 0 (0) 2 (2) 12 (10)

Principal Legal Officer 5 (4) 3 (2) 0 (0) 5 (3) 13 (9)

Legal Special Counsel 0 (0) 1 (1) 0 (0) 0 (0) 1 (1)

Public Affairs Officer Grade 1 0 (1) 0 (0) 0 (0) 0 (0) 0 (1)



Senior Public Affairs Officer 0 (0) 3 (5) 0 (0) 2 (1) 5 (6)

EL 1 and equivalent 145 (138) 368 (386) 18 (18) 274 (273) 805 (815)


SES Band 1 2 (3) 51 (38) 1 (0) 33 (30) 87 (71)

SES Band 2 0 (0) 10 (11) 0 (0) 13 (9) 23 (20)a

SES Band 3 0 (0) 5 (4) 0 (0) 2 (2) 7 (6)a

a Numbers include two Canberra based staff backfilling at the SES Band 2 level, and two backfilling at the SES Band 3 level.

264


Female Male Total

Secretary 0 (0) 0 (0) 0 (0) 1 (1) 1 (1)

New South Wales 59 (57) 141 (144) 7 (8) 85 (81) 292 (290)

APS Level 2 1 (1) 0 (0) 0 (0) 1 (0) 2 (1)

APS Level 3 0 (0) 5 (0) 0 (0) 1 (0) 6 (0)

APS Level 4 2 (2) 8 (12) 0 (0) 7 (3) 17 (17)

APS Level 5 16 (16) 39 (35) 1 (1) 18 (19) 74 (71)

APS Level 6 29 (31) 58 (67) 4 (5) 41 (39) 132 (142)



Senior Legal 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

SES Band 1 1 (0) 1 (1) 0 (0) 0 (0) 2 (1)

Public Office Holder 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

Victoria 60 (50) 102 (100) 4 (7) 65 (65) 231 (222)

APS Level 1 1 (1) 0 (0) 0 (0) 0 (0) 1 (1)

APS Level 2 0 (0) 0 (0) 0 (0) 1 (1) 1 (1)

APS Level 3 0 (0) 1 (3) 0 (0) 0 (1) 1 (4)

APS Level 4 4 (3) 11 (9) 1 (0) 4 (3) 20 (15)

APS Level 5 10 (12) 27 (19) 1 (1) 13 (17) 51 (49)

APS Level 6 40 (31) 38 (49) 2 (5) 31 (25) 111 (110)



SES Band 1 0 (0) 2 (3) 0 (0) 0 (0) 2 (3)

Queensland 37 (34) 104 (118) 3 (1) 36 (44) 180 (197)

APS Level 2 0 (1) 2 (1) 0 (0) 0 (0) 2 (2)

APS Level 3 1 (1) 5 (5) 0 (0) 0 (0) 6 (6)

APS Level 4 7 (4) 11 (10) 0 (0) 5 (5) 23 (19)

APS Level 5 9 (9) 23 (24) 0 (0) 4 (6) 36 (39)

APS Level 6 15 (13) 41 (53) 3 (1) 15 (21) 74 (88)



SES Band 1 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Western Australia 22 (17) 56 (46) 1 (1) 23 (23) 102 (87)

APS Level 3 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

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Female Male Total

APS Level 4 2 (1) 6 (5) 0 (0) 1 (0) 9 (6)

APS Level 5 7 (6) 16 (12) 1 (1) 8 (6) 32 (25)

APS Level 6 11 (8) 20 (17) 0 (0) 10 (9) 41 (34)



SES Band 1 0 (0) 1 (1) 0 (0) 0 (0) 1 (1)

South Australia 21 (17) 62 (64) 4 (4) 20 (22) 107 (107)

APS Level 2 0 (0) 1 (1) 0 (0) 0 (0) 1 (1)

APS Level 3 0 (0) 0 (1) 1 (0) 0 (0) 1 (1)

APS Level 4 2 (2) 5 (5) 0 (0) 0 (1) 7 (8)

APS Level 5 7 (6) 19 (15) 1 (1) 3 (3) 30 (25)

APS Level 6 11 (9) 27 (29) 1 (2) 9 (10) 48 (50)



SES Band 1 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Tasmania 16 (14) 29 (30) 3 (3) 9 (8) 57 (55)

APS Level 3 0 (0) 2 (2) 0 (0) 0 (0) 2 (2)

APS Level 4 1 (0) 2 (5) 0 (0) 0 (0) 3 (5)

APS Level 5 10 (6) 11 (7) 1 (1) 2 (2) 24 (16)

APS Level 6 3 (7) 12 (13) 1 (1) 4 (3) 20 (24)



Northern Territory 7 (3) 29 (24) 0 (0) 3 (5) 39 (32)

APS Level 4 1 (0) 1 (2) 0 (0) 0 (0) 2 (2)

APS Level 5 2 (2) 4 (14) 0 (0) 2 (1) 8 (11)

APS Level 6 2 (1) 15 (10) 0 (0) 1 (2) 18 (13)



DSS total 618 (569) 1,801 (1,823)

74 (76) 1,061 (1,070)

3,554 (3,538)Notes:

APS equivalents for DSS classifications: Senior Public Affairs Officer = EL 2; Public Affairs Officer 3 = EL 1; Public Affairs Officer 2 = APS Level 6; Public Affairs Officer 1 = APS Level 4–5; Special Counsel/Deputy Branch Manager = EL 2 (top salary point); Principal Legal Officer = EL 2; Senior Legal Officer = EL 1; Legal Officer = APS Level 3–6

Numbers in parentheses are for the preceding year.

266

Table G–2 Non-ongoing staff employed, by actual classification, gender and location, as at 30 June 2015

Location and classification Female staff Male staff Total

Part-time Full-time Part-time Full-time

Australian Capital Territory 14 (4) 56 (8) 4 (4) 18 (6) 92 (22)

APS Level 1 0 (1) 0 (0) 0 (1) 0 (0) 0 (2)

APS Level 2 3 (0) 1 (0) 1 (0) 0 (0) 5 (0)

APS Level 3 0 (0) 0 (2) 1 (0) 1 (0) 2 (2)

APS Level 4 1 (1) 30 (1) 0 (0) 7 (3) 38 (5)

APS Level 5 1 (1) 7 (1) 0 (0) 3 (1) 11 (3)

APS Level 6 1 (0) 5 (3) 0 (1) 3 (1) 9 (5)



Senior Public Affairs Officer 1 (0) 0 (0) 0 (0) 1 (0) 2 (0)



SES Band 2 0 (0) 0 (0) 0 (0) 0 (1) 0 (1)

New South Wales 2 (0) 1 (1) 0 (0) 0 (0) 3 (1)

APS Level 2 2 (0) 0 (0) 0 (0) 0 (0) 2 (0)

APS Level 4 0 (0) 1 (1) 0 (0) 0 (0) 1 (1)

Victoria 0 (0) 2 (1) 0 (0) 0 (0) 2 (1)

APS Level 5 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

APS Level 6 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Public Office Holder 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

Queensland 2 (0) 1 (0) 1 (0) 1 (1) 5 (1)

APS Level 2 2 (0) 0 (0) 1 (0) 0 (0) 3 (0)

APS Level 4 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

APS Level 6 0 (0) 0 (0) 0 (0) 1 (1) 1 (1)

Western Australia 0 (0) 0 (0) 0 (0) 0 (0) 0 (0)

South Australia 0 (0) 0 (2) 0 (0) 0 (0) 0 (2)

APS Level 4 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

APS Level 6 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Tasmania 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

APS Level 6 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

267

Location and classification Female staff Male staff Total

Northern Territory 2 (0) 0 (2) 0 (0) 1 (0) 3 (2)

APS Level 2 1 (0) 0 (0) 0 (0) 0 (0) 1 (0)

APS Level 5 1 (0) 0 (0) 0 (0) 0 (0) 1 (0)

APS Level 6 0 (0) 0 (2) 0 (0) 1 (0) 1 (2)

DSS total 20 (4) 60 (15) 5 (4) 20 (7) 105 (30)Notes:

APS equivalents for DSS classifications: Senior Public Affairs Officer = EL 2; Public Affairs Officer 3 = EL 1; Public Affairs Officer 2 = APS Level 6; Public Affairs Officer 1 = APS Level 4–5; Special Counsel/Deputy Branch Manager = EL 2 (top salary point); Principal Legal Officer = EL 2; Senior Legal Officer = EL 1; Legal Officer = APS Level 3–6.

Numbers in parentheses are for the preceding year.

Our Department provides flexible remuneration arrangement. The salary ranges below reflect what is available under out current seven enterprise agreements and preserved through the Public Service Act 1999 section 24(3) determinations issues in relation to the Administrative Arrangements Order of 18 September 2013.

Table G–3 Salary ranges by APS classification level, as at 30 June 2015Classification Range of salaries

APS Level 1 $46,425 – $49,516

APS Level 2 $52,709 – $56,680

APS Level 3 $58,472 – $62,837

APS Level 4 $65,398 – 69,103

APS Level 5 $71,069 – $76,271

APS Level 6a $83,488 – $97,137

EL 1a $101,278 – $123,603

EL 2a $123,787 – $148,759

SES Band 1 $150,667 – $206,754

SES Band 2/ Band 3 $202,632 – $300,000

Notes:

APS equivalents for DSS classifications: Senior Public Affairs Officer = EL 2; Public Affairs Officer 3 = EL 1; Public Affairs Officer 2 = APS Level 6; Public Affairs Officer 1 = APS Level 4–5; Special Counsel/Deputy Branch Manager = EL 2 (top salary point); Principal Legal Officer = EL 2; Senior Legal Officer = EL 1; Legal Officer = APS Level 3–6.

a Where the non- SES Individual Flexibility Agreement salary is higher than the classification against each enterprise agreement, the IFA salary for the classification is used.

268

Appendix H — Work Health and SafetyInitiatives and health and safety outcomesInitiatives taken during the year to ensure the health, safety and welfare of workers include:

» a completed review of accepted claims designed to identify those injuries which have the biggest impact on the department in terms of lost hours and costs

» the design of intervention strategies, including information sheets for managers in relation to Early Intervention

» a new Integrated Safety and Rehabilitation Management System has been scoped and approved to ensure Work Health and Safety and Rehabilitation standards are met and maintained into the foreseeable future

» membership of both the SES and EL2 Working Group on Managing Workers Compensation in the Commonwealth and participation in an inter-departmental pilot into effective Early Intervention.

Greater engagement with treating practitioners and rehabilitation providers has resulted in improved Return to Work hours for a number of Comcare cases, and has reduced the total time away from work.

Notifiable incidentsIn 2014–15 there were four notifiable incidents. These were in relation to one death, two serious personal injuries and one dangerous occurrence.

Investigations by the regulator under Part 10 of the Work Health and Safety Act 2011No investigations were carried out under Part 10 of the Work Health and Safety Act for our Department.

Other mattersThere were no other matters as are required by guidelines approved on behalf of the Australian Parliament by the Joint Committee of Public Accounts and Audit.

269

Appendix I — Advertising and market researchDuring 2014–15, DSS carried out market research and advertising activities for:

» Aged Care Reform

» South Australian Age Pension and Pensioner Concessions

» Paid Parental Leave.

For further information on those activities go to The Department of Social Services website, and The Department of Finance website for the reports on Australian Government advertising prepared by the Department of Finance.

The organisations listed below provided advertising and market research activities that supported advertising campaigns and social policy design.

Table I–1 Payments to creative advertising agencies in 2014–15

Provider Service providedAmount paid$ (GST incl.)

26 Letters Communications and Public Relations

Creative design and editorial services 55,924

26 Letters Communications and Public Relations


KWP Advertising Pty Ltd t/a Possum Palace Pty Ltd


Total 384,643

Table I–2 Payments to market research and polling organisations in 2014–15


Colmar Brunton Pty Limited Market research 19,999

GfK Australia Pty Ltd Market research 163,955

Orima Research Pty Ltd Market research 87,923


Orima Research Pty Ltd Assessment and evaluation of services 27,650


Orima Research Pty Ltd Social policy research 227,014


Orima Research Pty Ltd Strategic advice and review services 73,480

Orima Research Pty Ltd Report – downward variation estimates – 54,750

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http://www.finance.gov.au/advertising/index.html



MoG from Education – CN2667252

Orima Research Pty Ltd Strategic advice and review services 49,544


Sweeney Research Pty Ltd Survey of Aged Care Homes 44,347

Taylor Nelson Sofres Australia Pty Limited

Market research 161,776

Total 1,355,338

Table I–3 Payments to direct mail organisations in 2014–15


National Mailing & Marketing Pty Limited

Distribution of publications and products80,799

Total 80,799

Table I–4 Payments to media advertising organisations in 2014–15


Mitchell & Partners Australia Pty Ltd

Recruitment advertising 53,626


Non-campaign advertising – Quality and Safeguards 44,474


Advertising 499,267


Advertising regarding DSS grant funding 68,373


Advertising for the Disability Employment Framework 20,632


Public notices for the My Aged Care Regional Assessment Service Request for Tender

30,815


Advertising to raise awareness of the new intercountry adoption support service 63,291


Advertising to raise awareness of the Stronger Relationships trial 152,526

Total 933,004

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Appendix J — Ecologically sustainable development and environmental performance Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires Australian Government agencies to report against two core criteria:

» how the agency accords with and contributes to the principles of ecologically sustainable development (ESD)

» the environmental performance of the agency, including the impact of its activities on the natural environment, how these are mitigated and how they will be further mitigated.

The following sections specifically address the requirements of section 516A of the EPBC Act.

How DSS accords with and contributes to environmentally sustainable developmentOur Department addresses the ESD principles of inter-generational equity and improved valuation, pricing and incentive mechanisms through its procurement policy and the Green Lease Schedule (GLS) to property leases. ESD principles relating to scientific certainty and biological diversity are generally of limited application to the Department’s activities. The Department does not administer any legislation that has a direct impact on ecologically sustainable development.

Environmental performanceOur Department’s sustainability framework includes an environmental policy, an environmental management system, a register of aspects and impacts on the environment and an environmental action plan to address those impacts.

Environmental Management SystemOur Department’s Environmental Management System is a structured management tool for identifying and minimising the impacts of the Department’s activities on the environment. At the core of the system is a corporate environmental policy that accords with the principles of ecologically sustainable development. The environmental policy states:

We at the Department commit to integrating sustainable workplace practices into our activities in order to improve our environmental performance.

The system contains procedures and registers for identifying legal and other obligations; identifying potential and actual risks to the environment from the Department’s activities, products or services, and addressing those risks through an action plan; communicating to staff and stakeholders; and assessing compliance with our plans.

272

A rolling environmental action plan has been developed to ensure that any environmental impacts caused by the Department’s operations are mitigated.

Environmentally Conscious Office StaffOur Department has established an Environmentally Conscious Office Staff network at our sites across Australia. The network’s role is to encourage environmentally sustainable practices in the workplace.

Measures taken to minimise the effect of activities on the environment The following tables provide quantitative information on the measures taken by DSS to minimise the effect of activities on the environment.

Table J–1 Energy, waste and water efficiency measures and monitoring mechanismsTheme Measures taken Mechanisms for

monitoring and review

Energy NABERS (National Australian Built Environment Reporting System) assessments were undertaken at the following sites, all of which have Green Lease Schedules (GLS) in place:

Centennial Plaza (levels 8 and 9), Sydney achieved a 5 star NABERS energy tenancy rating valid until June 2016.

Holwell Street, Greenway achieved a 5 star NABERS Energy Whole Building rating, valid until June 2016.

Although the Tuggeranong Office Park lease does not have a GLS, a NABERS assessment is undertaken annually because it is our largest tenancy. The assessment is only undertaken on D block, which achieved a six-star NABERS energy tenancy rating in October 2014. Energy consumption data is based on estimates consistent with lease terms.

Building Management Committee meetings are conducted as required by GLS.

Conduct annual NABERS assessments to ensure energy consumption is minimised.

Continue to conduct Building Management Committee meetings.

DSS participated in Earth Hour 2015. Continue to participate in Earth Hour each year.

Waste DSS has been a signatory to the ACT Government ACTSmart Office Program since 2010. Participation in the program leads to accreditation as an ACTSmart Office, which recognises offices that actively recycle. Reducing the amount of waste sent to landfill will reduce our impact on the environment.

Regularly monitor the amount of waste removed from Canberra based sites.

Continue to examine new ways of reducing waste to landfill.

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Theme Measures taken Mechanisms for monitoring and review

Organic waste from all Canberra based sites is separated and sent to a worm farm.

Batteries, printer cartridges and fluorescent tubes are recycled.

Water Fifty-one rainwater tanks with a total capacity of 203,020 litres are installed across the grounds of the Tuggeranong Office Park. The water is used to offset the use of potable water for landscape irrigation.

Table J–2 Progress against targets set in Australian Government ICT Sustainability Plan 2010–2015Target area Progress against targets

Paper (post-consumer recycled content)

General use office copy paper used by DSS has a minimum post-consumer recycled content of 50%. We are currently trialling the use of 100% post-consumer recycled content paper.

Internal copy paper per end user Accurate data for paper use per person is not available. The default printer preferences for all staff have been set to print double-sided.

Desktop computers to printer ratio DSS is working to meet the desktop computers to printer ratio targets of 20:1.

Desktop devices (including laptops per end user)

DSS has met the desktop devices per end user target set for 2015 of 1.2:1.

Desktop computers off after hours DSS has met the 2015 Australian Government target of 90%of desktop computers shut down after hours.

The following table details DSS’s environmental performance data in respect of energy and waste production.

Table J–3 Environmental performance indicators

Theme Performance Measure Indicator(s) 2013–2014 2014–2015

Energy efficiency

Total consumption of energy in buildings

Tenant light and powera

Electricity consumption(kWh)b

8,445,564 7,405,269

Total consumption of Vehicle fuels consumed (L)c

a Figures for 2014–2015 are yet to be finalised and are not readily comparable given the effects of MoG changes.b Figures for 2014–15 are not readily comparable given the effects of MoG changes on the DSS property portfolio.c Fuel consumption in vehicles data is based on the 2014–15 Fringe Benefits Tax year. The deviation in data for

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Theme Performance Measure Indicator(s) 2013–2014 2014–2015

energy in vehicles

Diesel (L) 171,608 16,097

E10 (Biofuel) (L) 25,347 12,817

Unleaded petrol (L) 86,764 43,532

Motor vehicle distance travelled (km)

2,110,594 969,910

Air travel distance (km)d 18,339,723 11,403,078

Waste data

Office paper waste production (national)

Waste paper to recycling facilities (tonnes)

205.5 169.35

Comingled recycling (including cardboard but excluding office paper) (Canberra Sites)

Comingled waste to recycling facilities (tonnes)

36.4 41

Organic waste (Canberra sites)

Organic waste to worm farms (litres)

Unavailable 16,320

Landfill Landfill waste to ACT landfill (tonnes)

74.6 89

fuel consumption in vehicles is due to changed fleet profile following MoG changes.d Air travel has reduced due to MoG changes as well as increased use of alternative methods of contact such as video-conferencing.

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Appendix K — List of abbreviations and acronyms AAGE Australian Association of Graduate Employers

AASB Australian Accounting Standards Board

AAT Administrative Appeals Tribunal

ABS Australian Bureau of Statistics

ACAP Aged Care Assessment Program

ACAR Aged Care Approvals Round

ACAT Aged care Assessment Team

ACT Australian Capital Territory

ANAO Australian National Audit Office

ANROWS Australian National Research Organisation for Women’s Safety

APS Australian Public Service

AWAs Australian Workplace Agreements

BBF Budget Based Funded

BMA Bilateral management arrangement

BSWAT Business Services Wage Assessment Tool

CAC Act Commonwealth Authorities and Companies Act 1997

CALD Culturally and linguistically diverse

CCB Child Care Benefit

CCR Child Care Rebate

CCS Complex Case Support

CCSSP Child Care Services Support Programme

CDA Child Disability Allowance

CDC Consumer directed care

CFC Commonwealth Financial Counselling

CFC FP’s Communities for Children Facilitating Partner

CHSP Commonwealth Home Support Programme

COAG Council of Australian Governments

CRMP Commonwealth Risk Management Policy

CRS Australia Commonwealth Rehabilitation Service

DACS Dementia and Aged Care Services

DAPP Dad and Partner Pay

DES Disability Employment Services

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DES–DMS Disability Employment Services –Disability Management Service

DES–ESS Disability Employment Services –Employment Support Service

DHS Department of Human Services

DSP Disability Support Pension

DSS Department of Social Services

DVO Domestic Violence Order

DTC Day Therapy Centre

EA Enterprise Agreement

ECCC Early Childhood and Child Care.

EL Executive Level

EMG Executive Management Group

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

ER Emergency Relief

ESD Ecologically sustainable development

FBT Fringe Benefits Tax

FC Financial Capability

FECCA Federation of Ethnic Communities Councils of Australia Inc.

FMA Act Financial Management and Accountability Act 1997

FOI Act Freedom of Information Act 1982

FRR Financial Reporting Rule

FTB Family Tax Benefit

GLS Green Lease Schedules

GST Goods and Services Tax

HACC Home and Community Care

HILDA Household Income and Labour Dynamics in Australia

HIPPY Home Interaction Programme for Parents and Youngsters

HOME Household Organisational Management Expenses

HR Human Resource

HSS Humanitarian Settlement Services

ICL Indigenous Community Links

ICT Information communication and technology

IFA Individual flexibility agreement

IPS Information Publication Scheme

IT Information technology

JETCCFA Jobs, Education and Training Child Care Fee Assistance

KPI Key Performance Indicator

LGBTI Lesbian, gay, bisexual, transgender and intersex people

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MoG Machinery of Government

MP Member of Parliament

NAATI National Accreditation Authority for Translators and Interpreters

NABERS National Australian Built Environment Reporting System

NAIDOC National Aboriginal and Islander Day Observance Committee

NDAP National Disability Advocacy Programme

NDIA National Disability Insurance Agency

NDIS National Disability Insurance Scheme

NRAS National Rental Affordability Scheme

NRCP National Respite for Carers Programme

NSW New South Wales

NT Northern Territory

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PGPA Act Public Governance, Performance and Accountability Act 2013

PID Act Public Interest Disclosure Act 2013

PLP Parental Leave Pay

RSPC Random Sample Parent Checks

SDF Sector Development Fund

SES Senior Executive Service

SME Small and Medium Enterprises

SSAT Social Security Appeals Tribunal

TAFE Technical and Further Education

TILA Transition to Independent Living Allowance

VET Vocational Education and Training

WA Western Australia

WHS Work Health and Safety

Abbreviations and conventions— Nil

na Not available

$m $ million

$b $ billion

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Case study - Innovative DSS Data Exchange improves the wellbeing of Australians

The Australian community is benefiting from a new approach to collecting and using information from service providers from across the nation.

This approach provides a stronger understanding of the collective impact of the Department’s services on people and families in Australia.

The DSS Data Exchange, introduced on 1 July 2014 as part of the reforms to grant agreements, shifts the focus of programme performance measurement from outputs, to more meaningful information about client and community outcomes.

As part of this approach, a new IT system has been developed to provide simple and easy ways for service providers to submit programme performance information to the Department. Service providers can choose how they would like to submit data based on their business processes, using either a free web-based portal or automatically transferring information to DSS from their case management system.

The name — DSS Data Exchange — reflects the two-way focus of collecting data from service providers, and sharing it with them through self-service reports. DSS is investing in an innovative and sophisticated self-service reporting suite that will enable both DSS staff and service providers to better use programme data. This outcomes-focused information will support evidence-based decision-making by providers and by government.

Service providers participating in a partnership approach with the Department will have unprecedented access to information relevant to their local community, including whole of programme data, client survey data and population data sets. The self-service reports will provide insights that can inform planning decisions, improve service delivery and achieve better outcomes for clients and their community.

The DSS Data Exchange will improve the way we do business for programme management, policy development, research, and evaluation. The introduction of the DSS Data Exchange will support DSS efforts to improve the lifetime wellbeing of people and families across Australia.

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Compliance indexList of requirements Index of information provided in compliance with 2015 Requirements for Annual Reports for Departments, Executive Agencies and other Non-corporate Commonwealth entities.

Description Requirement

Letter of transmittal Mandatory

Aids to access Requirement

Table of contents Mandatory

Index, see; Index of tables and figures, Alphabetical index not included in the electronic version (please use the search function) Mandatory

Glossary Mandatory

Contact officer(s) Mandatory

Internet home page address and internet address for report Mandatory

Review by Secretary Requirement

Review by the Secretary of the Department of Social Services Mandatory

Summary of significant issues and developments Suggested

Overview of department’s performance and financial results Suggested

Outlook for following year Suggested

Significant issues and developments – portfolio, see; Secretary’s review and Appendix A

Portfolio departments – suggested

Departmental overview Requirement

Role and functions, see; Chapter 1 and Our department Mandatory

Organisational structure Mandatory

Outcome and programme structure, see; Figure 0.1, Chapter 1 and Figure A-2 Mandatory

Where outcome and programme structures differ from Portfolio Mandatory

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Departmental overview Requirement

Budget Statements (PBS)/Portfolio Additional Estimates Statements (PAES) or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change, see; Table 4.10 and Figure A-2

Portfolio structure Portfolio departments – mandatory

Report of performance Requirement

Review of performance during the year in relation to programmes and contribution to outcomes Mandatory

Actual performance in relation to deliverables and key performance indicators set out in PBS / PAES or other portfolio statements Mandatory

Where performance targets differ from the PBS / PAES, details of both former and new targets, and reasons for the change Mandatory

Narrative discussion and analysis of performance Mandatory

Trend information Mandatory

Significant changes in nature of principal functions/services, see; Our Department and Our performance Suggested

Performance of purchaser/provider arrangements If applicable, suggested

Factors, events or trends influencing departmental performance Suggested

Contribution of risk management in achieving objectives Suggested

Performance against service charter customer service standards, complaints data, and the department’s response to complaints

If applicable, mandatory

Discussion and analysis of the department’s financial performance Mandatory

Discussion of any significant changes in financial results from the prior year, from budget or anticipated to have a significant impact on future operations.

Mandatory

Agency resource statement and summary resource tables by outcomes Mandatory

Corporate Governance Requirement

Agency heads are required to certify their agency’s actions in dealing with fraud Mandatory

Statement of the main corporate governance practices in place Mandatory

Names of the senior executive and their responsibilities Suggested

Senior management committees and their roles Suggested

Corporate and operational plans and associated performance Suggested

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Corporate Governance Requirement

reporting and review

Internal audit arrangements including approach adopted to identifying areas of significant financial or operational risk and arrangements to manage those risks

Suggested

Policy and practices on the establishment and maintenance of appropriate ethical standards Suggested

How nature and amount of remuneration for Senior Executive Service officers is determined Suggested

External scrutiny Requirement

Significant developments in external scrutiny Mandatory

Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner Mandatory

Reports by the Auditor-General, a parliamentary committee, the Commonwealth Ombudsman or an agency capability review Mandatory

Management of Human Resources Requirement

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives Mandatory

Workforce planning, staff retention and turnover Suggested

Impact and features of enterprise or collective agreements, individual flexibility arrangements (IFAs), determinations, common law contracts and Australian Workplace Agreements (AWAs)

Suggested

Training and development undertaken and its impact, see; Fraud awareness and Graduate programme Suggested

Work health and safety performance, see; Work health and safety and Appendix H Suggested

Productivity gains Suggested

Statistics on staffing Mandatory

Statistics on employees who identify as Indigenous Mandatory

Enterprise or collective agreements, IFAs, determinations, common law contracts and AWAs Mandatory

Performance pay Mandatory

Assets management Requirement

Assessment of effectiveness of assets management If applicable, mandatory

282

Purchasing Requirement

Assessment of purchasing against core policies and principles Mandatory

Consultants Requirement

The annual report must include a summary statement detailing:

the number of new consultancy services contracts let during the year

the total actual expenditure on all new consultancy contracts let during the year (inclusive of Goods and Services Tax (GST))

the number of ongoing consultancy contracts that were active in the reporting year

the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website.

Mandatory

Australian National Audit Office Access Clauses Requirement

Absence of provisions in contracts allowing access by the Auditor-General Mandatory

Exempt contracts Requirement

Contracts exempted from publication in AusTender Mandatory

Small business Requirement

Procurement initiatives to support small business Mandatory

Financial Statements Requirement

Financial StatementsMandatory

Other Mandatory Information Requirement

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011) Mandatory

Advertising and Market Research (section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory

Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and

Mandatory

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Other Mandatory Information Requirement

Biodiversity Conservation Act 1999 )

Compliance with the agency’s obligations under the Carer Recognition Act 2010

If applicable, mandatory

Grant programmes Mandatory

Disability reporting – explicit and transparent reference to agency - level information available through other reporting mechanisms

Mandatory

Information Publication Scheme statement Mandatory

Correction of material errors in previous annual report If applicable, mandatory

Agency Resource Statements and Resources for Outcomes Mandatory

List of Requirements Mandatory

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Index of tables and figuresTablesTable 4.1 Family Tax Benefit — deliverables

Table 4.2 Family Tax Benefit — key performance indicators

Table 4.3 Child Payments — deliverables

Table 4.4 Child Payments — deliverable targets

Table 4.5 Child Payments — key performance indicators

Table 4.6 Income Support for Vulnerable People — deliverables

Table 4.7 Income Support for Vulnerable People — key performance indicators

Table 4.8 Income Support for People in Special Circumstances — deliverables

Table 4.9 Income Support for People in Special Circumstances — key performance indicators

Table 4.10 Supplementary Payments and Support for Income Support Recipients — deliverables

Table 4.11 Supplementary Payments and Support for Income Support Recipients — key performance indicators

Table 4.12 Income Support for Seniors — deliverables

Table 4.13 Income Support for Seniors — key performance indicators

Table 4.14 Allowances and Concessions for Seniors — deliverables

Table 4.15 Allowances and Concessions for Seniors — key performance indicators

Table 4.16 Income Support for People with Disability — deliverables

Table 4.17 Income Support for People with Disability — key performance indicators

Table 4.18 Income support for carers— deliverables

Table 4.19 Income support for carers — key performance indicators

Table 4.20 Working Age Payments — deliverables

Table 4.21 Working Age Payments — key performance indicator targets

Table 4.22 Student Payments — deliverables

Table 4.23 Student Payments — key performance indicators

Table 4.24 Rent Assistance — deliverables

Table 4.25 Rent Assistance — key performance indicators

Table 4.26 Fortnightly average rent and Rent Assistance by primary payment type

Table 4.27 Fortnightly average rent and Rent Assistance by income unit type



Table 5.1 Families and Communities — deliverables

Table 5.2 Families and Communities — key performance indicators

285

Table 5.3 Paid Parental Leave — deliverables

Table 5.4 Paid Parental Leave — key performance indicators

Table 5.5 Social and Community Services — deliverables

Table 5.6 Social and Community Services — key performance indicators

Table 5.7 Support for the Child Care System — deliverables

Table 5.8 Support for the Child Care System — key performance indicators

Table 5.9 Child Care Benefit — deliverables

Table 5.10 Child Care Benefit — key performance indicators

Table 5.11 Child Care Rebate — deliverables

Table 5.12 Child Care Rebate — key performance indicators



Table 6.1 Access and Information — deliverables

Table 6.2 Access and Information — quantitative deliverables targets

Table 6.3 Access and Information — key performance indicators

Table 6.4 Access and Information — quantitative key performance indicator targets

Table 6.5 Home Support — deliverables

Table 6.6 Home Support — quantitative deliverables targets

Table 6.7 Home Support — key performance indicators

Table 6.8 Home Support — quantitative key performance indicator targets

Table 6.9 Home Care — deliverables

Table: 6.10 Home Care — quantitative deliverables targets

Table 6.11 Home Care — key performance indicators

Table 6.12 Home Care — quantitative key performance indicator targets

Table 6.13 Residential and Flexible Care — deliverables

Table 6.14 Residential and Flexible Care — quantitative deliverable targets

Table 6.15 Residential and Flexible Care — key performance indicators

Table 6.16 Residential and Flexible Care — quantitative key performance indicator targets

Table 6.17 Workforce and Quality — deliverables

Table 6.18 Workforce and Quality — quantitative deliverables targets

Table 6.19 Workforce and Quality — key performance indicators

Table 6.20 Workforce and Quality — quantitative key performance indicator targets

Table 6.21 Ageing and Service Improvement — deliverables

Table 6.22 Ageing and Service Improvement — key performance indicators

Table 6.23 Ageing and Service Improvement — quantitative key performance indicator targets

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Table 7.1 Housing and Homelessness — deliverables

Table 7.2 Housing and Homelessness — key performance indicators

Table 7.3 Affordable Housing — deliverables

Table 7.4 Affordable Housing — key performance indicators



Table 8.1 Disability Mental Health and Carers — deliverables

Table 8.2 Disability Mental Health and Carers — deliverables targets

Table 8.3 Disability Mental Health and Carers — key performance indicators

Table 8.4 Disability Mental Health and Carers — key performance indicator targets

Table 8.5 National Disability Insurance Scheme — deliverables

Table 8.6 National Disability Insurance Scheme — qualitative deliverables

Table 8.7 National Disability Insurance Scheme — deliverables targets

Table 8.8 National Disability Insurance Scheme — key performance indicators

Table 8.9 National Disability Insurance Scheme — qualitative key performance indicators



Table 9.1 Payment accuracy — by payment type, as at 30 June 2015

Table 9.2 Payment accuracy – child care fee assistance

Table 10.1 Relevant parliamentary committee inquiries in 2014–15

Table 11.1 Performance payments for non-SES employees

Table 12.1 Trends in departmental finances

Table 12.2 Trends in administered finances

Table 12.3 New consultancies let in 2014–15

Table 12.4 Ongoing consultancies active in 2014–15

Table 12.5 Total expenditure on new and ongoing consultancy contracts — 2012– 13, 2013–14 and 2014–15

Table B–1 Agency resource statement 2014–15

Table B–2 Expenses and resources for Outcome 1: Social Security

Table B–3 Expenses and resources for Outcome 2: Families and Communities

Table B–4 Expenses and resources for Outcome 3: Ageing and Aged Care

Table B–5 Expenses and resources for Outcome 4: Housing

Table B–6 Expenses and resources for Outcome 5: Disability and Carers

Table C–1 Reconciliation outcomes, as at 30 June 2015

287

Table C–2 Outstanding reconciliation debt, as at 30 June 2015

Table C–3 Customers with tax refund reconciliation offset, as at 30 June 2015

Table C–4 Average adjusted taxable income for reconciliation debtors, as at 30 June 2015

Table C–5 Average adjusted taxable income by claim type, as at 30 June 2015

Table C–6 Adjusted taxable income across ranges, as at 30 June 2015

Table C–7 Percentage of customers incurring an FTB debt, as at 30 June 2015

Table G–1 Ongoing staff employed, by actual classification, gender and location, at 30 June 2015

Table G–2 Non ongoing staff employed, by actual classification gender and location, as at 30 June 2015

Table G–3 Salary ranges by APS classification level, as at 30 June 2015

Table I–1 Payments to creative advertising agencies in 2014–15

Table I–2 Payments to market research and polling organisations in 2014–15

Table I–3 Payments to direct mail organisations in 2014–15

Table I–4 Payments to media advertising organisations in 2014–15

Table J–1 Energy, waste and water efficiency measures and monitoring mechanisms

Table J–2 Progress against targets set in Australian Government ICT Sustainability Plan 2010–2015

Table J–3 Environmental performance indicators

FiguresFigure 0.1 Department of Social Services outcome and programme structure, as at 30 June 2015

Figure 1.1 Our executive and streams of work

Figure 1.2 Organisational structure, as at 30 June 2015

Figure 1.3 Our national presence, as at 30 June 2015

Figure 2.1 Social Services portfolio, as at 30 June 2015

Figure 9.1 Our governance structure

Figure 9.2 Our business planning process

Figure11.1 Diversity in our people

Figure A–1 Changes to ministerial responsibilities during 2014-15

Figure A–2 Changes to DSS outcomes and programmes after 23 December 2014

Figure A–3 Other changes to DSS programmes after 23 December 2014

Figure A–4 Structure of Outcome 2 before and after 23 December 2014

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© Commonwealth of Australia 2015

ISSN: 2203 9880 (print)

ISSN: 2203 9899 (online)

Copyright notice — 2015

This document, Department of Social Services Annual Report, is licensed under the Creative Commons Attribution 4.0 International Licence

Licence URL: https://creativecommons.org/licenses/by/4.0/legalcode

Please attribute: © Commonwealth of Australia (Department of Social Services) 2015

Notice:

1. If you create a derivative of this document, the Department of Social Services requests the following notice be placed on your derivative: Based on Commonwealth of Australia (Department of Social Services) data.

2. Inquiries regarding this licence or any other use of this document are welcome. Please contact: Branch Manager, Communication and Media Branch, Department of Social Services. Phone: 1300 653 227. Email: [email protected]

Notice identifying other material or rights in this publication:

1. Australian Commonwealth Coat of Arms — not Licensed under Creative Commons, see https://www.itsanhonour.gov.au/coat-arms/index.cfm

2. Certain images and photographs (as marked) — not licensed under Creative Commons

If you are deaf or have a hearing or speech impairment, you can use the National Relay Service to contact any of the Department of Social Services listed phone numbers.

TTY users — phone 133 677 and ask for the phone number you wish to contact

Speak and Listen users — phone 1300 555 727 and ask for the phone number you wish to contact

Internet relay users — visit the National Relay Service website

Go to: The Department of Social Services website

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